Democratic Sentinel, Volume 10, Number 45, Rensselaer, Jasper County, 10 December 1886 — THE MESSAGE. [ARTICLE]

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

f 250.136.450, matured tinder the calls alter that date. In addition to the amount subject to payment and cancellation prior to Nok ember 1, there were also paid before that day certain of these bonds with the interest thereon, amounting to $5,0 2,3.30, which were anticipated as to the maturity, of which $2,664,K.O had not been called. Thus $107,341,803 had been actually applied prior to the Ist of November, 1886, to the extinguishment of our bonded and interest-bearing debt, leaving on that day still outstanding the sum of $1,153,443,112. Of this amount $86,848,700 was still represented by 3 per cent, bonds. They, however, have been since November 14, or will at once be, further reduced by $22,606,150, being bonds which have been called, as already stated, but not redeemed and canceled before the latter date. SILVER COINAGE. During the fiscal year ended June 30, 1886, there were coined under the Compulsory Silver Coinage act of 1878, 29,838,849 silver dollars, and the cost of the silver used in such coinage was ’ $23,448,960.01. There had been coined up to the close of the previous fiscal year under the provisions of the law 203,882,554 silver dollars, and on the Ist day of December, 1886, the total amount of such coinage was $247,131,549. The Director of the Mint reports that at the time of the passage of the law of 1878 directing this coinage, the intrinsic value of the dollar thus coined was 94J4 cents each, and that on July 31, 1886, the price of silver reached the lowest stage ever known, so that the intrinsic or bullion price cf our standard silver dollar at that date was 72 cents. The price of silver on November 39 last was such as to make the dollars intrinsically worth 78 cents each. These differences iu the value of the coins represent but the fluctuations in the price of silver, and they certainly do indicate that compulsory coinage by the Government enhances the price of that commodity or secures uniformity in its value. CIRCULATING SILVER. Every fair and legal effort has been made by the Treasury Department to distribute this currency among the people. The withdrawal of United States treasury notes of small denominations %nd the issuing of small silver certificates have been resorted to in the endeavor to accomplish this result, in obedience to the will and sentiments of tne representatives of the people in Congress. On the 27th day of November, 18; 6, the people held of these coins or certificates representing them the nominal sum of $166,873,041, and we still have $79,464.345 in the treasury, as against about 8142,894,055 so in the hands of the people, and $72,865,376 remaining in the treasury one year ago. The Director of the Mint again urges the necessity of more vault room for the purpose of storing these silver dollars, which are not needed for circulation by the people. I have seen no reason to change the views expressed in my last annual message on the subject of this compulsory coinage, and I again urge its suspension on all the grounds contained in my former recommendation, re-enforced by the significant increase of our gold exportations during the last year, as appears by the comparative statement herewith presented, and for the further reasons that the more this currency is distributed among the people the greater becomes our duty to protect it from disaster; that we now have abundanco for all our needs; and that there seems but little propriety in building vault! to store such currency, when the only pretense for its coinago is the necessity of its use by the poople as a circulating medium. INDEFINITE REVENUE LAWS. The great number of suits now pending in the United States Courts for the Southern District of New York, growing out of the collection of customs revenue at the port of New York, and the number of such suits that are almost daily instituted, are certainly worthy the attention of Congress These legal controversies, based upon conflicting views by importers and the Collector as to the interpretation of our present complex and indefinite revenue laws might bo largely obviated by an amendment of those laws. But pending such amendment the present condition of thiß litigation should be relieved. There are now pending about 2,503 of these suits. More than 1,100 have been commenced within eighteen months, and many of the others have been at issue for more than twentyfive years. These delays subject the Government to loss of evidence, and prevent the reparation necessary to defeat unjust and fictitious claims, while constantly accruing interest threatens to double the demands involved. In the present condition of the dockets of the; courts, well-filled with private suits, and of the force allowed the District Attorney no greater than is necessary for the ordinary and current business of his office, these revenue litigations cannot be considered. In default of the adoption by Congress of a plan for the general reorganization of the Federal courts, as has heretofore been recommended I urge the propriety of passing a law peTmitting the appointment of an additional Federal Judge in the district where these Government suits have accumulated, so that by continued sessions of the courts devoted to the trial those cases may be determined. It is entirely plain that a great saving to the Government would be accomplished by such a remedy, and the suitors who have honest claims would not be denud justice through delay. THE ARMY. The report of the Secretary of War gives a detailed account of the administration of his department, and contains sundry recommendations for the improvement of the service, which I fully approve. The army consisted at the date of the last consolidated return of 2,103 officers and 24.916 enlisted men. The expenses of the department for the last fiscal year were $36,990,903.28, including $6,291,305.43 "for public works and river ann harbor improvements. I especially direct the attention of Congress to the recommendation that officers ho required to submit to an examination as a preliminary to their promotion. I seo no objection but many advantages in adopting this feature, which has operated so beneficially in our Navy Department as well as in some branches of the army. COAST DEFENSES. The Bubject of coast defenses and fortifications had been fully and carefully treated by the Board on Fortifications, whose report was submitted at the last session of Congress ; but no construction work of the kind recommended by the Board has been possible during the last year from the lack of appropriations for such purpose. The defenseless condition of our seacoast and lake frontier is perfectly palpable; the examinations made must convince us all that certain of our cities named in the report of the ooard should ba fortified, and that work on the most important of these fortifications should bo commenced at once. The work has been thoroughly considered and laid out, the Secretary of War reports, but ali is delayed in default of Congressional action. The absolute necessity, judged by all standards of prudence and foresight, of our preparation for an effectual resistance against the armored ships and steel gnns and mortars of modern construction, which may threaten the cities on our coasts. iS so apparent that I hope effective steps will be taken in that direction immediately. The valuable and suggestive treatment of this question by the Secretary of War is earnestly commended to the consideration of Congress. THE APACHE WAR. „ In September and October last the hostile A'pachies, who, under the leadership of Geronimo, had for eighteen months been on the war path, and during that time had committed many murders and been the cause of constant terror to the settlers of Arizona, surrendered to General Miles, the military commander who succeeded General Crook in the management and direction of their pursuit. Under the terms of their surrender, as then reported, and in view of the understanding which this murderous savage seemed to entertain of the assurances given them, it was considered best to imprison them in such manner aB to prevent their ever engaging in such outrages again, instead of trying tiaom for murder. Fort Pickens having been selected as a safe placo of confinement, all the adult males were sent thither, and will be closely guarded as prisoners. In the meantime the residue of the band who, though still remaining upon the reservation, were regarded as unsafe, and suspected of furnishing aid to those on the warpath, had been removed to Fort Marion. Tho ■women and larger children of the hostiles were also taken there, and arrangements have been made for putting the children of proper age iu Indian schools. THE WAR-VESSELS. The report of the Secretary of the Navy contains a detailed report of tho condition of his department, with such a statement of tho action needed to improve the same as should challenge the earnest attention of Congress. The present navy of the United States, aside from the ships in course of construction, consists of: First, fourteen singlc-turreted monitors, none of which are in commission nor at the present time serviceable. The batterios of these ships are obsolete, and they can only be relied upon as auxiliary ships in harbor defense,and then after such on expenditure upon them as might not be deemed justifiable. Second, five fourth-rate vessels of small tonnage, onl v one of which was

designed as a war vessel, and all of which are auxiliary merely. Third, twenty-seven cruising ships, three of which are built of iron and of small tonnage, and twenty-fonr of wood. Of these wooden vessels it is estimated by the chief constructor of the navy that only three will be serviceable beyond a period of six years, at which time it may be said that of the present naval force nothing worthy the name will remain. All the vessels heretofore authorized are under contract or in course of construction, except the armored ships, the .torpedo dynamite boats, and one crusier. As to the last of these, the bids were in excess of the limit fixed by Congress. ARXjpR AND GUN STEEL. The production in the United States of armor and gun steel'is a question which it seems necessary to settle at an early day, if tho armored war vessels are to be completed with those materials of home manufacture. This has been the subject of investigation by two boards and by two special committees of Congress within the last three years. The report of the Gun Foundry Board in 1884, of the Board of Fortifications made in January last, and the reports of the select committees of tbAwo houses made at the last session of Congress have entirely exhausted the subject so far as preliminary investigation is involved, and in their recommendation they are substantially agreed. • In the event that the present invitation of the department for bids to furnish such of this material as is now authorized shall fail to induce domestic manufacturers to undertake the large expenditures required to prepare f. r this new manufacture, and no other stejis are taken by Congress at its coming session, the Secretary contemplates, with dissatisfaction, the necessity of obtaining abroad the armor and the gun steel for the authorized ships. It would seem desirable that the wants of tho army and the navy in this regard should be reasonably met, and that by uniting their contracts such inducement might be offered as would result in securing the domestication of these important interests. THE POSTAL SERVICE. The affairs of the postal service show marked and gratifying improvement during the past year. A particular account of its transactions and condition is given in the report of the Postmaster General, which will be laid before you. The reduction of tho rate of letter postage in 1383, rendering the postal revenues inadequate to sustain the expenditures, and business depression also contributing, resulted in an excess of cost for the fiscal year ended June 30, 1885, of eight and one-third millions of dollars. An additional check upon receipts bv doubling the measure of weight in rating sealed correspondence, and diminishing one-half the chargs for newspaper carriage, was imposed by legislation, which took effect with the beginning of the past fiscal year; while the const mt demand of our territorial development and growing population for the extension and increase of mail facilitos and machinery necessitate a steady annual advance in outlay. The careful estimate of a year ago upon the rates of expenditure then existing contemplated the unavoidable augmentation of the deficiency in the last fiscal year by nearly two millions of dollars. The anticipated revenue for tho last year failed of realization by about $61,030, but proper measures of economy have so satisfactorily limited the growth of expenditures that the total deficiency, in fact, fell below that of 188 ’, and at that time the increase of revenue is in a gaining ratio over the increase of cost, demonstrating the sufficiency of the present rates of postage ultimately to sustain the service. This is the more pleasing because our people enjoy now both cheaper postage, proportionately to distances, and a vaster and more costly service than any other upon the globe. Retrenchment has been effected in the cost of supplies ; some expenditures unwarranted by law have ceased, and the outlays for mail carriage have been subjected to beneficial scrutiny. At the close of the late fiscal year the expense of transportation on star routes stood at an annual rate of cost less by over $560,000 than at the close of the previous year, and steamboat and mail messenger service at nearly $200,000 less. The service has been in the meantime enlarged and extended by tho establishment of new offices, increase of routes of carriage, expansion of carrier delivery conveniences, and additions to the railway mail facilities in accordance with tho growing exigencies of the country and the long established policy of the Government. The Postmaster General calls attention to the existing law for compensating railroads, and expresses the opinion that a method may be devised which will prove moro just to the carriers and beneficial to the Government; and the subject appears worthy of your early consideration. OCEAN SERVICE, The differences which arose during the year with certain of the ocean steamship companies have terminated in the acquiescence of all In the policy of the Government approved by Congress in the postal appropriation at its last session, and the department now enjoys the utmost service afforded by all vessels which sail from our ports upon either ocean—service generally adequate to the needs of our intercourse. RECOMMENDATIONS. The extension of the free delivery service as suggested by the Postmaster General has heretofore received my sanction, and it is to he hoped a suitable enactment may soon be agreed upon. The request for an appropriation sufficient to enable the general inspection of fourth-class offices lias my approbation. I renew my approval of the recommendation of the Postmaster General that another assistant he provided for the Postoffice Department, and I invite your attention to the several other recommendations in his report. FEDERAL PENITENTIARY. “ The conduct of the Department of Justice for the last fiscal year is duly detailed in the report of the Attorney General, and I invite the earnest attention of Congress to the same, and due consideration of the recommendations therein contained. In the report submitted by this officer to the last session of Congress, he strongly recommended the erection of a penitentiary for the confinement of prisoners convicted and sentenced in the United States courts, and he repeats the recommendation in his report for tho last year. This is a matter of very great importance and should at once receive Congressional action. United States prisoners are how confined in more than thirty different State prisons and penitentiaries situated in every part of the country. They are subjected to nearly as many different modes of treatment and discipline, and are far too much removed from the control and regulation of tho Government. So far as they are entitled to humane treatment and opportunity for improvement and reformation, the Government is responsible to them und society that these things are forthcoming. But this duty can scarcely be discharged without more absolute control and discretion than is possible under the present system. THE JUDICIAL SYSTEM. I again urge a change in the Federal judicial system to meet the wants of the people and obviate the delays necessarily attending the present condition of affairs in our courts. All are agreed that something should bo done, and much favor is shown by those well able to advise, to the plan suggested by the Attorney General at the last session of Congress, and recommended in my last annual message. This recommendation is here renewed, together with another made at the same time, touching a change in the manner of compensating district attorneys and marshals, and the latter subject is commended to Congress for its action iu the interest of economy to the Government, and humanity, fairness, and justice to our people. THE INDIAN BUREAU. The report of the Secretary of the Interior presents a comprehensive summary of the work of the various branches of the public service connected with his department, and the suggestions and recommendation* which it contains for the improvement of the service should receive your careful consideration. The exhibit made of the. condition of our Indian population and the progress of the work for their enlightenment, notwithstanding the many embarrassments which hinder the better administration of this important branch of the service is a gratifying and hopeful one. The funds appropriated for the Indian service fertile fiscal year just passed, with the available income from Indian land and trust monoys, amounting in all to $7,850,775.12, were ample for the service under the conditions and restrictions of' laws legulating their expenditure. There remained a balance cn hand on June 39, 1886, of $1,660,023.30, of which $1,337,708.21 are permanent funds, for fulfillment of treaties and other like purposes, and the remainder, $3'29,2>5.09, is subject to be carried to the surplus fund as required by law. The estimates presented for appropriations for the ensuing fiscal year amount to $5,908,673.64, or $442,386.20 less than those laid before Congress last year. The present system of agencios, while absolutely necessary and well adapted for the management of Indian affairs and for tho ends in view when it was adopted, is, in the present stage of Indi-

an management, inadequate, standing alone, for the accomplishment of an object which has become pressing in importance— the more rapid transition from tribal organizations to citizenship of such portions of the Indians as are capable of civilized life. When the existing system was adopted the Indian race was outside of the limits of organized States and Territories, and beyoud the immediate reach and operation of civilization, and all efforts were mainly directed to the maintenance of friendly relations and the preservation of peace and qniet on the frontier. All this is now changed. There is no such thing as the j Indian frontier. Civilization, with the busy ' hum of industry nnd the influence of Chris- | tianity, surrounds these people at every point. | None of the tribes are outside of the bounds of ' organized government and society, except that | the Territorial system has not been extended over that portion of the country known as the Indian Territory. As a race the Indians are no longer hostile, but may be considered as submissive to the control of the Government, as few of them only are troublesome. Except the fragments of several bands, all are now gathered upon reservations. It is no longer possible for them to subsist by the chase and the spontaneous productions of the earth. With an abundance of land, if furnished with the means and implements for profitable husbandry, their life of entire dependence upon Government rations from day to day is no longer defensible. Their inclination, long fostered by a defective system of control, is to cling to the habits and customs of their ancestors, and they struggle with persistence against the change of life which their altered circumstances press upon them. But barbarism and civilization can not live together. It is impossible that such incongruous conditions should co-exist on the same soil. They are s i>ortion of our people, aro under the "authority of our Government, and have a peculiar claim upon, and are entitled to, the fostering caro and protection of tho nation. The Government can not relieve itself of this responsibility until they are so far trained and civilized as to be able wholly to manage and care for themselves. The path in which they should walk must be clearly marked out for them, and they must be led or guided until they are familiar with the way and competent to assume the duties and responsibilities of our citizenship. Progress in this great work will continue only at the present slow pace and at great expense, unless the system and mothods of management are improved to meet the changed conditions and urgent demands of the service. The Agents having general charge and super-_ vision, in many cases, of more than 5,000" Indians, scattered over largo reservations, and burdened with details of accountability for funds and supplies, have time to look after the industrial training and improvement of a few Indians only: the many are neglected and remain" idle ana dependent—conditions not favorable for progress or civilization. Tho compensation allowed these Agents and the conditions of tho service are not calculateu to secure workmen who aro fitted by ability and skill to properly plan and intelligently direct the methods best adapted to produce the most speedy results and permanent benefits. Hence the necessity for a supplemental agency or system, directed to the end of promoting the general and more rapid transition of tribes from habits and customs of barbarism to tho ways of civilization. THE PUBLIC DOMAIN. The recommendations of the Secretary of the Interior and the Commissioner of the General Land Office, looking to the better protection of public lands and of the public surveys, the preservation of national forests, the adjudication of grants to States and corporations, and of private land claims, and the increased efficiency of the public lands service, aro commended to the attention of Congress. To secure the widest distribution of public lands in limited quantities among settlors of residence and cultivation, and thus make the greateat numbers of individual homes, was the primary object of the public land legislation in the early days of the Republic. This system was a simple one. It commenced with an admirable scheme of public surveys, by which the humblest citizen could identify tho tract upon which he wished to establish his home. The price of lauds was placed within the reach of all the enterprising, industrious and honest pioneer citizens of the country. It was soon found, however, that the object of the laws was perverted under the system of cash sales from a distribution of land among tho people to an accumulation of land capital by wealthy and speculative persona. To check this tendency a preference right of purchase was given to 6ettlers on the land, a plan which culminated in the general pre-emption act of 1811. The foundation of this system was actual residence and cultivation. Twenty years later the homestead laws were devised to more surely place actual homes in the possession of actual cultivators of the soil. The land was given without price, the solo condition being residence, improvement and cultivation. Other laws have followed, each designed to encourage the acquirement and use of land in limited individual quantities, but in later years these laws, through vicious administrative methods and under changed conditions of communication and transportation, have been so evaded and violated that their beneficent purpose is threatened with entire defeat. The methods of such evasions and valuations are set forth in detail in the roports of the Secretary of tho Interior and Commissioner of tho General Land Office. The rapid appropriation of our public lands without bona fide settlements or cultivation, and rot only without intention of residence, but for the purpose of their aggregation in large holdings, iu many cases in the hands of foreigners, invites the serious and immediate attention of Congress. The energies of the Land Department have been devotod during the present administration to remedy defects and correct abuses in the public land service. The results of these efforts aro so largely in the nature of reforms in tho procoss and methods of our land system as to prevent adequate estimates, but it appears, by a compilation from the reports of the Commissioner of the General Land Office, that the immediate effi ct in leading cases which have come to a final termination has been the restoration to the mass of public lands of 2,750,000 acres; that 2,370,000 acres are embraced in investigations now pending before the department or the courts, and that action of Congress has been asked to effect the restoration of 2,790,003 acres additional, besides-which 4,0)0,090 acres Lave been withheld from reservation and the rights of entry thereon maintained. I recommend the REPEAL OF THE PRE-EMPTION AND TIMBERCULTURE ACTS, and that the homestead laws be so amended as to better secure compliance, and cultivation for the period of five years from date of entry without commutation or provision for speculative relinquishment. I also recommend the repeal of tho desert land laws, unless it shall bo tne pleasure of Congress to so amend these laws as to render them less liable to abuse. The facility with which transfers are made results In land accumulation instead of land distribution, and that the public domain be secured to settlers, it may be deemed advisable to provide by legislation some guards and checks upon the alienation of vested rights and lauds covered thereby until patents issue. FENCING PUBLIC LANDS. Last year an executive proclamation was issued directing the removal of fence* which inclosed the public domain. Many of these have been removed, in obedience to such order, but much of the public land still remains within the lines of these unlawful fences. The ingenious methods resorted to in order to continue these trespasses, and the hardihood of the pretenses by which, in some cases, such inclosures are justified, are fully detailed in the report of the Secretary of the Interior. The removal of the fences still remaining, which inclose public lands, will be enforced with all the authority and means with which tho executive branch of the Government is or shall be investod by the Congress for that purposo. GOVERNMENT PENSIONS. The report of the Commissioner of Pensions contains a detailed and most satisfactory exhibit of the operations of tue Pension Bureau. During the last fiscal year the amount of work done was the largest in any year since the organization of the bureau; and it has been done at less cost than during the previous year in every division. On the 30th dav of June, 1886, there were 365,783 pensioners on"the rolls of the bureau. Since 1861 there have been 1,018,735 applications for pensions filed, of which 78,834 were based upon service in the war Of 1812. There were 621,751 of these applications i allowed, including 60,178 to the soldiers of 1812 and their widows. The total amount paid for pensions since 1861 is $808,024,817.57. The number of new pensions allowed during the year ended June 30, 1886, is 40,857, a larger number than has been allowed in any year save one since 1861. The names of 2,229 pensioners which had been previously dropped from the pension roll were restored during the year, and after deducting those dropped within the same time lor various causes, a nat increase

remains for the year of 20,658 names. From January 1, 1861, to December 1, 1885, 1,967 private pension acts had been passed. Since the last-mentioned date, and during the last session of Congress. 644 such acts became laws. * SPECIAL PENSION LAWS. It seems to me that uo one can examine our pension establishment and its operations without being convinced that through its instrumentality justice can bo very nearly done to all who are entitled under present laws to the pension bounty of the Government. But it is undeniable that cases exist well entitled to relief in which the Pension Bureau is powerloss to relieve the really worthy cases. Of this class are such as only lack by misfortune the kind or quantity of proof which the law and regulations of tho bureau require, or which, though their merit is apparont, for some reason or other, can hot be justly dealt with through goneral laws. These conditions tully justify application to the Congress and special enactments, but resort to the Congress for a special pension act to over-rule the deliberate>uud careful determination of the Pension Bureau on the merits, or to secure favorable action when it could not be oxpeoted under tho most liberal execution of general laws, it must be admitted opens the door toallowance of questionable claims, and presents to the legislative and executive branches of the Government applications coucededly not within the law and plainly devoid of merit, but 60 surroundou by sentiment aud patriotic feeling that they are hard to resist FRAUDULENT PENSION CLAIMS. I suppose it will not be denied that many claims for pension are made without merit, and that many havo been allowod upon fraudulent representations. This has been declared from the Pension Bureau, not only in this but in prior administrations. The usefulness and the justioe of any system for tho distribution of pensions depend upon the equality and uniformity of its operation. It will be seen from the report of the Commissioner that there aro now paid by the Government 131 different rates of pension. The Commissioner estimates, from the best information he can obtain, that 9, uO of those who have served in the army and navy of the Unit 3d States aro now supported in whole of iu part from public funds or by organized ohuvlties, exclusive of those in soldiers’ homes under the direction and control of the Government. Only 13 per cent, of those aro pensioners, while, of tlio entire number of men furnishod for tin late war, something like 20 per cent., including their widows and relatives, have been or now are in the receipt of pensions. Tho American people, with a patriotic and grateful regard for our ex-soldiors, too broad 'and too sacred to be monopolized by any special advocates, are not only willing, but anxious that equal and exact justice should bo done to all honest claimants for pensions. In thoir sight the friendless and destitute so'dier dependent on public charity, if otherwise entitled, has precisely the same right to share in the provision made for those who fought their country's battles, as those bettor able, through friends and influence, to push their claims. Every pension that is granted under our present plan upon any other grounds than actual service, injury, or diseaso incurred in such service, and every instance of tho many in which pensions are increased on other grounds than the merits of the claim, work an injustice to tho bravo and crippled, but poor and friendless, soldier, who is neglected, or who must bo content with the smallest sum allowod under general laws. There Rre far too many neighborhoods in which aro found glaring cusos of inequality of treatment in the matter of pensions; and they are largely duo to a yielding in the Pension Bureau to importunity on the part of those other than the pensioner, who are especially interested, or they arise from special ucts passed for tho benefit of individuals. The men who fought side by si le should stand side by side when they participate in a grateful nation’s kind remembrance. Every consideration of fairness and justice to our cx-soldiors, aud tho protection of tho patriotic instincts of our citizens from perversion and violence, point to the adoption of a pension system broad and comprehensive enough to cover every contingency, and which shall make unnecessary an objectionable volumo of special legislation. As long as we adhero to the principle of granting pensions for service, and disability as the result of the service, the allowance of pensions should bo restricted to cases presenting tlieso features. Every patriotic heart responds to a tender consideration for those who, having served thoir country long and well, aro reduced to destitut on and dependence, not as an incident of their servico, but with advancing age, or through sickness, or misfortune. We are all tempted by tho contemplation of such a condition to supply relief and are often impatient of tho limitations of public duty. Yielding to no one in tho desire to indulge this feeling of consideration, I can not rid myself of the conviction that if those ox-soldiers aro to be relieved they aud their cause aro entitled to the benofit of nil enactment under which relief may be claimed as a right, anil that such relief should bo granted under tho sanction of law, not in evasion of it; nor should such worthy objects of care, all equally entitled, be remitted to the unequal operation of sympathy, or tho tender mercies of social and political influence, with their unjust discriminations. The discharged soldiers and sailors of the country aro our fellow-citizens and interested with us in tho passage and faithful execution of wbolesomo law. They can not be swerved from their duty of citizenship by artful appealß to their spirit of brotherhood, born of common peril and suffering, nor will they exact as a test of devotion to their welfare a willingness to neglect public duty in their behalf. THE PATENT OFFICE. On the 4th of March, 1885, the current business of the Patent Office was on an average five and a half months behind. At the close of the last fiscal year such current work was but three months in arrears, and it is asserted and believed that in the next few months the delay in obtaining an examination of an application for a patent will be but nominal. The number of applications for patents during the last fiscal year, including re-issues, designs, trade-marks and labels, equal 40,678, which is considerably in excess of the number received during the preceding year. The receipts of the Patent Office during the year aggregate $1,250,167.80, enabling the office to turn into the Treasury, over and above all expenditures, about f1G3,701.7J. The number of patents granted during the last fiscal year, including reissues, trade-marks, designs, and labels, was 29,610—a number aso quite largely in excess of that of any preceding year. The report of the Commissioner shows the office to be in a prosperous condition, and consequently increasing in its business. No increase of force is asked for. The amount estimated for the year ending June 30, 1887, was $853,960. The amount estimated for the fiscal year ending June 30,1888, is $778,779. THE SUBSIDIZED RAILROADS. The Secretary of the Interior suggests a change in the plan for tho payment of tho indebtedness of the Pacific subsidized roads totheGovernnaent. His suggestion has the unanimous indorsement of the persons selected by the Government to act as Directors of these roads and protect the interests of the United Btates in the board of direction. In considering the plan proposed, the sole matters which should be taken into account, in my opinion, are the situation of the Government as a creditor, and the surest way to secure the payment of the principal and interest of its debt. INTERSTATE TRAFFIC. By a recent decision of the Supreme Court. of the United States it has been adjudged that the laws of the several States are inoperative to regulate rates of transportation upon railroads, if such regulation interferes wiih the rate of carriage from one State into another. This important field of control and regulation having been thus left entirely unoccupied, the expediency of Federal action upon the subject is worthy of consideration. CAPITAL AND LABI R. The relations of labor to capital and of laboring men to their employers are of the utmost concern to every patriotic citizen. When these are strained and distorted, unjustifiable claims are apt to be insisted upon by both interests, and in tho controversy which results the welfare of all and tho prosperity of the country are jeopardized. Any intervention of the General Government, within the limits of its constitutional authority, to avert such a condition should be willingly accorded. In a special message transmitted to Congress at its last session I suggested the enlargement of our present Labor Bureau and adding to its present functions the power of arbitration in cases Where differences arise between employes and employers. When these differences reacb such a stage as to result in the nten uption of commerce between the States the application of this remedy by the General Government might be regarded as entirely within its constitutional powers; and I think we might reasonably hope that such arbitration commission, if carefully selected and if entitled to the confidence of tbe parties to be affected, would be voluntarily called to tbe settlement of controversies nt lasr extent and not necessarily

within tho domain of Federal regulation. I am of the opiniou that this suggestion is worthy the attention of Congress. But after all has l>een done by the passage of laws, either Federal or State, to relieve a situation full of solicitude, much more remains to be accomplished by the reinstatement and cultivation of a true American sentiment, which recognizes the equality of American citizenship. This, in the light of our traditions and in loyalty to the spirit of our institutions, would teach that a hearty co-operation on the part of all interests is the surest path to national grontness and the happiness of all our people; that capital should, in recognition of the brotherhood of our citizonship, and in & spirit of American fairness, geuerouslA accord to labor its just compensation andTOnsideration, and that contented labor is capital's b-st protection and faithful ally. It would teach, too, that the diverse situations of our people are inseparable from our civilization; that every citizen should, in his sphere, be a contributor to tho general good; that capital <fce» not necessarily tend to the oppression of labor, and that violent disturbances and disorders alienate from their promoters true American " sympathy aud kindiy feeling. THE AGRICULTURAL BUREAU The Department of Agriculture, representing the oldest nnd largest of our industries, is subserving well tba purpose of its organisation. By tho introduction of new subjects of farming enterprise, and by opening new sources of agricultural wealth and the dissemination of early information concerning production and pHces, it lias contributed largely to the country's prosperity. Through this agency, advanced thought and investigation touohing the subjects it has in charge, should, among other things, bo practically applied to the home production, at a low cost, of articles of food which are now imported from abroad. Such on innovation will necessarily, of course, in the beginning, be within the domain of intelligent experiments, and the subject in every stage should receive all possiblo encouragement from the Government. The interests of millions of our citizens engaged in involved in an enlargement of the results of their labor; and a zealous regard for their welfare should ho a willing tribute to those whose productive returns nro a main source of our progress and power. CATTLE niSEASK. The existence of pleuro pneumonia among tho cattle of various States lias lod to burdensome, and, in some casus, disaatious restrictions in an important branch of our commerce, threatening to affect tho quantity and quality of our food supply. This is a matter of such importance, and of suoh far-reaching consequences, that I hopo it will engage the serious attention of the Congress to the end that Bitch a remedy may bo applied as to the limits of a constitutional delegation of power to the General Government will permit I commend to the consideration of tho Congress tho report of tho Commissioner, and his suggestions concerning the interests intrusted to his care. CIVIL-SERVICE REFORM. The continued operation of tho law relating to our civil service has added to the most convincing proofs of its necessity and usofi lness. It is a fact worthy of note that every public officer who has it just idea of his duty to tiio 'people testifies to tho value of this reform. Its stanchest friends aro found among those who understand it host, aud its wannest supporters aro those who aro restrained and protected by its requirements. The moaning of such restraint and protection is not appreciated by those who want places under tho Government, regardless of merit and efficiency, nor by those who insist that the selection for such places should rest upon a propor credential showing active partisan work. They mean to public officers the only opportunity afforded thorn to atteiuTto jmblic business, and they mean to the good people of the country the better p rformance of the work of their Government. It is exceedingly strange that the scope and nature of this reform are bo littlo understood, and that so many things not included within its plan are called by its name. When cavil yields more fully to examination, tlie system will have large additions to tho number of its friends. Our civil service reform may bo imperfect in sowo of its details ; it may bo misunderstood and opposed; it lhay not always bo faithfully appliod; its designs may somotiinoß miscarry through mistake or willful intent; it may Bomotimes tremble under tho assaults of its enemies, or languish under tho misguided zoal of impracticable friends, but if the peoplo of this country ever submit to the bunisliment of its underlying principle from tho operation of their Government, they will abandon tho surest guuranteo of the safety and success of American institutions. I Invoke for this reform the cheerful and ungrudging support of Congress.. I renow my recommendation, made last year, that the Commissioners he nmdo. equal to otherollicers of the Government having like duties and responsibilities, and I hope that such reasonable appropriations may be made, as will enable them to increase the usefulness of the cause t my have charge of. FREEDMAN’S BANK DEPOSITORS. I desire to call the attention of the Congress to a plain duty which tho Government owes to the depositors in tho Freedman’s Savings and Trust Company. This company was chartered by tho Congress for tho benefit of the most illiterate and humble of odr people, and with tho Intention of encouraging them I in industry and thrift. Most es tjie branches were presided over by officers holding tho commissions and clothed in the uniform of tho United States. These and other circumstances reasonably, I think, led those simple people to suppose that tho invitation to deposit their hard-earned savings in this institution implied an understanding on tho part of their Government that their money should bo safely kept for them. When thin company failed it was liable in the sum of 82,93i;9‘i5 f . 22 to (11,131 depositors. Dividends amounting in tho g.ggrogato to 02 per cent, have boon declared, arid the sum called for and paid of such dividends seems to be 51,043,181.72. This sum, deducted from tho entire amount of deposits, loaves #1,291,744.50 still unpaid. I’ast, experience has shown that quite a large part of tliia sum will not be called for. There are assets still on hand amounting to tho estimated suin of #1(5,000. I think the remaining thirty-eight per cent, of such of these deposits as have claimants should be paid by the Government upon principles of equity and fairnoss. Tho report of the Commissioners, soon to be laid before Congress, will give more satisfactory details on this subject. DISTRICT OF COLUMBIA. The control of the affairs of the District of Columbia having been placed in the hands of purely executive officers, while the Congress still retains all legislative authority relating to its government, it becomes my duty to make known tho pressing needs of the District, aud recommend their consideration. The laws of tho District appear to bo in an uncertain and unsatisfactory condition, aud their codification or revision is much needed. Dnring the past year one of the bridges leading from the District to the State of Virginia became unfit {or use and travel upon it was forbidden. This leads me to suggest that the improvement of all the bridges crossing the Potomac and its branches from the City of Washington is worthy of the attention of Congress. The Commissioners of the District represent that the laws regulating the sale of liquor and granting licenses therefor should be at once amended, and that legislation is needed to consolidate, define, aud enlarge the scope and powers of the charitable, and penal institutions within tho District. I suggest that the Commissioners be clothed with the power to make, within fixed limitations, po- > lice regulations. I believe this jiower granted. , and carefully guarded would tend to subserve the good order of the municipality. It seems that trouble still exists growing out of the occupation of the streets and avenues by cortain railroads having their termini in the, city. It is very important that 6ucb laws should be enacted upon this subject as will secure to tho railroads all iho facilities thoy require for the transaction of their business, and at the same time protect citizens from injury to their persons or property. The Commisioners again oomplain that the accommodations afforded them for the necessary offices for District business and for the safe keeping of valuable books and papers, are entirely inefficient. I recommend that this condition of affairs be remedied by Congress, and> that suitable quarters be furnished for the noeds of the District Government. CONCLUSION. In conclusion, I earnestly invoke such wise action on the part of the people’s legislators ns will subserve tho public good, and demonstrate, during the remaining days of the Congress as at present organized, its ability and inclination to so meet the people's needs that it shall be gratefully remembered by an expectant constituency. ’■

GROVER CLEVELAND.

Washington, December 6,1886. Senator Mahone plays a fine game at billiards, but billiards do not count so much as good dinners in politics.