Jasper Republican, Volume 1, Number 13, Rensselaer, Jasper County, 11 December 1874 — PRESIDENT’S MESSAGE. [ARTICLE]

PRESIDENT’S MESSAGE.

To the Senate and House of Representatives: THE BUSINESS PROSTRATION. Since the convening of Congress one year ago the nation has undergone a prostration in business and the industries such as has not been witnessed with ns for many years. Speculation as to the canses of this prostration might be indulged in without profit, because as many theories would be advanced as there would be independent writers who should express their own views npon the subject. Without indulging in theories as to the cause of this prostration, therefore, I will call your attention only to the fact and to some questions as to which it would seem there should be no disagreement. During this prostration two essential elements of prosperity have been most and capital. Both have been largely nnem- . ployed. Where security has been undoubted capital has been attainable at very moderate rate*. Where labor has been wanted it has been found in abandance, at cheap rates compared with what of the necessaries and comforts of life could be purchased With the wages demanded. Two great elements of prosperity, therefore, have not been denied ns; a third might be added. Our soil and climate are unequaled within the limits of any contiguous territory under one nationality for its varieties of products to feed and clothe a people and in the amount of surplus to spare to feed less favored people. Therefore, with these facts in view, it seems to me that wise statesmanship at this session of Congress would dictate —ignoring the past—distributing in proper channels these great elements of prosperity to any people. Debt abroad is the only element that can, with always a sound currency, enter into our affairs to cause any continued depression In the industries and prosperity of our people. THS CURRENCY. A great conflict for national existence made necessary for temporary purposes the raising of large sums of money from whatever source attainable. It was made necessary in the wisdom of Congress, and I do not donbt their wisdom in the premises, regarding the necessity of the times, to devise a system of national currency, which it is proved to be impossible to keep on a par with the recognized currency of the civilized world. This begot a spirit of speculation, involving an extravagance and luxury not required for the happiness and prosperity of a people, and involving, both directly and indirectly, foreign indebtedness. The currency, being of a fluctuating value and unsafe to hold for legitimate transactions requiring money, became a subject of speculation in itself. These two causes, however, have involved us In a foreign indebtedness contracted in good faith by the borrower and the lender, which should be paid in coin and according to the bond agreed npon when the debt was contracted—gold or its equivalent. The good faith of the Government cannot be violated toward its creditors at the national disgrace. Our commerce should be encouraged; American shipbuilding and carrying capacity increased: foreign markets sought for products of the soil and manufactories, to the end that we may be able to pay these debts. Where a market can be created for the sale of our products, either of the soil, the mine or tne manufactory, a new means is discovered of utilizing oar idle capital and labor to the advantage Of the whole people; but in my judgment the first step toward accomplishing this object is to secure a currency good wherever civilization reigns —one which, if it becomes superabundant with one people, will find a market with some other—a currency which has as its basis the labor necessary to produce it, which will give it value. Gold and silver are now the recognized medium of exchange the civilized world over, and to this we should return with the least practicable delay.

In view of the pledges of the American Congress when our present legal-tender system was adopted and the debt contracted, there should be no delay, certainly no unnecessary delay, in fixing by legislation a method by which we will return to specie. To the accomplishment of this end I invite your special attention. I believe firmly that there can be no prosperous and permanent revival of business and the industries until a policy is adopted, with legislation to carry it out, looking to a return to a specie basis. It is easy to conceive that the debtor and speculative classes may thluk it of value to make a socalled money abundant until they can throw a portion of their burdens upon others; but even these, I believe, would be disappointed by the result if a course should be pursued which will keep in doubt the value of the legal-tender medium of exchange. A revival of the productive industries la needed by all classes, and by none more than the holders of property, of whatever sort, with debts to liquidate from" the realization, upon its sales. But, admitting that the two* classes of citizens referred to are to be benefited by expansion, would it be honest to give it? Would not the general loss be too great to justify such relief? Would it not be just as honest and prudent to authorize each debtor to issue his own legal-tenders to the extent of his liabilities as to do this? Would it not be safer, for fear of over-issues by unscrupulous creditors, to say that all debts and obligations are obliterated in the United States, and now we commence anew, each possessing all he has at the time free from incumbrance ? These propositions are too absurd to be entertained for a moment by thinking people. Every delay in the preparation for final resumption partakes of this dishonesty, and is only less in degree as the hope is held out that a convenient season will at last arrive for the good work of redeeming our pledges to commence. It will never come, in my opinion, except by the positive action of Congress or by national disasters which will destroy for a time at least the credit of individuals and the State at large. I believe it is in the power of Congress at this session to devise such legislation as will renew confidence, revive all the industries, start us on a career of prosperity to last for many years, and to save the credit of the nation and of the people. Steps toward ‘.he return to a specie basis' are the great requisites to this devoutly-to-be-sought-for end. There are other points I may touch upon hereafter.

A nation dealing in a currency below that of specie in value labors under two great disadvantages: First, having no use for the world’s acknowledged medium of exchange, gold and silver, these are driven out of the country because there is no demand for their use; second, the medium of exchange in use being of a fluctuating value, for, after all, it is only worth just what it will purchase of gold and silver, metals having an intrinsic value just in proportion to the honest labor it takes to produce them, a large margin must be allowed for profit by the manufacturer and producer. It is months from the date of production to the date of realization. Interest upon capital must be charged and risk of fluctuation in the value of that which is to be received in payment added: hence high prices act as a protection to the foreign producer, who receives nothing in exchange for the product of his skill and labor except a currency good at a stable value the world over. It seems to me that nothing is clearer than that the greater part of the burden of existing prostration for the want of a sound financial system falls upon the workingman, who must after all produce the wealth, and the salaried man who superintends and conducts business, The burden falls upon them two ways: by the deprivation of employment and by the decreased purchasing power of their salaries. It Is the duty of Congress to devise the method of correcting the evils which are acknowledged to exist, and mot mine; but I will venture to suggest two or three things which seem to me as absolutely necessary to a return to specie payments—the first great requisite in a return to prosperity. The legaltender clause to the law authorizing the issue of currency by the National Government should be repealed, to take effect as to all contracts entered into after a day fixed in the repealing act, not_to apply, however, to payments of salaries by the Government or for other expenses now provided by law to be paid in currency. In the interval pending between the repeal and final resumption, provision should be made by which the Secretary of the Treasury can obtain gold as it may become necessary from time to time, from the date when specie resumption commences. To this might and should be added a revenue sufficiently in excess of expenses to insure an accumulation of gold in the Treasury to sustain redemption.

I recommend this subject to your carefnl consideration, believing that a favorable eolation is attainable and that if reached oy this Congress the present and future generations will ever gratefully remember it as their deliverer from a thralldom of evil and disgrace. With resumption free banking may be authorized with safety, giving full protection to bill-holders, which they have not under the existing laws. Indeed, I would regard free banking as essential. It would give a proper elasticity to the currency. As more currency would be required for the transaction of legitimate business, new banks would be started, and in tnm banks would wind up their bnsiaess when it was found there was a superabundance of currency. The experience and judgment of the people can best decide just how much currency, is required for the transaction of the business of the country. It is unsafe to leave the settlement of this question to "Congress, the Secretary of the Treasury or the Executive. Congress should make the regulations under which banks may exist, but should not make banking a monopoly by limiting the amount of redeemable paper currency that shall be authorized. Such importance do I attach to this subject, and so earnestly do I commend it to your attention, that I give it prominence by introducing it at the beginning of this message.

roßsisH uunoxs. During the past year nothing has occurred to disturb the general, friendly and cordial relations of the United Slides with other powers. The correspondence submitted herewith between this Government and its diplomatic representative* in other countries shows a satisfactory condition of all questions between the United States and the most of those countries, and with few exceptions, to which reference is hereafter made, the absence of any points of difference to bo adjusted. . : .... The notice directed by the resolution of Congress of June 17,1874, to be given to terminate the convention of July 17,1868. between the United States and Belgium has been given, and the treaty will accordingly terminate on the Ist day of July, 1875. This convention secured to certain Belgium vessels entering the ports of the United States exceptional privileges which are not accorded to our own vessels. The other features of the oonvention have proved satisfactory and have tended to the cultivation of beneficial commercial intercourse and friendly relations between the two countries. I hope that the negotiations which have been Invited will result in the con elusion of another treaty which may tend to the interests of both countries. Our relations with China continue to be friendly. -During the past year the fear of hostilities between China and Japan, growing ont of the landing of an armed force upon Die island of Formosa by the latter, has occasioned uneasiness. It is earnestly hoped, however, that the difficulties arising from this cause will be adjosted.and that the advance of civilization in these umpires may not be retarded by a state of war. . In consequence of the part taken by certain citizens or the United States in this expedition our representatives in those countries have been instructed to impress upon the Governments of China and Japan the firm intention of this country to maintain a strict neutrality in the event of hostilities, and carefully prevent any infraction of law on the part of onr citizens. In connection with this subject I call the attention of Congress to a generally conceded tact that the great proportion of Chinese immigrants who come to onr shores do not come voluntarily to make their homes with us and their labor productive of general prosperity, but they ceme under contract with head men, who own them almost absolutely. In a worse form does this apply to the Chinese women. Hardly a perceptible percentage of them perform any honorable labor. They are brought for shameful purposes, to the disgrace of tne communities where they have settled, and to the great demoralization of the youths of those localities. If this evil practice can be legislated against It will be my pleasure as well as duty to enforce any regulation to secure so desirable an end. It is hoped that negotiations between tbe Government of Japan ana the treaty powers, looking to the further opening of the Umpire and to the removal of various restrictions npon trade and travel, may soon produce the result desired, which cannot fail to innre to the benefit of all the parties. Having on previous occasions submitted to the consideration of Congress the propriety of the release of the Japanese. Government from the further payment of Indemnity under the convention of October 22, 1884, and as no action has been taken thereon, it becomes my duty to regard the obligations of the convention as in force, and, as the other powers interested have obtained their portion of the Indemnity in folk the Minister of the United States in Japan has, in behalf of this Government, received the remainder of the amount dne to the United States nnder the Convention of Simouseky. I submit the propriety of applying the income of a part, if not, the whole, of this fnnd to the education in the Japanese language of a number of young men, to be nnder obligations to serve tbe Government for a specified time as interpreters at the legation and the consulates in Japan. A limited nnmber of Japanese youths might at the same time be educated in onr own vernacular, and mutnal benefit would result to both Governments. The importance of having onr own citizens competent and familiar with the language of Japan to act as interpreters and in other capacities connected with the legation and consulates in that country cannot readily be over-estimated. The amount awarded to the Government of Great Britain by the commission organized under the provisions of the Treaty of Washington, in settlement of the claims of British subjects arising from acts committed between April 18, 1861, and April 9, 1865, became payable under terms of the treaty within the past year, and was paid npon the 21st day of September, 1874.

ALIEN CLAIMS AGAINST THE UNITED STATES. In this connection I renew my recommendation, made at the opening of the last session of Congress, that a special court be created to hear and report ail claims of aliens against the United States arising from acts committed against their persons or property during the insurrection. It appears equitable that opportunity should De offered to citizens of other States to present their claims, as well as those British subjects whose claims were not admissible nnder the late commission, to the early decision of some competent tribunal. To this end I recommend the necessary legislation to organize a court to dispose of those claims of aliens of the nature referred to in an equitable and satisfactory manner, and to relieve Congress and the departments from the consideration of these questions. THE COLONY OP NEWFOUNDLAND. The legislation necessary to extend to the colony of Newfoundland certain articles of the Treaty of Washington of the Bth of May, 1871, having been had, a protocol to that effect was signed in behalf of the United States and of Great Bntain on the 28th day of May last, and was duly proclaimed on the following day. A copy of the proclamation is submitted herewith.

THE NOHTHWESTERN BOUNDARY. A copy of the report of the Commission appointed under the act of March 19, 1872, for surveying and marking the boundary between the United States and the British Possessions, from the Lake of the Woods to the summit of the Rocky Mountains, is herewith transmitted. lam happy to announce that the field work of the Commission has been completed, and the entire line, from the northwest corner of the Lake of the 'Woods to the summit of the Rocky Mountains, has been ran and marked upon the surface of the earth. It is believed that the amount remaining unexpended of the appropriation made at the last session of Congress will be sufficient to complete the office work. I recommend that the authority of Congress be given to use the unexpended balance of tne appropriation in the completion of the work of the Commission in miking the report and printing the necessary m p? THE ALABAMA CLAIMS. The court known as the Court of Commissioners of Alabama Claims, created by an act of Congress at the last,session, has organized and commenced the work, and it is to be hoped that the claims admissible under the provisions of the act may be speedily ascertained and paid. UNITED STATES CITIZENS AND REAL ESTATE IN

TURKEY. It has been deemed advisable to exercise the discretion conferred upon the Executive at the last session by accepting the conditions required by the Government of Turkey for the privilege of allowing citizens of the United States to noM real estate in the former country by assenting to a certain change in the jurisdiction of the courts in the latter. A copy of the proclamation npon these subjects is herewith communicated. MEXICO AND SOUTH AMERICA. There has been no material change in our relations with the independent States of this hemisphere which were formerly under the dominion of Spain. Marauding on the frontiers between Mexico and Texas still frequently takes place, despite the vigilance of the civil and military authorities in that quarter. The difficulty of checking such trespasses along the course of a river of such length as the Rio Grande,- and so often fordable, is obvious. It is hoped that the efforts of this Government will be seconded by those of Mexico, to the effectual suppression of acts of wrong. From a report upon the condition of the business before the American and Mexican Joint Claims Commission, made by the agent on the part of the United States, and dated Oct. 28, 1874, it appears that of the 1,017 claims filed on the part of citizens of the United States 483 had been finally decided and 75 were in the hands of the umpire, leaving 462 to be disposed of; and of the 996 claims filed against the United States 728 had been finally decided on, one was before the umpire and 371 remained to be disposed of. Since the date of such report other claims have been disposed of, reducing somewhat the number still pending, and others have been passed upon by the arbitrators. It has become apparent, in view of these figures and of the fact that the work devolving on the umpire is particularly laborious, that the Commission wonld be unable to dispose of the entire number of claims pending prior to the Ist day of February, 1875, the date fixed for its expiration. Negotiations are pending looking to the securing of the results of the decisions which have been reached and to a farther extension of the Commission for a limited time, whieh, it is confidently hoped, will suffice to bring all the business now before it to a final close. / The strife in the Argentine Republic is to be deplored, both on account of the parties thereto and from the probable effects of the- interests of those engaged in the trade to that quarter, of whom the United States are among the principal. As yet, so far as I am aware, there has been no violation of onr neutrality rights, which, as well as our duties in that respect, it shall be my endeavor to maintain and observe. : . It is with regret I announce that no further payment ha* been received from the. Government of Venezuela on account of awards in favor of citizens of the United States. Hopes have been entertained that if the Republic could escape

■ 1 w t both foreign and civil war for a few years Us great natural resources would enable it to honor its obligations. Though it is now understood to be at peace with other countries, a serious insurrection is reported to he in progress in an important region of that Republic. This may be taken advantage of as another reason to delay the payment of the dne# of onr citizens. CUBA AMD ST AIM. The deplorable strife in Cuba continues, without any marked change in the relative advantages of the contending forces. The insurrection continues, bnt Spain has gained no superiority. Six years of strife give the insurrection a significance which cannot be ignored. It# duration and the tenuity of Its advents, together with the absence of manifested power of suppression on the part of Spain, cannot be controverted, and may make some positive steps on the part of other powers a matter of necessity. I had confidently hoped at this time to be able to announce an arrangement of some of the important questions between this Government and that of Spain, bnt the negotiations have been protracted. The unhappy intestine dissensions of Spain command onr profound sympathy, and must be accepted as, perhaps, a cause for some delay. An early settlement, in part at least, of the questions between the Governments is hoped for. In the meantime, awaiting the results of immediately-pending negotiations, I defer a farther and fuller communication on the subjeet of the relations of this country and Spain. . iw, .. , EXPATRIATION AND NATURALIZATION. I have again to call the attention of Congress to the unsatisfactory condition of the existing laws with reference to expatriation and the election of nationality. Formerly, amid conflicting opinions and decisions, it was difficult to exactly determine how tar the doctrine of perpetual allegiance was applicable to the United States. Congress, by the set of the 27th of Jniy, 1888, asserted the abstract right of expatriation as a fundamental principle of this Government. Notwithstanding each assertion and the necessity of the frequent application <rf the principle no legislation has Keen had defining what acts or formalities shall work expatriation, or when a citizen shall be deemed to have removed or to have lost his citizenship. The importance of such a definition is obvious. The representatives of the United States in foreign countries are continnally called upon to lend their aid and the protection of the United States to persons concerning the good faith or tbe reality or whose citizenship there is at least great question. In some cases the provisions of the treaties furnish some guide; in others it seems left to the persons claiming the benefit of citizenship while living in a foreign country, contributing in no manner to the performance of the duties of i citizen of the United States, and without the intention at any time to return and undertake those duties, to use the claim of citizenship of the United States simply as a shield from the performance of the oollgations of a citizen elsewhere.

The status of children bom of American parents residing ip « foreign country, of American women who nave married aliens, or American citizens residing abroad, where such question is not regulated by treaty, are all sources of frequent difficulty and discussion. Legislation on these and similar questions, and particularly defining when and nnder what circumstances expatriation can be accomplished, or is to be presumed, is especially needed. In this connection I earnestly call the attention of Congress to the difficulties arising from fraudulent naturalization. The United States wisely, freely and liberally offers its citizenship to all who may come in good faith to reside within its limits, on their complying with certain prescribed reasonable and simple formalities and conditions. Among the highest duties of the Government is that to afford a firm, efficient and effectual protection to all its citizens, whether native born or naturalized. Care should be taken that a right, carrying with it such support from the Government, should not be fraudulently obtained, and should be bestowed only upon frill proof of a compliance with the law, as frequent instances of illegal and fraudulent naturalization and of unauthorized use of certificates thus improperly obtained come to light. In some cases the fraudulent character of the naturalization has appeared upon the face of the certificate itself: in others examination discloses that the holder had not complied with the law, and in others certificates have been obtained where the persons holding them not only were not entitled to be naturalized, but had not even been within the United States at the time of the pretended naturalization. Instances of these classes of fraud are discovered at our legations, where the certificates of naturalization are presented either for the purpose of obtaining passports or demanding the protection of the legation. When the fraud is obvious on the face of such certificates they are taken up by the representatives of the Government and forwarded to the Department of State. Bnt even the record of the court in which the fraudulent naturalization occurred remains, and duplicate certificates are readily obtainable. Upon the presentation of these for the issne of passports or demanding protection of the Government the fraud sometimes escapes notice, and such certificates are not infrequently nsed in transactions of business, to the deception and injury of innocent parties. Without placing any additional obstacle in the way of the obtainment of citizenship by the worthy and well-intentioned foreigner who comes in good faith to cast his lot with us, I earnestly recommend further legislation to punish fraudulent naturalization and to secure the ready cancellation of the record of every naturalization made in fraud.

TREATIES OP EXTRADITION. Since my last annual message the exchange has been made of the ratification of treaties of extradition with Belgium, Ecuador, Peru and Salvador; also a treaty of commerce and navigation with Peru, and one of commerce and consular privileges with Salvador; all of which have been duly proclaimed, as has also a declaration with Rnssia with reference to trade-marks. REPORT OP THE SECRETARY OP THE TREASURY. The report of the Secretary of the Treasury, which by law is made directly to Congress and forms no part of this message, will snow the receipts and expenditures of the Government for the last fiscal year, the amount received from each source of revenue, and the amount paid ont for each of the departments of the Government. It will be observed from this report that the amount of receipts over expenditures has been but $2,344,882.30 for the fiscal year ending June 80, 1874, and that for the current fiscal year the estimated receipts over expenditures will not mnch exceed $9,000,000. In view of the large national debt existing, and the obligation to add 1 per cent, per annum to the Binking fund, a sum amounting now to over $34,000,000 per annum, I submit whether the revenae should not be increased or the expenditures diminished. To reach this amount of snrplus and not to provide for the sinking fund is a.partial failure to comply with the contracts ana obligations of the Government. At the last session of Congress a very considerable reduction was made in the rates of taxation and the number of articles subjected to taxation—the question may well be asked whether or not in some instances unwisely. In connection with this subject, too, I venture the opinion that the means of collecting the revenue, especially from imports, have been so embarrassed by legislation as to make it questionable whether or not large amounts are not lost by a failure to collect, to the direct loss of the Treasury and to the prejudice of the interests of honest importers and tax-payers. The Secretary of the Treasury in his report favore legislation looking to specie payments, thus supporting the views previously expressed in this message. He also recommends economy in appropriation; calls attention to the loss of revenue from repealing the tax on tea or coffee, without benefit to the consumer; recommends an increase of ten cents a gallon on whisky, and, further, that no modification be made In the Banking and Cnrreney bill passed at the last session of Congress, unless a modification Bhould become necessary by reason of the adoption of measures for returning to specie payments. In these recommendations I cordially join.

THE TARIFF. I would suggest,to Congress the propriety of readjusting the tariff so as to increase the revenue and at the same time decrease the nnmber of articles npon which duties are levied. Those articles which enter into onr manufactures and are not produced at home, it seems to me, should be entered free. Those articles of manufacture which we produce a constituent part of, bnt do not prodnee the whole, that part which we do not produce should enter free also. I will instance fine wool, dyes, etc. These articles must be imported to form a part of the manufacture of the higher grades of woolen goods. Chemicals used as ayes, compounded in medicines and used in various ways in manufactures come under this class. The introduction, free of duties, of such wools as we do not produce should stimulate the manufacture of goods requiring these. There are many articles entering into home m&nnfactures which we do not produce ourselves, the tariff npon which increases the cost of producing the manufactured article. AH corrections in this regard are in the direction of bringing labor and capital into harmony with each other and of supplying one of the elements of prosperity so much needed. THE ARMY AND NAVY. The report of the Secretary of War, herewith attached, and forming a part of this message, gives an the information concerning the operations, wants and necessities of the army, and contains many suggestions and recommendations which 1 commend to your special attention. There is no class of Government employes who are harder worked than the army of-' fleers and men; none who perform their tasks more cheerfully and efficiently, and under cireum-

oatlons or tne Hecretary or w*p i regard a* judicious, and I especially commend to your attention the following: The consolidation of Government arsenals; the restoration of mileage to officers traveling under orders; the exemption of money received from the sale of subsistence stores from being covered into the Treasury; the use of appropriations for the purchase of subsistence stores without waiting for the beginning of the fiscal year for which the appropriation fe made; for additional appropriations for the collection of torpedo material; for increased appropriations for the manufacture of arms; for relieving the various States from Indebtedness for arms charged to them during the rebellion; for dropping officers from the rolls of the army without trim for the offense of drawing pay more than once for the same period; for the discouragement of the plan to pay soldiers by checks,* and for the estabmlment of a professorship of rhetoric and .English literature at West Point The reasons for the recommendations are obvious, and are set forth sufficiently in the report attached. 1 also recommend that the status of the staff corps of the army be. fixed, where this has not already been done, so that Sromotlons may be made and vacancies filled as ley occur in each grade when reduced below the nnmber to be fixed by law. The necessity for such legislation is specially felt now in the Pay Department the number of vacancies in that Department being below the number adequate to the performance of the duties required of them by The efficiency of the navy has been largely increased daring the last year, nnder the impulse of the foreign complications which threatened ns at the commencement of the last session of Congress. Most of onr efficient wooden ships were put in condition for immediate service, and the repairs of our iron-clad fleet were pushed with the utmost vigor. The result is that most of them are in effective condition, and need only to be manned and set in commission to go at once into service. Some of the new sloops anthorizedby Congress are already in commission, and most of the remainder are launched and wait only the completion of their machinery to enable them to take their places as part of onr effective force. Two iron torpedo-ships have been completed daring the last year; and fonr of our large turreteairon-clads are now undergoing repairs. When they are finished, everything that is needfiil of onr navy, as now authorized, will be in condition for service, and with the advance in the science of torpedo warfare the American navy, comparatively small as it is, will be found at any time powerful for the purposes Of a peaceful nation. Mach has also been accomplished daring the year in aid of science and to Increase the sum of general knowledge and further the interests of commerce and civilization. Extensive and much-needed soundings have been made for hydrographic purposes and to fix the proper routes of ocean telegraphs. Farther surveys of the Darien Isthmus have been undertaken and completed, and two vessels of the navy are now employed, in conjunction with those of England, France, Germany and Russia, In observations connected with the transit of Venus, useful and interesting to the scientific world. The estimates for this branch of the public service do not differ materially from those of last year, the general support of the service being somewhat less and those for improvements at various stations rather larger ’tiian the corresponding estimate made a year ago. The regular maintenance and a steady Increase in the efficiency of this meet important arm, in proportion to the growth of onr maritime intercourse and interests, are recommended to the attention of

Congress. The ase of the navy dnring peace might be fhrther utilized by a direct authorization of the employment of naval vessels in surveys of the supposed navigable waters of other nationalities on this continent, especially the tributaries of the two great rivers Of South America, the Oronocoand the Amazon. Nothing prevents, under existing laws, snob explorations, except that expenditures must be made in such expeditions beyond those usually provided for by the appropriations. The field designated is unquestionably one of interest, and. one capable of. h large development of commercial interests, advantageous to the people reached and to those who may establish relations with them. EDUCATION AND THE FOSTOFFICE. The education of the people entitled to exercise the right of franchise 1 regard essential to general prosperity everywhere, and especially so In republics, where neither education nor previous condition enters Into account In giving suffrage. Next to the public school the Fosiofflee is the great agent of education over onr vast territory. The rapidity with which new sections are being settled, thus increasing the cost of carrying the mails in a more rapid ratio than the Increase of receipts, is not alarming. The report of the Postmaster-General, herewith attached, shows that there was an increase of revenue in this department in 1873 over the previous year of $1,674,411, and an increase of the cost of carrying the mails and paying employes of $3,041,467.91. The report of the Postmaster-General gives interesting statistics of his department, and, comparing them with the corresponding statistics of a year ago, shows a growth in every branch of the department. A postal Convention has been concluded with New South Wales, an exchange of postal-cards established with Switzerland, and the negotiations pending for several years-past with Prance have terminated in a convention with that conntry, which went into effect last August. An International Postal Congress was convened in Berne, Switzerland, in September last, at which the United States was represented bv an officer of the Postoffice Department of mnch experience and of qualification for the position. A convention for the establishment of an international poet al union was agreed upon by the delegates of the countries represented, subject to the approval of the proper authorities of those countries. I respectfully direct your attention to the report of the Postmaster-General and to his suggestions in regard to an equitable adjustment of the question of compensation to railroads for carrying the mails.

THE SOUTHERN STATES. Your attention will be drawn to the unsettled condition of affairs in some of the Southern States. On the 14th of September last the Governor of Louisiana called upon me, as provided by the Constitution and laws of the United States, to aid in suppressing domestic violence in that State. This call was made in view of a proclamation issued on that day by D. B. Penn, stating that he was elected Lieutenant-Governor in 1878 and calling upon the militia of the State to arm, assemble and drive from power the usurpers, as he designated the officers of the State Government. On the next day I issued my proclamation, commanded the insurgents to disperse within five days from the date thereof, and subsequently learned that on that day they had taken forcible possesaion of the State House. Troops were sent by me to support the existing and recognized State Government, but before the expiration of the live days the Insurrectionary movement was practically abandoned, and the officers of the State Government, with some minor exceptions, resumed their powers and duties. Considering that-the present State administration of Louisiana had been the only government in that State for nearly two years; that it had been tacitly acknowledged and acquiesced in as such by Congress, and more than once expressly recognized by me, I regarded it aa my clear duty, when legally called upon for that purpose, to prevent its overthrow by an armed mob nnder pretense of fraud and irregularity in the election of 1872. I have heretofore called the attention of Congress to this subject, staling that on account of the frauds and forgeries committed at said election, and beeanse it appeared that the returns thereof weje never legally canvassed, it was impossible to tdl thereby who were chosen, bnt from the bcßt sources of information at my command I have always believed the present State officer* received a majority of the legal votes actually cast at that election. I repeat whatl said in my special message of Feb. 18,1873, that in the event of no action by Congress I must continue to recognize the government heretofore recognized by »e. I regret to say that with the preparations for the |ate elections decided indications appeared in some localities in the Southern States of a determination, by acts of violence and intimidation, to deprive citizens of the freedom of the ballot becanee of their political opinions; bands of men masked and armed made their appearance ; White Leagues and other societies were formed; large quantities of arms and ammunition were imported and distributed to these organizations; military drills, with menacing demonstrations, were held, and, with all these, murders enough were committed to spread terror among those whose political action was to be suppressed if possible by these intolerant and criminal proceedings. In some places colored laborers were compelled to vote according to the wishes of their employers, under threats of a discharge if they acted otherwise, rad there are too many instances In which, when these threats were disregarded, they were remorselessly executed by those by whom they Wert made. I understand that the Fifteenth Amendment to the Constitution was made to prevent this and the like state of things, and the act of May 81,1870, with the amendments, was passed to enforce its provisions, the object of this being to guarantee to all citizens the right to care that the laws be faithfully executed, and convinced by undoubted evidence that violations of said act had been committed, and that a widespread and flagrant disregard of it was content,

plated, Die proper officers won instructed to duties/ 'ctompla^s^lu^made*of^ ence by Federal authority, bnt if the said amendment and act do not provide for such interference under the circumstances as above stated then they are without meaning, force or effect, Mid the whole scheme of colored enfranchisement is worse than mockery and little better than a crime. Possibly Congress may find it dne to truth and justice to ascertain, by means of a committee, whether the alleged wrongs to colored citizens for political purposes are real, @r the reports thereof were manufactured for the occasion. The whole number of troops in the States oT Louisiana, Alabama, Georgia, Florida, South Carolina, North Carolina, Kentucky, Tennessee, A rkansas, Mississippi, Maryland and Virginia at the time of the elections was 4,08*. This embraces the garrisons of all the forts from tbe Delaware to the Golf of Mexico. Another trouble has arisen in Arkansas. Article thirteen of the Constitution of the State, which was adopted in 1868, and npon the ap-i proval of which by Congress the State was restored to representation as one of the States of the Unions provides, in effect, that before any amendments proposed to this Constitution shall become a part thereof they shall be passed by two successive Assemblies and then submitted to and ratified by a majority of the electors of the State voting thereon." On May 11,1874, the Governor convened an extra session of the General Assembly of the State, which, on the 18th of the same month, passed an act providing for a convention to frame a new constitution pursuant to this act, and at an election held on the 80th of Jane, 1874, the convention was approved ‘and delegates were chosen thereto, who assembled on the 14th of last July and formed a new constitution, the schedule of which provided for the election of an entire new set of State officers in a manner conaiy to the them existing election laws of the State On the 18th of October, 1874, this Constitution, as therein provided, was submitted to the people for their approval or rejection, and according to the election returns was approved by a large majority of those qualified to vote thereon, and at the same election persons were chosen to fill all the State, county and township offices. The Governor elected In 1872 for the term of fonr years turned over his office to the Governor chosen under the new Constitution, whereupon the Lieutenant-Governor, also elected in 187* for a term of fonr years, claiming to act as Governor, alleging that said proceedings by which the new Constitution was made and a new set of officers elected were unconstitutional and illegal and void, called upon me, as provided in Section 4, Article 4, ol the Constitu- ’ tion, to protect the State against domestic violence. As Congress is now investigating the political affairs of Arkansas I have declined to interfere. The whole subject Of Executive interference with the affairs of a State is repugnant to public opinion, to the feeling of those who from their official capacity most be need in such interposition, and to him or those who most direct. Unless most clearly on the side of law such interference becomes a crime; with the law to support it, it is condemned without a hearing. I desire, therefore, that all necessity for Executive direction in local affairs may become unnecessary and obsolete. I Invite the attention, not of Congress, bnt of the people of the United States, to the causes and effects of these unhappy questions. Is there' not a disposition on the one side to magnify wrongs and outrages, and on the other side to belittle and justify them? If pnbUo opinion cohid be directed to a correct survey of what exists, and to rebuking wrong and aiding the proper authorities in punishing it, a better state of feeling would be inculcated, and the sooner we would have that peace which would leave the States free Indeed to regulate their own domestic affairs.

I believe that ofethe part of the citizens of the Southern States, me better part of them, there is' a disposition to be law-abiding and to do no violence either to Individual! or the laws existing; but do they do right in ignoring the existence of violence and bloodshed—in resistance to constituted authority? I sympathize with their prostrate condition, .and wonld do all in my power to relieve them, acknowledging that in some instances they have had most trying governments to live under, and very oppressive ones in the way of taxation for nominal improvements, not giving benefits equal to the hardships imposed; but can they proclaim themselves entirely blameless for - this condition? They cannot. Violence has been rampant .in «om« localities,, and has further been justified or denied by those who could have prevented it. The theory is raised that there is to be no further interference on the part of the General Government to protect citizens within a State where the State authorities fall to give protection. This is a great mistake. While I remain the Executive all the laws of .Congress and the provisions of the Constitution, including the amendments added thereto, will be enforced with rigor, with but a regret that they should have added one jot or tittle to the Executive duties and powers. Let there be fairness in the discussion of Southern questions, the advocates of both or all political parties giving honest and truthftil reports of occurrences, condemning the wrong and upholding the right, and soon all will be well. Under existing circumstances the negro votes the Republican ticket because-he knows his friends are of that party. Many a good citizen votes the opposite, not because he agrees . with the great principles of state which separate the parties, hut because, generally, he is opposed to negro rule. This is a most delusive cnr. Treat the negro as a citizen and a voter, as he is and must remain, and soon parties will be divided, not on the color line, but on principles. Then w™shall have no complaint of sectional interferences.

JUDICIAL AFFAIRS. The report of the Attorney-General contains valuable recommendations relating to the administration of justice in the courts of the United States, to which I invite your attention. I respectfully suggest toCongress the propriety of increasing the number of the judicial districts in the United States to eleven, the present number being nine, and the creation of two additional Judgeships. The territory to be traversed by the Circuit Judges is so great and the business of the oourts so steadily Increasing that it is trowing more and more impossible for them to eep up with the business requiring their attention. Whether this would involve the necessity of adding two more Justices of the Supreme Court to the present' number I submit to the judgment of Congress. THE INTERIOR.

The attention of Congress is invited to the report of the Secretary of the Interior and to the legislation asked for by him. The domestic interests of the people are more intimately connected with this department than with either of the other departments of the Government. Its . duties have been added to from time to time until they have become so onerons that, without the most perfect system and order, it will be impossible for any Secretary of the Interior to keep trace of all official transactions having his sanction and done in his name, and for which he is held personally responsible. The policy adopted for the management of Indian affairs known as the “ peace policy ” has been adhered to with the most beneficial results. It is confidently hoped that a few years more Will save our frontier from Indian depredations. I commend the recommendation of the Secretary for the extension of the Homestead laws to the Indians, and for some sort of territorial government for the Indian Territory. A great majority of the Indiana occupying this Territory are- believed to be Incapable of maintaining their rights against the more civilized and enlightened white men. Any territorial form of government given them, therefore, should: protect them in their homes and property for a period of at least twenty years, and before its final adoption should be ratified by a majority of those affected. The report of the Secretary of the Interior, herewith attached, dives much interesting statistical information, which I abstain from giving an abstract of, but refer you to the report itself. PENSIONERS OX THE WAR OF 1812. The act of Congress providing the oath which pensioners must subscribe before drawing their pensions cats off from this bounty a few survivors of the war of 1813 residing in the Southern States. I recommend the restoration of the bounty to all such. The number of persona whose names would be restored to the list of pensioners is not large. They are all old persons who could have taken no part in the rebellion, and the services for which they were awarded pensions were in defense of the whole country. THE CENTENNIAL EXPOSITION. The re port of the Commissioner of Agriculture, herewith attached, contains suggestions of much interest to the genera! public and refers to the approaching Centennial and the part his department is ready to take in it. I feel that the nation at large is interested in having tills Exposition a success, and commend to Congress such' action as will secure a greater general interest in K. Already many foreign nations have signified their intention to be represented at it. It may be expected that every civilized nation will be represented. THE CIVIL SERVICE. The rules adopted to improve the civil service of the Government have been adhered to as closely ks has boon practicable with the opposition with which they meet. The effect of it baa bqen beneficial on the whole and has impracticable to rect and positive support of Congress. Generally, the support which this reform receives is from those who give it their support only to find fault when the rules are apparently departed

from. Removals from office without preferring charges against parties removed are frequently cited as departure* from rales adopted, and maik tnMrrespmnsibl e peraaam aßdwithoaiPgood grounds is also often condemned as a violation of them. Under these circumstances, therefore, I announce that, if Congress adjourns without positive legislation on the subject of « errii-ser-vice reform,” I will regard such action as a disapproval of the system, and will abandon it. Except so far as to require examinations for certain appointees to determine their fitness, competitive examinations will be abandoned. The gentlemen who have given their services without compensation as members of the Board to devise rules and regulations for the government of the country’s civil service have shown much zeal and earnestness in their work, and to them, as well as to myself, it will be a source of mortification if it is to be thrown away. But £. repeat that It is impossible to carry this system to a successful issue without general approval and assistance, and positive law to support It. TBX EMPLOYMENT OP LABOR I have stated that the elements of prosperity to the nation’s capital—labor, skilled ana unskilled, and products of the soil—still remain with' ns. To direct the employment of these is a problem deserving the most serious attention of Congress. If employment can be given to all labor offering itself, prosperity necessarily follows. I have expressed the opinion, and repeat it here, that the first requisite to. the accomplishment of this end is the substitution of a sound currency in place of one of a fluctuating value. This secured, there are many Interests that might be fostered, to the great profit of both labor find capital. How to inance capital to employ labor is the question. OHKA7 TRANSPORTATION. The subject of cheap transportation has occupied tbe attention of Congress. New light on this qnestlon will, without doubt, be given Dy the committee appointed by Hie last Congress to investigate ana report npon this subject. THE OCEAN CARRYING TRADE. A revival of ship-building, and particularly of iron steamship building, is of vast importance to onr* national prosperity. The United States is now paying over $1,000,000 per annum for freights and passage on foreign ships, to be carried abroad and expended in the employment and support of other people, beyond a fair percentage of what should go to foreign vessels, estimating on the tonnage and travel of each respectively. It is to be regretted that this disparity in the carrying trade exists, and to correct it I would be willing to see a great departure from the nsnal course of the Government in supporting what might usually be termed private enterprise. I would not suggest as a remedy direct subsidy to the American steamship lines, but I would suggest the direct offer of ample compensation forcarrying the malls between the Atlantic seaboard cities and the European Continent on American owned and American-built steamers,andwonld ex tend this liberality to vessels carrying the mails to the South American States and to Central America and Mexico, and wonld pursue the same policy from onr Pacific seaports to foreign seaports on the Pacific. It might be demanded that vessels built for this service should come up to a standard fixed by legislation in tonnage, speed and all other qualities, looking to the possibility of the Government requiring them at some time for war purposes; the right also of taking possession of them in such an emergency should be guarded. I offer these suggestions, believing them worthy of consideration, in all seriousness, affecting all sections and all interests alike. If anything better can be done to directtfhe country into a coarse of general prosperity, no one will be more ready than I to second the plan.

DISTRICT Of COLUMBIA. Forwarded herewith will be found the report of the Commissioners appointed under an act of Congress, approved June 20, 1874, to wind up the affairs of the District Government. It will be seen from the report that the total debt of the District of Columbia, less securities on hand and available, is; The bonded debt Issued prior to July 1,1874, $8,883,940.43: A«6 bonds, by act of Congress June 20, 1874, $2,088,168.73; certificates of the Board of Audit. $4,770,668.45; total, $15,742,667.61; less special improvement assessments chargeable to private property in excess of any demand against suen assessment, $1,614,054.37; less Chesapeake & Ohio Canal bonds, $75,000, and Washington 6 Alexandria Railroad bonds, $59,000; in the hands of the Comiqissioners of the Sinking Fund, $1,748,064-87; leaving the actual debt, less said assets. $13,994,613.24. In addition to this there are claims preferred against the Government qf the District amounting in the aggregate, reported by the Board of Audit, to $8,147,787.48, of which the greater part will probably be rejected. This sum can with no more propriety be inclnded in the debt of the District Government than can the thousands of claims against the General Government be included as a portion of the national debt; but the aggregate sum thus stated includes something more than the funded debt chargeable exclusively to the District of Columbia. The act of Congress of June 90, 1874, contemglates an apportionment between the United tates Government and the District of Columbia in respect to the payment of the principal and fnterest of the 8.65 bonds; therefore, in computing with precision the bonded debt of the District, the aggregate sums above stated, as respects the 3.65 bonds now issued, the outstanding Certificates of the Board of Audit, and the unadjusted claims pending before that Board, should be reduced to the extent of the amount to be apportioned to the United States Government in the manner indicated in the act of Congress of June 20, 1874. I especially invite your attention to the recommendation of the Commissioners of the Sinking Fond relative to the ambiguity of the act of June 20, 1874, the interest on the District bonds, and the consolidation of the indebtedness of the District.

I feel much indebted to the gentlemen who consented to leave their private iffairs and come from a distance to attend to the business of this District,' and for the able and satisfactory manner in which it has been conducted. lam sore their services will be equally appreciated by the entire country. It will be seen from the accompanying full report of the Board of Health that the sanitary condition of the District iB very satisfactory. In my opinion the District of Colombia should be regarded as the grounds of the National Capital, in which the entire people are interested. I do - not allnde to this to urge generous appropriations to the District, bnt to draw the attention of Congress, in framing a law for the government of the District, to the magnificent scale on which the city was planned by the founders of the Government; the manner in which, for ornamental purposes, the streets and avenues were laid out, ana what was the proportion of the property actually possessed by the General Government. I think tne proportipn of the expenses of the Government and improvements to be borne by the General Government and the cities of Washington and Georgetown and the conntry should be carefully and equitably defined. THE MISSISSIPPI RIVER. In accordance with Sec. 3of the act approved June 28,1874,1 appointed a board to make a survey of the month of the Mississippi River, with a view to determine the best method of obtaining and maintaining a depth of water sufficient for the purposes of commerce, etc., and, in accordance with an act entitled “An act to provide for the appointment of a Commission of Engineers to Investigate and report a plan for the excavation of the alluvial basin of the Mississippi River subject to inundation,” I appointed a Commission of Engineers. Neither board has yet completed its labors, When their reports are received they will be forwarded to Congress without delay/ (Signed) U. S. Ghant. Executive Mansion, Dec. 7,1874.