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23F2I3tffiT JUuUm Count g Scpablican SAVANNAH", AlIS.SOUKI. illlllft I (Utl ILu.e of i:irc. ' ntatire In - e oi-tci!t i iy sevensn annual Tin --.aire to - Centemual year of our national l:ee and m l. pendent people, it ili"trlr. :t. -i.ro to recur to til"' :d uicci.i. llicel.i. nt that La j be.-i. made Horn the ttmcof the olullii m. iuTi)i:i:u m:ai:s a:o. then a people numbering only three We were million-, .nillton.-. otU?U'". ii 'W we litnniier more man lony i.an industries were coriiiaed ;i!mo.-t to the tillage of tin' Soil; now .n.inufae;.,rie- absorb much 01 the labor of the country, our liberties remain unimpaired; the bondsmen have been lreed ironi .slavery; we have bs-oine po.-so-sed of the re-peot, if not the iri-ndship, ot all civilized nation.-; our prog:.--- has been great in all the aits, m science, commerce, navigation, mining, meclianii-. l.-.w, medii'inc, etc., etc., anl in general eiuc ttion the progress is likewise encour aging. ur tnirteon c-tates have become thirty eight, including Colorado, which has Liken the steps to become a .-late, and eight Territories, including il;e Indian Territory and Alaska, and excluding Colorado, making the territory ex tend from the Atlantic, to the Pacific. n the i south we have extended to the Gulf of M-.Kieo, and in the Westirom the Mississippi to the l'aci- ; lie. On. li'.ni Ired years ago the cotton gin, the -team-hip. railroad, tae telegraph, the reap- ' ins, sewin.', and modern printing machines, and ' iiunier.;i.- m.icr inventions, of scarcely less value to our business ami happiness, were entirely Tin- 1 known. In i' manuiac'.i.res scarcely existed even in na;ie. In all this vast territory m 170 i more than two millions of persons were em- J nloyed in manufactures producing more ' than $-,! o.OK.'.aio of produce, an amount annually n-.iriy equal to our national debt. J'r;u "neariy the wliole of the i opu!.i'.;-:. ; iTT-; being engaged in the one.c- j cnpatioa of agriculture, ' so numerous and , Uversii; -i ha 1 become the occupations of our j people, :;.;t -i than six millions out of more! :uan :-i'y uiiiheiis were so engaged. The extra- , ordinal-;."' led produced in our country by a ro--ort t- snob occupations has built a market for :.ie i ro bids . leriile landsdi.-tant from the .-ea- lioanl aid tae uiaricctso: the world. Tlie Am.-r- ioan system of working various and exten-ive ' iiiai!Ul' tu.es i.ext lo the plow ai.d ihe pa-tuiv, . md adding i :Hi.:cliii,r railroads and si aiiihoats. has produced iu our di.-tani country re-uits not . equaled Hi.- intelligence oi other nations. ' Tiie ingi cutty a-ad skill of American mechanics1 have hi " I'monstrated at home and abroad jn a ' nianiiei :.so-; ;I.-tiii.a" lJ their pride. 15ut lor tae eii;t ri:ii-iry :uu- and aiiilily : our i..e- , .hauie-, fi. .w :i:t vcin-Mits oi our aArii-'T-turi-is, mamifae'iirer.- ami tran.-jiorters throughout ine e.mi.try v.oiiM have been impossible oi , .iitainiiie..t." Ttie progress of the miner has aisobeeu grcu. In e.ial our production was ! small. Now many miUioi;- of tons are mined : anuuai'y. s wiCi iron , unieh formed e.uec'.y 1 an apj;:e. iabie part of our prnduot a centuiy ,i!;o, Ki'iion pn.'.luce more than Ihe world con sumed at t'i- berinni!! oi ottrnalional existence, l.eail, zii'c anil copjier lrom bem articles of tin -liortrt we, ntay exiieet to be lari-'e exporters ol m the near fi.ttirc. The development of iioid and , -dv-r uiii.e.-tlirt)iilio;it the Mates and Territo ries ha- not onl been remarkable, bm. ha.- had a lare influen e up n the business of all commer cial iiauoii(. Our merchants in tiie last hundred i ears iiave bat a success ami have established a '. reputation foi-c:itcrprie, sagacity, progress and ' Tiite'rnty, t.uurp:i.s.-eil by t.;e people of older na- Lionaiities. Tlii- ud name is not oonlined to j their hoiu-'s, but -roes out on every sea and every port where commerce enters. With equal prioc wo can point ti our , projre-1' :n the learned profcr-sions. NTHNS MNH')OP. As we re about to enter on our second centen nial, c-itsmiciicmir our manhood as a nation, it is well to i; bad; upon the pa-t and study what will be b nt to preserve ami advance our" future jTcatnesri. trom tlie tall o; AOani lor ins trai.s- i gression t ttn-pre.-ent lay , no nation has ever been free lion: liireatened tlatv-'er to it.- prosperi- J ty ami happiness. Wo sliould look to the dan- iers that tlireaten ami remedy them so far as lies ;n our power. We are a I.'epublic whereof one' man is as oo i as an-ther befoiu the law. With such a form of government it is f the reato.-t I importance that all sh mid be possessi'd of edu- I cation and inb'biir ne.e enough to casta vote with i a right uu-lerstandini: of its meaning. A large! association of ignorant men cannot lor any eon- ; biderable oerio l oiiiiose a successfsil resistance to tvranir- as onoosed to the educated. Thev in - t... ...t. i - I. ciiey are woiui picbe. .i,B ,"',UM; I Uiey i:a- set men im- le.io-M rood to the greatest proportion of the population of anv form of government vet dovi.-ed. All other form-iof government approach it first in J proportion to the general diffusion of education i and independence d thought and action. Asthe j primary sep therefore tt our advancement in all I that has marked our progress in the pal con- i turv. I suggo-t for your earnest consideration, ami mo-l c i'nest!y recommead, tliat a c.onstitu- tional ;iinernimr-nt' be submitted to She I.egisla- , Hires o! 'he scv-ral states for ratiileation. mak- , ing it ih" duty f each of the several -states t-j es tablish and forever maintain KitKlt litll.MC SCHO'lLS, adequab the-education of all children in the rudimentary branches within their respective limits, irre-pective of ox, color, birth-place or religion, ut:d forbidding the teachings in said -clioolsof religious, athoi-tic, aim pagan text, and proh. biting Die granting of any school funds or school taxes or any part thereof, cither by legislative, municipal or other authorities forthe benefit of any oilier object of any nature or kind whatever. rxt a:ki cm itcn l-uofttirrv. In connection with this import-tut question I would al-o ca-l your attention to the importance f correcting an' evil that, if perniitte-l to cni tinuo, " ill proba'il.N b ad to great trouble m our land beloit-'the cltse ot tiie nineteenth century. It is the accumulation of va-t iimounts of nil taxed church properly. In l-oo 1 believe the church propert.. of tne Tinted states which paid no tax, niunicipel or state, amounted to about $:,,0i)o,0fH. In W;' the amount had doubled. In IS7.', it is about 1 ,ihhi,o.hi,coO. Jty mo.), with- ..nt i-linel- ir ij mi ft to s.-iv this urooortv will eyiUtbiy hiiik; and acquie-er-to tiie will oi u.iei- ; jn ,,. ., jn .,,.,.,..,, Iir..auia. igence. w-i.einer .iirec e,i py ine demagogue oi . .".oa-titute in facta body p-ditic-haviag by prie.-te.raft. Hence the education oi the mass- , VL.nim)I!t iu .,uu,tance as well as jn name, os becomes of the tirst iiecos.-itv lor " f the element-of stabilitv, andequip tho preservation of our institutions. ,;,,.,..,,,..,,. f,. ,i1;,,;,"t,-.iii,.n , i ; 1 reach a sum exceeding sj.'i.'otiO.Ml i.iiiki. So vast'1 0.11 a sum receiving all the protection and benefits of Government without bearing its proportion of the burdens and expenses of the same, will not be looked upon acquiescently uy those who nave paid taxes. taxes. I,, a growing country where real 1 evi ie... -, -nonld avoid anv "probability enhances so rapidly with time as in the 0 ;l ,;US)i( j..,, . ,. .. an imputation in the recog :d slates, there is scarcely a limit to ' ' .,,,,,,..,, Ul., j, heiu in ealth thatniaybeacquiretl by coriiorations 1 .., .,., .t!,!;. :;l,d indef en.-ible. The estate enh I'nited the we: religious or otherwise, if allowed to retain real estate without taxation. The contemplation of so vast a property as horealluded to w ithout tax ation may lead to sequestration without constitu tional authority and perhaps with bloodshed. I would sngge-t the taxation of all property equal ly, whether church or corporation, excepting o'nlv the last re-ting place of the dead, and po.--sioiv w.t'.t proper restrictions of church c-diliccs. ovn vorvaus i:elatio:s. esnondeni-e of the Uepartment of State w ith our diplomatic representatives abroad is transni.tted herewith. I am lupoy to announce the passage of an act bv the General Cortes of Portugal, proelaimud -nice the adjournment ol Congress, forthe abo lition of servitude in the Portuguese colonies. It is to be hoped that such legislation may be an other step toward the great consummation to be reached, wi.on no man shall be permitted, di rectly or indirectly, under any guise, excuse or form of law, to hold his fellow-man in bondage. I am of opinion, also, that it is the duty of the I nitcd Stales, as contributing toward that end ami required bv the spirit of the age iu which we live, to provide bv suitable legislation that no itizenof tlie United, states shall hold slaves as i.-,-.M..i:..s w-,tii mo-l. ot the foreign nowers t has essentially changed the cnaracter o: itie , tain o. tne states o. -,iii"n-ie on -i s itisf ictorv and friendly footing. ' contest. It has acquired greater ago, our Irontier, remains m full .operation. It has I "re set ' i t ! 1 vt of coin- ' but not greater or more formidable pro- j always been materially injurious to honest traf- incm- ind the ciiitiv tion of mutual interests portions. It is possible that the acts of ! tic, for it operates as an iuee.it.ve to traders m ave improved our relations with the large ma- , loreign powers, and even the ads of spam hd;- ; Mexico to .-upplv without customs charges the ioritv of the powersof tho world, rendering prac- self, of this very nature, might be pointed to in wants of inhabitants on this side the line, and ue ible the ne-iceltil solution of oucstions which defense of such recognition; but now, as m t ie pn vent the same wants from being supplied by . . I i-Ollllll'II ui iUl..ni.,iin . .iii. , t.,t. clw vil.l .eirefe. tv in.n-clei 1O1 ..' Mifc 1 'n tei Stritss f beri-lc.' to !l t-oll - from tm-i- to time arise leaving lew W alien '.e- i'asi iiisiui v , un-. mi.... . .... ... . - , - - - - ov KraJfsUr Sfctto SSl cc. TI w w- avoid tl.e false lights which might lead .it into ' siderabh- extent defrauding our revenue audi pronerlv in any other country or be interested iiierem Chili has made reparation in tlie ease of the whalf.sl.ip Good Keturn, seized without sullieicnt cans'-upward f forty year.- ago, though .'lie had hitherto denied her accountability. The de ntal was never acquit .-cod in by this Govern -ment, and the justice of the claim has been e irne-tlv contended for that it na- been gratify ing that .-he should h ive a: last acknowledged it. 1'he arbitrator in the as-e of lho I'nited sutes i steamiT. Montiio. for the seizure ami detention of which the Coverniiicnt of the I "mted Stales of ( oiombia was held accountable, lias decided in favor of the el dm. This d.-.-.on has settled a question which has been pending for several years, ami which, while it continued open, un.rht 'more or 1 ss disturb the miod understanding which it is deso-.iblj should b.' in. detained be tween the republic.-. A re iprftcify treaty with th King f ihe Hawaii in Islands w.i- coticinded sont months ago. As it contains a stipulation that, it shall be noneffective until C gross shall exacithe proper legislation for thf puposf. copies of the instru ment are herewith sunmitted, i:i order that, if Pilch should be the pleasure oi Congre-s, the necesKiry legislation upon tlie subject may be adopted." In March last an arrangement wa- made through Mr. dishing, our Minister at Madrid, with the Spanish Government loi the payni"i:t by the latter to the I'nited States ol the sum of .a-.i.iHh) in coin for the purpo-e of the relief of tl.e families or persons of the ship's company and certain passengers of the Virgiuius. This sum was to have been pai l in three in-tallmi nts at two months each 1: is due to the Spanish Covernment that 1 should state that the pa meats wen; fully ami speedily anticipated by that Co. -ernnient. and that the whole amount was paid within but a few davs more than two months from the date of agreement , a copy of which is herewith tran-mitted. In pursuance of the Iwnu of the adjustment 1 have directed the dis tribution of the amount among the parties enti tled thereto, including the .-hip's company and -ueh of the passengers as were American citi zens. Payments are made accordingly on appli cation of ine parlies entitled thereto. Tin: cui:.N i:i.m:i.t.ioN. There is no evidence of an approaching end of t thi ruinous 'conflict which ha- been raginir fur i seven years in the neighboring island ol Cuba. The same disregard of the laws of civiliz -d w ar fare and of the just demands of humanity which hae heretofore called forth expressions of con demnation from Uie nations of t nrislend e.n have continued to blacken the sad scene. Desol itiou, ruin and pillage are pervading the rich field- of one of Ihe mo-t fertile and productive regions ,i the earth, and Uie incendiary's torch, lhtiv-c plantations and valuable lactone- and building t, l- the agent marking the alternate advance or re treat oi the contending parties. The protract -d eoit:nuane.e of the -trife st riou-ly allocs the in terests of a:l eoinuioreiai nations; but tho.-e of the 1'nited Male- more t l.tn other-, by reason of its close lH-oximitv. its larg- or trade ami intercourse with Cuin, unit frequent and iMtmate pers-mal and social relations wim-h haw gr wn up b" Wwen it- citi.ebs and lio.-e , toe island. Mote ov. r, the property cf on,- eitiens in Cuba is large and is rendered in-eeare and depri-ci ited in value md in capacity j M'oductjon b.. the continuation of the strife and the mm. Mural mode of its con lucf . I he same is true, ilVer:ng only in degree, with rested to the interests and peo- ! pic of other nations; aim the absence of any 1 reasonable assurance of a near term mat i ;i of tiie conflict must of neci s.-ity soon compel the State- tint-suffering to consider wiiat the inter ests of their piople ami their duty towards them selves may demand. I have hoped that Spain would be enabled to establish pea-e in her colony, to afford security to the property and the inter : o.-is of our citizens, ami allow a legitimate scope ' to trade and commerce and the imtioii.il produc tions ol the island. Ilecau-eot this hope, and i from an extreme reluctance to interfere in the j most remote manner m the affairs, of another and ' friendly nation especially ot one whose sympa ! thy and iriendrhip iu ihe struggling inlancy ofour own existence mil -t ever be l'emembei't l with gratitude-l have patiently and anxiously waited the progress of events. Our own civil , conllict is loo recent fur us not to consider the difficulties which surround a Covernu.ent dis- traded by a dyna-tic. rebellion at home, at the same time that it na- X cope with a separate 1:1 . stiiTcctioii in a distant colony. Hut whatever i cause may have produce"! ti e -ituation which so ' grievously alfu't.-our intere.-t-, witii its attend ! ant evils operating directly upon this country 1 and il- people, thus far alftho resorts ol r-iiaiii I have proved abortive, and time has marked no i improvement in the situation. The armed bands I of the other side now oeoup nearlv the same ground as in the .past, witli tho difference that trom time to time more lives arc sacrificed, prop erty destroyed, and wider extents of fertile and productive iiolds and more valuable property constantly and wantonly sacrificed to the incen diary's 'torch. In 'contests ol this na ture", when- a considerable body of people who have attempted to " free themselves of tiie control of the .-super .or Govern ternal nolicv ami the execution of its law and ....,i ,..i .HiiniiM-ti.i-;..tie,. . i. ...... - j.. a- well as in us oeanng- wuu oilier powers u is within the province oi tnoe power.- to recognize its existence as a new ami independent nation. In .-ueh cares other nations -imply deal with an actually existing condition ot thing.-, and recog nize as"one of the power.-of the earth that body politic which, possessing the O'-oe.-sary elements, I lias in fact become a new power, in a word, the 'creation of a new state is a I act. To establish 1 the condition of tl.ings es-ential to the reeogni j tion of this fact, there mii-l hi- a people occupy -I ing a known territory, united under some known I itud defined form oi "go.-ernmcnl , acknow !i ilged ! bv those subject thereto, m winch the fune 1 tions of government are administered j by the usual methods: competent to ' uiete out justice to c.ti.en.-.md strangers; to af , ford remedies lor public, and for private wrongs; and abb; to as-umethe relative and international ' obligati ns. and eapab.o ol performing the cor responding international duties, resulting fr-on its acquisition to ihe right.-, sovereignty anil power which should exist complete m it- nrgan fat ion, ready to take and able to iiia:ntain its jy.ac among tho nation.- ot earth. While con--'ious tnat ttie insirrre.'tio.i in Cubi ha.- shown a strength and endurance wh.ch make it:ulea-t doubtful whether it will be in the power of Spain to su'iniue, it seems unquestionable that, no .-ueh civil organization exi-ts which may be recog nized a- an independent government, capable of performing its obligations and entitled to be treat.-il as one "fthe powers oi the earth. A. re cognition under those circumstance.- would be inconsistent with Uie facts, and would compel the powers to give support by force to a Government to which il had really only a real claim of exist ence, in mv luugmeiu tne i mien .-kucs should adnere to the policy and the principles which have heretofore been its sun; safeguards in like contests i.veen revolted colonies and tiieir mother u: ry. and, acting only opou the question winch nct civ-eiits use;i in mat ot me recognition ol the belligerent rights in the par ties to the contest. In a former message t Con gress I had reason to consider this question, and reached the conclusion that the conllict in Cuba, dreadful and devastating as were the ovideiv-e.s, did not rise to the fearful dignity ot war. Ile ganlii.g il now, after this lapse of time, i am un able to' see that anv notable success or any mark ed or real advance on the part of the insurgents l '.10 . I III.' III. 1I.1WI- 1 I .11 111. r.l.y.. .1 MUII1L I.I ,11. '. . III. 1.1. 'II i ......i, :,. ,iw. ........ tin. ii!.ieK of tlnuotful law and ot tiiesiion.ibieicheclvinghoiie-tcoinmerc.iaienier c.i-e. ncpre- proprirty, and adhere rigidly and sternly to the j tlahons by armed bands from .Mexico ni the eo rule which has been its guide, and doing only pic of Texas near the frontier still continue, that which is right and honest ami of good re"- , Though the main object of the incursions is rob in, to Tim on..rionof according or of withhold- I berv thev freouentlv result in the murder ing lights ot belligerency must be judged in every case in view ot the particular atteii'iing farts. I nless justified by necessity, it is always ami justly regarded as an unfriendly act and a gratuitous demonstration of moral support to the rebellion. It is necessary and it is required when the interests and rights of another Govern ment or oi its people are so far affected bv a pending civil conllict as to require a definition of its relation to the parties thereto. JSut that this conllict must be one which will be recognized in the sense of international law as belligerence, too. is a fact. The nicre expense of uinintaiii- ing armed bodies and their occasional conflicts do not constitute, war in the sense referred to as applyin.tr to the existing condition of affairs in Cuba the to.it1' recognized by publicists and writers on international law and which have been observed by nations of dignity . hono-ty and power, when free from .-ci-itive, selfish or un woithv motives. I fail t find in the insurroe- ti n the expei.-e of keeping a sub-l intial pohn- , ca! organization, n ai, paipaoieano manne-i i i 1 thew'trld; having (he forms and capable of the ' ordinary function- of government towards it- ; I ov. ii people and to other stale-, with courts for! administration ol ju-tico with a local habiut- j i m; po--es.-ing -ue'ior-'anizatiou of fore.-, such j , material, such occupation of lerritor to take Ihe , i conte.-t out of Sin1 category of a men- rel.tdii'.as j 1 insurrection or hit i.-ional skirmishes, ami ylaee ' ! it on t!i-terrible footing oi war, to v. hie': a r. -'cognition of belligerency would aim to elevate it.' The contest, moreover, is solely on kind. , The insurrection is not possessed of a singie so.i- i j port whence it may .'end fort'.i its Ht-', nor has it ; any means of communication with Joreign p.w ' er.-exi-epL ttuough the military lines ot its ad 1 vorKirie.s. Xo api)reheii-i"n of any of tho.-e.-iel- j . den and ilii'.ieuit complications which a war up- ; ' on the ocean is apt ! precipitate upon ttie ve-- i j sew. both commen-iaiani! national, and upon the consular oliicers of other powers, calls for tliede- I ' liuition of toeir relations to the parties to the i 'coldest. Considered us a question oi expediiMi-j J cv, 1 regard the accordance oi belligerent rights ; ' still to be as unwise and premature as 1 regard it j J to be at present indefen-ible as a measure of I j right. i-iueii recognition omaus upon me j countrv according the lights which How 1 from "it dillicult and complicated duties ami requires tae action irom uie comenuing par ties of the strict observance of their rights and obligation. It confers the right of search upon the burn seas by vessels of both parties; it would supervision reeogni.-d by our treaty of 17'.C over our commerce on tae high seas, a very large part of which iu its trade between the Alantic and (Julf States and between all of them am! the states upon the l'ae;iic pas.-es through the waters which wa.-h the .-li ne- id Cuba. The exercise of this supposition could scarcely lai! to lead, if not to abi:-e- certainly to collision perilous to tiie peaceful relations of ttie trto t,tes. Tnere can be little doubt to what re sult such buncrvision would heiore long draw i this Nation. It Would be unworthy of the I ait- . I ed -tales to in'iug.irate the possibilities of biich I revolt by measures of (piestmnable ngut or ex- j pe lien-y or by any iiiili-creiion. Apart from j I anv ipjestionof theoretical right, i am sati-tieil I that while the accordance of i.:ligereiit rights to 1,1 -11 'il " them a hope md inducement to protract the -truggle, it would bo but a delusive hope anil would not le move the e il which "mi- (ovei'iimcut and its people a IV xperl Ticiug, but would tll'.tw the ('mted Male-, in' complications which il ha. wailed long -nd .t'read. suffered mil ;h to a u I. I ll" recognition of indepctiilenc" or oi beilig'T encv, being thu-in myjadgmetit equally inad missible, it remain - to c n-i tor what course shall be adopted sho.ild the cot.iliet nt so.m be brought loan end by the aetsoi the parties them selves, and should the evils wiiem re-tt.r then from, alllicnnga.i na.io.is. an.i paiuiu. iu. w.i ' 1 I I'nited .slate.-, ( ntiiim in sucn i-eut aiuoi j opuuo',1 ti'at other u itions will ?be compelled to assume the iv.-pou-ihioiy winch devolves upon ; them, and to seriously consider the only remain- . ing measures possible Mi.idA'no.s ami tvntirvi.Nti ).. j Oit-hw lii.rh'i IIS ill 1 he l.-lT'e-e OVIlMllSfr of W.'ltOCl . . ' j v . . .. . t ... - - - -1 - - separating the island from the peninsula, the want of harniony in I personal .- mjiatny between the inhabitants of the colony and th-. sent thither to rule them, and want ot adaptation of the ancient colonial system of i.urope to the: pre.-eut tunes and to tne ideas which the event of the past century have developed, the contend- ! ing parties appear to have within themselves no J depository oi common couiidcncc to suggest to j them when pas-ion ar.-i excitement nav- iiieir sw.iv and to a-.-ume the pa' t of po ice-makers. In il.i.- I'i'iv in the early days of the c mte.-t the good oilieos ol the ITnoed .--Uites as a niedi'i tor wi re tendered in goo-1 faith, without any sel fish pnrpo-e, in toe interest ot summary and sin cere friendship lor both parties, but were at the tne time declined by Spain, with a declaration, nevertheless, that at a future time they would be indispensable. No intimation has lieen re ceived that in the opinion of spaiit that time has peon reached, and yd the -trite continues with it- dread horrors and nnuries to the inteie-t oi the I'nited states and of other nations. Kaeh j ........ ...... .. -.. . ti. i ..... l.li i.f -iiL- in " i.w if in. If.lltv s.-i-iijs .inn,. . ..j.....-- ... ........-. r..... . ? i i '. .r.... ,i. ...,i,,. .. ...i i j,., . ...m..i,v iw ' ... i . ... t he n alions aim lmeresis oi tiepeiiiieuisou uie I evt. neoof peace in the island; but thev sec j ' , oi -e-.elM..ane :.din-tmenr,. and both I ...'.'., ,i.. r.,ii,..i ot-M-hievi...' ;,v ccce-s ! -s and control the ' orhei- i M.iev ' LIK ouin . I .lot l ! wherebv one party -iiall p .-.-e island to the exclusion ol the thes" circumsttinces the agencies of others, either in meditation or by intervention, seem to be the only alternative 'which must sooner or later be invoked forthe termination of the strife. At the name time, while thus impressed, 1 do not recommend the adoption oi any measure ol in tervention. I shall be ready at all times, and li the equal triend of both par'tie-, to respond to a suggestion that the good offices of the I'mted States will be acceptable in aiding iu bringing about a peace honorable to botn. it 1-, due to Spain, so far as this Government is concerned, that the agency of' a: t.'iird power, to which I have adverted, shall be adopted only as a last expedient. Had it been I the desire of the t'nilcd M ite.- to interfere in the affairs of Cuba, repeated opportunities lo r go do- j ing have been presented within the la-t few I vear.-; and we ha c remained-passive and have j p'-riorme-i '-or whole duty and all international obligations tt) sj,,,iu with friendship, fairness j and fidelity, ami with a spirit of patience ;.iel i forbearance which negatives every possible sug gestion of desire to interfere or to add to tin- diin- , cilties with which she has been surrounded. I he I Government id' .-pain has recently snnmitted to' our Miir -ter at M.".nd certain propos.il which it ' is thought may be found to be the basis, if not of tho actual submission of terms to meet the re quirements of the particular griefs of which this Governm-nt has reit itseii entitled to complain. Th"-e prouoca's have not vet reached me. in tluir full test, "n their arrival ' they will be taken in careful examina tion, and may, I hope, lead to a satisfactory ' adjustment "of .the questions to which they reier, and remove the possibility of future or- currences, such as have given rise to our ju-t ; complaints. It is understood also that renewed i efforts are being made to introduce reforms in the internal administration of the island. 1'er- i Fiiaded, however, th it a proper regard forthe interests of tho I'nited States anil of us citizens , entitled to relief, from the strain to which it has been subjected by the tlilliculti sof the qne-tions : and the wrongs a'nd lo-ses which arise from the ! contest in Cuba, and that the interest ol liu- hn,iitv itself tleniaiul the cessation of the strife j before the whole island shall be laid waste tint! j larger saeritlces ol life be made, I shall leel it ' my duty should my hopes of a satisfactory ad justment and of tlie early restoration of peace i and the removal of luture causes of complaint be unhappily disappointed, to make a further com i munication to Congress at some period not far remote and during the present session, reeom : mending what may then seem to mo to bo neces sary appropriations to Uie favorable considera , tioii ol Congre-s. MLXi.'AX r.o::t::i: TKOt'iii.Tts. The Free Zone, so ctilled, several years since eslablshcd bv the Mexican Government in c.er- that Kepublie I of unarmed and peaceably disposed persons, and in some instances even the I'nited suites Post-offices nnd mail communications have been attacked. Kenewed remonstrances upon this subject have been addressed to the Mexican Government, but without much apparent effect. The military force of this Government disposable for service in that nuartor is unite inadequate to effectually guard tne line, even at those points where the giliUU HIV IIIIC, Ulllll ill HI wet J'UUIIS I""-". incursions are usually made. An experiment of armed' vessel on iliellio Grande for that pur - an soloed the c.irrvmg of arms and ammunition of . - wl i-'i i mhiii-' b't-insn.rte' iioe!v "ti l f,,r,! l,,u xpir.uioii ot the year, tne rresideni i w.iu d iviSK isvvsvio,r it'Si would relea-e tbe narent (iovernment lrom re- c.'ived s i! .-lactor e. n h mv that it won d 0 sponsihiiitv for e.eis done bv the insurgents, and '"praet.caole to ...nnplctc the woiv.it. in th . ' o ! ;...: . ,..,fi, ti.r. h. ev.e-ei-,..i,.. I time ongtii tltv iixod, I issue H pi'.iclamatio!! , a ttvniii. um i. .... ..... ..-..w.....v... , i. i :.t. .........:... pose is on wial, and it is hoped that if not thwarted by the shallowncs- of the river and other natural obstacles, it may materially con tribute to the protection of tin; herdsmen of Texas. Th.- proceedings of the .Joint Commis sion under the convention between the United states and Mexico of the 1th ul'.luiv. l-i;m the -abject of ciaims will soon he brought to a! close, flic re-uliof tluse proceed ing.- wil! then ) be communicated to Congress. j tkins wini .iTiu.i: cm s: ttiKS. j I am happy t" announce that t!c Government i of Venezuela has, upon further e n-iteration , practically abandoned its objection to pay to tlie . I'liiteu states that share ot tlie revenue wimm some vears since it allotted towards tne extin guishment of claim.-of foreigners generally, in I thus 1'econ-idering its determination, that (Jov- j eminent has shown a ju.it sn.-eot self-ivspect j v. hieh cannot tail to relic t eivdit upon it in the i ryes of all disinterested persons elsewhere. It is to be regretted that it- payments on account of claims of citizens of the I 'nitc 1 s;;!ies are suit so meagre in amount, and that tiie stipulations i f ih" treaty in regard to ,-ums to be paid an i the period- when tlie-e payments were to take pJace should have been .-o signally disregarded. Since m la.-t me-sago the exchange has been made of th.' ratification of a treaty ot commerce and navigation with Belgium, and of eonvon tions with the Mexican republic, tor the further extension of the Joint i.'ommi ions respecting claims with the Hawaiian Islands for commer cial reciprocity , and with the Ottoman Kmpire for extradition, all of which have been duly pro claimed. The ( Niurt of Commissioners of Alabama claims has prosecuted its important duties very as-idu-otialy and very satisfactorily. It convened and was organized on the -'id day of duly, 1-71, and bv the term.- of the act under which it was crea ted was to exist for one year from day. The net provided, however, that should it be found im practicable to complete the work of the Court be i dar on the ;st November last, and tiie large , amount of wok w hich lias b-en accomplished. ' Thirteen hundred and eighty-two claims have ! I" en presented, of which os'had been disposed t of at the d tte of the report. 1 recommend the leg ' i.-i ition which may be deemed proper to enable a the Court to complete the wor!; before it. CLAIMS ol-' ALIKNS. I recommend that some suitable provision be made, by tuecreition ol a spc-ial court or by conferring the uccos iry jurisdiction op n some j appr pi iate tribunal for the con-iteration and j determination of the claims.)? Aliens agiinrt tlie j Government of the I nitcd .States wnich have ' arisen within some, rctsonab.e time, or wh"'!i '. may hereafier ;rise, exclu Ii:gal c.aini-barred j by "tieat provisions or i.tmrwi.-e. It has been found in'in.'s-ible to give proper cn-tderatin to j Al,rii i-c,-, ,..ould not tie niosentod to the Intel llll k tlik lll-( II .UI'.ll.MIK lit cmi,,,, organized iiui'suanlto tne provi-iotis , ol the Treaty ot Washington. (irr.v:; nti.KcitAiii mo-vopolii:-. The President recites at -ome length the his tory el the laying of tlie sever il ocean t -it-graph cables connecting this country with Murope, and expresses dissaii-iaetion with the tact, that, although three lines are now n operation, there has been in, reduction m tlie rates charged, as might reasonably have b.-cn expected. Ilere-e-iiiiinen therefore First, No line should tie allowed to iand on the bores of the I'nited State-under the concession from another power which '!.-. not admit the light of any o.her line or lines formed in the fluted states to land and freely connect with and onerafe through laud lines, second, no line siiMiild be a'uowed to land on the shores of the I'nited states which is not by treaty stipulation with the Government trom whose shoves it pro ceeds, or by prohibition in its charter or i.ther-wi-e, to tiie satisfaction of this Govern nent, prohibited from consolidating or amalgamating with anv other cable telegraph line, or com bining ' the rights lor the purpo-c of regulating and maintaining the cost of telegraphic communication. Third, all rights be bound to give precedence in the transmission of the oflicial messages of the .--ernnients of the tw o countries, between which it ii-l n av belaid. 1-otiiiu, a power shouid be reserv- . i;,..mllll ,.,s. ,.:,.,..- eoniointlv or - - - i ,i . ... o,..i; . .., "i.r. - ;. oeach, a.-regar.l., ti e nie--age dispatches fio.u H shore.-, to IlX a limit to the Charges to be maintained for transmission of message.- present this subject to the consideration of Con- gre.-s in the meantime, and unless Congress r . i... 1 1 . I... I I . . t eoj oi wna.u is ju c-'.'iiiuu in i i'v mi, e.n-ieiiii: . .w r ..... i. .T.:...i..t ..: .in; u no . .i ,ll''Vi i . . V . , equivalent to this standard, tho world's recog- nionths from and after -2.1 Jul., last 1 he report , tan,1:ml ei,e).R i. :l commodity mad" through the cl-rk ot the Court, communi- ilkl. tiK. nroducls ol the soil, the surplus seeking cited herewith, .-how s the condition ot the calen- , ., ,:i,...,.i vd.erovert!..e i ., .ten. ..i forit r.w I those claims bv ihe Kxec.n c . p trlmenl of the J- . "";" '" .- ' -m;-" "" Government. ' such a tribunal would afford an Tio1 leg il-tenders won d iiave nb value beyond opportunity to isritish subjects to present their settling present liabilities or properly speak- 1 claims .,n account of ad.- committed ngaitisttheir S "u fin. '1 oy w oi d 1 y oU - ' i-ei'sons ov proi.ertvduri.-g tho Kebeiiion, as a!.-o -"S? :lfur debts were all settled, lhercaie afew I o tho-e suhiects ot Great itriUun, v. bo.-e claims, measures which seem o me important m this ....... t iiiu.-fnim mill w hh'h f irtmi'M!ii to vnnr rni- i . . . .-.. ,if, .! ii iic.inii.oir j i iu ti 1 1 i i . i ii'i : v.-...t .... . ......... . . . ww- OIIICIW le tlireci, l nu.ni iioi oncost- un- , oilIV one, l II11I1K, is me l csioi .luu.i t;t i.iunuo tut of anv tclegraphus cable which complies w itlijfa'and coffee. The duties would mid probably and assents to the points above enumerated, but j $ls)oo.i,(Kj(i to the present amount received for will leel it my tuiy 10 prev.-m.uie lau-iiug oi any which does iitt conform to tiie first and second points a- stilted, and which will not stipulate to llii., Government the precedence m the trans mi. ion of its ollicial messages, and will not en ter into satisfactory arrangements regarding its charges. X ATI KALIZATIOS AN1 KXI'ATKI ation. Among the pressing and important subjects to which, in my opinion, the attention of Congress should be directed, are those in relation to fraud ulent naturaliz ition and expatriation. The I'nited states, with great liberality, oilers its citizenship t all who in good lait'u comply with the requirements of law. Tne-e requirements are as simple and upon as favorable t-Tins to the emigrant as the high privilege t which he is ad fn'ied can or sliould permit. l.ionotpropoeany I additional n ipiireiucnts lo those which tne law now dom.ind.s, but tne very -impurity ami wai.i of necessary formality in our law have matte fraudulent naturalization not infrequent, to the dis-.ieilitan I injury of all honest citizens, wheth er native or naturalized Cases of this character are cnntnvi:.il b -tng brought to the notice of the t.iiverinnent bv our representative- abroad, and also those ol persons resident m other countries. ! i"n inii-ntl r t hose who have remained in tins country long euougn to entuie uiem to no- i CJ ,,n,v en on good testimony are according lo ex con.e naturalized, h-iv" returned to the country , ,itmglawe, b ailidavits ol lictitious or ui.scrup oi their origin, where they re-i-lo, avoiding all t ."l0U" ,.rdons. to have been sustained on small duties to the I nited .states by their absence and atos by tb.-ir absence ami t from all oatns to tlie ity and oi their re-idence l naturalization. It is claiming to be exempt o-niulry of their nativity DV reason hi mvii .m-. .............. due to this Government u.-cii ami to iiie ,ieai mass of naturalized citizens who entirely, both in name ami in iaci, wet omu imz.i.-ii.s uu.- ( lilted t-l:lies, lliai ll.e lll.uo inini,t-"i o.n.i:ii- , -loo of the I'nited states should not be held by; . fraud or derogation of tho law s and of the good I name of every honest citizen The evil has i ' become so great and ot such freiiuent occurrence I that 1 cannot loo strongly recommend that some effecti'.e measures be adopted to provide a ! proper remedy for the vacating of any I records fraudulently obt lined ami of punishing I guillv parties to the transaction. ; in Tins connection I refer also to the miestion : of expatriation. The t mted stale- was tore- vne your auonuo.i. rn-, P I mo-t in holding the right of expatriation, ami 1. The necessity of making $..0,r.OUof the ap was pnncipallv instrumental in overthrowing propriatioii for the sub-isteiiee Department avail th'e doctrine of i-rrintmil allegiance. Congress able betore the beginning of the next li.-cal vetir. ,i i .i. . -. .i.. ... t.-;.. t,. i. ....... I Wif'nmi? this nrovision troons at points .lls.ant. i tional inherent right of all people, but while i li:i CI'lli:!'.!,.!!' li. II l j - V I. ........ a . v.. j.s ...... manv other nations have laws providing what formalities shall be neecssa-ry to work a change of allegiance, the l'nit--d states has enacted the provisions of no law, and has in no respect desig nated how and when expatriation may be accom plished bv its citizens Instances are brought to the attention of the Government where citizens of the I nite l States, here naturalized or native born, have formally become citizen- or subj -cls of foreign powersbut who nevertheless in the absence f any provisions of legislation on these questions, when involved in uiiueui.ies, or wni n I... t,i..t. ii.,..i-..i.t clMmito lilt I'iH ,i.iw JJ. 'CIllS IO l't: I'. ......... V - .... . ........ , of the I'nited state, ami demand the interven-' tion of a Government which they have long since ! abandoned and to wni.ii Mr years they nave ren dered no -ervice nor mm inemeiveD in any way amenable.. In other cases naturalized citizens, lllillie'liaieiv aiier ii;iiiu.ui.;iiioii, iiiie iciiiineii 1 .i" : .r : ,,, ..i,...,,. . -ilin-e their native lands and have there teco.no anwn ' 'V110'1 1 if1 euAgedinbuMdess, ami have accepted offices for the defense; uf 1 h roors '"V. ..!4ff?X i Is ad and engaged in pursuits, content with American ' sive opera timid dint we ca how 1. w .1 1 cituei.;i.rp,an.fliayoeyiiice.l no intent to re- "salde to learn by e con turn to the Ynited stales until called upon to ! struction and applicitioii u iveii a cta. . innuohHTtnllmmnntrv where thev are residing, w ir.-n aionceuiey as.-erj ineir cm w h'.-n at once thev as.-ert their cm- all upon the representatives of the to aid them in their unjust preten- zenship and c; Government to I "., tl...t sions. It is but justice to bona lide citizens t at J no doubt should exist on such questions, : that Congress should determine by enactment of law how expatriation will be accomplished and change of citizenship be established." J also in vite your attention to the necessity ( regulating by law the status (if American women who mar ry foreigners, and of ileitning more fully that of children horn in a foreign country of American parents who may reside abroad; and also of some further provision regulating or giving le gal effect to marriage of American citizens con tracted in foreign countries. The correspond ence submitted herewith shows :i few of the con stantly occurring questions on these points pre sented' to the consideration of the Government. I There are few subjects to engage the attention of (.ongress on which more delicate relations are j depending. I the ti:i:a.-i i:v ir.i,Ai:Ti:.vr. 'I he report of the Secretary of tho Treasury shows the receipts from customs fur the lisitil year ending June ", Is. 1 , to have been $II?J, "ii'J.st: Oil, and for the li-eal vesr ending dune 3 I-7,'to have been $ V7.K7,"tK tr; a decrease for the last li -'Ml year of 3."!i.,i,lll ."I. I re ceipts from internal revenue for the vear ending .iiiii June, 1-71. were f hi, l '.7s; V), and lor tin- year ending 'taili of -inn", were $11'),- h7 ,"(!':; '; increiso, 7, t7,7. s The report also shows a complete hi.-tory of the work of the department for the last year, and contains re commendations for reform and for legislation which I concur in, bus cannot comment on to fuily as 1 should like to do if space would pcr j init but wil! online myself to a few suggestions i which 1 look upon as vital to the be.-l interests j of the whole people coming within the purview 1 of the Treasury 1 mean ; Sl'ItCIi: KKSl'MlTION. Too much stress cannot be laid upon this ques tion, ami I hope Congress may be induced at the earliest day practicable lb in.-iire the consumma tion of the act of the la.-t Congress at its lust ses sion, to bring about specie resumption on ami after the first day of January. 5-7., at furthest. It would be a great blessing" if this could be con summated, even at an earlier day. 2ot5iing seems to ntc more certain titan that a full, healthy and permanent reaction cannoc take place in favor of the industries and financial welfare of the country, until we return to a mea-ure of value- recognized throughout the civilized world. Whiie we use a currency not dor our present .-y-tem we shouid want none nor ! v.ould wo have any. Were it not that customs dues must be paid in coin, and because of the 1 pledge to pay the interest of the puhli.; debt in i coin, the ie"ld ot precious metals would flow out 1 e.- tne percii-t-f or loreign productions and leave the United States hewers of wol and drawers of water, because of wiser legislation on tho subject ol finance by the nations with whom we have dealings. lain not prepared to say tti.it I can suggest the best legislation to se cure the end. Most he irtily conisnended, it will be a source id great gratification to me to beable to approve ain measure of Congress looking ef fectively toward securing resumption. Cn Imii'ed" mil ill .n would probaoly bring about specie payment more speedily tha'n any legisla tion locking to redemption of legal -loaders in sideration: i.LGiSLATio.s i:kcommi:ndi:d. 1. A repeal ot so miicti oi the Iregai-tendcr act as makes the notes receivable for debts con tracted after a date to bo lived in the act itself, so it is not later than the first of January, Is77. We should then have quotations at real values, not lictitious ones; gold would no longer be at a premium, but currency at a di-count; h healthy rcar-tiim would set n at once and with a degree to make tho currency equal to what it purports to be; tin; merchants", manufacturers and trades men of everv calling could do busines on a fair margin of prolit, the money to be received hav- I ing an unvarying value; laborers and all classes who work lor stipulated pay or saiary would receive more benelit from their income, because the extra profits would no longer be charged by the capitalists to compensate lor the ri;k of a downward lluetuation in the value of the currency. g. That Uie Seci eta ry of the Treasury be au thorized to redeem, .-.iy not to exceed .$g,f im),(hx) monthly of legal-tender notes, by issuing in their stead long-term bonds bearing interest at tiie rate of a - i-loo per cent, per annum, of de nominations ranging from J.wto Sl.hiiO each. This would in time reduce the legal-tender notes to a volume that could be kept atlo.tt without de manding redemption in large sums suddenly. :l. 'I hat additional power be given to the secre tary of tlie Treasury to accumulate gold for linal redemption of currency, increasing the revenue, curtailing expenses, or both. It is preferable to do both; anil 1 recommend thata leduelionof ex penditures be made whenever it can ne done witti- out imoairing Government obligations or crip ( nling due execution thereof . om- measure for incica-ingthe revenue audtlie . . ..... i. . ,i... .i... ; imports, anil would in no way increase ine price paid for these articles iy the consumers, i nese irticlesare the products ol countries collecting revenue from exports, and as we, the largest consumers, reduce the duties they proportion ately increase them. With this addition to the revenue manv duties now collected, and which give but an liisigniticant return forthe cost of collection, must be rt mitted, ami lo the direct advantage of consumers alone. 1 would men tion those articles which enter into manufacture of all -oris. Ail duty paid upon such articles go directly to the cost of the article when manufac tured here, and mu-t be paid for by consumers. The duties now only come from the consumer alone, but actus a protection to foreign manufacturer-of the same competing article in our own and tli-tant markets. 1 wiil suggest, or mention, another subject bearing upon the problem of how to enable the secretary 'of the 'lrea.-uvy to accumulate bal ances, it is to devise some better method of ' verilying claims against thu Government than at I present exi-ts through the Court of Claio.s, es pecially tlio-eclainis growing out of the late war. ' Nothing is more cet tarn than that a large percent i.r mounts oassetl and paid are part or I -,vliollv fraudulent, or are far in excess of the real losses sustained. The large amount of loss- f:inn3 ;in,i plantations, are not only far beyond i j.inn3 ;,nil plantations, are not only far beyond jj,,, .,Ur.P,Jbig yield of those places for any one 1 vt..ir )al as 0verv one knows who has experi- ie.IC(.'si, tilling the'soi! and has visited the scenes ...ice ((f the spoliations, are m many instances men; ,lall tiuj individual claimants were ever worth. j,.iiii!mg tiieir personal ami real estate, inere- port of the Attorney-General, which will be sub mitted lo Congress iu an cany ti.iv , nin voiiuun a detailed history of awards made of claims pending of tlie class here refered to. Tilt: AVAK 1 1 1.IVV HTM LNT. The report of the Secretary of War, accompa nying tins message, gives a detailed account of the army operations for the year just passed, ex penses lor maintenance, eic. , wim recouimenna tions lor legislation, to w inch 1 respectfully in - .. .... .- , . from supplies must either go without iikxx, or im existing laws must be violated, it not attended w ill", disproportionate co-t to the Treasury. . His' recommendations of an enactment of a svstem of annuities for families of decease olli e'ers bv voluntary reductions from the monthly pay of'oilicers. This plan is no- attended with burden upon theTreasury, and would lor the tu ture relieve much distress winch every old army oilier has witnessed " the pa-t . in case of oil i cers dving suddenly or being killed, leaving fam ilies without even means of reaching their friends, if fortunate enough to have friends t 'U', '"'i he repeal of the law- abolishing mileage ami a return to the old system. 1 The trial with t irpotoes under the corps of Kngineers, and an appropriation lor the fame, biiould war ever occur between thti United States md anv maritime power, lorpcuoes wui be I A peniianem. organization i .,. j. ii.i 1II....V..V r ......-. j service Corps. Thin service has now become a i t-ci ,VJ'" ,!'" "' ;,, . V,.".. ,,,i,.r tho -ol I necessity ot I,e-V7flT"? dt m-.fv vancemcnt made by the present able m..na nient CONTINUL-D ON SIXTH 1'AUK