Indianapolis Journal, Indianapolis, Marion County, 9 December 1885 — Page 2

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regard to thin class of questions will doubtless lend to a satisfactory understanding. The dispute of Germany and Spain, relative to iha domination of tbs Caroline islands, has attracted the attention of this government, by rea ■on of extensive interests of American citizens ksvtng grown up in those parts during the past thirty years. and because the ques lion of ownership involves jurisdiction of matters affecting the status of our citizens under civil and criminal law. Whilst standing wholly aloof from the proprietary issues raised between the powers, to both of which the l nited States are friendly, this government expects that nothing in the present contention shall unfavorably affect onr citizens resident in the islands, tMhasso informed the governments of Spain and Germany. The marked goodwill between the United States and Great Britain ha3 been maintained during tbo past year. The termination of the fishing clauses of the treaty of Washington, in pursuance of the joint resolution of March 3, 1883, must hare resulted in the abrupt cessation, on the Ist of July of this year, in the midst of their ventures, ot the operations of citizens of the United States engaged in fishing in BritishAtneriean waters, but for a diplomatic understanding reached with her Majesty's government in June last, whereby assurance was obtained that no interruption of those operations should take place daring the current fishing season. In the interest of good neighborhood, and of the commercial intercourseof adjacent communities, the question of the North American fisheries is one of much importance. Following out the intimation given by me when the extensory arrangement above described was negotiated, I recommend that the Coneress provide for the appointment of a commission, in which the governments of the United States and Great Britain shall be respectively represented, charged with the consideration and settlement, upon a just, equitable and honorable basis, of the entiro question of the fishing rights of the two governments and their respective citizens on the coasts of the United States and British North America. The fishing interests, being intimately related to other general questions dependent upon contiguity and intercourse, consideration thereof in all their equities might also properly come within the purview of such commission, and the fullest latitude of expression on both sides should be permitted. The correspondence in relation to the fishery rights will be submitted. The arctic exploring steamer Alert, which was generously given by her Majesty’s government to aid in the relief of the Greely expedition, was, after the successful attainment of that humane purpose, returned to Great Britain, in pursuance of the authority conferred by the act of March 3, 1885.

The inadequacy of the existing engagements for extradition between the United States and Great Britain has been long apparent. The tenth article of the treaty of 1842, one of the earliest compacts in this regard entered into by us, stipulated for surrender in respect of a limited number of offenses. Other crimes, no less inimical to the social welfare, should be embraced, and the procedure of extradition brought in harmony with present international practice. Negotiations with her Majesty’s government for an enlarged treaty of extradition have been pending sinco 1870, and I entertain strong hopes that a satisfactory result may be soon attained. The frontier line between Alaska and British Columbia, as defined by the treaty of cession with Russia, follows the demarkation assigned in a prior treaty between Great Britain and Russia. Modern exploration discloses that this ancient boundary is impracticable as a geographical fact- In the unsettled condition of that region the question has lacked importance, but the discovery of mineral wealth in the territory the line is supposed to traverse admonishes that the time has come when an accurate knowledge of the boundary is needful to avert jurisdictional complications. I recommend, therefore, that provision be made for a preliminary reconnoissance, by officers of the United States, to the end of acquiring more precise information on the subject. I have invited her Majesty’s government to consider with the United States the adoption of a more convenient line, to be established by meridiau observations or by known geographical features, without the necessity of an expensive survey of the whole. The late insurrectionary movements in Hayti having been quelled, the government of that republic has made prompt provision for adjusting the loss suffered by foreigners because of hostilties there, and the claims of certain citizens of the United States will be in this manner determined. The long-pending claims of the two citizens of the United States, Pellitier and Lazare, have been disposed of by arbitration, and an award in favor of each claimant has been made, which, by the tsrms of the engagement, is final. It remains for Congress to provide for the payment of the stipulated moiety of the expenses. A question arose with Hayti during the past year, by reason of the exceptional treatment of an American citizen, Mr. Van Bokkelen, a resident of Port-au-Prince, who, on suit by creditors residing in the United States, was sentenced to imprisonment, and, under the operation of a Haytian statute, was denied the relief secured to a native Haytian. This government asserted bis treaty right to equal treatment with natives of Hayti in all suits at law. Our contention was denied by the Haytian government, which, however, while still professing to maintain the ground taken against Mr. Van Bokkelon's right, terminated the controversy by setting him at liberty without explanation. An international conference, to consider the means of arresting the spread of cholera and other epidemic diseases, was held at Rome, in May last, and adjourned to meet again on further notice. An expert delegate on behalf of the United States has attended its sessions, and will submit a report. Our relations with Mexico continue to be most cordial, as befits those of neighbors between nffiom the strongest ties of friendship and commercial intimacy exist as the natural and growing consequence of our similarity of institutions and geographical propinquity. The relocation of the boundary line between the United States and Mexico, eastward of the Rio Grande, under the convention of July 29, 1882, has been unavoidably delayed, but I apprehend no difficulty in securing a prolongation of the period for its accomplishment. The lately-concluded commercial treaty with Mexico still awaits the stipulated legislation to carry the provisions into effect, for which one year’s additional time has been secured by a supplementary article, signed in February last, and since ratified on both sides. As this convention, so important to the commercial welfare of the two adjoining countries, has been constitutionally confirmed by the treaty-making branch, I express the hope that legislation needed to make it effective may not be long Relayed. The large influx of capital and enterprise to Mexico from the Uuited States continues to aid in the development of the resources and in augmenting the material well-being of otir sister republic. Lines of railway penetrating to the heart and capital of the country bring the two people into mutually beneficial intercourse, and enlarged facilities of transit add to profitable commerce, create new markets and furnish avenues to otherwise isolated communities. I have already adverted to the suggested construction of a ship railway across the narrow formation of tho territory of Mexico, at Tehuantepec. With the gradual recovery of Peru from the effects of her late disastrous conflict with Chili, and with the restoration of civil authority in that distracted country, it is hoped that the pending war claims of our citizens will be adjusted. In conformity with notification given by the government of Peru, the existing treaties of commerce and extradition between the United States and that countrv will terminate March 31, 1886. Our good relationship with Russia continues. An officer of the navs*, detailed for the purpose, is now on his way to Siberia, bearing the testimonials voted by Congress to those who generously succored the survivors of the unfortunate Jeannette expedition. It is gratifying to advert to the cordiality of our intercourse with Spain. The long-pending claim of the owners of the ship Masonic, for loss suffered through the admitted dereliction of the Spanish authorities in the Philippine islands, has been adjusted by arbitration ami an indemnity awarded. The principle of arbitration in such cases, to which the United States have long and consistently adhered, thus receives a fresh and gratifying confirmation. Other questions with Spain have been disposed of or are under diplomatic considera tion, with a view to just and honorable settle merit. The operation of the commercial agree rnent with Spain of Jan. 2 and Feb. 13, 1884, has been found inadequate to the commercial needs of the United States and the Spanish Antilles, and the terms of the agreement are subjected to conflicting interpretations in those islands.

for a full treaty not open to these objections, and in the line of the general policy touching the neighborly intercourse of proximate commnnitiea, to which I elsewhere advert, and aiming, moreover, at the removal of existing burdens and annoying restrictions; and although a satisfactory termination is promised, I am compelled to delay its announcement. An international copyright conference was held at Berne, in September, on the invitation of the Swiss government. The envoy of the United States attended as a delegate, but refrained from committing this government to the results, even by signing tho recommendatory protocol adopted. The interesting and important subject of international copyright has been be fore you for several years. Action is certainly desirable to effect the object in view, and while there may be questions as to the relative advantage of treating it by legislation or by specific treaty, the matured views of tho Berne conference cannot fail to aid yonr consideration of the subject. The termination of the commercial treaty of 1862, between the United States and Turkey, has been sought by that government While there is question as to the sufficiency of the notice of termination given, yet as the commercial rights of our citizeus in Turkey come under the favored nation guarantees of the prior treaty of 1830, and as equal treatment is admitted by the Porte, no inconvenience can result from tho assent of of this government to the revision of the Ottoman tariffs, in which the treaty powers have been invited to join. Questions concerning our citizens in Turkey may be affected by the Porte’s non-acquiescence in the right of expatriation, and by the imposition of religious tests as a condition of residence, in which this government cannot concur. The United States must hold in their intercourse with every power that the status of their citizens is to be respected, and equal civil privileges accorded to them without regard to creed, and affected by no considerations save those growing out of domiciliary return to the land of original allegiance, or of unfulfilled personal obligations which may survive, under municipal laws, after such voluntary return. The negotiation with Venezuela relative to the rehearing of the awards of the mixed commission constituted under the treaty of 1860, was resumed in view of the recent acquiescence of the Venezuelan envoy in the principal point advanced by this government, that the effects of the old treaty could only be set aside by the operation of anew convention, a result in substantial accord with the advisory suggestions contained in the joint resolution of March 3, 1883, has been agreed upon, and will shortly be submitted to the Senate for ratification.

COMMERCIAL TREATIES. The commercial relations of the United States with their immediate neighbors and with important areas of traffic near our shores, suggest an especially liberal intercourse between them and us. Following the treaty of 1883, with Mexico, which rested on the basis of a reciprocal exemption from customs duties, other similar treaties were initiated by my predecessor, recognizing the need of less obstructed traffic with Cuba and Porti Rico, and, met by the desire of Spain to succor languishing interests in the Antilles, steps were taken to attain those ends by a treaty of commerce. A similar treaty was afterwards signed by the Dominican Republic. Subsequently, overtures were made by her Britannic Majesty’s government for a like mutual extension of commercial intercourse with the British West Indian and South American dependencies, but without result.

On taking office, I withdrew, for re-examina-tion, the treaties signed with Spain and San Domingo, then pending before the Senate. The result has been to satisfy mo of the inexpediency of entering into engagements of this character not covering the entire traffic. These treaties contemplated the surrender by the United States of large revenues for inadequate consideration. Upon sugar alone duties were surrendered to an amount far exceeding all the advantages offered in exchanga Even were it intended to relieve our consumers, it was evident that, so long as the exemption bill partially covered our importation, such relief would be illusory. To relinquish a revenue so essential seemed highly improvident at a time when new and large drains upon the Treasury were contemplated. Moreover, embarrassing questions would have arisen under the favored nation clauses of treaties with other nations. Asa further objection, it is evident that tariff regulation by treaty diminishes that independent control over its own revenues which is essential for the safety and welfare of any government. Emergency calling for an increase of taxation may, at any time, arise, and no engagement with a foreign power should exist to hamper the action of the government By the fourteenth section of the shipping act, approved June 26, 1884, certain redactions and contingent exemptions from tonnage dues were made as to vessels entering ports of the United States from any foreign port in North and Central America, the West Indiajpslands, the Bahamas and Bermudas, Mexico, and the isthmus as far as As pinwall and Panama. The governments of Belgium, Denmark, Germany, Portugal, and Sweden and Norway, have asserted, under the favored nation clause in fheir treaties with the United States, a claim to like treatment in respect to vessels coming to the United States from their home ports. This government, however, holds that the privileges granted by the act are purely geographical, enuring to any vessel of any foreign power that may choose to engage in traffic between this country and any port within the defined zone, and no warrant exists, under the most favored nation clause, for the extension of the privileges in question to vessels sailing to this country from ports outside the limitation of the act. Undoubtedly the relations of commerce with our near neighbors, whose territory forms so long a frontier line, difficult to be guarded, and who find in our country, and equally offer to us natural markets, demand special and considerate treatment. It rests with Congress to consider what legislative action may increase the facilities of intercourse which contiguity makes natural and desirable.

THE CONSULAR SERVICE. I earnestly urge that Congress recast the appropriation for the maintenance of the diplomatic and consular service on a footing commensurate with the importance of our national interests. At every post where a representative is necessary, the salary should be so graded as to permit him to live with comforL With the assignment of adequate salaries, the so called notarial extraofficial fees, which our officers abroad are now permitted to treat as personal perquisites, should be done away with. Every act requiring the certificate and seal of the officer should be taxable at schedule rates, and the fee therefor returned to the Treasury. By restoring these revenues to the public use the consular service would be self supporting, even with a liberal increase of the present low salaries. In further prevention of abuses, a system of consular inspection should be instituted. The appointment of a limited number of secretaries of legation at large, to be assigned to duty wherever necessary, and, in particular, for temporary service at missions which, for any cause, may be without a head, should also be authorized. I favor, also, authorization for the detail of officers of the regular service as military or naval attaches at legations. Some foreign governments do not recognize the union of cousular with diplomatic functions. Italy and Venezuela will only receive the appointee in one of his two capacities; but this does not prevent the requirement of a bond and submission to the responsibilities of an office whose duties he cannot discharge. The superadded title of consulgeneral should be abandoned at all missions. I deem it expedient that a well-devised measure for the reorganization of the extraterritorial courts in Oriental countries should replace the present system, which labors under the disadvantage of combining judicial and executive functions in the same office. In several Oriental countries generous offers have been made of premises for housing the legations of the United States. A grant of land for that purpose was made, some years since, by Japan, and has been referred to in the annual messages of nay predecessor. The Siamese government has made a gift to the United States of commodious quarters in Bangkok. In Corea the late minister was permitted to purchase a building from the government for legation use. In China the premises rented for the legation are favored as to local charges. At Tangier the house occupied by our representative has been for many years the property of this government, having been given for that purpose in 1822 by the Sultan of Morocco. 1 approve the suggestion, heretofore made, that, in view of the"conditjons of life and administration in the Eastern

THE INDIANAPOLIS JOURNAL, WEDNESDAY, DECEMBER 0, ISBS.

Corea, Siam, and perhaps Persia, should be owned and furnished by the government, with a view to permanency and security. To this end, I recommend that, authority be given to accept the gifts adverted to in Japan and Siam, and to purchase in the other countries named, with provision for furniture and repairs. A consideral saving in rentals would result. Interoceanlc Transit. The interest of the United States in a practicable transit across the strip of land separating the Atlantic from the Pacific has been repeatedly manifested during the last half century. My immediate predecessor caused to be nego tiated with Nicaragua a treaty for the construction by, and at the sole cost of the United States, of a canal through Nicaraguan territory, and laid it before the Senate. Pending the action of that body thereon, I withdrew the treaty for reexamination. Attentive consideration of its provisions leads me to withhold it from resubmission to the Senate. Maintaining, as I do, the tenor of a line of Presidents from Washington’s day, which proscribes entangling alliances with foreign states, I do not favor the acquisition of new and d’stant territory, or the incorporation of remote interests with our own. The laws of progress are vital and organic, and we must be conscious of that irresistible tide of commercial expansion which, as the concomitant of our active civilization, day by day is being urged onward by those increasing facilities of production, transportation and communication, to which steam and electricity have given birth; but our duty in the present instructs us to address ourselves mainly to the development of the vast resources ot the great area committed to our charge, and to the cultivation of the arts of peace within our borders, though zealously alert in preventing the American hemisphere from being involved in the political problems and complications of distant governments. Therefore, I am unable to recommend propositions involving paramount privileges of ownership or right outside of our own territory, when coupled with absolute and unlimited engagements to defend the territorial integrity of the state where such interests are. While the general project of connecting the two oceans by means of a canal is to be encouraged, I am of opinion that any scheme to that end, to be considered with favor, should be free from the features alluded to.

The Tehuantepec route is declared by engineers of tho highest repute, and by competent scientists, to afford an entirely practicable transit for vessels and cargoes by means of a ship railway from the Atlantic to the Pacific. The obvious advantages of such a route, if feasible, over others more remote from the axial lines of traffic between Europe and the Pacific, and, particularly between the valley of the Mississippi and the western coast of North and South aro deserving of consideration. Whatever highway may be constructed across the barrier dividing the two greatest maritime areas of the world must be for the worid’s benefit, a trust for mankind, to be removed from the chance of domination by any single power, nor become a point of invitation for hostilities or a prize for warlike ambition. An engagement combining the construction, ownership, and operation of such a work by this government, with an offensive and defensive alliance for its protection with the foreign state whose responsibilities and rights we would share, is, in my judgment, inconsistent with such dedication to universal and neutral use, and would, moreover, entail measures for its realization beyond the scope of our national polity or present means. Tho lapse of years has abundantly confirmed the wisdom and foresight of those earlier administrations which, long before the conditions of maritime intercourse were changed and enlarged by the progress of the ago, proclaimed the vital need of interoceanic transit across the American isthmus, and consecrated it in advance to the common use of mankind by their positive declarations and through the formal obligation of treaties. Toward such realization the efforts of my administration will bo applied, ever bearing in mind the principles on which it must rest, and which were declared in no uncer tain tones by Mr. Gass, who, while Secretary of State, in 1858, announced that “what tlm United States want in Central America, next to the happiness of its people, is the security and neutrality of the interoceanic routes which lead through it.” The construction of three transcontinental lines of railway, all in successful operation, wholly within our territory, and uniting the Atlantic and the Pacific oceans, has been accompanied by results of a most interesting and impressive nature, and has created new conditions, not in the routes of commerce only, but in political geography, which powerfully affect our relations toward, and necessarily increase our interest in, any transisthmian route which may be opened and employed for the ends of peace and traffic, or in other contingencies, for uses inimical to both. Transportation is a factor in the cost of commodities scarcely second to that of their production, and weighs as heavily upon the consumer. Our existence already has proven the great importance of having the competition between land carriage and water carriage fully developed, each acting as a protection to the public against the tendencies of monopoly which is inherent iu the consolidation of wealth and power in the hands of vast corporations. These suggestions may servo to emphasize what I have already said on the score of the necessity of a neutralization of any interoceanic transit, and this can only be accomplished by making the uses of the route open to all nations and subject to the ambitions and warlike necessities of none. The drawings and report of a recent survey of the Nicaragua canal rout 9, made by Chief Engineer Menocalt, will be communicated for your information.

Finances of the Nation. The report of the Secretary of tho Treasury fully exhibits the condition of the public finances and of the several branches of government connected with his department. The suggestions of the Secretary relating to the practical operations of this important department, and his recommendations in the direction of simplification and economy, particularly in the work of collecting customs duties, are especially urged upon the attention of Congress. The ordinary receipts from all sources for the fiscal year ended June 30, 1885, were $322,690,706.38: of this sum, $181,471,939.34 was received from customs, and $112,498,725.54 from internal revenue. The total receipts, as given above, were $24,829,163.54 less than those for the year ending June 30, 1884. This diminution embraces a falling off of $13,595,550.42 in the receipts from customs, and $9,687,346.97 in the receipts from internal revenue. The total ordinary expenditures of the government for the fiscal year were $260,226,935.50. leaving a surplus in the Treasury at the close of the year of $63,463,771.27. This is $10,929,854.32 less than the surplus reported at the close of the previous year. The expenditures are classified as follows: For civil expenses $23,826,942.11 For foreign intercourse 5!439[609 11 For Indians 6.5521494.63 For pensions..* 56,102,267.49 For the military, including river and harbor improvements and arsenals 42,670,578.47 For the navy, including vessels, machinery and improvements of navyyards 16,021.079.69 For interest on the public debt 51,386,256.47 For the District of Columbia 3,499,650.95 For miscellaneous expenditures, including public buildings, lighthouses and collecting the revenue.. 54.728,054.21 The amount paid on the public debt during the fiscal year ended June 30, 1885, was $45,993,235.43, and there has been paid since that date and up to Nov. 1, 1885, the sum of $369,828, leaving the amount of the debt, at the last-named date, $1,514,4( 5,860.47. There was, however, at that time, in the Treasury, applicable to the general purposes of the government, the sum of $06,818,292.38. The total receipts for the current fiscal year, endjng June 30, 1886, ascertained to Oct. 1, 1885, and estimated for tho remainder of the year, are $315,000,000. The expenditures, ascertained and estimated, for the same time, are $245,000,000, leaving a surplus at the close of the year estimated at $70,000,000. The value of exports from the United State? to foreign countries during the last fiscal year was .as follows: Domestic merchandise $726,682,946.00 Foreign merchandise 15,506,809.00 Total $742,189,755.00 Gold $8,477,892.00 Silver 33,753,633.00 Total $784.421,280-00

ties and the percentage they respectively bear to the total exportation, are given as follows: PerArticles. Value. eentage. Cotton and cotton manufactures $213.799.019 29.42 Breadstuff* 160,370.820 22.07 Provisions 107,332,456 14.77 Oils, mineral, vegetable and animal 54,326,202 7.48 Tobacco and its manufactures. 24.767.305 3.41 Wood and its manafactures 21,46-1,322 2.95 Our imports during the year were as follows: Merchandise $579,580.053.80 Gold 26.691,896.00 Silver 16,550,627.00 Total $622,822,376.80 The following are given as prominent articles of imports during the year, with their values and the percentage they bear to the total importation: PerAr tides. Value. eentage. Sugar and molasses $76,738,713 13.02 Coffee..... 46,723,318 8.09 Wool and its manufactures 44,656,482 7.73 Silk and its manufactures 40,393,002 6.99 Chemicals, dye drugs and medicines 35,070,816 6.07 Iron and steel, and their manufactures 34,563,689 5.98 Flax, hemp, juteand manufactures 32,854,874 5.69 Cotton and its manufactures 28,152,001 4.88 Hides and skins, other than fur skins 20,586,443 3.56 Os the entire amount of duties collected, 70 per cent, was collected from the following articles of import: Sugars and molasses, 29; wool and its manufactures, 15; silk and its manufactures, 8; iron and steel and their manufactures, 7; cotton manufactures, 6; flax, hemp and jute and their manufactures, 5. The fact that our revenues are in excess of the actual needs of an economical administration of the government, justifies a reduction in the amount exacted from the people for its support. Our government is but the means established by the will of a great people, in which ordinary principles are applied, which have been adapted for their benefit and protection, and it is never better administered, and its true spirit is never better observed, than when the people’s taxation for its support is scrupulously limited to the actual necessities of expenditure, and distributed according to a just and equitable plan. The proposition with which we have to deal is the reduction of tho revenue received by the government, and indirectly paid by the people, from customs duties. The question of free trade is not involved, nor is there now any occasion for the general discussion of the wisdom or expediency of a protective system. Justice and fairness dictate that in any modification of our present laws relating to revenue, the industries and interests which have been encouraged by such laws, and in which our citizens have large investments, should not be ruthlessly injured or destroyed. We should also deal with the subject in such manner as” to pro tect the interests of American labor, which is the capital of out- vorkiug men. Its stability and proper remuneration furnish the most justifiable pretext for a protective policy. Within these limitations a certain reduction should be made in our customs revenue. The amount of such reduction having been determined, the inquiry follows, where can it best be remitted, and what articles can best be released from duty in the interest of our citizens? I think the reduction should be made in the revenue derived from the tax upon the imported necessaries of life. We thus directly lessen the cost of living in every family of the land, and release to the people in every humble home a larger measure of the rewards of frugal industry.

NATIONAL BANKS AND SILVER. During the year ended Nov. 1, 1885, 145 national banks were organized, with an aggregate capital of $16,938,000, and circulating notes have been issued to them amounting to $4,274,910. The whole number of these banks in existence on the day above mentioned was 2,727. The very limited amount of circulating notes issued by our national banks, compared with the amount the law permits them to issue upon a deposit of bonds for their redemption, indicates that the volume of our circulating medium may be largely increased through this instrumentally. Nothing more important than the present condition of our currency and coinage can claim your attention. Since February, 1878, the government has, under the compulsory provisions of law, purchased silver bullion and coined the same at the rate of more than $2,000,000 every monjh. By this process, up to the present date, 215,759,431 silver dollars have been coined. A reasonable appreciation of a delegation of power to the general government would limit its exercise, without express restrictive words, to the people’s needs and the requirements of the public welfare. Upon thi3 theory, the authority to “coin money, given to Congress by the Constitution, if it permits the purchase by the governmsnt of bullion for coinage, in any event does not justify such purchase and coinage to an extent beyond the amonnt needed for a sufficient circulating medium. The desire to utilize the silver product of the country should not lead to a misuse or the perversion of this power. The necessity for such an addition to the silver currency of the Nation as is compelled by the silver coinage act is negatived by the fact that, up to the present time, only about fifty millions of silver dollars so coined have actually found their way into circulation, leaving more than one hundred and sixty-five millions in possession of the government, the custody of which has entailed a considerable expense for construction of vaults for its deposit. Against this latter amount there are outstanding silver certificates amounting to about $93,000,000. Every month, $2,000,000 of gold in the public treasury are paid out for $2,000,000 or more of silver dollars* to be added to the idle mass already accumulated. If continued long enough, this operation will result in the substitution of silver for all the gold the government owns applicable to its general purposes. It will not do to rely upon the customs receipts of the government to make good this drain of gold, because the silver thus coined having been made legal tender for all debts and dues, public and private, atj times during the last six months 58 per cent, of the receipts for duties have been in silver or silver certificates, while the average within that period has been 20 per cent. The portion of silver and its certificates received by the government will probably increase as time goes on. for the reason that the nearer the period approaches when it will be obliged to offer silver in payment of its oblieatione, the greater inducement there will be to hoard gold against depreciation in the value of silver, or for the purpose of speculating. This hoarding of gold na3 already begun. When the time comes that gold has been withdrawn from circulation, then will be apparent the difference between the real value of the silver dollars and a dollar in gold, and the two coins will part company. Gold, still tne standard of value, and necessary in our dealings with other countries, will be at a premium over silver, banks which have substituted gold for the deposits of their customers may pay them with silver bought with such gold, thus making a handsome profit; rich speculators will sell their hoarded gold to their neighbors who need it to liquidate'their foreign debts at a ruinous premium over silver, and the laboring men and women of the land, most defenseless of all, will find that the dollar received for the wage of their toil has sadly shrunk in its purchasing power. It may be said that the latter result will be but temporary, and that ultimately the price of labor will be adjusted to the change, but even if this takes place the wage-worker cannot possibly gain, but must inevitably lose, since the price he is compelled to pay for his living will not only be measured in a coin heavily depreciated, and fluctuating and uncertain in its value, but this uncertainty in the value of the purchasing medium will be made the pretext for an advance in prices beyond that justified by the actual depreciation.

The words uttered in 1834 by Daniel Webster, in the Senate of the United States, are true today: “The very man of all others who ha# the deepest interest in a sound currency, and who suffers most by mischievous legislation in money matters, is the man who earns his daily bread by his daily toil. The most distinguished advocate of bimetaiism, discussing our silver coinage, has lately written: “No American citizen’s hand has vet felt the sensation of cheapness, either in receiving or expending the silver-act dollars." And those who live by labor or legitimate trade never will feel that sensation of cheapness. However plenty silver dollars may become, they will not be distributed as gifts among the people. and if the laboring man should receive four depreciated dollars where he now receives but

necessaries and comforts of life. Those who do not fear any disastrous consequences nrising from the continued compulsory coinage of silver, as now directed by law, and who suppose that the addition to the currency, of the country intended as its result, will be a publie benefit, are reminded that history demonstrates that the point is easily reached in the attempt to float, at the same time, two sorts of money of different excellence, when the better will cease to be in circulation. The hoarding of gold, which has already taken place, indicates that we shall not escape the usual experience in such cases. So if this silver coinage be continued, we may reasonably expect that gold and its equivalent will abardon the field of circulation to silver alone. This, of course, must produce a severe contraction of our circulating medium, instead of adding to it It will Dot be disputed that any attempt on the part of the government to cause the circulation of silver dollars, worth eighty cents, side by side with gold dollars, worth one hundred cents, even with the limit that legislation does not run counter to laws of trade, to he successful, must be seconded by the confidence of the people that both coins will retain the same purchasing power and be interchangeable at will. A special effort has been made by the Secretary of the Treasury to increase the amount of our silver coin in circulation; but the fact that a good share of the limited amount thus put out has soon returned to the public treasury in payment o/ duties leads to the belief that the people do not now desire to keep this money in band, and this, with the evident disposition to hoard gold, gives rise to the suspicion that there already exists a lack of confidence among the people touching our financial processes. There is certainly not enough silver now in circulation to cause uneasiness, and the whole amount coined and now on hand might, after a time, be absorbed by the people without apprehension; but it is the ceaseless stream that threatens to overflow the land which causes fear and uncertainty. What has been thus far submitted on this subject relates almost entirely to considerations of a home nature, unconnected with the bearing which the policies of other nations have upon the question; but it is perfectly apparent that a line of action in regard to our currency cannot wisely be settled upon or persisted in without considering the attitude on the subject of other countries with whom we maintain intercourse through commerce, trade and travel. An acknowledgement of this fact is found m the act by virtue of which our silver is compulsorily coined. It provides that “the President shall invite the governments of the countries composing the Latin Union, so-called, and of such other European nations as he tnay deem advisable, to join the United States in a conference to adopt a common ratio between gold and silver, for the purpose of establishing, internationally, the use of bi-metallic money and securing fixity of relative value between these metais,” This conference absolutely failed, and a similar fate has awaited all subsequent efforts in the same direction, and still we continue our coinage of silver at a ratio different from that of any other nation. The most vital part of the silver coinage act remains inoperative and unexecuted, and, without any ally or friend, we battle upon the silver field in an illogical and losing contest. To give full effect to the design of Congress on this subject, I have made careful and earnest endeavor, since the adjournment of the last Congress. To this end I delegated a gentleman well ininstructed m fiscal science to proceed to the financial centers of Europe, and, in conjunction with our ministers to England, Franee and Germany. to obtain a full knowledge of the attitude and intent of these governments in respect of the establishment of such an international ratio as would procure free coinage of both metals at the mints of those countries and our own. By my direction our consul general at Paris has given close attention to the proceedings of the congress of the Latin Union, in order to indicate our interest in its objects and report its action. It may be said, in brief, as the result of these efforte, that the attitude of the leading powers remains substantially unchanged since the monetary conference of 1881, nor is it to be questioned that the views of these governments are in each instance supported by the weight of publie opinion. The steps thus taken have, therefore, only more fully demonstrated the uselessness of further attempts, at present, to arrive at any agreement on tl\e subject with other nations. In the meantime, wo are accumulating silver coin, based upon our own peculiar ratio, to such an extent, and assuming so heavy a burden to be provided for in any international negotiations, as will render us an undesirable party to any future monetary conference of nations. It is a significant fact that four of the five countries composing the Latin Union mentioned in our coinage act, embarrassed with their silver currency, have just completed an agreement among themselves that no more silver shall be coined by their respective governments, and that such as has been already coined and put in circulation shall be redeemed in gold by the country of its coinage. The resort to this expedient by these countries may well arrest the attention of those who suppose that we can succeed, without shock or injury, in the attempt to circulate, upon its merits, ail the silver we may coin under the provisions of our silver coinage act. The condition in which our Treasury may be placed by a persistence in our present course is a matter of concern to every patriotic citizen who does not desire his government to pay in silver such of its obligations as should l>e paid in gold; nor should our condition be such as to oblige us, in a prudent management of our affairs, to discontinue the calling iu and payment of interestbearing obligations which we have the right now to discharge, and thus avoid the payment of further interest thereon.

The so-called debtor class, for whose benefit the continued compulsory coinage of silver is insisted upon, are not dishonest because they are in debt, and they should not be suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated dollars. Nor should it be forgotten that it is not the rich nor the money-lender alone that must submit to such a readjustment, enforced by the government and their debtors. The pittance of the widow and the orphan, and the incomes of helpless beneficiaries of ail kinds, would be disastrously reduced. The depositors in savings banks and other institutions which hold in trust the savings of the poor, when their little accumulations are scaled down to meet the new order of things, would, in their distress, painfully realize the delusion of the promise made to them that plentiful money would improve their condition. We have now on hand all the silver dollars necessary to supply the present needs of the people and to satisfy those who, from seutiment, wish to see them in circulation; and if their coinage is suspended they can be readily obtained by all who desire them. If the need of more is at any time apparent, their coinage may be renewed. That disaster has not already overtaken us furnishes no proof that danger does not wait upon a continuation of the present silver coinage. We have been saved by tho most careful management and unusual expedients, and by a combination of fortunate conditions and, by a confident expectation that the commerce of the government in regard to silver coinage wou’d be speedily changed by action of Congress. Prosperity hesitates upon our threshold, because of dangers and uncertainties surrounding this question. Capital timidly shrinks from trade, and investors are unwilling to take the chance of the ques tionable shape in which their money will be returned to them, while enterprise halts at a risk against which care and sagacious management do not protect. Asa necessary consequence, labor lacks employment, and suffering and distress are visited upon a portion of our fellow-citizens especially entitled to the careful consideration of those charged with the duties of legislation. No interest appeals to us so strongly for a safe and stable currency as the vast army of the unemployed. I recommend the suspension of the compulsory coinage of silver dollars directed by the law passed in February, 1878.

Civil-Service Reform. Ihe report of the Civil-service Commission, which will be submitted, contains an account of the manner in which the civil service law has been executed dunng the last year, and much valuable information 6n this important subject I am inclined to think that there is no sentiment more general in the miuds of the people of our country than a conviction of the correctness of the principle upon which the law enforcing civilservice reform is based. In its present condition, the law regulates only a part of the subordinate public positions throughout the country. Mi k

tion, and gives large discrete , sioners as to the character th * * many other matters conntvu.il Thus the rules and Commission have much to CS usefulness of the statute and frit its application. The people m at,mission to execute the law with amt with as little irritation a 2, l C course, no relaxation of the prin*o derhesit, and no weakening of th? * h'i which surround it, can bo ence m Us administration will amendment of the methods of u! ~ b!y I venture to hope that we shall . remitted to the system which positions purely as rewards for Doubts may well be entertair!? V 1 government could survive the at? a and uanca of this system, whVh Zn "*2 of administration, inspires an claimants for office to lay siege ? 0 of government, engrossing tha SU?!?** officers with their importunities abroad the contagion of their r, ’ and filling the air with the tumulWW content. The allurements of an in. of F l°rr nd p | aces •xhibited to th? 1 * of the land, and the promise 7 °‘* bestowal in recognition of tmty, debauch the suffrage * political action of its thoughtful anddehu * character. The evil wouldin!!?£ h £> multiplication of offices ** tension, and the mania for oLe-hofij^* iXtS 0 ® ltS indulen . would prevade ulation so generally that patriotic support of principJe. the desire tor good, and ao icitude for v ♦!..* woaid b. „,„ rly c iß s ?nto P it y K? onte , tß aDd CftUSO t<> dec ?!’ into ignoble, selfish and disgraceful Bin J? * the possession of office and public pl M e * l lVil-service reform, enforced by law, none too soon to check the progress of 57*** zatiom One of its effects not enough rX is the freedom it brings to the political at?* those conservative and sober men who th, confusion and risk ite4?n e and sudden change in all the,public officTS change of party rule, cast their ballots. a such a chance. Parties seem to be and will continue to exist; nor can it be w med that there art legitimate disconnected wita office-holding, whichm? party supremacy. While partisanship conS bitter and pronounced, and supplies so motive to sentiment and action, it is nmf! hold public official,, in charca ol* trusts, responsible for the beat resultsTS performance of their duties, aud vet i they shall rely, in confidential and iiJ2 places, upon tho work of those not r, opposed to them in political affiliation bnt. steeped in partisan prejudice aml’rs n< ! that they have no loyalty to their chiefs and* desire for their success Civil-service refo! dees not exact this, nor does it require that th* in subordinate positions who fail in their best service, or who are incompeu*! should be retained simply because thyaa! place. The whining of a clerk discharged > indolence or incompetency, who, though W gained his place by the worst possible operas of the spoils system, suddenly discovers that 1, is entitled to protection under the sanction* civil-service reform, represents an idea no i absurd than the clamor of the app.iclsi who claims the vacant position as hi cat pensation for the most questionable part? work. The civil-service law doei u prevent the discharge of the indolent or in petent clerk, but it does prevent supplying u place with the unfit party worker. Thuu both the phases, is seen tho benefit to the pubic service, and the people who desire good govea ment, having secured this statute, will not linquish its benefits without protest; nor* they unmindful of the fact that iu full adv tages can only bo gained through tbecompi* good faith of those having its executioni charge: and this they will insist upon. I recommend that the salaries of the Ot& service Commissioners be increased to &n more nearly commensurate to their import* duties.

The Army and Navy. The report of tho Secretary of War ii bn with submitted. The attention of Congttii invited to the detailed account which it cotta of the administration of his department, * his recommendations and suggestions for 6 improvement of tho service. The army consisted at the date of the last cot solidated returns of 2,154 officials w 24,705 enlisted men. The expenses of the di partment for the fiscal year ended June 3( 1885, including $13,164,394.00 for pub lie works, and river and hw bor improvements, were $45,850,999.54 Beaido the troops which were dispatched in pur suit of the small band of Indians who left then reservation in Arizona and committed murden and outrages, two regiments of cavalry and on< of infantry were sent, last July, to the India! Territory, to prevent an outbreak which imminent. They remained to aid, if necewwf, in the expulsion of intruders upon the resem tion who seemed to have caused the discontenl among the Indians, but the executive proclsg tion warning them to remove was complied will without interference. c , „ k Troops were also sent to Bock Springs, Wyoming Territory, after the massacre Chinese there, to prevent further disturbs** and afterward to Seattle, in W ashingtor. tory, to avert the threatened at tack u£ Chinese laborers, and domestic violence tb£ In both cases the mere presence of the treop had the deßired effect. . . It appears that the number of diminished, but that during the they numbered 2,927. and one iMtMJJijJJ by the Lieutenant-general of # the same recruit I am convinced that th sMJ her of desertions can be much dmiu better discipline and treatment, but 9 EL* ment should be increased for These desertions might also be roduCe f. ening the term of first enlistments bus* ing a discontented recruit to con. P nearer discharge and afford the f a / tni ice artble riddance. After one term of je ro mygd listment would be quite apt tosecur recruit and good soldier. reoortid* The acting Judge Advocate-genera* r P° the number of trials by general cou during the year was 2,328. and L a! coa r* took place before garrison and regim martial. The suggestion that pro “Jed W than half the army have been tnea offenses, great and . Bma J* tion , 0 year, may well arrest a t : jg beW course, many of tbes ® were f< garrison and regimental courta-m s b 9 uk, offenses almost frivolous, and # t v fcsa ii think, be a way devised to dispose o more summary and less than by court-martial. . ls Vad ings of courts-martial which 1 b . ‘,. ce to examine present the ideas or j generally prevail in these tribuna n $ fled that they should be m ucb re honor and the honesty of the T are by their iustrumality to be vi protected. , A 9 ** The board of fortifications and othe # appointed in pursuance of the pr ( act of Congress, approved Marcn < sjt • a short time, present their WP® • hoped that this may greatly ai defect! so necessary to remedy the present condition of our seacoasts. The work of the Signal Service j #1 ecuted during the last year. W 1 , rh creasing benefit to the country. ri&m struction has been enlarged, w. adding to its usefulness. 4he nut wl in operation June 3u. 489. Telegraphic reports ar r lfo -*o*3 daily from 9< stations. Beportta , oß(aa r ® from 75 Canadian stations, post* ji servers, 52 army surgeons at m i -.L foreign stations. The - r during the fiscal year, after de from military telegraph line* , In view of the fact referred to' > of War, that this work of the *# r 1 is of a scientific nature, a,IJ that it is assuming larger prop ” W® and becoming more and more u fixed rules w hich must ff° ve | n ioD tJ 5| inclined to agree with hltn m jl should be separately eetabtwMW- sb<)tt l4l| the scope and extent of ,l * . prescn^^l nearly as possible, be law, and always capaffie oi e L . Poi®* # jl The Military Academy ported as being in a high atateoi well equipped for the satisfy