Watertown republican. [volume], December 14, 1881, Image 3

About Watertown republican. [volume] (Watertown, Wis.) 1860-1906

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PRESIDENT’S MESSAGE.
Washington. D. C., December G.
To the Senate and House of Hepresentatives of
the United States:
An appalling calamity has befallen the Amer
ican people since their chosen representatives
last met in the halls where you are now as
sembled. We might else recall with unalloyed
content the prosperity with which throughout
the year the nation has been blessed. Its
harvests have been plenteous; its varied indus
tries have thriven; the health of its people has
teen preserved; it has maintained with foreign
governments the undisturbed relations of amity
and peace. For these manifestations of His
favor we owe to Him who holds our destiny in
His hands the tribute of our grateful devotions.
To that mysterious exercise of will which has
taken from us the loved and illustrious citizen
who was but lately the head of the nation, we
bow in sorrow and submission. The memory
of his exalted character, of his noble achieve
ments and of his patriotic life, will be treasured
forever as a sacred possession of the whole peo
ple. The announcement of his death drew
from foreign governments and peoples tributes
of sympathy and sorrow which history will re
cord as signal tokens of the kinship of nations
and the federation of mankind.
INTER-OCEANIC CANAL.
Save for the correspondence to which I shall
refer hereafter in relation to the proposed canal
across the Isthmus of Panama, little has oc
curred worthy of mention- in the diplomatic
relation of the country.
FORTUNE BAY CLAIMS.
Early in the year the Fortune Bay claims
were satisfactorily settled by the British govern
ment's paying in full the sum of £15,000, most
of which has already been distributed, as the
terms of the settlement included compensation
for injuries suffered by our fishermen at Aspec
Bay. There has been retained from the gross
award a sum which is deemed adequate for
these claims.
GREAT BRITAIN.
The feeling of good will between our own
government and that of Great Britain was never
more marked than at present. On the recog
nition of this pleasing fact, I directed, on the
occasion of the late centennial celebration at
Yorktown that a salute be given to the Britisn
flag.
TURKEY.
The insecurity of life and property in many
parts of Turkey has given rise to correspond
ence with the porte, looking particularly to the
better protection of American missionaries in
the Turkish empire. The condemned murderer
of the eminent missionary, Dr. Justin W. Par
son, has not yet been executed, although this
government has repeatedly demanded punish
ment.
THE DUTCH COLONIES.
The abolition of all discriminating duties
against the Dutch colonial productions of the
Dutch East Indies as are imported hither from
Holland has been already considered by con
gress and I trust that at the present session
the matter may be favorably concluded.
WITH GERMANY.
No new questions respecting the status of our
naturalized in Germany have arisen during the
year, and causes of complaint especially in Al
sace and Lorraine have practically ceased,
through the liberal action of the imperial gov
ernment in accepting our often-expressed views
on the subject. The application of the treaty
of 1868 to the lately-acquired Rhenish provinces
has received very earnest attention, and a defi
nite and lasting agreement on this point is con
fidently expected. The participation of the
descendants of Baron Yon Steuben in the York
town festivities and their subsequent reception
by their American kinsmen strikingly evinced
the good will which unite the German people
and our own.
WITH SPAIN.
Our intercourse with Spain has been friendly.
An agreement concluded in February last fixes
a term for the labors for the Spanish and Amer
ican claims commission. The Spanish govern
ment has been requested to pay the late awards
of the commission .and will, it is believed, ac
cede to the request as promptly and courteous
ly as on former occasions. By recent legislation
onerous fines have been imposed upon Amer
ican shipping in Spanish and colonial
ports for slight irregularities in manifests.
One case of hardship is specially worthy of
attention. The bark Masonica, bound for
Japan, entered Manilla in distress and is there
sought to be confiscated under the Spanish
revenue laws fer an alleged shortage in her
transhipped cargo. Though the efforts for her
relief have thus far proved unavailing it is ex
pected that the whole will be adjusted in a
friendly spirit.
WITH RUSSIA.
The senate resolutions of condolence on the
assassination of the Czar Alexander Second
were appropriately communicated to the Rus
sian government, which in turn has expressed
its sympathy in our late national bereavement.
It is desirable that our cordial relations with
Russia should be strengthened by proper en
gagements, assuring to peaceable Americans
who visit the empire the consideration which is
due to them as citizens of a friendly state.
This is especially needful with respect to Amer
ican Israelites whose classification with the na
tive Hebrews has evoked energetic remon
strances from this government.
WITH ITALY.
The consular agreement with Italy has been
sanctioned and proclaimed which puts at rest
the conflict of jurisdiction in the case of crimes
on shipboard. Several important international
conferences have been held in Italy dining the
year. At the geographical congress, and at
Turin, this country was represented by dele
gates of branches of the public ser
vice or by private citizens duly accredited in an
honorary capacity. It is hoped that congress
will give such prominence to their participation
as they may seem to deserve.
SWITZERLAND AND HER CRIMINALS,
The Swiss government has solicited the good
offices of our diplomatic and consular agents
for the protection of its citizens in countries
where it is not itself represented. The request
has within proper limits been granted. Our
agents in Switzerland have been instructed to
protest against the conduct of the authorities
of certain communes in permitting the emigra
tion to this country of criminal and other ob
jectionable persons. Several such persons,
through the cooperation of the commissioners
of emigration at New York, have been sent
back by the steamers which brought them, A
continuance of this course may prove a more
effective remedy than diplomatic remonstrance.
ROUMANIA AND SEBVIA.
Treaties of commerce and navigation, and
for the regulation of consular privileges have
been concluded with Romania and Servia, who,
since their admission into the family of Euro
pean states, as is natural with contiguous states,
have like institutions and like aims of advance
ment and development.
MEXICO.
The friendship of the United States and Mex
ico has been constantly maintained. The gov
ernment has lost no occasion of encouraging
the Mexican government to a beneficial realiza
tion of the mutual advantages which will result
from a more intimate commercial intercourse
and from the opening of the rich interior of
Mexico to railroad enterprise. I deem it im
portant that means be provided to restrain the
lawlessness unfortunately so common on the
frontier and to suppress the forages of the
reservation Indians on either side of the Rio
Grande.
CENTRAL AMERICA.
The neighboring states of Central America
have preserved internal peace, aud their nut
ward relations toward us have been those of
intimate friendship. There are encouraging
signs of their growing disposition to subordinate
their local interests to those which are common
to them by reason of their geo
graphical relations. The boundary dis
pute between Guatemala and Mexico
has offered this government an opportunity to
exercise its good offices for preventing a rup
ture between those slates aud for procuring a
peaceful solution of the question. I cherish a
strong hope that in view of our relations of am
ity with both countries, and our friendly coun
sels exemplary justice will be done again.
COSTA RICA AND COLOMBIA-
The Costa Rican government lately formed an
agreement with Colombia for settling by arbi
tration the boundary question between* those
countries, providing that the post of arbitrauts
should be offered successively to the king of
the Belgians, the king of Spain and the Presi
dent of the Argentine Confederation. The king
of the Belgians has declined to act, but I am
not as yet advised of the action of tbo king of
Spain.' As we have certain interests in the dis
puted territory which are protected by our
treaty engagement with one of the parties, it is
important that the arbitration should not. with
out our consent, affect our rights, and this gov
ernment has accordingly thought proper to
make its views known to the parties to the
agreement and to intimate them to the Belgian
government.
SOUTH AMERICA.
This government sees with great concern the
continuance of the hostile situation between
Chili, Bolivia aud Peru. An early peace be
tween those republics is much to be desired, not
only that they may themselves be spared further
misery and boodshod, hut because their con
tinued antagonism threatens consequences
which are in my judgement dangerous to the
interest of republican governments on this con
tinent, and calculated to destroy the best ele
ments of our free and peaceful civilization.
As in the present excited condition of
popular feeling in these countries there lias
been serious misapprehension of the position of
the United States, and as separate diplomatic
intercourse with each, through independent
ministers, is sometimes subject, owing to the
want of prompt reciprocal communication, to
temporary misunderstanding, I have deemed it
judicious at the present time to send a special
envoy accredited to all and each of them, and
furnished with general instructions which will
enable him to bring these powers into friendly
relations.
The governmet of Venezuela maintains its at
titude of warm friendship and continues with
great regularity its payment of the monthly
quota of tlie diplomatic debt. With
out suggestion as to the direction in which
congress should act, I ask attention to the
pending question affecting the distribution of
the sums thus far received. The relations be
tween Venezuela a~>d France, growing out of the
same debt, have been for some time past in an
unsatisfactory state, aud this government, as
the neighbor and one of the largest creditors of
Venezuela, has interposed itself since with the
French government with the view of producing
a friendly and honorable adjustment.
I regret that the commercial interests be
tween the United States and Brazil from which
great advantages were hoped a year ago, have
suffered from the withdrawal of the American
lines of communication between Brazilian ports
and our own. Through the efforts of our
minister resident at Buenos Ayres aud the Uni
ted States minister Santiago at treaty has been
concluded between the Argentine Republic aud
Chili disposing of the long pending Patagonian
boundary question. It is a matter of congratu
lation that our government has been offered
the opportunity of successfully exerting its good
influence for the prevention of disagreements
between the republics of the American conti
nent.
WITH CHINA.
I am glad to inform you that the treaties late
ly negotiated with China have been duly rati
fied on both sides and the exchange made at
Peking. Legislation is necessary to call its pro
visions into effect. The prompt and friendly
manner in which the Chinese government at
the request of the United States conceded the
modification of treaties, should secure careful
regard for the interests and suscepti
bilities of that government in the enact
ment of any laws relating to Chinese
immigration. These clauses of the treaties
which forbid the participation of citizens or
vessels of the United States in the opium trade
will doubtless receive your approval, and they
will attest the sincere interest which our people
and government have in the commendable ef
forts of the Chinese government to put a stop
to this demoralizing and destructive traffic. In
relation both to China and Japan, some changes
are desirable incur present system of consulate
jurisdiction. I hope at some future time to
lay before you a scheme for its improvement in
the entire east.
WITH JAPAN.
The intimacy between our country and Japan,
the most advanced of the eastern nations, con
tinues to be cordial. I am advised that the
emperor contemplates the establishment of a
constitutional government, and that he has al
ready summoned a parliamentary congress for
the purpose of effecting a change. So remarka
ble a step toward complete assimilation with
western systems cannot fail to bring Japan to
closer and more beneficial relationship with our
selves as the chief pacific power. A question
has arisen in relation to the exercise in that
country of the judicial functions earned on by
our minister and consuls. The indictments,
trial and conviction in the consular court
at Yokohama, of John Ross, a merchant
seaman on board an American vessel, have
made it necessary for the government to insti
tute a careful examination into the nature and
methods of this jurisdiction. It appeared that
Ross was regularly shipped under the protec
tion of the United States but was by birth a
British subject. Bly predecessor felt it his
duty to retain the position that as a regularly
shipped seaman on board an American mer
chant vessel, Ross was subject to the laws cf
the service and to the jurisdiction of the United
States consul and authorities. I renew the rec
ommendation which has been heretofore urged
by the executive upon the attention of congress,
that after the reduction of such amount as may
be found due to American citizens, the balance
of the indemnities heretofore obtained from
China and Japan, and which are now in the
hands of the state department, be returned to
the governments of those countries.
SANDWICH ISLANDS.
The king of Hawaii, in the course of his
homeward return after a journey around the
world, has lately visited this country. While
our relations with that kingdom are friendly,
this government has viewed with con
cern the efforts to seek replenishment
of the diminishing population of the
island from outward sources to a degree which
may impair the native sovereignty and inde
pendence, in which the United States w r as among
the first to testify a lively interest.
VARIOUS NATIONS.
Relations of unimpaired unity have been
maintained throughout the year with the re
spective governments of Austria, Hungary,
Belgium, Denmarl , Hayti. Paraguay, Uraguay,
Portugal, Sweeden and Norway, and this may
also be said of Greece and Equador. Although
our relations with these latter states have for
some years been severed by the withdrawal of
appropriations for diplomatic representatives at
Athens and Quito, it seems expedient to re
store those missions, even on a reduced scale,
and I decidedly recommend such a course,
especially with respect to Equador, which is
likely within the near future to play an impor
tant part among the nations of the Southern
Pacific.
INTERNATIONAL EXHIBITIONS.
The participation of Americans in 'hs exhibi
tions at Melbourne and Sydney will be approv
ingly mentioned in the reports of the two exhi
bitions scon to be presented to congress. They
will disclose the readiness of our countrymen to
make successful competition in distant fields of
enterprise.
COPYRIGHTS.
Negotiations for an international copyright
convention are in hopeful progress.
INDIANS.
The surrender of Sitting Bull and his force
upon the Canadian frontier has allayed all ap
prehension, although British Indians still cross
the border in quest of sustenance. Upon this
subject a correspondence has been opened which
promises an adequate understanding. Our
troops have orders to avoid, meanwhile, all col
lisions with alien Indians.
YORKTOWN CELEBRATION.
The presence at the Yorktowu celebration of
representatives of the republican descendants
of Lafayette and of his gallant compatriots,
who were our allies in toe revolution, has
served to strengthen the spirit of good will
which has always existed between the two na
tions.
81-METALLIC CONGRESS.
You will be furnished with the proceedings of
the bi-metabic conference held during the sum
mer at the city of Paris. No accord was reached,
but a valuable interchange of views was had
and the conference will next year be renewed.
ELECTRICAL EXHIBITION.
At the electrical exhibition and congress, also
held at Paris, this country was creditably repre
sented by eminent specialists, who, in the ab
sence of an appropriation generously lent their
effedent aid at the instance of the state do
partment. While our exhibitions in this almost
distinctively American field of achievement
have won several aAvards, I recommaud that
congress provide for the repayment of the per
sonal expenses incurred in the public interest
by the honorary commissioners and delegates.
INTER-OCEANIC CANAL.
The questions growing out of the proposed
inter-oceanic water-way across the Isthmus of
Panama are of grave national importance.
This government has not been unmindful of
the solemn obligations imposed upon it by its
compact of 1846 with Colombia as the inde
pendent and sovereign mistress of the territory
crossed by the canal, and has sought to render
them effective by fresh engagements with the
Colombian republic looking to their practical
execution. The negotiations to this end, after
they had reached Avhat appeared to be a mutu
ally satisfactory solution here were met
in Colombia by a disavoAval of the powers
which its envoy had assumed and by a proposal
fer negotiation on a modified basis. Mean
while this government learned that Colombia
had proposed to the European powers to join in
a guarantee of the neutrality of the proposed
Panama Canal, a guarantee Avhich would be an
indirect contravention of our obligation as the
sole guarantee of the integrity of Colombian
territory, and of the neutrality of the canal it
self. My lamented predecessor felt it bis duty
to place before the European powers the rea
sons which make the prior guarantee of the
United States indispensable and for Avhich the
interjection of any foreign guarantee might be
regarded as a superfluous and unfriendly act.
THE CLAYTON-BULWER TREATY.
Foreseeing the probable reliance of the Brit
ish government in the proATsious of the Clay
ton-BulAver treaty of 1850 as affording room
for a share in the guarantees Avhich the United
States covenanted with Colombia four years
before, I have not hesitated to supplement the
action of my predecessor by proposing to her
majesty’s government the modification of that
instrument aud the abrogation of such clauses
thereof as do uot comport Avitb the obligations
of the United States toward Colombia or with
the A r ital needs of the tAvo friendly parties to
the compact.
GENEVA PEACE CONVENTION
At its last extra session the senate called for
the text of the Geneva convention for the re
lief of the wounded In war. I trust that this
action foreshadows such interest in the sub
ject as Avill result in the admission to that hu
mane and commendable engagement.
TRADE STATISTICS.
The state department still continues to pub
lish to the country the trade and manufactur
ing reports received from its officers abroad.
The success of this course Avarrants its continu
ance aud such appropriation as may bo required
to meet the rapidly-increasing demand for these
publications. With special reference to the
Atlanta cotton exposition the October number
of the reports was devoted to a valuable col
lection of papers on the cotton poods trade of
the world. The international conference
for which the congress of 1878 made proA r ision
assembled in this city in January last and its
sessions were prolonged until March. Although
it reached no specific conclusions affecting the
future action of the participant powers, the in
terchange of views proved to be most valuable.
The full protocols of the sessions have been al
ready presented to the senate.
COLLISIONS ON THE HIGH SEAS.
I invite your attention to the propriety of
a-doptiug the new code of international rules
for the prevention of collisions on the high
seas, and of conforming tho domestic legisla
tion of the United States thereto, so that no
confusion may arise from the application of
conflicting rules in the case of vessels of differ
ent nationalities meeting in tidal waters. These
international rules differ hut slightly from ours.
They have been adopted by the navy depart
ment for the government of the war ships of
the United States on tho high seas and in for
eign Avatcrs, aud through the action of the state
department in disseminating the rules, and in
acquainting the ship masters with the option of
conforming to them without the jurisdictional
Avaters of the United States, they are now very
generally known and obeyed.
BOARD OF HEALTH.
As pertinent to this general suject I call your
attention to the operations of the national
board of health established by act of congress
a.pproved March 3, 1879. Its sphere of duty
was enlarged by tho act of June 2, in the same
year. By the last named act the board Avas re
quired to institute such measures as might
be deemed necessary for prevent
ing the introduction of contagious
or infectious diseases from foreign countries
into the United States or from one state into
another. Tbe execution of the rules and regu
lations prepared by tbe board aud approved by
my predecessor, has done much to arrest tho
progress of epidemic disease and has thus ren
dered substantial service to the nation. Tho
international sanitary conference to Avhich I
have referred adopted a form of a
bill of health, to be used by all ves
sels seeking to enter the ports of the
countries whose representatives participated in
the deliberations. This form has been pre
served by the national board of health aud in
corporated with its rules and regulations, which
have been approved by me in pursuance of law.
The health of the people is of supreme impor
tance, aud all measures looking to their preser
vation against the spread of contagious
diseases, and to the increase of our sanitary
knowledge for such purposes, deserve the at
tention of congress.
FINANCE.
Tbe report of the secretary of the treasury
represents in detail a highly satisfactory exhibit
of the state of our finances and the condition
of the various branches of the public service
administered by that department. The ordin
ary revenues from all sources for the fiscal year
ending June 10,1881. were from customs, $198,-
159,676; from internal revenue, $135,264,-
385; from public lauds. $222,186,317;
from tax on circulation and de
posits of ’ national banks, $811,611,572;
from the payment of interest by the Pacitio
Railway Com'panies, §810,833.80; from sinking
fund for Pacific Railway Companies, $805,-
180.54; from customs fees, fines, penalties, etc.,
$122,551,486; from fees, consular letters, pat
ents and lands, $22,244,948.99; from proceeds
of sales of government property, $26,217,400;
from profits on coinage* $3,468,485.61; from
revenues of the District of Columbia, $2,016,-
199.23; from miscellaneous soiu’ces, $6,206,-
880.13; total ordinary receipts, $360,782,297.
The ordinary expenditures for the same
period were: Formal expenses, $17,941,177,-
19; for foreign intercourse, $109,395,492; for
Indians, $6,514,161.09; for pensions, $50,050,-
279.62; for the military establishment including
river and harbor improvement and arsenals,
$40,465,465.55; for the naval establish
ment, vessels; machinery in improvement at
navy yards, $15,686,671.66; for miscellaneous
expenditures, including public buildings, light
houses aud collecting the revenue, $41,837,820;
for expenditures on account of the District of
Columbia, $3,543,912; for interest on the public
debt, $82,508,741; for premium on bonds pur
chased, $16,126,878; total ordinary ex
penditures, $260,712,887, leaving a sur
plus revenue of $100,069,404, which was applied
as folloAvs:
To the redemption of bonds for the sinking
fund $74,371,200; fractional currency for the
sinking fund $10,900,106; loans of February
1861, $74,180,000;: 10-40’s of 1864, $20,161,-
000; 5-20’s of 1862, $18,300,000; 5-20’s of 1864,
$3,400,000; 5-20’s of 1865, $37,300,000;
consols of 1865, $14,315,000; consols of 1867,
$9,591,500; consols of 1868, $3,374,000; loan
indemnity stock, $1,000,000; old demand, com
pound interest and other notes, $1,833,000; and
to the increase of cash in the treasury. $14,637,-
023. Total, $100,069,404. The requirements
of the sinking luud for the year amounted
to $9,078,606 402, which sum includes
a balance of $49,817,126 net, pro
vided for during the preArious fiscal year.
The sum of $74,480,201 was applied to this
fund which left a ihficit of $ '^205,873. The
increase of tho revenue in 1881 over those of
previous years was $29,352,901. It is ectimated
that the receipts during the present fiscal year
wall reach $400,000,060 and the expenditures
$270.00(1,000 leaving a surplus of $130,000,000,
applicable to the unking fund and the redemp
tion of the pul'fie debt,
SILVER CERTIFICATES.
I approve toe recommendation of the
secretary of the treasm-y that provision
be made lor the eaily retirement of sil
ver certificates, and that the act requiring
their issue be repealed. They were issued
in pursuance of the policy of the government
to maintain silver at near the gold standard,
they were accordingly made receivable for all
customs, taxes and public dues. About sixty
six millions of them are now outstanding. They
formed an unnecessary addition to the paper
currency, a sufficient amount of which may be
readily supplied by the national banks. In ac
cordance with the act of February 23, 1878, the
treasury department has monthly caused
at least $*2,000,000 in value of silver
bullion to be coined into standard silver dollars,
and 102,000,000 of these dollars have been al
ready coined, while only about 34,000,000 are
in circulation. For the reasons which he speci
fies, I concur in the secretary’s recommendation
that the provisions for coinage of an affixed
amount each month be repealed, and that here
after only so much be coined as shall be neces
sary to supply the demand. The secretary ad
vises that the issue of gold certificates should
not for the present be resumed, and suggests
that the national banks may properly be for
bidden by law to retire their currency except
upon reasonable notice of their intention so to
do. Such legislation would seem to be justified
by the recent action of certain banks on the oc
casion referred to in the secretary’s report.
Of the $515,000,000 of fractional currency
still outstanding, only about SBO,OOO has been
redcamed the past year. The suggestion that
this amount may properly be dropped from
future statements of the public debt seems
worthy of approval;so, also, does the suggestion
of the secretary as to the advisability of reliev
ing the calendar of the United States courts in
the southern district of New York by the
transfer to another tribunal of the numerous
suits there pending against collectors.
The revenue from customs for the past
fiscal year were $191,590,760.02, an increase of
$11,637,611.42 over that of the preceding year;
$138,093,562 39 of this amount was collected at
the port of Now York, leaving $50,251,523.63 as
the amount collected at all the other ports of
the country. Of this sum $479,771.33 was col
lected on sugar and molasses, $27,285,624.78
on wool audits manufactures. $21,462,534.34 of
iron and steel and manufactures thereof; $19,-
038,665.81 on manufactures of silk, $10,825,-
115.21 on manufactures of cotton, and $6,469,-
643.04 on wines and spirits, making a total
revenue from those sources of $133,058,720.81.
The expense of collection for the past
year were $6,419,345.20, an increase
over the proceeding- year of $387,-
410.04 notwithstanding the increases in
revenues from customs over the previous year.
The gross value of the imports, including free
goods, decreased over $25,000,000. The
marked decrease was in the value of unmanu
factured w r ool, $14,023,682 and in that of scrap
and pig iron, $12,801,671. The value of im
ports of sugar on the other hand showed ah in
crease of $7,457,474, of steel rails $4,345,521; of
barley $2,154,204, and of steel in bars,
ingots etc., $620,046. Contrasted with the im
ports wore as follows: Domestic merchandise,
$9,083,925,947; foreign merchandise, $18,451,-
399; total, 902,377,340; imports of merchandise,
$642,064,028; excess of exports over imports of
merchandise, $59,712,718; aggregate of exports
and imports, $15,450,419.
Compared with the previous year there was
an increase of $06,738,688 in the value of ez
ports of merchaudise and a decrease of $25,-
290,118 in the value of imports. The annual
average of increase of imports of merchandise
over exports thereof for ten years previous to
June 30th, 1873, was $1,488,922, but for the
last six years there has been an excess of ex
ports over imports ©f merchandise amounting
to $1,180,668,103, an annual average of $196,-
778.017. The specie value of the exports of
domestic merchandise was $370,616,473 in 1870
and $883,925,947 in 1871, an increase of $307,-
309,474 or 135 per cent. The value of imports
was $435,958,406 in 1870 and $642,064,628 in
1881, an increase of $20,670,220 or 47 per cent.
During each year from 1862 to 1879 inclusive
the exports of specie exceed the imports.
The largest excess of such exports over imports
was reached during the year 1864, when it
amounted to $92,204,929, but during the year
ending June 30, 1880, the imports of coin and
bullion exceeded the imports by $75,891,591,
and during the last year the excess of imports
over exports were $91,168,659. In the last an
nual report ot the secretary of the treasury,
the attention of congress was called to the
fact that $469,751,050in five per centum bonds,
and $203,573,750 in six per centum
bonds would become redeemable during the
year and congress was asked to authorize the
refunding of these bonds at a lower rate of in
terest. The bill for such refunding having
failed to become a law, the secretary of the
treasury in April last notified the holders of the
$195,690,400 six per centum bonds then out
standing that the bonds would be paid at par
on the first day of July followmg
or that they might be continued at
the pleasure of the government to bear interest
at the rate of three and one-half per centum
per annum. Under tin.; notice $178,055,150 of
the six per centum bonds were continued at the
lower rate and $17,635,250 were redeemed. In
the mouth of May a like notice was given re
specting the redemption or continuance of
the 8439,841,350 of five per cent, bonds then
outstanding, and of these $401,504,900 were
continued at 3 % P er centum per annum and
redeemed of the 6 per centum bonds
of the loan of February 8, 1871, and of the Ore
gon Avar debt, amounting together to $14,121,-
500, having matured during the year, the secre
tary of the treasury gave notice of his intention
to redeem the same, and such as have been pre
sented have been paid from the surplus revenue.
There have also been redeemed at
par $16,179,100 of the 3% per centum
continued bonds, making a total of bonds re
deemed, or which have ceased to bear interest,
estimates during the year of $123,909,650. The
reduction of the annual interest on the public
debt through these transactions is as follows:
By reduction of interest to 0% per cent. sl,-
047,395.227; by redemption of bonds $635,-
234,000; total $1,682,629,225. The 3)4 per
cent. bonds, being payable at the pleas
ure of the government are available
for the investment of surplus revenue without
the payment of premiums. Unless these bonds
can be funded at a much lower rate of interest
than they now bear, I agree with the secretary
of the treasury that no legislation respecting
them is desirable. It is a matter for congratu
lation that the business of the country has
been so prosperous during the past year as to
yield by taxation a large surplus of income to
the government.
REDUCING TAXATION.
If the revenue laws remain unchanged this
surplus must, year by year, increase on account
of the reduction of the public debt and its bur
den of interest and because of the rapid increase
ot our population. In 1360, just prior to the
institution of our internal revenue system,
our population but slightly exceeded 30,000,000.
By the census of 1880 it is now found to ex
ceed 50,000,000. It is estimated that even if
the annual receipts and expenditures should
continue as at present the entire debt could be
paid in 10 years. In -view, however, of the
heavy load of taxation which our people have
already borne we may well consider whether it
is not the part of wisdom to reduce
the revenues even if we delay a
little the payment of the debt. It
seems to me that the time has arrived when
the people may justly demand some relief from
their present enormous burden, and that by
due economy in the various branches of the
public service this may readily be afforded.
I, therefore, concur with the secretary in re
commending the abolition of all inter
nal revenue taxes, except those upon
tobacco in its various forms,
and upon distilled spirits and fermented liquors
and except also the special tax upon the man
ufacturers of and dealers in such articles. The
intention of the latter taxis desirable as afford
ing the officers of ibis government a proper
supervision of these articles for the prevention
of fraud. I agree with the secretary of the
treasm-y that the law imposing a stamp tax on
matches, proprietary articles, playing cards,
checks and drafts may with propriety be re
pealed, and the law also by which banks and
hankers are assessed upon then- capital and de
posits. There seems to be a general sentiment
in favor of this course. In the present condition
of our revenues the tax upon deposits is
especially unjust. It was never imposed in
this country until it was demanded by the
necessities of wax and never exacted, I believe,
in' any other country even in its greatest
exigencies. Bankers are required to secure
their circulation by placing with the treasurer
of the United States bonds of the general
government. The interest upon these bonds,
which at the time Avhen the tax
was imposed Avas 6 per cent., is now
in most instances 3% per cent.,
and besides the entire circulation Avas origin
ally limited by law, and no increase was allowed
when the existing banks had practically a
monopoly of the business, there Avas no reason
for the suggestion that for the franchise favor
ing grantees the government might very prop
erly exact a tax on circulation, but for years
the system has been free aud the amount of
circulation regulated by the public demand.
The retention of this tax has been suggested
as a means of reimbursing the gov
ernment for the expense of printing
and furnishing the circulating notes. If the
tax should be repealed it would certainly seem
proper to requue the national banks to pay the
amount of such expense to the comptroller of
the currency. It is perhaps doubtful whether
the immediate reduction of the taxation udou
liquors and tobacco is advisable, especially in
view of the drain upon the treasury which
must attend the payment of arrears of
pensions, a comparison, however, of the
amount of taxes collected under the varying
rates of taxation which have at different times
prevailed, suggests the intimation that some
reduction may soon be made without injuring
the revenues. The tariff laws also need revis
ing; but that a due regard may be paid
to the conflicting interests of our
citizens, important charges should be made with
caution. If a careful revision cannot be made
at this session, a commission such as was lately
approved by the senate and is now recommend
ed by the secretary of the treasury, would
doubtless lighten the labors of congress, when
ever this subject shall be brought to its consid
eration,
WAR DEPARTMENT.
The accompanying report of the secretary of
war will make known the operations of that de
partment for the past year. He suggests meas
ures for promoting the efficiency of the army
by adding to it a number of officers and recom
mends legislation necessary to increase the
number of enlisted men to 30,000, the maximum
allowed by laA\ r . This he deems necessary to
maintain quietness on our ever shifting frontier,
to preserve peace, and suppress disorders and
marauding in neiv settlements, to protect
settlers and their property against Indians, and
Indians against the encroachments of intruders,
and to enable peaceable immigrants to es
tablish homes in the most remote parts of our
country. The army is now necessarily scattered
over such a vast extent of territory that when
ever an outbreak occurs, reinforcements must
be hurried from many quarters over a
great distance and at a heavy cost for
transportation of men, horses, wagons and
supplies. I concur in the recommenda
tion of the secretary for increasing the
army to the strength of 30,000 enlisted men.
It appears by the secretary’s report that in the
absence of disturbances on the frontier the
troops have been actively employed in collect
ing the Indians hitherto hostile and locating
them on their proper reservations. That Sit
ting Bull and his adherents are now prisoners
at Fort Randall; that the Utes have been
moved to their new reservation in Utah; that
during the recent outbreak of the Apaches it
was necessary to reinforce the garrisons in
Arizona by troops withdrawn from New Mexico
and some Apaches are now held for trial
while some have escaped, and the majority of
the tribes are now on their reservations. There
is need of legislation to prevent intrusion upon
tbe lands set apart for the Indians. A large
military force at great expense is now required
to patrol the boundary line between Kansas
and the Indian Territory. Tbe only punish
ment that at present can be inflicted is the
forcible removal of the intruder and the impo
sition of a pecuniary fine, which in most cases
it is impossible to collect. There should boa
penalty by imprisonment in such cases.
The separate organization of the signal ser
vice is urged by the secretary of Avar, and a full
statement of the advantages of such permanent
organization is presented in the report of the
chief signal officer. Details of the usual work
performed by the signal corps and the weather
bureau are also given in that report.
I ask your attention to the statements of the
secretary of war regarding the requisitions fre
quently made by the Indian bureau upou*the
subsistence department of the army for the
casual support of bands or tribes of Indians,
Avhich appropriations are exhausted. The war
department should uot be left, by reason of in
adequate provision for the Indian bureau, to
contribute for the maintenance of Indians.
RIVER AND HARBOR IMPROVEMENT.
The report of the chief of engineers furnishes
a detailed account of the operations for the im
provement of rivers and harbors. I commend
to vour attention the suggestions contained in
this report inregard|to the condition of our fortifi
cations, especially coast defenses and recommend
an increase of strength of the engineer battal
ion, by which the efficiency of our torpedo sys
tem would be improved. I also call your atten
tion to the remarks on the improvement of the
South Pass of the Mississippi River, the pro
posed free bridge over the Potomac River at
Georgetown, the importance of completing
at an early day the north wing of the de
partment building and other recommendations
of the secretary of war which appear in his re
port. The actual expenditures of this depart
ment for the fiscal year ending June 30, 1881,
are $42,122,201, and appropriations for the
year 1882 were $44,889,725; the estimates for
18S3 are $44,541,276.
THE NAVY.
The report of the secretary of the navy ex
hibits tbe condition of that branch of service
and presents valuable suggestions for its im
provement. I call your special attention also
to the appended report of the advisory board
which will be convened to devise suitable meas
ures for increasing the efficiency of
the navy and particularly to the re
port as to the character and number of
vessels necessary to place it upon a footing
commensurate Avith the necessities of the gov
ernment. I cannot too strongly urge upon you
my conviction that every consideration of
national safety, economy and honor impera
tively demands a thorough rehabilitation of our
navy. With a full appreciation of the fact that
compliance with the suggestions of the head of
the department and of the advisory board
involves a, large expenditure of the public
moneys, I earnestly recommend such appro
priations as will accomplish an end Avhich
seems to be so desirable. Nothing can be more
inconsistent with true public economy than the
withholding of the means necessary to
accomplish the objects intrusted by the consti
tution to the national legislature. One
of three objects, and one which is of paramount
importance is declared by our fundamental law
to be the provision for the “common defense.”
Surely nothing is more essential to the defense
of the United States and of ail our people than
the efficiency of our navy.
We have for many years maintained with
foreign governments the relations of honorable
peace and that such relations may be perma
nent is desired by every patriotic citizen of the
republic; but if we read the teachings of his
tory we shall not forget that in the life of every
nation emergencies may arise when a resort to
arms can alone save it from dishonor. No
danger from abroad now threatens this people
nor have we any cause to distrust the
friendly professions of other governments, but
for avoiding, as well as for repelling, the dan
ger that may threaten us in the future, we must
be prepared to face any policy which we think
wise to adopt; we must be ready to defend our
harbors against aggression, to protect by the
distribution of our ships of war over the high
ways of commerce the varied interests of our
foreign trade, and the persons aud property of
our citizens abroad; to maintain everywhere the
honor of our flag and the distinguished position
which we may rightfully claim among the na
tions of the world.
POSTOFFICE DEPARTMENT.
The report of the postmaster general is a
gratifying exhibit of groAvth and efficiency of
the postal serAice.
The whole number of letters mailed in this
country in the last fiscal year exceeded one
thousand millions. The registry system is re-
Eorted to be in excellent condition, having
een remodeled during the past four years with
good results. The amount of registration fees
collected during the last fiscal year Avas $712.-
882, an increase over the fiscal year ending
June 30, 1877, of $345,443. The entire number
of letters and packages registered during the
year was 8,338,919, of which only 2,061 were
destroyed or lost in transit. The operations of
the money-order system are multiplying yearly.
Under "the impulse of immigration, of the
rapid development of the newer states and ter
ritories, and the consequent demand for addi
tional means of inter-commuuicatlon and ex
change, during the past year, 338 additional
money-order offices have been established,
making a total of 5,499 in operation at the date
of this report. During the year the domestic
money orders aggregated in value $105,075,969.
A modification of the system is suggested for
reducing the fees for money orders not exceed
ing five dollars from ten cents to five cents, and
making the maximum & 100 in place of 850.
Legislation for the disposition of unclaimed
money orders in the possession of the postoffice
department is recommended in view of the fact
that their total value exceeds one million dol
lars.
The attention f congress is again pointed to
the subject of establishing a system of savings
depositories in connection with the postoffice
department. The statistics of mail transporta
tion show that during the past year railroad
routes have been increased in length 6,249
miles and in cost 81,114,382, while steamboat
routes have been decreased in length 2,182
miles and in cost 8134,054. The so-called Star
routes have been decreased in length 3,949
miles and in cost 8364,144. Nearly all of them
are expensive routes and have been superseded
by railroad service. The cost of the Star
route service must therefore rapidly decrease
in the western states and territories.
The receipts from postage and other ordin
ary sources during the past fiscal year were
836,489,816. The receipts from the money
order business were 8295.531, making a total of
836,785,397. The expenditure for the fiscal
year were 869,251,736. The deficit supplied
out of the general treasury was 824,811,293 or
63 per cent, of the amount. The receipts were
83,469,918 in excess of those of the previous
year and 84,575,397 in excess of the estimate
made tw o years ago before the present period of
business prosperity had faily begun.
The postmaster‘general, however calls atten
tion to the constantly increasing cost of the
railway mail service as a serious difficulty in the
way of making the department self-sustaining.
Our postal intercourse with foreign countries
has kept pace with the growth of the domestic
service. Within the past year several countries
and colonies have declared their adhesion to
the postal union. It now includes all those
which have an organized postal service, except
Bolivia, Costa Rica, New Zealand and the Brit
ish Colonies in Australia. As has been already
stated, great reductions have recently been
made in the expense of the Star route service.
STAB ROUTE FRAUDS.
The investigation of the department of jus
tice and the postoffice department have resulted
in the presentation of indictments against per
sons formerly connected with that service, ac
cusing them of offenses against the United
States. I have enjoined upon the officials, who
are charged with the conduct of the cases on
the part of the government and upon the emi
nent counsel, who before my secession to the
Presidency, were called to their assistance, the
duty of prosecuting with the utmost vigor of
the law all persons who may be found charge
able with frauds upon the postal service.
“cow-boys.”
The acting attorney-general also calls atten
tion to the disturbance of the public tranquility
during the past year in the territory of Arizona.
A band of armed desperadoes, known as “cow
boys,” probably numbering from 50 to 100 men,
have been engaged for months in committing
acta of lawlessness and brutality which the local
authorities have been unable to repress. The
depredations of these outlaws have also been
extended into Mexico, which the marauders
reach from the Arizona frontier. With every
disposition to meet the exigencies of the case
I am embarrassed by lack of authority to deal
with them effectually. The punishment of
crimes committed within Arizona should ordi
narily of course be left to the territorial au
thorities, hut it is worthy of consideration
whether acts which necessarily tend to embroil
the United States with neighboring govern
ments should not be declared crimes against
the United States. Some of the “ incursions ”
alluded to may perhaps be within the
scope of the law, (revised statutes, sec
tion 5,286, forbidding military expeditions
or enterprises against friendly states,)
but in view of the speedy assembling of your
body I have preferred to await such legisla
tion as In your wisdom the occasion may seem
to demand. It may perhaps be thought proper
to provide that the setting on foot within onr
own territory of brigandage and armed ma
rauding expeditions against friendly nations
and their citizens shall be punishable as an of
fense against the United States. I will add
that in the event of a request from the terri
torial government for protection by the United
States against a domestic violence, this govern
ment would be powerless to render assistance.
The act of 1795, chapter 36, passed at a time
when territorial governments received little at
tention from congress, enforced this duty of
the United States only as to state governments,
but the act of 1807, chapter 39, applied also to
territories. This law seems to have remained in
force until the revision of the statute, when
the provision for the territories was dropped,
i am not advised as to whether this alteration
was intentional or accidental, but as it seems
to me that the territories should be offered the
protection which is accorded to the states by the
constitution, I suggest legislation to that end.
It seems to me that whatever view may pre
vail as to the policy of recent legislation by
which the army has ceased to be a part of the
posse comitalus, an exception might well be
made fer permitting the military to assist the
civil territorial authorities to enforce the laws
of the United States. This use of the army
would not seem to be the alleged evil against
which that legislation was aimed. From the
sparseness of population and other circum
stances it is quite impracticable to summon a ci vil
posse in places where officers of justice require
assistance and where a military force is within
easy reach,
UNITED STATES COURTS.
The acting attorney general calls attention to
the necessity of modifying the present system
of the courts of the United States, a necessity
due to the large increase of business, especially
in the supreme court. Litigation in our fed
eral tribunals became greatly expanded after
the close of the late war. So long as that ex
panse might be attributable to the abnormal
condition in which the community found itself
immediately after the return of peace, prudence
required that no change should be made in
the constitution of our judicial tribunals;
but it has now become apparent that an im
mense increase of litigation has resulted from
the wonderful growth and development of the
country. There is no ground for belief that
the business of the United States courts will
ever be less in volume than at present; indeed
that it is likely to be much greater is generally
recognized by the bench and bar, and in view of
the fact that congress has already given much
consideration to this subject, I make no sug
gestion as to detail but express the hope that
your delibrations may result in such legislation
as will give early relief to our overburdened
courts.
INTERIOR DEPARTMENT.
The report of the secretary of the interior,
with accompanying documents, presents an
elaborate account of the business of that de
partment. A summary of it would be too ex
tended for this place, but I ask your careful at
tention to the report itself. Prominent among
the matters which challenge the attention of
congress at its present session is the manage
ment of our Indian affairs. "While this ques
tion has been a cause of trouble and embar
rassment from the infancy of the government,
it is but recently that any effort has been
made for its solution, at once serious,
determined, consistent and promising success,
it has been easier to resort to convenient
makeshifts for tiding over the tempsrary diffi
culties than to grapple with the great perma
nent problem, and accordingly the easier course
has almost invariably been pursued. It was
natural at a time when the national territory
seemed almost illimitable and contained many
millions of acres far out of the bounds of civi
lized settlement that a policy should have
been initiated which more then aught
else has been the fruitful source
of onr Indian complications. I refer, of course,
to the policy of dealing with the various Indian
tribes as separate nationalities, of regulating
them by treaty stipulations, to the occupancy
of immense reservations in the west and of en
couraging them to live undisturbed, by any
earnest and well-directed efforts to bring them
under the influence of civilization. The unsat-,
isfactory results which have sprung from the
policy are becoming apparent to all. As the
white settlements have crowded the borders
of the reservations, the Indians some
times contentedly and sometimes against
their will have been transferred io
other hunting grounds, from which they
have again been dislodged whenever their new
found homes have been discovered by the ad
venturous settlers. These removals and the
frontier collisions by which they have often been
preceded, have led*to frequent and disastrous
conflicts between the races. It is profitless to
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