Indiana State Sentinel, Volume 28, Number 48, Indianapolis, Marion County, 3 December 1879 — Page 1

rr "' i"-v r ri t i r r- -, VOL. I. NO 48. IKDIANAPOLIS, WEDNESDAY, DEGEM 13 ER 3, 1879-WITH SUPPLEMENT. WHOLE NO.310'

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PBESIDENT'S MESSAGE.

The Resumption of Specie Payment Commented On at Length. A Few Words About the Marked BaTvr&l in tbo Easiness of the Country. ' He Joins in With Sherman in nil War on the Dollar of Oar Dads. . JLetfal Tender Rotes Not According to Law, and Should Be Abolished. ,. The Mormons, Civil Service and Many Other Blatters Discussed. FEixw-CmzExs or the Bknatk a-d Housb op Rei-kk-skntativks The members of the Forty-sixth Congress bave assembled la their first regular session under circumstances calling for mutual congratulation and grateful acknowledgement to the giver of ail good lor the large aud unusual measure of nauoual pros perity which we now enjoy. The most interesting events which have occurred In our public affairs since my last aannal message to Congress are connected with the financial operations of the Uovernment directly affecting the business interests of the connlry. i congratulate Congress on the successful execution of the resumption act. At the time fixed and in the manner contemplated by law, United States notes began to be redeemed In coin. Since the 1st of January last they have been promptly redeemed on presentation, and In all business transactions, Sublio and private, in all parts of the country, ley are received and paid out as the equivalent ot coin. The demand upon the treasury for gold and silver in exchange for United States notes has been comparatively small, and the voluntary deposit of coin aud bullion in exchange lor notes has been very large. The excess of the precious metals deposited or exchanged for United states notes over the amount of United States note redeemed is about 0,JOO,tKJU. The resumption of specie payments bag ben followed by a very great revival of business. ' With a currency eqlva'ent in value to the money of tbe commercial world, we areen- . abled to enter npon au equal competition with other nations in trade and production. The increasing foreign demand for our manufactures and agricultural products has caused a large balance of trade in our favor, which has been paid in gold, from the 1st of July last to November lc, to tbe amount of about $59,000,000. Since the resumption of specie payments there bat also been a marked and f ratifying improvement of the public credit, be bonds of the Uovernment bearing only 4 per cent, interest have been sold at or above par. sufficient in amount to pay oft all or tbe national debt whicu was redeemable under present laws. Tne amount of lute rest savwl annually by the process nf refunding the debt, since Match- 1, 1877, is tUJ!t,lT7 The bonds sold - were . largely . insmall sums, aud tbe number of our' citizens now holding the public seeu-ities is much greater than ever before. The 'amount of the national debt wbicb matures in less than two years Is 792,121,7cO, of which 5O0,0jO,wk bear interest at the rate or 5 ptr cent., and tbe balance isin bonds bearing 6 per cent, interest. It is believed that this part of the public debt can be refunded by the issue of 4-psr cent, bonds, and, by the reduction of interest which will thus be effected, about 311,0ti0,0ii0 can be annually saved to the treasury. To eeenre this important reduction of interest to be paid by the United States, further legislation is re- ' quired, wliicn, it is hoped, will be provided by Congress during its present session. The coinage of gold by the mints of the United Slates during the iast fiscal year was Ho,b!H2. The coinage of silver dollars, since the passage of the act for that purpose, up to November 1, 1879, was 45,hj0,8.;O, of whicu J12.70u.S-H bave been issued from the treasury -and are now in circulation, and S;2,30O,5(t are still in the possession of I he Government The pendency of the proposition for unity of action between the United States and the principal commercial nations ot Europe, to effect . permanent system for the eqnaliiy of gold and silver in the recognized money of tue world, leads me to. recommend mat Congress refrain from Eev legislation on the' general subject. The great, revival of trade, internal and foreign, will supply. during the coming year, its own instructions, which may well be awaited before attempting further experimental measures With tbe coinage. I would, however, strongly urge upon Congress the importance of authorizing the secretary of the treasury to suspend tbe coinage of silver dollars upon tbe present legal ratio. The market value of the silver dollar being uniformly and largely less than tbe market va or ot the gold dollar, It is obviously Impracticable fo maintain them at par with each other If both are coined without limit. If tbe cheaper coin is forced Into circulation it will. If coined without limit, soon become the so e s andard of value, and - thus defeat tbe desired object which is a currency of both gold and silver, which shall be of equivalent vala-, dollar for dollar, with the universally recognized money of the world. Tbe retirement from circulation of United States notes, wtth the capacity of legal tender In private contracts, is a step to be taken in our progress toward a safe and stable curieny,wnicb should be acoepted as the policy and duty of the Uovernment. and the interest . and s-cnrity of the people. It is my firm con- - vlcttonthat the is-ue of legal-tender paper money based wholly npon tbe authority a ,d credit .f tbe Government, except. in extreme emergency, la wituout warrant In tbe constitution., and a violation of sound financial principles. The issue of United States notes cur- , log the late etvl war with-the capacity of legal tender between private individuals was not authorized except as a-means of rescuing the country from imminent peri. The circulation of these notes as paper money, for any : protracted period of time after the accomplishment of bis purpose, was not oontempia ted by the framers of tbe law under which they were -Isrued. Tbey anticipated the re--demption aud withdrawal of tnese notes at the earliest practicable period consistent with the attainment of the object for which they were provided. The policy ol the United States, steadfastly adhered to from tbe adoption of tbe constitution, has been to avoid tbe creation of a national debt, and when, from necessity in time erf war, debts bave been created, they bave been paid off on the return of peace as rapidly as possible. With this view, and for this purpose, It is recommended that tbe existing "a ws for the accumulation of sinking fund sn Indent to extinguish tbe public debt within a limited period be maintained. If any change of tbe objects or rate of taxation la deemed neces-a- y by Congress, it Is suggested that experience has shown that a duty can be placed on tea and coffee, which will not enhance the price of those articles to the consumer, and wbicb will add several millions of dollars annually to tbe trasary. - -The continued dellberatevio'atlou by a large number of the prominent and Influential citizens of the Territory of Utah of the laws of the United states lor tbe prosecution and punish ment of polygamy demands the' tienllon of every department of tbe Uovernment. This Territory has a population sufficient to entitle It to admission as a state, and tne general id - te rests of the nation, as well as the we fare of the citizens Of tbe Territory, require Its ad van re from the territorial form of government to the responsibilities and privileges of a State. This important change, will not, howover, be approved by tbe country while the citizen of Utah, in very considerable camber uphold a practice which fs condemned as crime ny me taws or au civi.izea com muni ties throughout the world. The law lor the suppression of this offense was eiiacwrt witii greufc uuamujii j uy Ulii sr reft more than 17 years ago, but has remain ed nnti recently a dead letter in the Territory of Utah, because nf the peculiar difficulties attending its enforcement. Th opinion widely prevailed among the citizens of Utabtthat the law was in contravention ot tne constitution al enarantee of religions freedom. This obleo tionls now removed. The Supreme Court of the United States has decided the law to be within the legislative power of Congress, and binding as arolenf action for all who reside within tbe Territories. There la no longer any reason for

delay or hesitation in Its enforcement. It should be firmly and effectively executed. If not sufficiently stringent in its provisions it should be amended, and, in aid of the purpose in view, I recommend that more comprehensive and more searching methods for preventing as well as punishing this crime be provided. If necessary to secure obedience to the law, tire enjoyment and exercise of tberiebts and privileges of cillzensbip in tbe Territories of tue United States may be withheld or withheld from those who violate or oppose tbe enforcement of tbe law on this subject.

rue elections or me past year, tuougu occupied oniy with State offices, have not tailed to eliclt-'in the political discussions which at tended them all over the country, new and decisive evidence of the deep interest which tne great body of citizens take in the progress of i he connlry toward a more general and complete establishment, at whatever cost, of unlve'rsal security and freedom in the exercise of the elective franchise. W title ma y topics of political concern demand great attention from our people, both iu the sphere of na tional and State authority, I finu no reason to qualify the opinion I expressed in my iast annual message, that no temporary or admin istrative interests ol government, however urgent or weighty, will ever displace the zeal of our people In defense of the primary rights of citizenship, and that the power of public opinion will override all political prejudices, and all sectional and State attachment. In demanding tbat all over our wide territory tne anie and onaracter ot citizen oi me United Stat' s shall mean one and tne same thing.-and carry with them unchallenged security and respect. I earnestly appeal to tbe intelligence ana patriotism oi ail goou citizens of every part of the country, however much tbev may be divided in opinionson other political subjects, to unite in compelling obedience to existing laws aimed at the protection of the right or suflrago. I respectinlly urge upon Cougress to supply any defects In these laws which experience has shown and which it is within its "power to remedy. I again invoke the co-operation of tlie executive and legislative authorities of tne States in this great purpose. I am fully convinced that if the public mind can be set at rest on tnis paramount question of popular rights, no serious obstacle will thwart or delay the complete pacification of the country, or retard the general diffusion of prosperity. In a former message I Invited the attention of Congress to the subject of the reformation of the civil service of the Government, and expressed the intention of transmitting to Congress as early as practicable a report upon this subject by the cuairman of tbe civil service commission lu view of tbe facts that, during a consider able period, the Uovernment ol Great Britain has been dealing witn aatninistrative proolemsand abuses. In varlons particulars an alogous to those presented in this country, ana that in recent years the measures adopted were understood to have been effective and in every respect highly satisfactory, I thought it desirable to have fuller information upon the subject, and accordingly reqnested the chair man of tne civil service commission to raa&e thorough investigation for this purpose. Tbe result has been an elaborate and comprehensive report. The reuorl sets "forth the history of the par tisan spoils system in Great Britain, and ot the rise aud fall or tbe parliamentary patronage, aud of official inter'erence with the fieedom of elections. It shows tbat after long trials of various kinds of examinations, those which are competitive and open on equal terms to an, ana wmcn are carricu on unuer tne superintendenceof a single commission. hve, with great advantage, been established as con ditions of admission to almost every official place in tbe subordinate administration of mat-country and of British India. Tbe com pletion of tne report, owing to me extent oi the labor involved in its preparation, and the omission of tongress to make any provision either for tliecompensatlon cr tbe expenses of tbe commission, has been postponed uutil the present time. It is herewlta transmitted to Congress. .- While ihexerorm measures oi another uov ernment are of no authority for us, they are entitled to influence, to the extent to which their Intrinsic wisdom, ana tneir adaptation to our Institutions and social lie may commend them to our consideration, Tbe views I have heretofore expressed concerning the defects and abuses In our civil ad ministration remain unchanged, except in so far as an enlarged experience has deepened my sense ot the duty both of officers and of tbe people themselves to co-operate lor tneir re moval. The grave evils and perils of a partisan spoils system of app intmeut to office and of olhce-teuure, are now generally recognized In the resolutions of the great parties, in the reports of departments, in the debates and proceedings ot Cougress, iu tue messages of executives, the gravity of these evils has been pointed out and tne need ot tneir reiorm nas been admitted,, To command Abe necessary support, every measure of rel(ti must be based on common right and juse, and must be compatible with the healthy existence of great parties, which are inevitable and essential In a free State. ' When the people have approved a policy ! a national election, confidence on the part , the officers tbey bave selected, and of the Ivisers who. in accordance with our political irrstitntions. should be consulted, in the poli cy which it It yieir duty to carry into effect. IS inuispensaoie. lb is eui:uruu; proper lUHb they should explain It before me people, as well as illustrate its spirit In the performance OK heir otlicial duties. fry different! considerations apply to the grkiter numberiof those who fill tbesubordlnt& places in the civil service. Their responsibility h to their superiors in official position. it a theirduty u obey tne legal instructions or those upon (whom that authority isdevolffud, and their best public service consists in Me discharge bf their functions irrespective of wa.rti.san politics. Their duties are the sardfe, whatever psrty is in power and what-ever-uolicv prevails. As a consequence, it fol low that their tenure of office should notde-J pena on the prevalence ot any poucy or tne supremacy of any party, but should b deter mined by their capacity to serve the people most usefully, quite irrespective of partisan interests. The same considerations that should govern tbe tenure should also prevail In the appointment, a scipune ana removal ot mese subordinates. Tne antborily of appointment and removal is not a perquisite, which may be nsed to aid a friend or reward a partisan, but is a trust to be exercised in tne public interest, under all the sanctions which attend the ob ligation to apply the publio funds gmly for public purposes. Every clllzan has an equal right to the honor and profit of entering tbe public service ot his country. The only Just ground of dlscrimi nation is tne measure of character and capacity be b -s to make that service nio-t useful to the people. Except In cases where, upon just and recognized nrinclnles. as noon the theorv of pensions, offices and promotions are bestowed as rewards for past services, their be stowal upon any tneory wnicn an-regarus personal merit Is an act ol injustice to me citizen. as well as a breach of that trust subject to which the appointing power is held. In the light of these princl plec it becomes of great importance to provide just ana auequate means, especially for every department, anrt large administrative office, where personal discrimination on tbe part of its head Is not nrecllcable for ascertaining those Qualifica tions to which appotntmeuts and removals should have reference, lo rail to provide such means is not only to deny the opportunity of ascertaining the facts upon whlob the most ngoteons claim toomoeaepenaa, out, of necessity, to discourage all worthy aspirant, by handing over -appointments and re movals to mere influence and favorit ism. If It is the right of the worthiest claimant to gain tbe appolntmeut, and tbe Interest of tbe people to bestow It upon hlm.lt would seem cle r that a Ise and just method of ascertaining personal fitness for office must be an important and permanent 1 unction of every just and wise govern ment .it nas long since necome impossible. In tbe great offices, for tbose having the duty of nomination and appointment, to personally examine into tbe Individual qualifications of more tban a small proportion or tbose seeking office; and, with the enlaigment of the civil service, that proportion must continue to become less. in tbe earlier years of the Government, the subordinate olfics were so few In number that it was qnite easy tor tnose making appointments aud promotions to personally ascertain tbo merits of candidates, farty managers and methods had not then become powerful agencies of coercion, hostile to the free and J ust exercise of the appointing power. A larflre and rpsonnslbln Dart or thn rintv restoring me civil service io lueaesirea purity ana emoieney rests upon ine presiuent. ana it is my purpose to do what is within my power toad vance such prurintand gradual raeasu es of reform as will most surely and -apidly bring about i hat radical change of system essential to raae our administrative methods satisfac tory to a iree ana intelligent people. By a proper exercise oi an thorny, it Is In the power of theexecutive to do ranch to promote such a reform. But it can not no too clearly under stood that nothing adequate can be accomplished without co-opt ration on the part ot

Congross, and considerate and Intelligent upRorl among tbe people. Reforms which chalmge the generally accepted theories of partics, and demand changi-s In tbe metocsisof

departments, are not tbe work of a day. Their permanent lounuatn.iis mast be laid in sound rrlnclDles.and in an experience wblen demon strates tn-lr wisdom aud exposes the errors of their adversaries. Every worthy officer desires to make bis official action a gain and an honor to bis connlry, but tne people themselves, far more tban their officers lu public station, are interested In a pure, economical, and vigorous administration. By laws nnacted in 1853 ana 18. and now In substance Incorporated in the revised statutes, the practice of arbitrary appointment to the several subordinate grades iu the great departments was condemned, and examinations as tocapaolty, to be condncted by departmental hoards of examiners, were, provided for and made conditions of admission to the onbila service. These statutes are a decision by Con gress that examinations of some sort, an to atlalnments and capacity, are essential Co the well being of tbe public service. Tbe lmKnrlant questions since tbe enactment ol these iws have bsen as to the character of these examinations, and wbether otlicial favor and partisan influence, or common right and merit, were to control the access to tue examinations. In practice, these examinations have not always been open to worthy persoua generally, who might wish to be examined. Official favoritism and partisan influence, as a rule, appear to have destgnatea those who alone were permitted to go before the examining boards, subjecting even the examiuers to press n re from the lr lends of the candidates very difficult to resist. As a consequence, the staudardof admission fell below tbat which the public interest demauded. It was also almost Inevitable that a system which provided for varlons separate boards of examiners, with no common supervision or uniform method of procedure, should result. In confusion. Inconsistency, and Inadequate tests of enpscity nigniy detrimental to tue public interests. A further aud more radical change was obvi ously required. in tne annual message or December, 1K7U, my predecessor oeclared tbaf'there is no duly which so much embarrasses tbe executive and heads of departments as that of appointments; nor Is there any such ard nous and thankless labor imposed on senators and representatives as that oi finding places for constituents. The present system does not secure the best men, and often not even fit men for the public paces. The elevation and purifi cation of the civil service of tbe Uovernment will be balled with approval by the whole people of tbe United States." Cougres accordingly passed the act, approved March 3, 1871, "to regulate the civil service of the United States and promote the efficiency thereof," giving tne necessary authority to tne executive to inaugurate a civil service reform. Acting under this statute, which was interpreted as Intended to secure a system of just and effectual examinations under uniform supervision, a number of eminently competent persons were selected lor the purpose. who enteiea witn zeai upon meaiscnargeor their duties, piepared, with an intelligent ap preclation ol tbe requirements of t he service, the regulations contemplated, and tookebarge of the examinations, and who, in their capacity as a board, have been known as the "Civil Service Commission." Cougress for two years appropriated the money needed for tbe com pensation aud lor tne expense or carry mg on the work of the commission. It appears from the report of tbe commis sion, submitted to tbe president in April.'lKTl, that examinations bad been held in various sections of the country, and that an ap propriation of about i),utw would be required to meet the annual expenses, including salaries, involved iu discharging the duties of the commission. The report was transmitted to uongress by special message of April 18, 1871, with the following favorable comment upon the labors of the commission : "If sustained by Congress, I bave no doubt' the rules can, after tue experience gained, be so Improved aud euforcoJ as to still more materially benefit the publio service and relieve the executive, members of Congress and the beads of departments, from influences prejudicial to good administration. The rules, as they have hitherto been enf rceo. n-tve resulted oanenciiiiy, as is snowu by the opinions of tbe mem bers of the ciblnet and their subordinates in tbe departments, and In that opinion I concur." And inlheanuual message of December of the same year, similar lews are expressed, aud an appropriation for continuing the work ot the commission aalu advised, The appropriation was not male, and, as a consequence, the active work of the commission was snspeuded. leaving the commission lisen still in existence, witnout tue means, therefore, of causing qualifications to be tested In - any systematic manner, or of securing for the public service the advantages oi com petit ton upon any extensive plan. 1 recommended lu my annual message of December, 1877, tbe making of an appropriation for the resump tion of the work of the commission In the meantime, however, competitive ex amimnatious under many embarrassments have baen conducted within limited spheres In theexecutive departments lu Washington, and in a number of the Custom Bouses and postotrlces of tbe prlucipal clues of the country, witn a view to further test their ef fects, aud, la every instance, iney nave oeen found to be as m'utary as tney are ataho to have been under the administration of ray predecessor. 1 think the economy, purity and efficiency of i lie public service would be greatly promoted by their systematic introduction, wherever practicable, through ut tne entire civil service oi me trove-nnieui, together with ample provision for their geueml supervision, In oruer to secure consistency and uniform justice. He ports from tbe secretary of the Interior, irora tne posimaster-generai, iroui me posi. master in the citv of New York, where such examinations have been sometime on tri-1, and also from tbe collector of tne oort, the naval oilicer.aiid the surveyor in that city, and from the poi-tiii asters and collectors lu several of the otber large cities. show that the compel i live system where applied, bas. In varlon ways. contributed to Improve the publio service. Tbe reports show thai the insults bave been salutary in a marked degree, and I hat tne gen eral application ol similar rules csn not tail to ne of dociueu oenent to tin service. The reports of the Uovernment otflcnrs, in tbe citv of New York especially, bear decided testimony to the utility of opeu competitive examinations in their res pec lve otlices.showing that "these examinations, and the excellent qualifications of those admitted to the service tnrougu mem. nave naa a marKwi in cidenlal effect npon the persons previously In tue service, ana particularly upon tnose aspiring to promotion. There bas b-n, on tbe part of i hete latter, an lncrea ed Interest In tbe work, and a desire to extend acquaintance with it beyond the particular desk occupied, and thus tbe morale of tbe entire force bas been raise I. " The examinations have been attended by many citizens who have had an opportunity to thoroughly investigate the scope ana character oi tne testa ana tne metuod of deteimlnlog tbe results, and those vis ltors have, without exception, approved the met hods em ployed, and several of tuem bave publicly attested meir iavoraoie opiuion. -Upon such considerations. I deem it ray dntv to renew tbe recommendation contained In my annual message of December, 1877, reouestlnK Congress to make tbe necessary ap proprlaiton for tbe resumption or tbe work of me civu service commission, economy win be promoted by authorizing a moderate com pensatlon to perrons in tbe public service; who in sy pe iorm extra labor upon or una r tne commission, as the executive may direct. I am convinced that it a just and adequate test of merit Is enforced for admission to tbe public service and In making promotions, such abuses as removals wltbout good cause and partisan and official interfeienoe wlih the proper exercise of the sppolutlug power, will in lar-e m -asare disappear. There are otber administrative abus to which the attention of Congress should be asked in tnis connection. Meie partisan appointments, and the constant peril of removal without cause, very natnrallv lead o an absorbing and mischievous political activity, on tbe pai t of those thus appointed, which not oniy inierieres wiin ids one aiscnarge ot (uncial dutv, but Is lncomoaiible with ihe free dom o' elections. Not without warrant, in tbe views of several of my predecessors in the presidential offic, and directly wl'hin tht law of 1871, already cited. 1 endeavored, by regulation, made on the 2 2d day of Juae. 1877, to put some reasonable Jlmltn to such abases. It may not be easy, an I it may never perhaps be necessary, to define with nreclslon the proper limit of political action on the part of f eaerei oincers. hui wnne their right to noia and freely express their nnlnlona nan not be questioned, it Is very plain tbat ' bey should neither be allowed to devote to oihr subjects tbe lime needed for tbe proper discharge nf their official duties, nor to use the authority of their office to enforce- their own ODlnioDS. or to coerce tbe political action of those who hold dlfferentoplnlons. Seasons of justice and nnhlln nollov. anlte analogous to those which forbid the use of

official power for the oppression of ibe private citizen, impose npon the Uevernment the duty of protecting Its officers and agents from, arbitrary exactions, in whatever aspect considered, the practice of making levies, for party purposes, npon the salaries of officers is highly demoralizing to tbe pobllo service and

discreditable to the country. Though an officer should re as free any other citizen toglve his own money in aid oi his ODlnions or his party, lie should also be aa Iree as any other citizen to refuse tomnkesucli gifts. If salaries are but a lair compensation for the time and laborof the officer, it is gross Injustice to levy a tax upon them. If tbey are made excessive in order that, they may bear tbe tax, the excess is an ludlrect robbery gf the publio funds. I recommend, therefore, snob a revision and extension of present statute as shall secure to those in every grade of official Hie or pnbllc employment the protection with which a gre i anu enugnieueo nation snouiu guard i hose wbo are lalthlul In its service. Our relations witb foreign countries have continued peaceful. Wlih ureat Britain there are still unsettled questions, growing out of the local laws ot the maritime provinces and the action of provincial authorities, deemeu to be In derogation of rights secured by treaty to American Usher men. The united States minister In London has been Instructed to present a demand for I uj.8U5.02, In view of the damages received by American citizen at Fortune Bay of tbnstb day of January, 1878. The subject bas been taken into consideration by the British Uov ernment, and au early rep'y is anlicn aled. Lpon tue completion or uie necessary prellmlunry examlnaiions. the subject of our par ticipation In the provincial fisheries, as regulated by tteaty, will at once lie brought to tbo attention or tbe British Uovernment with a view to an early and permanent settlement of the whole question, which was only temporarily adjusted by tne treaty of Washington. Etfotts have been made to cbtaln the removal of restrictions found Injurious to tbe exportation of call e to tne United Kingdom. nome correspondence nas aisooccurrea witn regai d to tbe rescue and saving of life and firoperty oil the lakes, whlcn ha resulted In mportaot modifications of the pre lous regulations of tne Dominion Uovernment on the subject, Id the int:rcal of humanity and comIu accordance with tbe Joint resolution o the last session of Congress, commissioners were appointed to represent the United states at tbe tw,n international exhibitions in Australia, one of which is now in progress at Sydney, and the other to be held next year at Melbourne. A desire has been expressed by our merchants and manufacturer interested in the Important and growing trade with Australia, that, an Increased provision should be made by Congress for I ue representation of our Industries at the Melbourne exhibition of next year, and the subject is respectfully submitted to your favorable consideration. . Tbe assent ot the Uovernment bas been given to the landing, on the coast of Massachusetts, n a new aud Independent transatlantic cable between France, by tbe way of me r rencn lsiana oi m. t'lerre, aua tnis country, subject to auy future- legislation of Congress on thesubect. Tbe coudltloaslmposed, before allowing this connection with our shores to be established, are such as to secure its competition witb any existing or future lines oi marine came, aua preclude amalgamation therewith, to provide for entire equality of rtshts to our Uovernment and people wfthtbosdof France In tbe use of the cable. aud prevent any exclusive possession of the privilege as accorded by France to the disadvantage of anyiuture cable communication between France and the Uulted States which mny be pn j-cled and accomplished by onr citizens. Au important reduction of the present rates ol cblecommunicai Ion with Europe, felt to be too burdensome to the interests ot ourco nineroe, must necessarily flow from the establishment or tnis competing line. i ne attention or Gongre&s was diawnto tbe propriety of some general regulation by Congress of tue whole subject of transmarine caoles by my predecessor la bis message of De ceinhur. 7, 87t, and I respectfully submit to your consideration the Importance of Congressional action lu this matter. The a estlons of grave Importance with Spain, growing out of ibe incidents of the Cu ban lusurrec Ion have iieen, tor the moat part, happily and honorably settled. It may reasonably be anticipated that tbe commis sion now sitting in Washington, for the decision or private cases in this connection, will soon be able to bring its labors to a conclusion. ine long stauoiua' question oi loast norma claims bus lately been renewed as a subject of correspondence, and may possibly require Congressional set Ion for its final disposition. A treaty with the Netherlands, with respect tocousular rights and privileges, similar to I hose with other powers, has b-en signed and ratified, and the ratifications were exchanged on the 31st of July last. Negotiations for extradition treat l. s with tbe Netherlands and with Denmark are now in progress. e-oni questions with Switzerland, in regard to pauper nil convict em -grants, have arisen out. it is no', aouoteu int iney win oe arranged upon a Just an I satisfactory oasis. A question bas also occurred with respect to an asserted claim oy Swtsi municipal authorities toexerclse tutelage over persons and property ot riwls citizens naturalized in this country. It is possible mis may require adjustment by treaty. With the German Empire frequsnt questiousari.se In connection with the suhjecta of natnru'tzstion and exoatriutlon: but the Imperial Uovernment baa constantly manifested ade.ire to strictly maintain and comply wlta all treaty stipulations in regard to them. In consequence of I he omission of Congress to provide for a diplomatic representative at Athens, the legation to Greece has been with drawn. There Is now no channel of diplomatic communication between the two countries, and the expediency of providing for one, iu some form, is submitted to Congress, Relations with Austria, Russia, Italy, Portugal, Turkey and Belgium continue amicable, and marked by no incidentof esp -cial Importance; A change of the person al head ot the Govern men", of r gypt has taken place. No change, however, has occurred in tbe relations be tween Egypt and the United states. The aot Ion i. fm. Egyptian Government in presenting to tbe O'ty ol New York one of tbe ancient obelisks, which possess uch historic interestis h'glny appreciated as a generous mark of lnte liatlonsl regard If prosperity should attend th- enterprise of its transportation across the Atl itit'c, It erection in a conspicuous position In tbe chief commercial city of the nation will soon be accomplished. Tim treaty recent y uia:e between Japan and the Uniied slates in regard to tbe revision orfmmer commercial treat ies. It Is now believed will be followed by similar action in t be part of other treaty on wers. The attention of Congress Is again in vitd to tbe subject of the 'Indemnity funds received some years since from Japan and China, which with their accumulated lute rest, now amonut to considerable sums. If any partot these funds is justly due to American cltir-ns they should receive It promptly ; i d whatever may bave beea received by this con ti try In excess of sti lolly Just denands, should lu some form be returned to tbe nations to whom it equitably belongs. Tne Government of China his signified Its wllhntn fs to consider tne question o- the emigration of lis subjects to the United States with a dispassionate ralrness, an l to co-operate In sneh measures as may lend to prevent Injurious consequ -tio-s n tne United -H tea Tue negotiation are stid proceeding, and will be pr- ssesl with diligence. question having arisen between China ant Japan abnus the bew Chew islands, the Unite I states (i vernment has takeu measures to Inform t hose powers of Its reaulaets to extend Its good 'tli sas for the maintenance of pea-w, if they shall ruU'Ully deem It desirable and And It practicable to avail themselves of tbe proffer. r It i a gratification to be able to announce that, iliiough the Judicious and energetio action ol-the military commanders of tbe two nations on each aide of t he Rio Grande, under tha instructions of their respective Governmeuls, raids and d predallona have greatly decreased-and, lu tbe localities where formerly most destmollve. hivn now almost wholly ceased. In view of this result, I entertain a con tlileut expectation that toe prevalence of quiet- on tbe border w 11 soon become ao assured as to Justliy a rn-i location of the pres entor ersto our mi diary commanders as lo cro-sl g Ihe border, w1ih nteuoouraglng such d ainrbancea as won d endanger the peace of the two countries. Thetblr instalment of tbe award against Mexico under the c anna commission of Jnly 4, 1868 was duly paid, and bas been put In course of distribution In pursuance of the act of ougrtss providing lor the name. Th s sav-lslact-ny sdualiou betvoea tbe two countries leads tne to anticipate an expansion of our trade with Mesl.oaud an li.oreasMt contrilia tron ot capital and Industry oy onr people to the deve.lnprnMit "f tbe great resources of that country. I earnestly commend to tbe wisdom or Congress th provision ot suitable legislation looking to this result. Diplomat io Intercourse with Colombia Is again f.iily restored by tbe arrival or a minister from tbat country to the United states.

This Is especially fortunate. In view or tbe fact that the question of an lnter-oceanlo canal baa recently assumed a new and Important aspect, and is now under discussion with the Central American countries through whose territory the can ill, by the Nicaragua route, would have to pass. It is trusted that enlightened statesmanship on their part will see tbat the early prosecution of such a work will largely Inure to tbe benefit, not only of iheir own citizens and tbose of the United states, but of tbe commerce of tbe civilized world. It Is notdoubt ed tbat, should the work be undertaken nnder the protective auspices of the United Slates, and upon saltslactory concessions for the rigbtor way, and its security, by the Central American governments, the capital for Its completion would be readily furnished from this country and Europe, which might, fail iug snch guarantees, prove Inaccessible. idploniatic relations with cntii have also been atrengt hened by the reception of a minister from that country. The war between leru. Bolivia, and Chill atlll continues. The Uulted States bave not deemed It proper to Interpose In tbe matter, further than to convey to ail the tiovernmenta concerned, the assurance that tne friendly offices of the Government of the United States for the restoration of peace opoa an honorable basis will be extended. In case the belligerents shall exhibit a readiness to accept them. Cordial relation continue with Brazil and tbe Argentine Republic, and trade with those countries Is Improving. A provision for regular and more frequent mail communication, in onrnwn ships, between the ports of tlua country and the nations of South Anier ca seems to me to deserve tbe attention of Congress, aa an essential precursor of an enlargement or our commerce with tbem, and an extension ot onr carrying tr.de. A recent revolution In Venezuela has been followed by the establishment ol a provisional Government. This Government nas not yet been formally recognized, and it in deemed dosiraole to await tne proposed action of the people, which is expected to give it the sanction of constitutional forms. A naval vessel has been sent to the Samoan Islands, to make .urveys and take possession of t he prt vi leges otdedto theUn lied States bv Samoa, In the harbor of Pago Pago. A coaling station Is lobe established thete, whlcb will be convenient and t-sefullo United States vessels. Tne subject of opening diplomatic relations with Roumanla an. Set via, now become Independent sovereignties, is at present under consideration, and Is the abject of diplomatic correspondence. There is a gratify lng Increase of trade with nearly all European and American countries, and it is be leved tbat with judicious set ton in regard to Its development it can and will be still more enhanced, and that A inerican products and manufactures will fiud new and expanding markets. Tbe reports of diplomatic and consular officers upon this subject, under the system now adopted, have resulted In obtaining much valuable information, which bas been and will continue to belaid befire Congress aud the pnbllc from time to time. Tne third article of the treaty with Russia, of March at), 1887, by which Alaska was ceded to the United States, provides tbat tbe Inhabitants ot the ceded territory, with the exception of the uncivilized na'lve tribes, shall be admitted to the enjoyment of ail the rlgbts of citizens of the United States, and shall be maintained aud protected in the free enjoyraentot their liberty, property, and religion. The uncivilized tribes are subject to such laws and regulations as Ihe United States may from time to time adopt In regard to the aboriginal tribes of that country. Both the obligations of this treaty a nd the necessities of the people require that some organized form of government over the Territory of Alaska be adopted. There appears to oe uo law for tbe arrest of persons charged with common-law offenses, sucb as assault, robbery and murder, and no magistrate authorized to issue or execute pro

cess in such cases. Serious difficulties have already arisen from offenses of this cbarac er, not only among the original inhabitants, but among citizens of the United States and otber countries, who have engased in mining, fishing and other business operations within tbe Territory. A bill authorizing the appointment ot justices of the peace and constables, aud ttoe arrest and detention of persons charged with orimlnal offenses, and providing lor an appeal to United states courts for the district of Ore gon, in suitable cases, will, at a proper time, be submitted to Congress. Tbe attention of Congress is called to the annual report of the secretary of the treasury on the condition of tbe public finances. The ordinary revennes from all sources for the fiscal year ended June 3d. 1879, were 127:1,827,184.46: tue ordinary expenditures for the same period were r268.17,8s;i S3: leaving a surplus revenue for the year of 18,87900 81. The receipts tor the present fiscal year, ending June 3i, 1881, actual aud estimated, are as follows: Actual receipts for the first- quarter commenoing Jnly 1, 1879, 7,8i8,6t.Hi; estiLjnated receipts for the remaining three-quar-. Tf ers of the year, SJ8,15S,3l.3 ; total receipts for the enr-ent fiscal year, actual and estimated. (2&8.UU0.0U0. Tbe expenditures for the same period will be, actual aud estimated, as follows: For the quartet commencing July 1, 1579, actual exfienditnr38, 191,683,38i.l0; and for the remaintig three quarters of the yeartheexpenditures are estimated at tl72,.siti,6ll.90 making the total expenditures Sl,utto,"-0, and lea vine an estimated surplus revenue for the year euding June 30, 1880, of .4,00.0uu. The total receipts during the next fiscal year ending June .. 1881. estimated sccording to existing laws, will be J2S.S. 000,0 0: and tbe estimated ordinary ex pendliurea for the same period will be S2?8,iiM7,364JU -leaving a surplus of f9,!ir2,6J5.t)l lor that year. The large amount expended for arrears of penllons during the last and the present fiscal year, amounting to 121,747,249 IKI, has prevented the application of the full amount required by law to the sinking fund for tbe current year; bur. these arrears having been substantially paid. It la believed tbat the sinking fund can hereafter be maintained without auy change of existing law. The secretary of war reports tbat the war department estimates for the fiscal year ending June 811,1881, are W0.:-0.-l2H 9! the same being for a less sum of inbney I uat any annual estimate rendered to Congress from that department during a period of at least 12 years. He concurs witn the general of the array in recommending snob legislation as will authorize tbe enlistment of tbe full number of 2o ouO mn for the line of Ihe army, exclusive of the 8,463 men required for detached duty, and therefore not available for service in the field. lie also recommends tbat Congress be asked to i-rovide by law for the disposition ot a large number of abandoned military posts and reservations, which, though very valuable in themselves, have been rendered useless lor military purposes by the advance of civilization and settlement. Ue unties with the quartermaster general in recommending that an appropriation be made for the consirnction of a cheap and perfectly fire proof nuudlog for tbe safe storage of vast amouui-of money accounts, vouchers, claims, and other valuable records now In the quartermaster general's office, and exposed to great risk to total destruction by fire. He also recommends, in conformity with the views of tbe odge-ad vocate general, some dec'aratory legislation in refeience t tne military statute ol limitations as applied to the crime of desertion. f n these several recommendations I concur. The secretary war further reports, that the wo k f.r tbe Improvement of the Souih Pass of the Mississippi river, under eon tract with Mr. James B. Eads, made In pursuance of an act of Congress,basbeen prosecuted during tbe past year, witb a greater measure of success in the attainment of results tban during any previous year. The channel tbiougb tbe South Pass, which, at the beginning of operations In June, 1875, had a depth of only seven and one ba.f teet of water, had, on th8th of Juty, 1879, a minimum depth ol 28 leet, having a width of not 1- ss than 20ti teet and a central depth of DO feet. Payments have been made In accordance with the statute, as the work progressed, amounting In the agreiate to 1,ioo,l00; and farther payments will become due, as, provided by the statute, in the event or success In ma'ntatnlug the channel noww secured. The reports of the general of I he army and of bis subordinates, ureaent a full and detailed account of the military operations for' the suppression of hostilities among the Indians of the Ute and Apache tribes, and praise is justly awarded n tbe officers and troops engaged, for promptness, skill and courage displaced. " The past year bas been one of almost onbroken peace and quiet on the Mexican frontier, and there is reason to believe that the efforts of this Uovernment, and or Mexico, to maintain ntder in that region will prove per luanently successful. This department was enabled during the past year to find temporary though crowded accommodations, ana a safe depository for a portion of ita records, in the completed east wing of the building, designed for the state, war and navy departments. The construction ot the north wing if tbe building, a part of the structure Intended for the use of tbe war department, is being carried forward with ail possible dispatch, and the work should receive

from Congress such liberal appropriations as win secure lis speedy completion. The report of the secretary of the navy shows continued Improvement in tbat branch of the service daring the last fiscal ye.r. Extensl ve repairs have been made npon vense a, and two new ship have been completed aud made re any lor sea. The total expenditures or the year hndea Jane SO. 1879, Including specific appropriation not estimated for by the uvpartment, were S13.5od.71o.lH. The expenses chargeable to tfte year, after ded acting tbe amnnnt of these specific appropriations, were U-V43,3I7 79; hut . tbla la subject to a reduction of ini,72SJ, that amount having been-drawn npon warrants -but not paid oat daring the year. The amonnt of appropriations applicable to tiie--last fiscal year was Hi,' 38 Ws.17. There was, therefore, a balance of tl.47,a1.37 remaining nnexpemled, aud to th credit of the department on June SI, 1879. The estimates-for tbo fiscal year ending June 31, 11, are tli.Hfll.147 ai, which exceeds tne appropriations for t he present fiscal year tmjtd 28. The reason for to Is Increase la ex plalmd In the secretary ' report. Tbe appropriations available for the present fiscal year are Hi&OA 0 17, which wid. in the opinion of tne secretarv, answer all the ordinary demands of the service.. The amonnt drawn irom rbe treasury from July 1 to November 1, 1879, was to,77d,HJ2,or which UvUtrt.. 4W.V3 has been refunded, leaving as Ibe espenuitara for that period 14 f7t,ws.79. If the expenditures of the remalBlna t wo-thlrrlf of tlisj year oo.no exceed the proportion lor these lour roontn-i. there will remain unexpended at t he end of tbe year, 1177, s a) of the current appropriation. The report of the secretary shows tbe gratllylng lrt that among all the dktnurslng officers of the pay corps of the navy there U not one who 1 a defaulter to tbeextentof a single dollar. L nnlte with him in recx Wmierjdirjg the removal of tbe observatory to a mere healthful location. That Institution re line la sredit npon the nation, and has obtained the approbaUon of scientific men In all parts of tbe world. Itammoval from lis present location would not only lie conducive to the health ol Its officers ana professors, but would greatly Increase lu nae1 nines. Ihe appropriation for Judicial expenses wbich lias heretofore been made tor the department of Justice. In gross, was aulKli video at the last session of Congress, uod uoaopropriation whatever was made for the payment of the fees of marshals aud their deputies, either in tbe service of process or for the discharge of other duties; and since Jane ol) these officers have continued the performance of their dui ies without compensation from the Government taking npon themselves tbe necessary Incidental outlays, as well as rendering tneir own services. In only a few unavoidable Instances has tbe proper execution of the process of tbe United States failed by reason of the absence of the requisite a ppropriation. This course of official cowl uct on the part ol these officers, highly creditable lo their fidelity, was advfeea. by the attorney g neral, who inlorraed tbem, however, that they would neeewarlly have to rely for their compensation npon the prospect of future legislation by Congress. 1 therefor especially recommend that immediate appropriation oe made by Cougress for this purpose. The act making the principal appropriation for the department ol justice at previous axs- . sinus has uniiormly contained the following clause: "And for defraying the expenses which may be incurred in tbe enforcement of tbe act approves! February 2, 1870, entitled an act to amend an act approved .May Jill, 170, -entitled 'An act to enforce the rigbt of citizens or the United States to vote In tbeeveral States of the Untied States, aud lot other purposes,' or any acts amendatory thereof or sup- 4 plementary thereto.' " No appropriation was made for this purpose for the current year. As no general election for members of Congressoecurred.the omission was a matter of iltUe practical Importance. Such election will, however, take place during

iue eusuiug year, ana me appropriation made lor the pay of marshals and deputi s should Ire sufficient to embrace compensation for tbe services they may be required to perform at such elections. Tbe business of the supreme court is. at nresent, largely in arrears. It can not be expelled that more causes can be decidexr than are nowdisposed of In lis annual session, or that by any assiduity the distinguished magistrates who comKe the court can accomplish more man is now done, in the courts ot many otthe circuits, also, the business has increased tosuch au extent, that the d. lay of Justice will call the attention of Congress to an appropriate remedy. It Is believed that ail is done in each circuit which can fairly be expected from lis judicial force. The evils arising from delay, , are less heavily felt by tbe Unites! states, thau by private suitors, as its causes are aovaneed by tbe court when it is seen that tbey involve the ciscusslon of questions of a public character. The remedy suggested by the attorney general, is the appointment of additional circuit Judges, and the creation ot an Intermediate court oi errors ana appeals, wnicn snail relieve the supieme court of a part of Its jurisdiction, while a larger force is also obtained for the performance of circuit duties. I commend this suggestion to the consideration of Congress. It would seem to afford a complete remedy, and would Involve, if lu aouitionai circuit judges are appointea, an expenditure, at the present rate ot salaries, of not more than tt&JOth a year, which would certainly be small In comparison with theehjeets to be attained. The report of the postmaster genera! bears testimony to the general revival of business throughout the country. Tbe receipts for tbe poslotlice department, for the fiscal year ending June 80, 1879, were .Al041.U82.lMi, being S7o4,46a 91 more than the revenues of the preceding year. The amount realized from ibe sale of postage stamps, stamped envelopes, and postal cards, was fTW.o-i.ai more than In tbe preceding year, and (2,387 ,559 23 more than In 1877. Tbe expenditures of tbe departure ut were t33,449,rH9 46, of wbich the sum of t37tt -481. Kt was paid on liabilities Incurred in preceding years. Tbe expenditures during the year were FO!,209.77 less than In the preceding year. This reduction Is to be attributed mainly to the operation of the law passed June 17. 1878, changing the compensation of postmasters from a commission on tbe value or stamps sold, to a commission on stamps canealieo. The amount drawn from the treasury on appropriations lu addition to the revennes of the department was :t,u3l,4-S4 tfrt being S2.2T,W7.K8 less tban in the preceding year. The expenses for tbe fiscal year endlDg June 30, 1881, are estimated at 9,92U,!iO. and the receipts from all sources at 32!io,uo0, leaving a deficiency to be appropriated for, oat ol the treasury, of ft T' The r .ions ... uie department with railroad companies bave been Uarmomud, noth withstanding the general reduction by Congress of their compensation, by tbe appropriation for special facilities, aud tbe railway postollice lines have been sreat y extended, especially In tbe Southern States. Tne Interests of tne railway mall ser Ice and of the public would be greatly promoted, aud the expenditures could be more readily eontrolled by the class ticatlon of tbe employes of tbe railway mail service aa recommended by tbe postmaster general, the appropriation tor salaries, with respect io which tbe maximum limit is already fixed bylaw, to be made in gross. Tbe postmaster general recommends an amendment nf the law regulating the Increase . of compensation for Increased service and Increased speed on star routes, so as to enable blm to advertise tor proposals for snch increased service and speed. He also suggests the advantages to accrue to the coion;erce of tbe country from the enactment of a general ' law authorizing contracts with American- ., built steamers, carrying the American flag, . for transporting the mail between ports ol the United Slates and porta of the West Indies . and South America, at a fixed maximum price . per mile, the amount to be expended being ' regnle.ted by annual appropriations, in like manner with the amount paid for the domestic star service. The arrangement made by tbe postmaster general and tbe secretary ol the treasury for the collection nf duty npon books received In tbe mall from foreign countries bas proved so satisfactory in Its practical operation that the recommendation to now made, toat Conirress sball extend tbo provisions of the act of March 3, 1879, nnder which this arrangement was made, so as to apply to all other dutiable articles received la tbe mails lrom foreign conn-, tries. The reports of the tfeecretary of the interior and ol tbe commissioner or Indian affairs. Batting forth the present stale on our relations witn tbe Indian tribes of our territory, Uie ' measures taken to advance their civilization and prosperity, and tbe progress already schleved by them, will be found of more-than ' ordinary interest : Tbe general conduct of our . Indian population has been so sallsiactory tbat the occurrence of two disturbances, which resulted in bloodshed and destruction . ot property, is ail tbe more to be lamented. Tbe history or -tne outbreak on the- White- . River Ute reservation In Western Colorado has become so familiar by elaborate reports In the publio press tbat Its remarkable Incidents Continued on the Fourth Fsge,

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