Rensselaer Republican, Volume 19, Number 14, Rensselaer, Jasper County, 9 December 1886 — THE MESSAGE. [ARTICLE]

THE MESSAGE.

President Cleveland’s Annual Communication to Congress. Our Foreign Relations in a Highly Satisfactory Condition. A Reduction of the Surplus Revenue Earnestly Urged. He Renews His Recommendation for a Suspension of Silver Coinage. The Fishery Troubles—The Cutting Case—Civil-Ser-vice Reform. Citizenship and NaturalizationInterstate Traffic-Capi-tal and Labor. The United States and China Negotiating Regarding Chinese Im migration. The Necessity for Coast Defenses t Explained and Urged Upon i. Congress. A Proposition to Establish National Prisons for Federal .1 Convicts. ! __ To the Conrress of the Uni'eil Sbitrs: In the discharge of a constitutional duty, and following a well-establisfi.ed precedent in the Executive office, I herewith transmit to the Congress, at its reassembling, certain information concerning the state of the Union, together ■with such recommendations for legislative consideration as appear necessary and expedient. FOREIGN RELATIONS. The Government has consistently maintained its relations of friendship toward all other powers, and of neighborly interest toward those whose possessions are contiguous to our own Tew questions have arisen during the past year with other Governments, and nine of those are beyond the reach of settlement in a friendly maimer ’ CLAIMS AGAINST-THILL. Ji We are as yet without provision for the settlement of claims of citizens of the United States against Chili for injuries during the late war with Peru and Bolivia. The Mixed Commissions, organized under' claims conventions, concluded by the Chili Government with certain European states, have developed an amount of friction which we trust can be avoided iii the conventioti whiehour representative at Santiago. is authorized to negotiate. - THE CHINESE QUESTION. The cruel treatment of inoffensive Chinese b.s, T reeri-t to say, been repeated, in some of ~ the far Western States and Territories, an! acts of violence against these people lieyond the power of the local constituted authorities-to prevent and difficult to punish, are reported even in distant Alaska. Much of this violence can be traced to race prejudice and competition of labor, which cannot, however, justify the oppression of strangers whoso safety is guaranteed by our treaty with China equally with the most favored nations. In opening our vast domain-to alien settlement, the purpose of our lawgivers was to invite assimilations and not to provide an arena for endless antagonisms. The •paramount -duty. .......of. . . maintaia-ug. -publicorder and defending the interests of our people may require the adoption of measures of restriction, but they should not tolerate the oppression of individuals of a special race. lam not without assurance that the Government of China, -whose friendly disposition toward us I am most happy to recognize, will meet us half way iw devising a comprebeusible remedy, by Which an effective limitation of Chinese emigration, joined to pro- , tection of those Chinese subjects who remain in this country, may be secured. 1 egi-ln i >ll is needed to execute the provisions of our Chinese contention of 1889 touching the opium traffic. INTHHOCEANIC. TRANSIT? While the good-Will of the Colombian Government toward our country is manifi st, tbs situation of American interests on the Isthmus of Panamfc has at times elicited concern, and invited friendly action looking to the performance of the eng -gemeuts of the two nations concerning the territory embraced in the iiiteroceamc transit With the subsidence of the Isthmian disturbances and the erection of the State of Panama into a Federal district under the direct government of the constitutional administration at Bogota, a new order of things has been inaugurated, which, although as yei somewhat experimental'and affording sro;>e for arbitrary exercise of power by the delegates of the national authority, promises much improvement,.

THE “I.rBERIY- STATUE. The sympathy between the people of the United States and France, lawn during dur colonial stfiii'gle for independence, and coutinumg to-day .lias received a fresh Jmpulse Tn the successful completion and dedication of the colossal statue of ‘Liberty Flnlizhtening the World,” in New York harbor, the gift of Frenchmen to Americans. SUBMARINE CABLES. A convention between the Unite ! Slates and certain other powers for the protection of submarine cables was signed al Paris onAlarch 1!. 1884, a id has been duly ratified and proclaimed by this Government., By j, agreement between the high coutractin.' parties. this convention is to go into effect the Ist of January next, but the legislation, required for its execution In the United States has' not yet been adopted. I earnestly recommend its enactment.. ... NATURALIZED GERMANS ABROAD. “ Cases pave continued to occur in Germany giving rife to much vorzesiavmleiiee in relation, to the privilege of sojourn of our naturalized citizens of German.origin revisiting the land of their birth, yet I auftlappv to state that our relations with that country have lost none of their ' accustomed cordiality.” ’ —■ ~“- tonnage ruff§. n . The claims for interest upon the amount of tonnage dues illegally exaet -d from certain German steamship lines were favorably reported in both houses of Congress at the last session, and, I trust, will receive final and favorable attention at an early day. " THE FISHERY TkOUIftES. The recommendation contained in my last annual message in relation to a mode of settlement the fishery rights in the waters of British North America, so long a subject of anxious difference between the Unit d Mates and Great Britain, was met by an adverse vote of the Senate April 13th last, and there upon negotiations ■were instituted So obtain an agreement with Her Britannic Majesty's Government lor the promulgation of. .such point interpretation and definition of the article of the convention of 1818, relating to the Territorial waters and rtnshore fisheries of ths British provinces, as should secure the Canadian rights from encroachment by United States fishermen, and. at the same trine, insure the enjoym nt by the latter of the privileges guaranteed to them by sueh convention. The questions involved are of long standing, of -grave consequence, and from time to time for neariv three-quart-rs of a century have

given rise to earnest international discussion, not unaccompanied by irritation. TeStporarv arrangements by treaties have served-to allay friction, which, however, has revived as each treaty lias terminate 1. j The last arrangement, under the treaty of 1871, was abrogated, after duo notice by the United States, on June 30, iBBS, but I was enabled to obtain for our fislrt-men for remainder of that season enjoyment of the full privilege* accorded by the terminating treaty. The Joint Commission by whom the treaty hsd been negotiated, although invested with plenary power to make a permanent settlement, were content with a temiHirary arrangement, after th® termination of which the question was relegated to the Stipulations of the treaty of 1818. as to, the first article of which no construction satisfactory to both countries has ever been agref d upon. The progress of civilization and growth of population in the British provinces to which the fisheries in question are contiguous, ami the expansion l of commercial inter ourse between them and the Unite i States, nrosent a condition of affairs scarcely realizable at the date of th- negotiation's of 1818. New and vast interests have boon brought intoexlstetioe. Modesof intercourse between the respective countries have been invented ami multiplied ; the methods of conducting the fisheries have been wholly changed; and all this is necessarily entitled to candid and careful consideration in the adjustment of the terms and conditions of intercourse and romitteiw between tlie United States and their no ghbors along a frontier ot over 3,509 miles. This propinquity, community of language and occupation, and similarity ot political and social institutions, indicate the practicability and Obvious wind in of maintaining mutually beneficial and friendly relations. While I i.in iinfeignedly desirous that such relations should exist between us and the Inhabitants of Canada, yet the action of ttjeir officials during the past season tow in d our lishormeu has been such as to seriously threaten their continuance. Although dijsapi>oiiited in my efforts to secure a satisfactory settlement of the fishery question, negotiations are st,II pending with reasonable hojie that before the close of the present Bion of Congress the announcement may bo made that an acceptable conclusion has been reached. At an early day there may bo laid before Congress the correspondence of the Department of State in relation to this important subject, go that the history of the past fishing season may be fullv disclose I and the action and the attitude of the administration clearly comprehended. More extended reference is not deemed necessary in this communication. TllE ALASKA BOUNDARY. The recommendation submitted last year that provision be made for a preliminary reconnoissance of the conyentfonalhoundary line between Alaska and British Columbia, is ronewed. ’ THE HAWAIIAN ISLANDS. the intimacy of our relations with Hawaii should lie emphasized. As a result of the reciprocity' treaty of 1875, those islands, on the highway of oriental aud Australian traffic, are virtually an outpost of American commerce and a stepping-stone to the growing trade of the Pacific. The Polynesian island groups have been so absorbed by other and more powerful governments, that the Hawaiian Islands are left almost alone in tlio enjoyment of their autonomy which it is important for us should be preserved. Our treaty is now terminable on one year’s notice, hut propositions to abrogate it would be, in my judgment, most ill-ad used. The paramount influence wu have there acquired, once relinquished, could only with difficulty be regained, und a valuable coign of vantage for ourselves might be converted into a stronghold for our commercial compet'd >rs. I earnestly recommend that the existing treaty stipulations be extended for a futnor term ot seven years. A recently signed treaty to this end is now before the Senate. The imi>ortance of telegraphic communication between these islands and the United States should notbe overlooked. UE&moxs with japan. Theqneation of a general revision of the treaties of Japan is again under discussion at Tokio. As the first to open relations with that em,' pire and as the nation in most direct commercial,relation with Japan, the United States have lost no opportunity to testify their consistent friendship by supporting the just claims of Japan to autonomy and independence among nations: A treaty of ext,edition between the United States and Japan, the first concluded by that empire, has been lately proclaimed. Tin: WEAKNESS OF. LIBERIA. s and the difficulty of maintaining effective sovereignty over its outlying districts have exposed that republic to cncroachuient. It can not be forgotten that tins distant community is an oft'-: shoot of our own system, owing its origin to the associated benevolence of American citizens, whose praiseworthy efforts to create a nucleus of civilization in the dark'continent liavb commanded respe.’t and sympathy every where; espaciallv in this* country. Although a formal protectorate over Liberia is contrary to our traditional policy, the moral right und duty ot the United State* to assist in all proper ways the maintenance of its integrity is obvious, and has been consistently announced during nearly half a century. I reccoinmend that iu the reorganization of our navy, a small vessel, no longer found adequate to our needs, lie presented to I .ilmra tn .Ua-empltwaA-by-it-in-the protectiauof its coastwise revenues. .... Ol 11 SISTER REPUBLIC. The encouraging development of beneficial . ami intiinata relut.ons between, the. .United. States and Mexico, which has been so marked within the .past few years, is at once the occasion of congratulation aud of friendly solicitude. I urgently renew my former representation of the need of speedy legislation by Congress to carry into effect the reciprocity commercial convention of January, (20, 1883. Our commercial treaty of 1831 with Mexico was terminated according to its provisions in 1861. upon the notification given, uy Mexico, in pursuance of her announced pol--tey-ot reeueting wll- her commercial, treaties. Mexico has since concluded with several lor- ■ eig-n—governmems new teeuties of eommewee and navigation defining alien rights of trade, property, and residence, treatinent ot shipping, consular privileges, and the like. Our yet Unexecuted reciprocity c nvention cf 18'3 cov,rs none ofThese jmiuts. the se.tlement ot which is so necessary to goo ; ielationsuij>, and p .opose to mit ate w.tu M?xic.> negotiations for a new and enlaig. d treaty of commerce and uavigat.o.i. TfiE ctriT N ; case. . In compliance aith a resolution ot the Senate I communica ,ed to that body bn Aug .st 2 last, and also to the House of hepresen wives, the correspondence in tiie case oi A. K. Cutting, an American ci i.’.eir, th n imprisoned in Mexico, charged with the commission of a penal offense in Texas, of which h Mexican citizen was the object. After a demen t liai oeen made for Ins release the charge against him was amended so ms tn inelixla ft vinlnt.inn nf MftYinan LIW within

Mexican territory. This joinder of ...alleged offenses, <riio witniii mid the other exterior to Mexico, induced me to order, a special investigation of the case, ponding which Mr. Cutting was released/.iW incident has. however, disclosed a claim for jurisdiction by Mexico novel in our history, whereby ,any offense, committed any where’ by a foreigner, penal in the place oi its Commission, and ot whielre a Mexican is the-object, may, if the offender be found in Mexico, be there tried and punished imconformity with Mexican laws. Jurisdictioii was sustained by the courts of Mexico in the Cutting case and approved by the executive branch of that Government upon the authority ot the Mexican statute, Tho Appellate -Court, in releasing. Air, Cutting, deCiue l that the abau-lonmcnt bv the Mexican citizens aggrieved toyrths ahegy'd; Criipe ia libelous pubftcatibn i. removed the basis' of J,urtKer prosecution, and also deeigred justice to .have been satisfied by the enforeemeiit of a small part of the original sentence. Tlie a ImiSsibn vs such a pretension wauld lie attended with serious rossUa invasive, of,-tho-juriadiciten this-Goy—- . eniment, and highly dangerous,to our. in iojroign lauits; therefore I have dented it, and protested against its attempted exercise, as unwarranted by the principles of. , law and imermit'.onai usage, A. sovereign ; has jurisdiction of eitenses which take. e:f,-ct within his territory, although concerted or commeaeed btltside of it. but the rignt is denied of any foreign sovereign to punish u citizen of the United States fur nu offense consummated on i our soil in Violation of our laws, even though "the offense be against a subject or citizen of > such sovereign. The Mexican statute in question makes the claim broadly. and the principle; if conceded, would create a dual resiKinsibility iii the "Citizen , and lefcl" to a" cbnftiSloh destructive of "that certa'uty in the law which j-is an essential of liberty. When citizens ; of the United States voluntarily go into a for- ! eign country they must abide by the law's there ittforiferßna will not be protected by their own Governm- nt from ths consequences of an offense against those laws committed in such foreign country I'TOtwyafchfuTcare ar.d intires' of this Government over its citizens are not relinquished because they have gone abroad, and if charged with crime c immitted in a foreign land, a fai r and open trial, conducted with decentregardforjnsrcreandhuinahrtv.wnibe demanded for them. With less than that this Government w,ll not be content, when thelife or liberty of its citizens is at st.ike. Whatever the degree to which extra territorial ciminal jurisdiction may have been formerly allowed .by consent and reci urocal agreement among certain of the European states, no s uch doctrine or practice was ever tnawii to the laws of this countrv, or of that from which our institutions have mainly been .derived. In the case of Mexico there are reasons espef daily strong for perfect Uurmonv in the actual exercise- erf— jurisdiction Nature has made us irrevocably neighbors, and wisdoin and kind feeling should make us friends. The dyorfiow oi capital and enterprise from the

rrr-~ United Ktates i* a potent factor in ass if ting the development or the resources of Mexico, uud in building up the property of both countries. * Ta assist this good work, all grounds of apprehension'for tbii security of person anl property should lx, removed, and trust that, iu the 'interests of good iieiqhiiorhoixl, the statute referred to will bo nuxliflixl s > us to eliminate the preseutleiaaibtliUes of danger to the peace of the two countries. THE NETHEBLANnS. The Government of the Netherlands has. exhibited concern in relation to certain feature i. of our tariff laws, which are supposed l«y £jj <ui to be aimed xit a class of t>o «:.:o pr dueed in the Dutch East Indies. Commeot would seem uniiecesaary upon tlie unwisdom of legislation appearilig to have a special nati nal discrimination for its object which, although unintentional, may give rise to injurious retaliation. - t'llUSlA. The establishment; less than four years ago. ot a legation at Teheran is bearing fruit in the interest exhiialtted by the Shah's government in tfie industrial activity of the United States and the opportunities of lionoflcial interchange. FEIiV. Stable government is now hajipily rostered in Peru by the elect < n of a constitutional J'reSident.;nnd a period of rehabilitation is entered upon : but reco.erv is no cssardy slow from Che exhaustion caused by the lute war and civil disturbances. A convention t • adjust by arbitration the claims of our citizen, his been promised and is under cousiderktiba. THE TESTI JtoNlpt.s SENT TO slßElilA. The nj-Vul officer who bore tj Siberia the testimonials bestowed by < engross in recognition of the aid given to the Jeannette survivors, has successfully aceompli.-hcd his mission. His interesting rejibrt will be siihmitted. It is pleasant to know that this mark of appreciation has been welcomed by the Busman government ami people, us befits the traditional friendship of the two countries. . ' c THE BAMOAN IHLANp*." Civil perturbations in the Samoan Islands have during the past few years been a source of considerable embarrassment to the three governments, Germany, Great Britain und the United States - whose relations and extra-terri-torial rights in that important group are guaranteed bv treaties. The weakness of the native administration and the conflict of opposing interests in the islands have led King Malietou to seek alliance or protection in some one quarter, regardless ot the distinct engagements whereby no one of th® three treaty powers may acquire any paramount or exclusive interest. In May last Malietoa offered toplace Samoa under the protection of the United States, and the lute Consul, without authority, assumed to grant it. The proceeding was promptly disavowed,and the over-zealous official Special agents of the three governments have bAm deputed to examine the situation in the islands, with a. change in the representation of ail three powers, and a harmonious understand ing tratween them. The peace, pros- ~ perity, autonomous administration, and neutrality of Samoa can hardly fail to be secured. CUBA ANP potvro BtCO. It appearing that the Government of Spam did not ext nd to the flag of th - United States in the Antilles'the whole measure of reciprocity requisite under o ir statute for the continuance of the suspension of discriminations against the Spanish flag in bur ports, I was constrained in October last to rescind my predecessor’s proclamation of Feb. 14, .1881, permitting such suspension. An arrangement was, however, Speedily reached, and upon notification from the Government of Spain that all differential treatment of our vessels and their cargoes from the United States or from any foreign country, had been completely and absolutely relinquished, I availed myself of the discretion contented by law, and issued on the 27th of October my proclamation declaring reciprocal suspension in the United States, it is most gratifying to, bear testimony to the earnest spirit in which the Government of the Queen regent has mot our efforts to avert the initiation of commercial discriminations and reprisals, which are ever dangerous to the material interests and the political good-will of the countries they may affect. The profitable development, of thm. Isrew—coumiereial exehanges between the United States and the Spanish Antilles is naturally an object of solicitude. Lying: close at our doors, and finding here their mai kefs of supply and demand, the welfare of Cuba and Porto Hico and their production and trade are scarcely less important to us ’ than to Spain. Their commercial and financial movements arc so naturally a part ot our system that no obstacle to fuller, freer intercourse should be permitted to exist. The standing instructions of our representatives at Madrid and Havana have for years been to leave no effort unessayed to further these ends, an lat no time has the equal good desire of Spain been more manifested than now. The Government of Spain thus removing the consular tonnage fees on cargoes shipped to the Antilles, and by reducing passport fees, has shown its recognition of the needs of less trameled. intercourse. < TURKEY.. An effort has been made during the 7 past year to remove the hindrances to the proclamation of the treaty of naturalization with the Sublime Porte, signed in 18, 4, which has remained inoperative owing to a disagreement of interpretation of the clauses relating t > the effects of the return to and sojourn of a naturalized citizen in the land of his origin. I trust Soon to be able to -announce a favorable si-rtlciucn: of the ditler—euces as to this interpretation. • It has been highly satisfactory to note the improved treatment of American missionarjesjn Turkey.ashasbeeua’.test.ilbytheirackuowlodgments to our late Minister to that Government of his successful exertions in their behalf. t 1 : VENEZUELA. The exchange of ratification of the convention of December 5, 1885, with Venezuela for the reopening ot the awards of the Caracas commission under the claims convention of 1886, has not yet been effected, owing to the delay of the Executive of that Hepubiic in ratifying the measure. I trust that this postponement will be brief ; but should it much longer continue, the delay may well be regarded as a rescision of the ' compact, 'aud a failure oii the part of' Venezuela -to—complete—nn-urrunguiuciit..auptii'SiiteLitly. sought by her during many years, aud assented to by this Government in a s.irit of interna tional fairness, although' to the detriment of holders of bona fide awards of the impugned commiss.on. (inZENSniP AND NATURALIZATION. .1 reiie .v the recommendation of my last annual message, that the existing leg.slation concerning citizetisuip und naturalization bo revised. We h ive trelties with many states providing lor toe renunciation of 'citizenship by Tiaturalized aliens, but no statute is tound to give eitect, to such engagements, nor any which provides' a needed ceut&il bureau for the registrationof naturalized citizens, EXIRADIrtON LAWS. Experience suggests that our statutes regulating extradition, might be advantageously ameudedpy a provision for the transit across our territory mow a convenient thorougfifare, of travel from one fore in country to another) of fugitives surrendered by a foreign Government to a '“third State. Such provisions are unffSaaF' in “ the legislation of other countries, and tend to prevent the miscarrying of justice. It is also desirable, in order to remove present uncertainties, that authority should be conferred on the Secretary of State to issue a certificate in case of an arrest for the purpose of extradition to the officer before whom the proceeding is jiendins, showing that a requisition for the surrender of the person charged has been duly made. Such a certificate, if requir d to be received.before the prisoner’s examination, would prevent a long and expensive judicial inquiry into a charge which the foreign government mightnotdes re topress. I also recommend that express provisionb& made for the immediate discharge from custody of persons committed for extradition where ,the President is .oF the opinion that surrender should not be made. INTERNAHOSAL COPYRIGHT. The drift of sentiment in civilized eemmuni-ties-tow-Rrtl-puH-reeognttton -of—the—rigutsof property in the creatious .of the humaii intellect lias brought about the adoption, by many important nations, ot an international copyright convention, which was signed at Berne on the IStli of-. September. l '-? ). im<.s:r l ixch as the Constitution gis*es-'to Congress the power ‘•to promote tile progress of science and useful arts by securing,- for limited times, to autliois _aml inventora the exclusive; rightto their respective writings and discoveries,” this Government did norfeel warranted in bps' coming n signatory, pending the action of Congress upon measures of international copyright now before it: but the right of adhesion to the Beriie convention has been reserved. I trust the subject will receive at \ our hands the attention it deserves, and that the just claims of a uthors, so urgently pressed, will be duly heeded. ART DUTIES. ‘ Representations continue to be made to me of the injurious effect upon American artists , .S'lilyMUi abfcia4. and. having free access tp> the, art collections of foreign countries, of maintaining a discriminating fluty against the in? trofluction of the Works of their brother artists of other countries, and I am induced to repeat my recomincndatian fQr the abolition of tnatlswr" THE CONSULAR RKRVICK. Pursuant to a pro viaion.of the Diplomatic and Consular Appropriation act. approved July 1, .1836. the estimates submitted iy the Secretary of State for tli.e„maiutenance of tne consular service have.bcen recast oa the basis of salaries for all officers to whom such allowance ia deemed advisable. Advantego has been taken pf . this to redistribute the salaries cf the Officers not appropriated for, in acc.wdancs with' the work performed, the importance iof theirepreseniatire “duties of the incumbent, and 'the cod of living at each post. The last consideration has been toooften lost sight of in the allowances heretofore made. The comjzensation which may suffice for the

docent mainteuame of a worthy anl capable officer in A posit ou'of onerous and reprusenia- ■ tiro trust at a j ort easily accessible, and where the necessaries of life are abundant and cheap,, may prove an InaJequnta pittance in distant hinds, where th? better part of a year’s pay js consumed in reaching the p -st of duty, aqd whera • the comforts of ordinary ci .'lilted existence can only -be obtained with d'.fficuity auJ at exorbitant coxfc . I trust that, in considering the submitted ached lie, no mistaken theory of o -onomy will perpetuate a system, which in the pas: has virtually closed to d serving tileut many offie. s whore capacity and attainments of a high order are ituli-pen ruble, aud in not a few instances has brought discredit on our national churiv.t'.T and ent ulod eiiiii'irrassimJut an l even suffering on those deputeil to upit.oldourdi. nity und interests abroad. In connej.Unri with tub subject, I earnestly rziterate the practical necessity of supplying some mode of trustworthy inspection and report of the mauuer in which the consulates are conducted. In the absence of such reliable information. efficiency cun scarcely be rewarded ajr its opposite corrected. Ini reusiugcompetition in trade has directed attention t > the value QjLllie consular reports printed by the Department <»f . State, and tae efforts of tio tlovermno.'it to extend the practical r.si fulness of these reports have created a wider d■ pi and f r them at home and a spirit; of emulation abroad. Constituting a rec .rd ot the changes occurring iu trade, and of the progress of the arts and inventions in foreign countries, they are much sought for by all interested in the subjects which they embrace. national finances. ..The report of the Secretary of the Treasury exhibits in detail the condition of tlie public finances and of toe sever il branches of the Government related 11 bls department. I especially direct the attenti in of Congress to the recommendations contained in this and the last preced ng report of tlie Secretary touching the s mpliflcatioii aud amendment of the laws relating to the collection of our revenues, und in thft.int r st of economy and justice to the Government I hope they may be adopted by appropriate legislation. The ordinary receipts of the Government for the fiscal year ended June 3 ; 1886 were 5336.439,727.06. Of this amount 8192,905,02.3.41 was received from customs, und 8116,805,936.48 from internal revenue, while the total receipts us here stated were 813,749,020.68 greater than for the previous year, the increase from customs was but $11,434,081.10, and from internal revenues $4,407,210.94, making a gain iu these items for the last year of $15,841,285.04, a falling off in other resources reducing the total increase to the smaller amount mentioned. The expense at the different custom houses of collecting this increased customs revenue was less than the expense attending the collection of such revenue for the preceding year by $190,6;8, and the increased receipts of internal revenue were- collected at a cost to the Internal Revenue Bureau of ,$155,“944.99 less than the expense of such collection for the previous year. The total ordinary expenses of the Government for the fiscal year ended June 30, 18 6, were $242,483,138.50, being less by $17,783,797 than such expenditures for the year preceding-, and leaving a surplus in tlie treasury at the close of the last fiscal year of $93,956,588.56, as against $13,463,771.2/ at the ' close ’of the previous year, being an increase in such surplus of i 31,492,817.2- The expenditures compare.! with those of the preceding fiscal year, and classified, are as follows : For civil expenses, year, ending June 30, 1886, $21,955,6 4.01; year ending June 30, 1885, $23,824,942.11. For foreign intercourse, 1836, $133,232,088; 1885, $543,990,911. For Indians, 18.85. $009,915,817; 1885, $655,219,26'3. For. pensions, 1881, $63,404,814.03; ltß>, $56,102,'167.48. For military, including river and harbor improvements and arsenals, 1885, $34,321,152.74 ; 18'85, $12.670,578.47. For tlie navy, including • vessels, machinery" and improvements of navy yards, 18-86, $13,997,887.74 ; 1885, $16,021.009.63. For interest on public debt, 1886, $50,583,114.97; 1885, $51,386,253.47. For the District of .Columbia, 188'5, $2,8.12, 321.89 ; 1885, $3,449,450.95. Miscellaneous expenditures, including public buildings, lighthouses, and collecting the revenue, 1886, $67,986, j 83.04, 1885; 551.7280M.21. - —For the current year, to end June 30, 1837, the ascertained receipts up to Octolier 1, 188.1, with such receipts' ttp -to—Oetebs¥M7Tßß6, with such* receipts estimated for the remainder of the year, amount' to $356,000,000. Tlie expenditures ascertained ami estimated for. rhe ; same period are ■ $'.65,00 3.090. indicated an anticipated surplus at the close of the year of S9'J,OOJ,'JOO. EXPORTS. The total value of the exports from the United States to foreign countries during the fiscal year is stated and compared with the preceding year as follows: For the year ending June 30, 1886. June 30,1835. Domestic merchandise.s66s,694,s29 $726,632,916 Foreign merchandise... 18,560,301 15,506,809 Gold.. 42,953,191 3,477,812 Silver. 29,511,219 33,753.633 rtfhe value of some of our leading exports during the last fisi-al year, as compared with the. value of the same for the year immediately preceding, is here given and furnishes information both interesting and suggestive : For the year ending. June 39, 1886. June 30,1835. Cotton and cotton manufactures $219,015,576 $213,799,049 Tobacco aud its manufaetnre .............. :30.424,'<:0.3 --24,767,305Breadstuffs 125,846,558 160,370,822 Provisions 60,625,216 107,332,456 IMPORTS. Our imports during the last fiscal, year, as. compared with the previous year, were as follows : . 1886. 1835. Merchandises63s,436,l36 $579,580,05 f.BO Gold 20,743,349 29,691,696.09 Silver 17 850,307. 16,550,627.00 REDUCTION OF THE REVENUE. In my last annual message t:> the Congress “attention was directed to the fact that the revenues of the Government exceed its actual needs, and it Was suggested that legislative* action should bo taken to relieve the peopie from the-unnecessary burden of tax--m.iiin.th-iis-made.apparent. Im.vLew.of. the.pressing importance of the subject, I deem it my duty to again urge its consideration. The income of tli'e Government, withjts increased, volume and through economics in its collection, is now more than ever in excess of public necessities The application of ths surplus to the payment of such portion of the public debt as is now at our option, subject to extinguishment, if continued- at the rate which has lately prevailed, would retire that ’ class of indebtedness within less than one year from this data. Thus a continuation of our present revenue would soon result in the receipt of an annual income much greater than necessary to meet Government expenses, with no indebtedness upon which it cohid be applied. We should then be confronted with a.-vast quantity of money, the circulating medium of the people, hoarded in the Treasury, when it should be in their hands, or we should be drawn into wasteful public extravagance with all the corrupting •national demoralization which follows in its Arain. THE SURPLUS; But it is nqvtlie simple existence of this and its attendg.nt .mils which furnish the strongest argument against our pres mt scale of federal taxation. Its worst phas 3 is the exaction of such a surjdus through a perversion of the relations between the people and their Government —a dangerous departure from the rules which limit the right of federal taxation. Good government, of which every American citizen boasts, has for its objects the protection; of every person within its borders, with tlie greatest liberty consistent with tfie’ good of the country, and his perfect security in the enjoyment jot his earnings, with the least possible diminution for public needs. When more of the people s sustenance is extracted through the form of taxation than is necessary to meet the just obligations pt the Government aud the expense of its economical administration, such action becomes ruthless extortion an I a violation of the fundamental principles of a free GoVferni ment. The indirect manner, to which these I exactions are made has a tendency to con- . ceal their true character and their extent. But we have arrived at a stage of superfluous revenue which has aroused the people to a realization of the fact that the amount raised profeeseilly for the support of the Government, is paid by them as absolutely, if added to the price of the things which supply their daifv wants, as if it was paid at fixed periods into the bauds of the tax-gatherer. Those who toil for daily wag- s are beginning to understand that capital, though sometimes vaunting its importance and clamoring for the protection and favor of the Government, is dull and sluggish till, touched by the magical hand of labor, it springs into activity, furnishing an occasion for federal taxation, and gaining the value which enables it to bear its burden, and the laboring, man is thought fully inquiring whether, in these circumstances.’and. considering tha. tribute he constantly oays into the public treasury as he supplies his daily wants, he receives his fair share of advantages. There is also a suspicion abroad that the surplus of-our revenue indicates abnormal and exceptional business profits, which, under the system whjch produces such surplus, increase, without’corresponding benerit.t j the people at largo, the vast accumulations of a few among our citizens whose fortunes, rivoling the wealth of the most favored in anti-Demo-cratic nations, are not the natural growth of a steady, plain, and industrious republic. Our farmers, too, and those engaged directly arid indirectly in supplying the products ot agriculture, see that, day by day. an i as often as the daily wants of their households recur, they are .forced to■pMt-excojsive and needless taxation, whilri their products struggle in foreign, markets with the competition of nations which, bv allowing ® freer excli'inge df prtxi .tcti-ni "tfisii we permit, enable their people to sell for prices

which distress ths American farmer. As every patriotic citizen rejoices ?in trie constantly iucreasin; pride of our people In American citizenship, and in the glory of ony national achievomeite and progress, a sentiment prevails that the leadmg-strings useful to a nation in its infancy may well, to a great extent, be discarded in the preßeat stage of Alnerican iugemljty, courage and fearless self-reliance. Ami for the privilege of indulging this sentimbnt with true American enthusiasm, our citizens are quite willing to forego an lUs suiplus in the public treasury. And all the people know that Aths average rate of Federal taxation upon imports to-day, in; time of peace, is but little less, while upon some articles of necessary cauaumptiOu It is actually more than was imposed by the grievous burden willingly borue at a time when the: Govemui nt hue led millions to maintain by a war the safety and integrity of the United States. REVISION OF THF. Ip:VE,NUg J,AW. ,v It has been the policy of the Government to collect the. principal part of its revenues ny a tax upon imports, and no change in this policy is desirable. But the present conititi uOf affairs constrains our people to demand that by a revision of our revenue i laws the receipts of the Government shall be reduced to the iieeessary expense of its economical administration, and thk demand should Le recognized and . obeyed by the people's representatives in the legislatee branch al the Government. In readjusting theburdens of Federal taxation a sound public policy requires that such of our citizens as have built up large and important industries under present conditions should not be suddenly, and t> their injury, deprived of advantages to which they have adapted their business ; but if the public good requires it, they should be content with such consideration Rs shall deal fa rly and cautiously with their interests, while the just demands of the people torr lief from needless taxa ion is honestly answered. A reasonable and t'mely submission to such a dem nd should certainly be possible without disastrous shock to any interest, and a cheerful concession sometimes averts abrupt and heedless action, often the outgrowth of im patience and delayed justice. THE AMERICAN LABORER. Due regard should be also accorded in any proposed readjustment to the interests of American labor so far as they are involved. Wo congratulate ourselves that there is among us no laboring class, fixed within unyielding bounds, and-doom-ed under all conditions to the inexorable f .to of daily to 1. We recognize in labor a chief factor in the Wealth of the republic, and we treat those who hue it in their keeping as citizens entitled to the nio-t careful regard and thoughtful attention. Tnis regard and attention should be awarded them, not only because labor is the capital of our, workingm in. justly entitled to its share of Gox-ernmeht favor, isiatTOr the rurther and not less important reason that the laboring man. surrounded by his family in his humble home, is virtually Interested in all that cheapens the cost of living and enables him to bring within his domestic circle additional comforts and advantages. This relation of the workingman to the revenue laws of the country, and the manner in which it palpably influences the question of wages, should not be forgotten in the justifiable prominence given to the proper maintenance of the supply uud protect>on of well paid labor. Aud these considerations suggest such an arrangement of Government roveDues as shall reduce the expense of living, while itdcei not curtail the opportunity for work nor reduce the compensation of American labor and injuriously affect its condition and the dignified place it holds in tfie estimatiomof our people. . But our farmers and agriculturists, those who from thc soil produce th > tilings consumed by all are perhaps more diiez .ly and pluinlv concerned than any other of our citizens in a :iust and careful system of Federal taxation. Those actually engaged in, and more remot -ly connected with, this kind of work number nearly oue-half of our population ; none labor harder or more cortinuously than they. No enactments limit the|r hours of toil, and no interposition of the_Gqyemnii nt enhances to any great extent Hie value of their products; aud yet for many of the necessaries and comforts of life, which the mo t scrupulous economy enables them to bring into their homes, and for their implements of husbandry, they are obliged to pay a pric: lin gsly increased by an unnatural profit, which, by the action of the Government, is given, to the more favored manufacturer. I recommend .that, keeping in view all these considerations, the increasing and unnecessary surplus of national income annually accumulating be releast'd to the people, by an amendment to our ? re.v.enue laws, which shall cheapen the price of the necessaries of life, and give freer entrance to such imported materials as, byAmerican labor, may be manufactured into marketable commodities. Nothing can be accomplished, however, in the direction of this much-noeded reform unless the subject is approached in a patriotic spirit of devotion to the interests of tlie entire country, and with a willingness to yield something for the whole good. THE PUBLIC DEBT, The sum paid upon the public debt during the fiscal year ended Juno 30,1886, was $41,5-51,013.36. During the twelve mouths ended October 31, 1886, three per cent, bonds were called for redemption, amounting to $127,283,10 ', of which . $>81i,643g100 was ao.called.ta an h wer J.he_.requ ire.-., merits of the law relating to the sinking fund, and $46,399,000 fcr the purpoie of reducing the debt by application of a part of the surplus in the Treasury to that object. Of the bonds thus called $102,209, subject, under such calls, to redemption prior to November 1, 1886. The remainder, amounting to $250,136,450, matured under the calls after that date. In addition to the amount subject to payment and cancellation prior to November 1, there were also paid before that day certain of these bonds with the interest thereon, amounting to ¥s,o72,3X9,—which were anticipated as to the maturity, of which 12.654,850 had not been called. Thus 3107,341,801 had been actually applied prior to the Ist ot November,.. 1886, to the extinguishment of our bonded and interest-bearing debt, leaving on that day still outstanding the sum .of $1,133,443, 112. Of this amount $86,818,760 was still represented by 3 per cent, bonds. They, however, have been since November 14, or will at once be, further reduced by $22,605,150, being bonds which have been called, as already stated, but not redeemed and canceled before the latter ! date. SILVER COINAGE. During the fiscal year epde.l June 30, 1886, there were coined under the Compulsory Silver Coinage act of 1878, 29,838,8.49 silver dollars, and the cost of the silver used in such coinage was $23,448,960.01. T here had been coined up to the close of the previous fiscal year under provisions of the law 203,882,554 silver dollars, and on the Ist day of December, 1836, the total amount of such coinage was $217,131,549. The Director of. the Mint reports that at the time of the passage of the law Jot- 1878 directing this coinage, the intrinsic value of the dollar thus coined was cents each, and that on July 31, 1886, the price of silver reached the lowest stage ever known, so that the intrinsic or bullion price cf our standard silver dollar at that date was 72 cents. The price of silver on November 3l) last was such as to make the dollars intrinsically worth 78 cents each. These differences in the value of the coins represent but the fluctuations in the price of silver, and they certainly do indicate that compulsory coinage by the Government enhances the price of that commodity or secures uniformity iu its value. CIRCULATING SILVER. Every fair and legal effort has been made by the Treasury Department to distribute this currency among the people. Too withdrawal of United States treasury notes of small denominations and the issuing ot small silver certificates have been resorted to in the en-deavor-to accomplish this result, in obedience to the will and'sentiments of the representatives of the people in Congress. Oh the 27th day of November, 13-6, the people held lot these coins or certificates representing them the nominal sum of $166,873,041, and. we still have $79,464.345 in the treasury, as against about $142,894',055 so in the hands of the people, and $72,855,376 remaining in the treasury one year ago. The Director of the Mint again urges the necessity of more vault room for the purpose of storing these silver dollars, whieh are not heeded for circulation by the people. I have seen no reason to change the views expressed in my last annual message on the subject ofAhis compulsory coinage, arid I again urge its suspension fln all the grounds contained in my former recommendation, re-enforced by the siguifieaut increase of our gold exportations during the last year, as appears by the compqratiye statement hera- < with presented, and for the further reasons that the more this currency is distributed among the people the greater boeomea’“’our duty to protect it from disaster; that we now have abundance for all our needs; and that there seems but little propriety ia building vault> to store such currency, when the only pretense for its coinage is the necessity of its use by the people as a circulating medium. INDEFINITE REVENUE LAWS. The great number of suits now pendingin the UnitedJStated Courts for The Southern District ot New York, geowing out of the collection of cin>toins revenue’at the' port of New York, and the number of such suits that are almost daliy'instiluted, are certainly worthy the attention of Congress. These legal controversies, based upon conflicting views by importers and the Collector as to the interpret ition ot our present complex and indefinite revenue laws might be largely obviated by an dmondimnt of those laws. But pending such amendment the j resent condition of tais'litigation sbo ild be relieved. There are now pending about- 2,50 >of these suits. More than I.HM- have been commenced within' eighteen months, aud many of the cithers have "been at issue for mom than twentysubject the Govern, ment to loss es evidence, and pre vent Jffiereiv

aration necessary to defeat unjust and fictitious claims, while constantly aecru- : ing interest .thriiatens ? to double the demands involved. In the present condition of the dockets of thoj courts, well-filled with private suits, and of toe force allowed the District Attorney, no greater than is ne< oorilry for the ordinary and current business of his office, these revenue litigations cannot bo considered. In default of the adoption by. Congress of a Plan for the general reorganization of the Federal courts, as has heretofore been recommended I urge the propriety of .passing a law permitting the appointment of an additional Federal Judge indie district wherelhesa Government suits have accumulated, bo that by continued sessions of th) i-oiirts devoted totto* trial these eases may bo determined. It is entirely plain that a great saving to the Government would be accomplished by such a remedy, and the suitors who have honest claims would not be deni.d justice through delay. THE ARMY. The report of the Secretary of War gives a detailed account of the administration of his dejiartment, an l contains sundry recommendations forth} improvement ot the service, which I fully approve. The army consisted at the date of the last consolidated return of 2,1t)3 officers and 21.916 enlisted men. The expenses of the department for the last fiscal year were 336,99.9,91t1.2«, including f 6,291, 105.43 for public works and river ann harbor improvements. I especially direct the nttent on of Congress to the recommendation that Officers be required to submit to an examination as a preliminary to their promotion. F .see i o objection but many advantages in adopting this feature, which has operated so beneficially in our, Navy Department as well as in some branches of thearmy. - COAST DEFENSES. The subject of coastdefen. es and fortifications Lad been fully and carefully treated by the Board on Fortifications, whose report was submitted at the liistsessioiiofCongre.se; but no construction work of the kind recommended by the Board has been possible during the last yedr from the lack of appropriations for nuch purpose. The defenseless condition of our seacoast and lake frontier is perfectly palpable; the examinations made must convince us alt that certain of our cities named in the report of the board should be fortified, and that work cn the most important of these fortifications should be commenced at once. The work has been thoroughly considered rind laid out, the Secretary of War reports, but ali is delayed in default of Congressional action. The absolute n cessity, judged by all standards of prudence and foresight, of our preparation for an effectual resistance against the armored ships and steel gnns aud mortars of modern construction,xStiich may threaten the cities on our coasts, is so apparent that 1 hope effective steps will be taken in that direction immediately. The valuable and suggestive treatment of this question by the Secretary of Ware is earnestly commended to the consideration of Congress. THE APACHE WAR. In September and October last the hostile Apachies, who, under the leadership of Geronimo, had for eighteen months been on the war path, and during that time had committed many murders and been the cause of constant terror to the settlers of Arizona, surrendered to Gemral Miles, the military commander who succeeded General Crock in the manaremont and direction of their .pursuit. Under the terms of . their .surrender, as then rep nteil. and in view of the understanding which this murderous savage seemed to entertain of the assurances given them, it was considered best to imprison, them in such manner as to prevent their ever engaging in such outrages again, instead of trying them for murder. Fort Pickens having been sd’eted as a safe place of confinement, all the adult males wore sent thither, and wjll be closely guarded as prisoners. In the meunt-imo the residue of the band who, though still remaining upon the reservation, were regarded as unsafe, and suspected of furnishing aid to those on the warpath, hud b.cen removed to Fort Marion. The women and larger children of the hostlies were also taken there, and arrangements have been iniule for putting the children of proper ago in, Indian schools. THE -WAR-VESSELS. The report of the Secretary of the Navy contains a detailed report of the condition of his department, with such a statement of the action needed to improve the same as should challenge the earnest attention of Congress. The present. na\y of the United States, aside from tlrn ships iu course of construction, consists of: First, fourteen singlc-turr-tedmonitors, none ot which are in commission nor at the present time serviceable. The batteries of these shijis are obsolete, and they can only be relied upon as auxiliary ships in harbor defense,and then after such, an expenditure upon them as might not be decided justifiable. Second, five fourth-rate vessels of small tonnage, only cne of which was designed as a war vessel, and all of which are auxiliary merely. Third, twenty-seven cruising ships, three of wlrch are built of iron and of small tonnage, and twenty-four of ’ wood. Of these wooden vessels it is. .estimated by the chief constructor of the navy that only three will be serviceable beyond a perioitof six years,, at which time it may be said that of the presentnaval force nothing worthy the name will remain. j All the vessels heretofore authorized are under contract or. in . course ,ct- construction, ex--cept the armored ships,-the—torpedo dynamite--boats, and one crusier. Astotho last of those, tho bids were in excess of the limit fixed by Congress. The production iri"the United States "of armor and gun steel is a question which it seems necessary to settle at an earfy day, it the armored war vessels are to be completed with, those materials of homo manufacture. This has been the subject of investigation by two boards and by two special committees of Congress within the last threeyears. The report of the Gun Foundry Board in 1884, of the Board of Fortifications made in January last, and the reports of the select committees of the .two houses made at the last session of Congress have entirely (-exhausted the subject so for as preliminary investigation is--involved, and in their recoui'mendatioh they are substantially agreed. In the event that the present invitation of the department for bids to furnish such of thismaterial as is now authorized shall fail to induce domestic mnnufacturers to undertake the large expenditures required to prepare fir this new manufacture, and no other steps are taken by Congress at its coming session, the Secretary contemplates, with dissatisfaction; the necessity of obtm'ni rg abroad the armor and the gun steel f rrhs authorized ships. It would seem desirab e that the wants of the Sony and the navy in this regard should bo -reasonably met, and that by uniting their contracts such inducement might, bo offered as Would result in secur ng the domestication of these important interests. THE POSTAL SERVICE. The affairs of the pcstal service show marked and gratifying improvement during tho past year. A particular account of its transactions and condition is civen in the. report of the Postmaster General; which will be laid before you. 'The reduction of the rate of letter postage in 1 'B3, rendering the postal revenues inadequate to sustain the expenditures, and business depression also contributing, resulted in an excess of cost for the fiscal year ended June 30, 18-65, of eight and one-third millions of dolli ri. An additional check upon receipts by doubling the measure of weight in rating sealed correspondence, and diminishing one-half the chorg > for newspaper < arriage, was imposed by legislation, which took effect with the beginning of tho piistfiß-.al year; while the const mt demand., oi our territorial development and growing population for the extension and increase of mail facilites und machinery necessitate a steady annual advance in outlay. The careful estimate of a year ago upon the rates of expenditure then existing contemplated the unavoidable augmentation of tl.e deficiency in the lust fiscal year by nearly twomillions of dollars. The anticipated revenue for the last year failed of realization by about 861,090, but proper measured of economy have so satisfactorily limited the growth- of expenditures that tho total deficiency, in fact, fell below that of 183 , and at that time the increase pf revenue is in a gainlugTatio over the increase of cost, demonstrating the sufficiency of tho present rates of postage ultimately to sustain the service. This is the more pleasing because our people enjoy row both cheaper postage, proportionately to distances, and a vaster and more costly service than any other upon the globe. Retrenchment has been effected in the cost of supplies; some expenditures unwarranted by law li nve ceased, iuxl the outlays for mail carriage have been subjected to.bciieficiiil scrutiny. At the close of tho late fiscal year the expense of transportation on star routes stood at an annual rate of cost less by’over 85503900 than at the close of tho previous year, and stean.*bii.t. and mail messenger service at nearly $200,000 less. The service has been in the meantime- enlarged and extended" by the establishment of new offices, increase of routes of carriage, expansion of carrier delivery conveniences, and additions to the railway mail facilities in accordance with the growing exigencies of the country and the long established policy of the Government. The Postmaiter General calls attention to the existing law for compensating railroaii.s, and expresses the opinion that a methed may bo devised which will prove more just to the carriers an l beneficial to the Government; and the subject appears worthy of your early consideration. “ ” OCEAN SERVICE. The differences which arose during the year with certain of .the ocean steamship companies have terminated in the acquiescence of dll in the policy of thrnGovenumn'. approved by Congress in rths postal appropriation at its last session, and the department now enjoys the utmost-service afforded by-all Vvosote wliicbaail from our jorts upon either ocean—service gen