Decatur Democrat, Volume 25, Number 36, Decatur, Adams County, 9 December 1881 — Page 1

VOLUME XXV ’

THE PRESIDENT’S MESSAGE. To the Senate and House of Representatives of the United States: Au appalling calamity has befallen the American people since their chosen representatives last met in the hail where you are now assembled. We might else recall with unalloyed content, the rare prosperity with which throughout the year the nation has been blessed. Its harvests have been plenteous, its varied industries have thriven, the health of its people has been preserved. It has maintained with foreign governments undisturbed relations of amity and peace. For these manifestations of His favor we owe to Him who holds our destiny in His hands the tribute of our grateful devotions. To that mysterious exercise of will which has taken from us the loved and illustrious citizen who was but lately the head of the nation, we bow in sorrow’ and submission. The memory of his exalted character, of his noble achievements and of his patriotic life will be treasured forever as a sacred possession of the whole people. The announcement of his death drew from foreign governments and peoples tributes of sympathy and sorrow which history will record as a signal token of the kinship of nations and the federation of mankind. The feeling of good will between our government and that of Great Britain was nevermore marked than at present. In recognition of this pleasing fact, I directed on the occasion of the centennial celebration at Yorktown that a salute be given to the British flat. Save to the correspondence to.which I shall refer hereafter in relation to the proposed canal Miross the Isthmus of Panama, little has occurred worthy; ot mention in the diplomatic relations of the country. Early in the year the Fortune Bay claims were satisfactorily settled by the British government paying in full the sum of $15,000, most of which has been already distributed. As the terms of the settlement included compensation for injuries suffered by our fishermen at Aspee Bay, there has been retained from the gross aw’ard a sum which is deemed adequate for these claims. The participation of Americans in the exhibitions at Melbourne and I Sydney will be approvingly mentioned in the reports of the two exhibitions soon to be presented to congress. They will disclose the readiness of our countrymen to make successful competition in distant fields and enterprises. The negotiations for a national copyright convention are in hopeful progress. The surrender of Sitting Bull and his force upon the Canadian frontier has allayed all apprehension, although bodies of British Indians still cross the border in quest of sustenance. Upon this subject a correspondence has been opened which promises an adequate understanding. Our troops have orders to avoid meanwhile all collisions with Alien Indians. The presence at the Yorktown celebration of representatives of the French republic and the descendants of Lafayette, and of bis gallant compatriots who were our allies in the revolution, has served to strengthen the spirit of good will which has always existed between the two nations. You will be furnished with the proceedings of the Bi-metalic conference held during the summer at the city of Paris. No accord was reached, but a valuable interchange of views was had, and the conference will next year be renewed. At the electrical exhibition and congress also held at Paris, this country was creditably represented by eminent specialists who, in the absence of an appropriation, generouslylent their efficient aid at the instance of the state department. While our exhibitors in thisalmostdistinctively American field of achievement have won several valuable aw: rds, I recommend that congress provide for the repayment of the personal expenses incurred in the public interest by the ho'-orary commissioners and delegates. ' No new question respecting the status of our naturalized citizens in Germany have arisen during the year, and the causes of complaint, especially in Alsace and Lorraine, have practically ceased, through the liberal action of the imperial government in accepting our often expressed views on the application of the treaty of i 1868 to the lately acquired Rhenish provinces has received very earnest i attention. A definite and lasting agreement on this point is confidently expected. The participation of the 1 descendants of the Baron Steuben at the Yorktown festivities, and their subsequent reeeptioc. by their American kinsmen, striking- i ly evinced the ties of good will which unite the German people aud our own. Our intercourse with Spain has . been friendly. An agreement concluded in February last fixes a term for the labors of the Spanish and American claims commission. The Spanish government has been requested to pay the late awards of the commission and will, it is believed, accede to the request as promptly and 1 courteously as on former occasions. By recent legislation onerous fines have been imposed upon American shipping in Spanish and colonial ports for slight irregularities in manifests One case of hardship is especially worthy of attention. The bark Masonic, bound for Japan, entered Manilla in distress, and is there sought to be confiscated under Spanish revenue laws for an alleged shortage in her transhipped cargo. Though efforts for her relief have thus far proved unavailing, it is expected that the whole matter will be adjusted in a friendly spirit. The series of resolutions of condo- I lence on the assassination of the Czar Alexander were appropriately communicated to the Russian gov- i eminent, which in turn has expressed its sympathy in our late national bereavement. It is desirable that our cordial relations with Russia should tie strengthened by proper engagements, assuring to peaceable Americans who visit the empire the consideration which is due to them as citizens of a friendly state. This is especially needful with respect to American Israelites, whose classifiea- i tioil with the native Hebrews has called forth energetic remonstrances from this government. The abolition of all discriminating duties against the Dutch colonial productions of the Dutch East Indies as were imported hither from Holland, has been already considered by congress. I trust at the present session the matter may be favorably concluded. The insecurity of life and property in many parts of Turkey has given <ise to correspondence w ith the porte looking particularly to the better protection oiAmerican missionaries in the -empire. Thejcondemned murderer of the eminent missionary. Dr. Justin W. Parsons, has not yet been execut-

The Decatur Democrat.

I <‘d, although this government has repeatedly demanded it. The Swiss government has solicited the good offices of our diplomatic and consular agents for the protection of its citizens where it is not itseif represented. This request has within proper limits been granted. Our agents in Switzerland have been instructed to protest against the conduct of the authorities of certain communes in permitting the emigration to this country of criminals and other objectionable persons. Several such persons,through the co-operation of the commissioners of emigration at New York, have been sent back by the steamers which brought them. A continuance of this course may prove a more effectual remedy than diplomatic remonstrances. New tri aties of commerce, navi gation and for the regulation of consular privileges have been concluded with Ron uauia and Servia since their admission into the family of European states as natural with contiguous states having like institutions and like aims of advancement and development. The friendship of the United States and Mexico has teen constantly maintained, the .'government has lost no occasion es encouiaging the Mexican government to a beneficial realization of the mutual advantages which will result from a more intimate commercial intercourse, and from the opening of the rich interior of Mexico to railway enterprise. I deem it important that means be provided to restrain the lawlessness unfortunately too common on the frontier and to suppress the forages of the reservation Ii liana on either side of the Rio Grat'le The neighboring states of Central America have preserved internal peace, and tneir outward relations toward the United States have been those of intimate friendship. There are encouraging signs of their growing disposition to subordinate their local interests to those which are common to them by reason of their geographical relations. The boundary disputes between Guatamala and Mexico have afforded this government an opportunity to exercise its good offices for preventing a rupture between these states and for procuring a peaceful solution of the question. I cherish the strong hope that in view of our relations of amity with both count ries our friendly counsels will be heeded.

The Costa Rican government latelyformed an agreement with Colombia for settling by arbitration the boundary question between those countries, and providing that the post of arbitrator should be off-red successively to the king of the Belgians, the king of Spain and the president of the Argentine Confederation. The king of the Belgians has declined to act, but I am not as yet advised of the action of the king of Spain. As we have certain interests in the disputed territory which are protected by our treaty engagement with one of the parties, it is important that the arbitration should not be without our consent and the affect of our rights, and this government has accordingly thought proper to make its views known to the parties to the agreement, as well as to intimate them to rhe Belgian government. The questions growing out of the proposed inter-oceanic water way across the isthmus of Panama are of grave national importance. This government has not been unmindful of the solemn obligations imposed up.on it by its compact of 1846, with Colombia, as the independent and sovereign mistress of the territorycrossed by the canal, and has song t to render them effective by fresh engagements with the Colombian republic looking to their practical execution. The negotiations to this end, after they had reached what appeared to be a mutual solution were met in Columbia by a disavows! of the powers which its envoyhad assumed, and by a proposal for renewed negotiations on a modified basis. This government learned that Columbia had professed to the European powers to join in a guarantee of neutrality of the proposed Panama canal, a guarantee which would be in direct contravention of our obligation as the sole.guarantee of the integrity of Columbian territory and of the neutrality of the canal itself. My lamented predecessor felt it his duty to place before the European powers the reasons which make the priorguarantee of the United States indispensab'e, and for which the interjection ot any foreign guarantee might be regarded as a superfluous and unfriendly act. Foreseeing the probable reliance of the British gove -ament on the provisions of the Claytou-Bul wer treaty of 1860, as affording in the end room for a share in the guarantees which the United States covenanted with Columbia some years before, I have not hesitated to suppliment the action of my predecessor by proposing to her majesty’s government the modification of that instrument and the abrogation of such clauses thereof as do not comport with the obligations of the United States towards Columbia, or with the needs of the two friendly parties to the compact. This government sees with great concern the continuaneeof the hostile relations between Chili, Bolivia and Peru. An early peace between these republies is much to be desired, not only that they may themselves be spared further misery and bloodshed, but because their continued antagonism threatens consequences which are, in my judgment, dangerous to the interests of republican government on this continent, and calculated to destroy the best elements of our free and peaceful civilization. As in the present excited condition of popular feeling in these countlies there has been serious misapprehensions of the position of the United States, aud as separate diplomatic intercourse with each, through independent ministers, is sometimes subject owing to the want of prompt reciprocal communication to temporary misunderstanding,! have deemed it jiidiciousat the present time to send a special envoy accredited to all and each of them and furnished with general instructions which will, I trust, enable him to briug these powers into friendly relations. The government of Venezuela maintains its attitude of warm friendship, and continues with great regularity its payment of the monthly quota of the debt. Without suggesting the direction in which congress should aet, I call attention to the pending questions affecting the distribution of the sums thus far received. The relations between Venezuela and France, growing out of the same debt, have been for some time past in an unsatisfactory state, and this government, as the neighbor and one of the larges* creditors of Venezuela, has interposed itself since, with reference to the French government, with the view of producing a friendly and honorable adjustment. I regret that the commercial interests between tiie United btates a.id Brazil, from which great advantages

were hoped a year ago. have suffered from the withdrawal of the American lines of communication between Brazilian ports and our own. Through the efforts of our minister resident at Buenos Ayres, and the United States minister at Santiago, a treaty has been concluded between the Argentine Republic and Chili, disposing of the long-pending Patagonian boundary question. It is a matter of congratulation that our government lias been afforded the opportunity of successfully exerting its good influer e for the prevention of disagreements between the republics of the American continent. lam glad to you that the treat,, s lately negotiated with China have l:: en duly ratified on both sides, and the exchange made at Pekin. Legislation is necessary to carry the provisions into effect. The prompt and friendly spirit which the Chinese government at the request of the United States conceded the modification of existing treaties, should secure a careful regard for the in ? - ests and susceptibilities of that government in the enactment of any laws relating to Chinese immigration. Those clauses of the treaties w, ich forbid the participation of citizens or vessels of the Uirted States in the opium trade wil ioubtless receive your approval. They will attest the sincere interest which our people and government feel in the commendable efforts of the Chinese government to put a stop to this demoralizing and destructive traffic. In relation both to China and Japan some changes are desirable in our present system of consular jurisdiction. I hope at some future time to lay before you a scheme for its improvement in the entire east.

The intimacy between our country and Japan, the most advanced of the eastern nations, continues to lx- cordial. lam advised that the emperor contemplates the establishment of a constitutional government, aud that he has already summoned a parliamentary congress for the purpose of effecting the change. Sueh a remarkable step toward complete assimila. tion with the western system cannot fail to bring Japan into closer and more beneficial relations with ourselves, as the chief Pacific power. A question has arisen in relation to the existance in that country and the judicial functions conferred upon our minister and consuls. The indictment, trial and conviction in the consular court at Yokohoma of John Ross,a merchant’s seaman on board an American vessel, have made it necessary for the government to institute a careful examination into the nature and methods of this jurisdiction. It appears that Ross was regularly shipped under the flag of the United States but was by birth a British subject. My predecessor felt it his duty to maintain that during his service as a regularly shipped seaman on board an American merchant vessel, Ross was subject to the laws of that service ami to the jurisdiction of the United States authorities. I renew the recommendation that has been heretofore urged by the executive upon the attention of congress, that after the reduction of such amount as may be due to American cruisers, the balance of the indemnity fund heretofore obtained from Chi a and Japan, and which are now in the hands of the state department, be returned to the governments of those countries.

The king of Hawai, in the course of his homeward return after a journey around the world, has lately visited this country. While our relations with that kingdom are friendly, th's government has viewed with concern the efforts to seek replenishment of the diminishing population of the island from outward sources to a degree which may impair the native sovereignty and independence in which the United States was among the first to testify a lively interest. Relations of unimpaired amity have been maintained throughout the year with the respective governments of Austria, Hungary, Belgium, Denmark, Hayti, Paraguay and Uraguay, Portugal and Sweeden and Norway. This may also be said of Greece ai d Ecquador, although our relations w.i’j those states have for some years been severed by the withdrawal of appropriations for diplomatic representatives at Athens and Quito. It seems expedient to restore those missions even on a reduced scale, and I decidedly recommend such a course with respect to Ecquador, which is ligely within the uear future to play an important part among the nations of the Southern Pacific. At its last session the senate called for the text, of the Geneva convention for the relief of the wounded in war. I trust this action foreshadows sueh interest in the subject as will result in the adhesion of the United States io that humane and commendable engagement. I invite your attention to the pr<priety of the adoption of the new code of international rules for the prevention of collisions on the high seas and of conforming the domestic legislation of the Uuited States thereto, so that no confusion may arise from the application of conflicting rules iu case of different nationalities meeting in tidal wave waters. These international rules differ but slightly from our own. They have been adopted by the navy department for the goveranceof the war ships of the United States on the high seas and in foreign waters, and, through, the action, of the state department in disseminating the rules and iu acquainting shipmasters with the option of conforming to them without the jurisdictional waters of the United States, they are now very generally’ known and obeyed.

The state department still continues to publish to the country the trade and manufacturing reports received from its office s abroad. The success of this course warrants its continuance, and such appropriation as may’ be required to meet the rapidly increasing demand for its use. With special reference to the Atlanta cotton exposition, the October number of the report was devoted to a valuable collection of papers on the cotton goods trade of the world. The international sanitary conference, for which in 1879 congress made provision, assembled in this city early’ in January last, and its sessions were prolonged until March. Although it reached no specific conclusion from the subsequent action of the participating powers, the interchange of views proved to be most valuable. The full protocols of the session have already been presented to the Senate On this general subject I call your attention to the operations of the national board of health established by act of congress, approved March 3, 1879. Its sphere of duty was enlarged by the act of June 2 in the same year. By the last named aet the board was required to institute such measures as might be deerved necessary for preventing the introduction of contagious or infectious diseases from foreign countries into the Unit-

DECATUR, ADAMS COUNTY, INDIANA, FRIDAY, DECEMBER 9, 1881.

1 ed States or from one state into i another. The execution of the rules - and regulations prepared by the board and approved by my predecessor has r done much to arrest the progress of ? epidemic diseases, and has thus reni dered substantial service to the na- » tion. The international sanitary confer- > ence,to which I have referred, adopted f a form of a bill of health to be used l by all vessels seeking to enter the f ports of the countries whose represeni tatives participated in its deliberaI tions. This form has since been pre- - scribed by the national board of health and incorporated by its rules and reg- ■ ulations, which have been approved by me in pursuance of law. The . health of the people is of supreme importance, and all measures looking to - their protection against the spread of contagious diseases and to the increase of our sanitary knowledge for ' such purposes deserve the attention of congress. The report of the secretary of 'he treasury presents in detail a highly satisfactory state of the finances and the condition of the various branches of the pubfic service administered by that department. The ordinary rev- • enues from all sources for the fiscal year ending June 10, 1881, were from customs $198,1,59,676.02; from internal revenue, $135.264,385.51; from public lands, $2,221,863.17; from tax ou circulation and deposits of national banks, $8,116,115.72; from repayment of interest by Pacific railway companies, $810,833.80; from sinking fund for Pacific railway companies, $805,180.54; from customs fees, fines, penalties, <fcc., $122,551.86; from fees, consular, letters patent and lands, $2,244,983.99; from the proceeds of sales of government property, $262,174; from profits on nues of the District of Columbia, $2,016 199.23; from miscellaneous sources, $6,206,880.13. Total ordinary receipts, $3,607,822,929.57. Theordinaryexpenditures for the same period were, for civil expenses, $7,941,177.19; for foreign intercourse, $1,093,954.92; for Indians, $6,514,161.09; for pensions, $5,005,279.62; for tire military establishment, including river and harbor improvements aud arsenals, $40,466,400.55; for the naval establishment, including vessels, machinery and improvements at navy yards, sl-5,686,671.66; for miscellaneous expenditures, in- i eluding public buildings, lighthouses : and collecting the revenue, $41,837,280.57; for expenditures on account of the District of Columbia, $3,543,912.03; I for interest ou the public debt, $82,508,741.18; for premium on bonds pm- I chased, $1,061,248.78. Total ordinary expenditure, $260,712,887.59, leaving a surplus of revenue of $100,0b9,4i>4.98. which was applied aafollows : To the redemption of bonds for the sinking 5 fund, $74,371,200; fractional currency for the sinking fund, $109,001.05; loan ‘ of February, 1861, $7,418,000; ten for- : ties of 1864, $2,016,150; five twentieso’ 1862, $18,300; five twenties of 1864, $3,400; five twenties of 1865, $37,300. Consols of 1865, $14,315,000; consols of 1867, $ >5,910,000; consols of 1868, $33,740,000; loan indemnity stock, SI,OOO,- , 000; old demand compound interest . and other notes, $183,300, and to the Increase of cash in tiie treasury, sl,463,702,393. Total, $10,006,940,498. The requirements of the sinking fund for the year amounted to $907,860,642, which sum includes a balanceof $4,981,712,878 not accounted for. During the previous fiscal year the sum of $744,880,201.05 was applied to this fund, which left a deficit ofi $16,305,873.47. The increase of the revenues for 1881 over those of the previous year was $29,852,901.10. It is estimated that the receipts during the present fiscal year will reach $400,000,000, and the expenditures $270,000,000, leaving a surplus of $130,000,000 applicable to the sinking fund , aud tne redemption of the public debt. I approve the recommendation of the secretary of the treasury that provision be made for the early retirement of silver certificates, and that the act •’ requiring their issue be repealed. They were issued in , pursuance of the policy of the gov- , erument to maintain silver at near the gold standard and were accordingly made receivable for all customs, 1 taxes and public dues. About sixty- 1 six millions of them are now out- 1 standing. They form an unnecessary ‘ addition to the paper currency, a suf- ' ficient amount of which may be readi- j ly supplied by the national banks in accordance with the act of February 28, 1878. The treasury department ' has monthly caused at least two mil- ! lions in value of silver bullion to be 1 coined into standard silver dollars. ' One hundred aud two millions of the dollars have been already coined, * while only about thirty- ! four millions are in circulation. 1 For the reasons which he specifies, I 1 concur in the secretary’s recommends- : tion that the provision for the coinage ! of a fixed amount each month here- ' pealed, aid that hereafter only so j much be coined as shall be necessary . to supply the demaud. The secretary that the issue of gold cert fi- ’ cates should not for the present be re- ! sumed. aud suggests that the national banks may properly be forbidCen by ' law to retire their currency » xcept ’ upon reasonable notice of their intention so to do. Such legislation would ' seem to be justified by the recent ae- ! tion of certain banks on the occasion referred to in the secretary's report Os the $15,009,000 of fractional curren- ’ cy still outstanding, only about SBO,- ' 000 has been redeemed the past year. The suggestion that this amount may ! be dropped fropa future statements of 1 the public debt seems worthy of ap- ' proval; so, also, does the suggestion of the secretary as to the advisability ! of relieving the calendar of the United ' States courts in the southern district 1 of New York, by the transfer to an- I other tribunal of the numerous suits there pending against collectors. ’ The revenue from customs for the i past fiscal year was $198,159,676.02, an increase of $11,637,611.42 over the pre- ■ eding year; $138,098,562.39 of this ■ amount was collected at the port of New York, leaving $50,251,113.63 as the amount collected at all the other ports of the country. Os this sum $47,977,137.63 was collected on sugar, inelado and molasses; $27,285,624.78 on wool audits manufactures; $21,462,534,54 on iron aud steel and manufactures thereof; $19,038,665.81 on manufactures of silk; $10,825,115.25 onjmaufacture of cotton, aud56,469,543.040n wines and spirits, making a total revenue of $133 058,- i 720.81. The expenses of collection i for the past year were $6,419,345.20, < an fhcrease over the preceding year ’ of $3,874,101.04. Notwithstanding the < increase in the revenue from customs i over the preceding year, the gross t value of the imports, including fall < goods, decreased over $25,000,000. The t market decrease was in the value of t unmanufactured wool, $1,423,682, i and in that of scrap pig iron, $12,810,- t 671 in the value of imports. Sugar t on the other hand showed | an increase of $7,457,479; of steel rails, c $435,521; of barley, $2,154,204, and of t steel in bars, ingots, &c., $1,620,046. 1 Contrasted with the imports they (

• were as follows: Domestic inerchans dise, $483,925,947; foreign merchan--1 dise, $18,451,399. Total, $902,377,346. 1 Imports of merchandise, $642,664,628. f Excess of exports over imports of ■ merchandise $59,712,718. Aggregate ■ of exports over imports, $1,545,041,974. Tiie position of paying for all we • buy abroad upon a gold standI ard and selling all we have to I sell on a silver standard, i compared with the ftfevious vear ■ there was an increase 0n566,738,688 in the value of exports of merchandise, and a decrease of $25,290,118 in the value of imports. The annual average of increase of imports of merchandise over exports thereof for ten years previous to June 30, 1873, was $'C4,808,922, but for the last six years the.e has been an excess of exports over imports of merchandise amounting to $1,1880,668,103, an annual average 0f5196,778,017, The specie value of ’ the exports of domestic merchandise was $376,616,473 in 1870 and $883,925,947 in 1881, and increase of $307,309,474, or 13.5 per ceut. The value of imports was $435,958,408 in 1870, and $642,664,628 iu 1881, an increase of $20,678,220 or 47 per cent, during each year from 1862 to 1879, inclusive of the exports of specie exceeded in the imports. The largest excess of such exports over imports was reached during the year 1864, it amounted to $92,280,929, but during tpe year ending June 30, 1880, the imports of the coin and bullion exceeded the exports by $75,891,391, and during the last fiscal The treasury in April last notified the holders of the $195,690,400 of 6 per Ceut. bouds then outstanding that the bonds would be paid at par on the Ist day of July following, on that they might be continued at the pleasure of the government to bear interest at the

rate of per cent, per annum. Under this notice $178,055,150 of 6 per cent, bonds were continued at the lower rate, and $17,635,250 were redeemed iu the month of May. A like notice was given respecting the redemption or continuance of $449,841,850 of 5 per cent, bonds then outstanding, and of these $401,5 4.900 were continued at per cent per annum and $38,336,450 redeemed. The 6 per cent, bonds of the loan of February 8, 1»61, aud of the Oregon war debt, amounting together to $14,125,.800, having matured during the year, the secretary of the treasury gave notice of his intention to redeem ihe same, and such as have been presented have been paid from the surplus revenue. There have been also redeemed at par $16,791 of the per cent, continued bondsEstimates during tiie year 0f5123,969,650. The reduction of the annu I interest ou the public debt through these transactions is as follows: By reduct ion of interest to three and onehalf per cent., $1,047,395,227; by redemption of bonds, $635.234.0110. ' Total, $16,826,292.25. The three and one-half per centum bond being payable at the pleasure of the government are surplus revenue without the payment of premium. Unless these bouds can be funded at a much less rate of interest than they now bear, I agree with the secretary of the treasury that no legislation respecting them is desirable. It is a matter for congratulation tha> the business of the country has been so prosperous during the past year as to i yield by taxation a larire surplus of inc< Lit to the government. If the revenue laws remain unchanged, this surplus must, from year to year, in-crea-e, on account of the reduction ot I the publie debt: and its burden of inI terest, aud because of the rapid increase of our population in 1860. Just prior to the institution of our internal revenue system our population but slightly exceeded 30,900,000. By the Census of 1889 it is now found to exceed 50,'00,0 0. It is estimated that even if the annual receipts and expenditures should continue as at present, the entire debt could be paid in ten years. In view, however, of the heavy load cf taxation which our people have already borne, we may ‘well consider whether it is not the part of wisdom to reduce the revenue, even if we delay a little the payment of the debt. It seems to me that the time has arrived hen the people may justly demand some relief from their present onerous burden, and that by due economy and expediency, but iu the aid of enterprises no more than quas’i public in character can a government be justly said to have an overflowing treasury when there is outstanding debts against it greater than it cotiTu pay if lawfully presented, aud when its meaus of payment in tiie future must be taken from its denizens by burdensome taxation, is it a beneficial exercise of governmental power to raise money iu greater sums than the lawful deflftnds upon the government requires, when those demands are in themselves a heavy burden upon the industry’ and business of the country? Other considerations have been presented, such as that if the public debt be fully paid, and all government bonds be retired, the best and safest basis for the national bank system will be lost. I agree with the secretary of the treasury that the law imposing a stamp tax upon matches, propriatary articles, playing cards, checks, i aud drafts may, with propriety, be repealed, and the law also by which banks and bankers are assessed upon their capital and deposits. There seems to be a great sentiment in favor of this course. In the present condition of our revenues the tax upon deposits is especially unjust. It was neverimposedin this country until it was demanded by the necessities of war, and was never exacted, I believe, iu any other country even in its greatest exigencies. Bankers required to secure their circulation by pledging with the treasurer of the Uuited States bonds of the general government. The interest upon these bonds, which, at the time when the tax was imposed, was six per cent., is now in most instances, three a d onehalf per cent., besides the entire circulation was originally limited by law, and no increase was allowable, when the existing banks had practically a monopoly of the business. There was force in the suggestion that for the franchise to the favored grantees the government might very properly exact a tax on circulation, but for years the system has been free and the amount of circulation regulated by the public demand. The attention of this tax lias been suggested a means of reimbursing the government for the expense of priming and furnishing the circulating notes of the tax should be repealed. It would certainly seem proper to require the national banks to pay the amount of such exnense to the comptroller of the treasury. It is perhaps doubtful whether immediate reduction of the rate of taxation upon liquor and is advisable, and in view of the drain upon the treasury which must attend the payment of arrears of pensions. A comparison, however, of the amount of taxes collected under the varying rates of taxation which have at different times prevailed, suggests the intimation that some reduc-

. tion may soon be made without m e- . rial derniuution of the revenue. The tariff’ laws also need revision, but \ that a due regard may be paid to the f conflicting interest of our citizens, , important changes should be made with caution, if a careful revision j cannot be made at this session, a ’ commission, such as was lately ap- , proved by the senate end is now recommended by the : secrelary of the treasury, would doubtless lighten the labors of eongrets whenever this subject shall , be brought to its consideration. The accompanying report of the secretary of war will make known the operations of that department for the pistyear. He suggests measures for promoting the efficiency of the army with adding to the number of its officers, ana recommends this legislation as necessary to increase the number of enlisted men to thirty thousand to the maximum allowed by law. This he deems necessary’ to maintain the quietness of our ever shifting frontiers to i reserve the peace and suppress disorder and marauding in new settlements, to protect settlers and their property against Indians and Indians against the encroachments of intruders, and to enab'e peaceable immigrants to establi L , homes in the most remote parts ot our country. The army is now necessarily scattered over such a vast extent of territory that whenever an outbreak occurs reinforcements must be hurried from many quarters over a great distance and always at heavy cost for transportation of men, horses, wagons and supplies. I concur in the recommendations of the sec- , rotary for increasing the army to the strength of 30,000 enlisted . men. It appears by the secretary’s , report that, in the absence of disturb- , ances on the frontiers, the troops have ; been actively employed in collecting Indians hitherto hostile, and locating ( them on their proper reservations; ; that Sitting Bull and his adherents j are now prisoners at Fort. Randall; i that the Utes have been moved to ; their new reservation in Utah ; that ( during the recent outbreak of the | Apaches it was necessary to reinforce ; uarrisons in Arizona by troops withdrawn from New Mexico, and ] that some Apaches are now j held as prisoners for trial, ! while some have escaped and the J majority of the tribe are now on their < reservation. There is need of legisla- ] lation to prevent intrusion upon the ] lands set apart for the Indians. A ( largo military force at great expense j is required to patrol the boundary line bet ween Kansas and the Indian , territory. Tile only punishment that { can at present be inflicted is the forci- ( ble removal of the intruder and the ; imposition of a pecuniary fine which j in most eases it is impossible to col- r lect. There should be a penalty by < imprisonment in such cases. The t separate organization of the signal , service is urged by the secretary ( of war, and a full statement of the ad- t vantages of such permanent ( organiz’rtion is presented in the re- t port of the chief signal officer. Ade- i tail of the useful work perform d by t the signal corps and the weather j bureau is also given in that report. I j ask attention to the statements of the ; secretary of war regarding the requi- ( -Rious frequently made Indian ] bureau upon the subsistence depart- t ment of the army for the casual sup- , port of bands and tribes of Indians, , which appropriations are exhausted, j The war department should not be t left by reason of inadequate provision t for the Indian bureau to contribute , for the maintenance of Indians. The report of the chief of engineers * furnishes a detailed account of ti e s operations for the improvement of e rivers and harbors I commend,to c your attention the suggestions con- c t >ined in this report in regard to the t condition of our fortification, espe- a cially our coast defenses, and recoin- c mend an increase of tiie strength of . tiie engineer battalion by whi -n the * efficiency of our torpedo system would , be improved. I also "all your atten- f tion to the remarks upon the improt ement of the south pass of the Missouri 8 river, the proposed free bridge over j the Potomac river at Georgetown, c tiie importance of completing < at an early day the north wing of the department of state building, and ; other recommendations of the secre- j tary of war which appear in his re- ( port. The actual expenditures of this . department for the fiscal year ending ; June 30, 1881, were $112,220,139. The j appropriations for the year 1882 were . $44,889,725 42. The estimates for 1888 t are $44,541,276.91.

The report of the secretary of the uavy exhibits the condition of that branch cf the service and presents valuable suggestions for its improvement. I call your special attention also to the appended report of the advisory board which he convened to devise suitable measures for increasing the efficiency of the navy, and particularly to the report as to the character and number of vessels necessary to place it upon a footing commensurate with the necessity of the government. I cannot too strongly urge upon you my conviction that every consideration of national safety, economy and honor demands a thorough repairing of our navy, with a full appreciation of the fact that, a compliance tvith the suggestion of the head of that department and of the advisory board, must involve a large expenditure of the public motleys 1 earnestly recommend sueh appropriations as -will ac complish in the end what seems to be desirable. Nothing an be more inconsistent with true public economy than withholding the means necessary to accomplish the objects inti mated by the constitution to the national legislature. One of these objects, and one which is of permanent importance, is declared by our fundamental law t» be provisions for “common defense.” Surely nothing is more essential to the defense of the United States and ot all our people than the efficiency of our navy. We have for many years maintained with foreign governments the relations of honorable peace, and thal such relations may’ be permanent is desired by every patriotic citizen w the republic. But if we read the teachings of history we should not forget that in the life of every nation emergencies may arise when a resort to anus can alone save it from dishonor. No danger from abroad now threatens this |>eople, nor have we any cause to distrust the friendly professions of other governments. But for avoiding as well as for repelling dangers that may threaten us in the tuture, we must be prepared to face any policy which we think wise to adopt. We must be ready to defend our harbors against aggression «to protect by the distribution of our ships of war over the highways of commerce the varied interests of our foreign trade and the person aud property of our citizens abroad; t maintain everywhere the honor of our flag and the distinguished position which we may rightfully claim among the nations of the world. The report of the postmaster general is a gratifying exhibit of the growth

- the efficiency of the postal service. e The receipts from postage aud other t ordinary sources during the past flss cal year were $36,489,816.58; the re- '> cei| ts from the money order business e were $295,558, 139, making a total of 1 $36,785,397.97. The expenditure for 1 the fiscal year was $69,251,736.46. The ■ deficit supplied out of the general I t ; isury was $2,481,129.35, or sixty--3 ' ee per cent, of the amount. The 1 receipts were $3,469,918.63 in excess of ose of the previous year aud $4,575,1 397.97 in excess of the estimate made • two years ago before the presen t period ■ of business prosperity had fairly begun. - The whole number of letters mailed ' in this country in the last fiscal year exceeded one thousand millions. The ’ registry system is reported to be in excellent condition, and has been re1 modeled during the last four years with good . its. The amount of registration fees collected during the last fiscal yea? was $71,288,220 an increase over the fiscal year, ending June 30, 1877, of $34,544,340. The entire number of letters and packages registered during the year was 8,338,919, of which only 2,061 were destroyed or lost in transit. The operations of the money order system are multipling, mainly under the impulse of emmigration, of the rapid development of the newer states and territories, and the consequent demand for additional means ofinter-communicationandexchaug . j During the past year 338 addition .1 , money order offices have been estab- , lished, making a total of 5,499 in ope- ( ration at the date of this report. Dur- . ing the year the domestic money or- , dersaggregated in va1ue510,507,.576,935. | A modification of the system is sug- j gested, reducing Ihe fees for money t ordeis not exceeding five dollars fiom j ten cents to five cents, and making the ( maximum limit slou in place of $.50. j Legislation for the disposition of un- t claimed money orders in the posses- t sion of the postoffice department is , recommended in view of the fact that 2 their total value now exceeds one mil- , lion dollars. Tue attention of t congress is again pointed to f the subject of establishing f a system of savings deposits in e connection with the postoffice depart- t meat. The statistics of mail trans- ; portation show that during the past e year railroad routes have been de- a creased in length 6,249 miles and in j cost $1,114,382, while steamboat routes ; have been decreased in length 2,182 8 miles, and in cost $134,054. The so- ; called star routes have been decreased ( iu length 3,949 miles, *nd in cost t $36i,144. Nearly all of the more ex- | pensive routes have been superceded a by the railroad service. The L cost of the star service L

must therefore rapidly decrease iu the western state and territories. The postmaster general, however, calls attention to the constantly increasing cost of the railway’ mail service as a serious difficulty in the way of making the department self-sus-taining. Our postal interests with foreign countries has kept pace with the growth of the domestic service. Within the past year several countries and colonies have declared their adhesion to the postal union. It now includes all those who have an organized postal service, except Bolivia, Costa, Rica, New Zealand and the British colonies in Australia, as has been already’ stated, great redactions have recently’ been made in the expense of the Star Route service. The investigations of the department of justice and the postoffice department have resulted in the presentation of indictments against persons formerly connected with that service, accusing them of offenses against the United States. I have enjoined upon the officials who are charged with the conduct of the cases on the part of the government, and the eminent counsel who, before my accession to the presidency, were called to their assistance, the duty of prosecuting, with the utmost vigor of the law, all persons who may be found chargeable with frauds upon the public service. The acting attorney general calls attention to the necessity of modifying the present system of the courts of the United States, a necessity due to the large increase of business, and especially in the supreme court. Litigation in our federal tribunals became greatly’ expanded after the close of the late war. So long as that expansion might be attributable to the abnormal condition in which the community found itself immediately after the return of peace, prudence required that no change oa made in the con stitution of ov.. - judicial tribunals, but it has now become apparent that i an immense increase of litigation has i directly resulted from the wonderful growth and development of the conn- > try. There Is no ground for belief ' that the business of the United States 1 courts will never be less in volume than at present. Indeed, that it is j likely to be much greater is generally : recognized by the bench and bar. In i view of the fact that congress has al- i ready given much consideration to i this subject, I make no suggestion i as to the details, but express the ' hope that your deliberations may re - suit in sueh legislation as will give early relief to our overburdened courts.

The acting attorney general also calls attention to the disturbances of the public tranquility during the past year in the territory of Arizona. A band of armed desperadoes, known as “cowboys,” probably numbering from fifty to one hundred men, have been engaged for months in committing sets of lawlessness and brutality which the local authorities have been unable to repress. The depredations of these “cowboys” have also been extended into Mexico, which the marauders reach from the Arizona frontier. With everydis position to meet the exigencies of the case, I am embarrassed by lack of authority to deal with them effectually. The punishment of crimes committed within Arizona should ordinarily of course be left to the territorial authorities, but it is worthy of consideration whether acts whicli necessarily tend to embroil the Uuited States with neighboring governments should not be declared crimes against the United States. Some of the incursions alluded to may perhaps be within the scope of the law of the revised statutes, section 5,286, forbidding military expeditious or enterprises ' against friendly states, but in view of the speedy assembling, of your body, I have preferred to await such legislation as n your wisdom the occasion may seem to demand. It may perhaps be thought proper to provide that the setting on foot within our own territory of brigandage and armed marauding expeditions against friendly nations and their citizens shall be punishable as an offense against the United States. I will add that in the even’ of a request from the territorial government for protection by the United States against domestic vioLnce, this government would be powerless to render assistance. The act of 1795, chapter 36, passed at a time when territorial governments received little attention from eon-

NUMBER 36.

•. I gress, enforced this duty of the Unir ted States only as to state governi- meats, but the act of 1807, chapter 39, s- applied also to territories. This law s seems to have remained in force until f the revision of the statutes, when r provisi >n for the territories was drops ped. I am not advised whether this 1 alteration was intentional oracciden- - tai, but as it seems to me that the ■ territories should be offered the ’ f protection which is accorded to - states by the constitution, 1 sug- • gest legislation to that end. I It seems to me that whatever views , may prevail as to the policy of recent legislation by which the aimybas ceased to be a part of the posse com itatus, one exception might well be made for permitting the military to assert the civil territorial authorities in enforcing the laws of the United States. Thus used, the army would not seem to be within the alleged evil against which that legislation was aimed. From scarceness of population and other circumstances, it is often quite impracticable to summon a civil posse in places where affairs of justice require assistance, and where a military force is within easy reach. The report of the secretary of the interior, with accompanying documents, presents an elaborate account of the business of that department. A summary of it would be too extended for this place. I ask careful attention to the report itself. Prominent among the matter which challenges the attention of congress at its present session is the management of our Indian affairs. While this question has been a cause of trouble and embarrassment from the infancy of the government, it is but recently that any efforts have been made for its solution, at once serious, determined, consistent and promising success. It has been easier to resort to convenient makeshifts for tiding over the temporary difficulties than to grapple with the great permanent problem. Accordingly the easier course has invariably been pursued. It was natural at a time when the national territory seemed almost illimitable and contained mauy millions of acres far south of the bounds of civilized settlements, that a policy should have been initiated Which more than aught else has been the fruitful source of our Indian complications. I refer, of course, to the policy of dealing with the various Indian tribes as separate nationalities, of regulating them by treaty stipulations to the occupancy of immense reservations in the west, and of encouraging them to live a life undisturbed by any earnest and well directed efforts to bring them under sell-supporting influences. The unsatisfactory results which have sprung from this policy are becoming apparent to all, as the white settlements have crowded the borders of the reservations. The Indians,sometimes contentedly and sometimes against their will, iiave been transported to other hunting grounds, from which they have again been destroyed whenever

their new found homes have been discovered by the adventurous Seminoles. These removals aud the frontier collisions by which they have often been preceeded, have led to frequent and disastrous conflicts between the races It is profitless to discuss here which of them has been chiefly responsible for the disturbances, whose recital occupies so large a space upon the pages of our history, and we have todeal with the appalling fact that, although thousands of lives have been sacrificed and hundreds of millions of dollars erqjended in the attempt to solve the Indian problem, it had, until within the past year, seemed scarcely nearer a solution than it was half a century ago; but the government has of late been cau-

tiously, but steadily feeling its way to the adoption ot' a jiolicy which has already produced gratifying results, and which, in my judgment, is likely, if congress and the executive accord in its support, to relieve us *re long from the difficulties which have hitherto beset us. For the success of the efforts now making to introduce among the Ind.ans the customs and pursuits of civilized life, and gradually to absorb them into the mass of our citizens, sharing their rights and holden to their responsibilities there is imperative need for legislative action. My suggestion in that regard will bechiefly such as shall be called to the attention of congress, and have received, to some extent, its consideration. First, I recommend the passage of an act making the laws of the various states and territories applicable to the Indian reservation within their borders and extending the laws of the slate of Arkansas to ohe portion of the Indian territory trit occupied by the five civilized prbes, the Indian should receive the .notection of the law. He should be allowed to maintain in court his rights of person and property he has repeatedly begged for. This privi.ege and its exercise would be very valuable to him in his progress toward civilization. Second, and of even greater importance is the measure which has been frequently recommended by my predecessors iii office, and in furtherance of which several bills have been from time to time introduced into both houses of congress. The enactment of a general law permitting the allotment in severalty to such Indians at least as desire it at reasonable rates the land secured to tnem by patents and for their own protection made inalienable from twenty to twenty-five years is demanded for their present welfare and pemanent advancement. In return for this consideration on the part of the government there is reason to believe that the Indians in large numbers would be persuaded to sever their tribal relations and to engage at once in agricultural pursuits, and to see that it is now for their best interests io conform their manner of life to the new order «f things by no greater inducement than the assurance of a permanent title to the soil they need to engage in the occupation of the tilling of it. The well-attested report of their increasing interest in husbandry justifying the hope and belief that the enactment of such a statute as I recommend would beat once attended with gratifying results and that the allotment system would have a direct and powerful influence in dissolving the tribal bond which is a prominent feature of savage life, and which tend so strongly to perpetuate them. I advise a liberal a* propriation for the support of Indian schools because of my confident belief that soph a course s consistent with the wisest economy even among the most uncultured Indian tribes. There is reported to be a general and urgent desire on the part of chiefs and older members forth, education of their children. It is unfortunate, in view of tins faet, that duaing the past year the means which have been at the command of the interior department tor the purpose of Indian ' instrue ion have proved to lie utterly ContlßMad on fuerM