Rensselaer Standard, Volume 1, Number 25, Rensselaer, Jasper County, 6 December 1879 — THE PRESIDENTS MESSAGE. [ARTICLE]

THE PRESIDENTS MESSAGE.

MMiw fftlum ofMa Senate onfi Monos of BepresentatiTe*: Ao nmberi of the Party-sixth Congres* bore MmbWml to their firs* regular session under Mi StOßSes calling for mutual congratulation pi grateful acknowledgment to the giver of all monitor the large aad unusual measure of uaMwaal prosperity which we bow enjoy. «■ The most interesting event* which have oc«rcd in oarjmbUe affair* since n>y last annual message to Congrcaa are connected with the operations of the government directly •f* tne business interests of the country. -J congratulate Congress on the successful ex ecu Hon of the resumption aet. At the time fixed wad in the manner contemplated by law, t’ntted Mate* notes began tube redeemed in coin. Bince fie first oTJauuary last they have been promptly redeemed on presentation, and in all business transactions, nubile and private, in all parts of the country, they are received and paid out as thct-quivulent of coin. The demand upon the tetmsnry for gold and silver in exchange for Halted States notes has been comparatively —mil, and the voluntary deposit of coin and bullion in exchange for notes has been very large. The excess of the precious metals deposited or exchanged for United States notes over the '■amount'of United States notes redeemed is about *4<MJOO.OOO. The n 'jtiniptlcm of specie payments has Icen followed »v a very great revival of business. * With a currency equivalent In value to the tuonmy of the commercial world, we arc enabled to water upon an equal competition with other nations In trade aad production. The increasing foreign demand for our manufactures and agriMtlturai products lias caused a large balance of - trade in our favor, which has been paid ia gold, from the Ist of July last, to No vein to the jßßount of abont $59,000,000. Since the resumption of specie payments there has also been a Marked and gratifying Improvement of the public credit. The bonds of the government bearing •aly four per cent, interest have been sold at or above par. sufficient in amount to pay off alt the national debt which was redeemable under precast laws. The amount of Interest saved annually by the process ol refunding the debt, since -March 1. 1877, to «14,297,177. The bonds aekl were largely in small sums, and the nntuber of our citiaeus now holding the public securities to paucb greater than ever before. The amount of the national debt which matures within less than two years Is $792.T2J ,700 of which $500,000,SOO bear interest at the rate of five per cent , and Me balance u in bonds bearing six per cent, tn- . fiwiat. It to believed that this part of the public debt cm be refunded by the Issue of four per aent. bonds, and, by the reduction of interest Which will thus be effected, aboutelevrn millions as dollars can be annually saved to the treasury. TO secure this important redaction of interest to 6 paid by the United States, further leglslanto required, tohkh, it Is hoped, will be provided by ('emgross during its present session. The coinage of gold by the mints of the United Kes during the last fiscal year wa5f40.988.912. coinage of silver dollars since the passage of Me act for that purpose, up to Novemiier 1, 1879, was $45,000,850. of which $12,700,344 have been issued from the treasury aud are now In circulation, and $32,300,500 are still in possession of the government. * The pend eney of the proposition for unity of Sion between the United States and the prmcicominrrrial nations of Europe, to effect a permanent system for the equality of gold and * ntiver in the recognized money of the world.leads Me to recommend that Congress refrain from ■erw legislation on the general subject. Tlic great xevival of trade. Internal and foreign, will supplv during the coming year Its own luatrucfltona. which may well be awaited before nttenipttng further experimental measures with tbe coinage. I would,however, strongly urge upon Congress the Importance of authorizing the Secretary of the Treasury to suspend the coinage of diver dollars upon the present legal ratio. The Market value of the silver dollar being uniformly dd largely less than the market value of the wold dollar, it to obviously impracticable to Maintain them at par with each other, if liotli are coined without limtt. If the cheaper coiu Is Mr ml into circulation it will, If ooined without knit. soon become the sole standard of valuey and thus defeat the desired object, which is a Bai l i ncy of both gold and silver, which shall be sf equivalent value, dollar for dollar, with the ■aiversatly recognised money of the world. The retirement from circulation of Uaited Mates notes, with the capacity of legal-tender in private contracts, to a step to be taken in our progress toward a aafe and stable currency, Which should be accepted as the policy and duty as the government, and the interest and security '.ft the people. It is my firm conviction that the awe of legal-tender paper money based wholly Wpou the authority and credit of the Hrvemaient. except in extreme cmergeu§y, to without warrant In the constitution, and a violation of sound financial principles. The issue of United States notes during Me late civil war with the capacity of legal-ten-tir betweea private individuals was not authorhmd except as a means of rescuing the country Mom Imminent peril. The circulation of these tilts aa paper money, for any protracted period mt time after the accomplish me ut of this purpose, MM not contemplated by the framers of the law eer which they were Issued. They anticipated redemption and withdrawal of these notes at e earliest practicable period consistent with attainment of the object for which they were provided The policy of the United Bfates, steadily adtiered to from the adoption of the constitution, has been to avoid the creation of a national debt, and when, from necessity in time of war, debts have been created, they nave been paid off on Me return of peace as rapidly as possible. With Mia view, ana for this purpose, it is recommended Mat the existing laws for tbe accumulation of a Mat lug fund sufficient to extinguish tbe public debt within a limited period be maintained. If awy change of the objects or rates of* taxation is deemed necessary by Congress, It to suggested Mat experience has shown that a duty can be placed on tea and coffee, which will not enhance Me price of those articles to the consumer, and which will add several millions of dollars an-

anally to the treasury. The, continued deliberate violation by a large ■amiber of the prominent uud influential citizen* •f the Territory of Utah of the laws of the United Mates for the prosecution and punishment of Mlygamy demand* the attention of every department of the government. This Territory has Bpopulation sufficient to entitle it to admission as a State, and the general interests of the Nateae well as the welfare of the citlsens of the torv. require Its advance from the territori<i form of government to the responsibilities and CvUi-st— of a State. This important change will it however, be approved by the country while Am dthrus of Utah in very considerable uninbor ■phold a practice which to rondeinuetl as a crime by the laws of all civilised communities throughout the world. Th<‘ law for the suppression of this offense was ■Meted with great unanimity by Congress more Man seventeen years ago. but has remained until recently a dead letter in the Territory of Utah, because of the peculiar difficulties attending it* enforcement. The opinion widely prevailed anaong the citizen* of Utah that tbe law was in wnMaveation of the ronditntiuiml guarantee of religions freedom. This objection is now removed. The Supreme Court of tbe United States has decided the law to be within the - legislative power of Congress, and binding a* a rule of action for all who reside within the Ter Utorics. There is uo longer any reason for delay •rhesitation in its enforcement. It should be irmly and effectively executed. If not sufftriently stringent in its provisions it should lie . amended, and. ia akl of the purpose in view, I. ■•commend that more eoniprefien-ive mid more . searching methods for preventing as well as pun AM big this crime be provided. If necessary to Been re olwdience to the law, the enjoyment and i saercise of the right* ami privileges of citizenship la tbe Territories of the United states may he withheld or withdrawn from those who viototo or oppose the enforcement of the law on Mis subject. Tbe elections of the past voar, though occupied only with Mate offices, have not failed to sßcit sh the political discussions which attended Mem ail over the country, new and decisive eviffemc of the deep interest which the great body Sf citizens take In the progress of the country towards a more general and complete establishment. at whatever cost, of universal secuti tv said freedom in the exercise of the elective frarishisr. While many topics of political concern Mss»nd great attention from oar people, both In fltoaidiere of National aud Mate authority, I had bo reason to qualify the opinion I expressed to my tost annual message, that no temporary or administrative interests of government, however argent or weighty, will ever displace the seal of oar jieosle in defense of the ■rimary rights of citizenship, and that toe power of public Opinion will override all jMiMieal prejadfce*, and all secXiomU and State attachment*, h» demanding that all over oar Wide territory the name and character of eitisen Of the United Mates shall mean one and the same . to'ng. and carry wlth thetn unchallenged seeority aid respect I earnestly appeal to tbe intolUgeaoc and patriotism of all good citlsens of every Bart of the country, however much they may he •Tided in opinions on other political subjects, to ■Bite in compelling obedience to existing laws ■toted at the protection of the right of suffrage. SB&T&EsSf ss . ton sti and which ills within its power to remedy, tolgaininvoke the co-operation of tbe executive •5 legislative aathorttlas of the Plate* tn this glut puriose. lam fully convinced that it the public mind can be set at rest on this paramount •motion of popular rights, no serious obstacle WDI thwart or delay the complete pacification of ; toe country, or retaid the general diffusion of a former meosoge I invited the attention of Oaafftosa totonWestri the reformatio* of

the etoH serviea at the gorormnseat, aad srxpreas ed the Intention of transmitting to Congress aa early asjirs nrinahln a repost upon this oaMset by tie eaatrman of the civU-oervice eowuniaSon. In view of the facts that, during a considerable period, the government of Great Britain has been dealing with administrative problems and abuaeo, in various particulars analogous to those presented In this oouatiT, and that in recent yean the measures adopted were UDderstood to have been effective aad in every respect highly satisfactory, I thought it desirable to have fuller information upon the subject, and accordingly requested tbe chairman of the civil service commission to make a thorough investigation for this purpose. The result has been an elaborate and comprehensive report. Tuo report sets forth the history of tbe partisan spoils system in Great Britain, and of the rise and fall of the parliamentary patronage, and of official Interference with the freedom of elections. It shows that after long trials of various kinds of examinations, those which ore competitive and open on equal terms to all, and which are carried on under the superintendence of a sin-, gle commission, have, with great advantage, been established as conditions of admission to almost every official place In the subordinate admin Ist ration of that country and of British India. The completion of the report, owing to tbe extent of tbe labor involved In its preparation, and tbe omission of Congress to make any provision either for the. compensation or the expenses of tbe commission, bus been postponed until the present time. It is herewith transmitted to Congress. ; While tin* reform measures of another government are of no authority for us. they are entitled to Influence, to tbe extent to whiebtheir Intrinsic wisdom, aud tbe.ir adaptation to our institutions and social life may commend them to our consideration. The views I have heretofore expressed concerning tbe defects and abuses in our civil administration remain unchanged, except in so far as an enlarged experience has deepened my sense of the duty both of officers and of the people themselves to co-operate for their removal. The grave evils and perils of a partisan-spoils system of appointment to office and of office tenure, are uow generally recognized. In the resolutions of the great parties, in the reports of. departments, in the debates and proceedings of Congress, in the messages of executives, the gravity of these evils has been pointed out and the need of their reform has been admitted. To command the necessary support, ©vey measure of reform must bo based on common right and Justice, and must be compatible with the healthy existence of great parties, which are inevitable and essential in a free. State. When the people have approved a policy at a National election, confidence on the part of the officers they have selected, and of the advisers who, in accordance with our political Institutions, should be consulted, in the policy which It is tlicir duty to carry Into effect, is Indispensable. It is eminently proper that they should explain it before tbe people, as well as illustrate its spirit iu the performance of their official duties. Very different considerations apply to the greater number of those who fill the sulKmlinate f daces in the civil service. ’Their responsibility s to their superiors in official position. It to their duty to obey the legal instructions of those upon whom that authority is devolved, and their best public service consists in the discharge of tbeir functions irrespective of partisan politics. Their duties are the same, whatever party to in power and whatever policy prevails. As a consequence, it follows that their tenure of office should not depend on the prevalence of any policy or the supremacy of any party, but Bhouhl bo determined by their capacity to serve the people most usefully, quite irrespective of partisan interests. The same considerations that should govern the tenure should also prevail in the appointment, discipline and removal of these subordinates. The authority of appointment and removal is not a perquisite, which may be

used to aid a frieud or reward a partisan, but is a trust to be exercised In the public interest, under all the sanctions'which attend the obligation to apply the public funds only for public purposes. Every citizen has an equal right to the honor and. profit of entering the public service of lito country. Tho only Just ground of discrimination to the measure of character and capacity he has to make that service iuost. useful to the people. Except in cases where, upon just and recognized principles, as upon the theory of pensions, offices and promotions are bestowed as rewards for past services, their bestowal upon any theory which disregards personal merit, to an act of injustice to the citizen, as well as a breach of that trust subject to which the appointing power is held. in the light of these principles. It becomes of great Importance to provide Just and adequate means, especially for every department and large administrative office, where personal discrimination on the part of Us head to not practicable, for ascertaining those qualifications to which appointments and removals should have reference. To fail to provide such means to not only to deny the opportunity of ascertaining the facta upon which the most righteous claim to office depends, but, of necessity, to discourage all worthy aspirants, by handing over appointments and removals to mere influence and favoritism. If it to the right of the worthiest olaimant to gain tbe appointment, and the interest of the people to bestow it upon bim.it would seem clear tin fa wise and just method of ascertaining person* /fitness for office must be an Important and permanent function of every Just aud wise government. It has long since become impossible, In *he great offices, for those having the duty of nomination and appointment. to personally examine into the Individual qualifications of more than a small proportion of those seeking office; and. with the enlargement of the. civil servloe, that proportion must continue to become less. \ In the earlier years of the government, the subordinate offices were so few In number that It was quite easy for those making appointments and promotions to personally ascertain the merits of candidates. Party managers and methods had not then become powerful agencies of coercion, hostile to the free and just exercise of the appointing power. A large and responsible part of the duty of restoring the civil service to the desired purity and efficiency rests upon tbe President, and it is ni/ purpose to do what to within my power to advance such prudent and gradual measures of reform as will most surely and rapidly bring about that radical change of system essential to make our administrative methods satisfactory to a free and intelligent people. By a proper exercise of authority. It to .in the power of the Executive to do much to promote such a reform. But it cannot be too clearly understood that not long adequate can be accomplished without 00-o pc ration on the part of Congress and considerate and intelligent support among the people. Reforms which challenge the generally accepted theories of parties, and demand changes in the methods of departments, are not the work of a day. Tbeir permanent foundations must be laid in sound principles, and In an experience which demonstrates their wisdom and expose# the errors of their adversaries. Even - worthy officer desires to make bis official action a gain and an honor to his coimtiy, but the people themselves, far more than their officers in public station, are interested in a pure, economical and vigorous administration. By laws enacted in 1853 and 1855, and now in suhstanco incorporated In the revised statutes, the practice of arbitrary appointments to the several subordinate grades In the great deportments was condemned, and examinations, as to capacity, to be conducted by departmental boards of examiners, were provided for and mode conditions of admission to the public service. These statutes are a decision by Congress that examinations of some sort, os to attainments and capacity, are essential to the well-being of the public service. Tbe imEirtant questions since the enactment of these ws have been as to the character of these examinations, and whether official favor and partisan influence, or common right and merit, were to control the access to the examinations. In practice, these examinations have not always been Opeu to worthy persons generally, who might wish to be examined. Official favoritism and partisan influence, as a rule, appear to have designated those who alone were permitted to go before the examining boards, subjecting even the examiners to a pressure from the friends of the candidates very difficult to resist. As a consequence. the standard of admission fell below that which tho public Interest demanded. It was stoo almost Inevitable that a system which provided for various separate boards of examiners, with no common supervision or uniform method of procedure, should result In confusion, inconsistency, and inadequate tests of capacity highly detrimental to the public interests. A further and more radical change was obviously required. In the annual message of December, 1870, my predecessor declared that' “there to no duty Which so much embarrasses the Executive and heacto of departments as that of anpoinmente; nor to there any such arduous ana thankless labor imposed on Senators and Representatives as that of finding places for constituents. The present system dees not secure the best men. and often not even fit men tor the public piaeee. Ike elevation and purification of the civil servloe of the government will be hailed 'with approval by the whole people of the United Statesrt Co agrees accordingly passed the act, approved March 8, 1871, "to regulate the civil service of the United States and promote the efficiency thereof,” gi vingthe necessary authority to tbe Executive to Inaugurate a civil-service reform. Acting under this statute, which was interpreted ss Intended to secure a system of Just and effectual examinations under uniform superviSion, a number of eminently competent persons were selected tor the purpose, who entered with “ * h «. ir Katies, prepared, with an intelligent appreciation of the requirements of the service, the regulations content pUted, anA took charge of the examinations, and Who, in their OMaelty as a board, havebeen known as the “Cfvil-scrvioe Commission.’’ Congress for two years appropriated the money

needed for the eoMponssthm and for the expanse of carrying on the work of the nnwinilssisß It appears from the report at the commissi ws, submitted to tbe President in April, 1874, that examinations hod been held in various sections of the country, and that an appropriation of about $25,000 would bo required to meet the annual expenses, Including salaries, involved in discharging the duties of tbe commission. The report was transmitted to Congress by special message of April 18, 1874, with the following favorable comment upon the labors of tbe commission: “If sustained by Congress, I have no doubt the rales can, after the experience gained, be so improved and enforced as to still more materially benefit the public service and relieve tbe Executive, members of Congress, and the heads of departments, from influences prejudicial to good administration. The rales, as they have hitherto been enforced, have resulted beneficially, as to shown by the opinions of the members of the Cabinet and their subordinates in the departments, and in that opinion I concur.” And In tbe annual message of December of tbe same year similar views are expressed, aud an appropriation for continuing the woik of the commission again advised. The appropriation was not made, and. as a consequence, the active work of the commission was suspended, leaving the commission itself still in existence. Without the menus, therefore, of causing qualifications to I*> tested in any systematic manner, or of securing for the public service the advantages of competition upon any extensive plan, I recommended in my annual message of December, 1877, themakingof an apSropriation for the resumption of the work of le commission. In the meantime, however, competitive examinations under man}’ embarrassments hare been conducted within limited spheres in the Executive departments in Washington, and In a number ol the custom-houses and pontofficesof the principal cities of the country, with a view to further test their effects, and, in every Instance, they have been fouud to be as salutary as they are stated to have been under the administration of my predecessor. I think the economy, purity and efficiency of the nubile service would be greatly promoted by tbeir systematic introduction, wherever practicable, throughout the entire civil service or the government, together with ample provision for their general supervision, in order to secure consistency and uniform Justice. Reports from the Secretary of the luterior, from the Postmaster-general, from the iiostmaster in the city of New York, where such oxatnjnut ions have been some time on trial, and also from the collector of the port, the naval officer, and the surveyor in that city, and from the postmasters and collectors In several of the other large cities, show that the competitive system, where applied, has. In various ways, contributed to improve the public service. I The reports show that the results have beeu salutary iu a marked degree, and that the general application of similar rules cannot fail to be of decided benefit to the service. The reports of the government officers, in the city of New York especially, bear decided testimony to the utility of open competitive examinations in their respective offices, showing that “these examinations, and the excellent qualifications of those admitted to the service through them, have hud a marked incidental efleet upon the persons previously In the service, and particularly upon those aspiring to promotion. There nas l>een, on tho part of these latter, au Increased lutcrost in the work, and a desire to exteud acquaintance with it beyond the particular desk occupied, and thus the morale of the entire force has lioen raised. * * * The examinations have beeu attended by many citizens who have had an opportunity to thoroughly Investigate the scope and character of the tests aud tho method of determining the results, and those

visitors have, without exception, approved the methods employed, and several of them have publicly attested their favorable opinion.” Upon such considerations. I deem it my doty to renew the recommendation contained in my annual message of December, 1877, requesting Congress to tnuke the necessary appropriation for tbe resumption of the work of the civil service commission. Economy will be promoted by authorizing a moderate comiiensatiou to persons In tl*p public service who may perform extra labor upon or under tho commission os the Executive may direct. I am convinced that if a just and adequate test of merit is enforced for admission to the public service niul In making promotions, such abuses ns removals without good cause and partisan and official interference with the proper exercise of the appointing power, will iu large measure disappear. There are other administrative abuses to which the attention of Congress should be asked in this connection. Mere partisan appointments, aud the constant peril as removal without cause, very naturally lead to an absorbing and mischievous political activity on the part of those thus appointed, which not only interferes with the due discharge of official duty, but to Incompatible with the freedom of elections. Not without warrant. In the views of several of my predecessors In the presidential office, and directly ’within tho law of 187l,already cited.lendeavored, by regulation, made on the 22d day of Juno, 1877, to put some reasonable limits to such abuses. It may not be easy, and it may never, perhaps, be necessary, to define with precision the proper limit of political action on the part of Federal officers. But while their right to hold and freely express their opinions cannot be questioned, it Is very plain that they should neither be allowed to devpte to other subjects tbe time needed for the proper discharge of tbeir official duties, nor to use the authority of their office to enforce their own opinions, or to coerce the political action of those who hold different opinions. Reasons of justice and public policy, quite analogous to those which forbid the use of official power for the oppression of the private citizen, Impose upon the government the duty of protecting Its officers and agents from arbitrary exactions. In whatever aspect considered, the practice of making levies, for party purposes, upon the salaries of officer* 1s highly demoralizing to the public service aud discreditable to the countiy. Though an officer should be as free as any other citizen to give his own money in aid of his opinions or his party, he should also be as free as an}’other citizen to refuse to make such gifts. If salaries are hut a fair compensation for the time and labor of the efficer.it to gross injustice to levy’ a tax upon them. If they are made excessive in order that they may bear tho tax.the excess to an indirect robber}- of the public funds. I recommend, therefore, such a revision and extension of present statutes as shall secure to those in every grade of official life or public cm ployment the protection with which a great and enlightened Nation should guard those who are faithful In its service. Our relations with foreign countries have continued peaceful. With Great Britain there are still unsettled questions, growing ont of the local laws of the maritime provinces aud tbe action of provincial authorities, deemed to be in derogation of rights secured by treaty to American fishermen. The United States minister in Jxindon has been instructed to present a demand for $105,305.02, In view of the damages received by American citlxens at Fortune Bay on the Oth day of January, 1878. The subject has been taken into consideration by the British government, and an early reply to anticipated. Upon the completion of the necessary preliminary examinations, the subject of onr participation in the provincial fisheries, as regulated by treaty, will at once be brought to the attention Of the British government with a view to an early and permanent settlement of the whole question, whleh was only temporarily adjusted by the Treaty of Washington. Efforts have been made to obtain the removal of restrictions found Injurious to the exportation of cattle to the United Kingdom. Some correspondence has also occurred with regard to the rescue and saving of life and property upon tho lakes, which has resulted in important modifications of the previous regulations of tbe Dominion government on the subject, In tbe interest of humanity and commerce. In accordance with the Joint resolution of tbe last session of Congress, commissioners were appointed to represent the United States at the two International exhibitions in Australia, one of which is now in progress at Bvdney, and the other to he held next year at Melbourne. A desire has been expressed by our merchants and manufacturers interested in the Important and growing trade with Australia, that an Increased provision should be made by Congress for the representation of our industries at the Melbourne exhibition of next year, and the subject is respectfully submitted to your favorable oonslder The assent of the government haft been given to the landing, on the coast of Massachusetts, of a new and independent transatlantic cable between France, by way of the French island of Bt. Pierre, and this country, subject to any future legislation of Congress on the subject. The condition* imposed, before allowing this connection with our shores to be established, are such as to secure its competition with any existing or future lines of marine cable, and preclude mtisWim. tion therewith, to provide for entire equality of rights to our government and people with those of France in the use of the cable, and prevent any exclusive possession of the privilege as accorded by France to tbe disadvantage of any future cable communication between France and the United States which may be projected and accomplished by onr citizens. An Important reduction of the present rates of cable communication with Europe, felt to be too burdensome to tbe interests of onr commerce, must necessarily flow from the establishment of this competing line. , The attention of Congress was drawn to the propriety of some general regulation by Congress of the whole subject of transmarine cables hy mi predeo?ei ,or inhto message of December 7.1875, and I respectfully submit to your consideration the importance of congressional action in this matter.' The questions of grave importauoe with Bpatn, growing out of tbe incidents of tbs Cuban lnnr

rsotiOß. have been, for the most part, happily and honorably settled. It may reasonsMyae antic* pated that the commission now sttttßff tm Washington, ter the decision of private eases ia this connection, will soon be able to bring its labors to a conclusion. The long-standing question of Bast Florida claims has lately been renewed as a subject of correspondence, and may possibly require congressional action for its final disposition. A treaty with Me Netherlands, with respect to consular rights and privileges, similar to those with other powers, has been signed and ratified, and the ratification* were exchanged on tbe 31st of July last. Negotiations for extradition treaties with the Netherlands and with Denmark are now in progress. Some questions with Switzerland, in regard to pauper and convict emigrants, have arisen, but it is not doubted that they will be arranged upon a Just and satisfactory basis. A questlou lias also occurred with respect to an asserted claim by Swiss municipal authorities to exercise tutelage over parsons and property of Swiss citizens naturalised in this country. It to possible this may require adjustment by treaty. with the German empire frequent qnestions arise in connection with tbe subjects of naturalization and expatriation; but the Imperial government lias constantly manifested a desire to strictly maintain and comply with all treaty stipulations in regard to them. . In consequence of the omission of Congress to provide fora diplomat io representative at Athens, the legation to Greece nas been withdrawn. There is now no ohantiel of diplomatic communication between the two countries, and the expediency of providing for one, iu some form, is submitted to Congress. Relations with Austria, Russia, Italy, Portugal, Turkey, and Belgium ebutinue amicable, and marked by no incident of especial importance. A change of the personal head of the government of Egypt has taken place. No change, however, has occurred lu the relations between Egypt and the United States. The action of the Egyptian government lu presenting to the city of New York one of the- ancient obelisks, which possess sneb historic interest,* Is highly appreciated as a generous mark of international regard. If prosperity should attend tho enterprise of its transportation across the Atlantic, Its erection in a conspicuous position in the ohief■ commercial city of the Nation will soon be accomplished. The treaty recently made between Japan and the United States lu regard to the revision of former commercial treaties, it 1b now believed will be followed by similar action on tbe part of other treaty powers. The attention of Congress to again invited to the subject of the indemnity funds received some years since, from Japan ana China, which, with their accumulated interest, amount to considerable emus. If any part of these funds is Justly due to American citizens they should receive it promptly; may have been received by this government In excess of strictly Just demands, should in some form be returned to the nations to whom it equitably belongs. The government of China has signified Its willingness to consider the question of the emigration of Its subjects to the United States with a dispassionate fairness, aud to co-operate in such measures as may tend tojirevent injurious consequences to the United States. Tho negotiations are still proceeding, and will be pressed with diligence. A question having arisen between China and Japan about the Dew Chew islands, the United States government has taken measures to inform those powers of its readiness to exteud its good offices for the maintenance of peace, if they snail mutually deem it desirable, and find it practicable to avail themselves of tho proffer. It is a gratification to be able to announce that, through the Judicious and energetic action or the military qommandera of the two nations on each side of tltc Rio Grande, under the instructions of their respective governments, raids and depredations have greatly decreased, and, in the localities where formerly most destructive, have now almost wholly ceased. In view of this result, I entertain a confident expectation that the prevalence of quiet on the boraer will soon become so assured as to justify a modification of the present orders to our military commanders as to crossing tho border, without encouraging such disturbances as would endanger the peace of the two countries.

The third installment of the award against Mexico under the claims commission of July 4, 1808, was duly paid, and has been put in conrse of distribution In pursuance of tho act of Congress providing for the same. This satisfactory situation between the two countries leads uie to anticipate an expansion of our trade with Mexico tuid an increased coutribntion of capital and Industry liy our people to the development of the great resources of that country. I earnestly commend to the wisdom of Congress tho provision of suitable legislation looking to this result. Diplomatic intercourse with Colombia to again fully restored by the arrival of a minister from that country to the United States. Tills is especially fortunate in view of tho fact that the question of an inter-ooeanio canal has recently assumed a new and Important aspect, and is now tinder discussion with the Central American countries through whose territory the canal, by the Nicaragua route, would have to pass. It to trusted that enlightened statesmanship on their part will see that the early prosecution of such a work will largely enure to the benefit, not onV of their own citizens and those of the United States, but of the oomraoree of the civilized world. It is not doubted that should the work be undertaken under the protective auspices of the United States, and upon satisfactory concessions for tho right of way, and Ita security, by tbe Central American governments, tbe capital for its completion would be readily furnished from this countiy and Europe, which might, failing such guarantees, prove inaccessible. Diplomatic relations witb Chili have also been strengthened by the reception of a minister from that country. The war between Peru, Bolivia and Chill still continues. The United States have not deemed it proper to interpose in the matter, further than to convey to all the governments concerned the nssuranoe that the friendly offices of the Government of the United Btutes for the rcstoraion of peace npon an honorable basis will be extended, In case the belligerents shall exhibit a readiness to accept them. Cordial relations continue with Brazil and the Argentine republic, and trade with those countries to Improving. A provision tor regular and more frequent mail communication, in our own ships, between the ports of this country and the nations of South America, seems to uie to deserve the attention of Congress, as an essential precursor of an enlargement of onr commerce with them, and an extension of our carrying trade. r A recent revolatioß in Venezuela has been followed by the establishment of a provisional government.. This government has not yet been formally recognised, and It to deemed desirable to await the proposed action of the people, whleh Is expected to give it the sanction of constitutional forms.

A naval vessel has been sent to tho Samoan Island* to make surveys and take possession of the privilege* ceded to the United States by Samoa in the harbor of Pago Pago. A coaling station is to be established there, which will bo convenient and useful to United State* vessels. The subject of opening diplomatic relations with Roumania and ServTa, now Income independent sovereignties, i* at present under consideration, and to tbe subject of diplomatic correspondeqpe. There to a gratifying increase of trod** with nearly all European and American countries, and it is believed that with Judicious action In regard to Us development it can and will lie still more enhanced, and that American products and manufacture* will find new and expanding markets. The reports of diplomatic and consular officers upon this subject, under the xystem now adopted, have resulted in obtaining much valuable information, which ha* been and 'rill continue to be laid before Congress and the public from time to time. Tbe third article of the treaty with Russia, of March 30,1867, by which Alaska was reded to the United States, provide* that the inhabitant* of the ceded territory, with tbe exception or the uncivilized native tnbes, shall be admitted to the ebjoyment of all the rights of citizens of the United States, and shall be maintained and protected in the free enjoyment of their liberty, property and religion. Tbe uncivilized tribes ore subject to sneh laws and regulations as the United States may from time to time adopt in regard to the aboriginal tribes of that country. Both the obligations of this treaty and the n*ccesaittes of the people require that some organf orm of government over the Territory of Alaska be adopted. There appears to be no law for the arrest of persons charged with common-law offenses, such as assaults, robbery and murder, and no magistrate authorized to issue or execute process in such cases. Serious difficulties have already arisen from offenses of this character, not only among the original inhabitants, but among oitlaens <n the United States and other countries, who have engaged in mining, fishing and other business operations within the Territory. A bill authorising the appointment of Justices of tbe peace and constables, and the arrest and detention of persons charged with criminal , and providing for an appeal to united States courts for the district of Oregon, in suitable cases, will, at a proper time, be submitted to Congress. The attention of Congress ia called to the annual report of the Secretary of the Treasury on toe condition of toe public finances. Tho ordinary revenues from ail soar res for tbe toad year ended June 30. 1879., were $273,827,134.46, the ordinary expenditures for the same period were $266,947,883.**, leaving a surplus revenue for toe year of $0,879,300.93. The receipts for the present fiscal fear, ending June 30,1880, actual and estimated, are as fol lows: Actual receipts for the first quarter, commencing July 1,1879, $70343,603.61; estimated rereipts for the remaining three-quarters of the year, total receipt* for the eur-

mat fieeal year, actual and estimated, $288,000, 000. Tto expenditures for tbs same period will be, actual aad estimated, as follows: For the quarter oo—wincing July 1, 1879, actual expend! tinea, $91,683,385110; and for tbe remaining three-quarters of the year tbe expenditures are eattmated at $172,316,814.90. making tbe total expenditures $284,000,000. and leaving an estimated surplus revenue, for the year ending June 80, 1880, of $24,000,000. The total receipts during the next fiscal year ending June 30,1881, estimated according to existing laws, will be $288,000,000; and the estimated ordinary expenditures for the same period will be $278,097,364.39, leaving a surplus of $9,902,635.61 for that year. The large amount expended for arrears of pensions during the last and the present fiscal year, amounting to $21,747,249.60, has prevented the application of tbe full amount required by law to the sinklug-fuud for the current year; hut, these arrears having been substantially paid, it to believed that tbe sinking-fund can hereafter be maintained without any change of existing law. The Secretary of War reports that the War Department estimates for tho fiscal year ending June 30,1881, are #40,380,428.93, the same being tor a less sum of money than any annual estimate rendered to Congress from that department during a period of at least twelve years. * He concurs with the General of tbe Army in recommending such legislation as will authorize the enlistment of the full number of 25,000 men for the line of tbe army. exclusive of the 3,463 men required tor detached duty, and therefore not available for service in tbe field. He also recommends that Congress be asked to provide by law for the disposition of a large number of abandoned military posts and reservations, which, though very valuable iu themselves, have been rendered useless for military purposes by the advance of civilization and settlement. He unites with the Quartermaster-general in recommending that an appropriation be made for the construction of a olteap, and perfectly fire-proof building for the safe storage of a vast amount of money accounts, vouchers, claims and other valuable records 'now in the Quarter-master-general's office, and exposed to great risk of total destruction by fire. He also recommends, in conformity with the views of the Judge Advocate-general, some declaratory legislation in referenoe to the military statute of limitations as applied to the crime of desertion. In these several recommendations I concur. The Secretary of War furt her reports, that the work tor tho improvement of the South Pass of the Mississippi river, undor contract with Mr. James B. Eads, made in pursuance of an act of Congress, has beeu prosecuted during the past year,with a greater measure of success in the attainment of results than during any previous year. The channel through the Boutn Pass, which, at the beginning of operations in June, 1875, had a depth of only seven aud one-half feet of water, had, on the Bth of July, 1879, a minimum depth of twenty-six feet, having a width of not less than two hundred feet and a central depth of tlilrty feet. Payments have been made in accordance with the statute, as tho work progressed, amounting in tlic aggregate to $4,230,000; and further payments will become due, as provided by the statute, iu the event of successln maintaining tho chan iel now secured. The reports of the General ot the Army aud of his subordinates, present a full and detailed accouut of the military operations for tho suppression of hostilities among the Indians of the Ute and Apache tribes, and praise to justly awarded to the officers und troops engaged, for promptness, skill, and courage displayed. The past year has lioen one of almost unbroken peace and quiet on the Mexican frontier, and there is reason to believe that the efforts of this government and of Mexico, to maintain order iu that region, will prove permanently successful. This department was enabled during the past year to find temporary though crowded accommodations, and a safe depository for a portion of its records, in the completed east wing of the building designed-tor the State, War and Navy departments. The construction of the north wing of the building, a part of the structure intended tor the use of the War Department, to being carried forward with all possible dispatch, and the work should receive from Congress such liberal appropriations as will secure its speedy completion. The report of the Secretary of the Navy shows continued improvement in that branch of the service during the last fiscal year. Extensive repairs have been made upon vessels, and two new ships have been completed and made ready for sea.

The total expenditures of the year ended June 30, 1879. including speolflc appropriations not estimated for by tho department, were $13,555,710.09. The expenses chargeable to the year, after deducting the amount of these specific appropriations, Were $13,343,317.79; but this is subject to a reduction of $283,725.99, that amount having been drawn upon warrants, but not paid out daring the year. The amount of appropriations applicable to the last fiscal year was $14,338,646.17. There was, therefore, a balance of $1,479,054.37 remaining unexpended, and to the credit of the department, on June 30, 1879. The estimates for the fiscal year ending June 30, 1881, are $14,864,147.95, which exceeds the appropriations for the present fiscal year $361,897.28. The reason for this Increase is explained in the Secretary’s report. The appropriations available tor the present fiscal year are $14,502,250.67, which will, in the opinion of the Secretary, answer all the ordinary demands of the service. The amount drawn from the treasury from July 1 to November 1, 1879, was $5,770,404.12, of which $1,095,440.33 has been refunded, leaving as tho expenditure for that period $4,674,963.79. If the expenditures of the remaining two-thirds of the year do not exceed the proportion for these four months, there will remain unexpended, at the end of the year, $477,359.30 df the current appropriations. The report of tho Secretary shows the gratifying fact that among all the disbursing officers of the pay corps of the navy there is not one who ■to a defaulter to the extent of a single dollar. I unite with him In recommending the removal of the Observatory to a more healtbful location. That Institution reflects credit upon the Nation, aud lias obtained the approbation of scientific mob in all parts of the world. Its removal from its present location would not only be conducive to the health of its officers aud professors, but wonld greatly increase its usefulness. Tbe appropriation for judicial expenses, which has heretofore been made for the Department of Justioe, in gross, was subdivided at the last session of Congress, and no appropriation whatever was made tor the payment of the fees of marshals and their deputies, either in the service of process orforthe discharge of other duties; and, since Juno 30, these officers have continued the performance of their duties, without compensation from the government, taking upon themselves the necessary incidental outlays, as well as rendering tlieir own services. In only a few unavoidable instances has the proper execution of the process of the United States failed by reason of the absence of the requisite appropriation. This course of official conduct ou the part of these officers, highly creditable totheirfldeiity, wasjidvlsod by the Attorney-general, who informed them, however, that they would necessarily have to rely tor tlietr com|*ensatlon upon the prospect of future legislation by Congress I therefore especially recommend that immediate appropriation lie made by Congress fqr this purpose. The act. making the principal appropriation tor the Department of Justice at previous sessions has uniformly eoiituiued the following clause: “And for defraying tbe expenses which may lie incurred Lu the enforcement of the act approved February 28,1870, entitled ‘An act to amend an net approved May 30. 1870. entitled •Ail aet to enforce the right of citizens of the United States to vote hi the several States of the United States, and for other purposes,’ or any acts amendatory thereof or supplementary thereto.’ ”

No appropriation was made for this purpose for the current year. As no general election for members of (Congress occurred, the ntntosipn was a matter of little practical importance. Bueh election will, however, take place during the ensuing year, and Ibc appropriation mruic blithe pay of marshals and deputies should lie sufficient tq embrace, compensation for the services they may be required to perform at sneh elections. Tho business of tbe.flupremeCourt is.:»t present, largely iu arrears. It cauuot be .oxjiected that mpro causes ran be decided than are non disposed of in it* annual session, or that hv any assiduity the distinguished magistrate* who compose the court can accomplish more than is now done. In tlic conrt* of many of the circuits, also, the business has increased to such an extent that the delay of justice will call the attention of Congress to an appropriate remedy. It to believed that all todone in each circuit which ; can fairly be cxpect«-d front its Judicial force. The evils arising from delay ure less heavily felt , by the United States than by private suitors, as . its causes arc advanced by the courts when it is 1 seen that they involve too discussion of questions ! of a public character. The remedy suggested by the Attorney-general j to the appointment of additional circuit judges ! and tbe creation of an intermediate court of • errors and appeals, which shall relieve tho 6u- ! ureme Court of a part of its jurisdiction, while a : larger force U also obtained for tbe performance l of circuit duties. I commend this suggestion to tho consideration of Congees. It would seem to afford a complete remedy, and would Involve, if ten additional circuit Judges are appointed, an expenditure,or the present rate of salaries,of not more than SOO,OOO . a year, which would certainly be small in com- i pari son with the oldcct* to be attained. The report of the Postmaster-general bear* tes- I tiiuuny to the general revival of business j throughout the country. The receipts of the ! Postoffice Department for the fiscal year ended ! June 30, 1879, were $30,041,982.86. liehig $764,405.91 more than the revenues of the pre- < ceding year. The auiouut realized from the sale j of pmtago-stamp*, stamped envelopes ami post- *

al-cards, was $764,465.91 more than in the pro? oeding year, and *2.387.559.23 more than hi 1877. The expenditures of the department were $33,449,899.45. of which the sum of $376,461.63 was paid on liabilities incurred In preceding The expenditures during the year were SBOI,909.77 less than in the preceding year. This reduction to to be attributed mainly to the operation of the law passed June 17,1373, changing the compensation of postmasters from a commission on the value of stamps sold, to a commission on stamps canceled. Tbe amount drawn from the treasury on appropriations, in addition to thS revenues of the department, was $3,031,454.96, boing $2,276,197.86 less than in the preceding year. The expenditures for the fiscal year ending June 30, 1881, are estimated at $30,920,909; and the receipts from all sources at $32,210,000, leaving a deficiency to lie appropriated for, out of the treasury, of $7,710,900. The relations of the department with railroad companies havebeen harmonized, notwithstanding the general reduction by Congress of their compensation, by tho appropriation tor special facilities, and tbe railway post office lines have been greatly extended, especially in the Southern States. Tho interests of the railway-mail sen-ice and of thst public wonld be greatly promoted, and the expenditures could be more readily controlled by the classification of the employes of the railwaymail service as recommended liy the Postmastergeneral, tho appropriation for salaries, with respect to which the niaximun limit to already fixed by law, to be made in gross. The Postmaster-general recommends an amend ment of the law regulating the increase of compensation for increased service and Increased sliced on star routes, so as to enable him to advertise for proposals for such increased servico and speed. He also suggests tho advantages to accrue to the commerce of tho country from the enactment of a general law authorizing contracts with American-built steamers, carrying the American flag, for transporting the mail between ports of tho United States and ports of thoWest Indies and South America, at a fixed maximum price per mile, the amount to be expended being regulated by annual appropriations, in like manner with the amount paid tor tbe domestic star service. The arrangement made by the Postmaster general and the Secretary of the Treasury for the collection of duty upon books received in tho mail from foreign countries, has proved so satisfactory in Its practical operation that the recommendation is now made that Congress shall cx-s tend the provisions of the aet of March 3, 1879, under which this arrangement was made, so as to apply to all other dutiable articles received in tho triads from foreign countries. ' The reports of the Secretary of the Interior and of the Commissioner of Indian Affairs, setting forth the present state of our relations with tho Indian tribes on our territory, the measures taken to advance their civilization and prosperity, and the progress already achieved by them, will be found or more than ordinary interest. Tho general conduct of our Indian population has been so satisfactory that the occurrence of two disturbances, which resulted in bloodshed ami destruction of property, to all the more to be lamented. The history of the outbreak on the White River Ute reservation in Western Colorado has become so familiar by elaborate reports In the public press, that its remarkable incidents need not bo stated here in detail. It to expected that the settlement or this difficulty will lead to siicli arrangements aa will prevent further hostile contact between the Indiaus and the border settlements in Western Colorado. The other disturbance occurred at tho Mesealero agency, in NeW Mexico, where Victoria, tho head of a small band of marauders, after coriimittfng many atrocities, being vigorously chased by a military force, made his way across tho Mexican border, and is now on foreign soil. While these occurrences, in which a comparatively small number of Indians were engaged, are most deplorable, a vast majority of our Indian population have fully justified the expectations of those who believe that by humane and peaceful Influences the Indian can be led to abandon the habits of savage life and io develop a capacity for useful and civilized occupations. What they have already accomplished In the pursuit of agricultural and mechanical work, the remarkable success which has attended the experiment of employing as freighters a class of Indians hitherto counted among the wildest and most intractable, anil the general and urgent desire expressed by them for the education or their children, may l>e taken as sufficient proof that they will be fouud capable of accomplishing much more if they eon tin ne to be wisely and fairly guided. The "Indian policy” sketched In the report of the Secretary of the Interior, the object of which is to rnuke liberal provision for tho education of Indian youth, to settle the Indians upon farm-lots In severalty, to give them title in fee to their farms, Inalienable tor a certain number of years, and when their wants are thus provided for, to dispose by sale of the lands on their reservations not occupied and used by them, a fund to be formed out of the proceeds for the benefit of the Indians, widen will gradually relieve the government of the expenses now provided for by annual appropriations, must commend itself asjust und beneficial to the Indians, and as also calculated to remove those obstructions which the existence of large reservations presents to the settlement and development of the country. I therefore earnestly recommend tho enactment of a law enabling tlie government to give Indians a title in fee, in alien aide for twenty* five years, to the farm-lands assigned to them by allotment. I also reisyit the recommendation made in my first annual message, that a law bo passed admitting Indians who can give satis:actory proof of having, by their own labor, supported their families.for a number of years, and who are willing to detach themselves from their tribal relations, to tbe benefit, of tbe homestead act. and to grunt them patents containing the same provision of inalienability for a certain period.

The experiment of sending a number of Indian children, of botii sexes, to the Hampton Normal and Agrieulturiil Institute, in Virginia, to receive an elementary English education aud practical instruction in fanning and other useful industries, lias led to results so promising, that it was thought expedient to turn over the cavalry barracks fft Carlisle, in Pennsylvania, to the Interior Department for the establishment of an Indian school ou a larger scale. Tills school has now 158 pupils, selected from various tribes, and is in full operation. Arrangements are also made for the education of a number or Indian boys and girls i*eloiigiug to the tribes on the Paific -me. In a similar manner, at Forest Grove, iu Oregon. There institutions will commend tlx-mrelvc* io tile IHieraHty of Congress, und to the philanthropic munificence of the American people. spring, information was received of the* organize!km of an extensive movement iu tho. Western States,.the object of which was the occupation by unauthorized persons of certain lands in the Indian Territory ceded by tile <’in rokee# to the government for the purpose of settlement hy other Indian tiiltes. On the 29th oi April, T issued a proclamalion warning ail persons nuainst participation in #;:-h an attempt, and. by tlte eo-operation of a military ioree, the invasion was promptly elieek.-d. It is my purpose to protect flic lights'of the Indian inhabitants of that Territory to the full extent of the. executive. )M)wer. But it pould lie unwise to Ignore tlie fact that n Territory so large and ~o fertile, with a population so sjmrre and v. it It so great a wealth of unused resources, will Is’ foaml more cx|M>*cd to the reisdition of such attenmts as Itappeinti tliis year, when tlie sorromidiiM- States are more dcns-ly settled, and the westward moveiucht of our population looks still more eagerl} for fresh lands to occupy. Under sin-li eiienmsSam es Hie difficulty of maintainin'’(lie Indian Territory in its present state will great iv increase, and Iho Indian tribe# inhabiting it woiild do well to pro-

l«*rc for such a contingency, r. therefore, fniivap prove at the advice given to them bv tin: Secretary of the Interior on a ft-ccid occasion, ro divide among themselves in severalty as large a quantity of tlicir lands ;>« they can ciiliiv iie. t<» m-qnrre individual title i:i fee. insleu tof their present tribal ownership in common, and t-> eonsidcr in what manner the balance of toeir lands maj lia disjsisc.l of by the govenuu -nt for t .ie.tr iN-nefit. By adopting such a policy MigV w.i-iij tiuircoerbifiily secure for themselves the value of their |H>ss4‘*si<>ns. and at the s ine time pnnn.r.j j their progress in civilization and pros;* rif j than i»> sisliiivoriug lo j»eri>«-ltial* the pn -rat ; slate of iiiings in I In;'Territory. TheqiicsMon wli.-thi-r » change J:i the -tut ml. of ilie Indian service should lie/ns-lc, wasiiiilm j Forty-fifth Congress refem-d to a joiatcrxiiaid- [ to* of both house* for Inquiry and repn-t. in my last annual message I csjtnwr! the Imp,*. | that the decision of that qite-q-nn, ; then in prosper l, --woubl a—.st I further agitation of this subject, s o-li a-.'.-a- ----| tion to-ing apt lo produce a disturbing cli'.-.-t ! Upon the service us well a* til; Indians t-ii-Ui-m-lves.’’ Since thou, the committer having reported, ilie question has been deckl.-ii ij, Un- negative l>y a vote in the House of Representative*. . For tin- reason* in-re *tf|!<-d. and in tie r <rf n„. fact that further uncertainty on fids p .in; v. be calculated lo obstruct other i:i-c-!* r; --drd legislation, to woakeu the discipline ~f r M . . , r . vice, anti to iiiisett'e salutary ntntsitrp* n,,« juxigrcs* for the. gov«nii<M-nf and imo. .i- <m: -u of the Indians, lr- siieettolly rei'.meiicnd t !irt ;■■■* decision arrived at by Congress at it* la-j s.—->;ti lie lH’iniitti <1 to st iml. The effort* made by the Department of f.« Interior to arrest the dei«-.1-;iie,is oa a tliuher.laiidx of the United nt-tes bav.- i„.. „ (tnitiiuied. and iiavc uh t with r«.a*:derni>ie *ueees*. A largo number of i-a*s «f (n- -, :-- have Iw-eii l>;osccut*sl in the ,-oorts w: j United States; <ahe!-s linve Ik—a -ej.*— trespassers idTerinc to make pap **ui u .i, ■ eiiiiucut for the value of tin- timber tai.-n bl them. Tlic pnawri* of these ami fifcitlcuiauu turned into the treasury, far exceed

inmMßt the MUM appropriated IfttMtM wimmlSKi t*s"SS thMth* destrurtieß at our potato foeMtsby <tepredattea. aUboujch Met fUM still ocaar, ku Wt greatW reduced ia extent. and it ia prohable that if the pwaeut sSastt^TSsstzHZ passes, at least thuae oa a largo scale. oaa be entirely xnpprcsscd. except In the territories w here timber for the daily reqataanaat a of the population eanaut, unfit r the present atate of the law. be otherwiae obtained. 1 tliercfor* earnest Ir invite the attention of Coheres* to the recommendation made by the Secretary of the Interior, that a law be enacted enabling the forermment to eeU timber from the public laa& without conveying the fee. where eocb lands are principally valuable tor the timber thereon, such mire to be so regulated uto oonforta to damae tie went* and business requirement*. while at the same time guarding against a' sweeping deatniKlon of the fareata. The enactment of each a law appears to become a more pressing neoeetn former mens age* are renewed in favor of enlarging the faculties of the Deietrtmeift of Agriculture. Agriculture ia the leadiug Internet and the permanent industry at our people. It te to the abundance of agricultural production, aa compared with our borne oonamnptlon, and the largely Increased and highly profitable market abroad which we have enjoyed in recent yean.' that we are mainly Indebted for our present prosperity aa a people. We must look for its continued maintenance to the same substantial resource. There is no branch of lndn»a In which labor,'directed by aefontifle knowle. yields such increased production in oompari«ou with unskilled labor, and no branch of the public service to which the encourage (sent of liberal appropriations can be more appropriately extended. The omission to render such aid la not a wise economy; but, on the contrary, undoubtedly results tn leases of immense sum* annually that might be saved through well-directed . efforts by the government to promote this vital interest. The results already accomplished with the very limited means heretofore placed at the com maud of the Department of Agriculture i* an earnest of what may be expected with increased appropriations for the several purposes Indicated in the report of the commissioner, with a view to placing the department upon a footing which will enable it to prosecute more effectively the objects for which it is established. Appropriations are needed for a more complete laboratory, tor the establishment of a veterinary division, and a division of forestry, and for an increase of force. The requirements for these and other pur poses, indicated in the report of the commissioner under the bead of the immediate necessities of the department, will not involve any expenditure of money that the country cannot with propriety now undertake in the interests of agrieulIt is gratifying to learn from the Bureau of Education (he extent to which 'educational privileges throughout the United Btates have Wen advanced during the year. Mo more fundamental responsibility rests upon Congress than that of devising appropriate measures of financial aid to education, supplemental to local action in the States and Territories, and in the District of Columbia. The wise forethought of the founders of our government has not only furnished the basis for the support of the common-school systems of the newer Blades, but laid the foundstious for the maintenance of their universities and colleges of agriculture and the mechanic art*.. Measures in accordance with this traditional policy for the further benefit of ail these interests, and the extension of the same advantage* to every portion sf the country, it is hoped, will receive your favorable consideration. To preserve and perpetuate the national literature should be among the foremost cares of the national legislature. The library gathered at the Capitol still remains unprovided with any suitable accommodations for its rapidly-increas-ing stores. The magnitude and Importance of the collection. increased as it Is by the deposits made under the law •f copyright, by domestic and foreign exchange*, and by the scientific library of the Bniithsoulan Institution, call for building accommodations which shall be at once adequate and fire-proof. The location of such a public building, which should provide for the pressing necessities of the present, ami for the vast increase of the Nation's hooks in the future. Is a matter which addresses itself to the discretion of Congress. It is earnestly recommended as a measure which should unite all suffrages, and which should no longer be delayed. The Joint commission crested by the act of Congress of August 2.1870, for the purpose of supervising and directing the completion of the Washington National monument, or whioh commission the President is a member, has given careful attention to this subject, and alreauy the strengthening of the foundation has so far' progressed as to insure the entire success of this part of the work. A massive layer of masonry has been introduced below the original foundation; widening the base, increasing the stability of the structure, and rendering it possible to carry the shaft to completion. It Is earnestly recommended that such further appropriations be made for the continned prosecution of the work as may be necessary for the completion of this national monument at an early day. In former messages, impressed with the importance of the subject, I have taken occasion to commend to Congress the adoption of a generous policy towards the District of Columbia. The report of the Commissioners of the District, herewith transmitted, contains suggestions and recommendations, to all of which I earnestly invite your careful attention. I ask yonr early'and favorable consideration of the views which t hey express as to the urgent need of legislation for the reclamation of the marches of the Potomac aud its Eastern branch, within the limits of the city, and for the repair of the streets of the CapitoL. heretofore laid with wooden blocks, and now bv decay rendered almost impassable, and a source of imminent danger to the boalth of Its citizen*. The means at the disposal of the commissioners are wholly inadequate for the accomplishment of these important works, and should be .supplemented by tiiuely appropriations from ihe Federal treasury. The filling of the fiats in front of the city will add to the adjacent lands and parks now owned by the United States, a large and valuable domain, sufficient, it is thought, to reimburse its entire cost, and will also, as an incidental result, secure the permanent Improvement of the river for the purposes of navigation. The constitution having invested Congress with supreme irnd exclusive Jurisdiction over lUc District of Columbia, Hs citizens must of necessity look to Congress alone for all needful legislation affecting their interests; aud as the territory of this District is the common property of the people of the United States, who, equally with its resident citizens, are interested In the prosperity of their capital, I cannot doubt that you will bo amply sustained by the general voice of the country In any measure yon may adopt for this purpose. I also luvlte tfio favorable consideration of Congress to the wants of the public-schools of this District, as exhibited in the report of the commissioners. While the number of pupils is rapidly increasing, no adequate provision exists for a corresponding increase of school accommodation. and the commissioners are without means to meet this urgent need. A number of the buildings how used for school purposes are rented, and are, in important particulars, unsuited for the purpose. The cause of popular education In the District of Columbia is surely entitled to the same consideration at the hands of the National government as in the several States and Territories. to which munificent grants of the public lands have been made for the endowment of schools and universities. Rem euro Rn B. Hates. siutdve Mansion, December 1,1879.