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President's Message Annual Message of tfc President of the United States to Congress. Delivered LXonilay, December 5, 1870. To the Senste nii lions of licprtstfiitatlves : i J Uj A ye-ir of pence hkq general prosperity to this nstion has pissod since thi last assembling of Cout-ress. We have, through u kind Providence, been b!eed with abundant crops, and have been spared from complications and WHr with foreign nttions. In our mil-t., comparative har mony has be : restored. It is to he regretted, however, that a free exercise of the elective fran chie 1'tH, by violonce nnd intimidation, been denied to citizens in exceptional case iu several of tfco stites lately in rebelliou, and the verdict of te peoplo has thereby been reversed. The gt;itei of Virginia, Mississippi und Texas have been restored to repreMeututution. in our national council. Georgia, tho only state nov without representation, may confidently hH expected to take her place t.hur also at the begiuuiu of the nee ye-ir, and then, let us hope, will bo comple ted the work of reconstruction. With an acqui-e-v-erco on the prtof the whole people in the nati mal obligation to pay the puhlio debt created a the price of our Union, the pensions to our dualled soldiers and sailors and their widows Mid orphatis, end in the changes to the constitu tion which have become neoessiry by the great re bellion, there is co reason why we should not advance in material prosperity and hsppiuess as no other nation ever did after ho protracted and devastating a wr. Soon ofter the existfng war broke out in Eu rope, tbe protection of the United States Minister in r-ris was invcud in favor of the North Ger man' domiciled in French territory. Instruc tions wete issued to grant tha protection. This has heen followed by an extension of Araerioan protection to citizens of Saxonv. Ilemin nnd Situ Coburg Goths, Columbia, Portugal. Uruguay, tb loniinuvn lepublio, Ecuador, Chili, Para puny, and Vttiernela, in Paris. The charge was an onerous one. reauirinur constant and navufa labor a well as the exercise of prudence and V m . good juagment. it lias oeea pertormed to the entire satisfaction of this government, and. anT am cffi'iinlly informed, equally so to the satisfac tion of the government of North Germany. As soon as 1 learned that a Republic had been pro claimed at Puris, and that the people of France bud aenuiesced in the chanfre. the Minister nf the United Stains was direotod by telegraph to rocogmzo it Rtn tenaer my congratulations and those of tho ronlo of the United St:itrs. Tha re-establishment in France of a system of gov ernment fiiNconnectoa witu tne aynagtio tradi tions of Europo appeared to be a proper subject for the felicitation of Amoriaans. Should tin. present struma result in attaching the hearts of tnerrencn to our simpler iorms of representa tive government, it will be a subjeot. of still further satisfaction to our people. While we irTrTke no effort to impose our institutions upon the inhabitants of other countries, and while we adhero to on traditional neutrality in civil in terest elsewhere, wo cannot be indifferent to the spread of American political ideas iu a great and highly civilized country like France. We were asked by the new government to us our good offices jointly with those ot the European powers in tho interest of peace. Answer was made that tho established nolicv and thn trim inturpnts rf tho United State- forbad-) them to interfere in European questions jointly w-'.h European pow ers. 1 ascertained, informally and unofficially, that the government of North Germany wus not then disposed to listen to such representations iron any powers; ana though earnestly wish iu.T to doe the blessings of peace restored to the belligciciit-s, with all of whom the United States are on term of friendship, I declined, on the part of tli i s government, to tako a step which would only result in injury to our true interests, without: advancing the object for which our in tervention w.t.s invoked. Should tho time come when tho action of the United States nan hasten the return of peace by a single hour, that action will be heartily taken. I deemed it prudent, in view of ths numlcrof persons of German t.tid French birth living in the United States, to issue, soon ofter official notice of a stato of war had been received from both tho belligerents, a proclamation, denning tho duties of tho Un-ted States as a neutral, aud tho obligations of persons residing within their territory to observe their laws and the laws of nations. This proclamation was followed by othora, as ciroumstanoos seemed to call for them. The people, thus acquainted, in advance, of their duties and obligations, have assisted in prevent ing violations of the neutality of the United States. It is not understood that the condition of the insurrection in Cuba has materially changed since tho close of the last session of Congress. In: an early stage of tho contest, the authorities of Sp-iin inaugurated a system of arbitrary arrests, and the military trial and execution of persons suspected of complicity with the insurgents, and of summary embargo of their properties and a requisition of their revenues bo exeoutive war rant. Such proceedings, as far as they affected the persons or property of citizen of tho United States, were in violation of the provisions of the treaty of 1795 between tho United Stutes and Spain. Representations of injuries resulting to several persons claiming to be citizens of the United Stts by reason of such violations, were mado to tho Spanish government. From April to Juno last, tho Spanish Minister at Wash ington had been clothod with a limited power to act in redrawing 6tich wrongs. That power was found to bo withdrawn in view, as it was said, of tho warlike situation in which the island of Cuba than wns, which, however, did not lead to u revocation of tho suspension of tho extraordi nary and arbitrary functions exercised by the executive power in Cuba, and we were obliged to mnko our complaint at Madrid. In tho nego tiations thus opened, and still pending there, the United States only claimed that for the future tho rights soeurul to their citizens by treaty thould be respected in Cuba, and that, as to tho past, a joint tribunal should be established in the United States, with full jurisdiction ovt;r all tuch claims. Hi -fore such an impartial tribunal inch claimant would be required to prove bis case. On the other hand, Spain would be at liberty to traverse every material fact, and thus compkte equity would 'be done. A esse, which at one time threatened seriously to affect the re lations between tho United Statos and Spain, lias ulreudy been dispoeed of in this way. The ch.im of the Colonel Lloyd, at Asplnwall, for the illegal seizure nnd detention of that vessel, was referred to arbitration by mutual oonscut, and hasrcjilted in un award to the United States for the owners of tho same of $19,702.50 in gold. Another and long ponding claim of a like nature that of tho whak-ship Canada has been die posed of by friendly arbitration, during the pres ent year. It was referred by the joint consent of Brazil and tho United States to the deoision of Sir Edward Thornton, llerBriUnnio Majes ty's Minister at Washington, who kindly under took the laborious tusk of examiningjthe volum inous mass of correspondence and testimony sub OTTAWA FREETRADER : SATURDAY, DECEMBER 10, 1870. mitted bv the two Governments, and awarded to the United State U esuroof ?10t),70O.O9 in gold, which hat since been paid by the imperial gov ernment The recent examples hLow that the mode which the United States have proposed to Spain for adjusting 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 the moderate demand may be acceded to by Spain without further delay. Should the peoding negotions unfortunately and unexpected ly be without result, it will then became mv duty to communicate that fict to Congress, and invite its aotion on the subject. The long deferred Peace Conference between Spain and the allied South American Rer, uldics has been inaugurated in Washington under the auspices of tho Unitod States, l'ursnant ti tho recommendation contained in tho resolution of the House of Representatives of the 17th of De cember, 18GG, the Exeoutive Department of the Government offered its friendly offices for tho promotion of peace and harmony between Spain and the Allied Republics. Hesitations and ob stacles occurred to the acceptance ot tho offer. Ultimately, however, a couferrenco was ar ranged, and was opened in this city on the 29th of October last, at which I authorised the Secre tary of 8tate to preside. It was attended by the Ministers of Spain, Puru, Chili and Ecuador. In consequence of tho absence of a representa tive from Bolivia, the conference was adjourned, until the attendance of a Plenipotentiary from that Republic could be secured, or other meas ures could be adopted toward compassing its ob ject. The allied and other Republics of Spanish origin on this continent may sto in this f.ict a B3W proof of our sin :tro interest iu their wel fare; of eur desire to nee them blessed with good Governments, capable of maintaining or der and preserving their respective territorial integrity, and of our sincere wish to extend our commercial and social relations with them. The time is not probably far distant when, in tho oourse of events, the European political connec tion with this oontinent will ce:io. Our policy should be shaped in view of this probability, so as to ally the oomruerci.tl interests of the Spanish-American states more closely to our own, and thus pive the United States all the pre-eminence and all the advantage which Mr. Monroe, Mr. Adams and Mr. Clay contemplated, when they proposed to join the Congress of Panama. During the last session of Congress a treaty for the annexation of the Republic of San Do mingo to the United States failed to receive the requisite two-thirds vote of the Senate. I was thoroughly oonvinced then that the best inter ests of the conntry, commercially and material ly, demand its ratification. Time has only con firmed me in this view. I now firmly believe that the moment it is known that the United States have entirely abandoned the project of ac cepting, as a part of its territory, tho Island of Sn Domingo, a free port will be negotiated for by European nations in the bay ot Samana. A large commercial city will sprug up, to which we Will be tributary, without receiving corresponding benefits. The Government of Sun Domingo has voluntarily sought tbo annex ation. It is a weak powur, numbering probably less than one hundred and twentv thousand souls, and yet possessing one of the richest local ities under the sun, caoable of supporting a pop ulation of 10,0(O,0U0 of people in luxury. The people of S.n Domingo are not capable of main tainingjthemselves in their present eondition.and must look for outside support They yearn for the proteetion of our free institutions and laws, our progrss and civilization. Shall we reiuse them ? The acquisition of San Domingo is desirable, becauso of its geographical position It com mands the entrance to the Cirribem Sea and the Isthmus trans-it to coiumeree. It possesses the riche-t soil, best and most ctiptcious harbors, the most salubrious clir.nto, and the mot valu able products of the forest, mine and soil of any of the West India islands. Its possesion by the United States will in a few years build up a coastwise commeroe of immense magnitude, which will go far towards restoring rb.the Unit ed States our lost merchant marine. It will give to us those articles which we consider of great value and do not produce, thus equalizing our exports and imports. In case of u foreign war it will give us command of all the islands referred to, and thus prevent an enemy from again possessing himself of a rendezvous upon our roast. Our gulf trade etwi-en tho st.ites bordering ou the Atlantic and those bordering on the Gulf of Mexico is by the Bihamas and the Antilles. Twice wu must, us it wero, pass through foreign countries to get 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 re munerative wages to 10,000 of laborers not now upon the island. This labor will take advan tage of every available means of transportation to abandon the ejacent islands, and seek the blessings of its freedom, and its sequenco is that eaoh inhabitant will receive the reward of his own labor. Torto Rico and Cub will have to abolish slavery as a measure of self-preservation to retain their laborers. San Domingo will be oome a large consumer of the products of north ern farms and manufactories. The che.ip rate at whioh her citizens cjii bo furnished with food, tools, land and machinery, will nuke nec essary that the contiguous islands should have the same advantages in order to compete with the pioduction of sugar, coffee, tobacco, tropical fruit, etc This will opou to us a wider market for our products. The production of our supply of theso articles will cut oil more than one hun dred millions of our unnu il imports. With sueh a picture, it is easy to see how our large debt abroad is to bo ultimately extinguished. With a balanoe of trado against ns, including interest ef bonds held by foreigners, and money shipment of our citizens traveling in foreign lands, eqtfal to the 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 dootrine as a measure of nutionul protection. It is asserting our right to a controlling influence over ,the great commercial traffic soon to flow from tho west to tho oast, by the way of the Isth mus of Darien. It is to build up our merchant marine. It is to furnish new markets for tho roducts of our farms, shops, and manufacturers, t is to make slavery unsupportahle in Cuba and Porto Rico at once, ultimately so in Brizil. It is to settle the unhappy condition of Cuba, and ond an exterminating conllict. It is to provido honest means of paying our honest debts without overtaxing the people. It is to furnish our citi zens with the necessaries of cvery-day life at cneaper rates tnan ever brture, and it is, in fine, a rapid stride towards that greatness which the intelligence, industry and onternriso of the citi zens of the United States entitle this country to among tho nations. Iu view of the importance of this question, I earnestly urge upon congress early action expressive of its viows us to the bast means of aoquiriugQSan Domingo. My tmpgest ion is, that by a joint resolution of the two Houses of Congress the exeoutive bo authorized to appoint a commission to negotiate for a treaty B!il. .1.. H..tl....:,!.. l c-... i e .L. . witn uu ouiiiui Hies oi oi .uoinmgo ior ue ac quisition of that island, und that un appropria' tion bo made to defray the expenses of such com mission. Tho question may be determined by the aotion of the two houses of congress, upon a resolution of annexation, us in tho case of the no- quldtion of Texas. I am so convinced of all of the advantages to flow, from the acquisition of Baa Domingo, and of the great disadvantages, 1 might almost say calamities, to flow from Its not acquisition, that I believe the subject has only to do invasiigiiioa to to approved. It Is to bo regretted that our representation 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 larsre tract of its territory on our borders, have not only been fruitless, bat that it is even proposed in that country to ex tend the limits within whioh the privilege ad verted to has hitherto been enioved. The exne- diency of taking into your serious consideration we proper means for countervailing tne policy referred to will, it is presumed, engage yonr ear nest attention. It is the obvious interest, espe cially of neighboring nations, to provide against injury to those who may have committed, high crimes within their borders, and who may have sought refuge abroad. For this purpose extradi tion treaties have been concluded with several of the Central American Republics, and others are in progress. The sense of congress is desired as early as may be convenient upon the proceed ings of the Commission on Claims against Ven ezuela, whioh are communioated in the messages of March 1, 1SG9, Maroh 1, 1S70, and March 31, loiO. It has not been deemed advisable to dis tribute any of the money which has been re ceived from that government until congress shall Have acted upon the subject The mssacrea of French and Russian resi dents at Tien-Tsin, under oironmstanoea of great barbarity, were supposed by some to have been premeditated, and .to indicate a purpose among the populace to exterminate foreigners in the Chinese Empire. Tne evidence fails to establish such a supposition, but shows a complioitv bv the local authorities and the mob. The govern-1 went at Pekin, however, seems to have been dis- I j ii-ii . . . ... . . ..i luru io -minu irs treaty oDiigauons 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 massaore. It would appear that the popular mind beoame possessed with tho ida that this contest, extending to tne Chinese waters, would neutralize the Christian influence and power, and that the time was com ing when the superstitions mass might expel all foreigners aud restore the Mandarin influence. Anticipating trouble from this eause, I invited France and North Germany to make an author ized suspension of hostilities in the east, where they were temporarily suspended by act of the commanders, to aot together for the future pro tection in China of the lives and property of Americans and Europeans. Since the adjournment of congress the ratlfl tions of the treaty with Great Britain for abol ishing the mixed courts for the suppression of the slave trade have been exchanged. It is be lieved that the slave trade is now confined to the eastern coast of Afrioa, whence the alaves are taken to Am' ian markets. The ratifications of ths Naturalization Con vention between Great Britain and the United States have also been exchanged during the re cess, and thus a long-standing dispute between the two governments has been settled in accord ance with the principles always contended for by the Unitod States. In April last, while engaged in locating a mil itary reservation near Pembina, a corps of engi neers discovered that the commonly received boundary line between the United States and the British possessions at that plaos is about fifty-seven hundred feet south of the true posi tion of the zenith parallel, and that the line, when run on what is now supposed to bo the true position of that parallel, would leave the fort of the Hudson's Bay Company, at Pemhiaar within the territory of the United States. This information being communioated to the British government, I was requested to consent and I did consent that the British occupation of the fort of the Hudson's Bay Company should con tinue for the present. I deem it important, however,; that tnis ptrt of the boundary line should be definitely fixed by a joint commission of the governments, and submit herewith esti mates of tho expense of such a commission on the part of the United States, and recommend an appropriation for that purpose. The land boundary is already fixed and marked from the summit of the Rocky Mountains to the Georgian Bay. It should now be, iu like manner, marked from the Lake of the Woods to the summit of the Rocky Mountains. I regret to say that no eonclusion has been reached for the adjustment of the claims against Gre.it Britaiu, growiuit out of the course adopted by that government during the rebellion. The Cabinet of London, so far as its views have been expressed, does not oppear to be willing to con cede that Her Majesty's Government was guilty of n ifligence, or did or permitted any act dur ing the war by which tha United States has just cause of complaint. Our firm and unalterable convictions are directly the reverse. I therefore recommend to conirrest to authorize the appoint ment of a commission to take proof of the amounts, and the ownership, acd their claims, on notice to the representative of Her Majesty at Washington, and that authority be given for the settlement of these claims by the United States, so that the government shall have the ownership of the private claims, as well as the responsible control of all the demands against Great Britaiu. It cannot be necessary to add that whenever Her Majasty's Government shall entertain a desire for a full and friendly adjust ment of these claims, the United States will en ter upon their consideration with an earnest de sire for a conclusion consistent with the honor and dignity of both nations. The course pursued by the Canadian author ities toward the fishermen of tho United States during the past season has not been marked by a friendly feeling;. By the first article of the Convention of 1818, between Great Britain fim 1 the United Slates, it was agreed that the inhabitants of Ihe United States should have forever in common with British subjects the riget of takini; fish in certain wiitm therein delined. In the waters not included in the limits named in the convention, within three mill's of ports of the British coast, it has bech the custom for many years to give intruding fishermen of the United Stutes a reasonable warning of the violation of the technical lights of (1 rent Britain. The imperial Government is understood to have delegated the whole or a share of its jurisdiction or control ef these in-phore grounds to tho Dominion ef Canadu, and this senii-indcpcmleut but irresponsible agent has exercised its delegated powers in an unfriendly way. ; Vessels have been seized without notice or warning in violation of the custom previously . prevailing, and have been taken into the colonial ports, their voyages broken up, nnd the vessels condemned. There is rcnon to believe that this unfriendly and vexatious trentnieut was designed to bear liuishly upon the hardy fishermen of the Utiitetl States, with u viow of political effect upon this Government. The Btatutes of the Dominion of Canada assume a still broader nnd more untenable jurisdiction over vessels of the United States. They authorized officers or persons to bring vessels hovering within three marine miles of uny of the coasts, bays, creeks or harbors of Canada into port, to seurch the cargo, to examine the master on oath touching tho cargo and vovacre. and to S : .. : ..4 . i t ... i , .. ... iiiiuot upon uiui it iit-uvy pecuniary penalty it true answers are not given, ana it such a vessel is found preparing to fish within threo murine miles of any such coasts, bays, creeks, or harbors without a license, or after the expi ration of the period named in the last license granted to it, they provide that the vessel, with her tackle, etc., shall be forfeited. It is not known that any condemnations have been made under this statute. Should the author ities of Canada attempt to enforce it, it will become my duty to take such steps as may be necessary to protect the rights of the United Btates. It has been claimed by Her Majesty's officers that the fishing vessels of the United Slates have no right to enter the open port3 of the British posseeaions In North America, except for the purpose of shelter and repair ing damages, of purchasing wood and obtain ing water ; that they have no right to enter at the British Custom House, or to trade, except for the purpose of wood and water ; and that they must depart within twenty-four hours after notice to leave. It Is not known that any seizure of a fishing vessel, carrying the flag of the United States, has been made under this claim. So far as the claim is foun ded on the alleged construction of the conven tion of 1818. it cannot be acquiesced in by the United States. It is hoped that it will not be insisted on by Her Majesty's Government. During the conferences which preceded the negotion of the convention of 1818, the British Commissioners proposed to expressly exclude the fishermen of the United States from the privilege of carrying on trade with any of His Britannic Majesty's subjects residing within the limits asigned for their use, and also that it should not be lawful for the vessels of the United States engaged in such fishery to have on board any goods, wares, or merchandise whatever, except such as may bejneccessary for the prosecution ot their voyages to and from said fishery grounds, and any vessel of the United States which shall contravene this reg ulation may be seized condemned and con fiscated with her cargo. This proposition, which is identical with the construction now put upon the language of the convention, was emphatically rejected by the American Com missioners, and thereupon was abandoned by the British Plenipotentiaries, and article 1, as it stands in the convention, was substituted. If, however, it he said that the claim is founded on Provincial or Colonial statutes and not upon the Convention, this Government cannot but regard them as unfriendly and in contra vention of the spirit, if not of the letter, of the treaty, for the faithful execution of which the Imperial Government is alone responsible. Anticipating that an attempt may possibly be made by the Canadian authorities in the coming season to repeat their unneighborly act toward our fishermen, I recommend you to confer upon the Executive the power to sus- 1end, by proclamation, the operation of the awa authorizing the transit of goods, wares, and merchandise in bond across the territory of the United States to Canada; and further, snould such an extreme measure' become necessary, to suspend the operation of any laws whereby the vessels of the Dominion of Canada are permitted to enter the waters of the United States. A like unfriendly disposition has been manifested on the part of Canada in the maintenance of a claim of right to exclude the citizens of the United States from the navigation of the St. Lawrence. This river constitutes a national outlet to the ocean for eight States, with an aggregate population ot 17,600,000 Inhatj'itants, and with an aggregate tonnage of 681,367 tons upen the waters which discharge into it. The foreign commerce of their ports on these waters is open to British competition, and the major part of it is done In British bottoms. If the American seamen be excluded from this uatural avenue to the ocean, the monopoly ot the direct commerce ot the lake ports with the Atlantic would be in foreign hands, their vessels on trans-Atlantic voyages having an access to our lake ports which would be denied to American vessels on similar voyages. To state such proposition is to refute its justice. During the Adminis tration of Mr. John Quincy Adams, 3lr. Clay unquestionably demonstrated the natural right of the citizens of the United States to the navigation of this river, claiming that the act of the Congress of Vienna, in opening the Rhine and other rivers to all nations, showed the judgment of European jurists anil states men, 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 parsing through the territory of another rower. I his right does not exclude the co-equal right of the sovereign possessing the ter ritory through whioh the river debouches to the sea, to make such regulations relative to the policy of tho navigation as may be reasonably necessary, but those regulations should be fram ed in a liberal spirit of amity, and should not impose reediest burdens upon the commerce whioh has the right to transit It has been found in praotice more advantageous to arrange these regulations by mutual agreetno.it The United States are redy to make any reasonable arrange ment as to the navigation of tbe 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 shores of the lakes was enly 3,400,000, It now derives greater force and equity from the increased pop ulation, wealth, produotion and tonnage of the states on the Canadian frontier. Since Mr. Clay advanced his argument in behalf of our right, the principles for whioh he contended have been frequently and by various nations recognized by law or by treaty, and been extended to several other great rivers. By the treaty concluded at Mayence in 1831, the Rhine was declared free from the point where it is first navigable into tbe sea. By the convention held between Spain and Portugal, concluded in 1835, the navigation of the Douro throughout its whole extent was made free for the subjects of both crowns. In 1S52 the Argentine Confederation, by treaty, threw open the free navigation of the Purawa nnd Uruguay to the merchant vssels of all nations. In 185G the Crimean war was olosed by a treaty whioh provided for the free navigation of the Danube. In 1858 Bolivia, by a treaty, declared it regardod the rivers Amazon and La Plata, iu accordance with fixed principles of national law, as highways or ohannels opened by nature for tho commerce ef all nations. ' ( In 1859 the Paraguay was mado free by treaty, and in December I860, tbe Emperor of Brazil by imperial deoree deolared the Amazon to be open to tho fontier of Brazil to the merchant ships of all nations. The greatest living British authority on this subjeot, while asserting the abstract right of the British claim, says it seems difficult to deny that Great Britain may ground her refusal upon strict law. But it is equally diffioult to deny, first, that iu so doing she exercises harshly an ex treme and hard law; secondly, that hor conduct with respect to the navigation of the St. Law rence is in glaring and discreditable inconsist ency with her couduot With respeot to tbe navi gation of the Mississippi. On the ground that she possessed a small domain in whioh the Mis sissippi took its rise, she insisted on the right to navigate the entire volume of its waters. On the ground that she possesses both bauks of the St Lawrence where it disembonches itself into the sea, she denies to the United States the right ot navigation, though about one-half the watffs of lakes Ontario, Erie, Huron and Superior ana the whole e! Lake lliohigan, through wkioh the riv er flows, are the property of the United States. Tbe whole natlun is interested in seouring cheap tranaanrtAtlnn rm . , ... . . r - - ...... uo .jjuuuiiurm males t W"Ht to tbe Adantio eea-boird. T-, the Ile.a,.of3ee states it secure a greater return iLLST bor; to the inlaWiUuts of tha sea od i offer, cheaper food ; to the nation an in VZZa L nnal surplus of wealth. It is W -h9 mtof Greai Britain "ill Sa.i.nt8T.0, V0 and iu l4,m, whioh her Canidian prov inces have urged her adherence. .r59864 " i eubject to whioh I to look more to the cnnni.u. . .. . . : Chin and Japaa, foT.vT Oar representative, to all tne. governments LT.dT h?;iA?ae00e ?. trad" 5l;T .K Ulted nd the countries to which they are accredited : but th. . .Vs.. that the . carrying is done airnos ? llly.in "foS eign bottoms ; and while this atate of I ex ists we cannot control our due share of states and China and Japan is about .11 , carrying trade now conducted in AmericaJ vest f I woufd recommend a liberal policr toward that line of American steamer, ; onthat fine!?"6 1U 8UCCe,,S Ven iaCTi iw- The cost of building Iron vessels, the only ones that can compete with foreign vessels in the carrying trade-is so much greater in the United States than in foreign oountries that, without some assistance from the Government, they can not be successfully built here. There will be several propositions laid before congress in the course of the present session lookiag to a remedy for the evil. Even if it should be at some cost to the national treasury, I hope suoh encourage ment will be given as will secure American shipping on the high seas, and American ship building at home. The conditon of the archives at the department of state calls for tho early action of congress. The building now rented by that department is a frail structure at best, and at an inconvenient distano. from the Executive Mansion and from the other departments. It is ill-adapted to the purposes for which it is used, has not e.pacity to accommodate the archives, and i not fire-proof Its remote Mtuation, its slender construction, and the absence of a sapply of w.ter in the neighbor hood, leave but little hope of safety for the building or its contents in esse of the accident of a Are. Its destruction would involve the loss of the rolls containing the original acts.aud resolu tions of congress, of the historic reeords of the revolution and of the confederation ; of th) whole series of diplomatic and consular archive since the adoption of the constitution, and of the many other valuable records and papers left with that department when it was the principal depository of the government archives. I recommend an. appropriation for the construction of a buildinz for the Department of State. I recommend to your consideration the pro priety of transferring to the Department of the Interior, to which they seem more appropriately to belong, all power and duties in relation to the territories with which the Department of State is now charged by law or usage ; and from the Interior Department to the Wsr Department, the Pension Bureau, so fir a it regulates the payment of soldiers' pensions. I would farther recommend that tho payment of naval pension be transferred to one. of the bureaus of tbe Navy Deptrtment. ' - Tke estimates for the expenses of the govern ment for the fiscal year are fiy.244.3itj less than for the current one, but exoeed the appropriations io7t-G-epT"ent y,Hrfortho Jie items, 8J72,- m'-w o- o'" e!tt5mt0 however, is included f 22,ou,27.37 for public works heretofore bfgun under cjnre.si..ual ptrmiasion, and of which only so much is -tsked as congress may chooefto give. The appropriation for the aim work for the present fur-d year was f 1 1,94,5 1 08. The aver.s; value of gold as compared with national currency for the whole of the ye.r lstJO was i:54, and for eleven months of 170 the same relative valuo his been about 115. The approich to a sjecio basis U very gratifying, but the fact cannot be denied that instability of the value of our currency is prejudicial to our prosperity, and tend to keep up prices to tho detriment of trade. The evils of a depreciated and fluctuating cur rency are so ereat that, now, when the premium on gold has f illen so much, it would seem that the time has arrived when by wise, and prndent legislation congress should look to a policy which would place our currency at pvr with gold at no distant day. The tax collected from the people has been reduced more than 80 nno o(i'i ri- p. steadiness in our present course, there is no rea- uouwiiy.m a iew snort years the national tax gatherer may not din citizen almost altogether. vr un tiie revenue stamp dispensed by post masters in every community ; a tax upon liquors of all sorts and tobacco ia all it forms, and by a wis. adjustment of the tariff, which will put a duty only upon thoso nrticles which we could dispense with, known as luxuries, and on those which we use more of than we produce, revenue enough may be raised after a few year of peace and consequent reduction of indebtedness, to fulfill all our obligations ; and a further reduc tion of expenses in addition to a reduction ot in terest accjunt may be relied on to make this practicable. Revenue reform, if it means this, has my hearty support. If it implies a collection of all tho revenue for the support of the government, for the payment of principal and interest of the publio debt, pensions, &0., by directly taxing, the people, then I am against revenue reform, and confidently believe tho people are with me. If it means failure to provide the neoessary means to defray all expenses of the government, nnd thereby repudiation of the publio debt and pensions, then I am still more opposed to such kind of revenue reform. Revenuo reform has not been defined by any of its advocates, in my knowledge, but seems to be aocepted as something whioh is to supply every man's wants without any cost or effort ou his part. A true rovenuo reform cannot be made in a day, .but must be the work of nation al legislation and of time. As soon as the rev onue ean bo dispensed with, all duty should be removed from coffee, tea, and other articles of universal use not produced by ourselves. Tho necessities of the conntry compel us to collect revenue from our imports. An army of asses sors and collectors is not a pleasant eight to the citizens, but that or a tariff for rovenuo is ne cessary. 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 tho pauper labor of the old world, and also in the developement of home resources. Under the act of congress of the 15th day of July, the army has gradually been reduced, so that on the first day of January. 1871, the num ber of commissioned officers and men m all will not exceed the number ooutemplatod by ItkW The Department building is an old st-uotore, not fire-proof, and entirely inadequate in dimen sions to our presont wants. Many thousands of dollars sre uow paid annually for rent of pri vate buildings to aooomraodate the various Bu reaus of the Department.' I recommend aa ap propriation for a new War Department build ing, suited to the presont aud growing wants ot the nation. . - The report of the Seoretary of War shows a very satisfsotory reduction in the expenses of the army for tbe last fisoalyear. Far details you are referred to his aooompanying report. The expenses of the navy for the whole of the last year, I. ., from Deo. 1, 1800, the date ot the