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Eaton weekly Democrat. (Eaton, Ohio) 1866-1875, December 08, 1870, Image 1

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VOL. V.-NO. 43.
EATON, OHIO, THURSDAY, DECEMBER 8, 1870.
WHOLE NO. 251.
PRESIDENT'S MESSAGE.
PRESIDENT'S MESSAGE. TO THE SENATE AND HOUSE OF REPRESENTATIVES:
GENERAL HARMONY AND PROSPERITY.
Tr of peace and mneral nmnTMritv tn thin
i iuu u slucv uie last aseembiBis or
We have, threuh a kind Provi
been " - ith ..K,,wi
nve been spared from complications
war. With ioraljrB nations. In our
be regretted, however, that a free exercise of
lectlva rranrhiite baa hv vl nlcni-o ann 4nt ml.
1 been denied to citizen In exceptional casea.
( I ni in twimi A nau ThanMhv unn . I
HUM (
Of Vlrelnia. Mississippi and Texaa have
stored to representation tn oar national
8 : Geonrla. the onl v State now without reo-
od then let ns hope will be completed the
T reconstruction,
an acquiescence on the part of the whole
in the national obturation to nav the nnhlir
created as the price of oar union, the pen-
to ear aiaaoiea soiaiers ana sailors, ana tneir
ana orphans, and in uie changed of the
ion which nave been made necessary by
rsoeiuon. mere is no reason wnv we
not advance in material prosoerltv and nap-
as no other nation ever did, after so pro true t-
davastatlng a war.
THE WAR IN FRANCE.
Boob after the axis tint? war broke ont in Knmne.
Pari was Invoked in favor of the North Germans
domiciled in French territory. Instruction- were
Issued to grant the protection. This has been fol
lowed by an extension of American protection to
dtlsens of Saxony, Hesse and Sax Coburg, Gotha,
Columbia. Portngul, Uruguay, the Dominican Re
publlc, .Ecuador, Chill, Paraguay and Venezuela in
Paris. The charge was an enormous one requiring
constant and severe labor as well as the exercise of
patience, prudence and good judgment. It has
been performed to the entire satisfaction of this
government, and, as I am officially Informed,
equally so to the satisfaction of the government of
North Germany.
Aa soon as 1 learned that a republic had been
proclaimed at Parts, and that the people of France
bad acquiesced in the change, the Minister of the
tutted
was directed By telegraph to recog
nise it, and tender my congratulations and those
ef the people of the United States. The re-cstab-llahsaant
in Prance of a system of government
disconnected with the dynastic traditions of
Europe, appeared to be a proper subject for the
felicitation of Americans. Should the present
straggle result In attaching the hearts of the
Psanea to our simpler forms of representative gov
ernment, it will be a subject of still farther setis
faetlon to our people. While we make no effort to
Impose our institutions upon the inhabitants of
ether countries, and while we adhere to oar tra
ditional neutrality in civil interests elsewhere, we
cannot be indifferent to the spread of American
political ideas in a great and highly civilised
country like France, we were asked by the new
Sivemment to use our good offices jointly with
oee of the European powers in the interest
of peace. Answer was made that the established
Rollcy and the true interests of the United States
rbade them to interfere in European questions
jointly with European powers. I ascertained in
formally and unofficially that the government of
North Germany was not then disposed to listen to
such representations from any powers, and thongh
earnestly wishing to see the blessings of peace re
stored to the belligerents, with all of whom the
United States are on terms of friendship, I de
clined on the part of this Government to take a
seep which could only result in Injury to onr true
interests, without advancing the object for which
onr intervention was invoked. Should the time
come when the action of the United States can
hasten the return of peace by a single hour, that
action will be heartily taken.
THE NEUTRALITY PROCLAMATION.
I deemed It prudent, in view of the number of
persons of "mtii an Tiaiiss lilli living im th a
t sited At alas, to Issue, soon after official notice
of a state of war had been received from both
belligerents, a proclamation defining the duties of
the United States as a neutral, and the obligations
of persons residing within their territory, to onset re
their laws and the laws of nations. This proclama
tion was followed by others, as circumstances
seemed to call for them. The people, thus ac-
Snwtrrtad In advance of their duties and obligations,
sve assisted in preventing violations of the neu
trality ef the United States.
CURA.
It Is not understood that the condition of the In
rnrrectlon in Cuba has materially changed since
the close of the last session of Congress. In an
early stage of the contest, the authorities of Spain
inaugurated a system of arbitrary arrests, of close
confinement, of military i trial and execution of
persons suspected of complicity with the Insurgents,
and of summary embargo of their properties, and
requisition of tnelr revenues by executive warrant.
Such proceedings, so far aa they affected the per
sons or property of citizens of the United States,
were in violation of the provisions of the treaty
of 1796, between the United States and Spain.
Representations of Injuries resulting to several
persons claiming to be citizens of the United States,
by reason of such violations, were made to the
Spanish government. From April, 1809, to Jnne
last, the Spanish Minister st Washington had been
clothed with a limited power to act in redressing
such wrongs. That power was found to be with
drawn. In view, it was said, of the warlike situa
tion in which the island ef Cuba then was, which,
however, did not lead to a revocation or suspeu
eion of the extraordinary and arbitrary functions
exercised by the executive power In Cuba, aud we
were obliged to make oar complaint at Madrid. In
the negotiations thus opened and still pending
there, the United States only claimed that for the
future the righta secured to their citizens by treaty
should he respected in Cuba, and that as to the
past a joint tribunal should be established in the
United States, with full Jurisdiction over all such
claims. Before such an impartial tribunal each
claimant would be required to prove bis case. On
the other hand, Spain would be at liberty to trav
erse every material fact, and thus complete equity
v ould be done. A case which at one time threat
ened to seriously affect the relations between the
United States and Spain has already been disposed
of in this way. The claim of the Col. Lloyd Aspin
wall, for the illegal seizure and detention of that
vessel was referred to arbitration by mutual con
eonsent, and haa resulted in an award to the United
States tor the owners of the same of tl9.70S.50 in
Kid. Another and long pending claim of like tu
rn, that of the whaleehip Canada, has been dis
posed of by friendly arbitration during the present
year. It was referred by the Joint consent of
Brazil and the United States te the decision of Sir
Edward Thornton, her Brltanic Majesty's Minia
ter at Washington, who kindly undertook the la
borious task of examining the voluminous mass of
correspondence and testlmeny submitted by the
two governments, and awarded to the United
Stazes the sum of $100,700.09 in gold, which has
since been paid by the imperial government.
These recent examples show that the mode which
the United States have proposed to Spain for ad
justing the pending claims is just and feasible, and
that it may be agreed to by either nation without
dishonor.
It is to be hoped that this moderate demand may
be acceded to by Spain without further delay.
Should the pending negotiations unfortunately and
unexpectedly be without .result, it will then be
come my duty to communicate that fact to Congress
and Invite its action on the aubject.
SPAIN AND THE SOUTH AMERICAN REPUBLICS.
The long deferred peace conference between
Spain and the allied South American republics
has been inaugurated in Washington, under the
auspices of the United States, pursuant to the
recommendation contained in the resolution of
the House of Representatives of the 17th of De
cember, 1808. The Executive Department of the
Government offered its friendly offices for the
promotion of peace and harmony between Spain
and the allied republics. Hesitations and obstacles
Occurred to the acceptance of the offer. Ultimately,
however, a conference was arranged and was opened
In this cfty on the B9th of October last, at which I
authorized the -Secretary of State to preside. It
was attended by the Ministers of Spain, Peru, Chili
and Ecuador. In consequence of the absence of a
BBBjueiiiils.ll 1 1 from Bolivia, the conference was
adjourned until the attendance of a plenipoten
tiary from that republic could be secured, or other
measures could be adopted toward compassing Its
TtietBlUed and other republics of Spanish origin
en this continent may see In this fact a new proof
of our sincere Interest in their welfare; of oar desire
to see them blessed with good governments capable
of maintaining order and preserving their respect
ive territorial Integrity, and of ear sincere wish
to extend oar own commercial and social relations
With them. The time is probably not far distant
when, in the course of natnral events, the Euro
pean political connection with this continent will i
cease. ' Onr policy should be shaped in view of this
probability, so as to ally the commercial interests
of the Spanish American states more closely to
oar own, and thus give the United States all the
S re -eminence and all the advantage which Mr.
onroe, Mr. Aanur and Mr. Clay contemplated
wben they pruposcu wjwm me ungTess or I au-ania.
SAN DOMINGO.
nnrtniT the last session of Congress, a treatv for
Ben bisii ullnn of the Republic of San Domingo to
the United States failed to receive the reqnVite
two-thirds vote of the Senate. I was thoroughly
convinced then that the best interests of the coun
try, commercially and materially, demanded its
ratification. Time has only confirmed me in this
view?' ihow firmly believe that the moment Hie
known that the United States have entirety aban
doned the project of accepting as a part of Its ter
ritory the bland of San Domingo, a free port will
be negotiated for by Europenn natione, in
the Bay of Samana. A large commercial
elty will spring up, to which we will be tributary.
without receiving corresponding benefits. The
government of San Domingo has voluntarily sought
this annexation. It is a weak power, numbering
probably less than one hundred and twenty thou
aaud Bonis, and yet possessing one of the richest
localities under the sun, capable of supporting a
population ei iu.uuo.ouu or people in luxury, 'ine
people of San Domingo are not capable of main
taining themselves in their present condition, and
must look for outside support. They yearn for the
protection of onr free mentations and laws, onr
progress and civilization. Shall we refuse them?
The acquisition of San Domingo Is desirable be
cause of its geographical position. It commands
the entrance to the Caribbean Sea and the Isthmus
transit of commerce. It possesses the richest soil,
the best and most capacious harbors, the moat salu
brious climate, and the most valuable products of
me rorest, mine and soil of anv of the west India
islands. Its possession by the United States will In
, few years build up a coastwise commerce of Im
mense magnitude, wnicn will go lar, toward restor
lnc to the United States our lost merchant marine.
It will give to us thoce articles which we consume
greatly und do not produce, thns equalizing our ex
ports and imports. In case of a foreign war, it will
give as command of ajl the islands referred to, and
thus prevent an enemy from again possessing
himself of a rendezvous upon oar coast. At
g resent, oar coast trade between the
tatea bordering on the Atlantic and
those bordering on the Gulf of Mexico, is by the
Bahamas and the Antilles. Twice we most, as it
were, pass through foreign countries to get by from
Georgia to the east coast of Florida. San Domingo,
with a stable government, under which her Im
mense resources can be developed, will give remu
nerative wages to 10,000 laborers not now noon the
Island. This labor will take advantage of every
available means of transportation to abandon the
adjacent islands and seek the blessings of its free
dom, and as a sequence each inhabitant would re
ceive the reward of his own labor. Porto Rico
and Cuba will have to abolish slavery as a measure
of self-preservation to retain their laborers. San
Domingo will become a large consumer of the
proLUCt oi onr Northern farms and manufactories,
': v cheap rates at which her citizens can be fur
nisnea wnn food, tools, land and machinery, will
make it necessary that the contiguous islands should
have the same advantages. In order to compete
with the prod action of sugar, coffee, tobacco,
tropical fruits, etc This will open to ns a wider
market for our products. The production of ear
supply of these articles will cut off more than one
hundred millions of our annual imports, besides
largely increasing onr exports. With such a pie
tare It is easy to see how oar large debt abroad is
ultimately to be extinguished. With a balance of
trade against as. Including the interest oi bonds
held by foreigners, and money shipment to
oar citizens traveling in foreign lands, equal
to the entire yield of precious metals In
this country, it is not so easy to see how this result
Is to be otherwise accomplished. The acquisition
of San Domingo is an adhesion to the Monroe doc
trine ; it Is a measure of national protection ; It is
asserting onr just claim to a controlling influence
over the great commercial traffic soon to flow
from west to east by way of the Isthmus of Darien ;
it is to build up our merchant marine; it Is to fur
nish new markets for the products of onr farms,
shops and manufactories ; it is to make slavery un
supportable in Cuba and Porto Rico at once and
ultimately so in Brazil ; It is to settle the unhappy
condition of Cuba, and end an exterminating con
flict ; It Is to provide honest means of paying our
honest debts,) without overtaxing the people ; it is
to furnish our citizens with the necessaries of every
day life at cheaper rates than ever before ; and It Is
in fine, a rapid stride towards that greatness which
the-intelligence, industry and enterprise of the citi
zens of the United States entitle this country to as
sume among nations. In view of the importance of
this question, I .(earnestly urge upon Congress
early action expressive of its views as to
the best means of acquiring San Domingo.
My suggestion Is that by a joint resolution
of the two houses of Congress the Executive be
authorized to appoint a Commission to negotiate
for a treaty with the authorities of San Domingo for
the acquisition of that island, and that an appro
priation be made to defray the expenses of such
commission. The Question may then be deter
mined by the action of the two houses of Congress
upon a resolution of annexation, as in the case of
the acquisition of Texas. So convinced am I of all
the advantages to flow from the acquisition of San
Domingo, and of the great disadvantages I might
almost say calamities to flow from its non-acquisition,
that I believe the subject has only to be investi
gated to be approved.
THE MEXICAN FREE PORTS.
It is to be regretted that our representations in
regard to the injurious effects, especially upon the
revenue of the United States, of the policy of the
Mexican Government In exempting from import
duties a large tract of its territory on our borders,
have not only been fruitless, bnt that It Is even pro
posed in that country to extend the limits within
which the privilege adverted to has hitherto been
'enjoyed. The expediency of taking Into your seri
ous consideration the proper means for countervail
ing the policy referred to, will, it is presumed, en
gage your earnest attention.
CENTRAL AMERICA.
It is the obvlons interest, especially of neigh
boring nations, to provide against injury to those
who may have committed high crimes within their
borders, and who may have songht refuge abroad.
For this purpose extradition treaties have been
concluded with several of the Central American
Republics, and others are In progress.
VENEZUELA.
The sense of Congress is desired, as early as
may be convenient, upon the proceedings of the
Commission on Claims against Venezuela, as
communicated In the messages of March 4th,
1869, March 1st, 1870 and March Slst, 1870. It
has not been deemed advisable to distribute any
of the money which has been received from that
government until Congress shall have acted upon
the subject.
THE CHINESE MASSACRES.
The massacres of French and Russian residents
at Tien-Tsln under circumstances of great bar
barity were supposed by some to have been pre
meditated, and to indicate a purpose among the
populace to exterminate foreigners in the Chinese
empire. The evidence fails fo establish such a
supposition, bat shows a ' complicity by the
local authorities and the mob. tfhe government
at Fekin, however, seems to have been disposed
to fulfill its treaty obligations, so far as It was
able to do so. Unfortunately the news of
the war between the German States and France
reached China soon after -the massacre. It would
appear that the popular mind became possessed
with the idea that this contest, extending to Chi
nese waters, would neutralize the Christian influ
ence and power, and that the time was coming
when the superstitious mass might expel all for
eigners and restore the mandarin influence. Antici
pating trouble from this cause, I invited France
and North Germany to make an authorized sus
pension of hostilities in the Bast, where they were
temporarily suspended by act of the commanders,
to act together for the future protection in China
of the lives and property of Americana and Euro
TREATY WITH ENGLAND.
Since the adjournment of Congress, the ratifica
tions of the treaty with Great Britain for abolish-
Innr t,M m4-rvt crnrt for the HlinnreSSion Of the
slave trade, have been exchanged! It is believed
that the slave trade is now confined to the eastern
coast of Africa, whence the slaves are taken to Ara
bian markets.
The ratifications of the naturalization conven
tion between Great Britain and the United States
have also been exchanged during the recess, aud.
thus a long-standing dispute between the two
governments has been settled in accordance with
the principles always contended for by the United
States.
THE BRITISH BOUNDARY LINE.
In April last, while engaged in locating a
military reservation near Pembina, a corps of en
gineers discovered that the commonly received
boundary line between the United States and the
British possessions at that place, is about fifty -seven
hundred feet south of the true position of the
zenith parallel, and that the line when run on what
is now supposed to be the true position of that par
allel, would leave the fort of the Hudson's Bay
Company at Pembina within the territory of the
United States. This information being commupi
catcd to the British government, I was requested to
consent, and I did consent, that the British occupa
tion of the fort of the Hudson's Bay Co. should
continue for the present. I deem it important,
however, that this part of the boundary lines should
be definitely fixed by a joint commission of the
governments, and submit herewith estimates of the
expense of such a commission on the part of the
United States, and recommend an appropriation for
that purpose.
The land 'bounda.-y is already fixed and marked
from the summit oi the Rocky Mountains to the
Georgian Bay. It should now he in like manner
marked from the Lake of the Woods to the summit
of the Rocky Mountains.
THE ALABAMA CLAIMS.
I regret to say that no conclusion haa been reach
ed for the adjustment of the claims against Great
Britain, growing out of the course adopted by that
government daring the rebellion. The Cabinet of
London; so far as its vievs have been expressed,
does not appear to be willing to concede that her
Majesty's government was guilty of negligence, or
did or permitted any net during the war by which
the United States has just cause of complaint. Our
firm and unalterable convictlenB are directly the
reverse. I, therefore, recommend to Congress to
authorize the appointment of a Commission to
take proo of the amounts and the ownership, and
press their claims on the notice of the representa
tives of her Majesty at Washington, and turn au
thority be given for the settlement of these claims
by the United States, so that the government shall
have the ownership of the private claimsas well as
the responsible control of all the demands against
flroat r.-.t- ,. r
It cannot he bsmbbbbbTJ to add that whenever her
Majesty's government shall entertain a desire for a
fall and friendly adjustment or these claims, the
United States will enter upon their consideration
with an earnest desire for a conclusion consistent
with the honor and dignity of both nations.
THE FISHING QUESTION.
The course pursued by the Canadian authorities
toward the fishermen of the United States daring
the past season has not been marked by
a friendly feeling. By the first article of
the Convention of 1818 - between Great Britain and
the United States, it was agreed that the Inhabitants
of the United States should have forever. In com
mon with British subjects, the right of taking fish
tn certain waters therein defined. In the waters
not Included In the limits named In the
Convention, within three miles of ports
of the British coast, it has been the custom
for many years to give intruding fishermen of the
United States a reasonable warning of the viola
tion of the technical rights of Great Britain. The
Imperial government is understood to have dele
gated tie whole or a share of its Jurisdiction or
control of these inshore fishery grounds to the
Colonial authority, known as the Dominion of Can
ada, and this semi-independent bat Irresponsible
Sent has exercised the delegated powers in an un
endly way. Vessels have been seized without
notice or warning in violation ef the custom pre
viously prevailing, and have been taken into the
colonial ports, their voyages broken up and the
vessels condemned. There is reason to believe that
this unfriendly and vexatious treatment was de
signed to bear harshly upon the hardy fisher
men of the United States, with a view
of political effect upon this government.
The statutes of the Dominion of Canada assume
a still broader and more untenable jurisdiction
over the vessels of the United States. They
authorize officers or persons to bring vessels hov
ering within three marine miles of any of the coasts,
bays, creeks or harbors of Canada, into port, to
search the cargo, to examine the master, on oath,
touchlng.the cargo and voyage, and to inflict upon
him a heavy pecuniary penalty if true answere are
not given, and if such a vessel is found preparing
to fish within three marine miles of any such
coasts, bayB, creeks or harbors without a license,
or after the expiration of the period named in the
last license granted to it, they provide that the ves
sel, with her tackle, etc., etc., shall be forfeited. It
is not known that any condemnations have been
made under this statute. Should the authorities of
Canada attempt to enforce It, it will become my
duty to take such steps aa may be necessary to
rirotect the rights of citizens of the United States,
t has been claimed by her Majesty's officers that
the fishing vessels of the United States have no
right to enter the open ports of the British pos
sessions In North America, except, for the
purposes of shelter and repairing damages,
of purchasing wood and obtaining water ;
that they have no right to enter
at the British custom house, or to trade, except for
the purchase of wood and water, and that they
must depart within 21 hours after notice to leave.
It is not known that any seizure of a fishing ves
sel carrying the flag of the United States has been
made under this claim. So far as the claim la
founded on the alleged construction of the Con
vention of 1818, it cannot he acquiesced in by the
United States. It is hoped that it will not Be in
sisted on by Her Majesty's Government. During
the conference which preceded the negotiation of
the Convention of 181M, the British Commissioners
proposed to expressly exclude the fishermen of the
United States from the privilege of carrying on
trade with any of His Brittenlc Majesty's subjects
residing within the limits assigned for their use, and
also that it should not be lawful for the vessels of
the United States engaged m such fishery to have
on board any foods, wares or merchandize what
ever, except such as may be necessary for the
prosecution of their voyages to "and
from said Ashing grounds, and any veesel
of the United States, which shall contravene this
regulation, may be seized, condemned and confis
cated, with her cargo. Tills proposition, which is
Identical with the construction now put upon the
language of the convention, was emphatically re
jected by the American Commissioner, and there
upon was abandoned by the British Plenipotentia
ries, and article one, as it stands in the convention,
was substituted. If, however, it be said that this
claim is founded on provincial or colonial statutes,
and not upon the convention, this government can
not bat regard them as unfriendly, and in
contravention of the spirit. IT not of ' the
letter of the treaty, for the faithful execution of
which the imperial government is alone responsi
ble. Anticipating that an attempt may possibly be
made by the Canadian authorities in the coming
season to repeat their unneighhorly acts toward our
fishermen, I recommend you to confer upon the
Executive the power to suspend, by proclamation,
the operation of the laws authorizing the transit of
goods, wares and merchandise In bond, across
le territory of the United States to Canada;
and further, should such an extreme measure be
come necessary, to suspend the operation of any
law whereby the vessels of the Dominion of
Canada are permitted to enter the waters of the
United States.
NAVIGATION OF THE ST. LAWRENCE.
A like unfriendly disposition has been
manifested on the part of Canada in the
maintenance of a claim of right to exclnde the
citizens of the United States from navigation
of the St. Lawrence. This river constitutes a nat
nral outlet to the ocean for eight States, with an
aggregate population of seventeen million six hun
dred thous nd inhabitants, and with an aggregate
tonnage of 6-11, SS7 tons, upon the waters which
discharge into it. The foreign commerce of their
ports on these waters is open to British compe
tition and the major part of it is done in British
bottoms. If the American seamen he excluded
from this natural avenue to the ocean, the monop
oly of the direct commerce of the lake ports with
the Atlantic would be in foreign hands, their ves
sels on the trans-Atlantic voyages having an access
to our lake ports, which would be denied to
American vessels on similar voyages. To state
such a proposition Is to refute its Jus
tice. During the administration of Mr.
John Quincy Adams, Mr. Clay unques
tionably demonstrated the natural right of the
citizens of the United States to the navigation of
the river, claiming that the act of the Congress of
Vienna hi opening the Rhine and other rivers to all
nations, showed the judgment of European jurists
and statesmen, that the Inhabitants of a country
through which a navigable river passes have a
natural right to enjoy the navigation of that river,
to and into the sea, even though passing through
the territory of another power. This right does not
exclnde the co-equal right of the sovereign posses
sing the territory through which the river debouches
into the sea, to make such regulations relative to
the policy of the navigation as may be reasonably
necessary. But those regulations should be framed
in a liberal spirit of comity, and should Impose no
needless burdens upon the commerce which has the
right of transit. It has been found in practice more
advantageous to arrange these regulations by mu
tual agreement. The United States are ready to
make any reasonable arrangement as to the nav
igation of the St. Lawrence which may be suggested
by Great Britain. If the claim made by Mr. Clay was
just when the population of the States bordering on
the snores or tne taites was only bbbubb, h now
derives greater force and equity from the Increased
population, wealth, production and tonnage of the
States on the Canadian frontier.
Since Mr. Clay advanced his argument in behalf
of our right, the principles for which he-contended
have been frequently and by various nations rec
ognized by law or by treaty, and have been extended
to several other great rivers. By the treaty conclud
ed at Mayence In 1881, the Rhine was declared free
from the point where it is first navigable into the
sea. By the convention between Spain and Portugal,
conclnded, tn 18S6 the navigation of the Donrse
throughout its whole extent was made free for the
snbjects of both crowns. In 1858 the Argentine
Confederation, by treaty, threw open tbe free nav
igation of the Parana and Uruguay to the merchant
vessels of all natione. In 1856 the Crimean war
was closed by a treaty which provided for the free
navigation of the Danube. In 1858 Bolivia, by
treaty, declared it regarded the rivers Amazon and
La Plata, in accordance with fixed principles of
national law, as highways or channels opened by
nature for the commerce of all nations.
In 1859 the Paragnay was made free by treaty,
and In December. 1866, the Emperor of Brazil, by
imperial decree, declared the Amazon to be open
to the frontier of Brazil to the merchant ships of
all nations. '
The greatest living British authority on this sub
ject, while asserting the abstract right of the Brit
ish claim, says It seems difficult to deny that Great
Britain may ground her refusal upon strict law.
Bnt it is equally difficult to deny, first, that in so
doing she exercises harshly an extreme and hard
law; second, that her conduct with respect to the
navigation of the St. Lawrence is In glaring and
discreditable inconsistency with her conduct with
respect to the navigation oi me musawuppi I
Sound that she poseeses a small domain in which j
c Mississippi took its rise. She Insisted on the
right to navigate tbe entire volume of Its waters, on
the ground that she poseases both banks of the St.
Lawrence where It disembouches itself into the sea.
She denies to the United States the right of naviga
tion, though about one hair tne waters oi uu
Ontario, Erie, Huron and Superior and the whole
of Lake Michigan, throngh which the river flows,
are thenroperty of the United States-
The whole nation is interested in securing cheap
transportation from the agricultural States of the
West to the Atlantic seaboard. To the citizens of
those States It secures a greater return for their
labor. To the Inhaoltants of the seaboard It offers
cheaper food; to the nation an increase in the an
nual surplus of wealth. It is hoped that the Gov
ernment of Great Britain will see the justice of
abandoning the narrow and inconsistent claim to
which her Canadian provinces have urged her adherence.
OCEAN NAVIGATION.
Our depressed commerce Is a subject to which
I called vour snecial attention at the last ses
sion, and suggested that we will in the future haven
to look more to the countries south of ub, and to
China and Japan, for its revival.
Our representatives to all these Governments have
exerted their influence to enconrage' trade between
the United States and the countries to which they
are accredited; but the fact exists that the carrying
is done almost entirely in .foreign bottoms; and
while this state o( affairs exists we cannot control
our due share of the commerce of the world. That
between the Pacific States and China and Japan is
about all the carrying trade now conducted in
American vessels. I would recommend a liberal
policy toward that line of American steamers; one
that will insure its success and even increased use
fulness. The cost of building Iron vessels, the only ones
that can compete with foreign ships in tbe carrying
trade, is so much greater in the United States than
in foreign countries that, without some assistance
from the Government, they cannot be successfully
built here. There will be several propositions laid
before Congress in tbe course of the present ses
sion looking to a remedy for this evil. Even If it
should be at some cost to the National Treasury, I
hope such encouragement will be given as will se
cure American snipping on the high seas, and
American ship-building at home.
BUILDING FOR DEPARTMENT OF STATE.
The condition of the archives at the
Department of State calls for the early
action of Congress. The building now rented
by that Department is a frail structure at best,
and at an inconvenient distance from tbe Execu
tive Mansion and from the other Departments. It
is ill-adapted to the purposes for which it is used,
has not capacity to accommodate the archives, and
Is not fire-proof. Its remote situation, its slender
construction, and the absence of a supply of water
in the neighborhood, leaves but little nope of safe
ty for either building or its contents in case of the
accident of a fire. Its destruction would Involve
tbe loss of the rolls containing the original acts
and resolutions of Congress, of tbe historic records
of the revolution, of the confederation of the whole
series of diplomatic and consular archives since the
adoption of the Constitution, and of the many
other valnablo records and papers left with that de
partment when it was the principal depository of
the Government archives. I recommend an appro-
S nation for the construction of a building for the
apartment of State.
DEPARTMENT POWERS AND DUTIES.
I recommend to your, reconsideration the pro
priety of transferring to the Department of the
Interior, to which they seem more appropriately to
belong, all powers and duties in relation to the ter
ritories with which the Department of the State is
now charged by law or usage ; and from the In
terior Department to the War Department, the
Pension Bureau, bo far as it regulates the payment
of soldiers' pensions. I would further recommend
that the payment of naval pensions he transferred
to one of the bureaus of the Navy Department.
GOVERNMENT EXPENSES.
The estimates for the expenses of the Government
for the fiscal year are (18,244,346 less than for the
current one, but exceed the appropriations for the
present year for the same items, $8,973,756. In
this estimate, however, is included $23,338,278.87 for
public works heretofore begun under Congressional
permission, and of which only so much is asked as
Congress may choose to give. The appropriation
for the same work for the present fiscal year was
$11,981,518.08.
CURRENCY, GOLD AND TAXES.
The average value of gold as compared with
national currency for the whole of the year 1869
was 134, and for eleven months of 1870 the . same
relative value has been about 115. The approach
to a specie basis is very gratifying, but the fact
cannot be denied that instability of the value of our
currency is prejudicial to our prosperity, and tends
to keep up prices to the detriment of trade. The
evils of a depreciated and fluctuating currency are
so great that, now, when the premium on gold has
fallen so much, it would seem that the time has ar
rived when by wise and prudent legislation Con
gress should look to a policy which would place
our currency at par with gold at no distant day.
The tax collected frem the people has been reduced
more than $80,000,000 per annum. By steadiness in
our present course, there is no reason why in a few
short years the national tax-gatherer may not dis
appear from the door of the citizen almost en
tirely. With the revenue stamp dispensed by postmasters
In every community, a tax upon liquors of all sorts
and tobacco in all its forms, and by a wise adjust
ment of the tariff, which will put a duty only upon
those articles which we could dispense with, known
aa luxuries, and on those which wo use more of than
we produce, revenu-neugh iit be raised after a
few years of peace auff consequent reduction of In
debtedness, to fulfill all our obligations; and a
further reduction of expenses in addition to a re
duction of Interest account may be relied on to
make this practicable.
REVENUE REFORM.
Revenue reform, if it means this, my hearty
support. If it implies a collection of all the revenue
for the support of the Government ; for the pay
ment of principal and Interest of the public debt,
pensions, .Sc., hy directly taxing the people, then I
am against revenue reform, and confidently believe
the people are with me. If It means failure to pro
vide the necessary means to defray the expenses of
the Government, and thereby repudiation of the
public debt and pensions, then I am still more op
posed to such kind of revenue reform.
Revenue reform has not been defined by any of
its advocates, to my knowlege, bnt seems to be ac
cepted as something which Is to supply every
man's wants without any coat or effort on his part.
A true revenue reform cannot be made in a day,
but must be the work of national legislation and of
time. Aa soon as the revenue can be dispensed
with all duty should be removed from coffee, tea,
and other articles of universal use not produced
by ourselves. The necessities of the country com
pel us to collect revenue from our import. An
army of assessors and collectors is not a pleasant
sight to the citizens, but that or a tariff for revenue
is necessary. Such a tariff, so far as it acts in en
couragement to home products, affords employ
ment to labor at living wages in contrast to the
pauper labor of the old world, and also in the de
velopment of home resources. Under the act of
Congress of the 15th day of July, 1870, the army has
gradually been reduced, so that on the first day of
January, 1871, the number of commissioned officers
and men in all will not exceed the number con
templated by that law.
DEPARTMENT BUILDING.
The Department building is an old structure,
not fire-proof, and entirely inadequate In dimen
sions to eur present wants. Many thousands of
dollars are now paid annually for rent of private
buildings to accommodate the various Bureaus
of the Department. I recommend an appropria
tion for a new War Department building, suited
to the present aud growing wants of the nation.
ARMY AND NAVY.
The report of the Secretary a very
satisfactory reduction in the expenses of the
army for the last fiscal year. Por details you are
referred to his accompanying report. The ex
penses of the navy for the whole of the last year,
J, from December 1. 1869, the date of the last
report, are less than $19,000,000, or about $1,000,000
less than they were tbe previous year.
The expenses since the commencement of this
fiscal year, i. ., since July 1, show for the five
months a decrease of over $2,400,000 from those of
the corresponding months of last year.
The estimates for tbe current year were $28.P5,
768.08. Those far the next year are $40,688,317,
with $955,100 additional tor the necessary perma
nent improvements. These estimates are made
closely for the maintenance of the naval establish
ment as it now is, without much In the nature of
permanent improvement. The appropriations
made for the last and current years were evidently
intended by Congjess and are sufficient only to
keep the navy on Its pressnt footing, by the re
pairing and refitting of onr old ships. This policy
must of course gradually but surely destroy the
navy; and it ism itself far from economical,, as
each year that it is pursued the necessity for mere
repairs in ships and navy yards becomes more im
perative and more costly, and our current expenses
are annually increased for the mere repair of ships,
many of which must soon become unsafe and use-
I hope during the present session of Congress to
be able to submit to it a plan by which naval ves
sels can be built and repairs made with great sav
ing upon the present cost. It can hardly be wise
statesmanship of a Government which represents
a country with over five thousand miles of coast
line on both oceans, exclusive of Alaska, and con
taining forty millions of progressive, people, with
relations of every nature with almost every foreign
country, to rest with such inadequate means of en
forcing any foreign policy either of protection or
16(1 ft? 09
Separated by the ocean from the nations of the
Eastern continent onr navy is our only means of
protection to our citizens abroad, or for the en
forcement of any foreign policy.
POST-OFFICE DEPARTMENT.
The accompan ying report of tbe Postmaster Gen
eral shows a most satisfactory working of the de
partment. With the adoption of the recommenda
tions contained therein, particularly those relating
to a reform m the franking privilege, and the
adoption of correspondence cards, aself-sustaining
postal system may epeedly be looked for, and at
no distant day a further reduction of the rate of
postage attained.
1 recommena ftuinenwivu uj vunjiiQai 10 luo
Postmaster General and Attorney-General to issue
all commissions to officials appointed through their
respective departments. At present these commis
sions, where appointments are Presidential, are is
sued bv the StatetDepartaent. The law in all de
partments of Government, except those of the
Fostofflce and of Justice, authorizes each to issue
its own commissions.
CIVIL SERVICE REFORM.
Always favoring practical reforms, I respectfully
call your attention to on abuse of long standing,
which I wonld like to see remedied by this Con
gress. It is a reform in the civil service of the
country. I would have H go beyond the mere flx
ifl" of the tenure of office o'f clerks and employees
wEo do not reqnire the idvlce and consent or the
Senate to make their appointmcnto coinplete. I
would have it govern not the tenuse bdt the man
ner of making all appoinunents. There Is no dutv
which so much embarrasses the executive ana
bends of depaBme'rits as that or appointments, nor
is there any snch ardnon and thankless labor im
posed on Senators and Representatives as that ef
finding places for constlttcnts.
The present svstem doei not secure the liest, and
often not even lit men foi public places. The ele
vation and purification of the civil service of tbe
Government will be hailed with approval by the
whole people of the United States.
INDIAN AFFAIRS.
Reform In the management oi Indian affairs has
received the special attention of the Administration
from its inauguration to the present day. The ex
periment of making it a missionary work was tried
with a few agencies given to the denomination of
Friends, and has been found to work most ad van.
tageouuly. All agencies and superintendencies not
so disposed of were given to officers of the army.
The act of Congress regulating the army renders
army officers ineligible to civil positions'. Indian
agencies being civil offices, I determined to give all
the agencies to such religious denominations as
had heretofore established missionaries among the
Indians, and perhaps to some other denominations
who would nndertake the work on the same terms,
i. .. as a missionary work.
The societies selected are allowed to name their
own agents, subject to the approval of the Execu
tive, and are expected to watch over them and aid
them as missionaries to Christianize and civilize
tbe Indian, and to train him in the) arts of peace.
The Government watches over the official acts of
these agents, and requires of them' as strict an ac
countability as if they were appointed in any other
manner. I entertain the confident hope that the
policy now panned will. In a few years, bring all
the Indians upon reservations, where they will live
in houses, have school-houses and churches, will be
pursuing peaceful and self-sustaining avocations,
and where they may be visited by the law-abiding,
white man with the same impunity that he now
visits the civilized white settlements. I call your
special attention to the report of tbe Commissioner
of Indian Affairs for full information on this subject.
PUBLIC LANDS.
During the last fiscal year 8.095.413 acres of pub
lic land were disposed of. Of this quantity 8.69H.910
acres were taken under tbe homestead law, and 2, 159,
615 acres sold for cash. The remainder was located
with military warrants, college or Indian scrip, or
applied In satisfaction of grants to railroads, or for
other public uses. The entries under the home
stead law during the last year covered 961.545 acres
more than those during the preceding year. Sur
veys have been vigorously prosecuted to the fnll
extent of the means applicable to the purpose. The
quantity of land in market will amply supply the
present demand. The claim of she settlers under
the homestead or the pre-emption laws Is not, bow
ever, limited to lands subject to sale at private
entry. Any unappropriated surveyed public land
may to a limited amonnt be acquired under the for
mer laws, if the party entitled to enter under them
will comply with the requirements they prescribe
in regard to residence and cultivation.
The actual settler's preference to right of purchase
is even broader, and extends to lands which were
unsurveyed at the time of his settlement. His
right was formerly confined within much narrower
limits; and, at one period of our history, was con
ferred only by special statutes. They were
enacted from time to time to legalize what was
then regarded as an unauthorized intrusion upon
tbe national domain. The opinion that tbe pub
lic lands should be regarded chiefly as a source of
revenue is no longer maintained. The rapid set
tlement and successful cultivation of tnem is
now jnstly considered of more Importance
to our well-being than Is the fund which the
sale of them would produce. The remarkable
growth and prosperity of our new States and
Territories attest the wisdom of the legislation
which invites the tiller of the soil to secure a per
manent home on terms within the reach of all. The
pioneer who Incurs the dangers and privations of a
frontier life, and thns aids in laying the foundation
of the new commonwealth, renders a signal serv
ice to this country, and is entitled to its special fa
vor and protection. The laws secure that object
and largely promote the general welfare. They
shonld, therefore, be cherished as a permanent fea
ture Of oar land system. Good faith requires as to
give full effect to existing grants.
The time-honored and beneflclent policy of set
ting apart certain sections of public land for edu
cational purposes in the new States, should be con
tinued. ?-S
Wben ample provision shall have been made for
these objects. I submit, as a question worthy of
serious eonslfleration, whether the residue of our
national domain should not be wholly disposed
of under the provisions of the homestead and pre
emption laws.
INTERNAL IMPROVEMENTS.
In addition to the swamp and overflowed
granted to the States in which they are situated,
the lands taken under the Agricultural College
acta and for Internal Improvement purposes, under
the act of September, 1841, and the acts supple
mental thereto, there had been conveyed, up to
the close of tbe last fiscal year, by patent or other
equivalent evidence of title, to States and corpora
tions, 27,888,257 18-100 acres, for railways, canals,
and wagon-roads ; and it is estimated that an ad
ditional quantity of 174,735,523 acres is still due
under grants for like uses.
The policy of thus aiding the States In building
works of internal' Improvement was inaugurated
more than forty years since in tbe grants to Indiana
and niinois to aid those States In opening canals to
connect the waters of the Wabash with those of
Lake Erie and the waters of Illinois with those of
Lake Michigan. It was followed, with some modifi
cations, in the grant to Dllaala of alternate sec
tions of public land within certain limits, to aid In
tbe construction of he Illinois Central Railway.
Fourteen States and sundry corporations have
received similar subsidies in connection with rail
ways completed or in process of construction. As
the reserved sections are rated at donble the mini
mum, the sale of them at the enhanced price has
thus in many instances indemnified the Treasury
for tbe granted lands. The construction of some of
these thoroughfares has undoubtedly given a vig
orous impetus to the development of ourresources
and the settlement of the more distant portions of
the country. It may, however, be well insisted
that much of our legislation in this regard has
been characterized By indiscriminate and pro
fuse liberality. The United States should not loan
their credit in aid of anv enterprise undertaken by
States or corporations, nor grant lands in any In
stance, unless tbe projected work is of acknowl
edged national Importance. I am strongly in
clined to the opinion that U Is Inexpedient and un
necessary to bestow subsidies of either descrip
tion ; bat shonld Congress determine otherwise, I
earnestly recommend that, the rights of settlers
and of the public be more effectually secured and
protected by appropriate legislation.
THE PATENT OFFICE.
During the year ending September 80, 1870,
there were filed in tbe Patent Office 19,411 applica
tions for patents, 8,914 caveats, and W0 applica
tions for the extension of patents ; 13,522 patents,
including re issues and designs, were issued, 110 ex
tended; and 1,089 allowed, but not issued, by rea
son of the non-payment of the final fees. The re
ceipts of the office during the fiscal year were $136,
304.29 In excess of its expenditures.
THE CENSUS.
The work of the Census Bureau has beenenerget
ieally prosecuted. The preliminary report con
taining much information of special value and
interest will be ready for delivery during the
present session. The remaining volumes will be
completed with all the dispatch consistent with
perfect accuracy In arranging and classifying the
returns. We shall thus at no distant day be
furnished with an authentic record of our condi
tion and resources. It will, I donbt not, at
test the growing prosperity of the country ; al
though during tie decade which has just closed it
was so severely tried by the great war waged to
maintain Its Integrity and to secure and perpetuate
our free institutions.
PENSIONS.
During the last fiscal year the sum paid to pen
sioners, including the cost of disbursement, was
$87,7S0,811.11 ; and 1,758 bounty land warrants were
issued. At its close, 198,686 names were on the
pension rolls.
The labors of the Pension Office have been di
rected to the severe scrutiny of the evidence sub
mitted in favor of new claims, and to the discov
ery of fictitious claims which have been heretofore
allowed. The appropriation for the employment
of special agents for the investigation of frauds
has been Judiciously used, and the results of It
have been of unquestionable benefit to the service.
EDUCATION AND AGRICULTURE.
The snbjects of education and agriculture are of
great interest to the success of onr republican in
stitutions, and our happiness and grandeur as a
nation. In the interests of one a bureau has been
established In the InteriorDepartment the Bureau
of Education ; and in the interests of the other a
separate department that of Agriculture. I be
lieve great general good Is to flow from the opera
tions of both these bureaus. If properly fostered.
I cannot commend to yonr careful consideration
too highly the reports of the Commissioners of
Education and of Aericulture, nornrge too strongly
such liberal legislation as to secure their efficiency.
SUMMING UP.
In conclusion. I would sum up the policy of the
Administration to be a thorough enforcement of
every law ; a faithful collection of every tax pro
vided for, and economy in tbe disbursement of the
same ; a prompt payment ef tbe debt of the nation ;
a reduction of taxes as rapidly as the requirements
of the country will admit, reduction of taxation
and tariff to be so arranged as to afford
the greatest relief fo the greatest number; honest
and fair dealing with all other people, to the end
that war with all its blighting consequences may
be avoided, but without surrendering any right or
obligation due to us; a reform in the treatment of
the Indians, and in the whole civil .-service of the
country ; and finally In securing a pore, un tram
meled ballot, where every man entitled to cast a
vote may do so lust once at each election, without
fear of molestation or proscription on account of
his faith, Batlvitv, or color.
U. S. GRANT.
EXECUTIVE MANSION, Dec. 5, 1970.
Why is it important, for a physician to
' kiep his ttmper? Because, if he did not,
i he would be apt to lose his pUienl.
POSTMASTER GENERAL'S REPORT.
POST OFFICE DEPARTMENT.
WASHINGTON, D. C., Nov. 30, '70.
8m: The ordinary revenues of this Department
for the fiscal year ending June 80, 1870, were 19,
772,220.65, and the expenditures of all kinds $28,
996.887.63. For the year ending June 80, 1869, the
ordinary revenues were $18,841,610.72, and the ex
penditures 126,693.131.50. The increase of revenue
for the year 1870, over the year 1869, was $1,427,
7' 9.93, or 7.78 per cent, and the increase of expen
ditures $300,706.18, or 1.82 per cent, showing a net
increase in revenue oi 1,127,008.80. The increase
in revenue for the year 1870 over the year 1888 was
$3,479,619.86, or 21.35 per cent., snd the increase of
expenditures for 1870 over 1868 was $1,268,244.98,
or 5.57 per cent. The Increase in revenue for 1870,
as compared with 1869, was less than tbe Increase
ror 1809, as compared with 1868. by $814,199.99, and
the increase In expenditures for 1870, compared
with 1869, was less than the Increase for 188$ com
pared with 1888, by $660,888.7. If, in addition to
the ordinary revenues the department be credited
with $7,000,000 appropriated for free matter, and
the amounts drawn and expended for subsidies to
steamship lines, it will appear that tbe deficiency
provided out of the General Treasury for the year
1870 will be $4,814,116.98, against $897,028.45 for
the year 1869. There were In the service of the
department on the 80th of June, 1870, 7.2S6 eon
tractors for the transportation of the mails. Of
mail routes in operation there were 8,881, aggre
gating In length 231.232 miles; annual transporta
tion, 970.249.96 miles, and in annual cost, $10,884,
658 Adding the compensation of railway postr
office clerks, route agents, local agents, mail
messengers, mail route messengers and baggage
masters in charge of registered packages amount
ing to (1,470.890, the aggregate annnal cost was
$12,855,543. The service was divided as follows:
There was an increase over the preceding year In
length of routes of 7,501 miles; m annual trans
portation, 6.401,593 miles, and the cost, $478,159.
Adding the Increased cost for railways, post office
clerks, route, mail and other agents, $1116,088, the
total increase in cost was $678,815.
The foregoing statement of increase and costs
does not include service for special offices. There
were, at the close of the year, 1,169 of these, each
with a mail carrier, wtaose pay from the depart
ment Is not allowed to exceed the net postal yield
of tne office. Special routes and their carriers are
included, however, in the number of contractors
and routes as given above. The attention of Con
gress is again called to tbe necessity of a revision
and readjustment of the rates of compensation
established by law for the transportation of malls
on railroad routes. The managers of railroads
insist that the pay awarded them under tbe opera
tion of the act of the 3d of March, 1865, is inade
quate to the service required, and many of them
have refused, and still refuse, to enter into con
tracts with the department, alleging that they will
not bind themselves by a permanent arrangement
at the present prices. The consequence is that on
many of tbe most important routes the mails are
carried as suits the coHvenlence of the companies,
and with but little regard to the public Interest.
Many complaints of inefficient service, and in some
instances of gross neglect on the part of railroad
companies, have been made during the past year
by some of the leading newspapers of the country,
bat notwithstanding the most persistent efforts to
remedy the evils complained of, very little If any
Improvement has yet been effected, the depart
ment having no control of the time or manner of
running trains, except In cases where contracts
have been regularly executed. After a careful
consideration of the snbject, I am satisfied that
tbe compensation fixed by law is not a
fair return for the important service ren
dered by railroad companies, and hence,
I repeat my recommendation that a re
adjustment of their pay be made by law, and
at the same time they be required to enter Into a
contract with the Department as a condition pre
cedent to drawing any increase of compensation.
The amount of fines imposed on contractors, and
deductions made from their pay on account of
failures and other delinquencies during the last
vear, was $100,375.32. aud the amount remitted for
the same period $88,758.80, leaving the net amount
71,a.07. This shows an Increase on the net
amount of fines and deductions over the year I860,
of $81,879.25. and a decrease in the amount of re
missions of $17,197.74. The increase In thai fines
and deductions Is not attributable to increased de
linquencies, but to the fact that since the 1st of
April, 1869, the provisions of many contracts for
the forfeiture of the pay of a trip when the trip
has not been made, has been enforced In conformity
with the act of July t, 1886. Since the adoption
of this rule, contractors have evinced a much
S eater amount of energy In their efforts to carry
e mails through to the points of destination.
Dnring the past year, 8,071 eases of loss by mall
depredations occurred, of which 1,574 registered
letters ware reported to the department. Involv
ing losses In bonds, drafts, and money to the
amonnt of $1,898,768.21, a considerable portion of
which has been recovered. The number of ar
rests for violations or tbe postal laws was 148,
snd the number of convictions of those who were
brought to trial 54, the remainder being released,
acquitted, or held tor trial. The department is
constantly availing itself or all the means within
Its reach to give perfect security to tbe malls, and
to bring to Justice any of Its employes who yield
to the temptation to violate the trust reposed In
them.
The cost of the trans-Atlantic mall steamship
service during the three preceding fiscal years
was as follows: For the fiscal year ending June
80, 1867, $651,888.01; tor the fiscal year ending
June 80, 1868, $421,264 44 ; for the fiscal year ending
June 80, 1869, $886,907.49. From July
1 to December 81, 1889, the trans-Atlantic
mail service was performed by steamships of the
Hamburg, Canard, .Bremen and Inman Lines,
sailing from New York on Tuesdays, Wednesdays,
Thursdays and Saturdays of each week. The
agents of each of these lines having declined to
transport the malls for tbe reduced rates of sea
postage established by tbe additional postal con
vention with the United Kingdom, which went
into operation on the 1st or January, 1870, the
service was for a short time Interrupted; bnt
new arrangements were speedily concluded on
the basis of the reduced rates of compensation
for a regular semi-weekly conveyance of malls to
Europe by the steamships of the Liverpol snd
ureat western uompanv. wuiuuhb oo wuuu
agents, on Wednesdavi, and by the steamships of
the North German Lloyds, of Bremen, on Satur
days, which were soon followed by an arrange
ment with the Hamburg American Packet Com
pany for an additional weekly service on Tuesday,
on the same terms, thus securing a tri-weekly
dispatch of mails by steamers of average good
speed. Contracts were executed with each of
these companies for the conveyance of the malls
during the terms of two years, eommeneing Jan
uary f, 1870, and ending December 81, 1871, copies
of which are annexed. In the month of July
last, the steamships ef the North ftermaa Lloyd
and Hamburg lines were withdrawn from service,
on their respective routes, and a temporary ar
rangement was made with the reman line to convey
the mails from New Tork on Saturday of each
week, supplying the omitted tripe of the North
German Lloyd Tine, and, after a period of nearly
three months had elapsed, with no prospects of
an early resumption of the North-German Lloyds,
of Bremen, I was constrained to annul the eon
tract with that company for repeated failures, and
to make a permanent contrast with tbe Liverpool,
New York A Philadelphia Steamship Company In
man Line to transport tbe mails from New York
on Saturdays, for a term of two years, commenc
ing October 1, 1870, and ending September 80, 1878,
a coppy of which Is also annexed. At present,
three weekly malls are dhrpatcoed from New Tork
to Great Britain by steamships of tbe Liverpool M
Great Western Cunard and Inman lines sailing on
Wednesdays, Thursdays and Saturdays, with an
occasional extra mall by steamships of the Cunard
line, sailing on other days of the week. When
the German steamships of the North-German
Lloyd and Hamburg Tine resume their regular
trips, and the new steamers, of Increased size and
greater speed, which have been tendered by the
Ocean Steam Navigation Company, of Liverpool,
for the conveyance of the malls from New York,
Monday, are placed op the route between that port
and Liverpool, there win be at least six nrst-claas
weekly lines of trans-Atlantic steamships leaving
New York for European ports, sufficient to estab
lish a regular dispatch of malls to Europe on
each week day, provided the sailing days of the
respective lines can be so adjusted as to secure that
desirable object.
The United States postage on the malls convey
ed to and from the West Indies, Mexico. Panama,
South Pacific, Belize, Honduras, amounted to
$120,951.88, and the amount paid for the sea con
veyance thereof was $72,456.81. The contractor
for the mall steamship serviee from New York to
Rio de Janeiro, Brazil, and from San Francisco to
Japan and China have performed In a satisfactory
manner the full service required by their respect
ive contracts of twelve round trips per annum, but
ten round trips only have been made by the steam
ships of the California, Oregon A Mexican Steam
ship Company, contractors for the monthly ser
vice between San Francisco. Honolulu, and Ha
waiian Islands. I respectfully renew the recom
mendation made In my last report for an Increase
of mail service from monthly to semi-monthly
ail steamsnip route ironi nan rru
. : ' , ..) fiti,.Q ' M with the
great national importance of maintaining tttk Hue,
of American steamships, ana tne neceiwiwrr pro-
viding lftereaned facilities of communication with
those countries in order to retain and extend the
commercial advantage already pained by Its es
tablishment, I felt it my duty to address
a special communication on the subject to
the chairman of the Senate Committee on
Pout Offices and Post Roads under date of 8tst
'.JZiSSLiSi
onpreB., inira session), iu nun.u punrmoiii,
were nrei-ented obtained from official sources.
i ot
( una k nre tne line wa e.iannsnen. ami ins
amounts of correspondence transported, and the
i
financial results of the enterprise. I bee to
to that communication for the special considera
tions which render it expedient, in my judgment,
to sustain this Important national enterprise,
and to express the hope that Congress will
promptly pass the bill reported by tne Senate
Committee on Post Offices and Post Roads at the
last session, authorizing an increase of the ser
vice to semi-monthly trips under the same terms
add conditions as the present monthly service.
The excess of business of the Department, as
compared with last year, Is as follows: Letter car
riers. 116; malts delivered, lT.7se,778; local letters
delivered, 8.417.02; newspapers delivered. 5,812,
186; letters collected, 7g.ufl0.rr0 ; amount paid
carriers. $1,610,484; postage on local matter, $1,
689,78. During the past year, the salaries of 8,48
Postmasters have been readjusted. Tbe establish
ment of new offices and the increase of salaries
will not. It Is thought, exceed the appropriation of
$5,000,000 for the current year.
Whole number of letters received at the Dead
Letter office during the year, 4.152.460. of whisk
20.415 were foreign letters ; 8,sl letters con
tain flip; money in sums of $1 or more, amounting
to $92,869 2. of this amonnt $7,116. was deliver
ed to the writers or persons addressed ; 22.944 let
ters contained money In s ims lees than 91,
amounting to $5,798.80, of which $5,086.7 was de
livered to the writers or persons addressed; 17,
860 letters contained checks, drafts, deeds, etc., to
tbe nominal value of $8,078,554.90, of which .
988,400.08 was restored; 81. 684 letters were de
tained for postage not prepaid; 88,188 letters
were misdirected, 8,016 bad no address
whatever; 88 new money order offices were
created up to August 1. The whole number now
open, 2,706. The number of domestic money
orders Issued was 1.S71.268, of an aggregate value
of $34,054,184.71, an Increase of $8,886,15.78.
Amount of fees. $235,285.80; Increase. $59,044.90:
average amonnt of each order, $8. 78: profit of
the money order business. $901,174.68. The drafts
drawn against credits during the last year wars
$84,805.81. The sum of $1 ,80,80.B9 was trans
ferred by Postmasters from the postage to tbe
money order account to enable them to me St or
ders presented for payment.
I am thoroughly satisfied that If the franking
privilege were repealed the department in a short
time would become self-sustaining. This asser
tion has heretofore been warmly denied. The de
ficiency for the past year has been reduced to fl.
814.116 98. An accurate account of the cost or free
matter dispatched through the malls was ordered
to be kept by all Postmasters for six months, be
ginning January 1 and ending June 80 last, and re
turns are now being received. Enough is known
to enable an opinion to be expressed that the ac
tual returns will snow the actual cost of tree mat
ter to be fully equal to all the defleteaey. The
term during which the account was kept was con
fined to the first half of the year when few elec
tions were held, and when only a small portion
ot the public documents are transmitted. Shonld
the amount of franked matter he actually ascer
tained during the Presidential canvass and sub
jected to the same postage as like matter sent by
private persons, I am sure that the average cost
per year would be greatly enhanced. My anxiety
to make the department self-sustaining, arises
from a strong desire to reduce aud make uni
form rates of postage in 1871. The amount de
rived from letter postage was $lfl,Tn,J.70,
and from newspapers and nasmphlets only 9B84.
882.99, and yet the weight arid bulk of news
paper mails are at least ten times greater than
those of letter mails. This shows that, while news
papers are charged much less than the cost of
their transmission, letters are charged much mora,
and In fairness letters should be reduced In post
age as soon aa the finances of the department will
permit. If letter postage could be reduced from 8
to cents I am sure that the increased correspond -ence
thereby stimulated wonld. in a few years,
compensate for anv temporary loss of revenue,
and that many vexatious fosses would he avolasa
by a uniform rate for all distances which would
thns be established ; but I despair of securing any
further reduction of letter postage so long as the
should be an Increase of postage on newspapers.
On the contrary. It Is the duty of the government
to aid In the education of the people by carrying
newspapers as cheaply aa possible, and hence I am
of opinion that the present rates are not too low,
nor do I object to the free transportation of news
papers to regular subscribers In the counties of
their publication. As now authorised by law,
their conveyance without charge does not Inter
fere with the speedy and regular transmission of
tbe malls. There Is but one change that I deem
advisable In the treatment of newspapers, and
that applies only to those sent UJ points oataMs
of the county where published. I would require
postage on printed matter In all esses to be pre
pald by stamps. Tbe law allowing postage to be
paid tn money by subscribers st the office or se
llv.ry. is a departure from the accepted theory or
Post Office management, and only subjects tne
department to heavy losses.
The Postmaster General serneefly iMsanands
the adoption, early in the session of '"mTess. ot
the blll.lntrodnced by Mr. FalssworBs, to revise,
consolidate, and amend the statutes relating to
the Post Office Department
The new postage regulations, and the
lation of copper and nickel corns In Post OBSOSe,
receive some attention In the report He respect
fully recommends the """lshmenthejaojtel
card system, of which so much has been said, and
advocates It by the usual arguments. .n
that the rate be fixed at one sent, inlndlngeo.t of
card, as a first step toward a general redustlen of
letter postags.
MISCELLANEOUS ITEMS.
Fruit fob Balloowtbts CorretiU ia
the air.
Thb Haritkm of Lh-jc The traeea at
time.
Now is the time to insure ia the Wash
ington Life.
ThkRB is said to be a village ui conneev
icnt where every other man owns a sa
loon. Wht is the letter " d ' Uke the marring
service? Because it make "we" ikU
"wed."
NlTBO-elLTCERIKE haa Deem in us five
years, and haa only killed erae thousand
seven hundred people.
It is utterly useless to look tip year
house, because In the morning you are
pretty Bure to find the door bolted. .
T njRTT-stx publishers, employing six
million dollars, are manufacturing Sunday
School literature in the United State.
A Lite Potior often proves te be a re
liable collateral in business emerncia.
Secure a policy in the Mutual Life Insu
rance Company of Chicago.
"Whew do appearances lead yon te sup
pose that a man runs the risk of being
burned to death? When he smokes.
A quail was lately hilled near Grass
Valley, California, which had two perfect
hearts attached together by a ligament.
A Chirese thief having stole a mis
sionary's watch brought it back the next
day to be shown how to wind It up
" I cah't find bread for my family," said
a lazy fellow, "Nor I," replld an indus
trious miller, " I'm obliged to work for it.
There are a dozen or more men In New
York who make a good living by writing
advertisements for business men.
A pHTeiciAH in Toronto has sned a
paper there for libel, his special grievance
being that the paper asserted that he was
" formerly a coachman." He craves $20,-
ooo. '
A minister once prayed : O Lord, w
thank Thee for the goodly number here
to-night, and that Thou also art here,
notwithstanding the inelemency of the
weather."
For over thirty years an old gentleman
at St. Albans, Vt., has made a practice of
getting out of bed every night, at 11, H, ,
and 4 o'clock, to enjoy a " cotnfbrtable
smoke."
A perron being asked what was meant
by the " realities of life," answered, "Real
estate, real money, and a real good dinner,
none of which could be realized without
TvEtl hard work."
r.,... . .,. ,1,1. .fWlnenic
As
piring Author Ah, you have read my
eaaay? I hope the vrMlct is fkvotable.
Editor O, yes, all right, acquitted on the
ground of insanity.
a 1. i.n t - i.t. vrlll eleven BtxvET
arta neAhr-vTaddiMt. " If I
"i"'""" w I ' . L.
! not lnft him the dozen, ne KnoWB rns-
The fact was, the nephew had some
. i fw, , hia ralatlv
time before Btole it from hli reiaure,

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