Rensselaer Republican, Volume 18, Number 14, Rensselaer, Jasper County, 10 December 1885 — THE MESSAGE. [ARTICLE]

THE MESSAGE.

President Cleveland’s First Communication to Congress. He Urges a Suspension o£ the Coinage ot Silver. Recommends a Reduction of the Tariff on the Necessa- . r ries of Life. Favors the Tehuantepec Ship Railway Across the Isthmus. A Plea for the Education and Civilization of the Indians. Our Relations with Foreign Powers in a Satisfactory Condition. Cordial Relations with Mexico and the Central American States. A Good Word for the Life-Saving Service—The Signal-Service Bureau. A TRIBUTE TO MB. HENDRICKS. To the Congress of the United States: Your assembly is clouded by a sense, of public bereavement caused by the recent and sudden death of Thomas A. Hendricks, Vice President of the United States. His distinguished public services, his complete integrity and devotion to every duty, and his personal virtues, will find honorable’ record in his country’s history. Ample and repeated proofs of the esteem and confidence in which he was held by his fellow-coun-trymen were manifested by his election to offices of the most important trust and highest dignity, and, at length, full of years and honors, he has been laid at rest amidst general sorrow and benediction. , _ CONSTITUTIONAL. DUTY. The Constitution, which requires those chosen to legislate for the people to annually meet in the discharge of their solemn trust, also requires the President to give to Congress information state of the Union and recommend to itSconsideration such measures as ho shall deem necessary and expedient. At the threshold of a compliance with these, constitutional directions, it is well fpr us to bear in mind that our usefulness to the people’s interests will be promoted by a constant appreciation of the scope and character of our respective duties as they relate to Federal legislation. While the Executive may recommend such measures as he shall deem’cxpedient, the responsibility for legislative action must and should rest upon those selected by the people to make their laws. Contemplation of the—grave and responsible functions assigned to the executive branches of the Government under the Constitution will disclose the partition of power between our respective departments, and their necessary independency, and also the need for the exercise of all the power entrusted to each, in that spirit of comity and co-operation which is essential to the proper fulfillment of the patriotic obligations which rest upon us as faithful servants of the people. The jealous watchfulness of our constituencies, great, and small, supplements their suffrage; and, therefore; in the tribunal they establish every public servant should be judged. FOREIGN RELATIONS. It is gratifying to announce that the relations of the United States with all foreign powers continue to be friendly. Our position, after nearly a century of successful constitutional government, maintenance of good faith in all of our engagements, the avoidance of complications with other nations, and consistent and amicable attitude toward the strong and weak alike, furnish proof of a political disjKjsition which renders professions of good-will'unueces-eary. There are no questions of difficulty pending with any foreign Government. THE ARGENTINE QOVEBNMENT has revived the long dormant question of the Falkland Islands, by claiiningfrom the United States indemnity for their loss, attributed to the action of the commander of the sloop-of-war Lexington in breaking up a piratical colony on those islands in 1831, and their subsequent occuJiation by Great Britain. In view of the ample ustiftcation for the act of the Lexington, and derelict condition of the islands before and after their alleged occupation by Argentine colonists, this Government considers the claim as wholly groundless. AUSTRIA-HUNGARY. ’ The question has arisen with the Government Of Austria-Hungary touching the representation Of the United States at Vienna. Having under my constitutional prerogative appointed an estimable citizen of unimpeached probity and competence as Minister to that court, the Government of Austria-Hungary invited this Government to the cognizance of certain exceptions, based upon allegations against the personal acceptibility of Mr. Keiley, the appointed envoy, .asking that in view thereof the appointment should be withdrawn. The reasons advanced were such as could not be acquiesced inVithout violation ot my oath of office and of the Constitution, since they necessarily involve-alimitation in favorof a foreign Government upon the right of selection by the Executive, and require such an ai>plicatiou of a religious test as a qualification for office under the United States as would have resulted in the practical disfranchisement of a large class of our citizens and the abandonment of a vital principle of our Government. The Austro-Hungarian Government finally decided not to receive Mr. Keiley as the Envoy of the United States, and that gentleman since resigned his commission, leaving the post vacant. I have made no new nominations, and the interests of this Government at Vienna are now in the care of the Secretary of Legation, acting as charge d’affaires ad interim.

GUATEMALA. Early in March last wax broke out in Central America, caused by the attempt of Guatemala to consolidate the several States into a single government. In these contests between our neighboring States the United States forebore to interfere actively, but lent the aid of their friendly offices in deprecation of war and to promote peace and concord among the belligerents, and by such council contributed importantly to the restoration of tranquillity in that locality. UNITED STATES OF COLOMBIA. Emergencies growing out of civil war in the United States of Colombia demanded of the Government at the beginning of the administration of the employment of an armed force to fiulfill its guarantees, under the thirty-fifth article of the treaty of 1840, in order to keep the transit open across the Isthmus of Panama. Desirous of exercising only the powers expressly reserved to us by the treaty, and mindful of the rights of Colombia, the forces sent to the Isthmus were instructed to confine their action to “positively and efficaciously” preventing the transit, and its accessories from, being “interrupted or embarrassed." The execution of this delicate and responsible task necessarily . involved police control ■Where the local authority was temporarily powerless, tut always in aid of the sovereignity of Colombia. The prompt and successful fulfillment of its duty by this Government was highly appreciated by the Government of Colombia, and has been followed by the expression of its satisfaction. High praise is due to the officers and men engaged in this service. The restoration of peace on the Isthmus by the re-establish-ment Of the constitutional Government there, being thus accomplished the forces of the United States were withdrawn.- ■ . Pending these occurrences, a question of much importance was presented by decrees of the Colombian Government proclaiming the closure of certain ports then in the hands of insurgents, and declaring vessels held by the revolutionists to be piratical and liable to capture by any Power. To neither of these propositions could the United States assent An effective closure of ports, not in the possession of the Government, but held by the tiloß partisans, could not be recognized. Neither could the vessels of the insurgents against the legitimate sovereignty be deemed hottei hurrumi generic. within the precepts of international law. Whatever might be the definition and penalty of their acts under the municipal law of the State against whose authority they were in revolt, the denial by this Govern-

ment of the Colombian proposition did not, however, imply the admission of a belligerent status on the part of the insurgents. The Colombian Government has expressed its willingness to negotiate a convention for the adjustment, by arbitration, of the claims of foreign citizens arising out of the destruction of the city of Aspinwall by the insurrectionary forces. THE ISTHMUS CANAL. The interest of the United States in a practicable transit for ships across the strip of land separating the Atlantic from the Pacific .has been repeatedly manifested during the last half century. My imiiiedlate predecessors caused to be negotiated with Nicaragua a treaty for the construction, by and at the solo cost of the United States, of a canal through Nicaraguan territory, and laid before the Sduato. Pending tho action of that body thereon, I withdrew the treaty for re-oxaminaticn. Attentive consideration of its provisions leads me to withhold it from resubmission to the Senate. Maintaining as I do the policy of the Presidents from Washington’s day, which proscribe enlarging entangling alliances > with foreign states, Ido not favor a policy of of now and distant territory, or the’incorporation of remote interests w’ith our own. The laws of progress are vital and organic, and we must be conscious of that irresistible tide of commercial expansion which, as the concomitant of our active Civilization, day by daTfis being urged onward by those increasing facilities of production, transportation; and communication to which steam and electricity have ’given birth. But our duty in tho present instructs us to address ourselves mainly to the development of the vast resources of the great area committed to our charge, and to tho cultivation of tho arts of peace within our borders, though jealously alert in preventing the American Hemisphere front being involved in the political problems and complications of distant governments. Therefore I am unable to recommend propositions involving paramount privileges of Ownership or rights outside of our own territory, when coupled with absolute and unlimited engagements to defend territorial Integrity of the state wher'-such interests lie. SHIP railway. 1 While the general project of connecting the two oceans by means of a canal is to be encouraged, I am of opinion that any scheme to that end, to be considered with favor, shall be free from the features alluded to. ' The Tehuantepec route is declared by engineers of the highest repute and by competent scientists to afford' an entirely practical transit for vessels and cargoes by means of a ship railway from tho Atlantic to the Pacific. The obvious advantages of such a route, if feasible, over others more remote from the axial lines of traffic between Europe and the Pacific, and particularly between the valley of the Mississippi and the western coast of North and South America, are deserving of consideration. Whatever highway may be constructed across the barrier dividing the two greatest maritime areas of the world, must be for the world’s benefit—a trust for mankind, to be removed from the chance of domination by any single power, nor become a point of invitation of hostilities or a prize for warlike ambition. An engagement combining the construction, ownership, and operation of such a work by this Government, with an offensive and defensive alliance for its protection with the foreign states whose responsibilities and rights we would share, is, in my judgment; inconsistent with such dedication to universal and neutral use, and would, moreover, entail measures fpr its realization beyond This scope of our national policy or present means. The lapse of years has abundantly confirmed the wisdom and foresight of those earlier administrations, which, long before the conditions of maritime intercourse were changed and enlargedUy the progress of the age, proclaimed the vital need of inter-oceanic traffic across the commercial isthmus and consecrated it in advance to tho common use of mankind by their positive declaration and through the formal obligation, of trade. Toward such realization the efforts of my administration will be applied, ever bearing in mind the principles on .which it must rest, and which were declared in no uncertain tones by Mr. Cass, who, while Secretary of State in 1858, announced that “what the United States want in Central America, next to the happiness of the people, is the security and neutrality of the inter-oceanic routes which may be laid through it.” TRANSCONTINENTAL BAItWAYS The construction of three transcontinental lines of railway, all in successful operation, wholly within our territory, and uniting the Atlantic p.nd the Pacific Oceans, has been accompanied by results of a most interesting and impressive nature, and has created new conditions, notin the routes of commerce only, but in political geography, which powerfully affect our relations toward, and necessarily increase our interests in, any. transishthmian route which may be opened and employed for the ends of peace and traffic, or in other contingencies, for uses inimical to both. Transportation is a factor in the cost of commodities scarcely second to that of their production, and weighs as heavily upon the consumer. Our existence already has proven the great importance of having ’ the competition between land carriage and water carriage fully developed, each acting as & protection to the public.. against the tendencies of monopoly, which is inherent in the consolidation of wealth and power in the hands of vast corporations. These suggestions may serve to emphasize what I have already said on the, score of the necessity of a neutralization of any inter-oceanic transit, and this can only be accomplished by making the uses of the route open to all nations and subject to.the ambitions and warlike necessities of none. The drawings and report of a recent survey of the Nicaragua Canal route, made by Chief Engineer Menocal, will be communicated for your information. CHIT.T, PERU AND BOLIVIA. The claims of citizens, of the United States for losses by reason of the late, military operations of Chili in Peru and are the subject of negotiation for a Claims Convention with Chili, providing for their submission to arbitration. CHINA AND THE CHINESE QUESTION. The harmony of our relations with China is fully sustained in the application of the acts lately passed to execute the treaty of 1880, restrictive of the immigration of Chinese laborers in tilth e United States; Individual cases of hardship have Occurred beyond the power of the Executive to remedy, and calling for judicial determination. , T The condition of the Chinese question in the Western States and Territories Jis, despite this restrictive legislation, far from being satisfactory. The recent outbreak in Wyoming Territory, where numbers of unoffending Chinamen, undisputably within the protection of the treaties and the law, were murdered by a mob, and tho still more recent threatened outbreak of the same character in Washington Territory, are still fresh in the minds of all, and there is apprehension lest the bitterness..of..feelim’against the Mongolian race on the Pacific slope may find vent to similar lawless demonstration. All the power of this Government should be exerted to maintain the amplest good faith toward China in the treatment of these men and the inflexible sternness of the law in bringing tho wrong-doersTo justice sfiould be insisted upon. Every effort fias been made by this Government to prevent these violent outbreaks and to aid the representatives otChina in their investigation of these outrages, and it is bn| just to say that they are traceable to the lawlessness of,men not citizens of the United States engaged in competition with Chinese laborers. Race prejudice is the chief factor in_originating these disturbances, and it exists in a large part of our domain, jeopardizing our peace and the good relationship we try to maintain with China. The admitted rights of a Government to prevent the influx of elements hostile to its internal peace and security may not be questioned, even where there is no treaty stipulation on the subject. That the exclusion of Chinesetlabor is demanded in other countries where like conditions prevail, is strongly evidenced in the Dominion of Canada, where Chinese immigration is now regulated by laws more exclusive than our own. If existing’laws arc inadequate to compass the end in view, I shall be prepared to give earnest consideration to any further remedial measures within the treaty limits which the,wisdom of Congress may devise. '' THE CONGO STATE. The independent state of the Congo has been organized as a government under the sovereigntv of his Majesty the King of the Belgians, who assumes its chief magistracy in iris personal character only, without making the new state a dependency on Belgium. It is- fortunate that a benighted, region, owing all it has of quickening civilization to tho beneficence of the philanthropic spirit of this monarch, should have the advantages and security of his benevolent supervision. - ~1 . ' The action taken by this Government last year in being the first to recognize the fla£ of the Interaatiofial Association of the Congo has been followed by formal recognition of the new nationality which succeeds to its sovereign powers, A conference of delegatee of the principal commercial nations was held at Berlin last winter to discuss methods whereby the Congo basin might be’kept open to the world’s tradh. Delegates attended on behalf of the United States on the understanding that its part should be merely deliberative, or without imparting to the result any binding character, so far as the United State were concerned. This reserve was due to the indisposition jof this Government to share in- any disposal by the International Congress of jurisdictional questions in remote foreign territories. Theresults of the conference were embodied in a . formal act of the nature of an International Convention, which laid down certain obligations purporting to be binding on the signatories, subject to ratification .within one year. Notwithstanding the reservation unde?'which the delegates of the United States attended, their signatures were attached to the general act in the same manner as those of the plenipotentiaries of other governments, ;-- ■ <

The construction of three transcontinental lines of railway, all in successful operation, wholly within our territory, and uniting the Atlantic and the Pacific Oceans, has been accompanied by results of a most interesting and impressive nature, and has created new conditions, notin the routes of commerce only, but in political geography, which powerfully affect our relations toward, and necessarily increase our interests in, any. transishthmian route which may be opened and employed for the ends of peace and traffic, or in other contingencies, for uses inimical to both. Transportation is a factor in the cost of commodities scarcely second to that of their production, and weighs as heavily upon the consumer. Our existence already has proven the great importance of having ’ the competition between land carriage and water carriage fully developed, each acting as & protection to the public, against the tendencies of monopoly, which is inherent in the consolidation of wealth and power in the hands of vast corporations. These suggestions may serve to emphasize what I have already said on the, score of. the necessity of a neutralization of any inter-oceanic transit, and this can only be accomplished by making the uses of the route open to all nations and subject to.the ambitions and warlike necessities of none. The drawings and report of a recent survey of the Nicaragua Canal route, made by Chief Engineer Menocal, will be communicated for your information.

thus making the United States appear, without reserve ar qualification, as signatories to a joint international engageipynt-imposing on tho signers the conservation of the territorial integrity of distant regions, where we have no ‘ established interests or control. This government does not, however, regard its reservation of liberty of action in the premises as at all impaired, find holding that an engagement to those in the obligation of enforcing neutrality in the remote valley of the Congo would be an alliance whose responsibilities we are not in a position to assume, I abstain from asking the sanction of the Senate to that general oct. The correspondence will be laid before you, and the instructive and interesting report of the agent sent by this government to the Congo country, and his recommendations tor the establishment of commercial agenojes on tho African coast, ai-e a] sq submitted for your consideration?, THE COMMERCIAL COMMISSION. The commission appointed by my predecessor last winter to visit the Central and South American countries and report on the methods of em larging the cotnlnercial relations of the United States therewith, has submitted' reports which Will be laid before you. COREA". No opportunity has been omitted to testify tho friendliness of this government toward Corea, whose entrance into the family of treaty powers tho United States w-ero the first to recognize.AMERICAN OFFICERS IN COBEA. T-regard with favor the application made by the Corean Government to be allowed to employ American officers as military instructors, to which the assent of Congress».becomes necessary, and I am happy to say this request' has the concurrent sanction of China and Japan. THE SANTOS CASE. The arrest and imprisonment of Julio R. San-'.’ tos; a citizen of tho United States, by the authorities of Ecuador, gave rise to a contention with that Government, in which his right to be released Or to have a speedy and impartial trialon announced charges,-and with all guarantees of defense stipulated by treaty, was insisted upon by . United States. After an elaborate correspondence and repeated and earnest representationson our Mr. Santos was, after an alleged trial and conviction, eventually included in a general decree of amnesty and pardon by the Ecuadorian executive and released, declaring the question of his American citizen ship denied by the Ecuadorian Government, but insisted upon by our own. ~—-fbenci: claims paid. The amount adjudged by the late French and American Claims Commission to be due from the United States to the French claimants on account of injuries suffered by them during the war of secession having been appropriated by the last Congress, has been duly paid to the French Government. AMERICAN CLAIMS AGAINST THE FRENCH. The act of Feb. 25, 1885, provided for a preliminary search of the records of the French Prize Court for tho evidence bearing on the claims of American citizens against France for spoliations committed prior to 1801. The duty has been performed, and the report of the agent will bo laid before you. AMERICAN PORK ABROAD. I regret to say that the restrictions upon tho importation of our pork into France continue, notwithstanding the abundant demonstrations of safety from danger in its use; but I entertain strong hopes that, with a better understanding of the matter, this vexatious prohibition will be removed. It would be pleasing to be able to say asjnuch with regard to Germany, Austria and. other countries where such food products are absolutely excluded without present prospect of reasonable change.

THE GERMAN GOVERNMENT AND NATUALIZED AMERICANS.. '“The intcrpretiitioii of our existing treaties of naturalization by Germany during the past year has.a'ttracted attention by reason of an apparent tendency oh the part of the Imperial Government to extend the scope of the residential restrictions to wliich returning naturalized citizens of. German origin are assorted to be liable under the laws of tho empire. The temperate and just attitude taken by this Government with regard to these questions, will doubtless lead to a satisfactory understanding. THE CAROLINE ISLANDS DISPUTE. ; The dispute of Germany and Spain relative to 'the domination of the Carolilia Islands has attracted the attention of this Government, by reason of extensive interests of American citizens having grown up. in those parts during the last thirty-nine years, and because the question of ownership involves jurisdiction of matters affecting the status of our citizens under civil and criminal law. Whilst standing Wholly aloof from the proprietary issues raised between powers to both of which the United States are friendly, this Government expects that nothing in the present contention shall unfavorably affect our citizens carrying on a peaceful commerce on their domicile, and has so informed the Governments of Spain and Germany. GREAT BRITAIN. The marked good will between the United States and Great Britain has boon maintained during the past year, THE BRITISH-AMERICAN FISHERIES, The termination of the fishing clauses of the Treaty of Washington, in pursuance of the joint resolution of March 3, 1883, must have resulted in the abrupt cessation on the Ist of July of this year, in tho midst of their ventures, of the operations of citizens of the United States engaged in fishing in British-American waters, but for a diplomatic understanding reached with her Majesty’s' Government in June last, whereby assurance was obtained that no interruption of thoSe operations should take place during the current fishing season. in tl.l/3 interest of good neighborhood and the commercial intercourse of adjacent communities. A COMMISSION RECOMMENDED. The question of the North American fisheries is one of much importance. Following out the intimation given by mo when the extensive arrangements above described wore negotiated, I recommend that Congress provide for tho appointment of a commission, in which the Governments of the United States and Great Britain shall be respectively represented, charged with the consideration and settlement upon a just, equitable, and honorable basis of the entire question of the fishing rights of the two Gov? emments and their respective citizens on the coast of the United States and British North America. The fishing interests being intimately related to other general questions dependent upon contiguity and intercourse, consideration thereof in all their equities might also properly come within the purview of such commission, and the fullest latitude of expression on both sides should be permitted. The corresp ndence in relation to the fishing rights will ba submitted.

THE ALERT. The Arctic exploring steamer Alert, which was generously given by Her Majesty's Government to aid-in the relief of the Greely’expedition, was, after the successful attainment of that h'.mmr.o purpose, returned to Great Britain in pursuance of the authority conferred by the act of March 1885. EXThABHTON WITH GREAT BRITAIN. The inadequacy of the .existing engagements for extradition between the Unitod States and Great Britain has been long apparent. The fourth article of the treaty of 1842, one of the earliest compacts in this regard entered into.by us, stipulated for surrender in respect of a limited (number of offenses. Other crimes, no less iniinical to the social welfare, should bo embraced, and the procedure of extradition brought in harmony with present international practices. Negotiations with Her Majesty's Government for an enlarged treaty of extradition have been pending since 1870, arid I entertain strong hopes that a satisfactory result may be soon attained. THE BOUNDARIES OF ALASKA. Th,e frontier line Between Alaska arid British Columbia, which was defined by the treaty of cessation with Russia, follows the demarkation assigned in a prior treaty between Great Britain and Russia. Modern exploration discloses that this ancient boundary is impracticable its a geographical fact. In the unsettled condition of that region the question has lacked' importmice, but the discovery of mineral wealth in the territory the line is supposed to traverse admonishes that the time has come when an accurate knowledge of the boundary is needed to avoid jurisdictional complications. I recommend, therefore, that provision be made for a preliminary reconnoissimce by ofijeers of the United States to the end of Requiring more precise information on the subject., I have invited the Russian Government to consider with us the adoption of a more convenient line to be established by meridian observations or by known geographical features without the uecessitj- of an expensive survey of the whole. AMICABLE RELATIONS WITH HAYTI. The late insurrectionary movements in Hayti having been quelled, the Government of that republic has made prompt provision for adjudicating the losses suffered by foreigners because of hostilities there, and. the claims of certain citizens of the United States will be in this manner determined. The long pending claims of two citizens of the United States, Pelletier and Dazare, have been disposed of by arbitration, and an . award, in favor of each claimant, has been made, which by the terms of the engagement is final. It remains for Congress td'provide for the payment of the stipulated amount of the expenses. A question arose with Hayti during the past , year, by reason of the exceptional treatment of an American citizen, Mr. Van Bokkelen, a resident of Port Au Prince, who on suit by creditors residing in the United States was sentenced to imprisonment, and under the operation of Haytian statutes was demed the relief secured to a native Haytian; Tins Government asserted his treaty right to equal treatment with natives of Hayti in all suits at law. Our contention was denied by the Haytian Government, which, however, while still professing to maintain the ground taken against Mr. Van Bokkelen's right, terminates the controversy by. setting him at liberty without explanation. CHOLERA AND EPIDEMIC DISEASES. An International Conference to consider the

means of arresting the spread of cholera and other 'epidemic diseases, was held at Rome in May last, and adjourned to meet again on further notice. An expert delegate in behalf of the United States has attended, and will submit a report. FRATERNAL RELATIONS WITH MEXICO. Onr relations with Mexico continue to be most cordial as befits those of neighbors between whom the strongest ties of friendship and intimacy exist as the natural and growing consequence of the similarity of our institutions and geographical propinquity The relocation of the boundary line between the United States and Mexico eastward of the Rio Grande, under tho convention of July 29, 1882, has been unavoidably delayed, but I see no difficulty in’securibg a prolongation of the period for its accomplishment. The lately concluded commercial treaty with Mexico still awaits the stipulated legislation to carry its provisions into effect, for which one year’s additional time has been secured by a supplementary article signed in February last, and since ratified on both sides. As this convention, so important to tho commercial welfare of the two" adjoining countries, has been constitutionally confirpied by the treaty-making branch, I express the hope that legislation to make it effective may not be long delayed. The large influx of capital and enterprise to Mexico from the United States continues to aid in the development of the resources and in augmenting the material well-being of our sister Republic. Lines of railway, penetrating to the heart and capital of the country, are bringing the two people into mutually beneficial intercourse, and enlarged facilities of transit add to profitable' commerce, create npw markets, and furnish avenues ■to otherwise isolated communities. I have already adverted to the suggested construction of a ship railway across the narrow formation of the Territory of Mexico at Tehuantepec. ' THE PERUVIAN WAR CLAIMS. With the gradual recovery of Peru from the effects of her late disastrous conflict with Chili, and with the restoration of civil authority in that djstracted country, it is hoped that the pending war claims of our citizens conformity with the notification given by the Government of Peru, the existing treaties of commerce and extradition between the United States and that country will terminate March 31, 1886. RUSSIA AND THE JEANNETTE. Our good relationship with Russia continues. An officer of the navy, detailed for the purpose, is now on his way to Siberia, bearing the testimonials vqted by Congress to those who generously succored the survivors of the unfortunate Jeannette expedition. CORDIAL RELATIONS WITH SPAIN. It is gratifying to advert to the cordiality of our intercourse with Spain. The long-pending claim of the owners of the ship Masonic, for loss suffered through the admitted dereliction of the Spanish authorities in the Phillippine Islands, has been adjusted by arbitration and an indemnity awarded. The principle of arbitration in such cases, to which the United States have long and. consistently adhered, thus receives a fresh and gratifying confirmation. Other questions with Spain have been disposed of or are under diplomatic consideration with a view to a just and honorable settlement. The operation of the commercial agreement with Spain of Jan. 2 and Feb. 13, 1884, has been found inadequate to the commercial needs of the United States and the Spanish Antilles, and the terms of the agreement are subjected to conflicting interpretations in those islands.

Negotiations have been instituted at Madrid for a full treaty, not open to these objections, and in the line of tha_ge.nexal policy tracing_the neighborly intercourse of proximate communities to which I elsewhere advert, and aiming moreover at the removal of existing burdens and annoying restrictions; and, although a satisfactory termination is promised, I am compelled to delay its announcement. INTERNATIONAL COPYRIGHT. An International Copyright Convention was held at Berne in September, on the invitation of the Swiss Government. The Envoy of the United States attended as a delegate, but refrained from committing the Government to the results even by sighing tho recommendatory protocol adopted. The interesting and important subject of International Copyright) has been before you for several years. Action is desirable to effect the object in view, and while there may be a.question , as to the relative advantage, of treating it by legislation oi- specific treatment, the matured views of the Berne conference cannot fail to aid your consideration of the subject. COMPLICATIONS WITH TURKEY. The termination of the commercial treaty of 1862 between the United States and Turkey has been sought by that government. While there is question as to the sufficiency of tho notice of termination given, yet as the commercial rights of our citizens in Turkey come under “the favored nation guarantees” of the prior treaty of 1830, and as equal treatment is admitted by the Porte, no inconvenience can result from the assent of this Government to the revision of the Ottoman tariffs, in which the treaty powers have been invited to join. Questions concerning our citizens in. Turkey may be affected by the Porte’s non-aquiescence ‘ in the right of expatriation and by tho imposition of religious tests as a condition of residence in which this Government cannot concur. AMERICAN CITIZENS MUST BE-RESPECTED. The United States must hold, in their intercourse with every power, that the status.of their citizens is to be respected and equal privileges accorded to them without regard to creed, and affected by no considerations save those growing out of domiciliary return to the land of their original allegiance or of unfulfilled personal obligations which may survive under municipal laws after such voluntary’ return.

THE VENEZUELAN AWARDS. The negotiation with Venezuela relative to the rehearing of the awards of the Mixed Commission, constituted under tho treaty of 1866, was resumed in view of the recent acquiescence of the Venezuelan Envoy in the principal point advanced by this Government, that the effects of the old treaty could only be set aside by the operation of a new convention. A result in substantial accord with the advisory suggestions contained in the joint resolution of March 3, .1883, has been agreed upon, and will shortly be submitted to the Senate for ratification. UNITED STATES TRUST FUNDS.- . Under section 3659 of the Revised Statutes, all funds held in trust by the United States, and the annual interest accruing thereon, when not otherwise required by treaty, are to be invested in stocks of the United States, bearing a rate of interest not less than 5 per centum per annum. There being now no procurable stocks paying so high a rate of interest, the letter of the statute is at present inapplicable, bpt its spirit is subserved by continuing to make investments of this nature in current stocks bearing the highest interest now paid. The statute, however, makes no provision for the disposal of such accretions. It being contrary to the general rule of this Government to allow interest on claims, I recommend the repeal of the provision in question. CITIZENSHIP AND’ NATURALIZATION. The inadequacy of existing legislation touching citizenship and naturalization demands your consideration. While recognizing the right of expatriation, no statutory provision exists providing means for renouncing citizenship by an American citizen, native-born or naturalized, nor for terminating and vacating improved acquisition of citizenship. Even a fraudulent decree of naturalization cannot now bo canceled. The privilege and franchise of American citizenship should be granted with care and extended to those only who intend in good faith to assume its duties and responsibilities when attaining its privileges. It should be withheld from those who merely go through the forms of naturalization with intent of escaping duties with their original allegiance, without taking upon themselves those of the new status, or who may acquire the rights of American citizenship for no other than a hostile purpose toward their original government. These evils have had many flagrant illustrations. I regard with favor the suggestion put forth by one of my predecessors, that provision may be made for' a central bureau of record of the decrees of naturalization granted by the various courts throughout tho United States, now invested with that power. . The rights which spring from domicile in the United States, especially when coupled with a declaration of intention to become a citizen,,are worthy of definition ,by statute. The coming hither with intent to remain, establishing his residence in our midst, contributing to the general welfare, and by hjß voluntary act declaring his pin-pose to assume the responsibility of citizenship, thereby gains an inchoate status which legislation may properly define. The laws of certain States and Territories admit a domiciled alien to the local franchise, conferring on him the rights of citizenship to a degree which places him in the anomalous position of being a citizen of a State and yet not of the United States within the purview of Federal and international laws. It is important within the scope of national legislation to define this right of alien domicile as distinguished from Federal naturalization.

OUB IMMEDIATE NEIGHBORS. The commercial relations of the United States with their immediate neighbors and with important areas of traffic near our shores, suggest especially liberal intercourse between them and us. Following the treaty of 1883 with Mexico, whieh rested on the basis of reciprocal exemption from custom duties, other 'similar treaties were initated by my predecessor. Recognizing the need of less obstructed traffic with Cuba and Port Rico, and met by the desire of Spaiu to succor languishing interest in the Antilles, steps were taken to attain those ends by,, a treaty of commerce. A similar treaty was afterward signed by the Dominicanltopublic. Subsequently overtures were made by Tier Britannio.Majesty’s Government for a like mutual extensiorhef commercial intercourse with the British West Indian and

South American depofidencies, but without result. •’ jZ \ SPAIN AND SAN> DOMINGO. On taking office I withdrew for re-examina-tion the treaties /-signed with Spain and Santo Domingo, then pending before the Senate. The result has been w satisfy me of the inexpediency of ent rink into engagements of this character not covering the entire traffic. These treaties contemplated the surrender by the United States of large revenues for inadequate considerations. Upon sugar alone duties were surrendered to an amount far exceeding all the advantages offered in exchange. Even were it intended to relieve our consumers, it was evident that so long as the exemption but partially covered our importation, such relief would be illusory. To relinquish a revenue so essential seemed highly improvident at a time when new and large drains upen the treasury were contemplated. Moreover, embarrassing questions would have arisen under the favored nation clauses of treaties with other nations. As a further objection, it is evident that tariff regulation by treaty diminishes that independent control over its own revenues which is essential for the safety and welfare of any Government. An emergency calling for an increase of taxation may at any time arise, and no engagement with a foreign power should exist to hapiper the action of the Government. TUNNAGE DUES. By the fourteenth section of the shipping act, approved June 26, 1884, certain reductions and contingent exemptions from tunnage dues we're made as to vessels entering ports of thq United States from any foreign port in j North and Central America. The WestThdid Islands, the Bahamas and Bermudas, Mexico and the Isthmus as far as Aspinwall and Panama; the Governments of Belgium, Denmark, Germany, Portugal and Sweden and Norway, have asserted under the favored-nation clause in their treaties with the United States, a claim to like treatment in respect to vessels coming to the United States from their home ports. This Government, however, holds that the privilege granted by the act is purely geographical, inuring to any vessel of any foreign power-Uhat may -ehoose to—engage in traffic between this country and any port within the defined zone, and po warrant exists under the most-favored nation clause for the extension of the privileges in question to vessels sailing to this country from ports outside the limitation of the act.' Undoubtedly., the relations of commerce with our near neighbors, whose territories form so long a frontier link difficult to be guarded, and who find in our country and equally offer to us natural markets, demand special and considerate treatment. It rests with Congress to consider what legislate action may increase facilities of intercourse which contiguity makes natural and desirable. DIPLOMATIC AND CONSULAR SERVICE. I earnestly urge that Congress recast -the appropriation for the maintenance of the diplomatic and consular service on a 1 footing commensurate with the importance of our national interests. At every-post where a representative is necessary, the salary should be so graded as to permit him to live with comfort. With the assignment of adequate salaries, the so-called notarial extra-official fees, which our officers abroad are now permitted to treat as personal perquisites, should be done away with. Every act requiring the certification and seal of the officer should be taxable at schedule rates, and the fee therefor returned to the treasury. By restoring these revenues to the public use the Consular service would be self-supporting, even with a liberal increase of the present low Salaries. Tn further prevention of .'"abuses a system of consular inspection should l be instituted. —The—■appointment of a limited • number of secretaries of legation at large, to be assigned to duty wherever necessary, and in particular for temporary service at missions which for many causes may bo without a head, should also be authorized. ’ I favor also authorization for the detail of officers of the regular service, as military or naval attaches at legations. Some foreign Governments do not recognize the union of consular with diplomatic functions. Italy and Venezuela will only receive tno appointee in one of his two capacities, but this does not prevent the requirement of a bond and submission to the. responsibilities of an office whose duties he cannot discharge. The superadded title of Consul General should be abandoned. . ’

EXTRA TERRITORIAL COURTS. I deem it expedient t-hat a well-devised measure for the reorganization of the extra territorial courts in Oriental countries should replace the present system, which labors under the disadvantage of combining judicial and executive functions in the same office. LEGATION PREMISES. In several Oriental countries generous offers have been made of premises for housing the legations of the United States. A.grant of land for that purpose was made some years- since by Japan, and has been referred to in tho annual messages of my predecessor. The Siamese Goverirment has made a'gift to the United States of commodious quarters in Bangkok. In Corea the late Minister was permitted to purchase a building from the, Government for legation use. In China the premises rented for the legation arc favored as to local charges. At Tangier the house Occupied by our representative has been for many years the prop-, erty of this Govennuent, having been given for that purpose in 1822 by the Sultan of Morocco. I approve the suggestion heretofore made, that in view of the condition of life and the administration in. the Eastern countries, the legation buildings in China, Japan, Corea, Siam, and perhaps Persia, should be owned and furnished by the Government, with a view to permanency and security. To this end I recommend that authority be given to accept tho gifts adverted to in Japan and-Siam, and to purchase in the other countries named, with provision for furniture and repairs. A considerable saving in rentals would result.

THE NEW ORLEANS EXPOSITION. The World’s Industrial Exposition, held at New Orleans last winter with the assistance of the Federal Government, attracted a large number of foreign exports, and proved of great value in spreading among the great concourse of visitors from Mexico and Central and South America a wider knowledge of the various manufactures and productions of this country, and their availability in exchange for the products of those regions. TARIFF ON WORKS OF J>T. Past Congresses have had under consideration the advisability of abolishing the discrimination made by the tariff laws in favor of the works of American artists. The odium of the policy which subjects to a high rate of duty the paintings of foreign artists, and exempts the productions Of American artists residing abroad, and who receive gratuitously advantages and instruction, is visited upon our engaged in art culture in Europe, and has caused them, with practical unanimity, to favor the abolition of such an ungracious distinction, and in their interest-and for other obvious reasons, I strongly recommend it. THE GOVERNMENT FINANCES. The report of the Secretary of the Treasury fully exhibits the condition of the public finan-' ces/and of the several branches of the Government.confiected with his department. The suggestions of the Secretary relating to practical operations of this important department, and his recommendations in direction of simplification and economy, particularly in the work of collecting customs duties, are especially urged upon the attention of Congress. LAST YEAR'S REVENUE. The ordinary receipts from all sources for the fiscal year ended June 30, 1885, were $322,690,706.38. Of this sum $181,474,939.31 was received from customs and $115,498,725.54 from internal revenue. The total receipts as given above were $24,829,103.54 less than those for the year ending June 30, 1884. This dimunition embraces a falling off of $13,595,550.42 in the receipts from customs and $9,687,816.97 in the receipts from internal revenue. EXPENDITURES. The total ordinary expenditures of the Government for the fiscal year were $260,226,935.50, leaving a surplua in the treasury at the close of the year of $63,463,771.27. This is $40,929,854.32 less than the surplus reported at the close of the previous year. The expenditures are classified as " follows: Fqj- civil expenses, $23,826,942.11; for foreign intercbfirse, $5,439,909.11; for Indians. $6,552,494.63; for pensions, $56,102,267.49; for the military, including river and harbor improvements and arsenals, $-12,670,578.47; for the navy, including vessels, machinery, and improvements of navyyards, $16,021,079.69; for interest on 1 the public debt, $51,386,256.47 ; for the District of Columbia, $3,499,650.95; for miscellaneous expenditures, including public buildings, light-houses, and collecting the revenue, 854,728,054.21. REDUCTION OF DEBT. The amount paid on the public debt during the fiscal year ended June 30,1885, wa& 845,993,245.43, and there has been paid since that date and up to Nov. 1, 1885, the sum of $366,828, leaving the amount of the debt at the* last named date $1,514,475,860.47. There was, however, at that time in the Treasury applicable to the general purposes of the Government the sum of $66,818.292.38. THE REVENUE AND EXPENDITURES FOB THE CURRENT YEAR. > The total receipts for the current fiscal year, ending June 30,1886, ascertained to OctpberT, 1885, and estimated for the remainder of the year, are $315,000,000. - ■ The expenditures, ascertained qud estimated for the same time, are $245,009,000, leaving a surplus at the close of the year estimated at $70,000,000. VALUE OF EXPORTS. The value of exports from the United States to foreign countries during the last fiscal year was as follows: Domestic merchandises726,6B2,946 Foreign merchandi5e...,.15,5“6,809 G01d....../ 8,477,802 Silver 33,753,633 Total -.;.5784,421,280

feme of the principal exports, with their values and the percentage they respectively bear to the total exportation, are given as follows* ” ’ Per Value. centage. Cotton and cotton manufactures J 213,799,049 29.42 Manufactures../ 150,370.820 22.07 Breadstuffs—provisions.... 107,331,456 14.77 Oils—mineral, vegetable. and animal 54,326.202 , 7.48 Tobacco and its manufactures,,. 24,767,305 3.41 Wood and i-.. manufactures 21,464,322 2.95 OUR IMPORTS. Our imports during the year are as follows: Merchandiseßs79,sßo,os3.B7 Gold 26,691,896.00 SHver 16,550,627.00 T0ta18622,822,376.®) The following are given as prominent articles of imports during the year, with their values and with the percentage they bear to the importations : PerValue. centage. Sugar and m01a55e5876,738,713 13.29 Coffee-. 46,723,318 8.09 . Wool and its manufactures. 44,656,482 7.73 Silk and its manufactures... 40,393,002 6.99 Chemicals, dyeings and medicines 35,070,816 6.07 Iron and steel, and other manufacturers 34,563,689 5.08 Flax, hemp, jute, and their manufacture.' 32,854,874 - 5.69 Cotton and its manufactures 28,152,001 4.88 Hides and skins other than fur skinsJ 20,686,443 3.56 THE (REDUCTION OF THE TARIFF. The fact that our revenues Are in excess of the actual needs of an economical administration of the Government justifies a reduction in the amount expected from the people for its support. Our Government is but the means established by the will of a free people by which certain principles are applied which they have adopted for their benefit and protection. And it is never better administered and its truer spirit is never better observed than when the people’s taxation for its support is scrupulously limited to the actual necessity of expenditures and distributed according to a just and equitable plan. The proposition with which we have to deal is the reduction of the revenue received by the Government and indirectly paid by the people from customs duties. The question of free trade is not involved nor is there now any occasion for the general discussion of tho wisdom or expediency of a protective system. Justice and fairness dictate that in any modification of the present laws relating to revenue, the industries and interest which have been encouraged by such laws, and in which our citizen shave large investments, should not be ruthlessly injured or destroyed. We should deal with the subject in such manner as to protect the interests of American labor, which is the capital of our workingmen. Its stability and proper remuneration furnish the most justifiable pretext for a protective policy. Within these liniitations a certain reduction Should be made in our customs revenue. The amount of such reduction having been determined, the inquiry follows : Where can it best be remitted, and What articles can best be released from duty in the interest of our citizens? I think tho reduction should be mode in_the revenue derived from a tax upon the imported necessaries of life. We thus directly lessen the cost of living in every family of the land, and release to the public in every humble home a larger measure of the rewards of f rugal industry. THE NATIONAL BANK CIRCULATION. During the year ended Nov. 1, 1885, 145 national banks were organized, with an aggregate capital of’ $16,938,000, and, circulating notes.have been issued to them amounting to $4,274,910. The wholejnimber i-df—thenabankKin-oxistence on the day above mentioned was 2,727. The very limited amount of circulating notes issued by our national bonks compared with the amount the law permits them to issue, upon a deposit of bonds for their redemption, indicates that the volume of our circulating medium may be largely increased through this instrumentality.

THE SILVER QUESTION. Since February, 1878, the Government has, under the compulsory provisions of law, purchased 'silver bullion and coined the same at the rate of more than 2,000,000 of dollars every month. By this process up to the present dateJ215,759,431 silver dollars have been coined. A reasonable appreciation of a delegation es power to the General Government) would limit its exercis'e,. without express restrictive words, to the people’s needs and the requirements of the public welfare. Upon this theory tho authority “to coin money’ given Congress by the Constitution, if it permits tho purchase by the Government of bullion for coinage in any event, does not justify such purchase 1 and coinage to an-extent beyond the amount needed for sufficient circulating medium. The desire to utilize the silver product of the country should not lead to a, misuse or the perversion of this power. The necessity for such an addition to the silver currency of the nation as is compelled by the silver coinage act is negatived by the fact that up to the present time only about fifty millions of silver dollars so coined have actually found their way into circulation, leaving more than one hundred and sixty-five millions in possession °f the Government, the custody of which has entailed a Considerable expense for construction of vaults for its deposit. Against this latter amount there are outstanding silver certificates amounting to about 93,000,000 of dollars. Every month 82,000,000 of gold in the public Treasury are paid out for $2,000,000 or more of silver dollars, to be added to the idle mass already accumulated. If continued lonm enough this operation will result in the substitution of silver for all the gold the Government owns applicable to its general purposes. It will not do to rely upon the receipts of the Government to make good this drain of gold, because tho silver thus coined, having been made legal tender for all debts and dues, public and private, at times during the past six months fifty per cent, of the receipts for duties have been in silver or silver certificates, while the average withip thatperiod has—been twenty per cent. The proportion of silver and its certificates received by the Government will probably increase as time goes on, for the reason that the nearer the period approaches when it will be obliged to offer silver in payment of its obligations, the greater inducement there will be to hoard gold against depreciation in the value of silver, or for the purpose of speculation. This hoarding of gold has already begun. When the time comes that gold has been withdrawn from circulation, then will be apparent the difference between the real value of the silver dollar and a dollar in gold, and the two coins will part company. Gold, still the standard of value and necessaryin our dealings with other countries, will be at a premium over silver.' Banks which have substituted gold for tho deposits of their customers may.pay them with silver bought with such gold, thus making a handsome profit. Rich speculators will sell their hoarded gold to their neighbors who need it to liquidate their foreign debts at a ruinous premium over silver, and the laboring men and women of the land, most de-’ senseless of all, will find that the dollar received for the wages of their toil- has sadly shrunk in its purchasing power. It may be said that the latter result will be but temporary, and*that Ultimately the price of labor will be adjusted to the change, but even if this takes place the wage-worker cannot possibly gain, but must inevitably lose, since the price he is compelled so pay for his living will not only be measured in coin, heavily depreciated, and fluctuating, and uncertain in its value, but this uncertainty in the value of the purchasing medium will be made the pretext for an advance in prices beyond that justified 1 by actual ~ depreciation. The words uttered in 1834, by Daniel Webster, in the Senate of the United States, are true today: “The very man of all others who has the deepest interest in a sound currency; and whosuffers most by mischievous legislation in money matters, is the man who earns his daily bread ’by his daily toil." The most distinguished advocate of bimetalism, discussing our silver coinage, has lately written: “No American citizen’s hand has yet felt the sensation of cheapness, either in receiving or expending, the silver-act dollars,’ and those who live by labor or legitimate trade never, will feel‘that sensation of cheapness. However plenty silver dollars may become, they will not be distributed as gifts among the. people, and if the laboring man should’receive four silver dollars where he now receives but two, he will pay in the depreciated coin more than double the price he now pays for all the necessaries and comforts’ of life. Those who do not fear any disastrous consequences arising from the -continued compulsory coinage of silver as now directed by law, and who suppose that the addition to the cur-, rency of the country, intended as its result, will be a public benefit, are reminded that history demonstrates that the point is easily reached in the attempt to float at the same time two sorts of money of different excellence, when the better will cease to be in circulation. The hoarding of gold which has already taken place indicates that we shall not escape tho usual experience in such cases. So, if this silver coinage be continued, we may reasonably expect that gold and its equivalent will abandon the field of circulation to’' silver alone. This, of course, must produoe a severe von traction of our circulating medium instead of adding to it. - It will not be disputed that any attempt on the part pf the Government to canse the circulation of silver dollars worth 80 cents side by side with gold dollars worth 100 cents, even with the limit that legislation does not run contrary to laws of trade, to be successful must be seconded by the confidence of the people that both coins will retain the same purchasing power and be interchangeable at will , , Special effort has been made by the Secretary of the Treasury to increase the amount of our

■liver coin tn ciretfation, but the fact that a large share of the limited amount thud put out has soon returned to the public treasury ih payment of duties, leads to the belief that the people do not now desire to k?ep it on hand, and this, with the evident disposition to hoard gold, gives rise to the suspicion that there already exists a lack of confidence among the people touching our financial pfocesses. There is certainly not enough silver now in circulation to cause uneasiness, and the whole amount coined and now on hand might, after a time, bo absorbed by the people without apprehension; but it is the ceaseless stream that threatens to overflow the land which causes fear and uncertainty. What has been thus far submitted upon this subject relates almost entirely to considerations pf a home "auture, unconnected with the bearing which the policies of other nations have upon the question, but it is perfectly apparent that a line of action in regard to our currency cannot wisely be settled upon or persisted in without considering the attitude, on ' the subject of other countries with whom wc maintain intercourse through commerce, trade, and travel. An acknowledgment of this is found in the act by virtue Of which our silver is compulsorily coined. iHi provides that: “The President shall invite the Governments of the countries composing the Latin Union, So called, and of such other European nations as he may deem advisable, to join the United States in a conference to adopt a common ratio between -gold and silver for the purpose of establishing internationally the uses of bimetallic money and securing fixety of relative value between these metals. This conference absolutely failed, and a similar fate has awaited all subsequent efforts in the same direction, and still we continue our coinage of silver at a ratio different from that of any other nation. The most vital part;,of the Silver Coinage Act remains inoperative and unexecuted, and without an ally or friend we battle upon the silver field in an illogical and losing - contest. To give full effect to the design of Congress on this subject, I have made careful and earnest endeavor since the adjournment of the last Congress. To this end I delegated a gentleman well instructed in fiscal science to proceed to the financial centers of Europe, and in conjunction with otfr Ministers to England, France, and Germany, to obtain a full knowledge of the attitude and intent of these governments respecting the establishment of such an international ratio as would procure free coinage of both metals at the mints of those countries and our own. By my direction our Consul General at Paris Jias given close attention to the proceedings of the Congress of the Latin Union in order to indicate our interest in its objects and report its action! It may be said in brief as the result of these efforts that the attitude of the leading powers remain substantially unchanged since the Monetary Conference of 1881; nor is to be questioned that the views of these Governments are in each instance supported by the weight of public opinion. The steps thus taken have, therefore, only more fully demonstrated the uselessness of further attempts at present to arrive at anj’ agreement on the subject with other nations. In the meantime we are accumulating silver coin based upon our peculiar ratio .to such an extent, and assuming so heavy a burden to be provided for in any international negotiations, as will render us an undesirable party to any future monetary conference of nations. . I! iu a significant fact that four of the flyc countrigs comprising the Latin Union mentioned''in our coinage act, embarrassed with their silver currency JL haye_jiigt_jKani>leted on agreement among themselves that no more . silver shall be coined by their respective governments, and that such as has been already coined and in circulation shall be redeemed in gold by the country of its coinage. The resort to this expedient by these countries may well arrest the attention of those who suppose that we can succeed without shock or Injury in the attempt to circulate, upon its merits, all the silver we may coin under the provisions of the silver-coinage act. The condition in which our Treasury may be placed by a persistence in our present course is a matter of concern to every patriotic citizen who does not desire his Government to pay in silver such of its obligations as should be paid in gold. Nor should our condition be such as to oblige us, in a prudent management of our affairs, to discontinue the calling in and payment of interest bearing obligations which we have the right now to discharge and thus avoid the payment of further interest thereon. The so-called debtor class, for whose benefit the continued compulsory coinage of silver is insisted upon, are not dishonest because they are in debt, and thev should not be suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated dollars ; nor should it be forgotten that it is not the rich nor the money-lencer alone that must submit to such a readjustment, enforced by the Government and their debtors. The pittance of the widow and the orphan, and the incomes of helpless beneficiaries ‘of all kinds, would be disastrously reduced. The depositors in savings banks and in other institutions which hold in trust the savings of the poor, when their little accumulations are , scaled down to meet the nqjv order of things, would, in their distress, painfully realize the delusion of the promise made to them that plentiful money would improve their condition. We have now on hand all the silver dollars necessary to supply the present needs of the people, anil to satisfy those who from sentiment wish to sqe them in circulation, and if their coinage is suspended they can be readily obtained by all who desire them. If the need of more is at any time apparant, their coinage may be renewed.

That disaster, has not already overtaken us furnishes Bo proof that danger does not wait upon a continuation of the presont silver coinage. We have been saved by the most careful management, and unusual expedients by a combination of fortunate conditions, and by a confident expectation that the commerce of the Government in regard to silver coinage would be speedily changed by an action of Congress. Prosperity hesitates upon our threshold because of-dangers and uncertainties surrounding this question. : Capital timidly shrinks from trade, and investors are unwilling to take the chance of the questionable shape in which their money will be returned to them, while enterprise halts at a risk against which care and sagacious management do not protect. As a necessary consequence, labor lacks employment, and suffering and distress are visited upon a portion of our fellow-cit-izens especially entitled to the careful consideration of those charged with the duties of legislation. No interest appeals to us so strongly for a safe and stable currency as the vast army of the unemployed. I recommend the suspension of comyulsory coinage of silver dollars directed by the Law passed in February, 1878. STEAMBOAT INSPECTION SERVICE. The steamboat inspection service on the 30th day of June, 1885, was comqosed of 140 persons, including officers, clerks and messengers. The expenses of the service Over thfe receipts were 6138,822.27 during the fiscal year. The special inspection of foreign steam vessels, organized under the law passed in 1882, was maintained during the year at an expense oi $36,641.63. Since the close of the fiscal year reductions have been made in the forces employed, which will result in a saving during the current year of 617,000 without affecting the efficiency of the’ Service. MARINE HOSPITALS. The supervising Surgeon General reports that during the fiscal year 41,714 patients have received relief through marine hospital service, of whom 12,003 were treated in hospitals and 28,911 at dispensaries. PROTECTION FROM CHOLERA AND SMALL-POT. Active and effective efforts have been made through the medium of this service to protect the country against an invasion pf cholera, which has prevailed in Spain and France, and the small-pox which recently broke out in Canada. THE LIFE-SAVING SERVICE. The most gratifying results have attended the operations of the life-saving service during the last fiscal year. The observance pf the provision of law requiring the appointments of the force employed in the service to be madotsolely with reference to their fitness, and without reference to tiie political or party affiliation,” has secured the result winch may confidently be expected In any branch of public employment where such a rule is applied. As a consequence this service is composed of men,, well qualified for the performance of their dangerous and exceptionally important duties. The number of stations in commission at the close of the year was 203. The number of disasters to vessels and crafts of all kind within their field of action was 371. The number of persons endangered in such disasters was 2,439, of whom 2,428 were saved and only 11 lost. Other lives which were imperiled, though not,by disasters to shipping, were also rescued, and a large amount of property was saved through the aid of this service. The cost of its maintenance during the year was $828,473.43. the coast survey. The work of the coast and geodetic survey was, during the last fiscal year, carried on within the boundaries and off the coasts of thirtytwo states, two territories, and the District of Columbia. In July last, certain irregularities were found to exist in the management of this bureau, which led to a prompt investigation of its methods. The abuses which were brought to light by this examination and the reckless disregard of duty and the ifiterests of the Government developed on the part of some of those connected with the service, made a change of Superintendency and a few of its other officers necessary. Since the bureau has been in new hands, on introduction of economies and application of business methods have produced an important saving to the Government and a promise of more useful results. This service has never -been regulated by anythihg but most indefinite legal ' enactments and the most unsutisfaftory rules.

It was many years ago sancticned, apparently for a purpose regarded as temporary, ana relat- I ed to a survey of our coast. Having gained a . place in the appropriations made by Congress, it has gradually taken to itself powers and objects not contemplated in its creation, and extended its operations until it sadly, needs legislative attention. 1 » ' DISCONTINUING' A BUREAU. ■ 1 , “ So far as a further survey of our coast is concerrfed, there seems to be a propriety in transferring that work to the'Navy Department. The other duties now in charge of this establishment, if they cannot be profitably attached to some existing department or other bureau, should be prosecuted under a law exactly defining their scope and purpose, and with a careful discrimination between the scientific' inquiries Which may properly be assumed by the Government and those which should be undertaken by State authority, or by individual enterprise. 'it is hoped that the report of the Congressional Obmmittee heretofore appointed to investigate this and other like matters will aid in the accomplishment of proper legislation on this subject. THE ABMY. The report of the Secretary of War is herewith submitted. The attention of Congress is invited to the detailed account which it contains of the administration of his department and his recommendations and suggestions for the improvement of the service.’. The army consisted, at the date of the last consolidated returns, of 2,154 officers: and 24,705 oqlistcd men. The expenses of the departments for the fiscal year ending June 30, 1885, including $1.3,164,304.60 for public works and river and harbor improvements, were $45,850,999 54. Beside the troops which were dispatched in pursuit of the small band of Indians who left their reservation in Arizona and committed murders and outrages, two regiments of cavalry and one of infantry were sent last July to the Indian Territory to prevent an outbreak which seemed imminent. They remained to aid, if necessary, in the expulsion of intruders upon the reservation wbo seemed to have caused the discontent among the Indians, but the Executive proclamation warning them to remove was complied with without interference. Troops were also sent to Rock Springs, in Wyoming Territory, after the massacre of Chinese there, to prevent further disturbances, and after Ward to Seattle, in Washington Territory, to avert a threatened attack upon Chinese laborers and domestic violence there. In both cases, the mere presence of the troops had the desired effect. DESERTIONS. It appears that the number of desertions has diminished, but that during the last fiscal year they numbered 2,927, and one instance is given by the Lieutenant Genetai of six desertions by the same recruit. lam convinced that this number of desertions can be much diminished hy better discipline and treatment, but the punishment should be increased for repeated offenses. These desertions might also be reduced by lessening the term of first enlistments, thus allowing a discontented recruit to contemplate a nearer discharge, and the army a profitable riddance. After one term of service, a re-eiilist-ment would be quite apt to secure a contented recuuit and a good soldier. z .. COURTS MARTIAL. ... The acting Judge Advocate General reports that the number of trials by general courtsmartial during the year was 2,328, and that 1,851 trials took place before garrison and regimental co'irte-martiui. —The suggestionthttt'prob-' ably more than half tho army has been tried for offences great and small, in one year, may well arrest attention. Of course, many of these trials before garrison and regimental courts martial were for offenses almost frivolous, and there should, I think, be a way devised to dispose of these in a more summary and less inconvenint manner than by court martial. If some of the proceedings of courts martial which I have had occasion to examine present the ideas of justice which generally prevail in these tribunals, lam satisfied that they should be much reformed, if the honor and the honesty of the army and navy are by their instrumentality to be vindicated and protected. SEA-COAST DEFENSES. The Board on Fortifications or Other Defenses, appointed in pursuance of the act of Congress approved March 3, 1885, will in a short time present their report, and it is hoped that this may. greatly aid the legislation so necessary to remedy the present defenseless condition of our seacoasts.

SIGNAL SERVICE. The work of the Signal Service has been prosecuted during the last year with result of increasing benefits to the country. The field of Instruction has been enlarged, with a view of adding to its usefulness. The number of stations in operation Juno 30, 1885, was 489. Telegraphic reports are received daily from 460 stations. Reports are also received from 75 Canadian stations, 375 volunteer observers, 52 army surgeons at military posts, and 333 foreign stations. Tho expense of service during the fiscal year, after deducting receipts from military telegraph lines, was $797,592.97. In view of the fact referred to by the Secretary of War, that the work of this service ordinarily is of a scientific nature, and the further fact that it is assuming larger proportions constantly, and becoming more and more urisuited to the fixed rules, which must govern the army, I am inclined to agree with him in the opinion that it should be separately established, If this is done the scope and extent of its operations should, as nearly as jossible, be definitely prescribed by law, anil always capable of exact ascertainment WEST POINT ACADEMY. The military academy of West Point is reported as being in a high state of efficiency and well equipped for tho satisfactory accomplishment of the purposes of its maintenance. The fact that the class which graduates next year is an unusually large one, has constrained me to decline to make appointments to second lieutenancies in the army from civil life, so that such vacancies as exist in these places may be reserved for such graduates, and yet it is not probable that there will be enough vacancies to provide positions for them all when they leave the military schooL Under tho prevailing law and usage, those not thus assigned to duty never actively enter the military service. It is suggested that the law on this subject be changed so that snch of those young men as are not at once assigned to duty after graduation may be retained as Second Lieutenants in the army, if they desire it, subject to assignment, when opportunity occurs, under proper rules as to priority of selection. The expenditures on account of the Military Academy for the last fiscal year were $290,712.07. PRIVATE-PROPERTY CLAIMS. The act approved March 3, 1876, designed to compensate officers and enlisted men for loss of private property while in the service of the United States, is so indefinite in its terms, and apparently admits so many claims, the adjustment of which could not have been contemplated, that if it is to remain on the statute book it needs amendment. BRIDGES OVER NAVIGABLE WATERS. There should be a general law of Congress prohibiting the construction of bridges over navigable waters in such manner as to obstruct navigation, with provisions for preventing the same. It seems, that under existing statutes the Government' cannot intervene to prevent such a construction when entered upon without its consent, though when such consent is asked and granted upon condition, the authority te insist upon such condition is clear. Thus it is represented that, while the officers of the Government arc, with great care, guarding against the obstruction of navigation by a bridge across the Mississippi River at St. Paul, a large pier for a bridge has been built just below this place, directly in the navigable channel of the river. If such'things are to be permitted, a strong argument is presented against the appropriation of large sums of money to improve the navigation of this and other important highways of commerce. NAVAt AFFAIRS.

The report of the Secretary of the Navy gives a history of the operations of his departments and the present condition of the work committed to his charge. He details in full the cours'e pursued by him to protect the rights of the Government in respect of certain vessels unfinished at the time of his accession to office, and also concerning the dispatch boat Dolphin, claimed to be completed and awaiting the acceptance of the department. No one can fail to see, from the recital contained in this report, that only the application of business principles has been insisted upon in the treatment of these subjects, and that whatever contravers j- has arisen was caused by the exaction on the part of the department of the contract obligations as they were legally construed. In the case of the Dolphin, with entire justness to the contractor, an agreement has been entered into providing for the ascertainment by a judicial inquiry of the complete or partial compliance with the contract in her construction, and further providing for the assessment of any damages to which the Government may be entitled on account of a partial failure to perform such contract, or the payment of the sum still remaining unpaid upon her price in case a full performance is adjudged. The contractor by reason of his failure in business, being unable to complete the other three vessels, they were taken’possession of by the Government in their unfinished state, under a clause in the contract permitting such a course, and are now in process of completion in the yard of the contractor, but under the supervision of the Navy Department. Congress in its last session authorized the construction of two additional new cruisers and two gunboats, at a cost pot exceeding in the aggregate y 2,995,000. The appropriation for thia pturpose-havtog become available on the Ist div of July last, steps were at once taken for the procurement of sqch plans for the construction of these Vessels as would be likely to ensure their UfipfdJnejß when completed." These are of the uixuort importance, considering the

constant advance in the art of building vessels of thia character, and the time is - not lost which is spent in their careful consideration and selection. All must admit the importance of an effective navy to a nation like ours, having' such an extended sea coast to protect. Yet we have not a single vessel of war that could keep the seas against a first-class vessel of any important power. Such a condition ought not longer to continue'. The nation that can not resist aggression is constantly exposed to it. Its foreign i»l----icy is of necessity weak, and its negotiations are conducted with disadvantage because it is not in a condition to enforce the terms dictated by its sense of right and justice. ■ Inspired as lam by the hope, shored 'by all patriotic citizens, that the day is not far distant when our navy will be such as befits our standing among the nations of the earth, and rejoiced at every step that leads in tho direction of such a consummation, I deem it my duty to especially diredt the attention of , Congress to the close of the report of the Secretary of the Navy in which the humiliating features of the present organization of this department is exhibited, and the startling abuses and the waste of its present methods are exposed. The conviction is forced upon us, with the certainty of mathematical demonstration, that before wo proceed further in the sestoration of a navy, we need a thoroughly reorganized Navy Department. The fact that within seventeen years more than $75,000,000 has been spent in construction, repair, equipment, and armament of vessels, and the further fact that, instead of an effective and creditable fleet, we have only the discontent and apprehension of a nation undefended by war vessels, added to the disclosures now made, do not permit us to doubt that every attempt to revive our navy has thus far, for the most part, been misdirected, and all our efforts in that direction have been little better than blind gropings, and expensive, aimless follies. Unquestionably if we are content with the maintenance of a navy department simply as an ornament to the Government, a constant watchfulness may prevent some of the scandal and abuse which have found their way into our present organization, and its incurable waste may be reduced to the minimum. But if we desire to build ships for present usefulness instead of naval reminders of the days that are past, we must have a department organized for the work, supplied with all the latest and best ingenuity our country affords and prepared to take advantage of the experience of other nations, systematized so that all efforts shall unite and lead in one direction ; and fully imbued with the conviction that war vessels now are useless unless they combine all that the ingenuity of man has up to this day brought forth relating to their construction, I earnestly commend the portion of the Secretary's report devoted to this subject to the action of Congress, in the hope that the suggestions touching the'reorganization of his department may be adopted as the first step toward the reconstruction of our navy,

THE POSTAL SERVICE. The affairs of the postal service are exhibited by the rejxirt of the Postmaster General, which will be laid before you. The postal revenue, whose rates of gain upon the rising prosperity of 1882 and 1883 outstripped the increasing expense of our growing service, was checked by the reduction in the rate of letter postage, which took effect with the beginning of October ip the latter year, and it diminished during the two fiscal years $2,790,003, iu the proportion of $2,279,000 in 1884 to $520,000 in 1885. Natural growth and.development have, in the meantime, increased expenditure, resulting in a deficiency in the revenue to the expenses of the department of $5,250,000 for the year - 1884, and $8,330,833.33’3 in the last fiscal year. The anticipated and natural revival of the revenue has been oppressed and retarded by the unfavorable business condition of the country, of which tho postal service is a faithful indicator. The gratifying fact is shown, however, by the report, that our returning prospejity is marked by a gain of $380,000 in the revenue of the latter half of the last year over the corresponding period of the preceding year. The change in the rate of first-class matter which may be carried fer a single rate of postage from a half-ounce to an, ounce, and the reduction by one-half of the rate of newspaper postage, which, under recent legislation, begun with the current year, will operate to restrain the augmentation of receipts which otherwise might have been expected to shch a degree that the scale of expense may gain upon the revenue and cause an increased deficiency to be shown at its close ; yet after no long period of rewakened prosperity, by proper economy, it is confidently anticipated that even the present low rates, now os favorable as any country affords, will be adequate to sustain tho cost of the service. The operation of the Postoffice Department is for the convenience and benefit of the people, and the method by which they pay the charges of this useful arm of the public service, so tnat it be just and impartial, is of less importance to them than the economical expenditure of the means they provide for its maintenance, and the due improvement of its agencies, so that they may enjoy its highest usefulness. A proper attention has been directed to the prevention of waste.or extravagance, and good results appear from the reports to have already been accomplished.

DOMESTIC MONEY ORDERS. I approve the recommendation of the Postmaster General to reduce the charges on domestic money orders of $5 and less from 8 to 5 cents. This change wilk» materially aid those of our people who, most of all, avail themselves of this instrumentality, but to whom "the element of cheapness is of the greatest importance. With this reduction the system would still remain self-supporting. THE FREE-DELIVERY SYSTEM has been extended te nineteen additional cities during the year, and 178 now enjoy its conveniences. Experience has commended it to those who enjoy its benefits, and further enlargement of its facilities is due to other communities to which it is adapted In the cities where it has been established, taken together, the local postage exceeds its maintenance by nearly sL3od,<k)o. The limit to which this system is now confined by law has been nearly reached, and the reasons given justify the extension which is proposed. FOBEIGN-MAIL SERVICE. It was decided, with my approbation, after a sufficient examination, to be inexpedient for the Postoffice Department to contract for carrying our foreign moils under the additional authority given by the last Congress. The amount limited was inadequate to pay all within the purview of the law the full rate of 50 cents per mile, and it would have been unjust and unwise to have given it some and denied it it to others. Nor could contracts have been let under the law to all at a rate to have brought the aggregate within the appropriation without such practical pre-arrangement of terms as would have violated it The rate of sea and inland postage which was proffered under another statute clearly appears to be a fair compensation for the desired service, being three times the price necessary to secure transportation by other vessels upon any route, and much beyond the charges made to private persons for services not less burdensome. Some of the steamship companies, upon the refusal of the Postmaster General to attempt, by the means provided, the distribution of the sum appropriated, withdrew the services of their vessels, and thereby occasioned slight inconvenience, ♦ though no considerable injury. The mails have been dispatched by other means. Whatever may be thought of the policy of subsidizing any lino of public conveyance or travel, I am satisfied that it should not be done under cover of an expenditure incident to the administration of a department, nor should there be any uncertainty as to the recipients of the subsidy or any discretion left to an executive officer as to its distribution. If such gifts of public money are to be made for the purpose of aiding any enterprise in the supposed interest of the public, I cannot but think that the amount to be paid and the beneficiary might better be determined by Congress than in any other way.

THE POSTAL UNION. The International Congress of delegates from the postal union countries convened at Lisbon,: in Portugal, in February la#t, and after a session of some weeks the delegates signed a convention amendatory of the present Postal Union Convention in some particulars designed to advance its purposes. Illis additional act has had my approval, ahd will be laid before you with the departmental reports. I approve the recommendation of the Postmaster General that another assistant be provided for his department. I invite your consideration to the several other recommendations contained in his report. DBPABTMENT OF JUSTICE. The report of the Attorney General contains a history of the conduct of the Department of Justice during the last year, and a number of valuable suggestions as to needed legislation, and I invite your careful attention to the same. The condition of business in the courts of the . United States is such that there seems to be an imperative necessity for remedial legislation on the subject. Some of these courts are so overburdened with pending causes that the delays on determining litigation amount often to a denial of justice. Among the plans suggested for relief is one submitted by the Attorney General. Its fnain features are the transfer of all the original jurisdiction, of the Circuit Courts to the District Courts, and an increase of Judges for the latter where necessary; an addition of Judges to the Circuit Courts and constituting the exclusive courts of appeal and reasonably limiting 'appeals thereto; further restrictions of the right to remove causes from the State to Federal Courts, permitting, appeals to the Supreme Court from the courts of the District of Columbia and the 'Territories only in the same cases as they are allowed from State Courts, and guarding against,an unneces- ; sary number of appeals from the Circuit Courts, i I approve the plan thus outlined, and r— ~jus-

mend the legislation necessary for ita application to our judicial system. The present mode of compensating United States Marshals and District Attorneys shonld, in my opinion, be changed. They are allowed to charge against the Government certain fees for service, their incomes being measured by the amount of such fees within a fixed limit to their’ annual aggregate. This is a direct inducement for them to make their fwa in criminal cases as large as possibla in an effort to reach the maximum sum permitted. As an entirely natural consequence unscrupulous Marshals are found encouraging frivolous prosecutions. arresting people on petty charges of crime and transporting them to distant places for .exanination and trial, for the purpose- of earning mileage, and other fees, and District Attorney’s uselessly attend criminal examinations far from Xhefr places of residence for the express purpose of swelling their accounts against the Government. The actual expenses incurred in these transactions are always charged against the Government. Thus the rights and freedom of our citizens are outraged, and public expenditures increased for the purpose of furnishing public officers pretexts for increasing the measure of their compensation. I think Marshals and District Attorneys, should be paid salaries adjusted by a rule which will make them commensurate with services fairly rendered. punishing Misdemeanors. In connection with the subject, I desire to suggest the advisjibility, if it be found not obnoxious to constitutional objection, of . investing United States Commissioners with tho power to try and determine certain violations of law within the grade of misdemeanors. Such trials might be made to depend upon tho option of the accused. The multiplication of small and technical offenses, especially under the provisions of our Internal Revenue law, renders some change in our present system very dpsirable, in the interests of humanity as well ns economy. The District Courts are now crowded with petty prosecutions, involving a punishment, in case of conviction, of only a slight fine, while the parties accused are harassed by an enforced attendance upon the courts held hundreds of miles from their homes. If poor and friendless, they are obliged to remain in jail, and months, perhaps, elapse before a session of the court is held, and are finally brought to trial surrounded by strangers, and with but little opportunity for defense, tn the meantime frequently the Marshal has charged against the Government his fees for an arrest, the transportation of the accused and the expense of the same ; and for summoning witnesses before a Commissioner, a Grand Jury and a court, the witnesses have been paid froifi the public funds large fees and traveling expenses, and the Commissioner and District Attorney have also made their charges against the Government. This abuse in the administration of our criminal law should be remedied, and if the plan above suggested is not practicable, some other should be devised.

INTERNAL AFFAIRS. The report of the Secretary Of the Interior, containing an account of the operation of this important department and much interesting information, will be submitted for your consideration. The, most intricate and difficult subject in charge of this department is the treatment and management of <_ THE INDIANS. I am satisfied that some progress may be noted in their ' condition as A result of a prudent administration of the present laws and regulntious for their control; but.. it is iß.utt mitted that there is lack of a fixed purpose of policy on this subject which should be supplied. It is useless to dilate upon the-wrongs of the Indians, and as useless to indulge in the heartless belief that because their wrongs ore revenged in their own atrocious manner, therefore they should be exterminated. They are within the cure of our Government, and their rights are, or should be protected from invasion by the most solemn obligations. They are properly enough called the wards of the Government, and it should be borne in mind that this guardianship involves on our part efforts for the improvement of their condition and the enforcement of their rights. There seems to be general concurrence in the proposition that the ultimate object of their treatment should be their civilization and citizenship. Fitted by these to keep pace in the march of progress with the advanced civilization about them, they will readily assimilate with the mass of our population, assuming the responsibilities and receiving the protection incident to this condition. The difficulty appears to be in the selection of the means to be at present employed toward the attainment of this result. Our Indian population, exclusive of those in Alaska, is reported as numbering 260,000, nearly all being located on lands set apart, for their use and occupation, aggregating over 134,000,000 of acres. These lands are included in boundaries of seventeen reservations of different dimensions, scattered in twenty-one States and Territories, presenting great variations in climate and in tho kind and quality of their soils. Among Indians upon these several reservations there exists the most marked differences in natural traits and disposition, and in their progress toward civilization. While some are lazy, vicious, and stupid, others are industrious, peaceful and intelligent. While a portion of them are self-supjxjrting and independent and have so fur advanced iu civilization that they make their own laws, administered through officers of their own choice, and educate their children in schools of their own establishment and maintenance, others still remain in squalor and dependance almost in the savagery of their natural state. In dealing with this question the desires manifested by the Indians should not be ignored. Here again we find a- great diversity. With some the tribal relation is cherished with the utmost tepacity, while its hold upon others is considerably relaxed. The love of home is strong with all, and yet there are those whose attachment to a particular locality is by no means unyielding. The ownership of these lands in severalty is much desired by some, while by others and sometimes again the most civilized, such a distribution would be bitterly opposed. The variation of their wants growing out of and connected with the character of their several locations should be regarded. Some are upon reservations most fit for grazing, but without flocks or herds, and some on arable land have no agricultural implements, while some of tho reservations are double the size necessary to maintain the number of Indians now upon them. In a few cases, perhaps, they should be enlarged. Add to all this the difference in the administration of the agencies, while the same duties are devolved upon all, the disposition of the agents and the manner of their contact with the Indians have much to do with their condition and welfare. The agent who perfunctionarily performs his duty and slothfully neglects all opportunity to advance their moral and physical improvement, and fails to inspire them with a desiijg for better things, will accomplish nothing in the direction of their civilization, while he who feels the burden of an important trust and has an interest in his work will, by consistent examples, firm, yet considerate treatment, and well-directed aid and encouragement, constantly' lead those under his charge toward the light of their enfranchisement. The history of all the progress which has been made in civilization of the Indian, I think, will disclose the fact that the beginning has been religious teaching, followed by or accompanying secular education, while the self-sacrificing and pious men and women who have aided in this good work by their independent endeavors have for their reward the beneficent result of their labor and consciousness of Christian duty well performed. Their valuable services should be fully acknowledged by all who, under the law, are charged with the control and management of our Indian wards. What has been said indicates that in the present condition of the Indiana no attempt should be made to apply a fixed and unyielding law of action to their varied and varying needs and circumstances. The Indian Bureau, burdened as it is with this general oversight, and with the details of the establishment, can hardly possess itself of the minute particulars of cases -needing treatment, and thus the propriety of creating an instrumentality auxiliary to those already established ' for the care of the Indians, suggests itself. I recommend the passage of a law authorizing the appoistmeht of six commissioners, three of whom shall be detailed from the army, to be charged with the duty of a careful inspection from time to time of all the Indians ujxm our reservations or subject to the care and control of the Government, with a view of discovering their exact condition and needs, and determining what steps thall be taken on behalf of the Government to improve their situation in the direction of their self-support and complete civilization. That they ascertain from such inspection what, if any, pf the reservations may be reduced in ai-ea, and in such cases what part, not needed for Indian occupation, may be purchased by the Government from the Indians and disposed of for their benefit; what, if any, Indians may, with their consent, be removed to other reservations, with a view of their concentration, and the sale on their behalf of their abandoned reservations; what Indi anlands now held in common should be allotted in severalty; in what manner and to what extent the Indians upon the reservations can be placed under the protection of our laws and subjected to their penalties, and which, if any, Indians should be invested with the right of citizenship. The powers and functions of the Commissioners in regard to these subjects should be clearly defined, though they should, in conjunction with the Secretary of . the Interior, be given all the authority to deal definitely with the questions presented, if deemed safe and consistent. SURVEYING INDIAN LANDS. The expense of tlj< Indian Bureau during the last fiscal year was more than $6,500,000. I believe muejref thia expenditure may be saved under -JttiS plan proposed; that its economical effects would be increased with its continuance; that the safety of our frontier settlers woflld be

subserved under Its opM|ation, and that the nation would be saved through its results from the imputation of Inhumanity, injustice, and mismanagement. In order to carry ont the policy of allotment of Indian lands in severalty, when deemed expedient, it will be necessary to have surveys completed of the reservations, and I hope that provision will be made for the prose.-' cution of this work. « They shonld also be charged with the duty of ascertaining the number <rf Indians who might properly be furnished with implements of agriculture, and of what kind; in what cases tho support of the Government should bo' withdrawn; where the present plan of distributing Indian supplies should lie changed'; where schools may be established, and where discontinued; the conduct, method and fitness of agents in charge of reservations; the- extent to which such reservations are occupied or intruded nj>on by unauthorized persons, and generally all matters relating to the welfare and improvement ,of the Indian. They should advise with the Secretary of the Interior concerning those matters of detail in management, and he should be given power to deal with them fully, if he is not now invested with such power. This plan contemplates the selection of such persons for commissioners who are interested in the Indian question, and who have practical ideas on the subject of their treatment.

INDIAN TROUBLES. In May of the present yehr a small portion of the Cliiricahua Apaches on the White Mountain Reservation in Arizona left the reservation and comihitted a number of murders upon settlers in that neighborhood. Though prompt and energetic action was taken by the military, the renegades eluded capture and escaped into Mexico. The formation of the country through which these Indians passed, their thorough acquaintance with the same, the speed of their escape and the manner in which they scattered and concealed themselves in l the mountains near the scene of their outrages, put our soldiers at a great disadvantage in their efforts to capture them, although the expectation is still entertained that they will ultimately be taken and punished for their crimes. INDIAN RESERVATIONS PROTECTED. The threatening and disorderly conduct of the Cheyennes, of the Indian Territory, early last summer, caused considerable alarm and uneasiness. Investigation proved that their threatening attitude was due, in a groat measure, to the occupation of the land of their reservation by immense herds of cattle, which their owners claimed were rightfully there under certain leases made by the Indians. Such occupation appearing,, upon examination, to be unlawful, notwithstanding these leases, the intruders wore ordered to remove with their cattle from the land of the Indians by the Executive proclamation. The enforcement of this proclamation had the effect of peace and order among the Indians, and they are now quiet and well behaved. By an Executive order issued on February 27, 1885, by my predecessor, a portion’ of the tract of country in the territory known as the Old Winnebago and Crow Creek Reservations was directed to be restored to the public domain and opened to settlement, under the land laws of tho United States, and a largo number of persons entered upon those lands. This action affirmed tho Sioux Indians, who churned the territory as belonging to tlieir reservation under the treaty of 1808. This claim was determined, after careful investigation, to be well founded, and consequently the Executive order referred to was, by proclamation of April 17, 1885, declared to bo inoperative and of no effect, and all persons upon the land were Warned to leave. This warning has been substantially complied with.

OUR PUBLIC LANDS. The public domain had its origin in cessions of lend by the States to tho General Government. The first cession was made by the State of New York, and the largest, which in area exceeded all the others, by the State of Virginia. The territory, the proprietorship of which became thus vested in tho General Government, extended from the western lin«-of Pennsylvania to the Mississippi River. These patriotic donations of the States were incumbered by no condition, except that they should be held and used “for the common benefit of the United States." By purchase with the common fund of all the people additions were mode to this domain until it extended to the northern line of Mexico, the Pacific Ocean, and the Polar Sea, The original trust “for the common benefit of the United States" attached to all. In the execution of that trust the policy of “many homes rather than large estates" was adopted by the Government. That those might be easily obtained and be the abode of security and contentment, the laws for their acquisition were few, easily understood, and general in their character. But the pressure of local interests, combined with a speculative spirit, has in many instances procured the passage of laws which marred the harmony of the general plan and encumbered the system with a multitude of general and special enactments which render the land laws complicated, subject the titles to uncertainty and the purchasers often to oppression and wrong. Laws which were intended for the “common benefit" have been perverted so that large quantities of land ore vested in single ownership. From the multitude and character of the laws this consequence seems incapable of correction by mere administration. It is not for the common benefit of the United States that a large area of the public lands should be vested, directly or through fraud, in the hands of a single individual. The nation’s strength is in the people. The nation’s prosperity is in their prosperity. The nation’s glory is in the equality of her justice. The nation’s perpetuity is in the. patriotism of all her people. Hence, as*for a? practicable, the plan adopted in the disposal of the public lands she Id have in view the original policy, which encouraged many purchases of these lands for homes and discouraged the massing of large areas. Exclusive of Alaska, about three-fifths of the national domain has been sold or subjected to contract or grant. Of the remaining • two-fifths a considerable portion is either mountain or desert. A rapidly increasing population creates a growing demand for homes, and accumulation of wealth inspires an eager competition to obtain the public land for speculative purposes. In the future this collision of interests will be more marked than in the past, and the execution of the nation’s trust in behrulf of our settlers will be more difficult. I therefore commend to your attention the recommendations contained in the report of the Secretary of the Interior with reference to the repieal and modification of certain of our land laws. •

RAILROAD LAND GRANTS AND SUBSIDIES. The nation has made princely grants and subsidies to a system of railroads projected as great national highways to connect the Pacific Sjtates with tho East, it has been charged thawhese donations from the people have been diverted to private gain and corrupt tfses, and thus public indignation has been aroused, and suspicion engendered. Our great nation does not begrudge its generosity, but it abhors peculation and fraud, and the favorable regard of our people for the great corporations to which these grants were made can only be revived by a restoration of confidence, to be secured by their constant, unequivocal and clearly manifested integrity. A faithful application of the undiminished proceeds of the grants to the construction and perfecting of their roads, an honest discharge of their obligations and entire justice to all tho people in the enjoyment of their rights on these highways of travel, is' all the public asks, and it will be content With no less. To secure these things should be the common purpose of the officers of the Government, as well as of the corporations. With this accomplished, prosperity would be permanently secured to the roads and national pride would take the place of national complaint. THE PATENT OFFICE. The operations of the patent office demonstrate the activity of the inventive genius of the country. For the year ended June 30,1885, the applications for patents, including reissues, and for the registration of trade-marks and labels, numbered 35.C88. During the same period there were 22,928 patents granted and reissued, and 1,429 triule-marks and labels registered. The number of patents issued in the year 1875 was 14,387. The receipts during the last fiscal year were $1,074,974.35, and the total expenditures, not including contingent expenses, &34,123.1 L There was 9,788 applications for patents pending on tho first day of July, 1884, and 5,786 on the same date in l the year 1885. There has been considerable improvement made in the prompt determination of applications and a consequent relief to expectant inventors. A number of suggestions and recommendations are contained in the report of the Commissioner of Patents which are well entitled to the consideration of Congress. POLYGAMY. In the Territory of Utah the law of the United States passed for the suppression of polygamy has been energetically and faithfully executed during the past year with measurably good results. A number of convictions have been secured for unlawful cohabitation, and in some cases pleas of guilty have been entered and ■light punishment imposed upon promise by the accused that they would not again offend against the law, nor advise, counsel, aid, or abet in any way its violation by others. The Utah Commissioners express the opinion based upon such information as they are able to obtain, that but few polygamous marriages have taken place in the Territory during the last year. They further report that, while tßere cannot be found upon the registration lists afr voters tho name of a man actually guiltv of polygamy, and while none of, that class'are holding office, yet, at the last election in the Territory, all the oflicera elected except in one comity were men who, though not actually livingin the practice of polygamy, subscribed'to the doctrins of polygamous marriages as a divine ; revelation and. a law unto all, higher , and more bihiling ■ upon the constience j than any human law, local or national. I

This is the strong •pectacle presented by a community protected by a republican form of government to which they owe allegiance, sustaining By their suffrages a principle and a belief which sets at naught that obligation of absolute 01/edience to the law which lies at the foundation of republican institutions. The strength, the perpetuity, and tho destiny of the nation rest uj>on our homes established by the law of God, guarded Uy parental care, regulated by parental authority, and sanctified by parental love. These are not the homes of polygamy. 'The mothers of our land who rule tho nation as they would the characters, and guide the actions of their sons, live according to God's holy ordinance, and each, pure and happy in the exclusive love of the father of her children, sheds the warm light of true womanhood, unperverted and unpolluted, upon all within her pure and wholesome family circle. These are not" the cheerleM. crushed, and unwomanly mothers of polygamy. The fathers of our families are the best citizens of the Republic; wife and children are the sources of patriotism, and conjugal and parental affection beget devotion to country. Tne man who, tindefiied with plural marriage, is surrounded in his single home with his wife and children, has a stake in the country which inspires him with respect for its laws and courage for their defense. These are not the fathers of polygamous families. There is no feature of this practice or the system which sanctionsit which is not opposed to all that is of value in our institutions. There shonld be no relaxation in the firm but just execution of the law now in operation, and I should be glad to approve such further discreet legislation as will rid this country of this blot upon its fair fame. Since the people upholding polygamy in our Territories are re-en-forced by immigration from other lands, I recommend that a law be passed to prevent the importation of Mormons into the country. ANIMAL DISEASES. The prohibition of the importation into several conntrios of certain of our animals and their products, based upon the suspicion that health is endangered in their use and consumption, suggests the importance of such precautions for the protection of our stock of all kinds against disease oa will disarm suspicion of danger and cause the removal of such an injurious prohibition. If the laws now in operation ore insufficient to accomplish this protection, I recommend their amendment to meet the necessities of the situation, and I commend to the consideration of Congress the suggestions contained in the report of the Commissioner of Agriculture calculated to increase tht> value and efficiency of this department.

CIVIL-SEBVICE REFORM. The report of the Civil-Service Commission, which will be submitted, contains an account of the inanner in which the Civil-Serviee law has been executed during the last year and much valuable information on this important subject. I am inclined to think that there is no sentiment more general in the minds of the people of our country than a conviction of the correctness of the principles upon which the law enforcing civil service reform is based. In its present condition the law regulates only part of the subordinate public positions throughout tho country. It applies tests of fitness to applicants for these places by means of a competitive examination and gives large discretion to the eommi'WOners as to the characterof the examination and.many other matters connected with ita execution. Thus tne rules and regulations adopted by the commission have much to do with the practical usefulness of the statute and with the results of its application. The people may well trust the commission to execute the law with perfect fairness and with as little irritation as is possible. But of course no relaxation of the principle which underlies it and no weakening of the safeguards which surround i£can be expected. Experience in its administration will probably suggest an amendment of thp methods of its execution, but I venture to hope that we never shall again be remitted to the system which distributes public positions purely as rewards for partisan service. Doubts may well be entertained whether our Government could survive the strain of a continuance of this system, which, upon every change of administration, inspires an immense army of claimants for office to lay siege to the patronage of the Government, engrossing fce the time of public officers with their importunities, spreading abroad the contagion of their disappointment, and filling the air with the tumult of their discontent. The allurements of an immense number of offices and places exhibited to the voters of the land, and the promise of their bestowal in recognition of partisan activity, debauch the suffrage and rob political action of its thoughtful and deliberative character. The evil would increase with the multiplication of offices consequent upon our extension, and the mania for office-holding, growing from its indulgence, would pervade our population so generally that patriotic purpose, the desire for the public good and solicitude for the nation's welfare, would be nearly banished from the activity of our party contests and cause them to degenerate into ignoble, selfish and disgraceful struggles for the possession of office and public place. Civil-service reform, enforced by law, came not too soon to cheek the progress of demoralization. One of its effects, not enough regarded, is the freedom it brings to the political action of those conservative and sober men who, in fear of the confusion and risk attending an arbitrary and sudden change in all the public offices with change of party rule, cast their ballots against such a change. „ • Parties seem to be necessary, and will continue to,exist. Nor can it be now denied that there are legitimate advantages not disconnected with officeholding which follow party supremacy. While partisanship continues bitter and pronounced, and supplies so much of motive to sentiment and action, it is not fair to hold public officials, In charge of important trusts, responsible for the best results in the performance of their duties and yet insist that they shall rely, in confidential and important places, upon the Work, of those not only opposed to them In political affiliation, but so steeped in partisan prejudice and rancor that they have no loyalty to their chiefs and no desire for their success. Civil service reform does not exact, this, nor does it require, that those in subordinate position who fail in yielding their best service, or, wbo are incompetent, should be restrained simply because they are in place. The whining of a clerk discharged for indolence or incompetency, who, though he gained his place by the worst possible operation of the * spoils system, suddenly discovers that he is entitled.to protection under the sanction of civil service reform, represents an idea no less absurd than the clamor of the applicant who claims the vacant position as his compensation for the most questionable party work. The civil-service law does not prevent the dischargeof the Indolent or incompetent cleric, but it does prevent supplying his place with the unfit party worker. Thus in both the phases is . seen benefit to the public service. And the people, who desire good government, having secured this statute, will not relinquish •its benefits without protest, nor are they unmindful of the fact that its full advantages can only be gained through the complete good faith of those having its execution in charge, and this they will insist upon. I recommend that the salaries of the Civil Service Commissioners be increased to a sum more nearly commensurate with their important "duties.

THE GOVERNMENT LIBRARY. It is a source of considerable and not unnatural discontent that no adequate provision has yet been made for the accommodation of the principal library of the Government. A consideration of the fact that the library of the Capitol has twice been destroyed or. damaged by fire, its daily increasing value and its importance as a place of deposit for books under the law relating to copyright make manifest the necessity of prompt action to insure its proper accommodation and protection. DISTRICT MATTERS. My attention has been called to a controversy which has arisen from the condition of the law relating to railroad facilities in the city of •« Washington, which has involved the Commissioners of the District in much annoyance and trouble. I hope the difficulty will be prctoptly settled by appropriate legislation. THE PRESIDENTIAL SUCCESSION. The present condition of the law relating to the succession to the Presidency in the event of the death, disability, or removal of both the President and Vice President, is such as to require immediate amendment, This subject has repeatedly been considered by Congress, but no result has been reached. The recent lamentable death of the Vice President and the vacancies at the same time in all other offices, the incumbent of which might immediately exercise the functions of the Presidential office, has caused public anxiety and a just demand that a recurrence of such a condition of affairs should not be permitted. CONCLUSION. ' In conclusion, I commend to the wise care and thoughtful attention of Congress the needs and the welfare of the American Nation. To subordinate. these to the narrow advantage* of partisanship or the acaampKahment of vselfish aims is to violate the people’s trust and betray the people's interest. But an individual sense of responsibility on the < part of each of ns, and a stern determination to perform our duty well, must give us place among those who have added, in their day and generation, to the glory and prosperity of our beloved land. (Signed) Grover Cleveland. Washington, Dec. 8,1885. * When a fellow is pretty well on in years, and certain portions of him have dropped away, such as hair and teeth, why can’t he confess it ?