Democratic Sentinel, Volume 10, Number 45, Rensselaer, Jasper County, 10 December 1886 — Page 6

THE MESSAGE.

President Cleveland’s Annual Communication to Congress. Our Foreign Relations in a Highly Satisfactory Condition. A Reduction of the Surplus Revenue Earnestly Urged, He Renews His Recommendation for a Suspension of Silver Coinage. -The Fishery Troubles—The Cutting Case—Civil-Ser-vice Reform. Citizenship and NaturalizationInterstate Traffic—Capital and Labor. Tho United States and China Negotiating Regarding Chinese Immigration. The Necessity for Coast Defenses Explained and Urged Upon Congress. ,A Proposition to Establish National Prisons for Federal Convicts.

Fo the. Congress of the United States: In the discharge of a constitutional duty, and following a well-established precedent in the office, I herewith transmit to tho Congress, at its re iss Jiubling, cert iin informatom concerning the state of the Union, together With such recommendations for legislative consideration as appear necessary and expedient. FOREIGN RELATIONS The Government has consistently maintained its relations of friendship toward all other powers, and of neighborly interest toward those whose possessions are contiguous to our own. xew questions have arisen during the past year with other Governments, and none of those are beyond the reach of settlement in a friendly manner. CLAIMS AGAINST CHILI. We are as yet without provision for tho setileinent of claims of citizens of the United (States against Chili for injuries during th < late War with Peru and Bolivia. The Mixed Commissions, organized under claims conventions, Concluded by the Chili Government w th certain European states, have developed an amount of •friction which wo trust can be avoided in tho convention which our representative at Santiago Is authorized to negotiate. THE CHINESE QUESTION. The cruel treatment of inoffensive Chinese (has, I regret to say, been repeated in some of (the far Western States and Territories, and acts Off violenc e against these people beyond the .power of tho local constitut id authorities to prevent and difficult to punish, are r. ported Oven in distant Alaska. Much of this ..violence <hm be traced to race prejudice and competition Of labor, wh'ch cannot, however, justify the oppression of strangers whose safety us guarant3ed T>y our treaty with China equally with the most favored nations. In opening our vast domain to eJieu settlement, the purpose of our lawgivers was to invito assimilations ami not to provido «n arena for endless antagonisms. Tho paramount duty of maintaining public <cfrder and defending the interests of CiJir people may require tho adoption Of measures of restriction, but they should not tolerate the oppression of individuals of a special race. lam not without assurance that the Government of China, whose friendly disposition toward us I am most happy to recognize, will meet us half way in devising a comprehensible remedy, by which an effective limitation of Chinese emigration, joined to protection of those Chinese subjects who remain in this country, may bo secured. Legislation is* needed to execute the provisions of our Chineso convention of 1880 touching tho opium traffic. INTEROCEANIC TRANSIT. While the good-will of the Colombian Government toward our country is manifest, the situat on of American interests on the Isthmus of Panama has at times elicited concern, and invited friendly action looking to the performance of the eng goments .of the two nations concerning the territory embraced in tho intsroceanic transit. With tho ■subsidence of the Isthmian disturbances and the erection of the State of Panama into a Federal district under tho direct government of tho constitutional administration at Bog >ta, a new order of things has been inaugurated which, although as yet somewhat experimental and affording scope for arbitrary exercise of power by the delegates of the national authority, promises much improvement. , THE “LIBER Y’’ STATUE. The sympathy between tho people of the CTnited States and France, born during our cSlonial struggle for independence, and continuing to day, has received a fresh impulso in 'the successful completion and dedication of the colossal statue of “Liberty Fmlighteuing the World,” in New York harbor, the gift of Frenchtnen to Americans. SUBMARINE CABLES. A convention between the United States and Certain other powers for tho protection of submarine cables was signed at Paris on March 1-1, 1881, a id has been duly ratified and proclaimed by this Government. By agreement between the high contractin' parties, this convention is to go into effect the Ist of January next, but the 1 ’gislation required for its execution in the United States has Sot yet been adopted. I earnestly recommend Its enactment. GERMANS ABROAD. Cases have continued to occur in Germany giving rise to much correspondence in relation io the privilege o- sojourn of our naturalized citizens of German origin revisiting the land of their birth, yet I am happv to state that our relation* with that country have lost none of their Accustomed cordiality. TONNAGE DUES. The claims for interest upon the amount of tonnage dues illegally exsctal from certain German steamship lines were favorably re)porte4 in both bouses of Congress at the last momioa, and, I trust, will receive final and favorable attention at an early day. THU FISHERY TROUBLES. The recommendation contained In my last an*

nual message in relation to a mode of settlement of the fishery rights in the waters of I ritish North America, so long a Bubject of anxious difference between the United ntaes and Great Britain, was met by an adverse vote of the senate April 13th last, and thereupon negotiations were instituted to obtain an agreement with Her Britannic M ijesty's Government for the promulgation of such joint interpretation and definition of the aiticlo .of the convention of 181-i, relating to the Terri'.orial waters and inshore fisheries of the British provinces, ns should secure the Canadian rights from encroachment by United States fishermen, and, at the same time, insure theenjo.m nt by the latter of the privileges guaranteed to them by such convention Tho questions involved are of long standing, of grave consequence, and from time to time for neariy three-quarters of a century have given rise to earnest international discussion, not unaccompanied by irritation. Temporary arrangements by treaties have served to allay fric ion, which, however, has revived as each treaty has term in at o 1. Tho last arrangement, under the troaty of 1871. was abrogated, at ter due notice by the United States, on June 39, 1385, but I was enabled to obtain for our iishe men for the remainder of that season enjoyment of the full privileges accor.ie I by the terminating treaty. Tho Joint Commission by wiom tho treaty had been negotiated, although invested with plenary power to make a permanent settlement, wore content with a temporary arrangement, after the termination of which the question was relegated to tho stipulations of tho treaty of 1818, as to the first, article of which no construction satisfactory to both countries lias ever been agreed upon. The progress of civilization and growth of population in the British provinces to which the fisheries in question are contiguous, and the expansion of commercial inter our.se between them and the Unite! States, present a condition of affairs scarcely realizable at the date of the negotiations of 1818. Nowand vast interests have been brought into existence. Modosof intercourse between the respective countries have been invented and multiplied ; the methods of conducting the fisheries have been wholly changed; and all this is necessarily entitled to candid and careful" consideration in tho adjustment of the terms and conditions of intercourse and commerce between the United States and their ne ghbors along a Irontier of over 3,100 miles. This propinquity, community of language and occupation, and similarity oi political and social institutions, indicate the practicability and obvious wisdom of maintaining mutually bone* ficial and friendly relations. Whilo lum unfeignedly dosirous that such relations should exist between us and tho inhabitants of Canada, yet tho action of their ollieiuls during the past season towacdour fishermen has been such as to seriously threaten their continuance. A.though disappointed in my efforts to secure a satisfactory settlement of tho fishery question, negotiations are stdl pending with reasonable hope that before the close of the present session of Congress tho announcement may be made that an acceptable conclusion has neen reached. At an early day there may be laid before Congress tho correspondence of the Department of State in relation to this important suh.ect., so that the history of the past fishing soasou may be fully disclosed and tho action and the attitude of the administration clearly comprehended. More extended reference is not deemed necessary in this communication. THE ALASKA BOUNDARY. The recommendation submitted last year that provision be made for a preliminary rcconnoissaneo of tho conventional boundary lino between Alaska and British Columbia, is renewed. THE HAWAIIAN ISLANDS, I expressed my unhesitating conviction that the intimacy of our relations with Hawaii should bo emphasized. As a result of the reciprocity treaty of 1875, thoso islands, on the highway of oriental and Australian traffic, are virtually an outpost of American commerce and a stepping-stone to tho growing trade of the Pacific. Tho Polynesian island groups have been so absorbed by other and moro powerful governments, that tho Hawaiian Islands are left almost alone in the enjoyment of their autonomy which it is important for us should be preserved. Our trouty is now terminable on one year's notice, but propositions o aurogate it would be, in my judgment, most ill-ad.ised. Tho paramount influence we have there acquired, once relinquished, could only with difficulty be regained, and a valuable coign of vantage for oursolves might be converted into a stronghold for our commercial competitors. I earnestly recommend that the existing treaty stipulations bo extended for a father term of seven years. A recently signed treaty to this end is now beforo the Senate. Tho importance of telographie communication between those islands and the United States should not be overlooked.

RELATIONS WITH JAPAN. The question of a general revision of the treaties of Japan is agaiu under discussion at Tokio. As the first to open relations with that empire and ns tho nation in most direct commercial relation with Japan, the United St ites have lost no opportunity' to testify tnoir consistent friendship by supporting the just claims of Japan to autonomy and independence among nations. A treaty of extradition between tbe United States and Japan, the first concluded by that empire, lias been lately proclaimed. THE WEAKNESS OP LIBERIA, and the difficulty of maintaining effective sovereignty over its outlying districts have exposed that republic to encroachment. It can not bo forgotten that this distant community is an offshoot of our own system, owing its origin to the associated benevolence of American citizens, whose praiseworthy' efforts to creato a nucleus of civilization in the dark continent have Commanded respet and sympathy everywhere, especially in this country. Although a formal protectorate over Liboria is contrary to our traditional policy, tho. motal right and duty of the Un.ted states to assist in all proper ways tne maintenance of its integrity is obvious, aud has boen consistently announced during nearly half a century. I reccommend that in the reorganization of our navy, a srn ill vessel, no longer found adequate to our needs, be presented to Libera to b e employed by it in the protection of its coastwise revenues. OUR SISTER REPUBLIC. Tho oncouraging development of beneficial and intimate relations between tho United States and Mexi.io, which has been so marked within tho past few years, is at once the occasion of cougrotulation and of friendly solicitude. I urgently renew my former representation of the need of speedy legislation by ( digress to carry into effect the reciprocity commercial convention of January” pA), 1833. Our commercial treaty of 1831 with Mexico was terminated according to its provisions in 1881. upon the notification given by Mexico, in pursuance of her announced policy of recasting all hor commercial treaties. Moxiio hns since concluded with several foreign governments new treaties of commerce and navigation defin ug alien rights of trade, property, and residence, t eatment of shipping, consular privileges, and the like. Our yet unexecuted reciprocity e li volition of 18 S 3 covers none of these points, the settlement of which is so necessary to good relationship, anti p opose to initiate with Mexico negotiations for a new and enlarged treaty of commerce ami navigation,. THE CUTTING CASE. In compliance with a resolution of the Senate I communicated to that body on August 2 last, and also to the House of Represen.atives, the correspondence in the case of A. K, Cutting, an American citizen, then imprisoned in Mexico, charged with the commission of a penal offense in Texas, of which a Mexican citizen was the Object. After a dcimm I bad been made lor his release the charge against him was amended so as to include a violation of Mexican law within Mexican territory. This joinder of alleged offenses, one w.tuin and tbe other extqrior to Mexico, induced me to j order, a special investigation of the case, pendI ing which Mr. Cutting was released The incident has, however, disclosed a claim for jurisdiction ! bv Mexico novel in our history, whereby any offense, committed anywhere by a foreigner, penal in the place of its commission, and of which ft Mexican is tho object, may, if the offender be found in Mexico, lie there tried und punished in conformity with Mexican laws. Jurisdiction was sustained by the courts of Mexico in the Cutting case ana approved by the executive branch of that Government upon the autiiority of the Mexican statute. The Appellate Court, in releasing Mr. Cutting, decided that tbe abandonment by the Mexican citizens aggrieved by tjie alleged crime ia libelous publication), removed tho basis of further prosecution, and also declared justice to have boea satisfied by the enforcement of a small part of the original sentence. The admission of such a pretension would be attend d with serious results, invasive of the jurisdiction of this Government, and highly dangerous to onr citizens in foreign lands; tboreforo I have denied U, and protested against its attempted exercise, as unwarranted by the principle* of law and international usage.' A sovereign

has jurisdiction ot offenses which take effect within his territory, although concerted or commenced outsldo of it, but the right is denied of any foreign sovereign to punish a citizen of the United States for an offense consummated on our soil in violation of our laws, evon though the off-use be against a subject or citizen of such sovereign. The Mexican statute in question makes the claim broadly, and the principle, if conceded, would Croats a dual responsibility in the citizen, und lead to a confusion destructive of that certa nty in the law which is au essential of lib Tty. Wiieh citizens of the United States voluntarily go into a foreign country they must aoid) by tho laws there in force, and will not be protected by their own Government from thi consequences of an offense against those laws committed in such foreign country : hut watchful care and interest of this Government over its citizens are not relinquished because they have goue abroad, and if charged with crime committed in a foreign l.in I, a fai and open trial, conducted with decent regard for justice and humanity, will be demanded for them. With less than that this Government wdl not be content, when the life or liberty of its citizens is at stake. Whatever the degree to which extra territorial ciminal jurisdiction may h ivo been formerly allowed by consent und reciprocal agreement among certain of theKuropeanstatea.no such doctrine or practice was ever . nown to the laws of this country, or of that from which our institutions have mainly been derived. In the ciso of Mexico there aro reasons especially strong for perfect harmony in tho actual exercise of jurisdiction. Nature lias made us irrevocably neighbors, and wisdom and kind feeling should make us frie ids. The overlow of capital and enterprise from the United States is a potent factor in assisting the development of the resources of Mexico, and in building up the property of both countries. To assist this good work, all grounds of apprehension for the security of peison an l property should be removed, and trust that, in tho interests of good neighborhood, the statute referred to will be modified so as to eliminato the present possibilities of danger to tho peace of the two countries. THE NETHERLANDS. The Government of tho Netherlands has exhibited concern in relation to certain features of our tariff laws, which are supposed by them to be aimed at a class of tobacco produced in tho Dutch East Indios. Connnont would seem unnecessary upon the unwisdom of legislation appearing to have a special national discrimination for its object which, although unintentional, may give rise to inju ious retaliation. PERSIA. The establishment, less than four years ago, of a logation at Teheran is bearing fruit in tiie interest exhibited by the Shah’s government in the industrial activity of tlio United States aud the opportunities of beneficial interchange. PERU. Stable government is now happily restored in Peru by the election of a constitutional President,.and a period of rehabilitation is entered upon; but recovery is necessarily slow from tho exhaustion caused by tho late war and civil disturbances. A convention t > adjust by arbitration the claims of our citizens has been promised and is under consider itiou. TUB TESTIMONIALS SENT to SIBERIA. The naval officer who bore to Siberia the t stimonlals bestowed by C ongress in recognition of the aid given to the Jeannette survivors, has successfully accomplished his mission. His interesting report will bo submitted. It is pleasant to know that this mark of appreciation has been welcomed by the Bussian government and people as befits the traditional friendship of the two countries, THE SAMOAN ISLANDS. Civil perturbations in the Samoan Islands have during tho past few years been a source of considerable embarrassment to tho tlireo governments, Germany, Great Britain and the United States —whose relations and extra-terri-torial lights in that important group are guaranteed by treaties. The weakness of tho naive administration aud tho conflict of opposing int. rests in the islands have led King Muliotoa to seek alliance or protect.on in some one quarter, regardless of the distinct engagements whoreby noono of the three treaty powers may acquire any paramount or exclusive interest. In May last Malietoa offered to placo Samoa under the protection of the United States, and tue late Consul, without authority, assumed to grant it. The proceeding was promptly disavowed,and tho over-zealous official recallod. Special agents of tho three governments have been deputed to examine the situation in the islands, with a change in the representation of ail throe powers, and a harmonious understanding between them. Tho peace, prosperity, autonomous administration, and neutrality of Samoa can hardly fail to bo secured.

CUBA AND PORTO RICO. It appearing that tho Government of Spain did not ext mi to the ffagof th • United States in ihi) Antilles the whole measure of reciprocity requisite uuder o r statute for the continuance of iho suspension of discriminations against tho Spanish flag in our ports, I was constrained in October last to rescind my predecessor’s proclamation of Feb 14, IBSi, permitting such suspension. An arrangement was, however, speedily reached, and upon notification from the Government of Spain that all differential treatment of our vessels aud their cargoes irom the United States or from any foreign country, had been completely and absolutely relinquished, I availed myself of the discretion conferred by law, and issuod on tho -7th of October my proclamation declaring reciprocal suspension in the United States, it is most gratifying to bear testimony to the earnest spirit in which the Government of tbe Queen regent has met our efforts to avert the initiation of commercial discriminations and reprisals, which are ever dangerous to the ma-t-rial interests aud the political good-will of the countries they may affect. Tho profitable development of tho large commercial exchanges between the United States and the Spanish Antilles is naturally an object of solicitude. Lying close at our doors, aud finding here their maikets of supply and demand, the welfare of Cuba and I‘orio itico and their production and trade are scarcely loss important to us than to Spain. Their commercial aud financial movements are so naturally a part of our system that no obstacle to fuller, freer intercourse should be permitted to exist. The standing instructions of our representatives at Madrid aud Havana have for years been to leave no effort unessaved to further these ends, an I at no time has the equal good desire of Spain boen more hopefully manifested than now. The Government oi - pain thus removing the consular tonnage fees on cargoes shipped to the Antilles, and oy reducing passport foes, has shown its recognition of the needs of less trarneled intercourse. TURKEY. An effort lias been made during the past year to remove the hindrances, to the proclamation of the treaty of naturalization with tbe Sublime Forte, signed in 18/4, which lias rername 1 inop erative owing to a disagreement of interpretation of the clauses relating t > the efforts of tho return to and sojourn of a naturalized citizen in the lan iof his origin. I trust soon to bo able to announce a favorable settlement of the differences as to this interpretation. it has been highly sa:isfactory to note the improved treatment of American missionaries ia Turkey, us has been attested by their acknowledgments to our late Minister to that Government of his successful exertions in their behalf. VENEZUELA. Tho exchange of ratification of the convention of Lecember 5, 1885, with Venezuela for the reopening of the awards of the Caracas commission und .r tlie claims convention of 1886, has not yet been effected, owing to the delay of the Executive of that i.epuinie in ratifying the measure. I trust that this postponement will be urief ; but should it much longer continue, the delay may well be regarded as a rescisian of tbe compact, and a failure on the part of Venezuela to complete an arrangement so persistently sought by hor during many years, and assented to by this Government in a spirit of interna tionul fairness, although to the detriment of holders of bona fide awards of thortmpugned commission. Cl 11ZENSHIP AND NATURALIZATION. I renew tho recommendation of my laift annual message, that the existing leg station concerning citizenship and natuiul.zatiou bo revised. We h ive treaties with many states providing lor tue renunciation of citizenship by naturalized aliens, but no statute is round to give effect to such engagements, nor any which provides a needed central bureau for tho registration of naturalized citizens. EXTRADITION LAW 1. Experience suggests that our statutes regulating extradition might be advantageously amended by a provision for the transit across our terr tory mow a convenient thoroughfare of travel from one foroi n country to another) of fugitives surrendered by a foreign Government to a third State. Such provisions are unusual in the legislation of other countries, and ten! to prevent the miscarrying of justice. It is also desirable, iu order to remove pres nt uncertainties, that autiiority should be conferred on the Secretary of State to issue a certificate iu case of an arrest for tbe purpose of extradition to tho offloer

before whom the proceeding is pending, showing that a requisition for tne surrender of the person charged has been duly made. Such a certificate, if required to be received before the prisoner's examination, would prevent a long and expensive iudicial inquiry into a charge which the foreign government m'gutnot des re to press. I also rccomuimd that express provision be made for ths immediate discharge from custody of persons committed for extradition where' tho President is of the opinion that surrender should not be made. INTERNA I'iONAL COPYRIGHT. The drift of sentiment in civilized communi-' ties toward full recognition of the rights of property in the creations of the human intellect has brought about the adoption, by many important nations, of an international copyright convention, which was signed at Berne on the 18th of September, 1885. Inasmuch as the Cons itution gives to Congress the power “to promote the progress of science and useful arts by securing, for United times, to authors and inventors the exclusive right to their respective writings and discoveries,” this Government did not feel warranted in becoming a signatory, pending tho action of Congress upon measures of international copyright now before it; but the light of adhesion to the Berne convention has been reserved. I trust the subject will receive at vour hands tho attention it deserves, and that the just claims of a utbors, so urgently pressed, will be duly heeded. «■ ART DUTIEB. Representations continue to be made to me of the injurious effect upon American artists studying abroad, and having free access to the ait collections of foreign countries, of maintaining a discriminating duty against the introduction of the works of their brother artists of other countries, and I am induced to repeat my recommendation for the abolition of that law. THE CONSULAR RERVICE. Pursuant to a provision of the Diplomatic and Consular Appropriation act, approved July 1, 1831 the estimates submitted by the Secretary of State for tho maintenance of tne consular service hax’e been recast oa tab basis of salaries for all officers to whom such allowance is doomed advisable. Advn.ntoge has been taken of this to redistribute the salaries of the officers not appropriated for, in accordance with tho work performed, tho importance of the representative duties ot the incumbent, and the cost of living at each post. The last consideration has been too often lost sight of in the allowances heretofore made. Tue compensation which may suffice for tlio decent maintenance of a worthy and capable officer in a posit on of onerous and representative trust at a post easilv accessible, find where the necessaries of life are abundant and cheap, may prove an inadequate pittance in distant lands, where tho better part of a year’s pay is consumed in reaching the pst of duty, and where the comforts of ordinary civilized existence can only bo obtained with difficulty and at exorbitant cost. I trust that, in considering the submitted schedule, no mistaken theory of economy will perpetuate a system which in the past lias virtually closed to deserving talent many offices where capacity and attainments of a high order are indispensable, and in not a few instances has brought discredit on our national character and entailed embarrassment and evon suffering on those deputed to uphold our dignity and interests abroad. In connection with this subject, I earnestly reiterate the practical necessity of supplying some mode of trustworthy inspection and report of the manner in which tho consulates are conducted. In the absence of such reliable information, efficiency can scarcely bo rewarded or its opposite corrected. Increasing competition i.n trade has directed attention to the value of the consular reports printed by the Department of State, and tne efforts of the Government to extend the practical usefulness of these reports have created a wider demand for them at homo and a spirit of emulation abroad. Constituting a record of the changes occurring in trade, and of the progress of the arts and inventions in foreign countries, they are much sought for by all interested in tho subjects which they embrace. NATIONAL FINANCES. The report of the Secretary of the Treasury exhibits in detail the condition of the public finances and of tne several branches of the Government related to his department. I especially direct tho attention of Congress to the recommendations contained in this and the last preceding report of the Secretary touching the s mpliftcation and amendment of tho laws relating to tho collection of our revenues, and in tho inter! st of economy and justice to the Government T hope they may bo adopted by appropriate legislation. The ordinary receipts of tho Government for the fiscal year ended Juno 3 , 1838 were $336,439,727.03. Of this amount $192,905,023.41 was received from customs, and SllO,805,930.48 from internal revenue, whilo the total receipts as hero stated were $13,749,020.88 greater than for the previous year, the increase from customs was but $11,434,081.10, and from internal revenues $4,407,210.94, making a gain in these items for the last year of $15,841,285.04, a falling off in other resources reducing tho total increase to the smaller amount mentioned The expense at the different custom houses of collecting this increased customs revenue was less than the expense attending the collection of such revenue for the preceding year by $190,0 8, and the increased receipts of internal revenue were collected at a cost to the Internal Revenue Bureau of $1.55,914.99 less than tlio expense of such collection for the previous year. The total ordinary expenses of tho Government for tiie fiscal year ended Juno 30, 18 0, wero $242,483,138.50, being less by $17,783,797 thin such expenditures for tho year preceding, and leaving a sorplus in tne treasury at the close .of the last fiscal year of $93,950,538.58, as against $03,463,771.27 at the close of the previous year, being an increase in such surplus of 3 ,492,817.29. The expenditures compare 1 with those of the preceding fiscal year, and classified, are as follows : For civil expenses, ■ year ending June 39, 1836, $21,955,8 4.01 ; year ending .Tune 30, 1885, $23,824,942.11. For foreign intercourse, 18S0, $133,232,088; 1885, $543,999,911. For Indians, 188 i, $609,915,817; 1885, $055,2 9,263. For pensions, 1885, $63,404,834.03; 188 i, $56,102,267,48. For military, including river and harbor improvements and arsenals. 1885, 831,321,152.7-1; 188-5, $12,670,578.47. For the navy, including vessels, machinery and improvements of navy yards, 1886, $13,907,887.71; 1885, 816,021.009.53. F’or interest on public debt, 1886, $59,08), 144.97 ; 1885, $51,380,258.47. For the District of Columbia, 1883, $2,892, 321.89 ; 1885, $3,449,450.9*. Miscellaneous expenditures. Including public buildings, lighthouses, and collecting the revenue, 1883, $67,936,783.04, 188*; $51,72.8 0 G. 21. For the current year, to end -Tune 30, 1837, the ascertained receipts up to October 1,183 with such receipts up to October 1, 1836, with such receipts estimated for the remainder of the year, amount to $356,000,000. The expenditures ascertained and estimatod for rhe same period are $265,009,090. indicated an anticipated surplus at tho closo of tho year of $90,009,000.

EXPORTS. Tho total value of tho exports from tlie United Stu es to foreign countries during the fiscal year is stated und compared with tha preceding year as follows: For the year ending June 31), 1888. June 30,1835. Domestic merchandise.soC>,o94, i 29 $726,6 2,910 Foreign merchandise... 13,56),301 15,5.10,809 Gold ..... 42,953,191 3,477,8.42 Silver \ 29,511,219 33,753.083 The value of some of our leading exports during the last fiscal yenr, ns compared with the value of tlie same for the year immediately preceding, is here given and furnishes information both interesting and suggestive: For the year •nding June 3j, 1383. June 30. 1885. Cotton and cotton manufactures $219,015,578 $213,799,049 Tobacco aud its manufacture 30,424,903 24,7(57.305 Breadstuff's 125,848,5 >8 160,370,822 Provisions 60,025,21 G 107,332,450 IMPORTS. ' Our imports during the last fiscal year, as compared with the previous year, were as follows : 1860. 1835. Merchandise $635,438,136 $579,590,05 i.BO Gold 2), 743,349 24,691,698.0 Silver 17 840,307 16,550,627.00 REDUCTION OF THE REVENUE. In my last annuil messa etj the Congress attention was uirectod to the fact that tho revemusof the Government exceed its actual needs, and it was suggested that legis lative action sh mid be taken to relieve the people from the unnecessary burden of taxation thus made apparent. In view of the pressing importance of the subject. I deem it m v duty to again urge its consideration. The income o; the Government, with its increased volume and through economies in its collection, is now more than ever in excess of public necessities The application of thu surplus to the payment of such portion of the public debt as is now at our option, subject to extinguishment, if continued at tho rate which has late ly prevailed, would retire that class

of ndebtedness within less than one year from this date. Thus a continuation of our present revenue would soon result in the receipt of an annual income much greater than necessary to meet Government expenses, with no indebtedn -SB upon which it coaid be applied. We should then be confronted with a vast quantity of money, the circulating medium of the people, hoarded in the Treasury, when it should be in their hands, or we should be drawn into wasteful public extravagance with all the corrupting national demoralization which follows in its train. THE SURPLUS. But it is not the simple existence of this and its attendant evils which furnish the strongest argument against „our present scale of federal taxation. Its worst phasj is the exaction of such a surplus through a perversion of the relations between the people and their Government —a dangerous departure from the rules which limit the right of federal taxation. Good government, of which every American citizen boasts, has for its objects the protection of e. ery person within its borders, with the greatest liberty consistent with the good of the country, and his perfect security in tho enjoyment of his earnings, with the least possible diminution for public needs. When more of the people’s sustenance is extracted through the form of taxation than is necessary to meet the just obligations of the Government and the expense of its economical administration, such action becomes ruthless extortion and a violation of the fundamental principles of a free Government The indirect manner in which these exactions are made has a tendency to conceal their true character and their extent. But we have arrived at a stage of superfluous revenue which has aroused the people to a realization of the fact that the amount raised professedly for the support of the Government, is p lid by th ;m as absolutely, if added to the price of the things which supply their daily wants, as if iifwas paid at fixed periods into the hands of tho tax-gatherer. Those who toil for daily wagi s are beginning to understand that capital, though sometimes vaunting its importance and clamoring for the protection end favor of tho Government, is dull und sluggish till, touched by the magical hand of labor, it spr.ngs into activity, furnishing an occasion for fedora] taxation, and gaining the value which enables it to bear its burden, and the laboring man is thought fully inquiring whether, in these circumstances, and considering the tribute he constantly nays into the public treasury as he supplies his daily wants, he receives bis fair share of advantages. There is also a suspicion abroad that tho surplus of our revenue indicates abnormal and exoptional business profits, which, under the system which produces such surplus, increase, without corresponding benefit to tho people at large, the vast accumulations of a few among our citizens wbo3e fortunes, rivaling tho wealth of the most favored in nnti-Demo-cratic nations, are not tho natural growtn of a steady, plain, and industrious republic. Our fanners, too, and those engaged directly and indirectly in supplying the products of agriculture, see that, day by day, an 1 as often as the daily wants of their households recur, they are forced to pay excessive and needless taxation, while their products struggle in foreign markets with tho competition of nations which, by allowing a freer exchange of production than we permit, enable their people lo sell for prices which distress the American farmer. As every patriotic citizen rejoices in tue constantly increasing pride of our people in American citizensh'p, and in the glory of our national achievemente and progress, a sentiment prevails that the leading-strings useful to a nation in its infancy may xvoll, to a great extent, be discarded in the present stage of American ingenuity, courage and fearless self-reliance. And for the privilege of indulging this s ntimont with iruo American enthusiasm, our citizens are quite xvillingto forego an idle surplus in tho public treasury. And all the people know that tho average rate of Federal taxation upon imports to-day, in timo of peace, is but littlo less, while upon some articles of necessary consumption it is actually moro than was imposed by the grievous burden willingly homo at a time when the Governm.nt nee led millions to maintain by a war the safety and integrity of the United States. REVISION OF THE REVENUE LAW. It lias been tho policy of tho Government to collect th < principal part of its revenues >y a tax upon imports, and no change in this policy is desirable. But the present conditi n of affairs constrains our people to demand that by a revision of our revenue laws the receipts of the Government shall be reduced to the necessary expense of its economical administration, and this demand should l e recognized and obeyed by the people’s representatives in the legislative branch of the Government. In readjust.ng the burdens of Federal taxation a sound public policy requires that such of our citizens a* havo built up large and important industries under present conditions should not be suddenly, aud to their injury, deprived of advantages to which they have adapted their Dewiness; but if the public good requires it, they should bo content with, such consideration as shall deal fa'rly and cautiously with their interests, while the just demands of tho people for r lief from needless taxa ion is honestly answered. A reasonable and t mely submission to such a dem nd should certainly be possible without disastrous shock to any int rest, and a cheerful concession sometimes averts abrupt and heedless action, often the outgrowth of impatience and delayed justice.

* THE AMERICAN LABORER. Duo regard should be also accorded in any proposed readjustment to the interests of American labor so far as they are involved. Wo congratulate ourselves that there is among us no Inhering class, fixed within unyieldin : bounds, and doomed under all conditions to the inexorable f cte of daily to.l. We recognize in labor a chief factor in the wealth of the republic, and we treat those who h ive it in their keeping as citizens entitled to tbe most careful regard end thoughtful attention. This regard and attention should be awarded them, not only because labor is the capital of eur workingman, justly entitled to its share of Government favor, but for the further and not less important reason that tho laboring man. surrounded by his family in his humble home, is virtually interested in all that cheapens tho cost of living and enables him to bring within his domestic circle additional comforts and advantages. This relation of the workiugmau to tbe revenue laws of the country, and the manner in which it palpably influences the question of wages, should not bo forgotten in the justifiable prominence given to tbe proper maintenance of the supply und protection of well paid labor. And tnese considerati «s suggest such an arrangement of Government revenues as shall reduco tbe expense of living, while it does not curtail tho opportunity for work nor reduce the compensation of American labor and injuriously affect its condition and tho dignified place it holds iu the estimation of our people. But our farmers and agriculturists, those who from tho soil produce the things consumed by all are perhaps more directly and plainly concerned than any other of ourcitizeDs in a just and careful system of Federal taxation. Those actually engaged in, and more remot ly cotauec ed with, this kind of work number nearly one-half of our population ; none labor harder or more oorrtinuouily than they. No enactments limit their hours of toil, and no interposition of the Government enhances to any great extent the value of tho.r prod icts; and yet for many of .tho neces ario3 and comforts of life, which the most scrupulous economy enables them to bring into their homos, and for their implem. nts of husbandry, they are obliged to pay a prio j largely increased by an unnatural profit, which, by the action of tho Government, is given to the more favo ed manufacturer. I recommend that, seeping in view all these considerations,,the increasing and unnocessafr surplus of national income annually accumulating be reieas d to the people, by an amendment to our revenue laws, which shall ch apen the price of the ue essarles of life, and give freer entrance to such imported materials as, by American labor, may be manufactured into marketable commodities. Nothing can be accomplished, however, in the direction of this much-ne<d.'tl reform unless tho subject is approached in a patriotic spirit of devotion to the interests of the entire country, and with a willing-ess to yield something for the whole good. THE PUBLIC DEBT. The sum paid upon the public debt during tho fiscal year ended Juno 30, ,1888, was $44,5 >1,043.88. Du rim the twelve mo iths ended October 31, 1888, three per cent, bonds were called for Redemption, amount ng to #l2 7,283,14 ,of which ®Bo, 43,204 was so called to answer the requirements of tbe law relating to the s nking fund, and $46.393, 00<) for the purpose of ro iucmg the debt by application of a purt of the surplus in the Treasury to that objeot. Of' the bonds thus called $102,289,130 became subject, under such calls, to redemption prior to November 1, 1888. Tbe remainder, amounting to