The National Banner, Volume 8, Number 32, Ligonier, Noble County, 4 December 1873 — Page 6

- SUPPLEMENT. PRESIDENT'S MESSAGE. “To the Senate aud House of Representatives: The year that has passed since the submission of my last message to Congress, has, especially the latter part of it, been an eventful ope to the country. In the midst OF great national prosperity, a financial "crieis has occurred, ‘that has brought {low the fortunes of a great portion of our citizens. Political partizanship has almost ceased to exist, especially in|the agricultural regions; and finally, the capture upon the high seas of a yessel bearing our flag, has for a time threatened the most seriouB consequences, and has agitated the public mind from one end of the country to the other, But this, happily, now is in the course of satisfactory adjustment honorable| to both:- nations concerned. |

§ FOREIGN m-:lvt..\noss'.‘ The relations of the United States, however, with most'of the other natl'ggs,_continues to be friendly and cordial, © With the goverpments of France, Germany, Austria, Jtaly and the minor powers of | Europe; with Brazil and . .most |of the South American Republics| and with Japan, nothing has occurred during the year to demand svecial notice. The correspondence between the Department of State and various diplomatic representatives in or from those countries is transmitted herewith. ! | . =

In executing the will of Congress, as expressed in its jointl resolution of the 14th- of Februar lagt, and ih accordance with the provisions* of the resolution, a: mumber of practical artizans am}J geientifio men avd of honorary tgmnissioners were authorized to attend| the exposition ‘at Vienna, as ('ognmissi;aners on the part of the United Statgs. It is believed that we nave obtaingd the object which ®ongress had in vidw . when it passed the joint resolution in order to enable .the people of the United' States to participate in the advantages of the International Exhibitionsof the Xrgiuct of agriculture, manufactures and the fine afts to be lxel3 at Vienng. I take ' pleasure in |adding that the American exhibitors haye received a gratifying number;o[ diplomas and of medals. During{ the Exposition a conference was held at Vieana for the purpose of consultujli]on on the systems provailing in different_ceuntries for the perfection of inventions. I authorized a representative frofn the Patent Office to be present at \ienna at the time when the conferende was to take place, in order to aid, as ll‘e might, in securing aay possible additional protection - to American inventors in kuarope. The report of this agent| will be laid before Congress. -

Lt iB' my pleasant duty to announce to Congress that the. Kmperor of China, on attaining his mdjority; received the diplomatic represeritatives of the Western powers in per:Tm. .An ac@®unt ot the ceremonies and| of the . interesting digeussions which ;;h-eced»di,them, will be found in the deduments transmitted herawith, = ; The accompanpving papers show that some advance, though slight, has been made during the past year, toward the suppression of the¢ infamous Chinese Cgplie trade. [re¢ommend Congress to irgxire whether ddditional legislation be not needed on this subject.

: 1}!::«.5:\115\,\ AWARD, . The money awarded to the United States by the Tribjunalof Arbitration at eneva was paid by Iler Majesty’s - yovernment a few days in advance of time when it would have become payable according fo the terms of the sreaty. In' compliance with the provigions of the act of March 3, 1R73; it was:at onoe paid jntodhe Treasury and used toredeem, 8o far as ‘it might, the public debt of thie United States, and the amount so redeemed was invested ina five per ceht. registered bond -of . the United Stdtds for $15)500,000, which is now held by fthe Secretary of State subject to futuye disposition by Congress. ] i I renew my regommendation made at the assembling jof the last session’ ot « Congress, that a/Commission be created for the purpose of auditing and 'deter- , mining the amofints of .the several direct losges growing out of the destruc - tion of vessels and their cargoes by the Alabama and the Shenandoah, after leaving Melbourne, for which the sufferers have recdived no equivalent or compensation, and of ascertaining the names of the persons entitled to receive compensation fdr the same, making the computations upon the basis indicated by the tribunal of arbitration at Ge- - neva, and that payment of such losses be aqtflorized- such an extent not to /(ag;ceed-the' avards of the Ki_‘hunal at

reneva e Jz / = _IHE Nom‘n}wns‘ruu\' BYUNDARY, By an act aptrovod on the 14th ddy. of February lagt, Congress. made provision for completing jointly with an officer or compiissioner to be named by Her Brittanic Majosty the determination of so much ot the boundary line between the térritory of Great Britain .ahd the !Tuitw; States jas was left uncompleted by| the Commissioders appointed underithe act of Congress of August 11, I\"‘l‘ Under the provision of this act, thd rorthwest water-boun-dary of the Uiited States has been de- ~ termined, and marked /in - accordance with the awarjl of the Emperor of (iermany. A . prdtocol and a copy of the map upon wJ'nich the ‘line was thus marked, are dontained in the paperg submitted ]\()j};\\'ith..‘ CE BRITISH AND AMHRICAN CLATMS I also transsit 4 copy of the report of “ he Cmnmiaéslfoner for marking the bgnudary .between the United States afil the Britigh possessions west of the Lake of the Woods, of the operations of the Commissioners during the past ‘"season. Suryeys have béeen made to a point 407 mi!(t:; weat of the Lake of the Woods, "leaving about 350 miles to be surveyed, the fieid-work of which can be completed |during the next season. . . The 'Commission organized under the provisions of the Treaty of Washington for Bet%ement and determining the claims of|citizens of either Power against the dther arising out of acts - committed against their persons or property during the period of Agril 13, 1861, ard April 9, 1865, made its final award on the 25th day of September last. It | was awarded that t}{e Government= of the United States should pay to the Government pf Her Brittanic Majesty, within 12 mogt;bs from the date of the award, the [sum of $1,929,816 in gold. The Uommission disallowed or diemiss«#d all other claims of British subjects against the United States. The Amount of the claims presented by the British (zovernment, but disallowed 'or| dismissed, is understood to be about $/)3,000,000, It also disallows all the claims of the United States against Great; Britatn, which were refarred to it. I recommend the early pagsing of ap act appropriating the amotint necepsary to pay this ‘award against the |[United States. * I have ‘cdused to be communicated to the ‘Government sof the King of Italy the thanks of thig Goyernment for the eminent services rendered this GGovernment bv the Count| Conti, »8 the third Commiasioner on this Commidsion. With dignity, learming and .ir'npartialit?' he discharged duties requiring greit labor and constant patience to the satistaction, I believe, of both Governments. : COURT OF ALIEN CLAIMS. - 1 recommend legislation to create a spacial court to consist of three judges, who shall be empowered to hear and determine all|claimis of aliens upon the United Stated, arising out of achks com‘mitted agai their persons or property during the insurrection. The reQ‘e’nt conference under the Treaty of ‘Washingtoa was confined to claims of . British subjects arising during the . poriod named in the treaty; but it is understood theére are other British claims of similar nature arising after . the 9th of April, 1865, and it is known ' that other claims of a like nature are advanced by ¢itizens or subjects of other powers. It is desirable to have these ‘claims algo examined and disposed of. ~ Official information being. received from the Da h{overnment of a state of war between the King of the Netharlan i and the Sultan of Asheen, the

officers of ‘the 'United States, who were near the seat of the war were .instructed to observe anim;l)]artial neutraiity. 1t is believed that they have done

The Joint: Commission under the convention with Mexico of 1868, having been legally prolonged, has resumed its business, which it is hoped may be brought to an early conclusion. > -~ The distin%ilished re{)r_esehtative of Her Britanic Majesty at Washington has kindly consented, with the approval of Her Government, to assume the arduous and responsible duties of umpire in this commission, and to lend the weight of his character and name to such decision as may not reckive the acquiescence of both the arbitrators ap- ‘ nointed by the respective Governments. The Commissioners appointed pursuant to the authority of Congress to examiEe into the nature and extent ot of the foras by trespasses from that ‘country upon the herds of Texas, have made a report which will be submitted for vour consideration. ; The Venezuelan Government has been apprised of the sense of Congress, in regard to the award of the Joint: Commission under the Convention of the 25th of April, 1866. as expressed in the act of the 25th of February last.’ It is apprehended . that that Government does not realize the character of its obligations under that Convention. As there is reason to believe, howéver, ' that its hesitancy in recognizing them | springs in part, at least, from a real dif ficulty in the discharge of them in connection with its obligations to other Governments, the expediency of - further forbearance on olr part is believed to be worthy of your consideration. The Ottoman Government and that ‘ of Egypt have latterly shown a disposition to relieve foreign consuls of the judicial powers which heretofore they have exercised, in the Turkish Dominions, by organizing other tribunals. As Congress, however, has by law provided for the discharge of judicial functions by consuls of the United States in that quarter, under the treaty of 1330, I have not felt at liberty for many to accept the present charge without the ‘ assent of Congress, whose decision uppon the subject, at as early a period as may be convenient, is earnestly requested. L I transmit here for the consideration and determination of Congress, an application of the Republic of Santa Domingo to this Government, to exercise a protectoral over that Republic. { / TREATIES, ! Since the adjournment of Congress, the following treaties with foreign powers have been proclaimed: A Natutralization. Conyention with Denmark; a convention with Mexicq for renewing the Claims Commission; a convention of friendship, commerce and extradition with the Nange Free State; and a ,?;«'amrah“tif)n Convention with Ecuaaor; 3ot

. . POSTAL COMMISSIONS, | I'renew a recommendation mads in my message of December, 1870, that | Congress authorize the Postmaster General to issue all commissions to officials | appointed through his Department., ‘ NATURALiZ L TION AND EXPATRIATION. i I invite the earnest attention of Con- | gressLto the existing laws of the United States respecting expatriation and the eligible ot nationality by individuals. Many quizens of the United States reside ' permanently abroad with their families, Under the provision of the Act approved February 10, 1855, the children of "such persons are to be deemed and taken to be citiz:ns ot the United Stated,"but the rights of citizenship are not to descend to persons whose fathers never resided in the United States. | It thus happens that persons who have never resided within the United States have been enabled to ‘ putforward a pretension to the protection of the United States against the claim of military service of ‘the government under whose protection they werg born and have been reared. In some cases naturalized - citizens of the . United States have returned to their land of'i birth to reémain there, and their children, the issue of a marriage contracted there after their return, and who have neyer been in the United States, have laid claim to our protection when the lapse of many years has imposed upon them the duty of military service, to the only Government which ever knbwn them personally. Until- the year 186 S it' was left embarassed by the conflicting opinions of Courts and of jurists to determine. how | far the doctrine of perpetual alle- | giance,derived from our former colonial relations with Great Britain, was applicable to American citizens. Congress then wisely swept the doubta‘i away by electing that “any declaration, instruction, opinion, order, or decision, ! ofany officer of this Government which | denies, restricts, impairs, or questions | the right of expatriation, is inconsistent with the fundamental principle of this Government.” But Congress did nat indicate in that statute. no;has it sinße | done 80, what acts are to 1% deemed 'to | work expatriation. For n¥ own guid--ance in determining suah questions I | have required, under the provisions of the Constitution; the opinion in writing of theprincipal officer in cach of the Executive Départments upon certain questions relating to this subject. The result satisfies me that further legisia tion has become necessary. I therefore cfimmend the subjrct to the careful cénsiderption oft Congress; and [ transmit herewith copies of the several opinions of the principal officers my the lixecutive Departments, together with other correspondence and prominent information on the same subject. The United States who led the way in the overthrow of the feudal doctrine of perpetual aliegiance, are the last to indicate how their own citizens may elect another nationality. The papers submitted herewith. indicate‘ what is necesaary to place us: on a par with the other leading nations in} liberality of legislation on this international question. We have already in our treaties assented to the principles which would need to be embodied in the laws intended to accomplish such results. We have agreed that citizens of the United States may cease to be citizens, and may voluntary ender allegiance to other powers; we have agreed that residence in a foreign land ‘without intent to rgturn shall of itself work expatriation; we have agreed in some instances upon the length of time necessary for such intent. I'invite Congress now to make out and define. when and how expatriation can’' be gccomplished; to legulate by law the condition of American women marrying foreigners; to fix the status of children born in a foreign country of American K)arenm residing more or less permanently abroad: and to make rules for determining such other kindred points as may sgeem best to Congress.

OUR RELATIONS WITH BPAIN. . _ln compliance with ' the request of. Congress, [ transmitted to the American Minister at Madrid, with instructions to! present it te the Spanish Government, the joint resolution approved on the 3d of March last, tendering to the people of Spain in the name and on be-. half of the American people, the congratulations of Congress upon the efforts to consolidate in Spain the principal universal liberty in, a Republican form of government. The existence of this new Republic was iaaugurated by striking the fetters from slaves in Porto Rico. This! beneficient measure was followed by the release of geveral thousand persons illegally sold as slaves in Cuba, Next the Captain General of that colony was deprived of the powers 'to set aside the orders of his superiors at Madid, which had pertained to the office since 1825, The seqnestered estates of American citizens, which had been the cause of long and frequent correspondence, were ordered to be restored to their ownérs. All these liberal steps were taken in the face of a viplent opposition directed by the reactionary slaveholders of Havana, who are; valnly striving to stay the march offlideas, which has terminated slavery in Christendom, Cuba excepted. Unhappily, bowever, this baneful influence has thus far succeeded ip defeating the efforts of all liberal-minded men in Spain to abolish slavery in Cunba, and in preventing the promised reform in that island, The struggle for political supremacy continues. The Yrosluverv aristocracy in Cuba is geadually arraigning itgelf in more and' more open hostility and defiance of the home Govern‘ment, while it still maintains a polilical connection with the republic in the Peningula. And ulthoq%h usurping, defying the authority of | the home Gov-

‘ernment, whenever such usurpation or defiance tends in the direction of oppression or of the maintenance of abuses, it is still a power in Madrid, and recognized by the Government as an element more .dangerous -to c¢ontinued colonial ‘relations between Cuba and Spain than that which inspired the insurreciion at Yara. An element opposed to granting any relief from misrule and abuge, with no aspiratipns after freedom, commanding no sympathies in generous - breasts, aiming to rivet still stronger the shackles of slavery has seized many of the emblems of power in Cuba, with professions of loyalty to the mother country is exhausting the resources of the islands, end is doing acts which are at variance with the principles of justice and liberality, and of the right whieh gives nobility and character-to a republic. '[n the interests of humanity, of civilization, ?]nd of progress, it is to be hoped that this evil influence may be soon averted.

1 THE VIRGINIUS ARFAIR, The steamer Virginiuds was on the. 26th day oi September, 1870, dualy registered at the port of New York asa part of the commercial mage of the United States. On the 4{&?*%01)&, 1870, having received the cificate of her register in the usual legal form, she sailed from the port of New York, and has not since been within the territorial jurisdiction of the United States. On the 31st day of October last, while sailing under the flag of the UnitedeStates on the high seas, she was forcibly siezed by the Spanish 'gunboat Tor‘nado, and was -carried in the port of Bantiago de Cuba, where many, ot her passengers and .crew were inhumanely, sg far. at least, as relates to those who were citizens of the United States, without due provess of law put to death. It is a well-established principle asserted by the United States ffom the beginning of their National independence, recognized by Great Britain, and. other maratime powers, and stated by the Senate by a resolu-. tion passed unanimously on the 16th of June, 1858, that American vessels on the high seas in time of peace, bearing the American flag, remain under’ the jurisdiction. of the country of which they belong; and therefore the violation, molestation, or destruction of such vessel by force on the part of a foreign power, is in derogation of the sovereignty of the .United States. In sgccordance with this principle the restoration ot the. Virginius and the surrender of the survivors of her pas: senier_s and crew, and a due reparation to the:flag and the punishmeznt of the authorities who had been guilty of the illegal acts of violence, were demand ed. The Spanish Government has recognized the justiceé of the demand, and has arranged for the im nediate delivery of the vessel, and for the surrender g the ‘survivors of the passengers and crew, and for a salute to the flag, and for proceedings looking to the punishment of those who may be proved to have been guilty of illegal acts of violence toward citizens of the United States, and also toward indempifying those who may be shown to be entitled to indemnity. A copy of a protocol of a conference hetween the | Secretaty of State and the Spanish Ministez, in ‘which the terms of this arrangement were agreed to, is transmit- : tea herewith. ‘

The correspondence on- this subject with the Legation of the United States is in cipher and by cable, and needs'the verification of the actual text of the correspondéhce. It has seemed to me to be due to the importance of the casé not to submit this correspondence until the accurate text can be received by matl. It is expected shortly,'and will be submitted when received, In takingleave of this subject for the present, I wigh to renew the expression of my conviction that ths existencejof African slavery in Cuba is a principal cause of the lamentable condition of the dsland. 1 do not doubt that Congress shares with me the bope that it will £ .on be made to disappear, and that peace and prosperity may follow its abolitign. The embargoing: of American estatés in Cuba, cruelty to American citizend detected in a act of liogtility to the Spanish Government, the murdering of prisoners taken with arms in ‘their hands, and finally, the capture upon the high seas of a vessel sailing uader the United States flag, and bearing a' United States registrv, has culminated in an ontburst of indignation that has seemed for atime to threaten war. I Pending the negotiations between:the United States and the Government of Spain on the subject of this capture, 1 have authoriz:d the Secretary of the Navy to put our navy on a war footing; to the ‘extent at least of the entire appropriation for that branch of the service, trusting to Congress and the patriotic opinion of the American people to justify my action. :

CONSTITUTIONAL AMENDMENTS, ~ Assuming from the action of the last Congress, in appointing a Committee on Privileges and Elo&fions to prepare and report to this Congress a constitutional amendment to! pravide a better method of electing the President and Vice President of the United States, and also, from the neceesity of such anamendment, that ‘there will be submitted to the State l.egislatues for ratification such an improvement in our Constitution, T suggest two others for your consideration; -First, t¢ authorize the Executiye to approve of o much of any - measure . passing the two Houses of Congress: as his judg-. -ment may dictate, without approving the whole, the disapproved portion or portions to be subjected 'to the samo ruleg as now, to-wit: that it be referred back to the Housein which the meagsure or ineasures . originated, and if possed by a two thirds vote of the twol Houses, then it to become a law, without the approval of the President. I 'would add to this, a provision that there should be no legislation by Congress during the last 24 hours of its sitting, except wupon vetoes, in order to give the KExecutive an opportunity to examine and approve or disapprove understandingly, Second—to provide by amendment, that ‘when an extra session of Congress 8 convened by executive proclamation, legislation during the continuance of such extra session shall be conflned to such subjects as the executives may' bring before it from time to time in writing. The advantages to be gained by these two - amendments are o'brgious. One session in each year i§ provided for by the Constitution, in which there are no - restrictions as to the subjects of - legislation by Congress. 'lf more are required, 1t is always in the ‘power of Congress during their term of office to provide for sessions af any fime. The first of these amendments would protect the public against the many abuses and waste of public moneys which creep into appropriation bills and other important measures passing during the expiring hours of (s)ongreas, fo which, otherwise, due consideration cannot be given.

NATIONAL, FINANCES, In the Treasury Department, the receipts of the Gevernment from all sources for the last fiscal year, were $333,738,204, and the expenditures on all accounts, $290,345,245, thus showing an excess of receipts over expenditures of $43,392,959. -Bat it is not probable that this favorable exhibit will be shown for the present. fiscal year. Indeed, it is very doubtful whether, except with great economy on 'the part of Congress in making appropriations, and the same economy in the Administra tion in ¥administering the various departments of Governmenat, the revepues * 'will not fall short of meegng ‘the annual expenses, including ' interest om the public debt. I commend to Congress such economy, and would point out two sources where it seems to me it. might commence to curtail the appropriations for public. buildings in many cities where work has not been commenced ; in the appropriations for river and harbor improvements, in those localities where the improvements are of buf little bl}neflt to gneml commerce; and for fortifications. There is a stili more fruitful source of exexpenditure which I will point out later in - :this.- message. I refer to the easy method of manufacturing claims for logges incurred in the su{)— pression of the late rebellion: I would not be understood here as ono'sing the erection of good, substantial and everornamentai building by the Government, wherever - such buildings are needed. In fact, I approve of the Government owning its own buildings'in

‘all sections of the country, and lfmope ! | {he day is not far distant when it | will | not only possess them, hut will erect in | the capital suitabie residences for all - persons who now receive commutation | for quarters or rent at Government expense, and for the Cabinet, g&us sétting an_example to the Staes which may induce them to erect buildings for their . Senators; but I would have . this work conducted when the revenues of the | country would abundantly justify it. = | The revenues have materially fallen ! «off for the last five months of the pres: !

ent fiscal year from what they were expected to produce, owing to the general panic mow prevailing, which commenced about the middle of September last. The full effect of this disaster, if it ‘should not prove to be a blessing in disguise, is yet to be demonstrated. In either event, it is your duty to heed the lesson, and provide, by wise: and well considered legislation, as far as it liesin _your power, against its recurrence, and ‘to ‘take advantage of all the benefits that ,may have accrued. My own judgment is, that however much individuals may have suffered, one long step has been taken towards specie payments; that we can never have permanent prosperity until a specie ' basis is reached ; and that a specie basis cannot be reached until our exports, exclusive of gold, pay for our imports, inJ[ terest due abroad and other specie ob! ligations, 8o -heavy as to leave an appreciable accun)mlatiop; of the previeus metals in the'country from products of our mines. :

: THE CURRENC¥. i The development of mines of precious metals during the past year, and the prospective development of them for years to come, are gratifyingin their results. Could but one half of the ggld exiracted from the mines -be retained at home, our alvance towards specie payment would be rapid. - To increass our exports, suflicient currency is required to keep all the industrles of the country employed. Without this, national, as well as individual bankruptcy must ensue. Inflation, on the other hand,; while it might give temporary relief, would only lead to the inflation of prices, the impossibility of competing in our own markets for the products of home skill and labor, aud repeated renewals of present experiences. Elasticity to our circulating medium, therefor, and just enough of it to transact the legitimate business of the:country and to keep all indebtedness eruployed, 'ls what is most desired. The exact medium is specie, the recognized medium of exchange the worl@® over, that obtained, we shall have a currency of an exact degree of ' elasticity. If there be too much of it for the legitimate purposes of trade and commerce, it will flow out of the country; if too little, the reverse will result. To hold what we have and to appreciate our currency to that standard ¥ the prablem deserving of the most serious consideration of Congress.

The experience of the present pafnic has proven that the currency of the corntry, based as it is upon the credit of the country, is the best that has ever been devised. - Usually, in times of such trials, currency has become worthless, or so much depreciated in value as to inflate the values of all .the necessaries of life, as compared with the currency, every ons holding it has been anxious to dispose of it on any terms. now we witness the reverse.- = Holders | of =~ currency ‘hoard .it as they did -‘gold in former experiences‘ of a like nature. It is patent to the most casual observer, that much more currency or money is required:to tran- ‘ sact the legitimate trade of the couatry during the Fall and Winter months, when the vast crops 'are being moved, ‘ than during the balance of the year. ! Without the present system, .the amount in the country remains the same throughout the entire year, resulting in | an accumulation of all the surplus capital of the country in a few centres when not employed in the moving of crops, tempted there by thé offer of interest on call, loans. Interest being paid, this surplus capital ‘must earn the interest paid, with ‘a profit. Being subject to call, it can be loaned only in part, at best, to the merchant or manufacturer for a fixed term. Hence, no matter how much currency there might be ifi the country, it would be absorbed, the price keeping pace with the volume, and panics, stringency fnd disaster wou'd ever recur with the autumn, Elasticity in our money system, therefore, is the object to be obtained first; and next that as far as possible a prevention of the use of other people’s money in stock and other epecies ol specula. tion. To prevem! the latter, it Seemsi to me that one great step would be taken by prohibiting the; ‘gfla’twnal Banks from paying interest on' Ziqsits; by requiring them to holditheir regerves in’ their own vaults; and by forcing them into resumption, though it be only in legal-tender notes. = For this purpose, I would suggest the establlphm,exit of Clearig Housefi fofr vour considération. - ‘l'o secure the lormer, many #lans have befn sugeested, most, if ot all of which, look to me like the inflation on the one hand, or compelling the (ioverrlquent, on the' other, to pay interest without corresponding benefits upon surplus funds of the eountry during the seasons when otherwise unemployed: I submit for yoéur consideration whether this difficulty must no>t be overcome by authorizing the Secretary of the Treasury toissue at any time to National ‘Banks of issue any amount of their notes below/ a fixed percentage of thewr issue —say 40 per cent.—upon thé Bunk’s depositing with the Treasurer of the United States an amount of Goyernment bonds equal: to the amount of notes’ demanded, the Banks to forfeit tothe Government say 4 per cent. on. the interest accruing on the~bonds so pledged during the time they remain with the Treasurer as security forthe increased circulation; the bonds so pledged to be redeemable lay the Banks at their pleasure, either in whole or in part, by returning their own bills for cancellation to an amount equal to the face of the bonds withdrawn. = I would further suggest for your consideration; the propriety of authorizing National Banks. to diminish their standing issue at pleasure .by returning for cancellation their own bills, and withdrawing < 80 many . United States bonds as ‘are pledged for ' the the bills returned. In' view of the great actual contraction that has taken. ‘place in the currency, and the compartive contraction constantly going on, due to the increase of populatien, increase of manufactures, and all the industries, I do not believe that there is ‘too much of it now for the dullest period of the year. Indeed, if Clearing Houses .should be established, thus forcing redemption, it is a question for consideration whether banking should not be made free, retaining all the safeguards now required to secure .bill holders. In any modification of the .present law regulating National Banks, and a further step toward, paying for the resumption of specie pavment,linviteyour attention toa conconsideration of the propriety of reacting from them the rétention,asa part .of their reserve, of eithera whole or a part of the gold interestaccruing on the bonds pledged as seeurity” for their igsue. J have not reflected engtigh on the bearing this might have in praflucing a gearcity of coin with which to pay duties on imports, as’to give it my positive recommendation, but your attention is invited to' the subject. Duaring the last four years the currency has been contracted: directly by the withdrawal of three per cent. certificates, compound interest: notes, and 7-30 bonds outstanding on the 4th of March, 1869, all of which took the place of legal tenders in the baunk reserves to the extent of $63,000,000. During the same period there has been a much larger comparative contraction of the currency; the population of the country has largely /increased, more than 25,080 miles of rail- | read have been built, muquiringh the active use of capital to operate them; millions of acres of Jand have been opened to cultivation, requiring capital to move the products; manufactures haye mumplies bevond ali ' precedent in the same period of time, requiring capital wee;l)jy for the pay of wafes, and the purchase of material, and probably the largest of all comparative contraction arising from the orfisn-‘-i izing of free labor in tie South. . ‘Now every laborer there, receives his wages, and for want of savings banks, the greater part of such wages is carried in. the pocket or hoarded till required for use, These suggestions are thrown out

»r your consideration, wihout any reommendation that they shall be adopt :«d literally, but hoping that the est method . may be arrived at » gecure guch an lasticity of he currency as will keip emp¥oyed :ll the interests of the jountry, and rrevent such an inflation & will put, off ndefinitely the resumptiyn of specie rayments —an object to be devoutly vished for by all, and ky none more :arnestly than by the cliss of people nost directly interested, those who -arn their bread by the sweat of their | row. Thé decisions by Congress on his subject will have thehearty suprort of the Executive. ¢

¢ . BHIP BUILDING | . In previous ‘messa%es I hava called attention to the decline h American ship building, and recomnended such legislation as would secur) to us our proportion of thie carrying trade. Stimulated by high Trages and sbundance of ireight, the progress for thelast year in ship-building. ‘has been wryJsatisfac: tory. There has been anincrease of about 3 per cent.{in,the anount transported in American ‘essels over the- amount of last yar. With thé reduced cost of matrial which has taken place, it may reagonably be hoped that this' ¢hame will. be maintained and ever ificresed. y However, as we pay about $BOOOO,OOO per annum to foreign vessels fo! the trans portationn .of our surplus market, the balance of trade against us isthus increased to this amount. "he subject is one worthy of your serious consideraton. {

| CHEAP’ TRANSPORTAT/ON. t ' Cheap transportation is asubjject that has attracted the attention sf both producers and consumers for the past few years, and has contributed o, if it has not been the direct cajise o. the recent panic and strjngency. .As Congress at its last session appointed a gpecial committee to investigate this waole subject during vacation, and report at this session, T have nothing to recommend until their report is read. Thare is one work, however, of a National character, in which a great portion of the East and | the West, the North and the South, are, equally interested, to whichl will in-: vite your attention: The Staie of New Yorki hag a Cana! connecting Lake Erie with the tide wate{r on. thy Hudson River, the State of Illinois has a similar one connecting Lake Michigan with navigable water on the Illineis River, thus making a water communication . inland between the East and the West and the South. These great artificial water courses are the preperty of the States through which ‘they pass, ,and pay toll to thos States. Would it not be wise statesmanship to ‘pledge these States that if they will open these canals for the pjassage of -large vessels, the Government will look ‘after and keep in manageatle condition the great public, highways with which they connect, to wit: The overslough on the 'Hudson, the: St. Clair Flats, and the Illinois and Mississippi Rivers? This "would be a National work .and one of great value to the producers of the West and South, in giving them cheap transfer for their produce to the seaboard, and a market to the consumers in the East, in giving them cheaper food, particularly of those articles of food which do not find ja for‘eign market, and the prices of which, therefore, are not regulated by foreign démands., The advantages of such a werly are too obvious for argument. .1 submit the subject to you, therefore, -without further comment. . EXPLORING THE AMAZON,

In attempting to regain our lost commerce and earrying trada, I have. heretofore called attention to the State south of ug, oftering a field where much might be accomplished te further this object. I suggest that a small appropropriation be made, accompanied with the .authority of the Secretarw, of the “Navy, to fit out a naval vessel to ascend the Amazon River to the mouth of the Madeira, thence to explore the river and intlsiterbi/lfutanies into Bolivia, and to report { ngress at its next session, or as soon as practicable, the accessibility of the country by water, its resources and the population so reached. Such an exploration will cost but little, it can do no harm, and may resnlt in estab lishing a trade of value to both aations. ; THE TARIFF LAWS, In further connection 'with the Treasury Department, I would recommend a revision and codification of the’ tariff laws, and the opening of “more mints for' thé coining of money, with authority to coin for such nations as may apply.

THE WAR DEPARTMENT, ~ 4 The attention of Congress is iuvited to the recommendations in the report of the Secretary of War herewith accompanying. The apparently great cost of supporting the Academy is fully explained jn the report, and it yvil]_t_receive y rvatte‘ntiog. While Ny yonr antinm ba o« iR commendation: Qof tite Secretary -of War, there are ¥wo which I would especially inyite you toconsider. .First, the importance of preparing for war in time of peace by providing proper armament for our sea coast defenses. A proper, armament is of vastly more importance than “fortifications. The latter can be supplied very speedily for temporary purposes, when needed the former cannot. Second, the necessity of reopening promotion in the staff corps of the army. Particularly is this necessity felt in the medical, pay, and orduance department® At this time it is necessary ;to employ coatract surgeons to supply the necessary medical attention required by the army. With the present force of the pay departments ‘it is now difficult to make the payments provided for by law, and to troops long = delays in payments are productive of ; dese= tion, and demoralization, and the law prohibits the payment of troops by other than - regular army paymasters. There are now i 6 vacancies in the Ordnance Department, thus' leaving that branch of the service without sufficient officers to conduct the business of the different argenals on a large scale, ‘if aver required. : |

| THE NAVY DEPARTMENT., During the past year our navy has been reduced by the sale of some wessels no longer fit for nayal purposes, and by the recommendation of the others not yet disposed of. This has, however, been more than compensated for by the repair of the old wooden ships and the building of the eight new sloo‘gs-oi-war authorized by the last Congress. The building of these latter has occurred at a doubly fortunate time. ' They are about bein%) completed, when they will possibly be much needed, and the work upon them has not anly given direct emsloyment to thousands of men, but no doubt has been the means. of keeping oven other establishments - for other works at a time of great financial distress. Since the commencement of last month, however, the distressing occnrrences which have taken place in the waters of the Carribean Sea, almost on our very sea border, while ' they illustrate most forcibly the necessity always existing that a nation situated as ours §houid maintain in a~ stats of efficiency a navy adequate to its regponsibilities, has at the same tini® demanded that all the effective force we really have shall be put in immediate readiness for warlike service. This has been and is ‘being done promptly, and effectively, and I am assured that all the available ships and every atthorized man of the American navy will be ready for whatever action is required for tf:'e safety of our cities or the maintainance of our honor. This, of course, will render the expdnditure for a short time of some of the appropriations which were calculated to extend through the fisca! year, but Congress will, I doubt not, understand and !a(?preciate the emergency, and will provide adequately, mot onll\; for the present preparation, but for the future maintenance of a ‘naval force. The Secretary of the Navy nas, during the past year, been quietly patting some of our most extensive monitors in a condition for service, and thus the exigency finds us in a much better condition for workythan we could possibly have been without his action. ‘ § POSTOFFICE DEPARTMENT, . A complete ‘exhibit is presented in the aeaomp_nnyin§ report of the Postmaster General of the ?jpentions of the Postoffice Department during the year. The ordinary postal revenues for the fiscal year em.\iggß June 30th, 1873, ‘amounted to $22,906,741.57, and the ex-

gendi;:ures of all kinds to $29.084,945.67. he increase of reveénues for 1872 was '51,081,315.20, and the increase in expenditures $246,573.36. Independent of the payments made from special appropriations for mail steamship line, the amount drawn from the general Treasury to‘meet deficiencies was $5,265,450. The constant and rapid extension of our postal service, particularly upon Railways, and the im;l))roved facilities for the collection, distr:butionand delivery of mail which ltre constantly being provided, account for the increased expenditures of this gopular ‘branch of the public service. The total number of Postoffices in operation on the 30th of June, 1873, was 33,244, a net increagse 'of 1381 over the number reported the proceeding year.: The number of Presid%ntial offices were 1,363, an -increase of 163 during the year. The total length of Railroad routes at the close of the year was 66,470 miles, and increase of 5,546 miles over the year 1872. Fiity-nine Railway Postoffice lines were in operation on the 30th of June, 1873, extending ower 148,66 miles of Railroad routes, and performing an aggregate service of 34925 l miles daily. The number of letters exchanged with, foreign countries was 27,459,185, an increase of 3,096,685 over the- previous” year, and the postage thereon amounted to $3,031 310.86, and the total weight of correspondence exchanged in the mails with European countries was 912 ‘tons, an increase of 05 tons over the previous year. The total cost of the United States Ocean Mail Stearaship Service, including $35,000 paid from the special eppropriations to subdivided lines of Mail Steamers, was $104,727,135. New or additional .postal conventions have been concluded with Sweden, Norway, Belgium, Germany; Canada, New Foundland and Japan, reducing -the postage‘ rate on correspondence exchanged with | those ‘tountries, and furtter efforts have heen made to.conclude a gatisfac- 4 tory postdl connection withLlFrance, but without success. 1o I invite the favorable consideration of Congress tothe suggestionsand recommendations of Postmaster General for an extension of the free delivery system, in all cities havinfia population not less than 10,000; for the prepayment of postage on newspapers and other printed matter of the second class; fora uniform postage and limit of weight on miscellaneous matter; for ‘adjusting the compensation of all Postmastérs not a;i)pointed by -the President by the old method of [commissions on actual receipts of the' office, iustead of the present mode of fixing the salary .in advance upon special returns, and especially do I urge the fayorable ac- | tion of Congress on the important recommendation of the Postmaster General for the establishment of United States postal savings depositories. Your attention is also again called to a consideration of the question of postal relegraphs and the arguments addeced.in support thereof, with the hope that you may take such action in connection therewith as in your judgment will most contribute to the best interests of. the-country.

MATTERS IN UTAH. Affairs in Utah reqnire your early: and special attention. The Supreme ‘Court of the United States in the case of Clinton vs. ' Englebrecht, decided that the United States Marshal of that Territory could not lawfully summon jurors for the District Courts, and those Courts hold that the Territorial Marshal faithiully performs that duty, because he is elected by the Legislative Assembly and not appointed as provided for in the act organizing the Territory. - All proceedings at law are practically abolished by these decisions, and there have been but few or no jury trials in the District Courts;of that Territory since the last session of Congress! Property is left without ‘protection by the country, and crimes go unpunished. To prevent anarchy there, it is absolutelv necessary, that Congress provide the courts with some imode of obtaining jurors, and. I recommend legislation to that end, and also that the Piobate Courtsof theTerritory which now assume to issue writs of injunction and habeas corpus, and to try criminal cases, and questions as to land titles, be.denied all jurisdiction not possessed ordinarily by counrts of that description, / " ' THE BANKRUPTCY LAW.

I have become impressed with the belief that the act approved March 2d, 1867, entitled . ““an act to establish asa uniform system of bankruptey throughgut the United States,” is produetive of more evil than good at this time. Many. considerations might be urged for its total repeal, but if thisis not considered advisable, I think it will' not ‘be. seriously questioned that those portions of ‘gaid act providing for what is called Involuntary bankruptcy” operate to increase the financial embatrassment of the country. Carefiil and prudent men very often become involved in debt in Eh‘e transacgion 9; their business, a{nc{lj TR 1Y g . IR AL pi property, §f it could be ‘made available for that purpose, to meet all their liabilities, yet, on acéount of the extmaordinary scarcity of money they may be unable to meet ali their pectiniary obligations as they become due; in consequence of whick, they are liable to be prostrated in their business by proceedings in bankruptey at the instance of their creditors. People are now so easily alarmed as to mounetary matters, that the mere filing of an ap {)lica-tion in bankruptey by an unfriendy éreditor, will necessarily embarrass, and oftentimes accomplish the finanéial ruin of a responsible business man. Those .who otherwise mighf m: ke lawful and just arrangements to relieve themselves from difficmlties produced by the present stringency in money, are prevented by their constant exposute to attack and disappointment by proceedings against them in bankruptey, besides, the law is taken advantage of 1n many cases, by obdurate creditors, to frighten or force debtors into a compliance with their wishes, and into acts of injustice to other cred-. itors and to themselves. I recommend ‘that so much of said act as provides for involuntary bankruptcy on account of the suspension of payment be repealed.

CLAIMS AGAINST THE GOVERNMENT. Your careful attention is invited to the subject of claims against the Government and the facilities afforded by the existinilaws for their prosecution. Each of the Departments of State, ‘Treasury an t War, have demands for many milliens of dollars upon their files, and they are rapidly accumulating. To these may be added those now pending before Congress, the Court of Claims, and the Southern Claims Commission, making in the aggregate an immense sum. Most of the grow out of th¢ Rebellion, and are intended to indemnify persons on both sides for their losses during the war; and not a few of them are-fabricated and supported by false testimony. Projects are on foot, 1t 18 believed, to induce Congress to provide for new classes of claims, and to revive old ones through the repeal or modification of the statute of limitation by which they are now barred. I presume these schemes, if proposed, will be received with little favor by Congress, and I recommend that® pétsons having claims against the United States be 'required o present them at an early date, and that Jlegiglation be directed 4a far a 8 practicable to the defeat of unfounded and unjust demands upon the Government, and I would suggest as a means of preventing fraud, that witnesses be called upon to apvear in person to testify before these tribunals, having said claims before them for adjudication. Probably the largest saving to the National Treasury can be secured by timely legislation on these subjects of any of the economical measures that will be proposed. You will be advised of the operations of the Department of Justice by the report of the Attorney General, and I invite your attention to the amendments oi existing laws suggested by him with a view of reducing ' expenses | of that department. ] e <

' DEPARTMENT OF THE INTERIOR. The policy inaugurated towards the Indians at the beginnimz of the last Administration has been steadily pushed, and, I believe, with . beneficial result% It will be cortinued with only suc modifications as’time and experience may demonstrate as necessary. With the encroachment of civilization upon the Indian reservations and bhunting grounds, disturbances have taken place between the Indians and whites during the past year, and probably will continue to do 8o until each

race apgreciawq that the other has rights which must be respected. The policy hasbeen tocollect the Indians as rapidly as possible on reservations, and as far as practicable within what is known as the Indian Territory. and to .teach them the arts of civilization and self support. - When found off their ’,reservations “and endangering the lives of whites; they have been punished and will continue to be, for like offenses. The Indian Territory south of Kansas and west of Arkansas, i safficient in area and agricultural resources to support all the Indians east of the Rocky Mountains. In time no doubt all of them, except a few who may select to make their homes among white people, will be collected there. As a preparatory step for this -consummation, I am now satisfied that a territorial form ef goverment should 'be given them, which will secure the treaty rights of the original settlers and pro ect their homesteads from alienation for a period of 20 years.

i THE PATENT OFFICE, - ) The operations: of the Patent Office are growing to such a magnitude, and the accumulation of material is becoming so great, that the necessity for more room is becoming more obvious each day I respectful.y invite your attention to the reports of the Secretary of the Interior and the Commissioner of Patents on this subject. 2 THE GENERAL LAND OFFICE. > The business of the ‘General Land Office exhibits a material increase in all of its branches during the past fiscal year. Duing that time there were disposed out of the public lands, 13,039, - 606 acres, being an amount greater by 1,165,631 acres than was disposed of the preceding year. Of the amount disposed of 1,626,266 acres ‘were - sold for cash; 2(4,940 acres were located with military land warrants; 3,703,612 acres were, taken for homesteads; 653,446 acres were located with agricultural college seript; 6,083,536 acres were certified by Railroads; 765,756 a res were granted to wagon roads; 238,548 acres were approved to BStates for swamp lands; 138,681 acres were certified for agricultural colleges, common schools, universities - and seminaries; 190,775 acres were approved to States for internal improvements; 14 222 acres were located with Indian script. The cash receipts during the same time were $3,408,515.50, being $190,415.50 in excess o° the receipts for the previous year, During ‘tfle year 305,488,132 acres of public land were surveyed, an increase of the amount surveyed the previous year of 1,037,193 acres; :and added to tge area previously surveyed, aggregates 615,554,895 acres which have been .surveyed, leaving 1,218,443,505 acresof the public land still unsurveyed.

B A A T R A SR e T NT S I e e e e MR, oed D The increased and steadily increasing facilities for reaching our unoccupied. public domain; and for the transportation of stirplus ‘products, enlarges the available field for ‘desirable homestead locations, thus stimulating settlement and extending year by year in a gradually .increasing ratio, the.ratio of occupation and cultivation and occupation. The expressed desire of the representatives of a large colony. of citizens of Russia to emigrate to this country, as is-un-derstood with the-consent of their Government, if certain concessions can be made to enable them to settle in gompact ‘colony, is of great interest, as going to show the light in which our institutions are regarded by an industrious, intelligent and wealthy people, desirous of enjoying civil aud religious liberty, and the acquisition of so large an immigration of the citizens of a superior class would without doubt be. a substantial benefit to-the country. I invite attention to the suggestions of the Seere tary of the Interior in their behalf.

There was paid during the last fiscal vear for peunsions, . including the expenses of disbursment, $29,185,280.62, being an amount less by $984,050.98 than was expended‘for the same purpose the preceding year. . Although this statement of expenditures would indicate a material reduction 1n the amount compared with the: preceding year, it is believed that the change in the pension laws at the last session of Congress will absorb that amount the carrent ' year. At the close of the last ~ year there were on“ the pension rolls 09,804 “invalid military pensioners,and 112,088 widows | and orphans and dependent widows ot{ deceased soldiers, making a total of that class of 211,802; 18,266 suryivors of | the war of 1812, and 5,053 widows of soldiers of that war pensioned under the act of Congress of February 14th, 1871, making a total of that class of 23,139, 1,430 invalid navy pensioners and 1,770 widows and orphans and de pendent relatives of deceased- officers, sailors and marines of the navy pensioners, making a total of that class of 3,200; and a grand total of pensioners of all classes of 238,411 ; showing a net in;re_ase during the_ last fiscal vear of 1218, Dnring the'laat year the nameg f)f 16,405 pensionexs ware addeél 10-they rolls, and 19,223 names were dropped therefrom for varjous causes. ' The system adopted for the detection of frands against the Government in the matter of pensions has been productive of satisfactory results, but legislation is n ed to provide if possible, ' against $ perpetrations of such frauds in the Tufutre. )

EDUCATIONAL. ‘The eyidently increasing interest in the cause of education is a most encouraging feature in the general progress and prosperity of the country, and the Bureau of Education is earnest in its efforts to give prover direction to the new appliances and the increased facilities which are being offered to aid in the efucators of the country in their great work.

THE NINTH CENSUS : has been completed, ;and the report thereof published and! distributed, and the working force of 'the bureau disbanded. The Secretary of the Interior renews his recommendation for a census to be taken in 1875, to which subject the attention,of Congress is invited. The original uggestion in that behalf has met with the general approval of the country; and eyen if not deemed ‘advisable at present ‘to provide for a regular quinquennial census, a census taken in 1875, the report of which could be completedl and published before the 100th anniversary of our independence, would be especially interesting and valuable, as. showing the progress of our country during the first century of our National existence. It is believed, however, that a regular census every five years would be of substantial benefit to the country, inasmuch as our growth hitherto has been so rapid that the results of the decennial census are necessarily unreliable as a basis of estimates for the latter years.. o THE CITY OF WASHINGTON. -

Under the very efficient management of ‘the Governor and the Board of Public Works of the District of Columbia, the City of Washington is rapidly assuming the appearance of a Capital of which the Nation may well be proud. From being a most unsightly piace three years ago, disagreeable to pass through, in snmmer, in conssquence of the dust arising from the unpaved streets, and almost impassable in the winter, from the‘mud,it is now one of the most sightly cities of the country, and can boast’of being the best paved. The work has been done systematically, the plans, grades, location of sewers, water and gas mains being determined upon before the work was commenced, thus gecuring permanency when :completed; 1 question whether so much has ever baen accomplished- before in any American city for thesame expenditures. The Government having large reservdtions inthe city, and the Nation at large havingan interestin its Gapitol I recommend a liberal policy towards the District of Coluinbia, a.n(_l that the Government should bear its just share of the expenses of thesy improvements. Every citizen visiting the Uapital feels a pride in its growing beauvy, and that he, too, is part owner in tha investments made here, I would suggest to Congress the propriety of promoting the establishment in this District of an institution of learning or nnivemit{ of the highest class, by, the donation of lands. There is no place better suited for such an institution than the National Capitol. There is mo other place in which every citizen is so directly interested. CIVIL SERVICE REFORM. In three successive messages to Congress [ have called attention to the subLect of Civil Service Reform. Action as been taken so /far as to authorize

the appointment of a Board to devise rules governing the methods of making appointments and promeétions; but there never has been any action making these rules or:any rules binding or-even entitled to observance, where petsons desire the appointment of a friend or the removal of an official . who may be disagreeable to 'them. To have any rules effective they must have the ac: quiesence of Congress as, well as of the. Executive. I recommend therefore, the subject to your attention, and sug: gest that a special Committee 'of Congress might confer with the Civil Board. during: the present “session for the purpose of devising ‘suchrules as will be maintained, and whichwill secure the seryices -of honest and’ capable .officials, and. which wili" also protect them in a degree of independence while in office. Proper rules will protect Congress as well a§ the Executive from much needtess precaution, and; will prove of great value to the public at large. -~ . -

: COLORADO. e I would recommend for your : favorable c.nsideration the ‘passage of an Admission Act for the admittance of Colorado as a, State in the Union. ' It possesses all the elements of 'a prosperous State, agricultural and mineral; and I believe has a- population- to justify such an admission, i S i

In that connection I would also re: commend the encouragement of a canal for purposes of irrigation from -the eastern slope of the Rocky Mountains | to the Missouri River. As a.rule, Tam opposed to the donation of publi¢ lands;‘ for internal improvements owned and controlled by private corporations, but in this instance I ‘would make an exception. Between the Missouri River and the Roeky Mountaing there:is an arid belt of public land from 300 to" 500, miles in wii{)th, perfectly"ytilueless for the occupation of:- man* for want of sufficient rain to secure the growth o’f~.l any! products. * ~An irrigating. canal would make productive a bed’ as wide,;‘ as the supply of water could be made ‘ to spread over across thfs- entire .country, and would secure a cordon -of. set- ‘ tlements connecting the presént population of the mountain and mining regions with that of the older States. All the land reclaimed would be clear gain. If alternate sections were reclaimed by the Government, I would suggést that the reclaimed sections be thrown open -to entry under homestead laws, or soldto actual settlers for a very low price. GENERAL AMNESTY. ° T I renew my previous recommendation to Cangress for general a‘mnestg. The number emgaged:in the late rebellion laboring under disabilities @ is- very small. but enough to keep up a constant irritation. No possible danger;can aceru? to the Government by restoring them to the eligibility to hold office. © . s, OCIVIL RIGHTS. e . I suggest for your consideration ‘the enactment of a law to better secure-the civil rights which freedom should: secure, but has not. effectually secured to the enfranchised slave, - 7 - . : U. 8. GRANT ~ - Exgcurive Mansion, Dec. 1, 1873, -

The Protocol. LR Protocnl-of the Conference held at the Departme.lt of State at: Washington on the:£9th of November, 1873, betseen Hamilton = Fish, Hecretary of State, and Rear Admiral Don Josz Polo de Barnabee, Euvoy Extraordinary aud Minister Plenipotentiary of Spain: . 7, The -undersigned, having mét for thepurpose of entering into a defintte agreement respecting the case of the steamer: Vigginius, whick, while under the flag of the United States was, on tHe ‘3ist day of Qctober last, captured on the high seas bythe Spanish man-of-war ‘Tornado, havereached the following conclusions: - Spain on-her par: stipulates. to restore forthwith the vessel referred to, ‘and the: suryiyors of her passengers and crew, and on the 25th day of December hext to -sa lute the flag of the United' States. If, however, - before that date Spain should prove to the satisfaction of -the Goverinment of the United States that.the Virginius was not entitled to carry the tlag" of the United States, and was ‘carrying it at the time of her capture -without right, and improperly, the salute will "be spontaneously dispensed, as insuch case; this not being necessary requirable; but.’ the. United States: may expect "in-_such. cagea disclaimer of intent of indi vty o 175 flag in the act which was committed Furthermore if on or. before the 25th ‘of December, 1873, it shall be made to appear to the satisfaction of the. United Btates that the Virginius did not rightfully carry the American flag and ‘was not entitled to. American papers, the United States will institute inquiry and adopt legal proceedings against the vessel, if it be fuund that she’ has violated any law of the United States; and again&t. any of the persons who- may appear. 4o have been guilty “of - illegal acts: in connection therewith; it being understood that Spain. will proceed, according. to the second proposition made to General fizles,aud gommnnicated in his telegram to Admiral Polo on the 27th inst., to investigate the authorities whohaye infringed o e Spanish laws and hogp-’ oraty 'oblzyi'““s- and will - arraign, thom| b=fs competenty’ ecolavts; afls rodlicy puntghmert off: those who may haye ofl‘endid; other reciprocal recla-’ mations to be subject to consideration and arrangement between the two ‘Governments; and in case of ro agreement, to be the subject of arbitration, 1f .the constitutional assent of the Senate ‘of the United Statesgbe given thereto. . Itris: further ;stip\?fated that the' time, manner “and ' place for -the surrender. of 'the: Virginius - ‘and . the: and the surviyors of those on board of her atthe time of hep capture, and also the time, manner imllacg for .the. salute tothe tlag of tb Tnited States, if there should be occasion for such salute, shall be subject to arrangement between the 'undersigned within the next two days. (Signed) Haminron Frsa,; - 5 _Jose PoLo DE BARNABEE..

ARCHITECT MULLET'S REFORT. . ° WasningToN, Nov. 30.—Supervising Architect Maullet,' in ‘his report, after enumerating the 'sites purchased for. public buildings, recommends appropriations for the purchase of additional property to enlarge the rite occupied by the custom house at . Paul; and. to construct simultaneously with'.the re-. mainder of the building the Adams street front of the new public building at Chicago. : : ’ The progress in the -public building ‘at St. Louis has been: very unsatisfactory. but it is trusted that the obstacles. i in the way of its rapid prosecution wilt be soon removed. ~ The custom house‘and Yostoffice at Pittsburg are far too small, and he recommends an appropri- | ation to commence a:new building in’ that city at an early day. He also! thinks it desirable that a new building be erected at Toledo. The- appropriation for the erection of new buildings at Nashville, Tenn., Covington; Ky., Evansville, Ind.,. ‘_and} Little Rock, Ark, dre -not . sufficient and it is impossible to comply with the restrictions on their costs, qx-fl cept by erecting buildings inadequate in size and unsuitable for the pu_rpoees‘ intended. And the architect suggests that in cases where it is not, consideréd desirable to-'appropriate the amount. necessar{ to erect suitable and perma--nent buildings it would be more advan- | tageous to defer action and rent tempo--rary accommoeations until such times -as the finances of the Goveriment may warrant an appropriation of the neces--;sary amount. He renews his recom:‘mendations to sell the marine hospital | Broperty at Pittsburg, Pa., and also ‘at etroit, Mich. He thinks it indispensably necessary thal the east front of the Treasuday Department be rebuilt, . He r{qcommeuds the erection of a build-: ing for the accommodation of ' thenote printing:-bureau and for the records of the -department; also, that steps be taken to secure from ‘t’be’-city oip?New York, the whole or a portion' of -the Battery, for the ‘erection of a new cus-tom-house, and that a suitable appraiser’s store be built in the same locality. 'He recommends an -extensive Detroit. custoin-house. In conglusion Mr. Mullett calls attentionito the eight-ticar law } as injurions to . the best interests of fné iGovernment and to ‘workmen themi}‘selves. and says: ‘' I the ruleis to be" the permanent policy of the Government, and its mechanicg and laborers: are to be compensated at the rate of 20 per cent., about the highest market 'rates, 1 see mno 6|Lea\son why officers, -clerks and other émployes -of the Government should not be . paid by the ~same rdle. Under the present system, gentlemen of education who - occupy positions of trust and great pecuniiry respongibility in bureaus, actually re. ceive less than mechanics’ wages and. are - discriminated against 1n favor of men, who, as a rule, - exhibit but - very " little interest in the performance of their duties and have ' no responsibility. It is also a fact, that

many mechanics receive, under the present: gystem, not. only more than foreman ‘and master mechanics, but more than the superintendent of work in which t'hely are engaged; the latter class being allowed no compensation for extra labor performed.”. = .

. LOSS BY FIRE. . ‘Dispropartion of Loss—limely Facts. ; i - and Suggestioms. o .. Erom the N. Y, Tribune, Nov. 21, 1873. ~The record of the year which is about to close, while it does ndt so far present 8o foricidable & catalogue of losses by fire in the great . centers of population and industry as semé of its immediate ‘predecessors, ig not after all a very enpouraging one in respect to the recur--rence. of sp_c'h‘ disasters. -No lone can examine it'without' concluding that, in . this couuh?,‘fir’es are increasing ‘much more rapidly than.is warranted by the .increase of business done and values exposed to loss. - ° st . 'The statistics of insurance.show that ‘—leaving out "of the: account. all the losses of: companies which have banlktupted them—the losses by iire in foreign éouiitries ‘bear the same proportion to the premiums received by insurance cothpanieés-as in this ‘country. But while these percentages of loss are so veory mearlv equal, the rates of preminm are very unequal. Wfthf)ut going into detail, it is sufficiént for our present purpose that the preminms for fire in‘Burance charged in thig country are at - least.double thosé eharged abroad, and they are steadilyand necessarily increas‘ing”. It follows that tHe ratio of loss by fire to'amount insured is in' this counfry twice as great as in furei;,fix countries How . far .this disproportionate loss is preventable, what are Its eauses, and ‘whatthe‘remedies; if any, are questions quite as vital to the:'citizen as to the fire underwriter. Ultimately the less falls upon the community, whether insurance intervenes to protect -the indiviunal or not; and it is better to spend ‘our energies in ‘digcoyering the causes‘of the loss than in disputing whether shall be paid in the shape of increased - premiums on our .insurance, or an increased tax lipon our industry. : > Theé headlong haste with: which all our enterprises are .begun and carried forward makes us-a reckless people. A majority of all the fires, the causes of ‘which are. ascertained with certainty, ‘originate in sheer carelessness -carelessness in the construction of buildings, ‘in the arrangement and use of heating and lighting apparatus, -and in the handling® of dangerous substances. :Reckless haste, and still more reckless greed, in the absence of the vigilant ‘controlof law, put up buildings of such flimsy material, with such slender par--tition wallg, and sich gaping crevices in chimney and flue, that the wonder only is that the fire comes so seldom when it - ig ;80 constantly invited. This evil is by no meaus confined to the humbler ¢lass of structures,” In some respects,: .and - thesé such as reasonable caution and.a- trivial outlay would have pre vented, the most. imposing edifices are the most faulty. ‘The -speculations induced hy thewar led to the hasty erec‘tion and expangion of towns in preparation.for a population and a- prosperity ~which nas neyer “come, or coming has departed. Buildings in such localities;, { usnally. heavily mortgaged, and either: badly oceupied or mnof occupied at all, are-not desirable property, and often the usureris’the-only ‘cash; purchaser Lakailablec. © s weio 2y . Thighasté with which new| towns ‘spring up and grow into cities prevents “on the part. of -the underwriter that thorough Knowledge of both the character of the risks and of the applicants. which i 8 an edsential safeguard against *’the'tiuWiLQing offer of a- premium oninl.cem!fansm.' Thig one fact places our underwriters at greay disadvantagh as l couipared with those of othercountries; and the disadvantege'of .the undérwrif ter is here, to a greater or less extent, tfl?’ peril of the community: |-

- 'The greater difficulty in this country in detecting and punishing the crime o arson than exists. undeér the police syg--tems of the old world, contributes in ng smail degree to make life and property Linsecure In some gountriés of Kuropa i the cauge 61 every fire s Investigated, and the anderwriter is' prohibited from aying. until the fire is shown to have .{)een ‘an” honest” one. . The rule being: impartial, the rule damagesneither the reputation -nor the business of the insured. In this country, close investigation into the cause of afire is seldom l made; unless the underwriters make it on suspicion; and, when they come into* .court to resist “a claimm believed to be dishionest, our courts and juries regard -them. with ‘distavor. This indirect but l ‘powerful. encouragement ot incendiar-i-ism much increages the—frequency, and much more the destructiveness| ofiires‘ 5 for when the origin of the fire is incen_diary, the material is expressly prepared not! only tékindle, but to burn. The B o Sat amch e

Thereadidess with which new inventions and’ discoveries are adopted into general use in this country, is notwithaut itsimeasure-of.influence: in increasing the hazard of fire. : Steam has come “into almost universal use.” Railways shoot along our. thoroughfares, and en:ging fires burn day and night! beneath ‘gtafely. - stricture . ‘and. open street. Patent heating “and lightning contrivances are in -constant use by people ‘rwho have neither the sense to regulate nor to fear-them. Lucifermatches vindicate [their title by ‘playing the -devil’_ in Improper places and careless hands: " New chewmical products and ‘combinations, the- properties and possibilities of which ‘are but little known, enter into every process of manufacture and make our teeming factoriest and towering warehouses magizines of .combustibles—often in’' the midst of ‘crowded. cities, the quicker to spread desolation when the fire ignites,

. “And worst of all, petroleum, its pro“duets and their adulterations. add their innumerable perils to the existing'dan‘gers. - Its transportation costs the frequent loss'of railwhy trains, depots and docks; "its' storage -endangers every . wareliouse where it is harbored; and its use entails am annual lossof millions. As a true “ demon of the land,” it has entered more than half the households 1 the country, to'put them and the rogi that covers them in continual jeopardy..: - ! : 2 : ( ‘Such are a few of the more prominent reasons for that'excessive -annual 16ss by fire with : which the productive in‘dustries of this country are, to a large extent unnecessarily burdened. 1 Geethe Fairly Beaten.

The German poet, Goethe, had an intense dislike for various visitors, who "had noclaim on his attention, but obhtruded themselves on his quiet or his ‘hours of study. - He often treated theni {'rudely, and sent them away without | ceremony.’ : l.- But an American. student proved ' Himself more than a match for the poet {ln - his ‘crabbed mood. He called one ltevening when ‘Goethe was at supper, { and the great man, eager to get rid ol i the intruder, ‘walked into the parlor and ! sat down, in 4 chair in the middle of the ! room, without Baying a word to his | visitor or even looking at him. . .But the Yankee youth had a keen gense Of humor, and was not to be blaffed off in that style; He coolly. rose, took a candle in his hand, and i walked round the poet, inspecting every { part of im closely, and then put down g florin on'the table as paymeut for the - show, and walked away. ‘ {< Goethe's sense of the ludicrous was too strong to keep silent. He burst into & Hearty laugh, called the _student back, and they bad & good social time L4ogether. - - i

<. < - The Sewara Medal, ‘ From thé Washington Chronicle. - _George F. Robinson yesterday recefv. ‘ed the medal awarded to him by Congress in 1871 for saving the life of Sec retary: Beward;, when attacked by the assassin Payne,.on the night of the 14th \of'Afixgl,’ 1865, The medal was made at ‘ihe United States Mint in Philadelphia, ‘at.a cost of $1,400. . On the obverse side of the medal Mr. Seward is representirg lying in his bed, with the curtain drawn. .Standing at the ’L‘f{' of the bed is° Payne, with an uplifted dagger in ‘one hand and with the other clutching the throat of Bobinson, On the revers.side of the medalis a bust of Robinson: . above his head a wreath of flowers, anii . . on each side the following inscription: -4 Tor his heroft conduct on the 14th . ‘day of April, 1865, in saving the lifé o! . the Hon. W. :H.Seward, then Secretary: of State-of the United States,”