Democratic Sentinel, Volume 7, Number 45, Rensselaer, Jasper County, 7 December 1883 — Page 2

glje gcmoCToticStntinel RENSSELAER, INDIANA. J. W. McEWEN, - - - Pubijsheb.

THE NATION.

Annual Message of President Arthur to Congress. The Questions of Finance, Revenue and Taxation Discussed. Postal Telegraphy Mfldly Approved and Polygamy Sharply Condemned. A Comprehensive Review of Our Foreign and Domestic Relations.

7b the Congress of the United Stales : At the threshold of a year of deliberation I congratulate you upon the favorable aspect of the domestic and foreign affairs of this Government. Ftardgn Betattaus. Owr retatioas with other nations continue to t’ooa a triearily footing. With the Argentine Republic, Austria, Belgium, Brazil, Denmark, Hayti, Santo Domingo and Sweden and Norway no incident has occurred which calls for .'pecial comment. The recent opening of new lines of telegraphic communication with Central America and Brazil permitted the interchange of messages of friendship with th# Governments of these oounIrtßx. During the year there have been perltectea snd proclaimed consular and commeroizl treaties with. Servia and a consular treaty with. Bouznania, thus extending our, intercourse with the Danubian countries, while bur Eastern relations have been placed upon a wider base byti'caties with Corea and Madagascar. The new boundary survey treaties with Mexico, a trad asm ark convention and a supplementary treaty of extradition with Spain. rnd. a Convention extending the duration of the Franco-American Claims Commission, have also been proclaimed. The Fisheries Industry. Notice of the confirmation of the fisheries articles of the Treaty of Washington was duly given to the British Government. The privileges and exemptions or thp Brtiish Government and the reciproical privileges and exemptions of the treaty will accordingly close on July 1, 1835. The fisheries industry, pursued by a numerous class of our citizens on the Northern coasts, both of the the Atlantic and Pacific oceans, axe worthy of the fostering care of Congress. Whenever brought into competion with like industries of other countries, our fishermen, as well as our manufacturers of fishing appliances and preparers of fish products, bare maintained a foremost place. I suggest that Congress create a commission to consider the question of our rights in the fishleries and the means of opening to our citizens, under just and enduring conditions, the richly-stocked fishing waters and sealing grounds of British North America. Pauper Immigration. The question has arisen touching deportation to the united States from the British islands by governmental or municipal aid, of persons unable there to gain a living, and equally a burden on the community here. Such of these persons as will under the pauper class, as defined by the law, have been sent back, in accordance with the provisions of our statutes, Her Majesty’s Government has Insisted thatprecautions have been taken before shipment. This has, however, in so many cases proven ineffectual, and especially so in certain recent instances of needy immigrants reaching our territory through Canada, that a revision of our legislation upon this subject may be deemed advisable. Cl»yton-Bulwer Treaty. Correspondence relative to the Clayton-Bulwer Treaty has been continued, and will be laid before Congress.

The. American Hog in Europe. The legislation of France against the importation of prepared swine produced from the United States has jeen repealed. That result has been due no less to the friendly representations of this Government than to a growing convictian in France that the restriction is not demanded by any real danger to health. Germany still prohibits the introduction of all swine products from America. I extended to the Imperial Government a friendly invitation to send experts to the United States, to inquire whether the use of these products was dangerous to health. This invitation was declined. I have believed it of' such importance, however, that the exact facts should be ascertained and promulgated, that I have appointed a competent commission to make a thorough investigation of the subject. Its members have shown their public spirit by accepting their trust without pledge of compensation, but I trust that Congress will see in the national and international bearings of the matter a sufficient motive of providing at least for reimbursement of such expenses as they may necessarily incur. The Coronation of the Czar, at Moscow, afforded to this Government an occasion for testifying its continued friendship by sending a special envoy and a representative of the navy to attend the ceremony. 'While there have arisen during the year no grave question affecting the status in the Russian empire of American citizens, or other faith than that held by the national church, this Government remains firm ip its convictions that the rights of its citizens abroad should be in no way affected by their religious belief. Our Relations with Cuba. It is understood that measures for the removal of the resarictions which now burden our trade with Cuba and Porto Rico are under consideration by the Spanish Government. The proximity of Cuba, and the peculiar method of administration which there prevail, necessitate constant discussion and appeal on our part from the proceedings of the insular authorities. 1 regret to say that the just protests of this Government have not, as yet, produced satisfactory results. The Commissioner appointed to decide certain claims of our citizens against the Spanish Government, of a satisfactory rule as to the validity and force of naturalization in the United States, has finally adjourned. Some of its awards, though made more than two years ago, have not vet been paid. The specie payment is expected. Claims to a large amount, which were held by the late commission to be without their jurisdiction, have been diplomatically presented to the Spanish Government, as the action of the Colonial authorities, which has given rise to those claims, was admitted as illegal, and full reparation for the injuries sustained by our citizens should be no longer delayed.

Arbitration. The Manilla court has found that the proceedings of which this Government has complained were unauthorized, and it is hoped that the Government of Spain will not w.thhold the speedy reparation which its sensj of justice should impel it to osier for the unusual severity and unjust action of its subordinate colonial officers in the case of this vet-sel. The case of the Masonic has not yet reached a settlement. The Helvetian Confederation has prepared the’ inauguration of a class of International treaties for the deferment to arbitration of grave questions between nations. This Government lias assented to the proposed negotiation of such a treaty with Switzerland. Rights of Americans Abroad. Under the treaty of Berlin, liberty of conscience and civil rights are assured to all strangers in Bulgaria. As the United States have no distinct conventional relations with that country, and are not a party to the treaty, they should, in my opinion, ma ntain a diplomatic representation at Sofia for the improvement of intercourse and the pro er protection of the many American citizens who resort to that country as missionaries and teachers. I suggest that I be given authority to establish an agency and Consulate General at the Bulgarian capital. Commerce With Turkey. The United States are now parparticipating in a revision of the tariffs of the Ottoman Empire. They have assented to the application of a license tax of foreigners doing business in Turkey, but have opposed the oppressive storage tax upbn petroleum entering the ports of that ccuntry.

ECVptThe Government of the Khedive has proposed that the authority ot the mixod judicial tribunals tn Egypt be extended so »■ to cover citizens of the United States aooused of crime, who are now tried before Consular courts. This Government ia not indisposed to accept the change, but belteyes that Its terms should be submitted for cfttiolam to a commission appointed to revise the whole subject. Our Mexican Boundary. At no time in our national history has there been more manifest need of close and lasting relations with a neighboring state than now exists with respect to Mexico. The rapid influx of our capital and enterprise into that country shows by what has already been accomplished the vast reciprocal advantages which must attend the progress of its internal development The treaty of commerce and navigation of 18*8 has been terminated by the Mexican Government and by the absence of conventional engagements. The rights of our citizens in Mexico now depend upon the domestic statutes of the republic. There have been instances of harsh enforcement of the laws against onrvess-ls and citizens in Mexico, and of denial of diplomatic resort for their protection. The Initial step toward a better understanding has been taken in the negotiations by the commission authorized by Congress of a tipa'y, which is still before the Senate, awaiting its approval. The provisions for the reciprocal crossing of the troops in pursuit of hostile Indians have been prolonged for another year. The operations of the forces of both Governments against the savages nave been successful; and several of their most dangerous bands have been captured or dispersed bv the skill and valor of United States and Mexican soldiers fighting in a common cause. The convention for the resurvey of the boundary from the Rio Grande to the Pacific, having been ratified and exchanged; the preliminary reconnoissence therein stipulated has been effected. It now rests with Congress to make provision for completing the survey and resetting the boundary monuments. The Old Case of Benj- Well. A convention was signed with Mexico on July 13, 1882, providing for the rehearing of the cases of Benj. Weil and the Abra Silver Mining Company, in whose favor awards were made by the late American and Mexican Claims < ommission. That convention still awaits the consent of the Senate. Meanwhile, because of the charges of fraudulent awards, which have made a new commission necessary, the Executive has directed the.suspension of payments of the distributive quota received from Mexico.

Central America. Our geographical proximity to Central America and our political and commercial relations with the States of that country justify, in my judgment, such a material increase of our Consular corps as will place at each capital a Consul General. South America. The contest between Bolivia and Chili and Peru has passed from the stage of strategetto hostilities to. that of negotiation, in which the Consuls of this Government has been exercised. The demands of Chili for absolute cession of territory have been maintained and accepted by the party of General Iglesias, to the extent of concluding a treaty of peace with Chili in general conformity with the terms of the protocol signed in my last between the Chilian commander and Gen. Iglesias. As a result 6t the conclusion Of this treaty, Gen. Iglesias has been formally recognized by Chili as President of Peru, and his government installed at Lima, which has been evacuated by the Chilians. A call has been issued by Gen. Iglesias for a representative assembly to be elected on the 13th of January, and to meet at Lima on the Ist of March next. Meanwhile, the provisional government of Gen. Iglesias has applied for recognition to the principal powers of America and Europe. When the will of the Peruvian people shall be manifested, I shall not hesitate to recognize the government approved by them. Diplomatic and naval representatives of this Government attended at Caraccas the centennial celebration of the birth of the illustrious Bolivar. At the same time the inauguration of the statue of Washington in the Venezuelan capital testified to the veneration in which his memory is held there. Congress, at its last session, authorized the Executive to propose to the Venezuelan Government a reopening of the awards of the mixed commission of Caraccas. The departure from this country of the Venezuelan Minister has delayed the opening of negotiations for revising the commission. This Government holds that until the re-establish-ment of a treaty on this subject the Venezuelan Government must continue to make the payments provided for in the convention of 1866. There is ground for believing that the dispute growing out of the unpaid obligations due from Venezuela to France will be satisfactorily adjusted. The French cabinet has proposed a basis of settlement which meets my approval; but as it involves a recasting of the annual quotas of the foreign debt, it has been deemed advisable to submit the proposal to the judgment of the cabinets of Berlin, Copenhagen, the Hague, London and Madrid.

Sandwich Islands. .At the recent coronation of His Majesty King Kalakaua this Government was represented, both diplomatically and by the formal visit of a vessel of war. The question of terminating or modifying the existing reciprocity treaty with Hawaii Is now before Congress. I am convinced that the charges of abuse and frauds under that treaty have been exaggerated, and I renew the suggestion of last year’s message that the treaty be modified wherever its provisions have proved onerous to legitimate trade between the two countries. lam not disposed to favor the entire cessation of treaty relations which have fostered good will between the two countries and conthe equality of Hawaii in the family of nations. Eastern Nations. In pursuance of the policy declared by this Government of extending our intercourse with the Eastern nations, legations have, during the past year, been established in Persia, Siam and Corea. It is probable that permanent missions of those countries will, ere long, be maintained in the United States. • A special embassy from Siam is now on its way hither. Treaty relations with Corea were perfected by the exchange at Seoul, on the 19th of May last, of the. ratifications of the lately-con-cluded convention, and envoys from the King of Talchosan have visited this country and received a cordial welcome. Corea, as yet unacquainted with the methods of Western civilization, now Invites the attention of those Interested in foreign trade, as it needs the implements and produpts which the United States are ready to supply. We seek no monopoly of its commerce and no advantages over other nations; but, as the Chinese, in reaching for a higher civilization, have confided in this republic, we canpot regard with indifference any encroachment on their rights. Chinese Indemnity. China, by the payment of a money indemnity, has settled certain of the long-pending claims of our citizens, and I have strong hopes that the remainder will soon be adjusted. Questions have arisen touching the rights of American and other foreign manmacturers in China under the provisions ot treaties which permit aliens to exercise their industries in that country. On this specific point our own treaty is silent: but. under the operation of the most favored nations clause, we have like privileges with those of other powers. While it is the duty ot the Government to see that our citizens have the full enjoyment of every benefit secured by treaty, I doubt the expediency of leading in a movement to constrain China to admit an interpretation which we have only our indirect treaty right to exact. The transference to China ot American capital for employment there of Chinese labor, would in effect inaugurate a competition for the control ot markets now supplied by our home industries.

Chinese Immigration. There is good reason to believe that the law restricting the immigration of Chinese has been violated. otherwise, by the officials of China upon wiiem-ds devolved the duty ot ceititying that the immigrants belong to the excepted classes; Mees ares have been taken to ascertain the facts incident to this supposed infraction, and it is believed that the Government of China will co-operate with the United States in securing ths fiithful observance of the law. The same considerations which prompted Congress at its last session to return to Japan the Simoneski indemnity, seem to me to require at its hands like action in respect to the Canton indemnity lund, now amounting to $300,000. Japan. The question of the general revision of the fore.gn treaties of Japan has been considered in an international conference heldatTokio, but without definite result as yet. This Government is disposed tq concede the requests of Japan to determine it/ own tariff duties and provide such proper judicial tribunals as may command themselves to the Western powers for the trial of causes to which foreigners a. e ].arties, and to assimilate the terms and duration of its treaties to those of other civilized st>W, through our Ministers at London and a. Monrovia. Literia. This Government has endeavored to aid Liberia in its differences with Great Britain touching the northwestern boundaries of that republic. There Is a prospect of adjustment of the dispute by the adoption of the Mannah river as th t line. This arrangement is a compromise of the conflicting territorial claims, and takes from Liberia no territory over which it has maintained effec ivejurisdiction.

The rich populous valley of King of the Belgians is President, and a citizen of the United States tbe chief executive officer, Large tracts of territory have been ceded to the association by native chiefs. w Hoads have been opened and steamboats placed on the river, and the nuclei of states established at twenty-two stations under one flag, which offers freedom to commerce and prohibits the slave trade. The objects of the society are philanthropic- It does not aim at permanent political control, but seeks the neutrality of the States cannot be indifferent to this work, nor to the interests of their citizens involved in lu It may become advisable for us to 00-operate with other commercial powers in promoting the rights of trade and residence in the Congo valley, free from the interference or political control of any one nation. Social and Scientific. In view of the frequency of invitations from foreign governments to participate in social and scientific congresses for the discussion of important matters of general concern, I repeat the suggestions of my last message, that provision be made for the exercise of discretionary power by the Executive in appointing delegates to such conventions. Specialists are ready to serve the National interests tn such capacity without personal profit or other compensation than the defrayment of expenses actually incurred, and this a comparatively small annual appropriation would suffice to meet. Kestrlctions of Commerce. I have alluded in my previous message to the injurious and vexatious restrictions suffered by our trade in the Spanish West Indies. Brazil, whose National outlet for its great National staple, coffee, is through the United States, imposes a heavy export duty upon that product. Our petroleum exports are hampered In Turkey and in other Eastern ports by restrictions as to storage and by onerous taxation. For these mischiefs adequate relief is not always provided by reciprocity treaties like that with Hawaii, or that lately negotiated with Mexico and now awaiting the action of the Senate. Is it not advisable to provide some measure of equitable retaliation in our relations with Governments which discriminate against our own? If, for example, tee Executive were empowered to apply to Spanish vessels and cargoes from Cuba and Porto Rico the same rules of treatment and scale of penalties for technical faults which are applied to our vessels and cargoes In the Antilles, a resort to that' course might not be barren of good results. Finance and Revenue,

The report of the Secretary of the Treasury gives a full and interesting exhibit of the flnan-' cial condition of tee country. It shows that the ordinary revenues from all sources, for the fiscal year ended June 30, 1883, amounted to $398,287,581.96, whereof there was received from tee customs, $21*,706, *96.93; from Internal revenue, $144,720*368.98; from sales of public lands, $7,955,864.42; from tax on circulation and deposits of National banks, $9,111,008.85; from profits on the coinage of bullion, deposits and assays, $*,*60,205.17; from other sources. $17,333,637.60. Total, $398,287,581.95. For the same period the ordinary expenditures were, for civil expenses, $22,343,285.76; for foreign intercourse, $2,*19,275.2*; for Indians, $7,362,690.3*; for pensions, $66,012,573.6*; for the military establishments and arsenals, $*8,911,387.93; for the naval establishment, including vessels and improvements at navy yard, $15,233,432.17; for miscellaneous expenditures, including public buildings, lighthouses and collecting the revenues. $40,098,432.73; for expenditures on account of District of Columbia, $3,817,028. *8; for interest on the public debt, $59,160,131.25; total, 4265.408,137.54. Leaving a surplm revenue of $132,879,444.41, which, with an amount drawn from the cash balance in tee treasury of $1,299,312.56—5134,178,756.96—was applied to the redemption of the sinking fund, and $44,850,700 of fractional currency. For the • sinking fund, $16,556.96 of the funded loan of 1881 were continued at per cent.; $65,380,250 of tee loan of July and August, 1861, were continued at 3& per cent.; and $20,594,600 of the funded loan of 1907, $1,418,850 of tee funded loan of 1881, $719,150 of the loan of February 1861, slß,oooof the loan of July and August 1861,4266,600 of loan of March, 1863, $116,850; of loan of July, 1882, $17,650; Of 5-208 of 1862, $10,300; of 5-208 of 1864, $7,050; Of 5-208 Of 1865, $9,600; of 10-408 of 1865, $133,550; of consols of 1865, $40,800; of consols of 1867, $235,700; of consols of 1868, $154,660; of Oregon war debt, $5,450: of refunding certificate’, $109,100; of old demand compound interest and other notes, $13,300. Total, $134,178,756.96.

Internal Taxation. There are cogent reasons, however, why the national indebtedness should not be thus rapidly extinguished. Chief among them 1b tee fact that only by excessive taxation is such rapidity attainable. In a communication to tee Congress, at its lasi session, I recommended that all excessive taxe be abolished, except those relating to distilled spirits, and that substantial reductions be also made in tee revenues from customs. A statute has since been enacted “y which the annual tax and tariff receipts of tee Government have been cut down to the extent of at least SSO 000,000 or $60,000,000. While I have no doubt that still further reductions may be wisely made, I do not advise tee adoption at this session of any measure for a large diminution of the national revenues. The results of tee legislation of the last session of Congress have not as yet become sufficiently apparent to justify any radical revision or sweeping modifications of the existing law. In tee interval which must elapse before the effects of the act of March 3,1883, can be definitely ascertained,a portion at least of the surplus revenues may be wisely applied to the long neglected duty of rehabilitating our nation ana providing defenses for the protection of our harbors. This is a matter to which I shall again advert.

Consolidation of Revenue Districts. The Secretary of the Treasury advises a consolidation of certain of the customs districts of the country, and suggests that the President be vested with such power in relation thereto as is now given him by Section 3,141 of the Revised Statutes. The statistics on this subject which are contained in his report furnish of themselves a strong argument in defense of his views. At the adjournment of Congress the number of internal revenue collection districts was 126. By executive orders, dated June 25, 1883, I directed that certain of the districts be consolidated. The result has been a reduction of onethird their number, which at present is but eighty-three. Indian Aflhirs. From the report of the Secretary ot War it will be seen that in only a single instance has there been any disturbance of the quiet condition of onr Indian tribes—a raid from Mexico into Arizona by a small party of Indians, which was pursued by Gen. Crook into the mountain regions from which it had come. It is confidently hoped that serious outbreaks will not again occur, and that the Indian tribes, which have for so many years disturbed the West, will hereafter remain in peaceable submission. Coast Defenses. I again call your attention to the present condition of our extended see coast, upon which are so many large cities whose wealth and importance to the country would in time of war invite attack from modern armored ships, against which our existing defensive works could give no adequate protection. Those works were built before the introduction of modern heavy rifled guns into maritime warfare, and if they are not put in an efficient condition we may easily be subjected to humiliation by a hostile power greatly inferior to ourselves. Torpedo Defenses. As germane to this subject, I call your attention to the importance ot perfecting our submarine torpedo defenses. The board authorized by the last Congress to report on the method which should be adapted tor the manufacture of heavy ordnance adopted to modern warfare has visited the principal iron and steel works in this country and in Europe. It is hoped that its report will be so made and that Congress will therefore be disposed to, provide suitable facilities and places for the manufacture of such guns as are now imperatively needed. The Army. On several occasions during the past year officers of the army have, at the request of the State authorities, visited their military encampments for the inspection of the troops. From the reports ot these officers, I am induced to believe that the encouragement of the State militia organization by the national Government would be followed by very gratifying results and would afford, in sudden emergencies, the aid of a large body of volunteers educated in the performance of military duties. Naval Affairs. The Secretary of the Navy reports that, under the authority of the acts of Aug. 5, 1882, and March 3, 1883, the work of strengthening our navy by the construction of modern vessels has been auspiciously begun. Three cruisers are in progress of construction- the Chicago, of 4.500 tons displacement, and the Boston and Atlanta, each of 2,500 tons. They are to be built of steel, with the tensile strength and ductility prescribed by law, and, in combination of speed, endurance and armament, are expected to compare favorably with the best unarmored war vessels of other nations. A fourth vessel, the Dolphin, is to be constructed of similar material, and is intended to serve as a fleet dispatch boat. The double turreted monitors, Puritan, Amplerite and Terror, have been laur chedon the Delaware river, and a contract has b jen made for the sup-

dlt of their machinery. A similar monitor, the Monadnock. baa beenlaunched in California. The Naval Advisory Board and the Secretary recommend the completion of the monitors, the construction of four gnnboate. and also of three additional steel vessels, like the Chicago. Boston and Dolphin, as an important measure of material defense. National Currency. Immediately associated with the Ananda subject just discussed is the important question. What legislation is needed regarding tne national currency? The aggregate of bonds now on deposit in the treasury to support the national bank circnlat on is about $350,000,000. Nearly $200,000,000 of this amounts consists of 3 per cents.,which, as before stated, are payable at the pleasure of the Government, and are likely to be called in within less than four years, unless, meantime, the surplus revenues shall be diminished. The probable effect of such an extensive retirement of the securities, whjch are the basis of the National bank circulation,wonld be such a contraction of the volume of the currency as to produce grave commercial embarrassments. How can the danger be obviated? The most effectual plan, and one whose adoption at the earliest practical opportunity I shall heartily approve, has already been, indicated. If the revenues of the next four years shall be kept substantially commensurate with the expenses. the volume of circulation will-not be fikely to suffer any material disturbance. But if, on the other hand, there shall be great delay in reducing taxation, it will become necessary either to substitute some other form of currency in place of the Nat ional bank -notes or to make important changes in the laws by which their circulation is controlled. In my judgment the latter course is far preferable. I commend to your attention the very interesting and thoughtful suggestions on this subject which appear in the Secretary’s report. The objections which he urges against the acceptance Of any other securities than the obligations of the Government itself as a foundation for national bank circulation seem to me Insuperable. For averting the threatened contraction two courses have been suggested, either of which is probably feasible. One is the issuance of new bonds having many years to run, bearing a low rate of interest, and exchangeable upon the specified terms of those now outstanding. The other course, which commends itself to my own judgment >s the better, is the enactment of a law repealing the tax on circulation, and permitting the banks to issue notes for an amount equal to 90 per cent, of the market value, instead of, as now, the face value of the deposited bonds. I agree with the Secretary in the belief that the adoption of this plan will afford the necessary relief. ' Receipts and Disbursements. The revenue for the present fiscal year, actual and Estimated, is as follows:

Estimated, for Actual tor the remaihI soubce. the quarter ing three ending quarters of Sept. 30, ’B3 year. H." r — *—i— From -customs.. ...1$ 57,403,975.67 $ 137.597-,024.33' From internal rev- ■ enue. 29,662,078.60 90,837,721.40 From sales of public lands. 2,932,635.17 / r 5,067,364.83 From tax on circulation and deposit in national banks 1,557,800.88 1,542,199.12 From repayment of interest and sinking fund* on Pacific railroad.. 521,059.51 1,478,940.49 From .cuptoms, * • fees, flne<*c... 298,696.78 9pi,303-,22 From fees cdnsu- ' . lar, letters patent and lands.... 863,209.80 2,436,790.20 From proceeds of sales of Government property.. 112,562.23 167,437.77 From profits on coinage,etc 950,229.46 3,149,780.54 From deposits for surveying lands. 172,461.31 327,538.69 From revenues of District of Columbia. 256,017.99 1,643,982.01 From miscellaneous 1,237,189.63 2,382,810.37 Total receipted $ 95,966,917.03 $2 47,023,082.97 The actual and estimated expenses for the same period are: For remain- * ing threeOBJECT 30 fourth9 of 30,1883, act- year> egU _ k, ual - mated. Fiscal and miscellaneous, including Bublic buildings, ghthouses and collecting the revenues 15,385,799.42 $ 51,114,200.58 For Indians 2,623,390.54 4,126,609.46 For pensions 16,285,261.98 93,714,738.02 For military establishment, including fortifications, river and harbor improvements and arsenals 13,512,204.33 26,487,795.67 For naval establish- , ment. Including vessels and machinery and improvement of navy ‘yards 4,199,299.69 12,300,700.31 For expenditures sccountof Districtof Columbia...... .. 1,138.836.41 2,611,163.59 For interest on public debt 14,797,297.96 39,702,702.04 Total ordinary expenditures $ 67,942,090.83 $190,057,909.67 Total receipts, actual and estimated 343,000,000.00 Total expenditures, actual and estimated 258,000,000.00 Totals 85,000,000.00 Estimated amount due sinking fund.. 45,816,741.07 Leaving a balance of 39,183,258.93 y

If the revenue for the fiscal year which will end on June 30, 1885, be estimated upon the basis of existing laws the Secretary is of the opinion that for that year the receipts will. exceed by $60,000,000 the ordinary expenditures, including the amount devoted to the sinking fund. Hitherto the surplus, as rapidly as it has accumulated, has been devoted to the reduction of the national debt. As a result, the only bonds now outstanding which are redeemable at the pleasure of the Government are the 8 per cents., amounting to about $305,000,000. The 4j£ per cents., amounting to $250,000,000, and the $737,000,000 of 4 per cents, are not payable until 1891 ana 1907, respectively. If the surplus shall hereafter be as large as the Treasury estimates now indicate, the 3 per cent, bonds may all be redeemed at least four years before any of the per cents, can be called in. The latter, at th© game rate of accumulation of surplus, can be paid at maturity, and the moneys requisite for the redemption of the 4 per cents, will be in the treasury many years before those obligations become payable. Tlie Trade Dollar. The trade dollar was coined for the purpose of traffic in countries where silver passed at its value, ascertained by its weight and fineness. It never had a legal tender quality. Large numbers of these coins entered, however, into the volume of our currency by common consent. Their circulation in domestic trade has now ceased, and they have in the United States become a disturbing element. They should not be longer permitted to embarrass our currency system. I recommend that provision for their reception by the treasury and mints as bullion at a small percentage above the current market price of silver of like fineness be made. The Secretary urges, also, the immediate creation of an internal fast line of waterways; across the peninsula of Florida, along the coast from Florida to Hampton roads, between the Chesapeake bay and Delaware river, and through Cape Cod. If eel bound to impress npon the attention of Congress the necessity of continued progress in the reconstruction of the navy. The condition of the public treasury, as 1 have already intimated, makes the present an auspicious time for putting this branch of the service in a state of efficiency, It is no p«rt of our policy to create and maintain a navy able to cope with that of the other great powers of the world. We have no wish tor foreign conquest, and the peace which we have long enjoyed lain no seeming danger of interruption. But that our naval strength should be made adequate for the defense of our harbors, the protection of our commercial interests and the maintenance of our national honor, is a proposition from which no patriotic citizen can withhold his assent. Postal Matters. The report of the Postmaster General contains a gratifying exhibit of the condition and prospects of the Interesting branch of the public service committed to his care. It appears that on June 30, 1883, the whole number of postoffioes was 47,863, of which 1,932 were established during the previous fiscal year. The number of offices operating under the system of free delivery, was 154. At these latter offices the postage on local matter amounted to $4,196,230.52, a sum exceeding by $1,021,894.01 the entire cost of the carrier service of the country. The rate of postage on drop leters passing through these offices is now fixed by law at two cent s per half-ounce or fraction thereof. In offices where the carrier system has not been es-

111 j u Jill IWUIIIII ini II J. 11)1 IJI.; . '.W. I tablishcdthe rate is one-half as larg* » wfl! be remembered that in 1888, when tree-delivery was first established by law, the uniform single rate postage upon local letters wasone cent, and so it remained until 1873, when in those cities where carrier service was established it was increased, to defray the expense of such service. It seems to me that the old rate may now with propriety be restored, and that, too, even at the risk of diminishing, for a time at least, the receipts from postage upon local letters. I can see no reason why that particular class of mall matter should be held accountable for the entire cost of not only its own collection and delivery, but the collection and delivery of all other classes, and I am confident, after full consideration of the subject, that the reduction of the rate would be followed by such a growing accession of business as to occasion but slight and temporary loss to the revenues of the postoffice. Postal Telegraphy. The Postmaster General devotes much of his report to the consideration, in its various aspects, of the relations of the Government to the telegraph. Such reflection as I have been able to give to this subject since my last annual message has. not led me to change the view which I there expressed, in dissenting from the recommendation of the Postmaster General, that the Government assume the same control over the telegraph which it has always exercised over the m .il. Admitting that its authority in the premises is as ample as has ever been claimed for it, it would not. in my judgment, be a wise use of that authority to purchase or assume the control of existing telegraph lines, or to. construct others with a view of entering into general competition with private enterprise. The objections which may be justly urged against either of these projects, and, indeed, against any system which would require an enormous increase in the civil service list, do not, however, apply to some of the plans which have lately provoked pnblio comment and discussion. It has been claimed, for example, that Congress might wisely authorize the Postmaster General to contract with some private person or corporation for the transmission of messages at specified rates and under Government supervision. Various such schemes of the same general nature, but widely differing in their special characteristics, have been suggested in the public prints, and the arguments bv which they have been supported and opposed have doubtless attracted your attention. It is likely that the whole subject will be considered by you at the present session. In the nature of things, it involves so many questions of detail that your deliberations would probably be aided slightly, if at all, by any particular suggestions which I might now submit. I avow mv belief, however, that the Government should be authorized by law to exercise home sort of supervision over inter-State telegraph communication, and I express the hope that for Attaining that end some measuremay be devised which will receive your approbation. . .

Jurors and Witnesses in Federal Courts. The Attorney General criticizes, in his report. ..the provisions of the existing law fixing the fees >or jurors and.witnesses in the Federal courts. • The provisions axe chiefly contained In the act of Feb. 26, 1853, though some of them were introduced into that action • from statutes which bad been passed many years previous. It is manifest that such compensation as might, when these laws Were enacted, have, been just and reasonable, would in -many instances be justly regarded at the present day a» inadequate. I concur with the Attorney General in the belief that the statutes should be revised by which, these fees are regulated. So. too, should the laws which regulate the condensation of District Attorneys and Marshals. They should be paid wholly by salaries, instead of impart by fees, asds now th* case! The change would prove to be a measure of economy, and would discourage the institution of needless and opSressive legal proceedings, which, it i to be feared, have, in some instances, been conducted for the mere sake of personal gain. Interior Department. / Much interesting and varied information is contained in the report of the Secretary of the Interior. I particularly call your attention to his presentation of certain phrases of the Indian question; to his recommendations for the repeal of the ■ Pre-emption and Timber-Culture acte, and for more stringent legislation to prevent frauds under the Pension laws. The statutes which prescribe ths definitions and punishments of crimes relating to pensions could doubtless be made more effective by certain amendments and additions which are pointed out in the Secretary’s report. Primary Education. I have previously referred to the alarming state of flliteracy in certain portions of the country, and again submit for the consideration of Congress, whether some Federal aid should not be extended to public primary education wherever adequate provision therefor has not already been made.

The Mormons. The Utah Commission has submitted to the Secretary of the Interior its second annual report as a result of its labors in supervising the recent election in that Territory, pursuant to the act of March 22, 1882. It appears that the persons by that act disqualified, to the number of about 12,000, were excluded from the polls. This fact, however, affords little cause for congratulation, and I fear that it is far from indicating any real and substantial progress toward the extirpation of polygamy. All of the members of the Legislature are Mormons. There is grave reason to believe that they are in sympathy with the practices that this Government is seeking to suppress, and that its efforts in that regard will be more likely to encounter their opposition than receive their encouragement and support. Even if this view should happily be erroneous, the law under which the commission have been acting, should be made more effective by the incorporation of some such stringent measures as they recommend, as were included in bill No. 2238 on the Calendar of the Senate, at its last session. lam convinced, however, that polygamy has become so strongly intrenched in the Territory of Utah, that it is profitless to attack it with any but the strongest weapons Which constitutional legislation can fashion. I favor, therefore, the repeal of the apt upon which the existing Government depends, the assumption by the National legislation of the entire political control of the territory and the establishment of a commission, with such powers and duties as shall be delegated to it by law.

Agricultural Development. The Department of Agriculture is accomplishing much in the direction of the agricultural development of the country, and the report of the Commissioner, giving the results of his Investigations and experiments, will be found interesting and valuable. At his instance, a convention of those Interested in the cattle Industry of the country was lately held at Chicago. The prevalence of pleuro-pneumonia and other contagious diseases of animals was one of the chief topics of discussion, and a committee of the Convention will invite your co-operation in investigating the causes of these diseases, and providing methods for their prevention and cure. Alaska. I trust that Congress will not fail, at its present session, to put Alaska under the protection of law. Its people have repeatedly remonstrated against our neglect to afford them the maintenance and protection expressly guaranteed by the terms of the treaty, whereby that Territory was ceded to the United States. For 16 years they have pleaded in vain for that which they should have received without ths asking. They have no law for collection of debts, the support of education, the conveyance of property, the administration of estates, or the enforcement of contracts, nor, indeed, for the punishment of criminals, except such as is afforded against certain customs, commerce and navigation acts. The resources of Alaska, especially in fur, mines and lumber, are considerable in extent and capable of large development, while in its geographical situation it is one of political and commercial importance. The promptings of interest, therefore, as well as considerations of honor and good faith, demand the immediate establishment of civil government in that country. Inter-State Commerce. Complaints have lately been numerous and urgent that certain corporations controlling, in whole or in part, the facilities for .the InterState carriage of persons and merchandize over the great railroads of the country, have resorted, in their dealings with the public, to divers measures unjust and oppressive in their character. In some instances the State Governments have attacked and suppressed these evils, but in others they have been unable to afford adequate relief, because of the jurisdictional limitations which are imposed upon them by the Federal constitution. The question how far the National Government may lawfully interfere in the premises, and what, if any, supervision or control it ought to exercise, as one which merits your careful consideration. While we cannot fall to recognize the importance of -the vast railway system of the country, and their great and beneficial influence upon the development of our material wealth, we should, on the other hand, remember that no individual and no corporation ought to be invested with absolute power over the interest of any other citizen or class of citizens. The right of these railway corporations to award any profitable return upon their Investments, and to reasonable freedom in their regulations, must be recognized. But it seems only just that, so far as its constitutional authority will permit, Congress should protect the people at large, in their interstate traffic again-t acts of injustice, which the State Governments are powerless to prevent. The Nation’s Forests. In my last annual message I called attention to the necessity of protecting by suitable legis-

latten tbe forests stturtaff iwb «<j«Mlo domain. In many portions at tire Wert tk* pursuit of general aStoulture is only mad* ableby resort to irrigation, white raoKMk'ul irrigation would be inpowdbto without tte afforded by forests 11 contributing to tbe regularity and constancy of the supply of water. During the past year iev«re suffering rad gr«iloso of property have been occasioned by prefuse floods, followed by periods of unusually low water in many of the great river* of the ootfntry. These irregularities were n great measure caused by the removal from ibout the sources of the streams in question of the timber by which the water suppy bad been nourished and protected. Tho preservation of such portions of the forests on tho national domain as essentially contribute to the equable flow of important water courses is of the highest consequence. Important tributaries of tins Missouri, the Columbia and the Saskatchewan rise in the mountains of Montana, near the northern boundary of the United States, between the Blackfeet and Flat Head Indian reservations. This region is unsuitable for settlement, but upon the rivers which flow from it depends the future agricultural development of a vast tract of country. The attention off Congress is called to the necessity of withdrawing from public sale this nart Of the public? domain, Bnd establishing there a forest preserve. Industrial Exhibitions. The industrial exhibitions which have bom held in the United States during tho present year attracted attention in many foreign countries, where the announcement of those enterprises have been made public through the foreign agencies of this Government. The Industrial Exhibition at Boston and th* Southern Exposition at Louisville were largely attended by the exhibitors of foreign countries, notwithstanding the absence of any professional character in those undertakings. The Centennial Exposition to be held next year at New Orleans, in commemoration of the centenary of the first shipment of cotton from a. port of the United States, bids fair to meet with like gratifying success. Under the act of Congress of the 10th of February, 1883, declaring that exposition to be national and International in ita character, foreign Governments with which the United States maintain relations have been invited to participate. The promoters of this important undertaking have already received assurances of the lively interest which it excited abroad. District of Columbia. The report of the Commissioners of the District of Columbia is herewith transnfltted. I ask for it your careful attention, especially for those portions which relate to assessments of ariears of taxes and water supply.

Civil Service. The Commissioners who were appointed under the act of Jan. 16,1883, entitled “An act to regulate and improve the civil service of the United States,” entered promptly upon thb discharge of their duties. A series of rules framed in accordance with the spirit of the statute was approved and promulgated by ti e President, but in some particulars, wherein they seemed defective, theie rules were subsequently amended. It will be perceived that they discountenance any political or religious tests for admission to the offices of the public service to which the statute relates. The act is limited in its original application to the classified clerkships in ths several executive departments al Washington, numbering about 5.600, and to similar! positions in customs districts and posteffhes where as many *s fifty persons are employed. A classification of these positions, analogous to that existing in the Washington offices, was .. duly made before the law went into effect. Eleven customs districts and twenty-three paid offices were thus brought under the immediate operation of the statute. The annual report of the CivilService commission, wnich will soon be submitted to Congress, will doubtless afford the means of a more definite judgment than I am now prepared to express as to the merits of the new system. lam persuaded that its effects have thus far proved beneficial. Its practical methods appear to be adequate for the ends proposed, and there have been no serious difficulties in carrying them into effect. Since the 16th of July last no person, so far as I am aware, has been appointed to the public service, in the classified portions thereof, a. any of the’ departments, or at any of the postoffices and customs districts above named, except those certified by the Commission to be the most competent, on the basis of the examination held in conformity to the rules.

Presidential Succession. At the time the present Executive entered; upon his office his death, removal, resignation or inability to discharge his duties would have left the Government without a constitutional head. It is possible, of course; that a similar contingency may again arise, unless the wisdom of Congress shall provide against its recurrence. The Senate at its last session, utter full consideration, passed an act relating to this subject, which wilt now, I trust, commend itself to the approval of both bouses of Congress. The clause of the constitution upon which must depend any law regulating the presidential succession, present* also for solution other questions of paramount importance. These questions relate to the proper interpretation of the phrase, “Inability to discharge the powers and duties of the office. Our organic law, providing that when the President shall suffer from such inability the Presidents! office shall devolve upon the Vice President, who must himself*, under like circumstances, give place to such officer as Congress may by law appoint to act asPresident. I need not set forth the numerous and interesting inquiries which are suggested by these words of the Constitution. They were fully stated in my first communication to Congress, and have since been the subject of frequent deliberations in that body. It is greatly to be hoped that these momentous questions will find speedy solution, lest an emergency may arise when longer delay will be impossible, and any determination, albeit the wisest, may fnrnieh cause for anxiety and alarm. The Veto Power. For the reasons fully stated in my last annual message, I repeat my recommendation that Congress propose on amendment to that provision of the Constitution which prescribed the formalities for the enactment of laws whereby, in respect to bills for the appropriation of public money, the Executive may be enabled, while giving his approval to particular items, to interpose his veto as to such others as do not commend themselves to his judgment. > Civil Kights. The Fourteenth amendment to the Constitution confers the rights of citizenship upon all persons born or naturalized in the United States and subject to the jurisdiction thereof. It was the special purpose of this amendment to insure to members of the colored race the full > njoyment of civil and political rights. Certain statutory provisions intended to secure the enforcement of those rights have been recently declared unconstitutional by the Supreme Court. Any legislation whereby Congress may lawfully supplement the guarantee which the Constitution affords for the equal enjoyment by all the citizens of the United Stases of every right, privilege and immunity of citizenship* will receive my unhesitating approval. Chester A. Arthur. Washington, D. C., Dec. 3,1883.

Too Quick for Ben Butler.

An ex-Congressman of Massachusetts tells a story about Gov. Butler which illustrates his methods with a jury and shows that he sometimes meets his match. He was once counsel in a case before a Lowell Judge and jury, being on the side which was irredeemably weak and wrong. His only chance lay in misinterpreting the testimony of a witness who had spoken in a particularly straightforward manner, and in seme way hoodwinking Lawyer Train, the opposing attorney. So, when Butler’s turn to address the jury came, he began in a plausible and impressive manner to lead his hearers up to the point where his last hope lay. Beaching it, he informed the gentlemen of the jury that even the witness admitted such and such occurrences. Watching Mr. Train narrowly meantime, and judging by his silence that the course was open, he repeated again and again a very damaging assertion. When he had said it over half a dozen times Lawyer Train, who sat quietly at his desk, little interested, apparently, in the General’s argument, turned his head slowly and remarked in the dry way peculiar to him; “If my brother Butler repeats that a. few times more, he’ll make himself believe the witness said it!” This was too much for the gravity of the audience. Judge and jury joined the spectators in a hearty laugh, and Gen. Butler lost his case. Adams county, Miss., has 1,803 nioro females than males.