People's Pilot, Volume 4, Number 25, Rensselaer, Jasper County, 7 December 1894 — HIS ANNUAL MESSAGE [ARTICLE]

HIS ANNUAL MESSAGE

President Cleveland Writes of; Topics of the Times. HIS RECOMSESDATIOSS TO CONGRESS. Favors a Redaction of the Duty on Rsur*?— Interesting Statistics from the Vartans Departments—Supports the Recent Issae of BondsWashington. Dec. 3. —The following Is a synopsis of President Cleveland’s annual message read at the opening’ of the second session of the Fifty-third congress: To the Congress of the United States: The assemblage within the nation's legislative hails of those charged with the duty of making laws for the benefit of a generous and free people Impressively suggosts the exacting obligation and inexorable responsibility involved In their task. At the threshold of such labor now to be undertaken by the congress of the United Stat-s and in the discharge of an executive duty enjoined by the corstitution I Submit this communication, containing a brief statement of the condition of our national affairs, and recommending such legislation as •eetnt to me necessary and expedient. Belgium’s Needless Restrictions. I have endeavored to impress upon the Belgian government the neodlessness and positive hannfulness of its restrictions upon the importation of certain of ouv food products, and Bare strongly urged that the rigid supervision and Inspection under our laws are amply sufficient, to prevent the exportation from this country of diseased cattle and unwholesome in eat. Our Course in Brazil. The termination of the civil war in Brazil has boon followed by the general prevalence of peace and order. It appearing at an early Stage of tho insurrection that its course would call for unusual watchfulness on tho part of this government, our naval force in the harbor Of Rio do 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. Reciprocity Treaty Abrogated. Although the government of Brazil was duly motlUcd that the commercial arrangement existing between the United States and lhat Country, based on the third section of the tariff set of 1891). was abrogated on August 28. 1894. by •the taking effect of the tariff law now in force, that government subsequently notified us of its intention to terminate such arrangement on the first day of January, 1895. in the exercise of the right 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 cubject. Chilian Claims. The commission organized under the convention which we had entered into with Chili for the settlement of tho outstanding claims of each government against the other, adjourned «t tho end of the period stipulated for its continuance, leaving undetermined a number of American cases which had been dulv presented. These claims are not barred and negotiations are in progress for their submission to a Bew tribunal. Now Treaty with China. On the 17th of March last a new treaty with China in further regulation of immigration was signed at Washington and on August 13 it received the sanction of tho eenato. Ratification on tho part of China and formal oxchanges are awaited to give effect to this mutually beneficial convention. Mediation Between China and •Japan. A gratifying recognition of the uniform Impartiality of this country towards all foreign states was manifested by the coincident request of the.Chine.se and Japanese governments that the agents of the United States •Should, within proper limits, afford protection ■to tho subjects of the other during the suspension of diplomatic relations duo to a state of War. The delicate office was accepted, and a misapprehension which gave riso to the belief that in uffording this kindly unofficial protection our agents would exercise tho same authority which the withdrawn agents of the belligerents has exercised was promptly corrected. Although the war between China and Japan endangers no policy of tho United States « deserves ouv gravest consideration, by reason of its disturbance of our growing commerce interests in the two countries. Germany Embargo on Our Beef.

Acting upon the reported discovery of Texas lever in cargoes of American cattle, the German prohibition against importations of livestock and fresh meals from this country lias been revived. It is hoped that Germany will •oon become convinced that the inhibition is •s needless as it is harmful to mutual interests. il'jivors Partial Repeal of Duty on Sugar. The German government has protested Against that provision of the customs tariff act which imposes a discriminating mity of onevtenth of a cent a pound on sugars coming from . countries paying an export bounty thereon. • claiming thu the exaction of such duty is in . contravention of articles five and nine of the *treaty of IS.B with Prussia. In the interests of the commerce of both • countries and to avoid even the accusation of i treaty violation. I recommend the repeal of so uuuch of the statute as imposes that duty. \ Rehrlug Sea Controversy. Early in the present year an agreement was reached with Great Britain concerning instructions to bo given to the naval commanders of the two governments in Behring sea and the contiguous north Pacific ocean for their guidtuico in the execution of the award of the Paris tribunal of arbitration and the enforcement of regulations therein prescribed, •for the protection of seal life in the waters mentioned. An understanding has also been reached for the payment by the United States •of $425 000. in full satisfaction of all claims which may be made by Great Britain for damages growing out of the controversy as to fur «eals in Behring sea or the seizure of British vessels engaged in taking seal in those waters. The award and findings of the Paris tribunal to a great extent determined the facts and principles upon which those claims should be adjusted, and they have been subjected by both governments to a thorough examination upon the principles as well as the facts which they involve. I am convinced that a settlement opon the terms mentioned would be an equitable and advantageous one, and I recommend that provision be made for the prompt payment of the stated sum. Thus far only France and Portugal have signified their willingness to adhere to the regulations established under *he award of the Paris tribunal of arbitration. Recognition of the Hawaiian Republic. Since communicating tbe voluminous corre*pondenee in regard to Hawaii and the action taken by 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 provisional arrangement which followed the •deposition of the queen has been announced, ■with evidence of its effective operation. The ■recognition usual in such cases has been accorded the new government. Relations with Mexico. ■Good will fostered by many interests in common has marked our relations with our nearest southern neighbor. Peace being restored along her northern frontier. Mexico has Asked the punishment of the late disturbers of tfeer tranquillity. There ought to be a new 'treaty of commerce and navigation with that •country to take the place of the one which terlminated thirteen yoars ago. The friendliness of ithe Intercourse between the two countries is Attested by the fact that during this long period the commerce of each has steadily increased under the rule of mutual consideration, being neither stimulated by conventional arrangements nor retarded by jealous rivalries cr selfish distrust. The Rio Grande, 'The problem of the storage and use of the ■waters of the Rio Grande for irrigation should be solved by appropriate concurrent action of the two interested countries. Rising in the ’Colorado heights, the stream flows intermittently. yielding little water during the dry mouths to the irrigating channels already con--ctructed along its course. This soarcity is often severely felt in the regions where the river forms a common boundary. Moreover the' frequent changes in its course through level sands often raise embarrassing questions -of territorial jurisdiction. The Hluoflelds Incident. Prominent among the questions of the year was the IJlueilelds incident, in what Is known .as the Mosquito Indian strip, bordering on the Atlantic ocean and within the jurisdiction ol Nicaragua. By the treaty of 1800 between •Gieui Britain und Nicaragua the former gov- • eminent expressly recognized the sovereignty -oi the latter over the str.p, and a limited form ■at self-government was guaranteed to the Mosquito Indians, to ue exorcised according t> tUeir customs, for themselves and other ’titrciierK within its limits The so-called native govcrwßi'm. which grew to be largely ; mch of (or in my yearn Nn»k£* « f< municipal

government. Early In the past effort years 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 residents were to participate. Failure was followed by an Insurrection which for a time obstructed Nicaraguan rule, expelling her officers and restoring the old organization. This in turn gave place to the existing local government establishing and upheld by Nicaragua. Threatened Disturbances In Pern. Peru, I regret to say, shows symptoms of domestic disturbance due probably to the slowness of her recuperation from the distresses of the war of 1881. Weakened in resources, her difficulties In facing international obligations invite our kindly sympathy and justify our forbearance in pressing long pending claims. I have felt constrained to testify this sympathy in connection with certain demands urgentlyjtreferred by othe r powers. Relations wltfT Russia. 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 cf poaching on the Russian rookeries and of sealing in waters which were not comprehended in the protected area defined in the Paris award. Occasion has been found to urge upon the Russian government equality of treatment for our great life insurance companies whose operations have been extended throughout Europe. Admitting, as we do, foreign corporations to transact business in the United States, we naturally expect no less tolerance for our own in the umple fields of competition abroad. Salvadorians Sheltered. The government of Salvador having been overthrown by an abrupt popular outbreak, certain of its military and civil officers, while hotly pursued by Infuriated Insurgents, sought i refuge on board the United States warship ! Bennington, then lying in a Salvadorian I port. Although the practice of asylum |is not favored by this government, yet. in view of the imminent peril which threat--1 ened the fugitives, and solely from considerations of humanity, they were afforded shelter by our naval commander, and when afterwards demanded under our treaty of extradition with Salvador for trial on charges of murder, arson ! and robbery. I directed that such of them as had not voluntarily left the ship be conveyed to one of our nearest ports, where a hearing could be had before a judicial officer, in compliance with the terms of the treaty. On their arrival at San Francisco such a proceeding was promptly instituted before the United States district judge, who held that the acts constituting the alleged offenses were political, and discharged all the accused except one Clenfuegos. who was held for an attempt to murder. Thereupon I was constrained to direct his release, for ttie reason that an attempt to murder was not one of the crimes charged against him and upon which his surrender to the Salvadorian authorities had been demanded. Remonstrance with Spain. Unreasonable and unjust fines imposed by Spain on the vessels and commerce of the United States have demanded from timo to time during the last twefity yoars earnest remonstrance on the part of our government. In the immediate past exorbitant penalties have boen Imposed upon our vessels and goods by customs authorities bf Cuba and FbrLo Rico for clerical errors of the most trivial character in the manifests or bills of lading. In some cases fines amounting to thousands of dollars have been levied upon cargoes or tho carrying vessels when the goods in question wore entitled to free entry. Fines have been exacted even when the error had been detected and the Spanish authorities no- ! tilled before the arrival of the goods in port. Turkey and tho Armenians. In my last annual message I adverted to tho claim on the part of Turkey of tho 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 would not consent that Armenians may bo imprisoned or otherwise punished for no other reason than having acquired without imperial consent American citizenship. Disturbances in Samoa. In my last annual message I referred briefly to the unsatisfactory state cf affairs in Samoa under the operation of the Berlin treaty as signally illustrating the impolicy of entangling alliances with foreign powers, and on May 9. 1891, in response to a resolution of the senate, I sent a special message and documents to that bodv |on the same subject wfclch emphasized my previously expressed opinions. ALater I occurrences, the correspondence in regard to which will be laid before congress, further demonstrate that the government which was devised by the throe powers aifil forced upon tho Samoans against their inveterate hostility can bo maintained only by contmCffid presence of foreign military force and at no small sacrifice of life and treasure. Revenue Receipts. The secretary of the treasury reports that the receipts of the government from all sources of revenue during the fiscal year ending June 30, 1894, amounted to $379,802,498.39, and its expenditures to $442,605,758.87, leaving a deficit of 509.803.260.58. There was a decrease of $15,952,674.60 in tho ordinary expenses of tho government, as compared with the fiscal year 1893. There was collectod irom customs $131,818.630.02, and from internal revenue $147,168,449 70. Tho balance of the income for the year, amounting to $93,815,517.97, was derived from the sales of lands and other sources. Imports and Exports. The value of our dutiable Imports amounted to $275,199,086, being $140,657,025 less than during the proceding year, and the importations free of duty amounted to $379,795,530, being $09,748,075 less than during the preceding year. The receipts from customs were $73 5)0.486 11 loss, and from internal revenue $14,830,539.97 less than in 1893. The total tax collected from distilled spirits was $85,259.250 85: on manufactured tobacco. $28,017,898.02, and on fermented liquors, $31,414,788.04. Our export of merchandise, domestic and foreign, amounted during the year to $892,140.572. being an increase over the preceding year of $44,495,378. Movement of Gold and Sliver. The total amount, of gold exported during I the fiscal year was $76.893.061. as against SIOB.- ! 680.444 during the fiscal year 1893. The amount imported was $72,449,119. as against $21,174,381 during tho previous year. The imports ol silver were $13,280,552, and the exports were $50,451,205. Sugar Bounty. The total bounty paid upon the production of sugar in tho United States for the fiscal year was $12,100,208.89, being an increase of $2,725.078 01 over the payments made during the pre- ' ceding 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 $906,185.84. The total expense incurred in the payment of the bounty upon sugar during the fiscal year was $l3O 140:85:

An Estimated Deficit. It is estimated that upon the basis of our pveseut revenue laws the receipts of the government during the current fiscal year ending June 3J. 1895. will be $121,427,748 44 and its expenditures $444,-127,748.44, resulting in a deficit of £20,000,000. The Circulation. On the first day of November, 1894. tho total stock of money of all kinds in the country was t 2.240.773.888. as against $2,204,651,000 on the Ist of November, 1893, and the money of all kinds in circulation or not tn> luded in the treasury holdings was $ 1.672,093,422. or $24.27 per capita upon an estimated population of 08,887,000. Purchase of Silver Bullion. At the same date there was held in the treasury gold bullion amounting to $41,615,177.55 and silver bullion which was purchased at a cost of $127,779,988. 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 11,917,658.78 fine ounces, at a cost of $8,715,511.32, an average cost of $0.7313 per tine ounce. The. total amount of stiver purchased from the time that law took effect until the repeal of its purchasing clause, on tho date last mentioned, was 168.674.682.53 line ounces, which cost $155,931.002.25. the average price per fine ounce being $0.9244. Coinage. Tho total amount of standard silver dollars coined at the mints of the United States since the passage of the act of Fehrunr.f 28, 1878. is $421,776,408, of which $378.163 703 wore coined under the provisions of that act, $38,531 143 under the provisions of the act of July 14. 1890, and $5,078,472 under tho act providing for the coinage of trade-dollar bullion The total coinage of all metals of our mints during the last fiscal year consisted of 68.485,,220 pieces, valued at $100,216,730.00. of which there were $99,474,912.50 in gold coined; $758 in standard silver dollars; $3024.140.30 in subsidiary silver coin, and $710,919.20 in minor coin. During the calendar year 1893 the production of precious metals in the United states was estimated at 1,739,323 Ane ounces of gold, of the commercial and coinage value of $35.9>5,000 and 60.000.000 fine ounces of silver of the bullion or market value of $46,800,000 »nd of the coinage value of $77,570,000. National Banks. Fifty national banks were organised during the year ending October >l. 1804. with j capital of 15.885.0 0. and seventy-nine with a capital of •10.475.090. went In voluntary liquidation Twenty-one banka, with a capital of S2.7I'' OXJ. wore placed la the hands of receiver*. "'The total a umber of eettanei beaks in tnln—i m

the 31st day of October last, was 3.756. being 40 less than on the 81st day of October. 1893. The capital stock paid in was $672,671.3®, being $9,678,491 less than at the same time in the previous year, and the surplus fund and undivided profits, less expenses and taxes paid, amounted to $334,121,082.10, which was $16,089,780 less than on October 31, 1893. The Army. From the report of the secretary of war It appears that the strength of the army on September 30, 1804. was 2,135 officers and 25.7® enlisted men. Although this is apparently a very slight decrease compared with the previous year, the actual effective force has been Increased to the equivalent of nearly two regiments through the reorganization of the system of recruiting and the consequent release to regimental duty of the large force of men hitherto serving at the recruiting depots. The abolition of these depots. It is predicted, will furthermore effect an annual reduction approximating i 250.000 in the direct expenditures, besides promoting generally the health, morals and discipline of the troops. Should Have Its Full Legal Strength. While the maximum legal strength of the army is 25.000 men, the effective strength, through various causes, is but little oyer 20,000 men. The purpose of congress does not. therefore. seem to be fully attained by the existing condition. While no considerable increase in the army is in my judgment demanded by recent events, the policy of sea coast fortification in the prosecution of which we have been steadily engaged for some years has so far developed as -to suggest that the effective strength of the army be now made at least equal to the legal strength. Army and the Strikes. 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 the process of 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. Expenses of tho War Department. The total expenditures for the war department for the year ended June 30. 1894, amounted to $58,039,009.34. Of this sum, $2,000,014 99 was for salaries and contingent expenses. $23,6®. 15610 for the support of the military establishments, $5,001,082.23 for miscellaneous objects and $25,371.555.90 for public works. This latter sum includes $19,494,037.49 for river and harbor improvements and $3,947,863.56 for fortifications and other works of defease. The appropriations for the current year aggregate $52,429,112.78, and the estimates submitted by the secretary of war for the next fiscal year call for appropriations amounting to $52,318,329.55. The Militia. The total enrollment of the militia of the several states is 117,533 officers and enlisted men, «r. increase of 5,343 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 tho state organizations, and I strongly recommend a continuance of the policy of affording every practical encouragement possible to this important auxiliary of our military establishment. • Further Honors for Gen. Schofield. l)j recognition of the long and distinguished military-'services and faithful discharge of delicate and TSspSn'sibTe civil duties by Muj. Gen. John M. Schofield, now the general commanding the army, it is suggested to congress that the temporary revival of the grade of lieutenant general In his behalf would bo a just and gracious act. and would permit his retirement, now near at hand, with rank befitting his merits. B| .More Courts Needed. The report of the attorney general notes the gratifying progress made by the supreme court in overcoming the arrears 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 duo to the successful working of the plan inaugurating circuit courts of appeals In respect to these tribunals the suggestion Is made. In cuartors entitled to the highest consideration, that an additional circuit judge for each circuit would greatly strengthen these courts aud 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. Federal Prisoners. Eight years ago, in my annual message, I urged upon the congress as strongly Jas I could the location and construction of two prisons for the confinement of United States prisoners. A similar iccommondation has beon mado from time to timo since, and a few yean: ago a law was passod providlrig for the selection of sites for three such institutions. No appropriation has, however, been made to carry the act Into effect, and tho old and discreditable condition still exists. The Postal Service. The report of the postmaster-general presents a comprehensive statement of tho operations of the post office department for the last fiscal year. Tho receipts of the department during tho year amounted to $75,080,479.04 and the expenditures to $84,324,414.15. The transactions pf the postal service indicate with barometrlo certainty the fluctuation In the business of the country. Inasmuch, therefore, as business complications continued to exist throughout the last year to an unforeseen extent it is not surprising that tho deficiency of revenue to meet the expenditures of the post office department, vvnich was estimated in advance at about $8,000,000 should be exceeded by nearly $1,250,000. Reform In Second Class Matter. The expenditures increase steadily and necessarily with tho growth and needs of the country so that the deficiency Is greater or less in any year depending upon tho volume of receipts. The 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 second-class matter is one cent per pound, while the 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 publication and created abuses the cost of which amounts In the aggregate to the total deficiency of the post office department. Growth of the Service. The total number of post offices 1n the United States on the 30th day of June, 1894. was 69,805, an increase of 1,4)3 over tho preceding year. Of these 3.428 were presidential, an increase of that class of 08 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 lunds. The expense of free delivery lor the current fiscal year will be more than $12,300,000 and under existing legislation this item of expenditure is subject to constant increase. Tne estimated cost of rural free delivery generally is so very large lhat It ought not to be considered in the present condition of affairs. During the year 830 additional domestic money-order offices were established. The total number of these offices- at the close of the year was 19.264. There were 14 301041 money orders issued during the year, being an increase over the precedingyear of 994.306 The value qf these orders amounted to $138,793 - 679.49. an increase of $11,217,145.84, There were also issued during the year postal notes amounting to $12,649,091 55. During the year 218 international money order officers were added to those already established, making a total of 2.625 such offices in operation June 30,1894. The number of international money orders issued during the year was 917,813, a decrease in number of 138.176 and their value was $13,792,455.31. a decrease in amount of $2,549,382.55. The number of orders paid was 301.180, an increase over the preceding year of 60,263, and their value was $6,538,493.78, an increase of $1,285.118,08. From the foregoing statements it appears that the total issue of money orders and postal notes for the year amounted to $1®.235.129.35. The number of letters ami packages mailed during the year for special delivery was 3.:3i.970. The special delivery stamps used noon these letters and packages amounted to $313.697. The messengers' fees paid for their delivery amounted to $201,209.70. leaving a balance in favor of the government of $82,437.30. The Navy. Attention is called to the report of the secretary of the navy, which shows very gratifying progress in the construction of ships lor our new navy. All the vessels now building. Including the three torpedo boats authorized at the last session of congress and excepting the first-class battleship lowa, will probably be compietod during the coming Usual year. The estimates for tho increase of the’navy for the year ending June 3). 1896. are large, but they include practically the entire sum necessary to complete and oqulp all the new ships not new in commission, so that unless now ships are authorized the appropriations for the naval servico for the fiscal year ending June 30,1897. should fall below the estimates for tho coining year by at least $12,000,001 More Battleships Needed. The secretary preser*. with much earnestness a pica for the authorization of three additional t> title ships and tea er twelve torpedo , boau. While the unarmored vessels hereto--1 tore authorised, loetadiag those eow warm

completV’P- wlu constitute a fleet, which It la believed is s’s fficient for ordinary cruising purposes in time peace, we have nowcomoleted and In process o' c ° r } st r3 ctlon but four firstclass battleships and but "tSli■flXJ'rpeuo Tri. The manufacture of armor requires expensive plant and the aggregation of many skilled workmen. All the armor necessary to complete the vessels now building will be delivered before the Ist of June next. If no new contracts are given out contractors must disband their workmen and their plants must lie Idle. Battleships authorized at this time would not be well under way until late in the coming fiscal year, and at least three years and a half from the date of the contract would be required for their completion. The secretary states that not more than 15 per cent, of the cost of such ships need be included in the appropriation for the coming year. I recommend that provision be male for the construction of additional battleships and torpedo boats. The secretary recommends the manufacture not only of a reserve supply of ordnance and ordnance material for ships of the navy, but also a supply for tho auxiliary fleet. Guns and their appurtenances should be provided and kept on hand for both these purposes. We have not to-day a single gun that could be put upon the ships Paris or New York of the International Navigation company or any other ship of our reserve navy. The manufacture of guns at the Washington navy yard is proceeding satisfactorily, and none of out new ships will be required to wait for their guns or ordnance equipment. Civil Service in the Navy. The system adopted a few years ago regulating the employment of labor at the navy yards is rigidly upheld and has fully demonstrated its usefulness and expediency. It is within the domain of civil service reform inasmuch as workmen are employed through a board of labor selected at each navy yard and are given work without reference to politics and in the order of their application, preference, however, being given ta army and navy veterans and those having former navy yard experience. Amendments suggested by experience have been made to the rules regulating the system. Through its operation the work at our navy yards has been vastly improved in efficiency and the opportunity to work has been honestly and fairly awarded to willing and competent applicants. It is hoped that if this system continues to be strictly adhered to there will soon be as a natural consequence such an equalization of party benefits as will remove all temptation to relax or abandon It. Tlie Public Domain. The report of the secrotary of the interior exhibits the situation pf the numerous and interesting branches of the public service connected with his department. I commend this report and the valuable recommendations of the secretary tp the careful attention of the congress, Tho public land disposed of during thq JioSr amounted to 10,408,100.77 acres, including 28 876.05 of Indian lands. It is estimated that the public domain still remaining amounts to a little more than 600X0 XOOO acres, including, however, about 300,000.000 acres in Alaska as well as military reservations and railroad and other selections of lands yet unadjudicatod. The total cash receipts from sale of lands amounted to $2,674,285.79 including $01,981.03 received for Indian lands. Thirty-five thousand patents wero issued for agricultural lands and 3,100 patents were issued to Indians on allotments of their lands lri sitcralty, the land so allotted beitg inalienable by the Indian allottees for a period of twenty-five years artef patent. They were certified and patented on account of railroad and wagon road grants during the year. During the year 865.5)0.45 acres of land and at the close of the year 29,000,000 acres were embraced In the lists of selections made by railroad and wagon-road companies and awaited settlement. The selections of swamp lands and that taken as indemnity therefor 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. About 138, 000 acres were patented during the last year. Nearly 820,000 acres of school and education grants were approved during the year, and at its close 1,280,363.81 acres remained unadjusted. Protection of the Lands. It appears that the appropriation for the current year on account of special service for the protection of the public lands and the t imber thereon is. much less than those for previous years and inadequate for an efficient performance of the work. A larger sum of money than has been appropriated during a number of years past on this account has beon returned to the government as a result of the labors of those employed in the particular service mentioned, and I hope it will not be cripple! by insufficient appropriation. I fully indorse the recommendation of the secretary that adequate protection be provided for our forest reserves, and that a comprehensive forestry system be inaugurated. Such keepers and superintendents as are necessary to protect the forests already reserved should bo provided. I am of tho opinion that there should be an abandonment of the policy sanctioned by present laws under which the. government for a very small consideration is rapidly losing title to immense tracts of land covered with timber which should be properly reserved as permanent sources of timber supply. A Land Court Needed. An exceedingly important recommendation of the secretary relates to the manner In which contests and litigated cases growing out of efforts to obtain government land are determined. The entire testimony upon which these controversies depend in all their stages Is taken before the local registers and receivers, and yet these officers have no power to subpoena witnesses or to enforce their attendance to testify. These cases, numbering 3.000 or 4,000 annually, are sent by the local officers to the commissioner of the general land office for his action. The exigencies of his other duties oblige him to act upon the decisions of the registers and receivers without an opportunity of thorough personal examination. Nearly.g.OOJ of these eases are appealed annually from tho commissioner to the secretary of the interior. Burdened with other important administrative duties, his determination of these appeals must be almost perfunctory and based upon the examination of others, though this determination of the secretary operates as a final adjudication upon rights of very great importance. I concur in tho opinion that the commissioner of the general land office should be relieved from the duty of deciding litigated land cases; that a nonpartisan court should be created to pass on such cases, and that the decisions of this court should be final, at least so far as the decisions of the department are now final. Allotments In Severalty. I have always believed that allotments of reservation lands to Indians in severalty should be made sparingly or at least slowly and with the utmost caut ion. In these days when white agriculturists and stock raisers of experience and intelligence find their lot a hard one. we ought not to expect Indians, unless far advanced in civilization and habits of industry, to support themselves on the small tracts of land usually allotted to them. If the self-sup-porting scheme by allotment fails the wretched pauperism of the allottees which results is worse than their original condition of regulated dependence It is evident that the evil consequences of ill advised allotments are intensified in eases where the false step cannot be retreated on account of the purchase bv the government of reservation lands remaining after allotments are made and the disposition of such remaining lands to settlers or purchasers from the government. Honesty In Dealing with the Indians. Whenever allotments are made and any Indian on the reservation has previously settled uoon a lot and cultivated it. or shown a disposition to improve it in any way. such lot should’ certainly be allotted to him and this should be made plainly obligatory by statute. Ini 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 cautions in making allotments. but I incline to agree with the secretory 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 government 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 sn orderly way and at fixed prices, to be determin- d by Its location and desirability, and that the proceeds. less expenses, should be held in trust for the benefit of the Indian proprietor. Indian Schools. s The intelligent Indian school management bf tho past year has been followed by gratifying results. Efforts have been made to advance the work in a sound and practical manner. Five institutes of Indian teachers have been held during the year and have proved very beneficial through the views exchanged and methods discussed, particularly applicable to Indian educat on. Efforts are being made in the direction of a gradual reduction of the number of Indian contract schools, so that in a comparatively short time they may give way altogether to government schools, and It is hoped that the change may be so gradual as to be perfected without too great expense to the government or undue disregard of investments made by those who have established and are maintaining such contract schools. Pensions. At tno close of tho last fiscal year, on the 30th of June, 1894, there wero 989.544 persons on our pension rolls, being a not increase of 3,532 ovor the number reported at the end of tho previous year. Them pensioners may be classified as follows: Soldiers and sailors, survivors of all wars. 753 903; widows and relative* of de-eased soldiers. 215.165: array nurses to the war of the rebellion. 414. Of theoe p— loner* U.9H an surviving soldiers

of Indian and other war* prior to the late cirfl “ d relatives of suchsolaler*- , *‘.o remainder, numbering 057,505, are reQelvpensions on account of the war of the rebellion, and of these 469.344 are on the rolls under the authority of the act of June 27, 1860, sometimes called the dependent pension law. The total amount expended for pensions during the ye3r was *139.804,461.06 leaving an unexpended balance from the sum appropriated of $25,206,712.63. The sum necessary to meet pension expenditures for the rear ending June 30, 1896, is estimated at $140,000,000. Pension Frauds The barefaced and extensive pension frauds exposed under the direction of the courageous and generous veteran soldier now at the bead of the bureau leaves no room for the claim that no purgation of our pension rolls was needed or that continued vigilance and prompt action are not necessary to the same end- The accusation that an effort to detect pension frauds is evidence of unfriendliness toward* our worthy veterans, and a denial of their claims to the generosity of the government, suggests an unfortunate indifference to the commission of any offense which has for Its motive the securing of a pension and indicates a willingness to be blind to the existence of mean and treacherous crimes which play upon demagogic fears and make sport of the patriotic impulse of a grateful people Kleventh Census. The completion of the eleventh census Is now In charge of the commissioner of labor. The total disbursements on account of the work for the fiscal year ending June 30. 1894, amounted to $10,365,676.81. At the close of the year the number of persons employed in the census office was 679. At present there are about 40). The whole number of volumes necessary to comprehend the eleventh census will be twenty-ilve, and they will contain 22,270 printed pages. The assurance Is confidently made that before the close of the present calendar year the material still incomplete will be practically In hand, and the census can certainly be closed by the 4th of March. 1895 After that the revision and proof-reading necessary to bring out the volumes will still be required The text of the census volumes has been limited, as far as possible, to the analysis of statistics presented. The method, which is fn accordance with law, has caused more or less friction, and in some Instances Individual disappointment, for when the commissioner of labor took charge of the work he found much matter on hand, which, according to this rule, he was compelled to discard. The census is being prepared according to the theory that it i 3 designed to collect facts and-certify them to vhe public—not to elaborate arguments or to present personal views. Department of Agriculture. 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 saving in expenditures during the year of $600,090, 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 produces in all foreign markets, especially Great Britain That country received from the United States during the nine months ending September 30, 1894, 305.910 live beef cattle, valued at $26,500,000. as against 182,811 cattle, valued at $16,634,000. during the same period for 1893. During the first Six months of 1894 the United Kingdom took also I J 2.099,009 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, 1804, the United States exported to Great Britain iJ22,6r5,000 pounds of pork; of apples, 1,900,0)0 bushels, valued at 12,500,00).' 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 may 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. 1894. amounted to $628,333,038, 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 produots finding foreign markets. The Weather Bureau. The amount appropriated for the weather bureau was $951,100: of that sum $138,50). 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 wore generally given of two tropical storms occurring in September and October of the present year resulted in detaining 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 these 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 were only $495,429.24, thus leaving unexpended $354,570.76. The inspection of beef animals for export and interstate trade has been continued, and 12,944,056 head were inspected during the year at a cost of 12£ cents per head, against 4% cents for 1893. The amount of pork 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 BJ£ cents per head in 1893 to 6"4 cents in 1894. Valuable Experiments. The office of experiment stations, which Is a part of the United States department of agriculture, has during the past year engaged Itself almost wholly in preparing for publication works based upon the reports of agricultural experiment stations and other institutions for agricultural inquiry in the United States and foreign countries. The secretary, in his report for 1893. called attention to the fact that the appropriations made for the support of the experiment stations throughout the union were the only moneys taken out of the national treasury by act of congress for which no accounting to federal authorities was required. Responding to his suggestion the Fifty-third congress, in making the appropriation for the department for the present fiscal year, provided that: “The secretary of agriculture shall prescribe the form of annual financial statement required by section 3, of said act of March 2. 1887: shall ascertain whether the expenditures under the appropriation hereby made are in accordance with the provisions of said act, and shall make report thereon to congress.” The best service of the statistician of the department of -agriculture is the ascertainment, by diligence and care, of the actual and real conditions, favorable or unfavorable, of the farmers and farms of the country, and to such causes which produce those conditions, to the end that the facts ascertained may guide their intelligent treatment In obedience to this law the department of agriculture immediately sent out blank forms of expense accounts to each station, and proposes in addition to make, through trusted experts, systematic examination of the several stations during the year, for the purpose of acquiring by personal investigation the detailed information necessary to enable the secretary of agriculture to make, as the statute provides, a satisfactory report to congress. The boards of management of the several stations, with great alacrity and cordiality, have approved the amendment to the law providing this supervision of their expenditures, anticipating that it will increase the efficiency of the stations and protect their directors and managers from loose charges concerning their use of public funds, besides bringing the department of agriculture into closer and more confidential relations with the experimental stations, and through their joint service largely increasing the usefulness to the agriculture of the country. Acting upon a recommendation contained in the report of 1893, congress appropriated SIO,OOO to enable the secretary of agriculture to investigate and report upon the nutritive value of various articles and commodities used for human food, with special suggestion of full, wholesome and edible rations less wasteful, and more economical, than those in common use. For this appropriation the department has prepared and now has nearly ready for distribution an elementary discussion of the nutritive value and pecuniary economy of food. When we consider that fully one-half of all the money earned bv the wage-earners of the civilized world is expended by them for food the importance and utility of such an investigation is apparent. The department expended in the fiscal year 1892, $2,345,809.56, and out of that sum the total amount expended in scientific research was 45.6 percent. But in the year ending .lune 30, 1894, out of a total expenditure of $1,948,988 33, the department applied 51.8 per cent, of that sum to scientific work and investigation. -It is, therefore, very plainly, observable that the economies which have been practiced in the administration of the department have not been at the expense of scientific research. • An Agricultural Census. A further important utility in agrioultural statistics is found in their elucidation of the relation of the supply of farm produots to the demand for them in the markets of the United States and of the world. It is deemed possible that an agricultural census may be taken each year through the agents of the statistical division of the department. Such a course is recommended for trial by the chief of that division. Jts scope would be: 1. TUe area under each of the more important crops. 8 The aggregate products of each of suoh crops. 3. The quantity of wheat and corn In the hands of farmers at a date after the spring sowings end plantings and t afore the beginning of harvest: and also the quantity of cotU>a and tobacco remaining la the hands of

planters, either at the same date or at some other designated time Civil Service Reform. The advantages to the public service of an adherence to the principles of civil service reform are constantly more apparent, and nothing is so encouraging to those in official life who honestly desire good government as the increasing appreciation by our people of these advantages. To Protect Public Health. I am entirely convinced that we ought not to be longer without a national board of health or national health officer charged with no other duties than such as pertain to the protection of our country from the invasion of pestilence and disease. This would Involve the establishment, by such board or officer, of proper quarantine precautions, or the necessar y aid and counsel to local authorities on the subject, prompt advice and assistance to locate boards of heaAh or health officers in the suppression of contagious disease, and in cases where there are po such local boards or officers the immediate direction by the national board or officer of measures of suppression, constant and authentic information concerning the health of foreign countries and all parts of onr own country as related to contagious diseases, and consideration of regulations to be enforced la foreign ports to prevent the introduction of contagion into 6v>r cities and the measures which should be adopted to secure their enforcement. The Labor Inquiry. 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 K. 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 rairoads and their employes which had resulted In an extensive and destructive strike, accompanied by much 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 up on their investigation. Their work has been well done, and their standing and intelligence give assurance that the report and suggestions they make are worthy of careful consideration. Favors Free Coal and Iron. 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 Yates of dqty, I am still very decidedly in favor olnputting coal and iron upon the free list. The Sugar Schedule. J So far as the 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 all the favor now accorded the sugar refining interests in our tariff laws, it still languishes to the extent of closing refineries, and thousands of discharged workmen, it would seem to present a hopeless case for reasonable legislative aid. An Arg-rneht for Free Ships. With the advent of a new tariff policy not only calculated to relieve the consumers of our land In the cost of their daily life, but to Invite a better development of American thrift and create for us closer and more profitable commercial relations with the rest of the world, it follows as a logical and imperative necessity that we should at once 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 effort 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 contest for the advantages of American trans-oceanio carriage. Our new tariff policy, built upon the theorj that it is "well to encourage such importations as our people need, and that our products and manufactures should find markets in every part of the habitable globe, is consistently supplemented by tho greatest possible liberty to our citizens in the ownership and navigation of ships In which our products and manufactures may be transported. The Issue of Bonds. During the last month the gold reserved In the treasury for the purpose of rodeeming the notes 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 of proper care for tho public welfare it became necessary to replenish the 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 if in this emergency authority had existed to issue bonds of the government bearing a low rate of interest and maturing within a short period, but the congress having failed 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 anuum, and maturing ten years after their issue, that being the shortest time authorized by the act. lam glad to say, however, that on the sale of these bonds the premium received operated to reduce the rate of interest to be paid by the government to less than 3 per cent. I cannot for a moment believe that any of our citizens are deliberately willing that their government should default in its pecuniary obligations or that its financial operations should De 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. Change in Currency System Advocated. The absolute divorcement of the government from the business of banking is the ideal relationship of the government to the circulation of the currency of the country. This condition cannot he immediately reached: but as a step in that direction, and as a means of securing a more elastic currency and obviating other obr jections to the present arrangement of bank circulation, the 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. It is proposed to repeal all laws providing for the deposit of United States bonds as security for circulation; to permit national banks to issue circulating notes not exceeding in amount 75 per cent, of their paid up and unpaid capital, provided they deposit with the government, as a guarantee fund, in United States legal tender notes, including treasury notes of 1890, a sum equal in amount to 30 per cent, of the notes they desire to issue, this deposit to be maintained at all times, but whenever 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 in 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 and restrictions upon banks desiring to reduce or increase their circulation—thus permitting such increase or reduction within the limit of 75 per cent, of capital to be quickly made as emergencies arise. 1 n addition to the guarantee fund 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-half of 1 per cent., upon the average circulation of each bank until the fund amount to 5 per cent, of the total circulation outstanding. When a bank falls 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 available 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 failed bank in favor of the contributing banks: as a further security it is contemplated that the existing condition fixing the Individual liabilty of stockholders is to be retained and the bank’s indebtedness on account of Its circulating notes is to be made a first lien on all its assets. Another very important feature of this plan Is the exemption of state banks 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 currency by 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 note's to the full extent of their ownership of stock; that the liability of' said l anks upon their circulsting 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 1890 equal to 80 per cent, of their outstanding circulating notes and that such banks have promptly redeemed their circulating notes when presented at their principal or branch offices. Conclusion. I conclude this communication, 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 mads or not, I shall bo glad to cooperate In perfecting any legislation that tends to the prosperity and welfare of o»r eountrv. GHOVER CUtVCLAJUh Executive Mansion, December a, utH. . ■*