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vsm5T -i- -.ir-v 'f. Art - iif s ,- PPSSPW5 r s - ' & - - -JC F'fiS ? 'fwnMrTmnnnratirvn furnish fh mnnt 'Jiwnlsble pretext for a protective policy 7? . .withm these limitations. As certain .re- U( .- (taction should be made in cur customs Bvenne, toe amount or such reuuction -wMsrane been determined, the inquiry 1$ r f fcllnvi vhprn rnn it. best ha remitted. rV Mid what ancles can best be exempted 'from dnty in the interests of our citizens. ,. TneTednction should be made in the .revenue derived from a tax upon the im ' sported necessaries of life. We thus di; .itctlylessen the cost of living in every family of the land, and extend to the 'people in every humble home a larger Measure of the rewards of frugal indus try. NATIONAL BANKS. Thiring the year ended November 1st, 1885, one hundred and forty-five nation albankB were organized, with an aggre gate capital of $16,938,000. Circulation Botes have been issued to them amount- ing to $42,749,100. The whole number of these banks in existence on the day above mentioned waB 2,727. The very limited amount -f circulating Botes issued by our national banks com pared "with the amount the law permits them to issue upon a deposit of bonde for their redemption, indicates that the volume of cur circulating medium may be largely increased through this instru mentality. Nothing more important than the present condition of our cur rency and coinage can claim your atten tion. t "A SILVER COINAGE. . i Since February, 1877, the government has. under compulsory provisions of law rnriacpf1 nilvpr hnllinn and ninftri l4 lhe.Bame at the rate of more than $2,000,- UOU every montn. cy tnis process up to the present date 1215,759,435 have been coined. CONCERNinG THE COINAGE. A reasonable appreciation of a delega- . tion of power to the general gov- ernment would limit its exercise without express restrictive words o the people's needs, and the re- nniMntanla rt tha Titlilin TroXfarci TTnnTi j ' this theory the authority to coin money IB Kveu lu uuiji;icdo uy wo tuuouiuuuu, If it permits the purchase by the gov ment of bullion for coinage, it in any event does not justify such purchase and coinage to an extent beyond the amount needed for a sufficient circulating medium. The desire to utilize the silver product of the country should not lead to a misuse or a perversion of this power. The necessity for such an ad lition to to the silver currency of the nation as is compelled by the silver coinage act is unsatisfactory, from the fact that up to the present time only about fifty mil lions of silver dollars so coined have actually found their wav into circula tion, leaving more than one hundred and sixty-five millions in possession of XQ6 government, the custody oi which fias enta"iled a considerable expense for .f the construction of vaults lor its deposit. Against thiB latter amount there are out standing silver certificated to the amount of $93,000,000. Every month two millions of gold in the public treasury are paid out for two millions or more of silver dollars, to be added to the idle mass already accumu ated. If continued long enough, this operation will result in the substitution of 6ilver tor all the gold the government owns applicable to itB general purpose. It will not do to rely on tbTe custom receipts of the government, the Bilver , thus coined having been made a legal tender for all debts and dues, public and private. At times during the last six months, 58 per cent, of the receipts for duties have been in silver or silver cer- V tificates, while the average within that period has been 20 per cent. The portion of silver and itscerificates , -- .raceii-lw the government will Droba- r hlvinnrAQLA oa hmn rrrwn on fnr tha ra. "J ""x""" "" &"--' "i " """ -" son that the nearer the period approach es when it will be obliged to offer silver inpayment of its obligations, the greater i inducement there will be to hoard gold against tne depreciation in tne value oi 4 jyilver for the purpose of speculating. f When the time comes that gold has been I. withdrawn from circulation, then will be apparent the difference between the real value of the silver dollar and a dollar in gold, and the two coins well part com pany. Gold, still the standard of values nec essary in our dealings with other coun tries, will be at a premium over silver. .Banks which have substituted gold for the deposits of their customers, may pay them gold thus making a handsome profit Rich speculators will sell their hoarded gold to their neighbors who need it to liquidate their fereign debts at a rninnnn wfiminm nvfir ri1vpi- and t.hn - x . . , ... w.v 1 laboring men and women of the land, the most defenseless of all, will find that the TL dollar received for the wage of their toil It may be said that result will be but temporary, and that ultimately the '' ice of labor will be adjusted to the Jj 'jnge. But even if this takes place, j i3 wage worker cannot possiblv lose. tnce the price hois compelled to pay lor nib living win not oniy oe measured in a coin heavily depreciated and fluctu ating and uncertain in its value, but (this uncertainty in the value of the pur chasing medium will be made a pretext for an advance in prices beyond that i justified by actual depreciation. I The words uttered in 1834 by Daniel -'-'Webster in the Berate of the United States are true to-day. The very man of all others who has the deepest inter est in a sound currency and who suffers 3- most by mischievious legislation in t money matters, is the man who earns his daily bread by his daily toil. The i most distinguished advocate of bimetal 1 ism in discussing our silver coinage has lately written: "No American citizen has yet felt the sensation of cheapness, either in receiving or expending the silver act dollars; "andtti03e who live by labor or legitimate trade never will feel that sensation of . air Jness, however plenty silver dollars naW become. Tney will not be distnb ute4;as giftsamong the people, and if the 7 laboring man should receive four depre- dated dollars where he now receives but f" ' two. he will pay in the depreciated coin ' more than double the price he now pays H' for all the necessaries and comforts of )V L - Those who do not fear anv disastrous i l MUUAAnftnftAfl OflQlYlfT fVtm tfn Annimn1 W ll 'WBOCUBIHIVVO WWlUg A&UU1 bUO WUIU1UCU ,.v- 'WiuDUiBKry cuuihku ui silver as now ai- ;rected by law, and who suppose that the i addition to the currency of the country t will be a public benefit, are reminded Eivtaat the point 'S easilv reached in the attempt to float at the same time two 'aorta of money of different excellence. vwuu mu uBiier win cease to ue in cir- icolation. The hoarding of gold, which -"has already taken place, indicates that y.'We shall not escape the usual experience f Y'r o if this silver coinage bo continued a w may reasonably expect that gold and L V 'ill equivalent will abandon the field of Bv y. fllrMtlaf inn in nilvAr alnno Thia nf tuna, oiiBb uiuuuuc b cc v crc cuuuavuuu w4 circulating a medium, instead of 'Hi vo ib xt wui' Dot of) disputed 1aav attempt on the part of the eov- i awace tne circulation oi tne sn-K-A)rth eighty cents by side tRold dollar worth one hundred ran counter to trade, to be sue- be seconded by theconn- m people that both coins will a urns onrchasissr power. .a... " mXTZB CIKCDLATIOH. effort has been made by the secretary of the treasury to increase the amount of our silver coin in circula tion, but the fact that a large share of the limited amount thus put out has soon returned to the public treasury in payment of duties,! eads to the belief that tne people do not now oesire to Keep it on nana, ana tnis witn tne eviaent (im position to hoard gold, gives rise to the suspicion that there already exists a lack of confidence among the people touch ing our financial policy. There is certainly enough silver now in circulation to cause uneasiness. The whole amount coined and now on hand might after a time be absorbed by the people without apprehension, but it is the ceaseless stream that threatens to overflow the land which causes fear and uncertainty. What has bem thus far submitted up on this subject relates almost entirely to considerations of a home nature uncon nected with the bearing which the policy of other nations has upon the question; but it is apparent that a line of action in regard to our currency can not wisely be settled upon without con sidering the attitude on the subject, of other countries with whom we maintain intercourse through commercial trade and travel. An acknowledgement of thi3 fact is found in the act by virtue of which our silves is compuleorily coined. It pro vides that the president shall invite the countries composing the Latin union, so called,, and such other European nations as he may deem advisable, to join the United States in a conference to adopt a ratio between gold and silver, for the purpose of establishing, inter nationally, the use of bitmetallic money, securing " fixity of relative values be tween these metals. This conference absolutely failed, and a similar fate has awaited all subsequent efforts in the name direction; and still we continue our coinage of silver, at a ratio different from that of any other nation. The moBt vital part of the sil ver coinage act remains inoperative and unexecuted, and without an ally or friend. We battle upon the silver field in an illogical contest. To give full effect to the design of congre33 on this Bubject, I have made a careful and ear nest endeavor since the adjournment of the last congress. To this end I delegated a gentleman, well instructed in fiecal science, to pro ceed to the financial centers of Europe, and in conjunction with our ministers to England, France and Germany, obtain a full knowledge of the attitude and intent of these governments in respect to the establishment of such an international incisure as would procure free coinage of both metals at the mints of those coun tries and our own. By my directionjou? consul general at Paris has given close attention to the proceedings of the con gress of the Latin union in order to in dicate our interests, and report its action. It may be said in brief, as the result of these efforts, that the attitude of the leading powers remains substantially unchanged since the monetary confer ence of 1SS1. Nor is it to be questioned that the viewB of these governments are in each instance supported by a weight of public opinion. The steps just taken have, therefore, only more fully demon strated the uselessness of further attempt at present to arrive at any agreement on the subject with other nations. In the meantime we are accumulating silver coin, based upon our own peculiarities to such an extent, and assuming so heavy a burden to be provided for in any in ternational negotiations, as well as ren der us an undesirable party to any future monetary conference of the nations. It is a significant fact that four of the five countries composing theLatin union, mentioned in our coinage act, em barrassed with their silver currency have just completed an agreement among themselves that no more silver shall be coined by their respective governments, and that such as has been already coined and in circulation shall be re deemed in gold by the country of its coinage. The result of this expedien t by these countries will arrest the attention of those who suppose that we can suc ceed without injury in the attempt to circulate upon its merits all the silver we may com under the provisions of our silver coinage act. The condition in which our treasury may be placed by a persistence in our present course is a matter of concern to every patriotic citizen who does not desire his government to pay in silver such ot its obligations as should be paid in gold, nor should our condition be such as to oblige in a prudent manage ment of our affairs to stop calling in the pavment of interest bearing obligations .which we have the right now to dis charge, and thus avoid the payment of further interest thereon. The so called debtor class, ior whose benefit the continued compulsory coin age of Bilver is insisted upon, are not dishonest because they are dob tore; and they should not be suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated dollars. Nor should it be forgotten that it is not the rich nor the money lender alone that must submit to such a readjustment. The pittance of the widow and the orphan, and the in comes of helpless beneficiaries of all kinds would be disastrously reduced. The depositors in savings banks and other institutions which hold in trust the savings of the poor, when their little accumulations are scaled down to meet the new order of things would in their distress painfully realize the delusion of the promise made to them that plentiful money would "improve their condition. We have now on hand all the silver dollars necessary to supply present needs of people and to satisfy' those who from sentiment wish them in circulation, and if their coinage is suspended they can be readily obtained by all who desire them. If the need ot more ia at any time appar ent, their coinage may be renewed. That disaster has not already overtaken us furnishes no proof that danger does not rait upon a continuation of the present silver coinage. We have been saved by the most careful management and unusual expedients, by a combina tion of fortunate conditions and by a confident expectation that the course of the government in regard to silver coinage would be speedily changed by action of congress. Prosperity hesitates upon our threshold because of the dan gers and uncertainty surrounding this question. Capital timely shrinks from trade, and investors are unwilling to take the chance of the questionable shape in which their money will be returned to them, while enterprise halts at a risk against which care and sagacious 'man agement do not protect. As a necessary consequence labor lacks employment, and suffering and distress are visited upon a portion of our fellow citizens, es pecially entitled to the careful consider ation of those charged with the duties of legislation. No interest appeals to us so strongly for a safe and stable currency,' as the vast army of the unimployed. I recommend the suspension of the compulsory coinage of silver dollars, di rected by the law passed in February, 1878. The steamboat inspection service on the thirteenth day of June, 1S85, was composed of 140 persons including offi cers, clerks and messengers. The ex- penses ot tne service over of the service over the receipts were $138,822.22 during the fiscal year. The special inspection of Joreign ocean vessels organized under the law passed in 1882, was maintained during the year at an expense of $36,641.63. Since the clcse of the fiscal year, reductions have been made in the force employed which will result in a saving during the year of $17,000, without affecting the efficiency of the service. The supervising surgeon .general re ports that during the fiscal year 41714 patients have received relief through i, marine hospital service, of whom 12,803 were treated in hospitals, and 28,911 at dispensaries. Active and effective ef forts have been made through the medi um of this service to protect the country against an invasion of cholera, which has prevailed in Spain and France, and smallpox, which recently broke out in Canada. LIFE-SAVING SEBVICE. The most gratifying results have at tended the opeiations of the life-saving service during the last fiscal year. The observance of the provision of the law requiring that the appointment of a force employed in the service be made "solely with reference to their fitness, and without re'erence to political or party affiliation." has secured the result which may confidently be expected in any branch of public employment where such a rule is applied. As a conse quence this service is composed of men well qualified for the performance of their dangerous and exceptionally im portant duties. COAST SUEVEY. The work of the coast and geodetic eurvey was during the last fiscal year carried on within the boundaries and coasts of thirty-two states, two territor ies, and the District of Columbia. In July laBt certain irregularities were found to exist in the management of this bureau, which led to a prompt in vestigation of its methods, the abuses of which were brought to light by this examination, and a reckless disregard of dutv and the interests of the govern ment developed on the part of some of those connected with the servrce, mak ing a change of superintendent and other officers necessary. Since the bureauhas been in new hands an introduction of economy and application of business methods have produced an important saving to the government and promise more useful re sults. This service has never been reg ulated by anything but the mojt inde finite actB and unsatisfactory rules. It has gradually taken to itBelf powers and objects not contemplated in its crea tions and extended its operations until it sadly needs legislative attention. So far as a further survey of our coast is concerned, there seems to be a propri ety in transferring that work to the navy department. The other duties now incharge of this establishment they can not be profitably attached to some ex isting department or other bureau.ehould be prosecuted under a law exactly de fining their scope and purpose, with a careful discrimination between the sci entific inquiries which may properly be assumed by the government, and those which should be undertaken by state authority or individual enterprise. It is hoped that the report of the con gressional committee heretofore appoint ed to investigate this and other like mat ters will aid in the accomplishment of legislation on this subject. The reoort of the secretary of war is herewith sub mitted. The attention oi congress is invited to the detailed account which it contains of the administration of his de partment and his recognitions and sug gestions for the improvement of the service. The army consisted at the date of the last returns of 2,154 officials, and 24,754 ea'iBted men. The expenses of the de partment for the fiscal year ending June 30, 1885, were $45,850,999. Besides the troops which were sent in pursuit of the small band of Indians, who left their reservation in Arizona and committed murders and outrages, two regiments of cavalry and one of infantry were sent last July to the Indian Territory to prevent an outbreak which seemed imminent. They re mained to aid, if necessary, in the ex pulsion of intruders upon the reservation, who seemed to have caused the discon tent among the Indians, but the execu tive proclamation warning them to remove, was complied with, without interference. Troops were also sent to Rock Springs, in the Indian Territory, after the mas sacre of the Chinese there, to prevent further disturbances, afterward to Seat tle, in Washington Territory, to avert a threatened attack upon the Chinese la borers and domestic violence there, and in both cases the mere presence of the troops had the desired effect. It appears that the number of deser tions have diminished, but that during the last fiscal year the number was 2, 997, and one instance is given by the lieutenant general, of six desertions by one recruit I am convinced that this number of desertions can be much diminished by better discipline and treatment, but, the punishment should be increased for such repeated offenses. These desertions might also be reduced by lessening the term of the first enlist ment, thus allowing a discontented re cruit to contemplate a nearer discharge, and the army a profitable riddance after one term of service. - The judge advocate general reports that the number of trials' by general court martial during the year was 2,328, and that 11.851 trials took place before garrison and regiment court martials. The suggestion that probably more than half of the army have been tried for of fenses, great or small, in one year, may well attract attention. The board on fortifications and other defenses appointed in pursuance of the act of congress, approved March 3d, 1S85, will, in a short time, present its report, and it is hoped that this may greatly aid the legislation so necessary to remedy the present defenseless condition of our sea coasts. The work of the signal service has been proceeded with during the last year, with results of increasing benefit to ihe country The field of instruction has been enlarged, with a view of adding to its usefulness. The number of stations in operation on June 30th, 1885, was 4S9. Telegraphic reports are received daily from 160 stations. Reports are also re ceived from seventy-five Canadian sta tions, 375 volunteer observers, fifty-two army surgeons at military posts and 333 foreign stations.' The expense of the service during the fiscal year, after de ducting the receipts from military tele graph lines, was $797,561.97, and in view of the fact referred to by the secretary of war that the work of this service or dinarily is of a scientific nature, and the further fact that it is assuming propor tions constantly, and becoming more and more unsuited to the fixed rules, which must govern the army, I am in clined to agree with him in the opinion that it should be separately established. If this is done, the scope and extent of its operations shoald as nearly as pos sible be definitely prescribed by law, and always capable of exact ascertainment. The military academy of West Point is reported as being in a high state of effi ciency, and well equipped for the satis factory accomplishment of the purposes of its maintenance. The fact that the class which graduat ed last year is an unusually large one, has constrained ma to decline to make appointments to second lieutenancies in the army, from civil life, so that such vacancies as exist in these places may be reserved for such graduates; and yet it is not probable that there will be enough vacancies to provide positions for them all when they leave the military school. Under the prevailing law and usage. those not thus assigned to duty never actively enter the military service, and it is suggested that the law on this sub ject be changed so that such of these young men as are not at once consigned to duty after graduation maybe retained as second lieutenants in the army if they desire it, Bubject to assignment when op portunity occurs under proper rules as to priority of selection. The expenditures-on account of the dlltary academy ior the last fiscal year, elusive of the sum taken for its purpo- fs for appropriations for the Bupport of the army is $2,900,000. The act approved March 3,1885, de signed to compensate omcers and en listed men for the loss of private proper ty while in the service of the United States, is so indefinite in its terms, and apparently admits of so many claims, the adjustment of which could not have been contemplated, that if it is to re main in the statute book it needs amend ment. There should be a general law of con gress prohibiting the construction of bridges over navigable waters in such a manner as to obstruct navigation with provisions for preventing the same. It seems under the existing statutes that the government can not -intervene to prevent such a construction when en tered upon without its consent, though when such consent is asked and granted upon condition, the authority to insist upon such condition, is clear. Thus it is represented that while the officers of the government are with great care guarding against the obstruction of navigation by a bridge acros the Missis sippi river at St. Paul, a large pier for a bridge has been built just below the place, directly in the navigable channel of the river. If such things are to be permitted, an argument is presented against the appropriation of large sums ot money to improve the navigation of this and other important highways of commerce. THE NATY. The report of the secretary of the navy gives a history of the operations of his department, and the present condi- Ltion of the work submitted to his charge. hie details in full the course pursued by him to protect the rights of the govern ment in respec of certain vessels unfin ished at the time of his accession to office, and also concerning the dispatch boat, Dolphin, claimed to be imperfect and awaiting the acceptance of the de partment. No one can fail to see from the recitals contained in these reports that only the application of business principles has been insisted upon in the treatment of these subjects, and that whatever con troversy has arisen was caused by the exaction, on the part of the department, of contract obligations as they were legally constructed in the case of the Dolphin with entire justice" to the contractors. An agreement has been entered into providing for the as certainment by a judicial inquiry of the complete or partial compliance with the contract in her construction. It further provides for the assessment of any damages to which the government may be entitled on account of a partial failure to perform such contract, or pay ment of a sum still remaining unpaid up on her price. In case of a failure of per formance is adjudged, the contractor by reason of his failure in business,being unable to complete the other three ves eele, they were taken possession of by the government in their unfinished state under a clause in the contract permitting such a course, and are now in process of completion in the yard of the contractor, and under the supervision of the navy department. Congress at its last session authorized the construction of two additional new cruisers and two gunboats at a cost not to exceed in the aggregate $2,995,000. The appropriation for this purpose having be come available July 1st, steps were at once taken for the procurement of such plans for the construction of these vessels as would be likely to insure their use fulness when completed. They are of the utmost importance; considering the constant advance in the art of building vessels of this character, the time is not lost which was spent in their careful con sideration and selection. Inspired as I am by the hope Bharcd by all patriotic citizens that the day is not far distant when our navy will be such as will be fit for our standing among the nations of the earth and rejoiced at every step that leads in the direction of such a consummation, I deem it my duty to especially direct the atten tion of congress to the close of the report of the secretary of the navy by which the humiliating weakness of the present organization of this department is exhib ited. The startling abuses and waste of its present methods are expressed, and the conviction is lorced upon us with a certainty of mathematical demonstra tions that 'before proceeding further in the restoration of our navy we need to thoroughly reorganize the navy depart ment. Unquestionably, if we are content with the maintenance of a navy department Bimply as a shabby ornament vo the gov ernment, a constant watchfulness may prevent some of the scandal and abuses which have found their way into the present organization, and its incurable waste may be reduced to the minimum. But it we desire to build ships for present usefulness instead of naval reminders of the days that are past, we must have a department organized from the works supplied with all the talent and ingenui ty our country affords, and prepared to take advantage of the experience of older nations. The fact that within seventeen years more than $50,000,000 have been spent in the construction, repair, equipment and armanent of vessels, and the further fact that instead of an effective and cred itable fleet, we have only the discontent and apprehension of a nation without adequate protection, do not permit us to doubt that every attempt to revive our navy has thus far for the most part, been misdirected, and all our efforts in that direction have been little better than blind gropings and expensive aimless follies. POSTOFFICE PtPARTMENT. The affairs of the postal service are exhibited by the report of the postmast er general which will be laid before you. The postal revenue, whose rate of gain upon the rising prosperity of 1882 and 1883 outstripped the increasing expenses of our growing service, was checked by the reduction in the rate of letter post age which took effect with the beginning of October, in the latter year, and it di miniRhed during thepasttwo fiscal years $2;790,000 in about the proportion of $2, 270,000 in 1884 to $520,000 in 1885. National growth and development have meantime increased; expenditures have resulted in a deficiency in the rev enue to meet the expenses of the depart ment of $5,259,000 for the year 1884 and $S,250.C0O for the last fiscal year. The anticipated revival of the revenue has been oppressed and retarded by the unfavorable business conditions of the country, of which the postal service is a faithful indicator. The gratifying facts shown, however, by the report, is that our returning prosperity is marked by a gain of $380,000 in revenue in the lat ter half of the last year over the corres ponding period of the preceding year. The charge on the weight of first class matter which may be carried for a single rate postage, from a half ounce to an ounce, and. the reduction by one-half cent of the newspaper postage, which under recent legislation began with the current year, will operate to restrain the augmentation of receipts which other wise might have been expected, to such a degree that the scale of expense may gain upon the revenue, and cause an in creased deficiency to be shown at its close. Tet, after so long a period of re awakened prosperity, it is confidently anticipated that even the present low rates as favorable as. any country affords will be adequate to sustain the cost of the service. The operation of the postoffice depart ment is for the convenience and benefit of the people, and the method by which they pay the charges of this useful branch of the public service, so that it be just and impartial, is of less impoit ance to them than the economical expenditure of the means provided for its maintenance and the improvement of its agency. So they may enjoy its highest usefulness, proper attention has been directed to the prevention of its waste or extravagance, and good results appear from the report to have already been accomplished. I approve of the recommendation of the postmaster general to reduce the charges on domestic money orders of hve dollars and less, from eight to five cents. This change will materially aid those of our people who most of all avail themselves of this instrumentality, but to whom tne element cheapness is oi the greatest importance. With this reduc tion the system would still remain self supporting. The free delivery system has been extended to nineteen more cities during the year, and 178 now en joy its conveniences. Experience has commended it to those who enjoy its benefits, and the further enlargement of its iacuities is due to other communities to which it is adapted. In the cities where it has been estab lished, taken altogether, the local post age exceeds its maintenance by nearly $1,300,000. The limit to this system, which is now conferred by law, has been nearly reached, and the reason given justifies its extension which is proposed. It was decided, with my ap probation, after a sufficient examination, to be inexpedient for the postoffice de partment to contract for carrying out foreign mails under additional authority given by the last congress. The amount limited was inadequate to pay all within the period of the law, at the full rate of fifty cents per mile; it would have been unjust and unwise to have given it to eome and denied it to others. Nor could the contracts have been let under the law at a rate to have brought the aggregate within the appro priation, without such partial arrange ment of terms as would have violated the rate of inland postage which was proffered under another statute. It clearly appears to be a matter of com pensation, the desired service being three times the irice necessary to se cure transportation by other vessels upon any route to private persons for services not less burdensome. Some of the steamship companies upon the refusal of the postmaster gen eral to attempt by the means provided the distribution of the sum appropriated as an extra compensation, withdrew the services of their vessels, and thereby oc casioned a slight inconvenience, though no considerable injury, the mails hayr ingbeen dispatched by other means. Whatever may be thought of the policy of subsidising any line of public convey ance, I am satined that it should not be under cover of an expenditure incident to the administration of the department. There should be no uncertainty as to the .nature of the subsidy, or any discretion left to an executive officer, as to its dis tribution. If such gifts of public money are to be made for the purpose of aiding any en terprise in the supposed interest of the public, I cannot but think that the amount to be paid, and the beneficiary might better be determined by congress, than in any other way. An international congress of delegates from the postal union countries convened at Lisbon, Portugal, in July last, and after a session of one week the delegates ado ted a resolution for the amendment of the present postal union. This addi tional act has my approval, and will be laid before you with the department re port. 1 approve the recommendation of the postmaster general that another assist ant be appointed for his department. I invite your consideration to the several other recommendations contained in his report. The report of the attorney gen eral contains a history of the conduct of the department of justice during the last year, and a number of valuable sugges tions as to needed legislation, and 1 in vite your careful attention to the same. The condition of business in the courts of the United States is such that there seems to be an imperative necessity for immediate legislation on the subject. Some of these courts are so overbur dened with pending cases that the delays in determining litigation amount often to a denial of justice. Among the plans suggested for relief is one submitted by the attorney general. Its main features are the transfer of all the original jurisdiction of the circuit courts to the district courts, and an increase of judges for the latter, where necessary; an addi tion of judges to the circuit courts, and constituting them exclusively courts of appeal, and reasonably limiting appeals thereto. Further restrictions of the right to re move cases from the state to federal courts, permitting appeals to the supreme court from the courts of the district of Columbia and the territories only in the courts as they are allowed from Etate courts, and guarding against an unneces sary number of appeals from the circuit courts. I approve the plan thus out lined, and recommend the legislation necessary for its application to our judi cial system. The present mode of compensating United States marshals and district at torneys should, in my opinion, be changed. They are allowed to charge against the government certain fees for service, their income being measured by the amount of such fees within a fixed limit as to their annual aggregate. This is as direct inducement for them to make their fees in criminal cases as large as possible, in effort to reach the maximum sum permitted as is entirely natural. The consequence is that unscrupulous marshals are found encouraging frivo-. Jons prosecutions and arresting people on petty charges ot crime, ana trans porting them to distant places for exam ination and trial, for the sake of earning the mileage and other fees. In connection with this subject I de sire to suggest the advisability, if it oe found not obnoxious to constitutional objection, of investing United States commissioners with the power to try and determine certain violations of the law within the grade of misdemeanor, and such trials might be v made to depend upon the option of the accused, The multi plication of the small and technical of fenses, especially under the provisions of our internal revenue law under some change in our present system is very de sirable in the interests of humanity as well as economy. District courts are now crowded with petty prosecutions involving a punish ment, In cases of conviction, of only a slight fine, while the parties accused are harassed by an enforced attendance upon courts held hundreds of miles from their homes. Poor and friendless, they are obliged to remain in jail daring the months, perhaps, that must elapse before the decision of the court, and are finally brought to trial, surrounded by strangers, with but little real opportun ity for defense. In the meantime, frequently, the marshal has charged against the govern' ment, on his files for an arrest, the transportation of the accused and the expense ox the same for summoning witnesses before a commissioned, a grand jury, ana a court. The witnesses have been paid from the public fund large fees and traveling expenses, and the commissioner and district attorney have also made their charges against the government. This abuse in the adminis tration of our criminal law should be remedied and if the plan above suggest ed is not practicable some other should be devised. THE INPIANS. The report of the secretary of the in terior, containing an account of the operations of that department, and much interesting information, will be submitted for your consideration. The most intri cate and difficult subject in charge of this department is the treatment and man agement of the Indians. I am satisfied that some progress may be noted in their condition, as a result of a prudent admin istration of the present laws and regula tions for their control. But it is submitt d that there is a lack of a fixed purpose of policy on the sub ject which should be supplied, or it is useless to dilate upon the wrongs of the Indians; and as useless to indulge in the heartless belief that because their wrongs are revenged in their own atrocious manner, therefore they should be exterminated. They are within the care of our government, and their rights should be protected from invasion by the most solemn obligations. They are properly enough called the wards of the wards of the government, and it should be borne in mind that this guardianship involves on our part efforts lor the im provement of their condition and the enforcement of their rights. There seems to be a general concur rence in the proposition that the ulti mate object of their treatment should be their civilization and citizenship. Fitted by these to keep pace in the march of progress with the advanced civilization around them, they will readily assimilate with the mass of our population, assum ing the responsibilities and receiving the piotection incident to this condition. The difficulty appears to be in the selec tion of the means to be at present em ployed to attain this result. Our Indian population, exclusive of those in Alaska, is reported as number ing 260,000, nearly all being located on lands set apart for their own use and occupation, aggregating over 134,000,000 of acres. These lands are included in the boundaries of seventeen reserva tions, of different dimensions, scattered in twenty-one states and territories, presenting great varieties in climates. and in the kind and quality of their sons. Among the Indians upon these several reservations there exists the most marked differences in national traits and disposition, and in their progress toward civilization. While some are lazy; vicious and stupid, otheis are industrious, peaceful and intelligent. While a portion of them are self-supporting and independ ent, and have so far advanced iu civil ization that they make their own laws administered through officers of their own choice, and educate their children in schools of their own establishment and maintainance, others still retain in squallorand independence almost the savagery of their nature. The variation of their wants, growing out of and connected with the character of their several locations should be re garded. Some are upon reservations most fit for grazing but without flocks or herds; and some on arable land have no agricultural implements. Some of the reservations are double the size neces sary to maintain the number of Indians now on them. In a few cases, perhaps, they should be enlarged. Add to all this the difference in the administration of the agencies, while the same duties are devolved upon all; the disposition of the agents, and the manner of their con tact with the Indians, have much to do with their condition and welfare. The agent who perfunctionally per forms his duty, and slothfully neglects all opportunity to improve their physi cal condition and fails to inspire them with a desire for better things, will accomplish nothing in the direction of their civilization. While he who feels the burden of an important trust, and has an interest in his work, will, by consistent example, firm yet considerate treatment, and well directed aid and encouragement, constantly lead those under his charge, toward the light of their enfranchisement. The history of all progres3 which has been made in the civilization of the Indian will disclose the fact that the beginning has been religious teaching, followed by or accompanying secular education, while the self-sacrificing and pious men and women who have aided in the good work by their independent endeavors have for their reward the beneficent results of their labors and the consciousness of Christian duty well performed. Their valuable services should be fully acknowledged by all who, under the law, are cuarged with the control and management of our Indian wards. What has been said indicates that in the present condition of the Indians, no attempt should be made to apply a fixed and unyielding plan of action to then varied and varying needs and circum stances, yet there is a great need of cre ating an instrumentality, auxiliary to those already established for the care of the Indians. I recommend the passage of a law authorizing the appointment of six com missioners, three of whom shall be detailed from the army, to be charged with the duty of a careful inspection from time to time of all the Indians up on our reservations, or subject to the care and control of the government, with a view of discovering their exact conditions and needs, and determining what steps shall be taken on behalf of the government to improve their situa tion in the direction of their self support and civilization. That they ascertain from such inspection, which reserva tions may be reduced in area, and in such cases, what portion not needed for the Indian occupation may be pur chased by the government from- the Indians and disposed of for their benfit They should also be charged with the duty of assisting the Indians, who mignt properly be furnished with implements of agriculture; and in what cases the sup port of the government sbould be extend ed or withdrawn; where in the present and generally all matters related to the welfare and improvement of the Indian plan, of- distributing Indian supplies Bhould be changed; where schools should be established, and where discontinued; the central method? of agents in charge of reservations; and the extent to which such reservations are occupied by mnauthorized people. They should advise with the secretary of the interior concerning these matters of detail in the management, and he should be given power to deal with tfcea fully, if he is not invested with aaak power. This plan contemplates the se lection of persons for commissioners who are interested in the Indian question, and who have practical ideas on the sab ject of their treatment. The expense of-the Indian bursas during the last fiscal year was mora than $6,500,000. Much of this expendi ture might be saved under the plan pro posed. Its economical effects would be increased with its continuance; the safe ty of our frontier settlers would be sab served under the operation, and that tha nation would be saved through its re sults from the imputation of inhumanity, injustice and mismanagement in order to carry out the policy of the allotment of Indian lands in severally when deem ed expedient It will be necessary to have surveys completed of the reserva tions, and I hope that provision will be made for this purpose. , In May, of tne present year, a small portion of the Chirachuahuas, on the White Mountain reservation in Arizona, left the reservation and committed a number of murders and depredations apon the settlers in that neighborhood. Though prompt and energetic action was taken by the military the renegades eluded capture and escaped into Mexico. The formation of the country through which these Indians passed, their thor ough acquaintance with the same, the speed oi their escape and the manner in which they scattered and concealed themselves among the moun tains enabled them to avoid their pursuers, though the expectation is still entertained they will be ultimately taken and punished for their crimes. THE CATTLEMXX. The threatening and disorderly con duct of the Cheyennes, of the Indian Territory, early last summer, caused considerable alarm and uneasiness. Investigation proved that their threat ening attitude was due, in a .Teat meas ure, to the occupation of their lands by immense herds of cattle, which their owners claimed were rightfully there under certain leases made by the In dians. Such occupation appearing upon ex amination to be unlawful, notwithstand ing these cases, the marauders were or dered to remove with their cattle from lands of the Indians by executive pro clamation. The enforcement of this proclamation had the effect of restoring peace and order among the Indians, and they are now quiet and well behaved. By an executive order issued on Feb ruary 27, 1885, by my predecessor, a portion of the tract of country known as the Old Winnebago and Crow Creek reservation was directed to be restored to the public 'domain, and opened to settlement under the land laws of the United States, and a large number of persons entered upon those lands. The public domain had its origin in cessions of land by the states to the gen eral government. The first cession was made by the state of New York, and the largest in area, which exceeded all the others by the state of Virginia. The ter ritory, the proprietorship of which be came thus vested in the general govern ment, extended from the western line of Pennsylvania to the Mississippi river. These patriotic donations of the states were incumbered with no condicion, except that they should be held and used for the common benefit of the United States. By purchase with the common fund of all the people, additions were made to this domain until it extended to the northern line of Mexico on the Pacific ocean and the Polar sea. The original trust "for the common benefit of the United States attached to all." In the execution of that trust the policy of many homes rather than large estates was adopted by wise government. That these might be easily obtained, and be the abode of security and contentment, the laws for their acquisition were few, easily understood and general in their character. But the pressure of local interest com bined with a speculative spirit haye in many instances procured the passage of laws which maned the harmony of the general plan, and incumbered the system with a multitude of special enactments which render the land laws complicated, and subject titles to uncertainty and the purchasers often to oppression and wrong. Laws which were intended for the common benefit, have been pervert ed bo that large quantities of land are vested in single ownership, from the multitude and character of the laws this consequence seems incapable of correc tion by mere administration. It is not for the common benefit of the United States that a large area of public lands should be acquired directly, or through fraud, in the hands of single individuals. The nation's strength is in the people. The nation's prosperity is in their prosperity; the nation's glory is in the quality of her Justice; the nation's perpetuity ib in the patriotism of her people, hence, as far as practicable, the plan adopted in the disposal of public lands should havs in view the original policy, which encourages many purchas ers of the public lands for homes, and discourages the massing of large areas. Exclusive of Alaska, about three-fifths of the national domain has been sold or subjected to contract. 'Of the remaining two-fifths, a considerable portion is either mountain or desert. A rapidly increasing population creates a growing demand for homes, and the accumulation of wealth inspires an eager competition to obtain the pub lic land for speculative purposes. In the future this collision of interests will be more marked than in the past, and the execution of the nation's trust in behalf of our settlers will be more diffi cult. I commend to your attention the recommendations contained in my report of the secretary of the interior with reference to the repeal and modification, of certain of our land laws. LAND GRANTS. The nation has made its principal grants and subsidies to a system of rail roads, projected as great national high ways to connect the Pacific states with the east It has been charged that these donations from the people have been diverted to private gain and corruption. and thus the public indignation has been aroused and suspicion engendered. Our great nation does not begrudge its generosity, but it abhors fraud; and the favorable regard of our people for the great corporations to which these grants were made can only be restored by their constant, unequivo cal and clearly manifested integrity. A faithful application of the undimin ished proceeds of their grants, the con struction pnd perfection of their reads, and an honest discharge of their obliga- tijns to all the people along these high ways oi travel, is aii we puouc asks; and it will not be content with less. To secure these aims should be the common purpose of the officers of this government as well of the corporations. With this accomplish ment property would be permanently secured to the roads, and national pride would take the place of national com plaint. pensions. , It appears from the report of the com missioner of pensions that there was, on the first day of Jaly, 1885, 315,125 per sons borne upon the pension rolls, who (Conunned on another page-); ! I &- 3k s -.-&. r 'VlU,. r WV 'it r -S- kg.. 1 ' V V yg-' y 'A IC&X.-1', - . l .K' MTf . iPSSdza 1 .J.J; ,:!