Pike County Democrat, Volume 25, Number 31, Petersburg, Pike County, 14 December 1894 — Page 6

PRESIDENT’S MESSAGE The President Makes His Annual Communication to Congress. A General Review of Oar Foreign and Domestic Relations and a Resume of Secretary Carlisle Mew Currency Scheme.

President Cleveland’s message to the •econd session of the Fifty-third congress was submitted to both houses. It is.as follows: To the Congress or the United States.— The assemblage within the nation's legislative of those charged with the duty of making laws for the benefit of a generous and free peoBle impressively suggests the Jjxaeting obligaon and inexeorable responsibility involved In their task. At the threshhold of sueh labor now to be unfiertaken by 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 seems to me necessary ana expedient Foreign Affairs. The history of our recent dealings with other nations andoour peaceful relations with them at this time additionally demonstrate the advantage of consistently adhering to a firm but tust foreign policy, free from envious or aralitious national schemes and characterized by entire honesty and sincerity. PEACE AND ORDER IN BRAZIL. The termination of the civil war in Brazil has been followed by the general prevalence of peaoe and order. It appearing at an early stage of the insurrection that its course would call for unusual watchfulness on the part of this government, - our naval force in the harbor of Rio de Janeiro was strengthened This precaution, I am satisfied, tended to restrict the issue to a simple trial of strength between the Brazilian government and the insurgents, and to avert complications which at times seemed imminent. BRAZIL AND OCR TARIFF. Although the .government of Brazil was duly Ratified that tbe commercial arrangements existing between the United States and that country, based on the third section of the tariff act of 1890, was abrogated on August 28,1894, by the takiug effect of the tariff law in force, that government subsequently notified us of its intention to terminate such arrangement on the first day of January, 1895, in the exeroise of the rfifht reserved in the agreement between the two countries. I invite attention to the correspondence between the secretary of state and the Brazilian minister on this subject THE NEW CHINESE TREATY. On the l*th day of March last a new treaty with China, in further regulation of emigration, was signed ut Washington, and on August IS it received the sanction of the senate. Ratification on the part of China and formal exchange are awaited to give effect to this mutually beneficial convention. A GRATIFYING RECOGNITION. A gratifying recognition of the uniform impartiality of this couutry towards all foreign states was manifested by the coincident request of the Chinese and Japanese governments that the agents of the United States should, within proper limits, afford protection to the subjects of the other during the suspension of diplomatic relations due to a state of war. This delioate office was accepted, and a misapprehension which gave rise to the belief that in affording this kindly unofficial protection our agents would exercise the 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 policy 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 whloh may result j,o our oltisens 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 hostilities defeated this kindly purpose. Deploring the destructive war between the two most Kworful of the eastern nations and anxious at our commercial interests in those countries may be preserved and that the safety of our citizens there shall not be 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. COMMERCIAL CLASH WITH GERMANY. Acting upon the reported discovery of Texas fever in cargoes of American cattle, the German prohibition against Importations of live stock and fresh meats from this country has been revived. It is hoped that Germany will 6oon become convinced that the inhibition is as needless as it is harmful to mutual interests. The German government has protested against that provision of tbe customs tariff act which imposes 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 contravention of articles five and nine of the treaty of 1828 with Prussia. In the interests of the commerce of both 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 state containing a disoussion of the questions raised by the German protests. THE BEHRING SEA AGREEMENT. Early in the present year an agreement was reachod with Great Britain concerning instructions to be given to the naval commanders of the two governments in Behring sea and the contiguous North Pacific oceuu for their guidance in the execution of the sward of the Paris tribunal of, arbitration and tbe enforcement of the regulations thorein 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 1425,000 in full satisfaction of all claims which may be made by Great Britain for damages growing out of the controversy as to fur seals in Behring sea, or the seizure of British vessels engagedln taking seals in t hose waters. The award and findings of the Paris tribunal to a great extent determined the facts and Drinclpie8 upon whioh these claims should be adjustod, and they have been subjected by both governments to a thorough examination upon the principles as well as the facts whioh they involve. I am convinced that a settlement upon the terms mentioned would be an equitable and advantageous one, and I recommend that provision bo made for the prompt payment of the stated sum. Thus far only Frauoe and Portugal have signified their willingness to adhere to the regulations established under the award of the Paris tribunal of arbitration.

HAWAIIAN RECOGNITION Since oommuicating the voluminous correspondence 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 the organization of a government in place of the provincial arrangement which followed the deposition of the queen has been announced with evidence of its effective operation. The recognition usual on such cases has been accorded the new government. PROGRESSIVE JAPAN. Apart from the war in which the island emStro is engaged, Japan attraots increased atjntion m this country by her evident desire to cultivate more liberal intercourse with us. and to seek our kindly aid in furtherance of her laudable desire for complete autonomy in her domestic affairs and full equality in the family of nations. The Japanese empire of today is no longer the Japan of the past, and our relations with this proIfrossive nation should not be less broad and iberal than thoae with other powers. THE BliUEPtEtiDS INCIDENT. Prominent among the questions of the year was the Blueflelds incident in what is known as the Mosquito Indian strip bordering on the Atlantic ocean and within the jurisdiction of Nicaragua. By the treaty of I860 between 1 Great Britain and Nicaragua 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 be exercised according to their customs for themselves and other dwellers within its limits. The so-called Native government. which grew to be largely made up of aliens,for many years disputed the sovereignty of Nicaragua over the strip, and claimed the right to maintain theretn a practically independent municipal government. Early in the past year efforts of Nicaragua to maintain sovereignty over the Mosquito territory led to -serious disturbances, culminating in the suppression of the native government and the attempted substitution of an impracticable composite administration, in which Nicaragua and alien resident ware to participate. Failure

wi followed k; an insurrection, which for time subverted Nicaraguan rule expeling officers snd restoring the old organizer This,In turn .gave place to the existing local eminent established and upheld by Ntci The Nicaraguan authorities having glveh.notlce of forfeiture of their concession to the canal company on grounds purely technical, and not embraced in the contract, have receded from that position. THE CZAR'S DEATH. The recent death of the czar of Russia called forth the appropriate expressions of sorrow and sympathy on the part of our government with hi* bereaved family and the Russian people; as a further demonstration of respect and friendship our minister at St. Petersburg was directed to represent our government at the funeral ceremonies. RUSSIA nr BEHRING SEA. The sealing Interests of Russia In Behring sea are second only to our own. A modus vivendl has therefore been concluded with the imperial government restrictive of poaching on the Russian rockeries and of sealing In waters which were not comprehended in the protected area deiined in the Paris award. THE SZETA CASE. The president briefly reviews the case of the Salvadorean refugees, Glen. Eseta and comSnions, with the action of this government In e premises. SPANISH INJUSTICE. Attention Is called to the exorbitant and unjust penalties indicted by the Spanish authorities in Cuba against American vessels and their cargoes on the most trivial pretexts. The Mora indemnity has not yet been paid and there seems to be no immediate prospect of collecting It. TURKT AND 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 this relation have arisen. While this government acquiesces in the asserted right of expulsion it will not consent that Armenians may be imprisoned or otherwise punished for no other reason than having acquired, without imperial consent, American citizenship. Three of the assailants of Miss Melton, an American teacher in Mosul, have been convicted by the Ottoman courts, and I am advised that an appeal against the acquittal of the remaining live has been taken by the Tu rkish prosecuting officer.

^ The National Finance*. THE TEAR’S INCOME AND EXPENDITURES. The secretary vt the treasury reports that the receipts of the government from all sources of revenue during the fiscal year ending June 30 184*4, amounted to S372.803.498.29. and its expenditures to $442,005,758.87, leaving a deficit of $09,803,200.58. There was a decrease of $15,952,674.06 in the ordinary expenses of the government as cornstared with the fiscal year 1893. There was collected from customs $131,818,530.62, and from internal revenue $147,108,479.70. The balance of the income for the year, amounting to $93,815,517.97, was derived from the sales of lands and other sources. CUSTOMS AND INTERNAL REVENUE. The value of our total duttable imports amounted to $275,199,086, being $146,657,625 less than during the preceding year, and the importations f ree of duty amounted to $379,795,530, being $64,748,676 less than during the preceding year. The receipts from customs were $73,5«6,486.11 less, and from internal revenue $13,836,539.97 less than in 1893. The total tax collected from distilled spirits was $85,259,250.25; on manufactured tobacco $28,617,898.62, and on fermented liquors $31,414,788.04. THE TEAR'S EXPORTS. Our exports of merchandise, domestio and foreign, amounted during the year to $892,140,572, being an increase over the preceding year of $44,495,378. the movement or gold and silver. The total amount of gold exported during the fiscal year was $70,898,061, as against $108,680,444 during the fiscal year 1893. The amount imported was $72,449,119, against $21,174,381 during the previous year. The imports of silver were $13,286,552, aud the exports were $50,451,265. SUGAR BOUNTY PAID. The total bounty paid upon the production of sugar in the United States for the fiscal year was $12,100,208.89, being an Increase of $3,725,078.01 over the payments made during the preceding year. The amount of bounty paid from July 1, 1894, to August 28, 1894, the time when further payments ceased by operation of law, was $966,185.84. The total expenses incurred in the payment of the bounty upon sugar during the bsoal year was $130,140.85. AN ESTIMATED DEFICIT. It is estimated that upon the basis of the present revenue laws the receipts of the governmenF during the ourrent flsoal year ending June 30,1895, will be $424,4 '7,748.44, and its expenditures $444,427,748.44, resulting in a deficit of $20,000,000, THE NATION’S STOCK OF MONET. The first day of November, 1894, the total stock of money of all kinds in the country was $2,240,773,888, as against $3,204,651,000 on the first day of November, 1893, and the money of all kinds in circulation, or not included in the treasury holdings, was $1,672,093,422. or $24.27 per capita upon an estimated population of 68,837,000. At the same date there was held in the treasury gold bullion amounting to $44,615,107.55 and silver bullion which was purchased at a cost of $127,779,9>8. SILVER BULLION. The purchase of silver bullion under the act of July 14,1890, ceased on the first day of November, 1893, and up to that time there had been purchased during the fiscal year 11.717,658.78 fine ounces at a cost of $8,715,521.32, an average cost of $0.7313 per fine ounce. The total amount of silver purchased from the time that law took efleot until the repeal of its purchasing clause on the date last mentioned was 168,674,682.53 fine ounces, which cost $155,931,002.26,the average prioe per fine ounce being $0.9244. COINAGE OF THE MONET MBTAL^. The total amount of standard silver dollars coined at the mints of the United States since the passage of the act of February 28, 1878, Is $421,776,408,of which $378,166,798 were coined under the provisions of that aot; $38,531,143 under the provisions of the aot of July 14, 1890, and $5,ore,472 under the act providing for the ooinage of trade dollar bullion. The total coinage of all metals at our mints during the last fiscal year consisted of 63,485,220 pieoes valued at $106,216,730.06, of whloh there was $99,474,012.50 in gold coined; $758 in standard silver dollars; $6,024,140.80 in subsidiary silver coin, and $716;919.26 in minor coin. PRODUCTION OT PRECIOUS METALS. During the calendar year 1893 the production of preoious metals in the United States was estimated at 1,739,323 fine ounces of gold of the commercial and coinage value of $35,955,000 and 00,000,000 fine ounces of silver of the bullion or market value of $46,800,000 and of the ooinage value of $77,576,000. It is estimated that on the first day of July, 1894, the stock of metallio money In the United - tates. consisting of coin and bullion, amounted to $1,251,640,958,of which $627,923,201 was gold and $624,347,758 was silver. NATIONAL BANKS. Fifty national banks were organized during the year ending October 31, 1894, with a capital of $5,285,000; and seventy-nine, with a capital of $10,475,000 went Into voluntary liquidation. Twenty-one banks, with a capital of $2,770,000 were placed in the hands of receivers. The total number of national banks in exlstenee on the 31st day of October last was 3,756, being forty lessrthan on the 31st day of October, 1893. The oapital stock paid in was $672,671,365, being $9,678,491 less than at the same time In the the previous year, and the surplus and undivided profits, less the expenses and taxes paid, amounted to $344,121,082.10, which was $16,089,780 less than on Ootober 31,1893. The circulation was docreased $1,74’ ,563. The obligations of the banks to each other were increased $117,260,334, and the Individual deposits were $277,294,489 less than at the corresponding date in the previous year. Loans aud discounts were $1612106,923 more than at the same time the previous year, and checks and other cash items were $90,349,963 more. The total resources of the banks at the date mentioned amounted to $3,473,922,055, as against $3,106,563,284.36 in 1893.

xne war department. STRENGTH OF THB ARMY. From the report of the secretary of war it appears that the strength of the army on September 9b. 1894, was 2,135 officers and 25.TG5 enlisted men. Although this is apparently a very slight decrease compared with the previous year, the actual, effective force has been increased to tho equivalent of-nearly two regiments, through the reorganisation of the system of recruiting and the consequent release to regimental duty of the large force of men hitherto serving at the recruiting departments. The abolition of these departments, it is predicted, will furthermore effect an annual reduction approximating 1250,000 in the direct expenditures, besides promoting generally the health, morals and discipline of the troops. The execution of the polI icy of concentrating the army at important centers of population and transportation, foreshadowed in the last annual report of the secretary, has resulted in the abandonment of fifteen of the smaller pogts, which was effected under a plan which assembles organisations of the same regiments hitherto widely separated. This renders our small forces more readily effective for any service whloh they may be oalled ypon to perform, increases the extent of tho territory under protection without diminishing the security heretofore afforded to any locality, improves the discipline, training and esprit de

corps of tbs army, besides considerably do* creasing the cost of its maintenance. »,?_ IXUGtSCT CAULS OK TBK ABUT. It is hardly necessary to recall the fact that in obedience to the commands of the constitution and the laws, and for the purpose of protecting the property of the United States,aiding of the poreess of the federal courts and removing lawless obstructions to the performance by the government of its legitimate functions, it became necessary, in various localities, during the«year, to employ a considerable portion of the regular troops. The duty was discharged promptly, courageously and with marked discretion by the officers and men, and the most gratifying proof was thus afforded that the army deserves that complete confidence in its efficiency and discipline which the country has at all times manifested. The year has been free from disturbances by Indians, and the chances of further depredations on their part are constantly growing more and more remote and improbable. « THK NATIONAL GUABp. The total enrollment of the militia of the several states is 117,533 offleerr and enlisted men, an increase of 5,313 over the number reported at the close of the previous year. The reports of militia inspections by regular army officers show a marked Increase in interest and efficiency among the state organisations. and I strongly recommend a continuance of the policy of affording every practical encouragement possible to this important auxiliary of our military establishment.

A IIAvvnfl BuiUAi lUlit In recognition of the long and distinguished military services and faithful discharge of delicate and responsible civlbduties by Maj.-Gen John M. Schofield, now the general commanding the army, it is suggested to congress that the temporary revival of the grade of lieuten-ant-general in his behalf would be a lust and gracious act, and would permit his -retirement, now near at hand, with rank befitting hi* merits. Department of Justice. ATTORNEY-GENERAL'8 REPORT. The report of the attorney-general notes the gratifying progress made by the supreme court in overcoming the arroars of its business and in reaching a condition in which it will be able to dispose of cases as they arise without any unreasonable delay. This result is. of course, very largely due to the successful working of the plan inaugurating circuit courts of appeals. In respect to these tribunals the suggestion is made, in quarters entitled to the highest consideration, that an additional circuit judge for each circuit would greatly strengthen these courts and the confidence reposed in their adjudications, and that such an addition would not create a greater force of judges than the increasing business of such oourts requires. 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 at this time, therefore, need only be named I refer to the abolition of the fee system as a measure of compensation to federal officers; the enlargement.of the powers of United States commissioners at least in the territories; the allowance of writs of error in criminal cases on behalf of the Uhited States and the establishment of degrees in the crime of murder. UNITED STATES PRISONS. Eight years ago in my annual message I urged upon the congress as strongly as I could the looation and construction of two prisons for tho confinement of United States prisoners. A similar recommendation has been made from time to timtf since, and a few years ago a la.w was passed providing for the selection of sites for three such institutions. No appropriation has, however, been made to carry the act into effect and the old and discreditable condition still exists. The Poet Office Department. REVENUE AND OUTDAT. The report of the postmaster-general presents a comprehensive statement of the operations of the post office department for the last fiscal year. The receipts of the department during the year amounted to $75,090,479.01 and the expenditures to 884,224,414.15. The transactions of the postal service indicate with barometrto certainty the fluctuations of the business of the country. Inasmuch, therefore, as business complications continued to exist throughout the last year to an unforseen 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 $8,000,000, should be exceeded by nearly $1,250,000. The ascertained revenues of the last year, which were the basis of calculatiefa 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 are so favorable that he confidently predicts an increase of at least 8 per cent, in the revenues of the curren t year over those of the last year. INCREASED EXPENDITURES. The expenditures increase steadily and necessarily with the growth and needs of the country, so that that deficiency is greater or less in any year depending upon the volume of receipts. Tne postmaster-general states that this deficiency is unnecessary, and might be obviated at once if the law regulating rates upon mail matter of the second class was modified. The rate received for the transmission of this sec-ond-class matter is one cent per pound, while tho cost of such transmission to the government is eight times that amount In the general terms of the law this rate covers newspapers and periodicals. The extensions of the meaning of these terms from time to time have admitted to the privileges intended for legitimate newspapers and periodicals a surprising range of publications and created abuses the cost of which amount in the aggregate to the total deficiency of the post office department.

DISTRIBUTION OF THE MAIDS. The total number of post offices in the United States on the 30th day of June. 1894. was 09,805, an increase of 1,403 over the preceding year. Of these 3,428 were presidential, an lnorease in that olass of 68 over the preceding year. Six hundred and ten cities and towns are provided with free delivery. Ninety-three other cities and towns entitled to this service under the law have not been accorded it on account of insufficient funds. The expense of free delivery for the current fiscal year will be more than $12,300,000, and under existing legislation this item of expenditure is subject to constant increase. The estimated cost of rural free delivery generally is so very large that tt ought not to be considered in the present condition of affairs. MONET ORDER OFFICES. During the year 830 additional domestic money order offices were established. The total number of these offices at the dose of the year was 19,264. There were 14,301,041 money orders issued during the year, being an increase over the preceding year of 904.806. The value of these orders amounted to $138,793,579.49, an increase of $11,217,145.84. There were also Issued during the year postal notes amounting to $12,649,094.95. During the year 218 international money order offices were added to those already established, making a total of 2,625 such offices in operation J«ne 30, 1894. The number of international money orders issued during the year was 917,888, a decrease in number of 138,176, and their value was $13,792,455.31, a decrease in amount of $2,849,382.05. The number of orders paid was 361,180 an increase over the proceeding year of 60.263, and their value was $6,563,493.78, an increase of $1,285,118.05. From the foregoing statements it appears that the total issue of money orders and postal notes for the year amounted to $165,235,129.35. SPECIAL DELIVERY. The number of letters and paokages mailed during the year for speoial delivery was 83,436,970. The special delivery stamps used upon these letters and paokages amounted to $343,657. The messengers’ fees paid for their delivery amounted to $201,209.70. leaving a balance in favor of the government of $82,487.30. THE POSTAL UNION. The report also contains a valuable contribution to the history of the universal postal union, an arrangement watch amounts practically to the establishment of one postal system for the entire civilized world. Speoial attention is directed to this subject at this time, in view of the fact that the next congress of the union will meet in Washington in 1897, and it is hoped that tfinely action will be taken in the direction of perfecting preparations for that event. Jlw Navy Department. PROGRESS IN CONSTRUCTION. Attention is oalled to the report of the secretary of the navy, which shows very gratifying progress in the construction of ships for our new navy. All the vessels now building, including the three torpedo boats authorized at at the last session of congress, and except the first-class battleship owa, will probably be completed during the coming fiscal vear. The estimates for the increase of the navy for the year ending June 30. 1896, are large, but they include practically the entire sum necessary to complete and equip all the new ships not now in commission, so th«S unless new ships are authorized the appropriations for the naval servioe for the flsoal year ending June 30,1897, should fall below the estimates for the coming year by at least $12,000,000. A PLEA FOR MORE BATTLESHIPS The ■secretary presents, with muoh earnestness, a plea for.the authorization of three additional battleships an t ten or twelve torpedo boats. While the ucaimored vessels heretofore authorised, including those now near tag

completion, will constitute a fleet which tt is believed is sufficient for ordinary cruising purposes in time of peace, we have now completed nod in process of construction but tour firstclass battleships and but few torpedo boats. If we are to have a navy for warlike operations, offensive and defensive. we certainly ought to increase both the number of battleships and torpedo boats. I recommend that provision be made for the construction of additional battle-ships and torpedo boats. ORDNAHCB AND ORDNANCE MATERIAL. The secretary recommends the manufacture not only of a reserve supply of ordnance and ordnanoe material for ships of the navy, but also a supply for the auxiliary fleet. Quns and their appurtenances should be provided and kept on hand for both these purposes. We have not to-day a single cun that could be put upon the ships Paris or New York of the International Navigation Co., or any other ship of our reserve navy. The manufacture of guns at the Washington navy yard is proceeding satisfactorily, and none or our new ships will be required to wait for their guns or ordnance equipment. AW IM PC I IT A NT ORDER. An important order has been issued by the secretary of the navy co-ordinating the duties of the several bureaus concerned in the construction of ships. This order, it is believed, will secure to a greater extent than has heretofore been possible the harmonious action of these several bureaus, and make the attainment of the best results more certain. ACTIVE WORK FOR THE NAVT. During the past fiscal year there has been an unusual and pressing demand in many quarters of the world for the presence of vessels to guard American interests. In January last, during the Brazilian insurrection, a large fleet was concentrated in the harbor of Rio de Janeiro. The vigorous action of Rear-Admiral Benham in protecting the personal and commercial rights of our citizens during the disturbed conditions afforded results which will, it is believed. havo a far-reaching and wholesome influence whenever in like oircumstanoes it may become necessary for our naval oommanders to interfere on behalf of our people In foreign parts. The war now In progress between China and Japan has rendered it necessary or expedient to dispatch eight vessels to those waters. THE COAST SURVEY. Both the secretary of the navy and the secretary of the treasury recommend the transfer of the work of the coast survey proper to the navy department. I heartily concur In this recommendation. Excluding Alaska and a very small area besides. all the work of mapping and charting our coasts has been completed. The hydrographic work which must bo done over and over again, by reason Of the shifting and varying depths of water, consequent upon the action of streams and tides, has heretofore been done under the direction of naval officers in subordination to the superintendent of the coast survey. There seems to be no good reason why the navy should not have entire charge hereafter of such work. PERSONNEL AND PROBATIONS. I feel it my Imperative duty to call attention to the recommendation of the secretary in regard to the personnel of the line of the navy, The stagnation of promotion in this the vital, branch of the service Is so great m to seriously impair its efficiency. I consider it of the utmost Importance that the young and middleaged officers should before the eve of retirement be permitted to reach a grade entitling them to aotive and important duty.

The Interior Department. RECOMMENDATIONS COMMENDED. The report of the secretary of the interior exhibits the situation of the numerous and interesting branches of the public service connected with his department. I commend this report and the valuable recommendations of the secretary to the careful attention of the oongress. The public land disposed of during the yeat amounted to 10,406,100.73’ aores, including 28,878.06 of Indian lands. It is estimated that the public domain still remaining amounts to a little more than 600,000,000 acres, excluding, however, about 360,000,000 acres in Alaska, as well as military reservations and railroad and other selections of lands yet unadjudioated. RECEIPTS AND PATENTS. The total cash receipts from sale of lands amounted to 82,074,285.79, including $91,981.08 received for Indian lands. Thirty-five thousand patents were issued for agricultural lands and 8,100 patents were issued to Indians on allotments of their holdings in severalty, the land so allotted being unalienable by the Indian allottees for a period of thirty-five years after patent There were certified and patented on account of railroad and wagon road grants during the, year 865,556.45 acres of land and at the close of the year 29,000,000 acres were embraeed in the list of selections made by railroad and wagon road companies and awaited settlement. The selections of swamp , lands and that taken as indemnity therefore since the passage of the act providing for the same in 1849 amount to nearly or quite 80.500,000 acres, of which 58,000,000 have been patented to states. Though the condition of the Indians shows 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 to be unable oi disinclined to folktw agricultural pursuits or to otherwise beneficially manage their land. This is especially true of the Cheyennes and Arapahoes, who, as it appears by reports of their agents, have in many instances never been located upon their allotments, and in some cases do not even know where their allotments are. Their condition has deteriorated. It is evident that the evil consequences of illadvised allotment are intensified in cases where the false step can not be retraced on account of the purchase by the government of reservation lands remaining after allotments are made, and the disposition of such remaining lands to settlers or purchasers from the government I am convinced that the proper solution of the Indian problem and the success of every step taken in that direction depends, to a very large extent, upon the intelligence and honesty of the reservation agents, and the interest they have in their work. ARMT OFFICERS AS INDIAN AGENTS. The indications are that the detail of army officers as Indian agents will result in improved management on the reservations whenever allotments are made, and any Indian on the reservation has previously settled upon a lot and cultivated it, or shown a disposition to improve it in any way .such lot should certainly be alloted to him, and this should be made plainly obligatory by statute. In the light of experience, and considering the uncertainty of the Indian situation and its exigencies in the future, I am not only disposed to be very cautious in making allotments, but I incline to agree with the secretary of the interior in the opinion that when allotments are made the balance of reservation land remaining after allotment, instead of being bought by the gov-% ernment from the Indians, and opened for settlement with such scandals and unfair practices as seem unavoidable, should remain for a time, at least, as common land, or be sold by the government on behalf of the Indians in an orderly way and at fixed prices to be determined by its location and desirability, and that the proceeds, less expenses, should be held in trust for the benefit of the Indian THE PUBLIC DOMAIN. INDIAN ALLOTMENT. proprietors. INDIAN SCHOOLS.

The Intelligent Indian school management of the past year has been followed by gratifying results. Efforts have been made to advance the work In a sound and practioal manner. Five institutes of Indian teachers have been held during the year, and hare proved very beneficial. THE PENSION ROLL At the close of the last fiscal year, on the 30th day of June, 1894. there were 909.544 poisons on our pension rolls, being a net increase of 3,532 over the number reported at the end of the previous year. These pensioners may be classified as follows: Soldiers and sailors, survivors of all wars, 753,908: widows and relatives of deceased soldiers. 215.16E2: array nurses in the war of the rebellion, 414. Of these pensioners 32,039 are surviving soldiers of Indian and other wurs prior to the late civil war and the widows or relatives of such soldiers. The remainder numbering 937,505 are receiving pensions on aeoount of the war of the rebellion, and of these 469,344 are on the rolls under the authority of the act of June £7, 1890, sometimes called the dependent pension law. The total amount expended for pensions during the year was 8139,804,461.05, leaving an unexpened balance from the sum appropriated of 205.712.65. The sum necessary to meet pension expenditures for the year ending June 30,1896, is estimated at $140,000,000. The commissioner of pensions is of the opinion that the year 1895, being the thirtieth after the cioso of the war of the rebellion, must, according to sensible human calculation, see the highest limit of the pension roll, and that after that year it must begin to decline. DECREASE IN CLAIMS PENDING. The claims pending in the bureau have decreased more than 90,000 during the year. A large proportion of the new claims filed are for increase of pension by ' *e now on the rolls. The number of ec;\ v^s issued was 80,218. The names dropped .-Jin the roils for all oauses during the y»ar numbered 37.951. Among our pensioners are nine widows and thre e daughters of soldiers of the revolution and forty-five survivors of the war of 1813. PENSION PRADOS EXPOSED. The barefaced and extensive pension frauds exposed under the direction of the courageous ana generous veteran soldier uaw at the head

of the bureau leaves no room for the claim that no purgation of our pension rolls was needed, or that continued vigilance aud prompt notion are not necessary to the same end.

Department of Agrlealtaro. ▲ RCV1KW or ITS OPERATION* • The secretary of agriculture in his report reviews the operations of his department for the last fiscal year, and makes recommendations for the further extension of its usefulness. He reports a savins in expenditures during the year of $600,000. which is covered back into the treasury. This sum is £3 per cent of the entire appropriation. A special study has been made of the demand for American farm products in all foreign markets, especially Great Britain. WHAT WE SENT TO ENGLAND. That country received from the United States during the nine months ending September 30, ISM. 305.910 live beef cattle valued atgjfl.500,000 as against 183,611 cattle valued at $16,634,000 during tne same period for 1893. During the first six months of 18M the United Kingdom took also 113.ooo.ooo pounds of dressed beef from the United States,valued at nearly $10,000,000. The report shows that during the nine months immediately preceding September 30, 18M, the United States exported to Great Britain 222,678,000 pounds of pork; of apples 1,900,000 bushels, valued at $3.80>,0u0, and of horses 2,811, at an average value of $139 per head. There was a falling off in American wheat exports of 13,500,000 bushels, and the secretary is inclined to believe that wheat nay not, in the future, be the staple export cereal product of our country, but that corn will continue to advance in importance as an export on account of the new uses to which it is constantly being appropriated. The exports of agricultural products from the United States for the fiscal year ending June 30,18M, amounted to $628,363,088. being 72.28 per cent, of American exports of every description, and the United Kingdom of Great Britain took more than 54 per cent, of all farm products finding foreign markets. , TBS WEATHER BCrjtAU.,. . The amount appropriated for the weather bureau was $951,100. Of that sum $138,500. or 14 per cent., has been saved, and is returned to the treasury. As illustrating the usefulness of this service. It may be . here stated that the warnings, which were very generally given, of two tropical storms occurring in September and October of the present year resulted in demining safely in port 2.305 vessels# valued at $36,283,913, laden with cargoes of probably still greater value. What is much more important and gratifying, many human lives on tbese ships were also undoubtedly saved. BUREAU-OF ANIMAL INDUSTRY, The appropriation to the bureau of animal Industry was $850,000 and the expenditures for the year only $495,429.24, thus leaving uncxpened $354,570.76. The inspection of beef animals for export and inter state trade has been continued, and 12,944,066 bead were inspected during the year, at a cost of 13f cents per head against 44* cents for 1893. The amount of perk microscopically examined was 35.437,937 pounds against 20.677,410 pounds in the preceding year. The cost of this inspection has been diminished from 8^ cents per head in 1893 to 654 cents in 1894. The secretary of agriculture recommends that the law providing for the mloroscopioal •inspection of export and interstate meat be so amended as to compel owners of the meat inspected to pay the cost of such inspection, and 1 call attention to the arguments presented ip his report in support of this recommendation. The live beef cattle exported and tagged during the year numbered 363,535. This Is an increase of 69,533 head over the previous year. » SANITARY INSPECTION OF CATTLE. The sanitary inspection of cattle shipped to Europe has cost an average of 1044 cents for each animal, and the cost of inspecting southern cattle and the disinfection of cars and stock yards averages 3.7 cents por animal. The scientific inquiries of the bureau of animal industry have progressed steadily during the year. Much tuberclin. and mallein have been furnished to state authorities for use in the agricultural colleges and experiment stations for the treatment of tuberculosis and glanders. PROMISCUOUS DISTRIBUTION OF DEPARTMENT REPORTS. The recommendation contained in the report of the secretary for 1893, that the vicious system of promiscuous free distribution of its departmental documents be abandoned, Is again urged. These publications may well be furnished without cost to public libraries, educational institutions and the officers and libraries of states and of the federal government, but from all individuals applying ror them a price covering the oost of the documfent askea for should be required. Thus the publications and documents would be secured by [those who really desire them for proper purposes. GRATUITOUS DISTRIBUTION Of SEJEDB. The secretary also again recommends that the gratuitous distribution of seeds cease, and that no money be appropriated for that purpose, except to experimental stations. He reiterates the reasons given in his report for 1893 discontinuing this unjustifiable gratuity, and I fully concur in the conclusions which he has reached. THE CIVIL SERVICE COMMISSION. Numerous additional o tile as and places have lately been brought within civil-service rules and regulations, and some others will probably soon be included. The report of the commissioners will be submitted to congress, and I invite careful attention to the recommendations it contains. A NATIONAL BOARD OF HEALTH. I earnestly recommend the inauguration of a national board of health or similar national Instrumentality, believing the same to be a needed precaution against oontagious diseases and in the interest of the safety and health of our people. THE STRIKE COMMISSION. By virtue of a statute of the United States passed in 1888,1 appointed in July last Hon. John D. Kernan, of the state of New York, and Hon. Nicholas E. Worthington, of the state of Illinois, to form with Hon. Carroll D. Wright, commissioner of labor, who was designated by said statute, a commission for the purpose of making careful inquiry into the causes of the controversies between certain railroads and their employes, which had resulted in an extensive and destructive strike, accompanied by muoh violence and dangerous disturbance, with considerable loss of life and great destruction of property. The report of the commissioners has been submitted to me, and will be transmitted to the congress with the evidence taken upon their investigation. Their nvork has been well done, and their standing and Intelligence give assurance that the report and suggestions they make are worthy of careful consideration. The T arlff Act. The tariff act passed at the 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 am still very decidedly in favor of putting coal and iron upon the free list. So far as the sugar schedule is concerned, I would be glad, under existing aggravations, to see every particle of differential duty in favor of refined sugar stricken out of our tariff law. If, with vll the favor now accorded the sugar refining interest in our tariff laws it still languishes to the extent of closed refineries 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 the recommendation I have made in another portion of this communication that the additional duty of one-tenth of a cent per pound laid upon sugar imported from countries paying a bounty on its export, be abrogated.. It seems to me that exceedingly important considerations point to the propriety of this amendment. With the advent of a ,new tariff policy not only contemplated to relieve the consumers of our land in the cost ot their daily life, but to invite a better development of Ainerioan thrift and create for us ! closer and more profitable commercial relations with the rest of the world, it follows . as a logical and imperative necessity that we should at onoe remove the chief if not the only obstacle which has so long prevented our participation in THE FOREIGN CARRYING TRADE, of the sea. A tariff built upon the theory that it is well to check imports, and that a home market should bound the industry and efTort of American producers, was fitly supplemented by a refusal to allow American registry to vessels built abroad, though owned and navigated by our people, thus exhibiting a willingness to abandon all oontest for the advantages of American trans-oceanie carriage. Our new tariff policy built upon the theory that it Is well to encourage such importations as our people heed, and that our products anu manufactures snould find markets in every part of the habitable globe, is consistently supplemented by the greatest possible liberty to our citizens In the ownership and navigation of ships In which our products and manufactures may be transported. The millions now paid to foreigners for carrying American passengers and products across the sea should be turned into American hands; ship-building, which has been protected to strangulation, should be revived by the prospects of profitable employment for ships when built, and THS AMERICAN SAILOR should he resurrected and again take his place, a sturdy and industrious citizen In time of peace and a patriotic and safe defender of Amerioan interests in the day 6f confiiet. The ancient provision of our law denying Amerioan registry to shins built abroad and owned by

Americans appears lu the Ilfht of present ««•> ditlons not only to be a failure, fox food a* every point, but to be nearer a relic of U:i: yar» ism than any thing that exists under the plr* mission of a statute of the United Staten. 1 earnestly recommend Its prompt repeal.

An Exigency. TBS RECENT SALS OF BONDS. During the last month the gold reserved la Se treasury for the purpose of redeeming the >tes of the government circulating as money in the hands of the people became so reduced, and its further depletion in the near future seemed so certain, that in the exercise ot proper care for the public welfare it became necessary to replenish this reserve and thus maintain popular faith in the ability and determination of the government to meet, as agreed, its pecuniary obligations. It would have been well it in this emergency authority had existed to issue the bonds of the government, bearing a low rate of interest and maturing within a special period. But the .congress having tailed to confer such authority, resort was necessarily had to the resumption act of 1875, and pursuant to its provisions, bonds were issued drawing interest at the rate of 5 per cent, per annum and maturing ten years after their issuing, that being the shortest time authorised by the act. I am glad to say, however, that on the sale ot these bonds the premiums received operated to reduce the rate of interest to be paid by the government to less than 3 per cent. NOTHING COULD BE WORSE, or further removed from sensible finance than tbe relations existing between the currency the government has istued. the gold held tor its redemption, and tho means which must be resorted to for the purpose of replenishing such redemption fund when Impaired. Even it the claims upon this fund were confined to the obligations origiually intended, and if the redemption of these obligations meant their cancellation, the fund would be very small. But these obligations when received and redeemed in gold are not canceled, but are reissued and may do duty many times by wav of drawing gold from tbe treasury. Thus we have an endless chain in operation constantly DEPLETING TBE TREASURY'S GOLD and never near a final rest. As if this was not bad enough, we have by a statutory declaration that it is tbe policy of the government to maintain the parity between gold and silver aided the force and momentum ot this exhausting process, and added largely to the currency obligations claiming this peculiar gold redemption. Our small gold reserve Is thus subject to drain from overy side. Tbe demands that increase our danger also increase tbe necessity of protecting this reserve against depletion, ana it is most unsatisfactory to know that the protection afforded is only a temporary palliation. It is perfectly and palpably plain that THE ONLT WAT UNDER PRESENT CONDITIONS by which this reserve, when dangerously depleted. can be replenished is through tha Issue and sale of the bonds of the government for gold: and yet congress has not only thus far declined to authorise the issue of bends best suited to such a purpose, but there' seems a disposition in some quarters So deny both the necessity and power for the issue of bonds ut all. I cannot for a moment believe that any of our citizens are deliberately willing tbat their government should default 1q its pecuniary obligations, or that its financial operations should he reduced to a silver basis. At any rate. I should not feel that my duty was done if I omitted any effort I could make , TO AVERT SUCH A CALAMITY. As long, therefore, as nd provision is made for the final redemption or tbe putting aside of tbe currency obligation now used to repeatedly and constantly draw from tbe government its gold, and as 1 ong as no better authoifty for bond issues is allowed than at present exists, such authority will be utilized whenever and as often as is becomes necessary to maintain a sufficient gold reserve, and in abundant time to save the credit of our country and make good the financial declarations of our government. BANKS AND CURRKNCT. - Questions relating to our banks and currency are closely connected with the subject just referred to and they also present some unsatisfactory features. Prominent among them are tbe lack of elasticity in our currency circulation and its frequent concentration in financial centers when it is most needed in other parts of the country. The absolute divorcement of tha government from the business of banking is tbe ideal relationship of the government to the circulation of the currency of the oountry. This condition can not be immediately reached: hat as a step in that direction, and as a means of securing a more elastio currency and obviating other objections to tbe present arragement of bank circulation, tbe secretary of the treasury presents in his report a scheme MODIFYING PRESENT BANKING LAWS, and providing for the issue of circulating notes by state banks free from taxation, under certain limitations. Tbe secretary explains his plans so plainly, and 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 with an unqualified indorsement of the secretary’s proposed changes in the law, and a brief and imperfect statement of their prominent features. itisproposed to repeal all laws providing for the deposit of United States fconas as security for circulation: to permit national bank* to issue circulating notes not exceeding in amount 75 per cent, of their paid-up ahd unimpaired capital, provided they deposit with the government as a guarantee fund in United States legal tender notes, including treasury notes of li®4, a sum equal in amount to 30 per cent, of, tfce notes they desire to issue, this deposit to be maintained at all times; but whenevefr any bank retires any part of its circulation a proportional part of its guarantee fund shall be returned to it to permit the secretary of the treasury to prepare and keep on hand ready for Issue ia case an increase in circulation is desired blank national bank notes for each bank having circulation, and to repeal the provisions of the present law imposing limitations or restrictions upon banks desiring to reduce or increasejtheir circulation, thus permitting such increase or .eduction within the limit of 75 per cent, of capital to ho quickly made as emergencies arise. IN ADDITION TO THE GUARANTEE required, it is proposed to provide a safety fund for the immediate redemption of the circulating notes of failed banks by Imposing a small annual tax, say one ball of 1 per cent, upon the average circulation ot each bank until the fund amounts to 5 per cent, of the total circulation outstanding, when a bank fails its guarantee fund is to be paid into this safety fund and its notes are to be redeemed in the first instance from such safety fund thus " augmented; any impairment of such fund .caused thereby to be made good from the immediately-availa-ble cash assets of said bank, and if these should be insufficient such impairment to be made good by pro rata assessment among the other banks, their contributions constituting a first lien upon the assets of the failed bank ia favor of the contributing banks.

- AS A FURTHER SECURITY it is contemplated that the existing provision fixing the individual liabilities of stockholders is to be retained and the bank’s indebtedness on account of its circulating notes is to be made a first lieu on all its assets, For the purpose of meeting the expenses of printing notes, official supervisi on.caneellation and other like charges, there shall be imposed a tax of say one-half of 1 per cent, per annum upon the average amount of notes in circulation. It is further provided that there shall be no national bank note Issued of a less denomination than *10. That each national bank, except In case of a failed bank, shall redeem or retire its notes in the first instance at its own office or at agencies, to be designated by it: that no fixed reserve need be maintained on a count of deposits. Another very important feature of the plan is the exemption of state banka from TAXATION BY THE UNITED STATES in cases where it is shown to the satisfaction of the secretary of the treasury and comptroller of' the eurreney bv banks claiming such exemption that they have not had outstanding their circulating notes exceeding 75 per cent, of their paid up and unimpaired capital; that their stockholders are individually liable for the redemption of their circulating notes to the full extent of their ownership of stock; that the liability of said banks upon their circulating notes constitutes, under their state law, a first lien upon their assets: that such banks have kept and maintained a guarantee fund in United States legal tender notes, including treasury notes of 18S0, equal to 30 per cent, of their outstanding circulating notes, and such banks have promptly redeamed their circulating notes when presented their principal or branch offices. IN CONCLUSION. It is quite likely that this scheme may be usefully-amended in some of its details, but 1 am satisfied it furnishes a basis for a very great improvement in our present banking ana currency system. I conclude this communion- ‘ tion fully appreciating that the responsibility for all legislation affecting the people of the United States rests upon their representatives in the congress, and assuring them that whether in »accordance with recommendations I have made or not, X shall be glad to co-operate in perieotlng any legislation that tends to the prosperity and welfare of our country. (.Signed] Gnonm Cle veland, Executive Mahaiou, December l>