Jasper Weekly Courier, Volume 37, Number 14, Jasper, Dubois County, 14 December 1894 — Page 2

PRESIDENT'S MESSAGE Tho President Makos His Annual Oomnumicatlou to Congress. Cener-.il Hevlnw of Our Foreign and Domestic Itelatloii ami Iteouuia of Secretary Carllnle New Currency Scheme. President Cleveland's message to the second session of the Fifty-third eongrc.vs was .submitted to both houses. It Lj.as follows: TO THK CONGRESS or TUE UNITED STATES. The assemblage within the nation" legislative halls of those charged with the duty of making laws for the benefit of a generous and free people Impressively suggests the exacting obligation and Inexecrübte responsibility Involved In their task. At tho thrcshhold of such labor now tobe undertaken dv the congress of the United States and in the discharge of an executive duty enJoined by the constitution. I submit this communication, containing a brief statement of the condition of our national affairs and recommending such legislation as scents to mo necessary and expedient Foreltr Affairs. Tho history of our recent dealings with other nations anduiur peaceful relation with them at this time additionally demonstrate the advantage of consistently adhering to a Arm but just foreign policy, free from envious or ambitious national schemes and characterized by entire honesty and itnoerlty. PEACE AND ORDER IS DHA7.1L The termination of the civil war in Hrazll ha been fallowed by the general prevalence of LuS? otXrwoXxcnL ! tt'iZMZZX: of tbU government. our naval force In the harbor of Klo de Janeiro was strengthened Tals precaution. I am satisfied, tended to restrict the Issue to a simple trial of strength between tho Hrazlllungovernmont and the insurgents, and to avert complications which at times seemed imminent. 1

ltiiAZiL auu ocii TAHiyr. 3i isir, aiirnitiieii to sfrj.MK.i.'s.iv. ami us exAltbough the government of Urazil was duly t m-ndliures to f 2.W5.TÄS.S7. leaving a dcücit of anttttlod that the commercial arrangements ex- ! &UN..2io.&s. ltlng between the United Stete and that There was a decrease of ll5.0.ii,C7l ro In the country. tusKl on the th.rd sootion of the tarifT ordinary expenses of the government as contact of 1S90, was abrogated on August S. lsfi, by ! pa-ed with the eal year 1;S3. There was eol-

the taking eaect of the taric law in force, that government subseouentlv notified us 1 iof its intentlon to terminate Mich arrangement on the tlrst day of January. 1S5. in the ext reise of the . right resemsl iu the agreement between the i two countries. I invite aitestton to the corre- ' ppondenee between the secretary f state and the lirazllisn minister on this subject. , TUE NEW CHINESE TKEATV. ' On the Kth day of March last a new treaty with China, in further regulation of etnigra- ' Hon. was signed at Washington, and t.n August 13 it received the sanction of the senate. ( Ratification on tho part of China and formal 1 exchange are awaited to give effect to this mutually benencial convention. A URATirYINli IlECOG NITIONA gratifying recognition of the uniform Impartiality of this country towards all foreign states was manifested by the coincident re- i quest of the Chinese and Japanese governments that the agents of tho United States khould. within proper limits. aKord protection to the -subjects of the other during the susjienlou of diplomatic relations due to a state of war. Tills delieute office was accepted, and a misapprehension which gave rise to the belief that in affording this Kindly unotüci-i protection our agents wouM exercise tho same authority which the withdrawn agents of the belligerents had exercised was promptly corrected. THE CHINA-JAPAN WAR. Although the war between China and Japan endangers no pultcv of the United States it deserves our gravest consideration, by reason of its disturbance of our growing commercial Interests In the two countries and the Increased dangers which may result to our citizens domiciled or sojourning the interior of China. Acting under a stipulation In our treaty with Corea (the first concluded with a western power) I felt constrained at the beginning of the controversy to tender our good offices to induce an amiable arrangement of the Initial difficulty growing out of the Japanese demauds for administrative reforms in Corea. but the unhappy precipitation of actual hostili- 1 ties tieieateu tnts Kimny purpose. Deplorir.vr the destructive war between the two most powerful of the eastern nations and anxious that our commercial interests in those countries may Im? preserved and that the safety of our citizens there shall not bo jeopardized. I would not hesitate to heed any Intimation that our friendly aid for the honorable termination of hostilities would be acceptable to both belligerents COJJM ERCT.lt CUSn WITH GERMANY. Acting upon the reported discovery of Texas f V,i,.,;:. Yi ,:...! lever la cargoes man prohibition against import against importations of live stock and fresh meats from this country has beun revived. It is hoped that Germany will soon become convinced that the Inhibition is as needless as It Is harmful to mutual interests. The German government has protested against that provision of the customs turi.f act which imposc-s a discriminating duty of one-tenth of one cent a pound on sugars coming from countries paying an export duty thereon, claiming that the exaction of such duty is In coutraventlon of articles tlve and nine of the treaty of ls with Prussia. In the Interests of the commerce of loth countries and to avoid even the accusation of treaty violation. I recommend the repeal of so much of the statute as Imposes that duty, and I invite attention to the accompanying report of the secretary of täte containing a discussion of the questions raised by the Herman protests. THE REUSING SEA AGREEMENT. Karly in the present year an agreement was reached with Great Britain concerning Instructions to be given to tho naval commanders of the two governments In Behring tea and the contiguous North Pacitlc ocean for their guidance in the execution of the award of the l'arts tribunal of arbitration nnd the enforcement of the regulations therein prescribed for the protection of seal life In the waters mentioned. An understanding has also been reached for the payment by the United States of !irj(. in full satisfaction of all claims which may be made by (ireat lirltaln for damages growing out of the controversy as to fur liritlsh waters. tribunal and should nubjectcd tnorougn well as the facts wnicn they involve. I am convinced that a settlement upon the terms mentioned would be an equitable and advan tageous one. and I recommend that provision be made for the prompt payment of tbc stated sum. Thus fur only 1- ranee and I'ort.gal have h I unified their witlingness to adhere to the regulations establishes! under the award of the i'uris iriuunai 01 nriuimtinn. HAWAIIAN RECOGNITION Since commuicatlng the voluminous corresirmdencc In regard to Hawaii and the action taken bv the senate and house of representatives on certain questions submitted to the Judgment and wider discretion of congress tho organization of a government in place of the provincial arrangement which followed the j al,ii.ll(nti t1 Iii mtn hn. riwn ntinrtMHjul i vltu evidence 01 its enecuve operation- xnc recognition usual on such cases has been ac CS has been accorded the new government PROGRESSIVE JAPAN. Apart from the war In which tho Island empire Is engaged. Japan attracts Increased attention tn this country by her evident desire to cultivate more lllx-rul Intercourse with us. nnd to seek our kindly aid in furtherance of her laudable desire for complete autonomy tn her domestic affairs and full equality In the family of nations The Japanese emplro of today Is no longer the Japan of the rast, and our relations with this pro gressivM nation snouui not im less oroau anu lllHinil than thone with other power. THE HI.tr.nEI.OS IN IIIHNT. Prominent among the questions of the year was the liluefields incident la what Is known as the Mosquito Indian strip lmrlerlng on the Atlantic ocean and within the jurls.1; . t'on of Nicaragua Hy the treuty of lvi 1 km ween Great Hrltatn and Vtcaragua the former government expressly recognized the sovereighty of the latter over the strip and a limited form of self government was guaranteed to the Mosquito Indians to le exercised according to their customs for themselves nnd other dwellers within lt limits. The so-called native government, which grew to be largely made up of aliens. for many years disputed the sovereignty of Nicaragua over tho strip, and claimed the right to maintain therein a practically Independent municipal government. Karly In the lKist year Horts of Nicaragua to maintain sovcrelgntv over tho Mosquito territory led to crlous disturbances, culminating In the supprcssion of the native government and tho attempted substitution of an Impracticable com ptlu: administration, In which Nicaragua and alien rtiil'UiniV wcro to participate. Failure

vessels engaged In taking seals in those 1 "!" "! I'ver of the bullion or rheonlerVamouniSi to!lwWAMl

The award and findings of the l'arls 1 m ar kc 1 v ai unoi r .- w uuu 1.- "kv , -r-nt UTMt

to a great extent determined the facts ! yaluc,i,,u- " ,c2".n?"!J-a .lna-i,.,l,: 1 There were als,, issued durlnc the year tos-

OTinclli.es UPOn which thse claims irst ua 01 u.ivt.iw ?!yV "i 5:i".,5 tal nntrs nmonntln to Il-.fto5i6l.os: Iiarimr

be adjusted, und they have been n'0?'" "eAn

bv . both governments to a f S,JffiBrT-, FJZr?,?ZZ,Za I were added to those already established, mat;-

examination upon tne nrincinles as .1 .4 s.-.,..... ..... o...... . . , f 4ftL. h . Dtlr.llnn

far a I g her J time subverted Nicaragua rule rxtsrllng officers and restoring tho old organization. Tins. In turmgavc place to the existing local gov 1 ermnent established ami upheld by .Nicaragua. Tho Nicaraguas, authorities having given no-

wo followed bran insurrection, which

I canal company on grounds purely technical. 0f tno oorecs.s of iho federal courts and reand not embraced In tho contract, have receded moving lawless obstructions to tho porform- ! from that position, nco by tho government of It legitimate

the czah's heath. , Tho recent death of the czar of Kuststi. called forth the appropriate- expressions ot sorrow and sympathy on the part of our government i with his bereaved family ana me uussian peu pie; as a further demonstration 01 respect umi friendship our minister at St. Petersburg was directed to represent our government at the funeral ceremonies, , RUSSIA IN llEHf.INI. SKA. The sealing Interest of Kussla In Hehrlng sea are second only to our own. A modus vivendi has therefore been concluded with i tho imperial government restrictive of poaching on the Kusslan rockeries nud of sealing In waters which were not comprehended in the protected area defined In the l'arU award. THE KZETA CASE. The president briefly review the case of the Salvadorean refugees. Uen. Kreta nud com panion, with the action of this government la tho premises. SPANISH INJUSTICE. Attention Is called to the exorbitant and unjust penalties Inrllcted by the Spanish authorities In Cuba against American vessels and their cargoes on tho most trivial pretexts. The Mora indemnity has not yet been paid and there J seems to be no immediate prospect 01 collecting it. TCRKT AMD THE ARMENIANS. In my last annual message I adverted to the claim on the part of Turky of the right to expel as persons undesirable and dangerous Armenians naturalized in the United States and returning to Turkish Jurisdiction. Numerous questions in thK relation have arisen. While this government acquiesces In the asserted right of expuls.on it will not consent that Armenians may bo imprisoned or otherwise punished for no other reason than having ' acquire,!, without Imperial consent, American I . citizenship. Three of the assailants of Miss , Melton, an American teacher in Mosul, have 1 been convicted by the Ottoman courts, nnd I , ltat an apjwU against the acouittal oft" remaining, tlvo has been taken by tho Tu rklsh prosecuting officer. The Nutloii,! rinanres. THE TCAK S IXrOKE AND EX PE S D IT C It ES. The secretary of tho treasury reports that the receipts :! ine government from all sources of revonu:. during the fiscal year ending Juno lecieo irum customs ji.iij-w.o.-. anu jrom 111ternai revenue H.iu.-iv.tu. -ine naiunce 01 tho Income f ir the rear, amounting to ei3.sl5. 517.07, was derived from the sales of lands and other sources. CCSTOilS AND 1NTEHN.II. HEVENL'E. The value of our ur total dutiable imports of amounted to JJTS.lW.fr-S. being Jl40.w7.öi. less ! than during the preceding year, and the ira- 1 portntions free of duty amounted to$.TT? 7J5..W5. 1 being 74s.C7.s less than during the preceding year. The receipts from cu.tpms were .3 .5m,.4srt.it less, and from internal revenue 13.K1.-5XU-7 less than in Ii93. ine total lax COIieceo fnim distilled spirits was vViy.2S0.-J5; On manufactured tobacco gi l" sv-i.e.', and on fermented liquors f M.lM.TSS.Ol, THE YEAH'S EXPORTS. Our exports of merchandise, domestic and foreign, amounted during the year to f?v-.".llO.-572. being un increase over the preceding year oriii.jyiws. TUE MOVEMENT or GOLD AND SILVER. The total amount of gold exported during the fiscal year was 7l .w.t31 . as against Jios.ß-O.m during the tlscai year !ä3. The amount Imtwrted was J7.'.4W.1 19. as against J1.174..1-1 during the previous year. The imports of silver were $!3.2sj,5j2, and the exports were $30,431,SUGAR ROt'NTY PAID. The total bounty paid upon tho production of sugar in the United .--tates for the fiscal year was Jli.lio.siKS'.). itelng an Increase of 42,725.07S.01 over the payments made during the preceding year. The amount of bounty paid from July 1. 1-04. to August 2, 1?M. the time when further payments ceased by operation of law. was ... ls54. The total expenses Incurred In tho payment of the bounty upon sugar during the fiscal year was $130.140. so. AN ESTIMATED DEFICIT. It Is estimated that upon the basis of tho present revenue laws the receipts of the government during the current ncal year ending June ). 1W5. will be fl24.l57.74 41. and Its expenditures fll 1.457.71:. 14. resulting In a detlclt of i20.lM..). THE NATION'S STOCK Or MONEY. The llrst day of November, lstil, the total stock of money of all kinds In the country was tJ5.240.773.rM. as against 1.7501.31 .(v.) on the first day of November. MCt. and the money of all kinds in circulation, or not included In the treasury holdings, was H.72.0y3.l25. or 121.77 per capita upon an estimated population of 0J.H7 On. At the same date there was held In the treasury gold bullion amounting to ni.iö,iu...v ana stiver bullion which was purchased at a cost of l-' "J- - stxvr.n nrixioN. The purchase of silver bullion under the act of July H. 1 -JO. ceased on tho tlr.stdayof November. I 93. and up to that time there had been purchased during the fiscal year 11.717.-ö-.7i line ounces at a cost of K7I5.521.32. an average cost of 0.7313 per tine ounce. The total amount of silver purchased from the time that law took effect until tho repeal of Its purchasing ciauo on tnp uate last mentioned was lt"W,67l.2 SB line ounces, which cost fl&Ytai .05.2A.thf average prlco per tine ounce being fu.9241. COINAGE Or THE MONET METALS. The total amount of standard silver dollars coined at the mints of the United States since the passage of the act of February a. 187K. Is i 121 776.4')s.of which i3TJ.IC9.793 were coined under the provisions of that act. f. .53 1,143 under the provisions of the act of July II. IW, and fVOTs.472 under the act providing for the coinage of trade dollar bullion. The total colncgc of all metals at our mints during the last fiscal year consisted of 63,15.220 pieces valued at 10j.21f).730.0fl, of which there was tSfl.471.912.iV) in gold coined. J75S In standard silver dollars. fttKl.! 40.30 in .subsidiary stiver coin, and f7l6.9iy.2G in minor coin. PRODUCTION Or rilECIOUS METAIÄ. During the calendar year 1MI the production of precious metals in the United .states was estimated at 1.73. ,53 line ounce of gold of the commercial and colnago value of .ir,i:5. and NATIONAL HANKS. Fifty national banks were organized during the year ending October 31. IBM, with a capital of .i "sS.I.jO: nnd seventv-nlne. with a cunital 1 0f f 10.175. went Into voluntary liquidation. Twcntv-one banks, with a capital of f5.770.f 1 were placed in tno nanus 01 receivers, rne I total number of national banks In existence on i the 31st day of October last was 3.7M. lying ! forty lcslhan on the 31st day of October. 1-93. The capital stock paid In was $075.671 ,3,V. being JU.'37S.4Jl less than at the same time In tho I the previous year, and tho surplus and untilvtdcil profits, less the expenses and taxes paid. : amounted to J341.I2I.IH2.M. hlch was flG.U-..-7s0 less than on October 31 . lS3. The circulation was decreased JI..4I ,ni3. 1 he obligations of the banks to each other were In- ' rre un'"". u u iuuiuuu.h m-.! were iii.ft.v less mail av. mo onrc-siraumui; date in the previous year. Loans nnd discount were ilCI.20'5.'53 more than at tho some time the previous year and checks and other cash Items were ?;l.3U.la more. Tho total resources of the banks at the dato mentioned amounted to 3,173,SC,.0C5. as against 3.1l,553,et.M In IW3. The War Ieprtnint. STRENGTH OF THE ARMY. From the report of tho secretary of war It e 1 appears that the strength of tho army on Sep - 1 tember.T). lrtd. was 2 125 officers nnd iVTtö en - listed men. Alth. .gh this Is apparently 1 very Might tlerrease compared witn lue previous year, the a tual elfeet.ve force has been lncreafo : tlu- equivalent of nearly t .so 1 regiments, th ug.i the reorganization of tho ' system of rccrultm.? and the consequent re- 1 lease to reglrai :i'.: i 'uty or tho lor'- f..,ve of men hitherto serving at the recruiting ' nartments. tho nooituon or uiese tie partment. It is predicted. will furthermore effect an annual reduction approximating riVm) In the direct cxiwnditurcrf.beMdos promoling generally tho health, morals and dfsclpllao of the troops. 1110 exefuiion 01 mo poilev of concentrating tho army at Important centers of twpulatlon anil trantportation. foreshadow.' ed in the last annual report or the secretarv. has resulted in the abandonment of fif teen of the maller OHt. which was effected under a plun which assembles orgnnlzntlons of tho 1 same regiments hitherto widely separated. This renders our small forces more readily effective for any service which they may bo called upon , to perform, increases tne cxioat 01 tno tornlory under protection without diminishing the security heretofore nfforccd to any locality, tmprovos the discipline, training and esprit do

cr;s of tho army, orwaslngtheco - sicf I

beside considerably dsIts maintenance, ,, : KVICHUUNCV CAULS ON THU AHMT. It i hardly necessary to recall the JTart that In obedience to the command of tho constitution and tho law., ant! for the purpose of proioaiiiiv iVi.i nr.ni.Tiv nf ttnI'nltislsiatss.aldlmf functions, It lecumo necessary, m various localities during thciyear. to employ a conMiieratue portion 01 mo recuiur iroop-s. Tho duty whs discharged promptly, courage ously and with marked discretion by tho officers and men. and tho most gratltying proof was thus afforded that tho srmy deserves that complete commence in Its ertlct-nfun.tiiUi-iiiiiiiH u-iii-h th. emitit rv his at Improbaulc. TttK ÜATIÖN.U. OITAHD. The total enrollment of the tnllltla of the several Mate l 1I7.KO oftlcetr and enlisted men. an Increase of 5.313 over tae number reported at tho eloso of the previous year. The report of militia inspections by regular army officers how a marked !ucreae in Interest and eftlclonev among tho state organizations, and l tronclv reeomuieml a continuance 14 IUV J . Uil I4.lfc J 4' "- v. .... couragemer

i

all times manifested, me year ins oeen iron ; uau uiw-ji)". . 7 1 from disturbances by Indians, und the cnance . udoh the ships Tarls or NewnrUof the Interof further depreshtlons on their part aro con- ! national .Navigation Co , or any other ship or ktnntiv emwini? mur and more remote and our reserve navy. Ihe manufacture of .suns at

Lnt tvossiuie toinis im wiamauxu- '"v'" ',v., ; . . . ..- r mrtltary establishment. mc" of the best results

lary of our 1 A IltWOIMD'tUTlOS, In recognition of tho long and distinguished military services and faithful discharge of delicate nnd responsible clviPdutlos by MaJ.-lien John M. Schotleld. now the general commanding the armv. It Is suggested to congress that the temporary revival of the grade of lieutenant-general in his behalf would be a lust !.nd gracious act. and would permit bis retlremeat. now near at hand, with runk befitting his merits. Drpiirtniriit of .In Ml re. - ATTOItNKY.ii:NEn.!S HEPOItT. The report of the attorney-general notes the gratifying progtt-s made bv the supreme court lu overcoming the arrears of Its business and in rcacning a conuuion in wnicn it win ue ame to dispose of cases as they arie without any unreasonaoie ueiay. inis resuu is. 01 rourse. verv largely due to the successful w-orklug of tho plan Inaugurating circuit courts of appeals. In respect to thce tribunals the suggestion Is made. In ouartt-rs entitled to the highest consideratton. that an additional circuit judge for each circuit would creatly strengthen these courts and the confidence) reposed In their adjudications, nnd that Mich an addition would not create a greater foreo of judges than the Increasing business of sucheourt-s require, I commend the suggestion to the careful consideration of the congress. Other Important topics are adverted to. accompanied by recommendations, many of which have been treated at large in previous messages and nt this time, therefore, need only be named I refer to tho abolition of the fee srstetn aa measure of compensation 1 to federal omcers; ine enlargement 0 tnepow1 ers of United States commissioners at least In 1 the territories; the allowance of writs error in criminal cases on behalf of the Unites! States and the estnbl'shmeat of degrees in the crime of murder, united states prisons. Eight years a?o In my annual meagn I urceil upn lhe eangre as strongly as I could th ,lV,.A,nn n.i rÄnitnietion m um nrUnns ,u pnn?lnmint rr fnlli.il rrwnnrr. t . 1 ... T ... ....... .1 n , .. . r, ... n .4 n A similar recommendation has been made from tlms to time since, nnd a few years ago a law was passed providing for the selection of sites for three such Institution. Xo appropriation has. however. Iteen made to carry tho act into effect and the old and discreditable condition still etUts. Tim Iott Oilier Department. HKVCXCE ANP OtTLAT. The report of the postmaster-general presents a comprehensive statement of the operations of the post odco department for the last fiscal year. Tho recelots of the department during the year amounted to !75.oso,47y.0l and the expenditures to Ss-1.224 414.15. Tho transactions of the postal service Indicate with barometric certainty the fluciuat ions of the business of the country- Inasmuch, therefore, as business complications continued to exist throughout the last year to an unforeen extent it is not surprising that the deficiency of revenues to meet the expenditures of the post office department, which was estimated In advance at about Js.cCO.ooo. should be exceeded by nearly ll.?50.Wl The ascertained revenues of the last year, which were the basis of calculation for the current year, being less than estimated, the deficiency for the current year will be correspondingly greater, though the postmastergeneral states that the latest indications arc so favorable that he confidently predicts an Increase of at least 8 p.r cent In the revenues of the current year over those of tho last year. INCREASED EXPENIlITt'RES. The expenditures increase steadily and necessarily with the growth and ncedsof the country, so that that deficiency Is greater orless In any year depending upon the volume of receipts. The postmaster-general states that this deficiency Is unnecessary, and might be obviated at once If the law regulating rates upon mall matter of the second class was modified. The rate received for the transmission of this second-class matter Is one cent per pound, while the cost of such transmission to the government is eight times that amount. In tho general torras of the law this rate covers newspapers and periodicals. The extensions f the meaning of theo terms from time to time have admitted to the privileges intended for legitimate newspvpers and jerlodicaIs a surprising range of publications and created abuses the cost of which amount In the aggregate to the total tlotlclency of the post oHce department. DISTKIUtTTION Or THE MAIt-3. The total numbtrof post oftlcesln the United States on the 3Uth day or June. Uff, vrairo., an Increase of 1.403 over the Preceding year. Of these 3.42S were presidential, an Increase In that class of ftt over the preceding year Six hundred and ten cities nnd towns arc provided with free delivery. Ninety-three other cltlds and towns entitled to this service under tbc law have not been accorded It on account of Insufficient funds. Thf expense of free dollvery for the current rlsc?.l yea will be more man f u.suu.uuu. ana unacr exisiis icgi ation this item of expenditure Is subject to constant Increase. The estimated cost of rursd free delivery generally Is so very large that It ought not to be considered In the present condition of affairs. MONET OIlDEIl OmCES. During tho year 830 additional domestic money order offices wcro established. The total number of these offices at the close of the year was lal. There were lOM.Otl money orders Issued during the year. Wing un Increase ng a total of i.& such ofnecs in ore Jne 3i). lflM. The number of International money ordern Issued during the year was 017.S2?. a decrease In number of 13M.iTtj, and their value was f 13.75. 155.3I, a decrease In amount of !2.f43.3fi-5.43. The number of orders paid was ."Wl.lsOan lncreae over the prececdlngyear of rV2G3, and their value was 8rtl ,133.7s, nn Increase of JI.2s3.US.05. From the foregoing statements It ap.-ars that the total Issue of money orders and postal notes for the year amounted to I.23ä.l2a.35. HrEClAI DELIVERY. The number of letters and package mailed durlngthe year for sjwclal delivery was Kl.1M.&7U. The special delivery stamps ued upon these, letters and packages amounted to 1313.65. The messengers' fees paid for their delivery nmounted to iXlSXfJ.TD. leaving a balance In favor of the government of f-si2.ii7.30. THE POSTAL UNION. Tho report alo contains a valuable contribution to tho history of the universal jiostnl union, sn arrangement wnlch amounts practically to the establishment of one postal system for the entiro civilized world, -special attention Is directed to this subject at this tunc. In view of tho fact that the next congress of the union will meet In Washington !n 1W. and it Is hoped that t.lnely action will betaken In 1 tho dlroetlou of perfecting preparations for 1 that event. The Nnvy Department. PROt.lUsS IN CONSTRUCT!" N. Attention Is called to the roport of the secretary of the navy, which Hiow.s very gratify tug progress in tne ronstrxtton of snips for our l.rw ll'ivv. A.I th.- sessels now bin Itlirr. In ah sesseis now imuuing. t .:ding the three I 'MkmIo boats nuthtir!zii m 1 "k iraBs ss.uu i vuiiKrcss unu eiccpi tne ( ,.7 .ü . i""u-i ) completed during the coming fial vear. Tho estimates .for lhe IncVOjo of tho navy for thi t f vv - ., .i. is". uk wicj I Include practically the ; entire tun .necessary to i r"""1. . , ' V1 .V .LV" "lTi ni now 1 ." "...... ...... m u- snips Hro authorized tho appropriations for the naval service for the fiscal year ending Juno SW. IjU7. should fall below tho estimates for tho coming year by at least II2.1O0.0., A PLKA TOR MORE nATTLKSTl IPi The isecrcttry presents, with much earnestness, a plea for.lho authorization or three additional battkuhlps and ten or twelve torpedo boats. While the ui armored tessels heretofore authorized, lncludirt those now ncarlug

I il'O IhA tiMiOm Nif lifiOP Af Ui! " I 'I'll ft vl IMaa rf-tf

1 I

completloa. will constitute a nt which It I

h.iii.,v.l sufficient forordmarvcruKtnt pur pose In tlmo of istaee. we have now completes and 1h process of construction but four tlrstelast. battleship and but few torpedo tioats. If o are to hae a navy for warlike operation, offensive and defensivee certainly ought to Increase both ; the number of battleships anil torpedo boats. " 1 recommend that provision be made for th 1 construction of additional battle-ships andtor- ; jn-do boats. OHPNANl K AMI OiU?iAM K HATKIUAU The secretary recommends tho uiaHUfacturo nntonlvof a reserve hunnlv of ordnance ami ordnance material for shlpt of the navy, but also a supply lortno auxiliary neei. v.unsami their appurtenances mwu u oo pruviueu ktnt on hand lor both these purines, Wo isfactorlly. and none of our new ililps 111 be required to wall for their guns or ordnance equipment. AN 1MFCIITANT ORDER. An Important order has been issued by tho secretary of the navy co-ordinating the duties uf the several bureaus concerned in the construction of ships. This order. H Is believed, will secure to a greater extent than has hereto fore been iosslble tho harmonious action of ....... 1 t.iivA.... anil mane tno uuains more certain. ACTIVE WOKK roil THE NAVY. During tho past fiscal year there has been an uuusualand pressing demand lu many quarters of tho world for the presence of vessels toguard American Interests In January hist, during the llrnzlllan Insurrection, a largo fleet was concentrated In tho harbor of Kio tie Janeiro. The vigorous action of Itear-Admlral Ilenhaui tn protecting tho iersoiial and commercial rights of our citizens during the disturbed conditions afforded results which will. It Is believed, have a far-renclilng and wholesome Influence whenever In like circumstances It may become necessary for our naval commanders to Interfere on behalf of our peoplo in foreign parts. The war now in progress between China and Japan has rendered It necessary or expedient to dispatch otght vessels to those waters. THE COAST sunvr.T. Iloth the secretary of the navy nnd tho .secretary of tho treasury recommend tho transfer of the work of tho coast survey proper to the navy department. I heartily concur in this recommendation. Excluding Alaska and a very Miiall area besides, all the work of mapping and charting our coasts has been completed. The hydrographic work which must be done over and over again, by reason of the shifting and varying depths or water, consequent upon the notion of streams and tides, has heretofore been done under the direction of mval officers iu subordination to the superintendent of the coast survoy. There seems to bo no good reason why tho navy should not have entire charge berfcaf tcr of such work. PERSONNEL AND PHOMATIONS. I feel it my Imperative duty to call attention to the recommendation of tho secretary m regird to tho personnel of the line of tho navy. The stagnation of promotion in this the vital branch of the service is so great i to seriously impair its efficiency. I consider It of the utmost Importance thnt the younv ami middleaged officers hnuld before tho eve of ntlrement be permitted to reach a grade entitling them 10 active and important duty. The Interior Department. HECOM M E.VDATIONS COMMENDED, The report of tho secretary of the interior exhibits tho situation of the numerous and interesting branches of the public service connected with his department. 1 commend this report and the valuable recommendations of the secretary to the careful attention of the congress. Tho public land disposed of during the vear nmounted to 10.40!5,l(X).77 acres. Including 5s.br0.Ojof Indian lands. THE PCliUC DOMAIN. It Is estimated that tho public domain still remaining amounts to a little more than C'X.luo.oou acres, excluding, however, about 34.Utt.CWt) acres In Alaska, as well as military reservations and railroad and other selections of land yet unadjudlcatod. HECEIPTS AND PATENTS. The total cash recelnts from sale of lands amounted to tl,674,2s3.7ii. Including 91,91.03 recelvtd for Indian lands. Thirty-live thou sand patents were Issued for agricul tural lands and 3,100 patents were issued to Indians on allotments of thoir holding in severalty, the land so allotted being unalienable by tho Indian allottees for a period of thirty-live years after luteal Thre were certified ana patented on account of railroad and wagon road grants during the vear bojvs. Id acres of laud ana at tne close of the year 2a.tX).ojO acres were embraced la the list of selections mado by railroad and wagon road companies and awaited settlement. The selections of swamp lands and that taüen Us Indemnity therefore since the passage of the act providing for the samo In I? 13 amount tu nearly or quite tOSw.Ow acres, of which JSAs).wj nave been patenteu 10 suites. INDIAN ALLOTMENT Tüöuzh tne condition of tne Indians snows a steady and healthy progress, their situation is not satisfactory at all points, some of them to whom allotments of land have, been made are found tobe unable or disinclined to follow ag ricultural pursuits or tootnerwise beneficially manage their land, This Is especially trueof the Chcyenncs and Arapahoe, who. as it appears bv renorts of their aent. have In manv In stances never been located upon their allotments, and In some cases do not e en know where their allotments are. Their condition has deteriorated. It is evldentthat the evil coniequenceaof Illadvised allotment are intenstticit in cases where the fali.o step can not be retraced on ac count of the purchase by the government of reservation lauds remaining alter nllotmont are mado. and the disposition of such remain leg lands to settlers or purchasers from the government. I am convinced that the proper solution of the Indian problem nnd the success of every step tauen in that direction depends, to a very largo extent, upon the intelligence and honesty of the reservation agents, and the Interest they have in tneir work. ARJIY OrriCEIlS AS INDIAN AGENTS, Tho Indications are that the detail of army officers as Indian agents will result In Improved management on the reservations when ever allotments are maue. ana any Indian on the reservation has previously settled unon lot and cultivated It. or shown a disposition to improve 11 in any way.sucn iotsnouiu certainly oe aiiotca to mm. ana inis snoum ue mule rlalnlr obligatory by statute. In the light of experience, und considering the uncertainty of th Indian situation and Its exigencies In he future, I am not only disposed to be very cau tious In making allotments, but I Incline to agree with the secretary of the Interior in the opinion that when allotments are mr.de the balance of reservation Jnnd remaining after allotment, instead of being bought by the gov ernment from tho Indians, and opened for settlement with such scandals ami unfair prac tice as seem unavoitiaoie, snoum remain lor a time, at least, ns common land, or besoldbv the government on behalf of the Indians In un orderly way anu at iixcd prices to be deter mined by its location and desirability, and that the proceeds, less expenses, should be held In trust for the benefit of tho Indian proprietors. INDIAN SCHOOLS. The Intelligent Indian school Tianagcment of the past year has been followed by gratifying results. KCorls have been made to advance the work tn a sound and practical manner. Five Institutes of Indian teacher have been held during the year, and haie proved very ncncnciai. THE PENSION HOLL At the close of the last tlscai year, on the 30th day of June, IMM. there wcro P0D..MI no: sons on our pension rolls. Itelng a net Increase of 3.53J over the numlier reported at tho end of the previous year. These pensioners may be clas.siUcd as follows- soldiers and sailors. survivors of all wars, TW., widows and rein lives of deceased soldiers, tM.VlttJ, army nurses In the war of tho rebellion. -11 4. Of these pensioners 35.0:O are surviving soldiers of Indian and other war prior to tho late civil war and the widows or relatives of such so d ers. Tho remainder numbering i37..VB ar receiving pensions on account of tno waroi tne rebellion and of thcsrf4'WU are on tho rolls under tho authority of the act of June '57. ISW. sometimes called tho icreaiient pension law. 'i re total amount expended for pensions during the year was IKf.WM 4fil.it. leaving an unexpened bal ance from tliesumnpproprlittcdoff 5-5.wl5.3, Tho sum necessary tomt pension expendi tures for the .vrar ending Jur.o.). ifw. Is estimated at ?IW.0iJ,0H The commissioner of pensions is of tho opinion that the year l& being tho thirtieth after the ctosc of tho war of tie rebellion, , ..,,T..t fi.ii4t4ltni tn sjfw. Viiimnt. ., ttiilt ..1 see the uignusi iiniuor tno pension roll, arm that after Unit year it must begin to decline. DECREASE IN CLAIMS IT-NDINO, Tho claims pendln In tho bureau hvo decreased more than PoOOO during the year. A large proportion of the m .üims tiled are for Increase ol pension now on tho rolls. Tho number of c- s Issued was SO513. The names drop, m tho rolls for all causes during the ya numbered 37.W1. Among our pensioners are nine widows and throe tlauhters of soldiers of thr revolution and forty five survivors of the war of HI2. pkn.sion ritAPbs ExrosK!?. The barefaced and oitenslvo pension frauds exposed under tho direction of tho courageous and generous veteran loldler uow rt tho head

the Washington navy yum is proceeding at-

of thu bureau leave no room for tm claim that no purgation of our jMMislon roll was Heedes!, or that continued vigilance aud prompt action are not necessary to tho sumo oud. Department of Agrlculttire. A IIKV1EW OV ITS OPKHATIOMB. The secretary of agriculture In his report reviews tho operations of his dopattment for the hut fiscal year, und makes rccomnieiidatlons for the further extension of Us usefulness. Ho reports a saving ti expenditure during tho year f iWW.ooO. which Is covered back Into tho treasury This sum is 23 s;r cent of the entire appropriation, A special study has been made of tho demand for American farm prod

ucts In ull forelitu markets, especially tl real liritain, WHAT WE HUNT TO KNOLAND, Thsit country received from thel'tllted States during the nine months ending September 30. Al..Kn.V10 11 vo beef cattle valued uikü.ww.wu as ngalust ,6il cattle valued at lö.CH.tt during tue same period for lt?li During tho llrst six months of lsil the United Kingdom took also II2.oaJU.0UJ pounds of dressed beef from 1110 United Staies.valued at nearly iu,ux),u. Tho report shows that during tha nine months Immediately preceding .September 30, IM I. tho unitoti states exiwrtcd to ureal nriiaiu -.- 0;t5.OUO pounds of pork: of apples l.iW.tM) bushels, valued at f5,rOJ.uw. anil 01 horses i.Sll. at an nvoragu value of IIIW per head, There was a falling off In American wheat exports of 13.W0.0otl bushels, and the -.ecrotary Is Inclined to bellevo that wheat nay not. in mo future, uetno siapio uxport cereal product of our country, but that i'orii will continue to advance in inmortunce as an exiHirt on account of the new uses to which It 1 constantly being appropriated. The exiwrts of agricultural products from tho United .States for the Usual vear ending Juno u, IblM, amounted to u.-S.itSl.tKW, beir-x 75.2S per cent, of American oxiwrts of every description, and tue L uited ivimiiiom 01 ureni omnia 100 more than M per cent, of all farm products Unding foreign markets. THE WEATHER HCTEAlJ. Tho amount appropriated for the weather bureau was fl'.M.lw, Of that sum ilMtiO. or 1 1 per cent., has been suved. and is returned to the treasury. As Illustrating tho usefulness of this servU-t. It may bo here stated that tho warnings, which were very generally given. 01 two tropical storms occurring In September and CXtuber of tho present year resulted in detaining sufely in port r.3o vessels valued at .SW.. laden with cargoes of probably Mill greater valuo. What is much more Important and gratifying, many human lives on tueso snips were uio undoubtedly savea. lllltKAf 01' ANIMAL INDUSTRY. The appropriation to the bureau of animal Industry was M.OOi) and tho expenditures fori tne year oniy iiv.isv.vi. inus leaving uncxpeued i:wi.57O.70. The inspection of beet nnimal.s forexoort and Inter st.nc trade has been continued, and 12.91 l.ocva head were Inspected during the year, at a cost of m cents per neati against i cents for 1S33, The amount of pork microscopically examined was .so.-i.ii.vj pounds sgalnst C0.iJ77.410 pounds In the pre ceding year. Thecost of this Inspection has been utmintsncu from 64 cents per ncau 111 1!3 to fi'i cents in Is'-M. TUo secretary or agriculture rccommcnus that the law providing for tho microscopical Inspection or export and interstate meat be so atneudedas to .. impel owners of the meat lnpecteJ to pay tho cost of such Inspection, and lean attention 10 me arguments prrsemeu 111 his report In support of this recomr.ictidatlon. The live beef cattle exported nnd tagged durmr the vear numbered w.ft;v. this linn mercasc of 03.533 head over the previous year. SA.VtTAKY INSPECTION or CATTLE. The sanitary Inspection of cattle shipped to Kuroie has cost au average of 10V cents for each aulmal. and the cost of inspecting southern cattle aud the disinfection of cars and stock yards averages 2.7 cents pcrnnliaal. The f-cietitiilc Inquiries of the bureau of animal Industry have progressed steadily during tue vear. Mucn tuDoru.iii anu mauem nave been furnished to state authorities for ui-e In tho agricultural colleges and experiment stations for tho treatment of tubereulouls and glanders. HlOAllSCUOUS DISTIIIHUTIO?! OF DEI'AHTMKNT REPORTS. The recommendation contained In the report of the secretary' for 1W3, that the vicious aystern of promiscuous rree aistrmuuon or its uepartmental documents be abandoned. Is again urgexl. These publications may well be furnished without cost to public libraries, educational Institutions and the officers and libraries of states and of the federnl government, but from all Individuals applying for them a price covering tho coit of tho document askad for should be required. Thus the publication and documents would bo secured by those who really deslro them for proper purposes, OIUTCTTOUS DISTHIULTION Or SEE DR. The secretary also again recommends that the gratuitous distribution of seeds coase. and that no money be appropriated for that purpose, except to experimental stations. He reltc ales the reasons given in his report for ly3 discontinuing this unjustltlablo gratuity, and I fully concur In tho conclusions which ho has reached. THE CIVIL SEHVIfE COMMISSION. Xurncrous dititlanal oaicjs nnd places have lately been brought within clvll-.scrvlco rules and regulations, and some others will probably soon be Included. The report of tho commis sioners will be submitted to congress, and I In;lte careful attention to the recommendations It contain. A NATIONAL HOARD OK HEALTH. I earnestly recommend the Inauguration of n national iioarti 01 neaun or similar national in strutnentallty. believing tho same to bo a needed precaution against contagious diseases and In the Interest of the safety and health of our people. THE STRIKE COMMISSION. Hy virtue of a statuto of the United Stntcs passed In lbs8. 1 apjolnted In July lust Hon. John D. Kernan.of the state of Ness- York, and Hon. Nicholas K. Worthlngton, of the state of Illinois, to form wlih Hon. Carroll U. Wright, commissioner of labor, who was designated by said statute, a commission for the purpose of muklng careful Inquiry Into tho causes of the controversies between certain railroads and their employes, which had resulted In an extensive and destructive strike, accompanied by much violence and dangerous disturbance, with considerable Ios of life and great destruction of property. Tho report of the commissioners has been submitted to me. and will be transmitted to the congress with the evidence taken upon their Investigation. Their work has been well done, and their .standing and Intelligence give assurance that tho report and suggestion they make are worthy of careful consldei -ion, The TarifT Act. The tarifT act passed at th last session of the congress needs important amendments If It Is to be executed effectively and with certainty. In addition to such necessary amendments as will not change rates of duty, I urn still very decidedly in favor of putting coal nnd Iron upon the free list So far as the sugar schedule Is concerned. I would be glad, under existing aggravations, to seo every particle of differential duly In favor of rcllned sugar stricken out of our tarlü law. If. with ill the favor now accorded the sugar retlning Interest In our tariff laws It still languishes to the exlent of closed rellnerle and thousands of discharged workmen, It would seem to present a hopeless case for reasonable legislative, aid. A Suggestion Reiterated. Whatever else is done or omitted. I earnestly repeat here tho recommendation I havo made In another ortIon of this communication that the additional duty of one-t uith of 3 cent per jiouad laid upon sugar imported from countries paying a bounty on Its export, bo abrogated. It stemH to mo that excocdlugly Important considerations point to tho propriety of this amendment. With tho advent of a new tariff policy not only coutnmnlatcd to relieve the consumers of our land in thu cost of their dally life, but to Invite a better development of American thrift and create for us closer and more profitable commercial relations with the rest of the world, it follow- as n logical und Imperative necessity that we shottltl ut once remove thochlcf If not tho only obstacle which ha so long prevented our participation In THE FOREir;." CARRYINH TRADE, of the si a. A tariff built upon tho theory thnt it Is stell to check Imports, and thnt a home market show Id bound tho Industry and effort of American producers, was Utly supplemented by a refusal to allow Amuricntt registry to vessels built aiironu, tnougn owneti anil navigated by our people, thus exhibiting a willingness to abandon nit contest for the advantages of American trans-occanlo carrlugo. Our now tariff policy built upon the theory that It Is well to encourage such Irnisirtatlons tu our people need, ami that our products and Kitinufacturu should Hud mrtrK'ts In every art of the habltablo globe, Is cousistcntly supplemented by the greatest possible liberty to our cltlieiiH In the ownership and navigation of ships In which our products and manufactures may bo transported. The millions now paid to foreigners for carrying American passengers and products ncross the sea should bo turned Into Amrrlcnn hands j ship-butldlng. which has been protected to strangulation, should bt revived by tho prospects of prolltablo employment for ships when built, and THE AM I'.lttOAN SAILOR hould bo resurrected and again take his place, n sturdy and industrious citizen In tlmo of pence and a patriotic and safe defender of American 1 11 ten. Is In the day of conflict. The ancient provision of our taw denying American registry to ships built abroad aud owned toy

Americans uppenm In tho light of prtetit eoa. dltious not only tn be a failure., for vocxl m every isilnl, but tobe ntsirer a rcllu of burtvism thuii auyilutig that ixlsts under thu p?r mlsslou of u htatule of tho United Slate. I arucMly reeomuieml Its prompt repeal. An Kxigetiry. THE HECENT HALE U HON US. During the Inst mouth tho gold reserved In tho treasury for tho purposo of redeeming thn notes of the government circulating as money tn tho hand. of the people became so reduced und its further depletion in the near future seemed so curtain, that in tho exercise of proper care for the public welfare it becninu necessary to replenish this rosorvo nnd thu maintain popular faith tu thu ability und determination of the government to meet, as agreed, its pecuniary obligations. It Mould have been well If In this emergency authority had oxlsted to Issue tho bond of the government, bearing a biw ruto of Interest and maturing wltliln u siieelul period. Hut thu congress having failed to confer such uuthorlty, resort wus necessarily had to the resumption act of 1M75, and pursuant to Its provisions, bonds wero Issued drawing Interest at tho rate of 5 tier cent, per uunum and maturing ten years niter their Issuing, that being tho shortest tlmo authorized by tho act, I am glad to say. however, that on tho isulo of the,u bonds tho premium received operated to reduce the r.ito tif Interest to Ik) tsild by tho government to less than 3 er cent, NUTHINIi COULD UE WORSE, or further removed from sensible finance than tho relations existing between the currency tho government has lstued, tho gold held lor Its redemption, uml thu moans wluu must bo resorted to for the purpose of repienIshlng such redemption fund whtm Impaired. Kven If the claims upon this fund wort eonlined to tho obligations orlglnully luteiidel, and If the redemption of those obligation meant their cancellation, tho fund would ii very small. Hut these obligations when received nnd redeemed In gold aro not canceled, but ore reissued and may do duty many nine. by wuv of drawing gold from tho treasury. Thus we havo an endless chain In oisjratioa constantly DEPLETING THE TREASURY'S 0OI.H and never ucar a llnal rest. As if this vus not bad enough, wo have by a statutory declaration that it Is tho policy of the government to maintain the parity between gold und silier aided the foreo and momentum of this exhausting process, and added largely tn the currency obligations claiming this peculiar gold redemption. Our small gold reserve Is thus subject to drain from every sldo. The demands that Increase our danger also Increase the necessity of protecting this reserve against drnlrtion. and it is most unsatisfactory to km-w

that the protcetlouafforded Is only a temporary pollution. It Is perfectly and palpably plain tnai THE ONLY WAY U.NDKK PRESENT CONDITIONS bv which this reserve, when dangerously de pleted, can be replenished Is through tho issue and sale of the bonds of this government for gold, and yet congress has not only thus far declined to authorize tho Issue of bonds DOfisuiieit to such a purpose, uut mere seems a disposition In some -vtarters to deny both the necessity and power for tho issue nf bonds at all. I cannot for a moment bellevo that any of our citizens nredcllbcrntely willing that their government snouui atpiauu in Its pecuniary obligations, or thnt Its financial oix-ratlons should be reduced 0 a silver basis. At any rate, X'ahouUl not feel thnt my duty was dono If I omitted any effort I could make TO AVERT SUCH A CALAMITY. As long therefore, as no provision I made for the final redemption or the putting aaldo of the currency obligation now used to repeatedly and constantly draw from the government itf gold, and as 1 ong as no better iiuthorjly fof Iwnd Issues Is allowed than at present exists, such authority will be utilized whenever and us often as It becomes necessary to maintain a sufficient gold resiirvc, and in ubundnnt tlmo to save tho credit of our country aud tuako good tho tlnanclal declarations of our government. HANKS AND CURRENCY. Questions relating to our banks and currency are closely connected with the subject Just referred to and they also present somo unsatisfactory features. Prominent among them aro tho lack of elasticity In our currency circulation and Its frequent concentration in financial centers when It Is most needed in other part of tho country. Tho absolute divorcement of tho government from the business of banking la the ideal relationship of the government to tho circulation of tho currency of tho country. This condttlon can not be immediately reached; but as a step In that direction, and as a mnant of securing a more elastic currency and obvlatlnr other objections to the present nrrsgemont of bank circulation, tho secretary of tho treasury presents In his report a schema MODIFYING rilESKNT HANKING LAWS, and providing for the Issue of circulating notes by state banks free from taxation, under certain limitations. The secretary explains his plans so plainly, nnd Its advantages are developed by him with such remarkable clearness, that any effort on my part to present argument In its support would be Superfluous. I shall therefore content myself wish an unqualified Indorsement of tho secretary's projwsed changes In tho law, nn 1 a brief and Imperfect statement of their prominent features. It Is proposed to repeal nil law providlnu for the deposit of United State bond" as security for circulation, to permit national banka to Issue circulating notes not exceeding in amount 75 per cent, of their paid-up and unimpaired capital, provided thy tie posit with tho government as a euiirnnteo fund in United States legal tender notes. Including treasury notes of lft?4, a sum equal In umnunt to 30 per cent, of tjiu notes thoy desire to issue, this doposlt to he maintained utall times, butwncnevcT any bank retires an part of Its circulation a proportlonnl part of (is guarantee fund shall be returned to It to permit tho secretary of the treasury to prepare uml keep on hand ready for issue tn case an Increase In circulation Is desired blank nntlonal bank notes for each bank having circulation, and to rccal the provisions of tho preoent law Imposing limitations or restrictions upon banks desiring to reduce or Increnscjtliclr circulation, thus permitting such Increase or reduction within the limit of "5 mr rent, of capital to b quickly mado us emergencies arlso. IN AUDITION TO THE flUAMANTEE required. It Is proposed toprovldo a safety fund for the Immediate redemption of the circulating notes of fulled banks by lmpostmt a small annual tax, say one half of 1 percent, uion tho average circulation of each bank until the fund amounts to5 percent, of the total circulation outstanding. When a bank falls Its guarantee fund Is to be paid into this safety fund and Its notes nro to bo redeemed In tho tlrst lnstanco from such safety fund thus augmented, any Impairment of such fund .caused thereby to bo made good from the Immcdintely-availa-blo cash assets of said bank, and If theso should bo Insufficient such Impairment to bo made good by pro rata nsscssmeiit among tho other banks, their contributions constituting, a llrst Hen upon the assets of tho failed bank la favor of tho contributing banks. ASA rtlRTIIER SECURITY It Is contemplated that the existing provision llxlng tho Individual liabilities of stockholders Is to bo retained and the bank's Indebtedness on uccount of Its circulating notes is to bo mado a first lieu on all Its nssots. For thu purpose of meeting the expenses of printing notes, ofllclalsupervlsl on.cancellatlon nnd other like charges, there shall bo imposed a tax of say one-half of 1 per cent. ier annum upon tho average amount of notes In circulation. It Is further provided that then shall bo no national bank note Issued of a less denomination than I0. That each national bank, except In case of a failed bank, shall redeem or retire Its notes In the tlrst Instance at Its own oflleo or nt agencies, to bo designated by It; that no ll xed reservo need be maintained on a count of deposits. Another very important feature of thu plan is tho exemption of state banka from TAXATION Iir TTIE UNITED STATES in cases where It I shown to the satisfaction of tho secretary of tho treasury nnd comptroller of tho currency by banks claiming such exemption that they have not had outstanding their circulating notes exceeding 7ft percent, of their paid up and un.mpalred capital; that their stockholders aro lnuivitiuauv nable for tho redemption of their circulating nob's to tho full extent of their ownership of stock: that the liability of said banks upon their circulating note constitutes, under their state law. a llrst Hen Upon their assets; that such banks have kept nnd maintained a guarantee, fund In United States legal hinder notes, Including treasury notes of IHuo. equal to 30 per cent, of their outstanding circulating notes, nnd Such banks havo promptly redeemed their circulating notes when present.. I u their prlnclp.il or branch offices. IN CONCLUSION. It Is quite likely that this scheme may bo usefully amended In some of Its details, but I am satlsilcd It furnishes a basis for a very great Improvement In our present banking ana currency system. 1 concltido this communication fully appreciating Hint tho responsibility for nil legislation affecting the people of tho United .States rests ujion their representative In thu congres. ana assuring them that whether In aecornac with recommendations I havo made or not. I shall bn glad to ro-npernto In perfecting anv legislation that lends to tho prosperity and welfare of our country. iSlgEed) tiRO'KR CLEVELAND, Executive lajiU?, DeaMr 1