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THE SPIRIT. OF DEMOCRACY.
iie.mii' n. Mr.s-i'.'rHHNiur Proprietor. and 1IF.MIV B. hi:st. jr.ni:. n IV uKfieM. mc 11, 1S!), "A nnlen of hearts, a union of hands, A union that nftnc may ferei; A inion of lake?, n union of land?, .-The American Tnio.n vorkvek." i 1 ; " "T UK UNION AS IT WAS." "I hold that THTsGovrrnmeiit was made )n the WHITK BASIS, by WllITK WEN, for the nKNr.viof WHITE MKN end their POSTKRITV foroTer." Sie je' A . Dougl i. 'j3TAddres8 all letters: ,"Tnt friraT.0F,-D?M0cuAcr," 4" ' 1 1 1 u ootitneio, . . .. 1 Monroe County, u Thc President's Message. -The. ..Message, bf President Gsam is not ,of jnuch. importance, except, ii a Bm,ll wa3" foe Uie . purpose of deciding ten cent bets on' what it wonkhcontiin. Thiyiciciof any one.not an ofGcc-htin- ler.rireten'ding lo'cre what Gk AKt thinks about .s great national question ia deci dedly humoroui. . r CongreBsJ !of conrse, will have the ' courtesy to make the naual "fuss" over it, fcy dividing it around among the Coin miltecs, and printing it in a big, worth less book." ..' i : ; ; ; IT, anybody lief that GRiXT was not iR fayor of paViug' sill the bonds in gold, he has Yost his mvney ; and be will lose sone reorc before the debt ia paid. If "anybody bet that Grant was not a higtjiariir nian, let the deluded chapdia bursdihe sliinplaslcr, and clap his nose to the monopolists' grindstone again. Mofet people will leave the Message hilf'w'adand turn their attention to the funiparsgrapKs of the paper. Til ttlehardxion-McFarland Af fair as u Moral igt ncj. The scaudal-mongert,after feasting on theSiowfe-BTRON enormity, are regaling Ihemsclycs on the 'Eichakdsos -McFak-tAi air;iif ,by way of dessert. This latest lascivious delicacy ra ly be tirlsflv iweudnteil ttina A: I), lllf niRT). "'""J, t-- - soiS'apthpr of Beyond the Mississippi." and , a writer for the Tribune, was shot by a Mr. McFaki.asd for alienating the affections of McFarlaxd's wife. FirnARpsox Biuvived his wounding a few days, but just before his death was married to Mrs. McFakiasd ; the hav ing procured an Indiana divorce. Aftet BicnAKpsoK'sdeath.llENRY Ward Beecher, a bmther of the heroine of the Btros scJndal, preached hi funeral ser mon, eulogizing him.and presenting him and; Mrs. .McFarland Richahdson as nfdcls of Virtus and excellence. Wherenyn the papers generally are scourging BEtcnxn without mercy. j -fiow, itin .oiioiiii may nine uccu promoting social morality by his ser moa;or, perhaps he was wholly wrong, and tle newspapers are promoting social mo'ralit j )j lasbin'g him . ' Our crude notion of that affair is this: Fichahpsmc committed a crime against good! miiTals, and "was shot for it; Mo "FAmtSD committed a crime against the laws of the land,' and. will probably go to j the penitentiary for it. Each will - then hive not much , more or less than his" desserts: 'That far all will be pretty nearly fight ; but there is another feature that is vcjr far .wrong! ' l, , Whencrer a moral delinquency comes to light,involving a spice of lascivious nesB of 'prnrience,' it receives ten limes as much comment as when that element is wanting., ,., Long-haired moral , reformers work it into'lcc,.tiresr sensation preachers mould it into sermons, and newspaper writers inodlef ' it.iinto ' editorials They get up " controversies About , it fur, the sole pur pose" of prolonging .the discussion. , It is. used to illustrate every subject having the slightest analogy to it. It is slewed, fried jossl. and, prrsenled 111 every cojiceijFable state to the public. -Now"! these; "prurient prudes" arc not promoting;mOrality ; they 'are simply in dulging, their," unholy appetites for las civious literature. They.' assume that, when professing to write and speak of decency and virtue, they have a license to use any In lelicatc and unchaste lan guage, short of downright blackguard ism i and as a consequence we have honi- iliea on chastity which would shatnc Don Jca'n. The most insidious and per sercrin enemies of social morals arc I those same self a pi minted doctors of the ' public conscience. ' j - i The Mississippi i:iecllon. i l'artial returns from the Mississippi election indicate the election of Alcoun for. Governor. His opponent Judge Dest, is" a brother in law of General CKAXTjaiid both arc Radicals. Dent claims to lie the more couscrvn five or the two, but as an ofTet fo this he is a 1 carpi t bagg We have not met. any- one, up to this time, who was crying ocr IV result. 3The Governor, of Washington Territory has Mtocl one nuinirca tun. of the Territorial Legislature Hv all incan let us make ,.. . lnm 1 res,-; dent of the t'lilted SHrtos. with power to a . . " . . . . i' commence oaclt . auoiii iw years, jjis , n,Prit a larwr field r f -lemtions . 1 " man uc it'w nas. - j T" "rci amuon More. A regular army of Chambers of Com- ! mercc, Boards of Trade, Commercial ! Convention, and lobbyists generally. has organized to capture from the Na tional Treasury, two hundred million dollars as subsidies for certain lines of ocean vessels. ! It is fairly urged that our commerce is ruined that there is not a line of ves- ; i . .... . ... . ,i . .... jpo.iin i-.uioi.c mat :ne carrying ne.ss of the nticc Unequalled commercial ; fleet ot the Tinted States is restricted ; almost exclusively t- a picayune ,roast - . , , . ... , . ing trade. And even this little business n i-s year by year, becoming less. 1 What is the revnedv lironosed? lsit':ind rpiinii-(ip.(;its 1 rvorv livimr iliinir- . I I w jt remove the causes which produced this national calamity? Not at all. Tha .. , . would reduce the tariff, which is to be kept up even if the whole shipping goes to the bottom of the sea. Xo, we are to apply Gbeeij-t's Patent All Healing Ointment the tariff. The T ribuM for years part has been crowded with certificates of the virtues of this panacea. If a Yankee maker of calicoes lan guishes because his business does not pay him more Until twenty five per cent, profit, Gheelki 's tariff ointment is ap plied, and he becomes happy in the re ceipt of seventy-five per cent profit. It a manufacturer of iron is starving at an annual profit of twenty per cent, the tariff ointment fattens him speedily, with a profit of sixty per cent. And so on through a list of about sixteen hundred different articles. There is a little difficulty in the way of applying the tariff directly to the ship ping business ; but the principle can Jbe applied, and Ihis subsidy dodge is the method of doing it. It Is neither more nor less than to lake two hundred millions of dollars out of the treasury, and bestow that enor mous sum, gratuitously, upon the pro prietors of proposed lines of steamers. This scheme is culled a subsidy. And although it is a kind of bastard baby of the tariff not entitled to bear ils name yet it is to have a share in the inheri tance. In ether words, it contains the trite tariff essence taxing ten branches of healthy national industry to death in order to make one gnarly branch more profitable. For a commerce living on precarious subsidies cannot be otherwise than gnarly and unhealthy. This two hundred million dollars is to betaken out of the treasury. This two hundred million dollars is to be taken out of the people's pockets before it is put into the treasury. Yet all these Chambers of Commerce, Boards of Trade, Commercial Conven tions, Congressmen and lobbyists, know perfectly well that with the tariff we had in I860 wc would speedily have the com merce ot 18G0. ' When will these quacks quit using the tariff to cure the sores that it makes ? Let the Cat Out. Mrs. LivERMORE, one of thj Woman's Rights champions has let the cat out of the bag in excellent style. During the war Bhe had business with Yates, then Governor of Illinoi?. The hackman took her to a liquor saloon,but wc will let the lady tell the story : "He (the hackman ) went in and found the Governor, but told Mrs. Livermore that she must go in, for he could not come out. She went in, and there be hind a green screen, that too many per sons might not sec him, she found tbc Governor of the great State, of Illinois, all in a heap, dead drunk. "At another stage she needed the sig nature of another officer at the seat of war, and could not find him because he was off on one of his customary sprees Afterward wc made that man President 0 the United Stfitct. ' The Message of the latter is published iu this issue of the Spirit- The Two Papers. In thi? issue of the Spirit the reader will find two papers relating to Grant, both of which it is claimed he is the au thor. . One is a letter acknowledging the re ceipt of $105,000 from the Bondholders of New York. .- ; In the Message will be found a second acknowledgement in the way of favoring the payment of the bonds of his con: triubtorsin gold. ' ' Bcttekfield received the appointment of Assistant Treasurer for his work ; but was lately removed for conniving with the gold gamblers of Well street. Grant was alleged to be implicated in the same transactions. -'; jtirActing uuder the sweeping sug gestion of Grant, Senator Morton in troduced a bill in the Senate to provide for the reconstruction of Georgia. ! Georgia's Senators and Representa tives were admitted last winter, but the State is not working for Radicalism.hcncc must be reconstructed. ; jC3TTn a recent letter to the Enquirer, Mack says of the rumored hitentionjof Cabinet officers to resigu : "As soon think of a Maltese kitlen 'resigning' a saucer of new milk because of the religious or political principles of the cook that offered it,as one of Grant's present Cabinet retiring to private life because of any difference of opinion that may arise between them and their chief." itlTln the Senate, on the first day of ihe session, Senator Drake introduced " bill to deprive the U. S. Supreme Court from adjudging any act of Con- rpi,,in0 reconstruction, invalid. 0.. .,, ... fo:rj, APnfn. Will the people quietly submit) jt-iTAn examination of the printing department in the Treasury exhibits a theft by somebody of more than 2,000 000. .-Washington dispatches give Sec rrtary J't.sn credit for writing Grant's message. It is no credit f any person.- j ' jtjf Treasurer Spixnek makes the j statement that four billions of mtnicy t - j , ,., II' I t -.1 .1 have passed through his hands without I defalcation v-t'l r IW...l ' . 0 - . v. 1 . . pises 10 lay a sunmannc reiegrapn came : 'from that couatrv to the United Stales. I pjKSIKXT MESS AG K. W ashing ion. December 0, I SG'.l. To tin: Si-n it; mi.l Hiu-e if Kirnv-iontiitivc-': In coining before you for the first; time as Chief Mairistrate of this "Seat .. . . . .. , r V, ?, . ..... ' , '. . ... ... i i'v. I'm ii ni4iii i i inn v. ii joy. e are blessed with peac at hvnie. J . .., !. ... I and are without cutanghiis aU:)necs i "''"'ad t" h.rbode trouble : with a tern- j i rory unsurpassed m tcitiiity ; o .in .in..!.,. i Cllllrll t() t!l4 Mbllllilrlllt lf llVC ; hun.lred iniHi.ns ,.f 1 i.le.and abound 1 ing in every variety of us'-ful minerals. : i" fpiantity suHicieut to supply IliC worhl , 1 f"r "cucralions ; wi,h exuberant tTi.ps; : : with a variety of climate adapted t the ! . , , ,. e . ' . ... lr( action ol everv species ot earths. i-;,.i,.s-.ind nii.vl i. 1 ! i-ki!!'1'1' 1 I .? T O ! with a population of forty millions of Irf" 1'P f; speaking one language. wiiu lacuities lor every mortal to aerpiire 4 ,,- :. :.,f;,.,, ..!.': to none the. avenues to fame, or any blessing of fortune that mar be coveted ; with freedom of the pulpit.t'ne press and the school. With a revenue, flowing in- 1 lo t!i X:il ! mil TrrnQiirv liriml tlii tv. j anirmcilt8 of tlle Government auonovt. Harmony is being rapidly restored with ... in our owu borders. Manufactures hitu ert unknown in 0111 country arc spring ing up in all directions, producing a do gree of rational independence unequalled by that of any other power. These bles sings, arid countless others, arc entrust ed to your card and more for safe keep ing for the bi'ief period of our tenure-of-ofliCe. In a short time we must each of 113 return to the. ranks of the people who have conferred upon us our honors, nnd account to them for our stewardship. I earnestly desire that neither 3'ou or I may be condemned by a free and en lightened constituency, nor by our own Conscience. Emerging fiVnn a rebellion of gigantic magnitude, aided as it wa3 by the sympathy and assistance of 11a tions with which we were at peace; elev en States of the Union were four years ago left without legal Stato Government ; a debt had been contracted ; American commerce was uiniost driven from the scas? industry of one-halt of the country had been taken from the control of the capitalists-and placed where all labor f ightfiilly belongs, in the keeping of the laborer. The work of restoring State Governments loyal to the Union, of protecting and fostering free labor nud providing means for paying the in terest on the public debt, has received ample attention from Congress. Al though your efforts have uot met with the success in all particulars that might have been desired ; yet, on the whole, they have been more successful than could have been reasonably anticipated Seven States, which passed ordinances of secession, have been fully restored to their places in the Union. The eighth, Georgia, held au election at which she ratified her constitution Republican in form elected a Governor, members of Congress, a State Legislature, and all other oflicers required. The Governor was duly installed, and the LegMature met and performed all the acts therein required of them by the reconstruction acts ot Congress. Subsequently, how ever, in violation of the Constitution, which they had just ratified as since de cided by the Supreme Court of the State, they unseated the colored members of the legislature and admitted to seats some members who arc disqualified by the third clause of the 1-lth Amendment1 to the Constitution, an article, which thej theraselves had contributed to ratify. Under these circumstances I would sub mit to you whether it would not be wise, without delay, to enact a law authorizing the Govirnorof Georgia to convene the members originally elected to the Leg islature, and requiring each member to take the oath prescribed by the rccon struction act, and none to be admitted who are ineligible. Under the third clause , of the Fourteenth Amendmeut the rreedmcn, tinder the protection which they have received, are making rapid progress in learning, and no complaints ai e heard of lack of industry on their part when they receive fair remuneration for their labor. The means provided for paying the iutercst on the public debt, with all oth er expense of the Government, are more than ample. The loss of our commerce is the only result of the late rebellion which has not received sufficient atten tion from vou. To this subject I call your earnest attention. I will now sug gest plans by which thi3 object may be effected, but will, if necessary, make it the subject of a special message during the session of Congress. At the March term, Congress by joint resolution, au thorized the Executive to order an elec tion in the States of Virginia. Mississip pi and Texas, to submit to them the Constitutions which each had previously in convention framed : and to submit the Constitution either entire or in separate parts, to be voted upon, at the discre tion of the "Executive. Under this au thority elections were called. In Virgin ia the election took place on the 6th of July, 1863. The Governor and Lieuten ant Governor elected have been installed ; the Legislature met and did all required by this resolution and by all the recon struction acts of Congress, and abstain ed from all doubtful authority. I recom mend that her Senators and Representa tives, and that the State be fully restored to its place in the family of States. Elec tions were called in Mississippi and Tex as to commence' on the 30th ot Novem her, 18fi9,' and to last two days in Mis sissippi and four days in Texas. The elections have taken place, but the result is not known. It is to be hoped that the acts of the Legislatures of these States, when they meet, will be such as to receive our approval, and thus close the work of reconstruction. Among the evils growing out of the rebellion, and not yet referred to, is that of an irredeemable currency. It is au evil which I hope will receive your most earnest attention. It is a duty and one of the highest duties of Government, to secure to their citizens a medium of ex change of fixed, unvarying value. This implies a return to a specie basis, and no substitute for it can be devised. It should be commenced now and reached at the earliest practicable moment con s:stent with the. fair regard for the inter ests of the debitor class. The immedi ate resumption of practical specie pay ment would not be desirable. It would compel the debtor class to pay beyond ' their contracts the premium on gold at j this nation is its own judge when to tic- j is consistent with-the relations , which I the date of their purchase, and would j cord the rights of belligerency, either to wih to have e-Ublished between the bring bankruptcy and ruin to thousands. ; a people struggling to" free themselves j United States-aud Great Britain, I re Fluctuations, however, in the. paper al-! from a government they believe to be ' garded the action of the Senate in re 110 of the measure of all vahies.- gold, is j oppressive, or to independent nations at ! jecting the treaty as wisely taken iu the detrimental lo the interests t.f trade. It 1 war with each other. The United States j interest .of peace, and as a necessary makes the man of business atfe invohin-1 has no disposition to interfere with the step in the direction of a perfect and' tary gambler, for in all sales, when fu I existing relations of Spain to her colo. ! cordial friendship between the two coun-l ture payment is l be made, both parties I nial possessions on this continent. 7 her i tries. A f.eiisitive people, conscious of arc in sppcniniioii aa to what wiU Ip paid a id received. ' . I earnestly' rei'irumcml to you,' then, s,,cl1 legislation as will insure a gradual . : return 10 specie payments, and put an Itlintorll'lti) cfrit 1 ti I t K11 fin,. I 11'it 1, ,11 l.i ll.:ff .v.,,i.nv.,fcv. i,iii. inn i.iniii'Mi., in lili; : , ........,... Tlll. mMh,uU ... f cure these results are as nutiieriiiis as ; . are the sneclilations tin nolif ii-.'il Pi'iinnmi- ' ... - --- - 1 - - - -- - -- , j . -0.6.cr? 1,1C ,atu'r' 1 n,lt ?, , ana mat is to autiioruc th A ... . ireasurv 10 redeem its own paper at .a fried price, ' wr I'?1! w:S!,h"I;l1 frj!" ! 'vulrit.on ad sua. eu. reney mleeinod. ! ,,m" ' , ,i V , , ! sources ol the nation, both developed a.,., ... .l-.!... lV ' ' i en. 1 it 1 ft n 1 met i ill oiivf i 1 1 h ! ioe i , , ' .. T : . .. . 1 tmruen oi taxation man mo cui.en iias widurcd fur x years past, the entire public debt could be paid in ten years, ,,-.. i ,ii . .i .. but it is not. desirable tout the people : sh()l!J ,,e tase(, u, ,,v jt ; ha tii:e Year bv year the ability to nay increases ,.,.:, -,.:,, 1, (!,,. lnir.li-n f int.. ' ' ... est ought to be reduced as rapidly as can be done without the violation of the contract. The public debt is represent ed in a great part by bunds having from ten b forty years to run, bearing inter-' est, at the rate of six per cent, and live cent, respectively. It is optional i with the lovernmenl to pay tneir bonds; i . . 1 1'... .1.. e 1. ' i at any penon nr.cr me c. pi ration 01 me ! last time mentioned upni Hie lace, j 11 time has already expired when a great part of them may be taken up. The time is rapidly approaching when all may be. It, is believed that all which are now due may be replaced by bonds bearing rate of interest not exceeding four and a half per cent. 1 and as rapidly as the remain der becomes due, that they may be re placed in the same way. To accomplish this it may be necessary to authorize the interest to be paid at either three or four of the. money centers of Europe, or by any Assistant Treasurer of the United Stii'.es, at the option of holders of bonds. I suggest this subject for the considera tion of Congress. Also simultaneously with this, the propriety of redeeming our currency as before suggested at its market value ; at the lime the law goes into effect, increasing the rate at which currency will be bought and sold from day to day or week to week ; at the bamc rate of interest as the Government pays upon it? bonds. The subject of tariff, and interest taxation will necessarily re ceive your attention. The revenues of the country arc greater than the require ments, and may, with safety, be reduced, but as the funding of the debt in a four or a four and a half p?r cent, would re duce the annual current expense largely, thus, after funding, justifying a greater reduction of taxation than would be now expedient, I suggest that a posteponc mcnt of this question until the next meeting of Congress. It may be advi sable to modify taxation and the tariff, in instances where unjust or burdensome discriminations are made by the present laws, but a general revision of the laws regulating this subject, I recommend the p )stponemen!i of for the present, and also suggest the renewal of the tax on incomes, but at a reduced rate, say of three per cent., and this tax to expire in three years. With the funding of the national debt, as suggested, I feel safe in Bffying that the taxes and revenue from imports may bo reduced safely from sixty to eighty millions per annum at once, and still further reduced from year to year, as the resources of the country arc developcl. The report of the Secretary of the Treasury shows the receipts of the Gov ernment, for the fiscal year ending June 30, 1869, to be 83709-13,747; and the expenses, including interest, bounties, etc., 83-21,490.507 The estimates for the ens.iing year arc more favorable to the Government, and will, no doubt, show large decreases of the public debt. The receipts in the Treasury beyond ex penditures, have exceeded the amount necessary to' place to the credit of the Sinking Fund, as provided by law. To lock up the surplus in the Treasury, and withhold from circulation, would lead to such a contraction of currency as to cripple trade and seriously , affect the prosocrty of the country. Under these 1 circumstances the Secretary of the Treas ury and myself heartily concurred ia the propriety of using all the surplus cur rency in the Treasury in the purchase, of Government bonds : thus reducing the interest bearing debt of the country ,and of-submitting to Congress the question of the disposition to be made of the bonds so purchased. .The bonds now held by the Treasury amount to about 75,000,000, including those belongin to the Sinking Fund. I recommend that the whole be placed to the. credit of the Sinking Fund. Your attention is re spectfully invited to the recommendation of the Secretary of the Treasury for the creation of the office of Commissioner of Customs of Revenue ; for the increase of the salary to certain classes of offi cials ; and the substitution bf an increas ed national bank circulation to replace the outstanding three per cent., certifi cates, and most especially to his recom mendation for the repeal of laws allow ing Bharcs of lines, penalties, forfeitures, etc. to ofi'icere of the Government or to informers. The office of Commissioner of Internal Revenuo is one of the most arduous and responsible uuder the Gov ernment. It falls but little, if any,shorl o'f a Cabinet position in its important responsibilities. I would ask for it there fore, such legislation as in your judg ment will place the office on a footing of dignity commensurate with its impor tsmce, and with the character and quali fications of the class of men required to fill it properly. As the United States i3 the freest of all the nations, so, too, its people sym pathize with all people struggling for liberty and self government ; but while so empathizing, it is do to our honor that we should abstain from enforcing our views upon unwilling nations, and from taking an interested part, without invitation, in the quarrels between dif ferent nations, or between governments and their subjects. Our cause should al ways bn in conformity with strict justice and law, international and local. Such has been the policy of the Administra tion in dealing with these questions ! For more than a year a valuable prov incu of Spain and a near neighbor of ours, in whom all our people cannot but feel a deep interest, has been struggling for independence and freedom. The people and Government of the United States entertain the same warm feeling and sympathy for the people of Cuba in their pending struggle that they manifes ted throughout the previous si niggles between Spain and former colonies, in behalf of the latter; but the contest at no time assumed the conditions which amount to a war in the senf-e. of interna tional law, or whi'.'h would show the ex istence of a dejftcto political organiza Hon of the insurgents sufficient to justi fy a recognition of belligerency. The principle is maintained, however, that I iKUevr that pi du- time Spam and thp 1 other European powers will find fheir ! interest in terminaiins those- relations ! a id establishing thoit present dependcu-' cms as independent powers members mi; Itllilfl i III I nil lull.-. I III. .-C OCI Itll- ,lcnc5s .-.m 1,.,,. rAnA iL... ! ( t rt f.. ,v. 1 1 ,. i,.i4l...... 'T'L... A ... I to transfer from one Kiiropean nowpr to ' :inot h(iv lVImn thi nrnuini ,4;,.,.,. ,.r ,,. t uuii.i in ltlosc Monies cease, they are to be- i come independent powers, , exercising Jt 1 ... the fiht of choice and cf oclf centred , ,k,,:n,ii":!,it"i ,,!" 'ir-i-un- ddioi.f.iid re.at.ions h other powers, j ! , , V V X , u'Ll w I""1 a SU,P . to bloodshed m Cuba, and in the inter- !T 'WI "'5-' lie, proposed) ie muu jI wnu 4.. I. .... . I- I i c . .a u. cxming coiiiesi to a. termination. Tiio r.o olor not being accepted by Snninonn I.msw it-l,!,.!, I we believed could be received by Cub:i 1 "linn, was withdrawn. It is hor.ed that the 1 good oflicts of the Uniled States may ! ' vet prove idvanlaireons fur the si ft!i- i 1 in. .1.1 nt" tliij 1. ..li.., .. ... t.. the! . I'.' ...III... Ill meanlime a nnndier ofillesal expeditions I against Cuba have been broken up. It! has been the endeavor of the Aduiinis-' tratioii to execute the neutrality laws in j good faith, no matter bow unpleasant! the task, made so by the sutlei ing we I j have endured from a lack of like Willi faith towards v.s by other nations. , - , 1 . 1 1 . . . . . . The was , i niteu states se.moner .va.w. .Major arrested 011 the Inh sees bv fri irate, and t wo passengers a iMlHtnsli taken from it and carried .t; prisoners to Cu! a. Rep resentalions 01 tnese facts were marlei to the Spanish Government as soon ns Olllcial lHIormattun Ol them reached Washington The two pas.-cngers were : now receive from the tariff. Some ar setaf liberty, and the Spanish Govern- j rangement', ; however, for the regulation ment assured the United States that tine i of commercial intercourse between the captain of the frigate, in making the cup-1 United States and the Dominion of Can ture, had been reprimanded for the ii': ! ada mav be desirable, regularity of his conduct, and that the j It having come to my knowledge that Spanish authorities in Cuba would not! a co-operative company, organized under sanction any net that would violate the j Hritish laws, orooo'sed to land in ion the lights or treat with disrespect the sover eignty of this nation. The question of the seizure of the brig Jlary Lowell, atone, 01 the Bahama islands, by Spanish authorities, is more the subject of correspondence between this Government and those of Spain and Great Britain. The- Captltin General of Cuba, about May last issued a proclamation author izing search to be made of vessels on the high sens. Immediate remonstrance wis inado against this, whereupon the ! r'ble policy of Congress on the sub Captain General issued a new pirn-lama-jJPct "s shadowed by the bill which tion. limiting the r slit of search of ves- sels ol the United States, so far as au thorized under the treaty of 1795. This proclamation, however, was immediate lv withdrawn. 1 have always felt. that the most intimate relations s! 11 i ltl)Ml HO cultivate;! between the Republic of the United States and all independent nations on this continent. It 'may be well worth considering whether new treaties be tween the United States and them may be not profitably entered into to secure more intimate relations, friendly, com mercial, and otherwise'. The subject of a canal to connect the Atlantic and Fa cific Oceans through the isthmus of Da rien, is one in which commerce is great ly interested. Instructions have been given to our Minister to the Republic of the United States of Colombia, to en deavor to obtain authority for a survey by this Government, in order to determ ine the practicability of such an under taking, and a charter for the right of way to build, by private' enterprise, ssueh work, if the survey proves it to be prac ticable. In order lo comply with the agreement id' the United States as to a mixed commission at Lima, for the ad justment of claims, it became necessary to send a commissioner to Lima iu Aug ust last. Xo appropriation having been made for this purpose, it is now asked that one be made, covering the par.t and future expenses of the commission. The good offices of the United Slates to bring about a peace between Spain and the South American Republics with which she is at war, having been accept ed by Spain, Peru and Chili, a Congress has been invited to be held in Washing ton during the present winter. A grant has been given to Europeans of an ex clusive l-iiilit of transit over the Tcrrito- iry 01 .Nicaragua to wiucn cosia iica nas given its asseut which, it is alleged, con flicts with the vested rights of the citi zens of the United States. The Depart ment of State lias now this subject under consideration. The Minister of Peru having made representations that there wa3 a state of war between Fern and Spain, and that Spain was constructing in and near New York thirty gunboats, which might be used by Spain in such a way as to relieve the naval force at Cuba, so as to operate against rcru.ordcrs were given to prevent their departure. No further steps having been taken by the representative of the Peruvian Govern ment to prevent the departure of these vessels, and I not feeling authorized to detain the property of a nation with which we are at peace, on a mens Exec utive order, the matter has been referred to the courts lo decide. The conduct of the war between the aliies and the Re public of Paraguay, has made the inter course with that country so difficult that it has been deemed advisable to with draw our representative from there. Towards the close of the last Admin islration a convention was signed at London for the settlement of the out standing claims between Great Britain and the United States, which failed to receive the advice and consent of the Senate to its citilication. The time and the circumstances attending its ratifica tion were un'avorable to its acceptance by the people of the United States, and its provisions were wholly .inadequate for the settlement cf the grave wrongs that had been sustained by the government as well as by its citizens. The injuries resulting to the United Slates by reason of the course adopted by Great Britain during our late civil war, increased the rates of insurance ; in the dimunition of exports and imports ; and other obstruc tions to domestic industry and produc tion ; in ita etlect upon the foreign com merce of. the country ; in the deci ease and transfer to Great Britain of our commercial marine; in the prolongation of the war, and the increased cost, both in treasure and lives, could not be ad justed arid satisfied as ordinary commer cial claims which continually arise be tween m:lions, and yet the convention treated them Mmp'y as such 'ordinary claims, from which they - differ most widely in the gravity of their character and the magnitude of their amount. Great e en as is that, difference, no word was fofind in the treaty, and no inference could be drawn from if, to remove the sense of unfriendliness of the .course of Great Britain in our struggle for exis tence, which had so deeply and irrcsist ably impressed itself upon the people of this country Relieving that a conven tion tlm misconceived in its scopp, and made quiet in its provisions, would not have produced the hearty, cordial settle met of pending questions, . which alone their power, arc more at case, under a rreat wroiv- wholly unatoned, than un der the restraint of a settlement which satisfies neither their ideas of justice nor their crave sense 01 ine gnevanca tnev 11,1 ' 4- ,'.Jl4lii 4. 4 ill. i vji. v ll, 14 "i I nu tru - followed hv stntP of o..W5,. linrn .-nt f .11 nnr I Ua 1'fiior'l l,"1Tl nl fh feeling on both sides which T thoucht not fnvcirnlihi to .-in iin:nrHislr nltnint-it - - at renewed negotiations. 1 accordingly ! so instructed me .Minister ot tne 1 nited . 1 . 1 , !.! W V . I. 'States to Great Britain, and learned that! JJ-AK. i.i '. , I my views in this regard "were "shared bv Her Afcrjcsty's winder.. 1 hope that Hie time mav soon a. rive when the two Uv,.r,.,nia ,.o n..,,.,..;, n,. c-.irt;,,., of this most momentous question with ! a assurance of what is dueio the n land dignity of each : and with the de 4 :"r!.! " 1 ." 1. . 11. .. injuii ,1 1. not on v 10 remue ue 1, j causes of complaint in the past, but to -.:- ih r,.!ifiMiir.n r n 1..-...1 nnnninl r nnblw. Inu- -hi. will nr..vpnt. fnttin. iHHi-.i-,..,,.,,;, i.,.i 1, ., ;,., .,,,,i I UII.VIV ill 1. tlllll II ill I 1 IT .L 11 III uiiu v 1 1 tinned peace arid friendship. This is now the only grave question whieli the Uni ted Slates lias with any foreign nation. The (piestion of -v treaty of recipro city between the United States and the British provinces on this continent, lias not been favorably considered by the i Administration. The ad', .ullages of such j a treaty would be wholly in favor cf the 1 I!iiti-.h provinces, evce':!. in issi'ih.a few , 1 ii.:ir(.fi in tli( irn.if hi-fwi r';-. t!,r tr.-A 1 ' 1 1 1 .' ' I sections. Xo citizen of the United States I would be benefited by reciprocity. Our interna! taxation would prove a protec- Uon to the Ihilish produccr,almost equal to flip m-ntm tlmi v,h-h our iiv-m-l-u-hiri"! t inted Mates and to operate there a sub- marine cable under . a concession from his Majesty, the Emperor of the French, 1 ot an exclusive right for twenty years i of telegraphic communication between the shores of Frauce and the United States, with the very objectional feature of subjecting all messages conveyed thereby to the sovereign and the control of the French Government, I caused the French and British legations at Wash ington to be made acquainted with the i'"" -" This drew from the representatives of the Company an agreement to accept, as the basis of their operations, the provisions of the bill, or of such other enactment Ait tilia unltiitof viilrl'l 1 0 itic:n1 flii. ' Kur.f onuji cu .aiuv tjv j i. o c v 1- ring tne approaching session 01 Con gress; also use their influence, and se cure from the French government a mod ification of their -concession so as to permit the landing upon French soil of any cable belonging to any company in corporated by the authority ' of the Uni i lctl ;5l!lW5i 01 01 a".y Wtate in tne union ; ( . T ,1 I . . . A . J A A V aim on uieir part not 10 oppose uie cs tabliohmcrtt of any such cable. In con sideration of the agreement I directed the withdrawal of ail opposition by this. the United States authorities, to the working of it until the meeting of Con gress. I regret to say that there has been no modification made in the Company's concession, nor so far a3 I can learn, have they attempted to secure one. Their concession excludes the capital and the citizens of the. United States from competition upon the shore of France. 1 recommend legislation to protect tne ritriiis 01 crazeus 01 mo United States, as well as the dignity and sovereignty of the nation, against such an assumption. T shall also endeavor to secure by nc gotiation an abandonment of the mon opoliesdn ocean. telegraph cables. Cop ies of this correspondence is herewith submitted- The unsettled political condition of oiher countries, less fortunate than our own, sometimes induces their citizens to come to the United States for the sole purpose of becoming naturalized. Hav ing secured this, they return to their na tive country and reside there without de daring their change of allegiance. They accept official positions ot trust and honor which can only be held by citizens of their native land. They journey un der pasports describing them as such citizens, and it is only when civil di cord, after years, perhaps, cf quie', threatens them, or threatens their post tions, or. their property, or . when their native Mates, dralts into its military ser vice, that the fact of their change of al legiance is made known. . They reside permanently from the United States,thcy contribute nothing to its resources, they avoid the duties of its citizenship, and they only make themselves ours by a claim of protection. I have directed diplomatic and consular officers of the L mted States .to scrutenize carefully all such claims to protection. A citizen of the United : States, whether native or adopted, who discharges his duty to his country, is entitled to its complete pro tection. While I have a voice in the di rection of affairs I shall not consent to impair the sacred right by confering it upon fictitious or fraudulent claimants. On the accession of the present Ad ministration, it was found that the Minis ter for North Germany had made prop ositions for negotiations of a convention for the protection of emigrant passen gers, to which no response has been giv en. It was concluded that ,o be effect ual, all the maratime powers engaged in trade should join in such a measure. In vitations have been extended" to the cab inets of London, Paris, Florence, Ber lin, Brusr-els. The Hague, Copenhagen and Stockholm, to empower their repre sentatives at Washington, t simultane ously enter into negotiations,and to con clude with the United States conventions, identical in form, making uniform regu lations a.j to the- reconstruction of the parts of vessels to he devoted to the use of emigrant passengeis ;as to the quality and quantity f if food; as to the medical treatment of the sick, and as to the rules to. be observed during the voyage ; in or der to secure ventilation, to promote health, to prevent intrusion, and to'pro tcct the females, and providing for the establishment of tribunals in. the several countries for enforcing such regulations by summary process. Your attention is respectfully called to the law regula ting the tariff on Russian hemp, and to 1 the question whether to fis the charges on Russian hemp higher than they are fixed upon majiilla is not a violation of our treaty with Russia, placing her pro ducts upon the same footing with those of the least-favored nations. Our manufactures are increasing with wonderful rapidity under tlv new encour agement which they .receive. With the improvements in machinery already ef fected and still increasing, causing ma chinery tt take the place of skilled labor to a large extent, our imports of many articles must fall off largely within a very few years. Fortunatcly.oo, many man ufactures are not confined to a few lo calities as formerly, and it is to bfi hoped will become more and more di!fused,ma king the interest in them equal to all sec tions. They give employment and sup port to hundreds of thousands of people at home, and retsin with U3 the means which otherwise would be ' shipped ahroad. J he extension of railroads in ! Europe and the East is bringing into competition with onr agricultural pro duets like products of other countries.- Self tnteror, if not sejf preservation, therefore, dictates to caution against dis turbing any iudtistrhd interest . of the country. It teaches us also the necessity of lookintr to other markets for the sale 01 our surpiu;.. uur neiguoors outh 01 me l intea cuaies, and Uiina ancr Ja .ijl.t'. -1T1J1 !. - I . ran, recehe our special attention. It will bo tire endeavor of the Adminbtra-; lion to cultivate such relations with nil i these nations as to entitle us to their con fidence, and rriako it their interest as well as ours to establish better eommercial re- ; lations. inrougii tiie agency 01 a more ! eulig!Uen?d policy than that pursued to- wants unuia, largely uue to tne sagacity' and eli'orts of one of our own cliatin-1 guished citizens, the world is about to; commeneoe largely increased relations with that populous and hitherto exclu sive nation. As the United States have j been the initiatory hi the new policy, so! they should be tbc most earnest in show-1 ing their good faith in making it a sue-j cess. In this connection I advise such! 1 .1 , 1 1 , . . . . legislation us will forever preclude the enslavement of the Chinese upon our soil under the name of Coolies, and also prevent American vessels from engaging in the transportation of Coolies to any country .tolerating the system. I also recommend that the mission to China be raised to one of the first c!;'.?s. " On inv assuming the responsibilities of Chief .Magistrate of the United States, it was with tne conviction that three things were- essential to its peace, prosperity and full development: 1st. Among these is strict integrity in fulfilling all our obligations. 2d. To secure protection to the person and property of the citizens of our com mon country wherever he may choose to move, without reference to his -original nativity, religion, color or politics; de manding oT him only obedience to the laws and proper respect for the rights of others. 3d. Union of all of the States, with equal rights, indestructible by any constitutional means. To secure the first of these, Congress has taken the essen tial steps. . 1st Declaring by joint reso lution that the public debt should be paid, principal and interest, in coin. 2d. By providing means for paying ; provid ing the moans, however, could not se cure the object desired, without proper administration of the laws for the col lection of revenues and the economical disbursement of them. To this subject the Administration has most earnestly audrcssed itself, with results, I believe, satisfactorily to the country. There has been 110 hesitation in- changing officials in order to secure efficient execution of the laws, sometimes, loo, where, in a mere parly view, undesirable political results wore likely to follow, for any hes itation in sustaining efficient officials against remonstrances .wholly political. It may be well to mention here embar rassments possible to arise from leaving 011 the statute books the so-called tenure-of-oflice act, and I earnestly recommend their total repeal. It could not have been the intention of the framers of the Constitution, when providing that the appointments made by the President should receive the tyonsent of the Sen atc.that the latter should have the power to retain in office persons placed there by Federal appointments against the will of the President. The law is inconsist ent with a faithful and efficient adminis tration -of the Government. What faith can the Executive put in officials forced upon him, and these too whom he has suspended Tor reason ? How will such officials be likely to serve an Adminis tration which they know does not trust them, for the second is requisite to our growth and prosperity, and a firm but humane administration of existing laws, amended from time to time, as they may prove irelict.ve.or harsh and unnecessary-, are probably all that arerequired,and the third cannot be attended by special legislation, but must be regarded as taxed by the Constitution itself, and gradually acquiesced in by the force of public ooiuion. From the foundation of the Government to the present the raauage raent of the original inhabitants of this continent, the Indians, has been a sub ject of embarrassment and expense, and has been attended with continuous rob beries, murders and wars. From my own experience varan the frontiers, and in the Indian eounlriiv, I do not hold either legislation or the conduct of the whites who come moot in contact with Indians blameless for those hostilities. The past, however, cannot be undone, and the duestion must be met as we now find it. 1 have attempted no policy towards" these wards of the nation. TUcv eauuot be regarded in any other light than as ward3, with fair results so far as tried, and which, I hope,.will be attended ulti mately with crreat success. The sect of Friends - is well known as having suc ceeded in living in peace with the Indi ans in the early settlement of Pennsyl vania, while their white neighbors of other sects in other sections 'were con stantly embroiled. . They were also known for their opposition to all strife, violence and war", and generally noted for their strict integrity and fair dealings. These considerations induced me to give management of a few reservations of Indiaus to them, and to throw the bur den of selection of agents upon the so ciety itself. The result proved satisfac tory. It will be found more fully set forth in the report of the Commissioner of Indian Affairs. - For Superintendents .and Indian Agents, not on reservations, officers of the army were selected. The reasons for this are numerous. When Indian agents arc sent mere, or near there, troops must be sent also. The agent and commander of troops are iu dependent of each other, and are subject to orders from different departments of the Government. The army officer holds a position for life; the agent one at the will of the President. Ihe former is personally jaterested in living in har mony w'ith the Indian, and in the estab lishment of a permanent peace, to the end that some portion of his life may be spent within the limits of a civilized sec tion. The latter has no such personal interest. Another reason is an economic one, and stilt J another hold which the Goyernment.h.isjupon a life officer to se cure a faithful discharge of duties in the carrying. out of the policy. The build ing of railroads and the access thereby given to all agricultural and "mineral re gions cf their country is rapidly bring ing civilized settlements into contact with all the tribes of Indians. ISo mat ter what ought to be the relations be tweensuch settlements, and the aoorigi nes, the fact is, they do not harmonize well, and one or the other has to give away in the end. A system which looks to the exlcrmi nation of a race is too horrible for a na tion to adopt, without entailing upon it self the wrath of all Christendom, and engendering 111 the citizen a disregard for human life and the rights of others dangerous to societj-. I see no substi tute for such a system, except in placing all the Indians -on a large reservation as rapidly as can(be done, and giving them absolute protection therein.; , As soon a they are fitted for it, they should be in duced to take their lands in severally and set up a territorial government for their own protection. -! or full details on Uns j subject I call your special attention to the reports of the Secretary of the Inte- j rior and the Commissioner, of Indian j A flairs. ' I f The report of the Secretary of Warj shows the expenditures of the War De-: partmcnt for the year ending June 30, 1 1 Still, to be 80,614,0.12, of which 23,-j 882,310 was disbursed in the payment of j debts contracted during tlio war, and is i not chargeable to current army expenses, j 'The estimate of 531.521. 0:i "fc the ex peases cf the army for the next fiscal year, is s low -as- it i believed can be relied on. The estimates of bureau offi cers have bee'rf 'carefully pystemized and, reduced wherever it has been deemed practicable. If, however, the condition of the country should be such by the be ginning tA thc-Trext fiscal 'year as to ad mit of a greater concentration of troops, the appropriation asked for will not be expended. The appropriation estimated for iiver. and harbor improvements and for fortir. ' fications arc submitted separately. What--- . ever amount Congress may deem proper to appropriate for these purposes, will . be expended. The recommendation -of -the General j of the Army that appropriations be made for the forts at Boston, Portland, New York, Philadelphia, 2s ew Orleaus and San Francisco, if for no others, is con curred in. ' npn I also ask your special attention to the 1 recommendation of the General . com manding the military division of the Pa cificfor the side of of the seal islands of St. Paul and St. George in the Alaska . Territory, and suggest that it either be complied with, ortiiat legislation be had for the protection ot the seal nsncnes,,., from which a revenue should be derived.. 5 The report of the Secretary of War contains a synopsis of the reports of the heads of bureaus of the commauaers ot , military divisions, and of the districts of Virginia, Mississippi and Texas; and the. report of the General of the . Army in ' . full. The recommendations therein con-. . tained have been well considered, and. , are submitted for your action. I; how- " ever, call special attention to therecom- mendation of the Chief of Ordnance for7, the sale of arsenals and lands no longer j' of use to the government ; also,' to the " recommendation of the Secretary , of War that the act of the 31st of March, , 1869, prohibiting promotions 'and ap-. f poiutments in the Staff Corps of the ar my be repealed. The extent of country to be garrisoned, and the numoer 01 mil itary posts to bo occupied is the same- ' with a reduced army as with a large one, the number of stall' officers required is more dependent upon the latter than the former condition. The report of the , Secretary of the Navy , accompanying this shows the condition of the navy - ; wheu th'13 Administration came into of- Gcc, and the changes made since. . - ' Strenuous efTorts have been made tar'-' place as many vessels in commission, or render them fit for service if required.as ? possible, and to substitute the sail for;' steam while cruising y thus materially re- ,A ducing the expenses of the navy, and . adding greatly to its efficacy. Looking to our future, I recommend a liberate though not 'extravagant policy towards this branch of the public service. -' - The report of the Tostmaster' Gene ral furnishes a clear and comprehensi've'ji. exhibit of the operations of the postal service, and of the financial condition .pf; f the Postoffice Department. The ordinary postal resources for the year ending the 3d of June, 1S69, amount to S1S,344,510, and the expenditures to $23,689,43L showing an excess of "expenditures over 1 receipts of 55,313.620. The excess of. expenditures over , receipts for the' pre'-'.' vious year, amounted to $6,437,902.- The increase of revenue for .1869 over those of 1863, was 82,031,909, a'd the; increase of expenditures was 967,583'. The increased revenue ii 1869 exceeded,, the increased revenue of 1868 by 8796,- 3.iG, and the increased: expenditures, j I I860 was 2,527,570 les3 than the in creased expenditures in 1868, showing by comparison this gratifying feature of , improvemcnt.that the increase of expen ditures over the increase of receipts' in 1S68, was $2,439,535 ;" the increase of receipts . over 1869 was $1,084.371. Yoiir attention is respectfully' called lb recommendations by the ' Postmaster General for authority to change the rate , of compensation to the mam trunk rails I road lines for their services in carrying the mails ; for having post route, maps executed; for reorganizing and increas ing the efficiency of the special agency, service ; for increase of the service on the Pacific, and for establishing mail scr vice under the flag of the Union ;on tho Atlantic ; and most especially do II call -your , attention to the recommendation -for the total abolition of the franking -. privilege. This is an abuse fromwbicu! no one receives a commensurate adyan-,f ; tage. It reduces the receipts for postal ; service from . twenty-five to thirty per" cenlv, and largely increases the service (o be performed. ; . ,.; '; The method by which postage should be fixed upon public matter is set forth y fully in the report of the Postmaster i General. . - f f j The report of the Secretary -of tie In terior shows that the quantity of public land disposed of during the year endng. 30th June. 1869. was 7.466,154 acres' exceeding that of the preceding year by si i-v 1 ri- i a a 1 a A DAf i,uiu,-iuj acres, ui mis amount, ,oj,- 514 acres were sold for cash; and ?,737, 365 acres entered under the homestead laws. The remainder was granted to. aid in the construction of internal, inv, provements, appropriated to , the States as swamp lands, and located as warrants and scrip. The cash receipts from all. sources were $ l,472,886,exceeding those of the preceding year 82,840,140; ,Dur ring the last fiscal year 23,196 names' were added to the pension, rolls, andji,- 876 dropped therefrom; leaving at ita " close 187,963. The amount paid to pen sioners, including the compensation pf,f disbursing agents, was ;$2S,422,884;i4 increase of .$141,192 on. that of the pre.' ceding year. The munificence of Con gress has been conspicuously manifest' in its legislation for the soldiers and sai'- lors who suffered in the recent struggle to maintain that unity of government which makes bs bno people.-."Xhe.addi-tions lo the pension rolls of cacb succe- sivc year since the "conclusion ot hostile, : ities result in a great degree from the re peated amendments of the act ' of the 14th of July, 1863, which extended its provisions. To cases not falling within the original scope the large outlay which is thus occasioned is further increased b. the more liberal allowance bestowed since -that date upon those who . in he line ojT, duty were wholly or permanentlyi.,dif abled. Publio opinion has given an em phatic sanction to these measures of. Congress, and it will be conceded that , no part of our public burden is more cheerfully borne than that which . is im posed by this branch of the service ; if necessitates for the next fiscal year in adr - dition to the amount just chargeable tor tho Navy Pension Fund an appropria tion of 830,000,000. During the year . ending the Sd of September,-18(i9, th Patent Office issued 17,762 patents, ani" its receipts wera 6S6,?,89, being $213.- . 936 more than the' expenditures..- W I would respectfully call your atten tion to the recommendation of the Secr retary of the Interior for uniting the du ties of supervising the education of the e fretdmen with other duties devolving I upon the Commissioner of Education. If it is the deiirc of Congress to maksi the census, which must be taken during the year 1S70, more complete and per feet t him heretofore, I would suggest, early action upon any plan that may be agreed upon As Congress at the lswt session appointed a ommitte to take inf to considerati'-:i such measures as might : ' hi deemed proper in reference to the" m 0