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THE COUNTY PAPER.
Hy nOJlYNS A WALIiKlt. RBGON. 't MO President's Message. 2T7.e oVwifo atiil llovu of JlqrtMhtatiut of tht tMltd Stain! An appalling calamity lias befnllcn tho American people slnct tliclr cliofccn Reprcscn 4.iiv iat mrt in ttin halls where toii are cow MWtnUtil. Wc might else recall withnnalloyed Sit the Increased prosperity with Its varied industries have thriven j I e health of lt people has been preserved! It has maintain; d with foreign Government the undisturbed relations of amity and peace. For these manl testations of Ilia favor we owe to Him who holds our destiny In Ills bands the trlbuto of .our grateful heart. . To that mysterious rxerclso of will which has taken from lis tho loved and Illustrious citizen Who was but lately the bead of tho Nation, wo bow In sorrow and submission to tho memory of bis exalted eharactcr, ef Ida nohlo achieve mcntx, and of his patriotic life; will bo treas ured forever nsa sa -red possession of tho whole people. The announcement of Ms death drew from tho foreign govirnmcnts and people, trib utes of sympathy and sorrow, which history will re: oni a signal tokens ot kinship of nations !.. r.ulAr..tlnn r.t Innnbltld. Tllfl ICcllntr of pood will between our government and that Belgians, has declined to act, but I am not, as , of Wat Britain was never mora marked than yet, advls cd of tho action of tho King of Spain, at present. In recognition of this plowing fact. As wc have certain lntcres s In Hip disputed tcr I directed on the occasion of tho lato centennial rltory which ore protected by our Ucay engage- celebration at Yorktown that a salute bo given to the British flag. PAXAMA CANAL. Savo tho correspondence to which 1 shall here after refer iu relation to tho proposed canal across tho Isthmus of I'anama, Htllo has occur red worth mention. In the diplomatic relations of tho countries early in the year thcrortuno Bay claims were satisfactorily settled bvtho British Oovernmcnt paying tho sum of fifteen thousand pounds, most of which has already been distributed na tho terms of settlement, In cluding compensation for tho Injuries suffered by our ilshermcn at Aspe Hay rcqutrcd.Thcrohas occn retained from tlicgrossawurdneumwhlch Is deemed adequate for thoso claims. The par ticipations of Americans In tho exhibition nt Mcfbotimo and Sidney wllUiavo approving men tion In tho reports. Two exhibitions are soon to bo present! d to Congress, and they will dis close the readiness of our countrymen to make successful competition and Intact fields of en terprise. Negotiations for International copyright convention are In hopeful progress. 1OTHAN" The surrender of Sitting Bull and his forco Upou the Canadian frontier has allayed all ap prehension; although bodies of hostile Indians still cross the "border In quest of sustenance. TJnon this nuestlon a correspondence has been onnti pi,..ii nri Tt. i n,i mum, mm iinrtnr standing. Our troop? liavo orders to avoid, meanwhile, all collisions with Indians. TOIIKTOWX CEIXMtATION. The presence nt the Yorktown celebration of tho representatives of the French Repuhllo and descendant sot Lafayette and of his gallant com patriots who were oiir allies In the Revolution, has served to strengthen tho spirit of good will which has always existed between the two nations. m-Mr.TAi.io cosFnncscn. You will bo furnished with tho proceedings of tho bimetalic conference held during tho summer at the city of Paris. No accord was reached, but n valuable Interchange of views was had and the conference will next year lc At tho Electrical Kxhlbltlonandnt the Congress also held nt Paris, this country was creditably represented by eminent specialists who In tlio abscuco of an appropriation generously lent their clllclciit n'd at the instance of tho State Department, while our exhibition In this almost distinctively American Held of achievements, bnvn won several awards and I recommcud that Congress provide for tho payment of tho pcr Boniu expenses lucurred in the public interest iby tho honorary commissioners and delegates. OU NATCKAUZATION LAWS WITH OERMANT. No new requisition respecting tho status of our naturalization laws with Ocrmany have arisen during the year, and causes of com plaint, especially In Alsace nnd Loralnc, bavo practically ceased, through tho liberal action of the Imperial Government In accepting our often expressed views on tho subject of tho application of the treaty of 1S03 to tho lately acquired Uhtncsh provinces, which has received ' -very earnest attention. A dcllultc and lasting agreement on this point is coutldcntly expect ed. Tlio participation -of tlio descendants of Baron Von Steuben In tho YorKtown festivi ties, and th lr subsequent reception by their American kinsmen. 6trlklngly evinced the tlcj of tho good will which unite tho German people with our own.! srAiN. Our Intercourse with Spain ha been friendly An agreement, concluded in February last, Axes a term for the labors for tho Spanish and American claims commission. Tho Spanish government has been requested to pay tlio lato awards of tho commission, mid will, It 1) be lieved, acct do to tho icquc-tas promptly and courteously as on former occasions. By recent legislation, numerous tines havo been imposed upon American shipping In Spanish and Col onial ports for slight irregularities In manl- felt, One cao of hardship Is specially worthy -of attention, Tho bark Mason, bound for .Japan, entered Manila In distress and is there Bought to tie confiscated under fpanlsh rovenuo laws for an alleged shortage In her transhipped cargo; thougheilorts for her relief havo thus far proved unavailing. It Is expected that tho wholo will be adjusted In a friendly spirit. llECirilOCAL cosnoLENCE. Tho Senate resolutions of condolence on tho Czar Alexander Second, wcro appropriate and communicated to tho Russian Government, which, in turn has expressed its sympathy In our1 lato national licroivemeut. It is de sirable that our cordial relations with Russia Bhould be strengthened by proper engagements, .assuring to peaeeful Amo leans who visit tho Empire thu consideration which la duo to them as citizens of friendly States. This Is espec ially needful with respect to Amerlcm wellies Whoso classification with the native Hebrews has evoked energetic remonstrances from this Gov eminent. ITALY Consular agreement with Italy has been eanCllOUCll lulu Jiiuciiliimai, miiiu ,iuio lib I env -conflicts cf Jurisdiction In the caso of crimes on ship board. Several important international conference') havo been hold In Italy during tho year, at tho geographical Congress of Venice, tho Boniface Congress of Milan, anil the Nice Congress of Tu In. This country was repre sented by delegates from branches of tho public service, or by prlvato citizens, duly accredited by It in un honorary capacity. It Is hoped that Congress will give such prominence to the results of their participation as they may seem to deserve,. U. 8. COLBMIUA. PiForceelng tho probable reliance of tho British Government on iho provisions of tho Clayton Bulwer treaty of WO, as affording room for a shwo In the guarantees which the United :8tatcs covenanted with Columbia tour years before, I have not hesitated to supplement tho octlorofmy predecessor by proposing, toller Tdajesty's Guverument tho modification of that Instrument and the abrogation of such clauses thereof as do not comport with tho obli gations of tho United States toward Col umbia, or with the vital needs of tho two friendly parties to tho compact juiiui. Tlio abolltl f oil I.u5,nrlmlni,llnl lnll. of alHdlscrlmlnatlng duties against! Dutch El h Colonial production oJU'Sj from Ho! which are iinporieiugmner been already coiiBlacrcd by that at the present session Conirrei the nmttc iBiiv i e favorably conciuueu. iy of life and property In many ittisy&fh to the hotter pro mcrlcan nilonarles in tue i.m- ndemned murderer oi lliocml- nent missionary, Dr. .has not yet been this Goycrume.it has cd that examplary Justin W. Parsons, executed, although repeatedly demand justice bo douo. WTT7.E11I.ANT. The Swiss government nas solicited tlio good nn I. WTlit The mseciff , Earl "''3 no good jh agentty TattiffT requoVi ,,, oraccs 01 our diplomatic ana consular ; fnr tlin nrntocllrm nt Its citizens ill CO" where it la not itself reDrcsentcd. This reau nas wiiuin proper nmiia necii graiueii. mi agents In Switzerland have been Instructed t protest against the conduit of tho authorities of certain counti lea In permitting tho emigra tion to this country of criminals and other ob jectionable persons. Through tho co-operation ot the Commissioners of Immigration, at New York, several such persons have been sent back by tho steamers which brought them. A contlnuon o of tills course may prove a mora 'effectual remedy than diplomatic remonstrance. ItpUMANIA AND BEHVU. Treaties of commerce und navigation and for tlio regulation of consular privilege, have been concluded with Roumanla and Servla, stuco their admission Into the family of European states. As Is natural with contiguous states qavlug like Institutions and like means of ad Aancement and development, the friendship of the United Slates and Mexico has been con stanlly maintained. The Oovernmcnt has lost no occasion of encouraging the Mexican crov emmrnt to it beneflcl tl rcsluatlon of the mutual advantages which will r. suit from more Intimate commercial Intercourse, and from the opening or uiorini interior oi .Mexico 10 railway enter prlso. I deem It Important that means bo pro vldcd to restrain tho lawlessness unfortunately so common on tho frontier, and to suppress tlio forays of tlio reservation Indians on cither sldo or Iholtio Grande. JEXTlUli AMERICA. Tlio neighboring States of Central America have preserved ntcrral peace, and their out ward relations toward us liavo been thoso of In- ' T,tlciVxP XAS encouranli'C sicns islt Ion to sudor Inate which oro common to them by reason of their geographical rela tions. The boundary disputed between Guate mala and Mexico has afforded this government an opportunity to exercise Its good ofllces for preventing a rupture between these States, and for procuring a peaceful solution of the ques tion. I cherish strong hope, that, In view of our relations of otnltv with Ixith countries, our friendly counsels will prevail. COSTA MCA. Tlio Costa1 Illcan government lately formed an engagement with Columbia, for settling by arbitration, tho boundary question between those countries, provid ing that tho liost of Arhltrrants should be offered successively to tho King of the Del clans the King of Spain, and the Picsldent of the Arircntlne Confederation. The King of the mcntwlthono of tho parties, It Is Important that the arbitration should not! without our consent, ruect our rignts, ana mis government has accordingly thought proper to mako Its views Known totno parties io mo agreement, so as to inumaio tnem 13 me ucigian uovcm mcnt. INTnt-OCCANIO WAT ETl WAT. Tlio question growing out of tho proposed Intcr-occanlc water way, across the Isthmus of Panama, aro of grave national Iinjiortancc. This Government has not been unmindful of tho solemn obligations Imposed upon It by Its compact In l&IO with Columbia as the liule p ndent and sovereign mistress of tho territory crossed by the ennal nnd has sought to render them effective bv fresh engagements wit the Columbian Republic looklnz to practical exe cution of the licgotlallous. I o llil end after they hail reached what npiiearo.l to bo n mutually satisfactorily solution hi re, were met In Colum bla by a disavowal of the powers which Its e.i voy bad assumed, and by n proposal for re newed negotiations on n fortified basis. Meanwhile, this Government learned that Columbia had proposed to tlio Europcmi pow ers to join in a guaran ec of the neutrality of tho proposed Panama Canal, n guarantee which would bo In direct contravention of our obliga tions, asthe sole guarantee of tho Integrity of the Colamblan Territory and of the neutrality of tho canal Itself. My lancntcd predecssor felt it his duty to place before the European powers the reasons which made tlio prior guar antee of tho United States lnillspcnslble, nnd for which tho lutcrjctlon of any forrlgii guar antee uil'iht bo regarded as a superfluous and unfriendly act. 'I int. government sees with great concern tho continuance of tho bostllo relations between Chill, lln Ivla, ami Peru. An early peaeo be tween theso republics Is much to liedefllred. not only that they may tlicmstlvo be saved from further misery and blooodshcd, but. be cause their continued antagonism threatens cotmqitcn::cs which are In my judgment dan gerous to tho Interests of republican gov ernments on this continent, nnd calculated to destroy tho best elements of our free and peaceful civilization, as In tho present excited condition of popular feeling iu theso countries there has been serious misapprehensions of the position of tho United States, aud as separate diplomatic Intercourse with each, through in dependent ministers Is sometimes subject,owlng to the want of prompt reciprocal communica tion to temporary misunderstanding, I havo deemed it judlc Otis at tho present time to send a special envoy, accredited to all and each cf them, aud furnished with general Instructions which will, I trust, cnablo him to bring these powers into friendly relations. VENEZUELA. Tho Government if Venezuela maintains Its attitude of warm friendship, and continues with great rcgul rity its payment of tho monthly qiioU of tlio diplomatic debt. With out suggesting tho direction in which Con gicss should net, I nsk attention to tho pending questions directing the distribution of thu sums thus received. The relations between Venezuela mid France, growing out of tho same debt, have been for somo time past In nn unsatisfactory state, and nn Government, ns tho neighbor and ono of tnn largest of cred itors ot Venezuela has Interposed Itself with the French Government, with tho view of pro ducing a friendly and harmonious adjustment. IIKAZIL. I regret that tho commercial Interests be tween the United States nnd Brazil, from which great advantages were hoped a year ago, have suffered from tho withdrawal of tho American Hues df eoinunmlcitlon between Brazilian ports nnd!our own. Through tho efforts of our Minister-Resident at lliicnoi A res aud thu United States ut Santlaso, n treaty has been concluded between tho Argentine llepublle and Chill, disposing of the long (lending Patugonlan boundary question. It Is u matter of congrat ulation that our Government has been offered tho opportunity of successfully exerting its good Influence lor tho prevention of dlsagreo mcnts between tho republics of tho American continent. CHINA. I nm glad to Inform you that the treaties lately negotiated with China have been duly ratified on both sides, and tho exchango made at tho Peking legation Is nccesajy to carry Us provision Intw effect. Tho prompt nnd friendly spirit with which tho Chinese Govern ment, ut tho 'equestof the United States con ceded tho modltlcutlon ot cxUtlng tieaties, should sceuru careful regard for the liitereets and susceptibilities of the Government In tho ciiuetmcut of'any laws relating to Chinese im migration. OPIUM TII.U1E. Those clauses ot the treaties which forbid tho participation of citizens or vessels In tlio United States In the opium triide will doubtless re ceive your approval and they will attest tlio sincere Interest which our people and tho gov ernment havo In tho commendable efforts of tho Chinese government, to put a stop to this demoralizing and destructive trafllc. In rela tion both to China and Japan, some changes aro dolrable In our present system of consular Jurisdiction. I hopo at some future time to lay before you a schemo for Its Improve ment in uic entire cast. JAFAN. Tim lnlmnotf htu'ffn ntir nunirvnnrl .Tn' ttnuesto bo cordial. I am advised that tho tmperor contemplates tho establishment of a constitutional government, and that ho liasyecomniaiuaiums iu tuo oecretary oi tno already summoned a parliamentary cougresTrenstiiy that provls on bo made for t'jo early for tho purpose of effecting such chance, tiuel7 retirement of tho 6llver certlllcates and that n remarkablo step toward completo asrtmtlatlo wltu tho Western system cannot full to brln japan into cioecr ami more ucncuciai reiatioi shin with ourselves us tho chief metric rawer. A nuestlon has arisen in relation to the exer else in that country of tho judicial functions conferred upon our ministers and consuls. Tho Indictment, trial and conviction In tho consulur court, at Yokohoma, of John Ros, a mcrenant suiunan, on uoaru an American ves sel. ha"v made It necessary for tho Oovornnien to instuuto n careful examination of tlio na- lUTCiailU inulllOUS OI HUB Ull ISU1CUOI1. II lilh Lfcij lloss was rciularlv slilnne.1 nnrtf.r tno na ox tno unitca mates, uut was ny t?Ru a untisu buujcci. my predecessor leit it ins duty to maintain the position that during his service' as a regularly shipped seaman on board au American merchant vessel, (loss was subject to tue laws oi mat service, anu to mo jurisdic tion of tho United States consulate authority. I renew tho recommendation, which has bJn heretofore urged, by tho executtvo upon tlio atteutlon of Congress, that after tho reduction or such amount as may oeiounu una to America: citizens, mo uaiance oi tuo inuemuity i heretoforo obtained from China and Jauai; which are now Jj t'le'-hnndsof tho Statu 01 partmcnt bo .4fnCirto tho Governments o, those cou. tries. IUMU, Tho King of nawali, in the courso of his homeward return after a journey around the worhl. lias lately vlslte.1 this countrv. While our relatlous wl h that kingdom aro trlendly, this agreement has revived with concern the ef forts to seek replenishment of tho dlmtnlsilng pppulrtlon of the Islands from outward sources to a degree which may Impair the uattvo sovereign Independence In which tlio United States was among tho first to testify a lively interest. AUSTllIA AND OTHER GOVERNMENTS, Relations ot unlmpeaclied amity bavo been maintained throughout the year with tho re spective governments of Hungary, Belgium, Austria, Denmark, Ilayti, Para uay, Uiuijuay, Portugal, 8wo en and Norwav, and tils may also bo eal of Grecco and tho Equator although our relations with these states have for somo years been scrverod by tho withdrawal of ap propriations for diplomatic representatives, ut AthcnsVnd Qult'o. It seems expedient to store tuesa missions, even on a redurrd. scale. nnd-Z decidedly recommend such a courso with respect to Kquador, which Is likely, Iu tho near future, to f lay an impoalant part among the nations of thu South Pacific. COIlE Or IXTRltSATIOXALRUI.ES. At Its last extra session. Congress called for tho text of tho Geneva Convention, for tho rcllft of l la wounded In war. I trust tills action foreshadows such Interest In tho subject ns will result In iho adhesion of the United Stale to that humano anil commendable en gagement I Invito your Attention to tho propriety of adopting me new couo ot international nucs ior mo prevention ot collisions on mo nigii ta. a id conforming tho domestic legislation of the United States thereto, so that no con fusion may arise from tho application of con flicting vessels of different nationalities meet ing in tidal waters, Theso international rules d.lTer but sllahtly from our own. They havo Peen ndontfil bv tfcn Navv Denflrtmrnt for f hn govern mcntof tho war ships of tho United states on tho h'gh seas, ana In foreign wateis and through the action of tho State Depart ment in disseminating tho rule i, nrd In ac quainting tho shipmasters with tlio option of conforming to them throughout tlio jurlsillc inioai waters oi tuo united Btatcs, tuey aro now generally known and obeyed. TitAnn nnroias. Tlio 8lato Department still continues to pub lish to tho country tho trade nnd manufactur ing returns received from Its officers abroad. The success of this courso warrants Its continuance, nnd such npprnprla Ions as mav bo rcaulrcl to meet tho rapidly Increasing demand for thoso publications. With special reference to tho Atlanta cotton exposition, the October numlicr of tho reports was devoted to a valuable collection of papers on the cotton gooas traac ot mo worm. ISTEll-JfATIOSAL SASITAIIT CONFEIinXCE. Tho International Sanitary Conference for which In 1870, Congress made provision, assem bled In this city early iu January last, and Its sessions wero prolonged until March, although It reached no specific conclusion affecting tho futuro action of tho participant powers, thu Interchange of views proved to be most valuable. 1 ho full protocol of tho scs slnns have been already presented to tho Senate. As pertinent to the general subject, 1 call your attention tn uio operation ot mo national Uoard of Health, established bv act of Con gress, and approved March M, 1ST0. Its sphere of duty was eularged by tho acts of tiuno mi. in tno samo year, jiy mo last natneu net tho board was required to Institute such means as might bo deemed necessary for pre venting tho Introductl n of contagious or In fectious diseases from foreign countries Into the United Stntes, or from ono State Into an other. The execution of thu rules and regu lations prepared by the Board and approved by my predecessor has done much to iiriest the progress of epidemic disease, and has thus rendered substantial service to tlio nation. Tho International Sanitary Conference to which I havo referred, adopted a form of n bill of health to bo used by all vessels seeking to enter tho ports of tho ecuntrlcs whoso repre sentatives participate In Its deliberations. This form has been prescribed by tho National Board of Health, r.nd Incoiporated with Its rules and regulations which have been approved by mo In pursuance of law. Tlio health o' tho people Is of supreme Importance; all measures look ing to the preservation against the spread of contagious diseases, and to the lucrensc of our sanitary knowledge for such purposes, deserve the attention of congress. the itcroiiT or the secuetaut or the represents In detail n hlshlv satisfactory ex hibit of the state of tho finances nnd thu condi tion of the various branches of the public ser vice administered bv that Denarlincnt. The ordinary resources from all sources for tlio llsciil jearendliigJuuooO, lbSl, were: From customs $lH,ir0,fl7iVO2 From intcnirl roveuuc i;).r,2(H8." fil From public lands S,!Sl,6(l;l.l7 t torn tax on circulation ana ac poslts of National banks From payment of Interest by Ta ctile railway compaulcs From sinking fund for Pacific railroad coiiit antes From customs fees, Unci, penal ties, etc. From fees, consular letters patent and anils From proceo."s of sales of Govern ment property For tho military establishment, 8.110,112.72 810-833.60 SOo.lSO.M 1,225,5U.S0 2,2-14,051.89 2,C2I,740.00 including river anu naruor improvements and nrscimls.. For the naval establishment. In iO,-10VOO.!35 cluding vessels, machinery, and improvements at navy ynrds 15,C5C,(yR.07 For miscellaneous expenditures, Including public bulldlmrs. light-houses aud collecting the revenues For expenditures on account of the Dlstrlctot Columbia For Interest on tho public debt 41,S37,CS0.rt n.M3,!U2 03 6:J,30S17-11.18 tor premiums on nnnus pur chased t.0(V,21S.7S Total ordinary expenditures.... 050,713,887.59 L-avlng a surplus of rovenuo of f KW.UO'J.- 4U4.US, which was nppiitu ni louons: From niolllH on coliiniro ,103,4S5.Cl From revenue of tlio District of Columbia 2.010,109.23 0,200,880.13 Fioin miscellaneous sources Total ordinary receipts $300,782,297.00 The ordinary expenditures for the eamo period were : For civil exi enscs 17,941,177 10 1,09.'1,0.U02 0,1514,101.09 C01O.)0,270.03 rorferelgn Intercourse For Indians For pensions To the redemption of bonds for tno sluicing inii'i Fi actional currency fonho sink ing fund, Loan ot Feb., 1S01, 71,371,200.00 109,001,0.-) 7,418,000,00 2,010,150.00 18,300 00 3 400.00 37,300 00 143,150 000.00 05,015,000.00 83,710,000.00 1,01X1,000.00 1,633,000.00 14,037,023.00 III4US oi IN1, .V20s of 1802. r.-20iof 18(5 1, n-.uj or two, Consols of 1UI5, Consols of 1P07, Coiisoljof 18(58, Loan Vilemnlty stock, Old (Xinaiid compound Interest nmyothcr notes, An .to the lucreose ot cash In tl4 '1 reasury, ' Total, $100,009,401,03 Tho rroulremcnts of the slnklnc fund for Iho year umoiintcd to $9,078,0011,402. and which humtncludeb u balance of $19,317,123.78 not provided for during tho previous llwalyear. The sum of $74,480,201.05 was applied to this fund, which left a dellclt of $10,3(h.873 47. ho iucrease of revenue for 1831, over those of tho previous, year was $29,852,001.10. It Is estima ted that tho receipts durlrg tho present fiscal 'Tear will reach 100,000,000 and tho expend!- ;.:iur$J70,000.000. leavlne a surplus of S1S0. 000,000 appllcidi'o to the i sinking fund and the redemption of tuo public debt. I approve tho the act requiring that Issue bo repealed. Tlioy wero issueu in pursuance or tno policy or tuo government to maintain sbver at near the gold standard, and wcro accordingly made receivable for all customs, taxes and publ c dues. About ixty.six minions ot mem aio now outstanding. uey iormeii an unnecessary audition to tno a per currency, as a sulllclent amount ot men may ue readily huppiica uy tue National m ks ih nccoriiauce wiinmoactor I'euru v20th. 1878. the Treasury department has lonthlv caused nt least two millions In valuo ot silver bullion to be coined into standard ell verdollars. Onohundrcil and two millions of those dollars bavo been already coined, while miy auout tuiriy millions aro in circulation, or the reasons which be sneclfles. I concur ,n tho Pccrctiiry's recommendation that tho roYKionaj coinage oi a uxcu amount eacn ontn, do repealed, anu mat Hereafter only so luclibo cotued as shall bo ncccssarv to ninnlv ho demand. Tho Sccrctarv lulvlses that, tlm :ssuo of gold certificates shall not for the pres et do resumed, anu suggests that tlio national miss may properly ue lorDiiiden uv law to iiro mcir currency, except upon rcasonaolo tlcu ot their Intention bo to do. Such lerr- latlon would seem to be justified bv the recent ct on of certain ba ka on tho occasion refer red to In tho Secretary's report. Of tho fifteen millions of fractional currency still outstanding, only about o ghty thousand I as been redeemed the raat year. The sug gestion that this amount may properly be dropped from the futuro statements of tho public debt seems worthy of approval. So iilso does tho suggestion of tho Secret irv as to tho advisability of releasing tho calendar of tho United States Courts Iu the Southern cits district jf New Vnrk, by tho transfer to another tribunal of the numerous suits thcru pending against the collectors. Cl'bTOU REVENUES. The revenue from customs for the oast fiscal year, was 101,500,700, an Increase of $11,(537,-, 011.42 over that of tho prccccdlngyeart $138,-' 093,502.39 of this amount was col fo, ted at tho port oi we xoik. loivtug (BosT, 1U7.UI, as tno amount collected at all tlio other ports of tho country. Of this sum $47,077.1-17 03 was collected on sugar and molasses; $27,255,021. 78 on wool and Its manufactures; 2l,0S2,531,- 31 on Iron and steel and the manufactures there- oi; iu.u:i!MW3.si on manufactures or silk; tlO.82.1,115.21 on manufactures of cotton, and f u,4iiU,(HS l on wines nnd spirits, making i total rovenuo from theso sources of 13.1.0M.. 720.81. The expenses ot collection for tho past yrnr wcro uu,u.i.o nil increase, over mo preceding year of f387,4l0.04. Notwithstand ing tho Incrcaso In revenue from customs over tnn preceding year, tuo gross v.tlno of tuolm port, irciiniing ireo goois, uccrcaseu over twenty-uvo millions ot dollars. Tlio marked decrcaso was In the valuo of unmanufactured wool, ?I4,(rit.(5.s2, and in that of scrop and pig Iron, 12,810,071. Tho valuo of tho Imports of sugar, on tlio oth'r hand, showed an Incie.iso of 7.4.17,474 ; of steel rails, 4,1115,521 ; of barley, 2,15',20l, and of steel In bars, In gots. etc.. IWUHO. Contrasted with thu Im ports weroas follows: Domestic merchandise, 0 083,025,047; foreign merchandise, 18,151,!RI0. Total, 002,077,0-10. Imports of merchandise, 142,004,023. Exec fs of exports over Imports of merchan dise, 67,712,718. Aggregate of exports and iai- pOrM.f 10,110,4111.74. Comnnred with the Previous venr there was an Incrcaso of V5.73S.OiS In tho valuo of exnons of merchandise, and n decrease of $35)!.'00,lig in mo vaiue ot imports, inu annual nvcragn Increase of Imports of mcrchnndlso over ex ports thereof for ten years previous to Juno fWtli, 1873, was UU,80il,0. But for the last six years thcro has leen an excess of exports over Imports of merchandise amounting to ?1, 1(50,008,103, nn annual nvcragn of $100,778,017. The spcelo valuo of the cx, ports of d mestlc merchandise wns $370.- 010,473 In 1870, and SS1,023,lll7 In 1871, an incrcaso ot $;w,3W,474 or i;j.r per cent. The value of Imports was ?43,0M,403 Iu 1870, and Slfi2,att,tW8 In 1SS1, on incrcaso of $20,078,220, or 20 to 47 tier cent. During each year from 1802 to 18711, inclusive of tho exports of special articles ex ceeded the ImiiortB. The largcstcxcess of such exports over imports was react-ed during tho year 1801, when It amounted to $02,201,029. immuring moycarenuingnunc iiu, isx, mo Imports of enln slid bullion exceeded the ex ports by $715,801,091, and during tho last llscul car tno excess oi imports over cxpons wero 01.109.030. In the last annual report of the Secretary of tho Treasury the attention of Con crest was called to tho fact that $4(59.501.(550 In live per cent, bonds, nnd $202, 173,750 In six per cent, bonds would become redeemable during "")'," mwwMiiii uiu rcinillllil, ill ill CSV uuuil.i ui u iravr null ill lntcrcst. Tho bill for such refdudlmr havlnc failed to lieeomo n law, tho Secretary of tho Treasury In April last notified tho holders of tho $19.,0904(K) ,,1 'per cent bonds then out standing that the bonds would he paid at par on tho first day of July, following, or ttiat they might bo "continued," at the pleasure of thu government, to boar Interest nt the rato of three and one-half per centum per annum. .Under this notlco $7tf,055,150 of the ''tlx icr centum bonds" were continued nt tho lower rate, and $17,033,250 wero redeemed. In the month ot .May a llko notice was given respecting the redemption or continuance of $439,3 It, 350 of tiro per cent, bonds outstanding, and of theso $40 1, 50 (,900 were continued nt three and one-half i cr centum per annum, and $33,330,450 redeemed. Tho six per cent, bonds of tho loan of February, ltMl, nun oi tue war ucnr, amounting to $11,125,800 having matured during tho year, the Secretary nt tho Treasury gave notlco of tils Intention to redeem tho same, and such as have been presented have been paid from tho surplus revenue. There havo also becn,reiliemed, at par, $10,1711,100 of tho three and one-half per cent, "continued'' bonds, making n total of lmnds redeemed, or which have ceased to bear Interest (estimated), during tho yoir, of $123,009,050. The reduction of tho annual Interest on the public debt through theso transactions is ns follows: by reduction of Interest to 3,'if per cent,, $1,017,395,227; by redemption of bonds, $035,231,000; total, $ 1,032,020,225. Tlio ay, ler centum bonds being payable nt the plcasui e of the j'ovcrnment, are available for tho In vest'ieiit of the surplus revenue without the Caymcnt of tho premiums. Unless theso onds can bo refunded at much lower rato of Interest than they now bear, I ngtee with tho Secretary of the Treasury that no legislation respecting them is desirable. It Is a matter ot congratulation that the business of the country has been so prosperous during tho past year ns to yield by taxation a largo sur plus of Incomo to the Government. If tho revenue laws remain unchanged this surplus must, year by year, Increase on account of the reduction of the public debt and its burden of Interest, nnd because nt the rapid Increase of our population. In 1800, just prior to the in Ptltutlon of our International revenue system, our population but slightly exceeded thirty mil lions. By thoicnsusof ISSOIt Is found to ex ceed fifty millions. It Is estimated that even If tho annual receipts and expenditures should continue, as at present, the entire debt would be paid In ten years. In view, however, of the heavy load of taxation which our iieoplo have already borne, wo may well consider whether It is not tho part of wisdom to reduce the reve nues, even If wo delay a little in tho payment of thu debt. It seems to mo that the tlnio has arrived when the pcoplo may utly demand some relief from their present enormous burden, nnd that by duo economy In tho viulous branches of tho public service, this may bo readily afforded. I therefore concur with tho Secretary In recom mending tho abolition of alt Internal revenue taxes, except thoso upon tobacco In its various forms, and upon distilled or fermented liquors, mill except also thu special tax upon tlio manu facturers nnd of dealers In such articles. Tho intention of tint latter tax Is desirable, ns nf fording tho officers of the government n proper supervision of these nrtlcles for the preservation of fraud. I agree with tho Secretary of tho treasury, that tint law Imposing a stamp tax on matchci ami proprietary articles, and placing playing cards, checks and drafts with propri etary articles bo repealed, and tho law also by which banks and bankers are assessed upon their capital and deposits. There seems to bo a general sentiment in favor of tills course. In tho present condition of our revenues tho tax upon deposits is especially unjust. It was never lmpo.-cd In this country until It was demanded by tho necessities of war and was never exacted. I believe even under Its greatest exigencies hankers are required to 6eeure thclrclrenlatlon, by pledging with the Treasurer of tho United States bonds ot the go cral government. The Interest up on theso bonds, which, nt tlio tlmo when tho tax was Imposed, was 0 icr cent., Is now. In most Instances, 3'if per ccr.t., nnd, besides tlio cntlro circulation, wns originally limited by law and no Incrcaso was allowable, when tho existing uanics iriu practicauy a monopoly oi tuo uus incss. There wus forco in tho suggos'lou that for tho franchise to tlio favored grantees tho government might verj properly exact a tax on circulation, but for years the system has been f rco and tho amount of circulation regulated by tho public demand. Tlioretentlon of the tax has been suggested as a means of reimbursing the govcrmm nt for the expense of printlugnnd furnishing tho circulating notes. If the tax should be repealed it would certainly seem prop er to require tho national banks to pay the amount ot such expense to tho Comptroller of the Currency. It Is perhaps doubtful whether tie Immediate reduction of tho rato of taxation upon liquors and tobacco Is advisable, especial ly In view of the drain upon tho Treasury which must attend the payment ot tho arrears of pen sions. A comparison, however, of the amount of taxes collected under the varying rates of taxation which bavo at different times prevailed, suggests tho Intimation that somo deduction may soon bo made without material diminution of the revenue. also need revision, but that a duo regard may bo paid to the conflicting Interests ef our citi zens Important chauges should bo made with caution. If a careful revision cannot buinndo ut tills session, a commission, sueli aswai lately approved by tho Senate and now recommended by the Secretary of the Treasury, would doubt less lighten tho labors of Congress whenever this suujcct shall be brought to Its considera tion. Tho accompanying report of tho Secretary of War, will make known the operations of tho department for tho past year. Ho suggests measures for promoting tlio efficiency of thu army without adding to tho number of Its offi cials, and recommends tho legislation necessary to increaso tho number of enlisted men to thirty thousand, tho maxim allowed by law. This ho deems necessary to main tain qu ctness on our ever shifting frontier to preservo peace and suppress disor der and marauding In new settlements, to pro tect. si ttlers and their property artalnst the In dians, and the Indians against thu encroach ments ot Intruders, and to enable peaceable emigrants to establish homes In tlio most re mote parts of our country, Tho army Is now noccssarlly scattered over such a vast extent of territory that whenever an outbreak occurs ro enforcements must be hurried from many quar ters over great distances and always at heavy cost for transportation ot men, horses, wagons and supplies. I concur in tho recommendation of tho Secretary for Increasing tho'army to tho strength of 30,000 enlisted men. It'appears by tho Sccretarj's report that In the absmcoot disturbance on the frontier tho troops liavo be:n actively employed In collecting Indians bltli pro iuIIi liltnerto iiostuo ami locating mem on mcir proper reservations, that Sllt'ng Bull anil his adherents arc now prisoners at Fort Randall ; that tho Utcshavo been moved to their new reserval'on In Utah; that during the recent outbreak of tha Apaches it was necessary to ro enforcu tho garrisons from Arizona by troops withdrawn from New Mexico, and that some Apaches aro now held ns prisoners for trial, Whllo some have escaped and tho majority of the tribe arc now on their reservation. There Is need of cglslatlon to prevent Interruption upon tho lands set apart for tho Indians. A largo military force, at great expense Is now required to patrol tho boundary lines lictwcen Kansas and tho Indian Territory. The only punish ment that nt present Is inflicted Is tho forcible removal of the Intruder and thu lmHisttlon ot a pecuniary ime, which, in most cases, it is nn po'slhlo to collect There should bo a penalty by Imprisonment In suchcacs. Tlio separate organization of tho signal scr b'co Is urcrcd bv tho Secretary of War. and n full statement of tho advantages of such perma nent organization Is presented In tlio report of tho Chief Signal Officer. A detailed statement of tho usual work performed by tt.o Signal Corps oud tho Wenthtr Bureau la also given In that tcport. I nsk attention to tho statcmints of tho Secretary of War regarding tho requisi tions frequently made by tho Indian llurctu upon tho suhsfstonco department of the armv for tho casual supjiort of bands or tribes ot iimians ior which mo appropriations aruc haustcd. Tlio War Department should not bo left by reason of Inadcquato provision for tho Hunan iiuro in to coniriuute ior mo mainte nance of the Indians. Thcrcnortot the Ch ef hoc necr furnishes n detailed account of otierntlons for the improve ment of rivers and harbors. I commend to your nttention the suggestion rnnt.i tied In this retort In regard to the condition of our fortifi cations, especially our coast ilefenrcs. and rec ommend nn Increaso of the strength of tho en gineer battalion, by which the efficiency of our toriedo system w ould be Improved. I also call your nttention to the remarks upon the Im provement of the South pass of tho Mississippi river, tho proposed free briibzo over the Poto mac river at Georgetown, tho Importance of completing, nt an eirly day, the north wing of tho Department hulldlnr nnd other recommend ations of the Seeretary of War, which np(ear In Ms report. Thu actual expenditures of this in-p.irimc.nl ror me ncai year, ending .iiiuoui'. 18SI. wcro $12,122,201.39. The appropriations for 1SS2 were $ I I.SMl.725.42. Tho estimates for lSS3are$!l,rll,270Pl. Tho report of tho Sccrctarv of tho Navy ex hibits tho condition ot that branch of service and presents valuable suggestions for Its Im provement. I call your especial nttentlou also to the appended reort of tho Advisory Hoard which bo convened to devise suitable measures for Increasing the efficiency of the - navy, anil particularly to rctvort us to tlic clinr- ,;r nti.l lnim .r nt vnssf Is t.iwssiii-v f., nine. It iiiHinn footing commensurate with the t.eces jtles of thu Government. I cannot too strongly urge upon jou my conviction that every con sideration of National sifety, economy and h.nior Imperatively demand a thorough icliab Dilation of our navy. Willi n full appreciation oi tue lact mat n coiupu ncu witn toe suggest ion of the head of the department and of the Advisory itoard must involve a large cxpcniiit uro of tho public moneys, I earnestly recom mend such appropriations as will accomplish, and which seem to bo so desirable. Nothing can be inou Inconsistent with true economy than withholding the means necessary to ac complish the objects entrusted by the Consti tution to tho National I.eglslatu e. Oro of these objects, and one which Is of paramount Importance, Is drafted by our fundamental law to be the provision for tho "common defense." Surely nothing Is mora csfcutlul to the defense of the United States aud all our people than the efficiency of our navy, Wo liavo 'or many years maintained with for dpi governments tun relations of honorable peace, nnd that such relations mav tie perma nent is desired by every patriotic citizen ot this Republic; but If n o read the teaching of histo ry wo shall notforgetth.it In the life of every nation emergencies may arise w hen n resort to arms can only save It from Its dishonor. No danger from nbroad no threatens this K?ople, nor havo wo any cause to distrust tho friendly professions of other governments. But for avoiding nswell as repelling dangers that may threaten In the future, wc must bo prepared to face any policy which wo think wise to adopt. Wo must tie ready to defend our harbors against nggre'slou; to protect by the distribution of our ships of war over tho highways of 'com merce, the varied Interests of foreign trado and tho persons and property of our citizens abroad ; und to maintain cv rywhero the hon or of our Mag and the distinguished Hisltton w.ilch wojnay rightfully claim among tho na tions nf the world. Tho report ot tho Postmaster General Is a gratifying exhibit of the growth and efllcliiicy of the post il service. Tho receipts from post age and other ordinary sources during the past tlseal year wcro $30,489,810.40; tho receipts from the money order business wcro $295,531, 30; making a total of $S0,7S3,397.97. Tho ex penditures for tho fiscal year wcro $09,251,730. 40; tho deficit supplied out of tliogener.il treasury was $2,481,129.35 or 03 per cent, nf thonmount, tho receipts wero $3,409,018 (53 In excess of those of tlio previous year, and $4, 505,397.70 III excess of the cstlnuito made two years ago, beforu tho present period of business prosperity had fairly begun. Tho wholo num ber of letters mailed In this country in the last ll-cal year exceeded ono thousand millions. Tlio registry system Is reported to tie in excellent condition, having been remodeled during tho past four years with good results. The amounts of registration fees collected during tho last nscai jcar, ending juuuoU, 1S31, was .11,544,. 310. Tlio entire number of letters nnd pack nccs roistered was 8,3:53,919. of which only 2,001 were destroyed or lo t Iu transit. The operations, of the moiie) order system tire mul tiplying yearly. Under Ihnmpulseof Immigration, of tho 1141111 iiuii-iut'ineiii. wi inu uuniT Dimes anu ter ritories, and the consequent demand for addl tional means of Into'-eommunlcatloii and ex chango ditrlug tlio past year , 333 additional money order offices havo been established. making a total of 5,499 In operation at tho da'o of tho report. During tho year tho domestic money orders aggregated In value, $105,075, 770.35. A modification of thu system sug gested icuucing tuo ices ior mon-y orders not exceeding live dollars, from ten cents to five cents, and iniiKlug tno maximum limit one hundred dollars in place of fifty dollars, and legislation for thu disposition ot unclaimed money outers In the possession of tho Post- ouiee ue partment, is recommended In view or tuo inct mat mcir total vaiuo exceeds 0110 ml lion dollars. Tho attention of Congicss is again pointed to tho subject of establishing nsytieiii 01 savings iii-partmcnts 111 connection with tho Postolllcu Depirtment tho statistics of mall transportation show that during the past vear rsllro.ul routes havo been Increased In length 0,244 miles, and In cost $1,U4,3S2. whllo steamboat routes havo tucu decreased hi length 2,182 miles, and In cost $131,054; the so-called Star Koutcs havo been decreased In length 3, 449 miles, and In co9tf:KVI,lH;ne.urlynll ot tho moro expensive routes have been superceded bv rallio.1 1 service; thocostof the 8tarRouto must decrcaso in tho Western States ond Territories. The Pjstniaster-Geueril, however, calls atten tion to tho constantly Increasing cost of tho railway mall service as a serious difficulty In tho way of maklnc the department self-sustaining. Our postal Intercourse with foreign countries has kept paco with tho growth of tlio domestic service within the" past year. Several countries and colonies havo declared their ad hesion to the postal union. It noiv Includes nil thoso which havo an organized postal service, except Bolivia, Costarica, New Zealand, and tlio British colonies In Australia. As ha been already stated, great reductions havo recently been made iu the expenses of the star route service. Tho Investigations of tho department of jus tice andtho Postofflco department have resulted In tho presentation of Indictments against per sons formerly connected with that service, ac cusing them ot offenses against tho United S'atcs. I bavo enjoined upon tho officials who nro charged with tho conduct of tho cases on thu part of tho government and upon tho cm mtnent counsel who, beforo my accession totho Presidency, wcro called to their assistance, the duty of 1 rosecutlng with tho utmost rigor of tho law, all persons who may be found chargeable with frauds up n the postal service. Iho acting Attorney General calls attention to tho necessity ot modifying tho present system of the courts ot the Unlt.-d States as a neces sity duo to tho largo Incrcaso ot business, especially In tho Supremo Court. Litigation In our Federal tribunals liecamo greatly expanded after tho closo of tho lato war. So long as that expansion might bo at tributablo to tho abnormal couuiiion in which tno community round itseir Immediately nf ter tho return of peaeo, prudence required that 110 change bo mailo In tlio consti tution of our Judicial tribunals, but It has now become apparent that an Immenso Increaso of litigation hasdlrcctlrresultcd from tho wonder ful growth developed by tho country. Thcro Is no ground for belief t at tho business of the United States Courts will bo less in volumo than at present. Indeed, that It Is likely to bo much grcator is generally recognize by tho bench and bar. In view of tho fact thnt Congress has already given much consideration to this sub ject, I make no suggestion as to detail but express hope that your deliberations may result in such legislation as will gtvo early relief to our overburdened courts. , Tho acting Attonioy General also calls atten tion to tho disturbances of the public tranquil ity durlnc this nast vear In tho Territory of Ar izona. A baud ot armed desieradoes, known as "cowhovs." nroliililv numlH!rlnr? from flftv to oro hundred men, cave been cneavod foe moil1'1 !' eo ! ,'ni! ct t ow isu-'iw "i." brutality, which tho local authorltlos havo been uuaho to suppress. The depredations ot thoso "cowboys" have also been extended Into Mexi co, which tho marauders roach from Mio Ari zona frontier with every disposition, to meet the exigencies' of the case. I am embarrassed ny iacK oi authority to ileal with tbcm effectu ally. Tho punishment of crimes committed within Arizona should ordinarily, of course, bo left to tlio Territorial authorties, but It Is worthy of consideration whether tho nets which tenu to (intiroll tlio United Slates with neighboring governments should not lio iicciarea ns crimes ogainsi the United States Homo of tho Incursions alluded to may perhaps bo within tho scope of tho law. Rcvlsc.l si.uuie, section (WW, roriililillng military expo, dltlons or cnttrnrlsca r.irnlnst frfcti.llr Sluti.s. But In view of tho sx'cdy assembling of your mniy, i nayo preierrcii to nwnu such legislation ns In your wisdom tho occasion mav seem to demand. It may perhaps bo thought proper to prov.'do that the setting on fo it within our own territory ot iirlgamlago nnd nrnuil ma rauding expeditions imalnst friendly nations and their citizens shall bo punlslisblo as an ollcnse ngalnst tho United States, I will add that In tho event of a request f nm tho territo rial government for protection by tho United Stntes arxalnst "domestic violence;" this rmv. eminent would bo powerless ti render assist- I nnce. The act of 1T1CS, chapter 30, passed nt a nine wiicii territorial governments cccivcil lit tle nttentlou from Congress, enforced this duty of the United Stntes only ns to State govern ments, tut tho act of 1807, chapter 30. applies also to territories. This law seems to havo re mained In fo co until the revision nf the stat utes when the provision for the territories was dropped. I am not lulvlsed whether the alter ation was Intentional or accidental, but as It seems to mo that the territories should Iks olTo'cJ the rrotcctlon which Is accorded to tho States by tho constitution. I suggest legisla tion to thnt end. 1 1 seems 1 1 me that whatever views may prevail ns to tho policy of recent legislation bv which the army lias ceased to lie it part of tlio posse coniltatus, nn exception might welt ho made for permitting tho military to assist tho civil Terri torial authorities In enforcing the laws of tho United States. Tills use of the army would not ss cm to be w It til ti the nllegcd evil against, which that legislation was aimed. From tho rparsc nessof tho population and other circumstances It is often quite Impossible to summon a civil posso In Place where tho officers of Justice re quire assistance nnd where a military force Is within easy reach. Theieportof tho Secretary ot tho Intel lor with necoinpa ylng documents presents an el.ilHiratu account of tho business of that de partment. A summary of it would bo too extended for this placo. I ask vour intention to tho report Itself. Prominent among tho matters which cnaiicngo tue niicniioii oi con grc-M nt Its prcseut session Is the management It appears from fie report nf the Commls of our Indian affairs. Whllo this quest ion ba , floiicr of Pensions that since IsOO, TsO.Okl nrlo been .1 cause of trouble and embarrassment from the Infancy of tho government, It is but recently that any efforts havo been made for Its solution at once serious, determined, consist- cut ntid promising success. It has been cisler to resort to eonvcnle-t makeshift for tiding over tho temporary difficulties than to grapple with tho great permanent problem, and ac cordingly the easier courso has liecn almost Invariably pur-iicd. It was natural, at a time when the national territory teemed almost Il limitable nnd contained many millions of acres far south of tho borders of civilized settle ments, that 11 policy should havo Ucn Initiated which, more man auuiit. cise, nas nceu me fruitful source of our Indian complications. I refer, of course, to tho policy o dealing with the v.ilous Indian tribes ns separate nationali ties, and of relegating them by treaty stipula tions to tho occupancy of Immense reservations In tlio West, mid of encouraging thorn to live undisturbed by any earnest and well-directed efforts to bring them under the Influences of clvill.itlo-.i. Tlie unsatisfactory results which hao sprung f 1 0111 this policy nro bcomlng ap parent to all. As the while settlement havo crowded the liorders of tho reservation, tho Indlrns, sometimes cont-nttdl,' nnd sometimes niralnst their will, have been transferred toother hunting grounds, from which they h ive again been dislodged whenever their new found homes havo been desired by the adven turous settlers. These removnls and the fron tier colonists by which they havo often been succeeded, have led to frequent nnd disastrous conflicts between the races. It Is profitless to discuss here which of them have been chiefly responsible for tho disturbances whoso recital occupies so largo a spate on tho pages of our history. Wo have to deal with tlio appalling fact that thousands of lives havo been sacri ficed and hundreds of millions ot dollars ex pended In tho nttempt to solve tho Indian problem. It had, until within tho past few years, seemed scarcely nearer h solution than it was half n century ago. The government has, of late, been cautiously but steadily feel ing Its way to the adoption of n po ley which has already produced gratifying results, and which, In my Judgment, is likely If Congress anu mo execuuvu nccoru in its support to rcuevo us ero long irom lies which havo hitherto tho dllllctil-1 beset us. for tho success of tho efforts now making to Introduce among tho Indians tho customs und pursuits of civilized life and gradually to nb-i-orli them Into the mass of our citizens sharing their rights nnd Holding to tliclr rcsponslli'lltles. There is Imperative need for legislative action, and mv suggestions In that respect will be chiefly such ns havo been already called to the attention of Congress, nnd have received to some extent Its consideration. 1st. I recommend tho passagcof nn nct'mak lug tho laws of tho various states and territo ries appllcnblo to the Indian reservations within their borders, and extending the laws of tho State of .rkutisas to tho portion of Indian Ter rltori not occupied by the five civilized tribes. The Indian should receive the protection of the law. He should bo allowed to maintain In court his rights of person mid property. Ho has re peatedly begged for this privilege. Its exercise would lie very valuable In his progress toward civilization. 2d. Of even greater Importance Is the meas ure which has been frequently recommended by my predecessors In office, nnd In furtherance of which several bills have been from time to tlmo Introduced In both houses of Congress. Tlio enactment of a general law permuting tho allotment Iu severalty to such Indians ut least as desire it of n reasonable quantity of land, f eturcd to them by patent, and for their own protection und made alienable from twenty or twenty-live years, is demanded for their present welfare and their permanent, advancement. In return for such considerate action on tho part of tho Ciovernnient there Is reason to bellevo that tho Indians in largo number. would bo perMiadod tosercrthclrtrlb.il relations and to engage at once 111 ugricuiiure. nays w ro over, and that It Is now for their best Interests lo conform their manner ot life to tho new order of things. By no greater Inducement than the assurance ot tho permanent title of the soil can they bo led to engago In t ho occu pation 01 inuiiL' it. 1110 wc i-aiiestcu reports of their Increasing lnterebt In husbandry ius- tlfy tho hopo und belief that tha enactment ot such 11 statute ns I recommend would bo at once attended with gratifying results. A resort to tho nllotmcnt system would havo a direct and powerful Influence In dissolving tho tribal bond which Is a prominent feature of savago life, and which tends to strongly to perpetuate them. I adviso a liberal appropriation for tho sup port of Indian schools, because of my confi dent belief that such a course Is conslctcnt with tho wisest economy. Even among the most uncultivated Indian tribes there is re ported to be n general desire on tho part of tho chiefs and older members foreducntlon of their children. It Is unfortunate, In view of this fact, that during the past few years th' means mat nave occn at tuo command 01 mo interior Department for tho nurnoso of In Ian instruc tion havo proved Inadequate. The success of tho schools which are In operation at Hamp ton, Carlisle and Forest Grove should not only encourage a more generous support of theso Minions, but should prompt ttio establish ment nf others of similar diameter. Thov nro doubtless much more potent for good than tho day schools upon tho reservation, us the pupils aro altogether separated from tho surroundings of their rouirh llfo and brought into constant contact with civilization. There nre many oth er phases ot the subject which uro of great tu- icrcst uut which cannot do inciuucu wuuin the becoming limits ot this communication. They ore discussed ably lutho reports of tho Secretary of the Iut rlor and Commissioner of Indian Affairs. For mane years tho Executive In his annual messago to Congress has refo. redtotlio necessity 01 nuiuKcui. iuiMutuiu lur inu Dujiirc5ioii ui I'oivgamvin tno territories ami especially in Utah. The exlstlnz statnta for tlio punish ment of this odious crime so revotlug tu tho moral and religious sense ot Christianity has bceu persistently and contemptuously violated ever s nco Its enactment In spite of commend amo citorts on tno part 01 me authorities who reniesent the United States In Hint Territory. Tho law basin very few instances been enforced ami ior a causo to wiucn rciercnce win pres ently ba inndo Is practically a dood lcter. The tact milt uuiicrents 01 tno mormon cliurcli which rests upon Polygamy as its corner 6tono, bavo recently been peopling In largo numbers Idaho, Arizona njid otner or our western terri tories, Is well calculated to excite the liveliest Interest and apprehension. Upon Congress and tho Exccutlvo tho duty ot brlncliig to bear ainilnst this barbarous sys tem all thu power which, under tho con-tltu- tlon aim laws, moy can wciu tor its destruc tion. Reference bus already been made to tho obstacles tho United Stntes officers have cu countered In their efforts to punish violators ot law. Prominent among die nhstac'ts Is tho difficulty of procuring loral evidence sufficient to warrant a conviction, even in the case of tho most notorious offcuders. Yorkr attention Is 5 J- callcdo tho decision of tho Supremo Court o tl.o United States, explaining Its judraicnt of Iho icversalof tho caso of Miles, who Lad been rouvlctcd of bigamy In Utah. Tho court re fers to tho fact that tho secrecy attending tho celebration of marriages In that Territory means that proving tlio fact of polygamy I very difficult, and the propriety is suggested of modifying that law of evldeiiro whieh now makes n wife Incompetent tn tcsllfr atralnit im. husband. This suinrestlon Is nnnroveil. I ommctul, also, tha passing of au net providing that In the Territories of these United States, the fact that a woman ha been mairledtoi Person eharired with blramr Imtl disqualify her as a witness upon her trial fir that offense. I further rscomineml WUIoIIa,. by which nny person solemnizing a marrlsgclrt any of thutcrrltoilcs. shall be rouHicd, u.ilor strliucut penalties for neglect or refusal.,) file a certificate of such marriage In tho Su premo Court nf the Territory, iimes Congress mav dcvlso other tirncttenliln mi.nsnr fartl.. vlatlug tho difficulties which have hlthertoi;. tended tho efforts to suppress this Iniquity, nssuro you of my de crmliicd purpose to co operate with you In nny lawful and discreet incisures which may lie proposed to that end. Although our sjstcm of government does not contemplate that tlio Nation should provldoor supjiort a system for tlio educitlon of (mr ,,. pie, no measures cnlctlMtcd to promote that gtlicral Indulgence and virtue upon which tho perpetuity of our Institution so greatly de pends, have ever been reuanled with imlllTi.r. enco by Congress or K.tceuilt e. A Intra twifllntf of the public-domain has been from time totlmo devoted to the promotion of education. Thcro is tow especial occasion wiiy, by setting npart the .proceed of Its sales of public latins or by soma other course, the Government should aid the wor of education. Many who now exercise the right of suffrago aro unable to read the ballot which they cast. Uimiii many who had Just emerged from n condition of slav ery were stlddvnlr devolved tin. ri-srumiinuitins of citizenship In that srtlon of the country un.-.. nii,KMi-iipiiei uj n nr. 1 nave nceu pleased to learn from the report of the of Education that there has U-en lattcrlyi commendable Increaso of Interest ror their In struction. But nil that can be done by local legislation and private go erosltv should be supplemented by such aid ns can be constitu tionally niiordcu ny the national government. I would suggest th.it If any fund lie dedicated tn this purpose It mav lie wlseli-illsirl nt.-Mn tho different States, according to t lie ratio of Illiteracy, ns by that means those locations which nro most In n.-edof such assistance will reap us scp irate in-ncllt. 11111 pension claims nave nceu tiled; 450,019 of these havo been allowed mi l Inscribed on tha pension roll; 72,539 have been rejected anil abandoned; being 13 per cent, of the whole number of claims settled. There are now pending for settlement 2150,55 original pension claims, 25,701 of which were filed prlo- to July 1st. 18S0. These when allntreil will Im-ntt-,. M,T. payment of arrears fromthudatc of discharge In the caso of an Invalid, and from date of death or termination of n prior right in nil other cases. From nil the data obtainable It Is estimated that 15 per cent, of tho number of claims now pending will ho rejected or abaiidoiidd. This would show tho pmtubln rejection of 31,000 cases, and tho probable ml dlttonof 103,0110 claims, all nf which Involve thu payment of arrears of pensions. With tho present force employed, the iminncr of adjudi cations remaining the same, and no new liusl lies intervening, this number of claims, ltl'1,000, could bo acted upon In 11 period of six years, and tiklng January 1, 1S8I, ns a near period from which to estimate tho nvcrago amount of arrears, It Is found that every caso allowed would require for the first payment upon It tho sum of $,350; multiplying tills amount by the wholo number of probable admissions, give $250,000,000 us the sum required for first pay ments. This represents the sum which must be paid upon nil claims which wer lurir, I mcnts July 1. 1SS0, and ro 'due, pending and entitled tu tlio benefits of tho nrrears act. From tills amount ($'i"0,000,000,) must be deducted from $10,000,000 to $15,000,000 for cases where tho claimant Is dying, there Is 110 cr.on who under the law wmld be entitled to such pension, leaves $2X,,000,000 as tho probable amount to lie paid In these estimates. No account has been taken of tho 38,500 cases filed since Juno 30, 18S0, nnd now pending which must receive attention as current business, but which do not Involve payment of any nrrears beyond tho date of tho filing of tho claim. Of this number It Is estimated kO lcr cent, will lie allowed, and It has been stated that with the present force of the pension bureau (075clcrks) it is estimated that It will take six lears to dis pose of the claims now pending. "It is stated by the Commissioner of Pensions, that by nn addition of 150 clerks (Incrcaslm? tlio mlfi7.it. eating forco rather than the mechanical) It Is doubtful If the amount of work eonl.l fm nr. compiisncii so mat meso 0.109 could be acted UMm within two years. Aside from tlio con siderations of Justlco which may be urged for a specilv settlement of tho claims now 011 the Hies of the pension office, It is no less Imortant on tho score of economy, Inasmuch 11 fully one third of tho clerical force of the office Is now wholly oMiiplcd Iu giving attention to corres pondence with thousands of claimants wboso cases have been on lllo for tho past eighteen years. The fact that a sum so vast may bo ex pended by th government to meet demands for arrears of pensions Is au admonition to Congress Mid tho Kxeetlvo to give cautious consideration to any similar project In tho fu ture. Tlio great temptation to tho presenta tion of ficticious claims afforded by tnn faot that the nverago sum obtained upon each ap plication Ir $1,300, lends tno to sugvrcst the propriety of making somo special appropria tion for tho prevention of fraud. I advise appropriations for such Intern al Improvements ns the wisdom of Congress may seem to bo of public Importance. Tlio necessity of Improving tho navigation of tho Mlslsslppl river justifies a speci-d allusion to that object. I suggest tho adoption of somo measure for the removal of tho obstructions which now Impede tho navigation of that great channel of commerce. civir, SEItVICE. In my letter accepting tho nomination for viet-i-rcsitient, 1 stutca that Hi my Judgment "no man should bo tho Incumbent of n olllco the duties of which . for any cause, unlit to perform who is lacking In the nblllty, fidelity or Integrity which a proper administration of such office demands. " This sentiment would doubtless meet with general acquiescence, but opinion has been widely divided upon tho wis- mini anu iiraeiicuuillty oi mo vnrl ous reformatory schemes which havo been suggested of certain proposed regulations governing re-appolntmcnts to public office. Thu efficiency of such regulations has tiecn mistrusted mainly bceaueo they liavo seemed to exact more educational and abstract tests as to general business capacity, and even special fitness for the work in hand. It seems to me that the result that should bo applied to tho management of tlio public service may properly conform In tlio main to such as regulate the condition of successful private business. Original appointments should bo based upon ascertained fitness. Tho tenure of tho office should lie stable posi tions of responsibility, and shoti d, so far as practicable, bo filled by the promotion of worthy and efficient officers. Tho nvestlgatlon of all complaints and tho punishment ot all of ficial misconduct, should do prompt nud thor ough. Tlio views expressed In tho foregoing letter are those which will govern my adminis tration of tho executlvo office. These aro doubtless shared by all Intelligent and patriotic citizens, however divergent In their opinion as to tho best methods of nuttlnir them Into nrne. tical operation. For example, tho assertion that original appolntmont should bo based up on ascertained fitness Is not open to dispute, but tho question, "How, In practice, sueli fit ness can bo most effectually nspermlnM.ii Is one which lias for yeurs excited Interest and discussion, tho measure which, with slight var iations In lis detail, has lately liecn urged up on tho attention of Congress, and tho executlvo has its principal feature, tho scliemo of competi tive OYnmlnntfnn. linvi, fnr i-nrrntn .vn,.Hn,.o which need not hero be specified, the plan would glvo admission to tho service only in Its lowest grade, nnd would accordingly demand that all vacancies tn higher posltlonsshould lie filled by IHuiituiiuti ui -iiv. ill uiero itr(icmurs It IS in conformity with the existing civil service sys tem ot Great Britain, and Indeed tho success which has ittcudcd that srstem In .hn rnnntrv of Its birth Is tho strongest argument which has been urged for Its adoption here. Tno fact should not,liowever.be overlooked that there are certain icaiurcs 01 me lunineii system which have not Bcnerully leen received with favor In this country, even among tho forvrw st advo cates of civil service reform. Among them are: First, a tenure of office whl ii Is sub stantially a life tenure; second, a limitation of tho maximum ago nt which an sppltoant can enter the service, whereby all inen In middle llfo or over nro, with some exceptions, rigidly excluded,; third, a retiring allowance upon going out of office. Theso three elements are important factors of tho problem as any of tho dlhcre. To eliminate these from thalEngllsU system would effect a most radical change In Its theory and practice. Tho iivocl nurposo ottbat system Is to Induco educated loung men ot tho countrv to devo-e tiielr Uvea in ni lie employment by an assurance thnt having onco outercd Uion It they ncod never leave It, and that after voluntary retirement they shall bo tho reelp ents of an annual pension, That this systam as au entirety has p-O'cd very suc cessful in Great Uritaln so. ins in lie iat'h ally conceded by thoso who oiieo opposed iu a ion. 1 xtt(CoHtlnui on Stxth J'ajc)