Rensselaer Union, Volume 10, Number 11, Rensselaer, Jasper County, 29 November 1877 — Page 5

MESSAGE SUPPLEMENT.

PRESIDENT’S MESSAGE

Bis Views on the Pacification Policy, tie Silver-Coinage Question, CivilService Reform, Etc., Etc. Recommendations to Congress— Summary of Departmental Reports.

Fellow-Citizens of the Senate and House of Representatives : With great gratitude to the Bountiful Giver of all good, 1 congratulate you that, at the begining of your first regular siasion, you find our country blessed w.tli health and peace, and —abundant- hnrvcFtir,’ Sudwith encouraging prospects of an early return of general prosperity. PACIFICATION. To complete and make permanent the pacification of the eountij cuuiuiuis to be, and, until it is fully iiccomplisiied, must remain, the most important of all our nat.onal interests. Theearnest purpose of good citizens generally to unite their efforts in those endeavors is evident. It found decided expression in the resolutions announced in IH7G, by the National Conventions of the leading political parties of the country. There was a widespread apprehension that the momentous results in our progress as a Nation, marked by the recent anrtuidnients to the Constitution, were in imminent jeopardy; that the good understanding which prompted (heir adoption in the interest of a loyal devotion to the general welfare, might prove a barren truce, and that the sections of the country once engaged in civil strife might be again almost as widely severed and disunited as they were when arrayed in arms against each other. The course to be pursued, which, in my judgment, seemed the wisest, in thrpresence of this emergency, was plainly indicated in my inaugural address. It pointed to the time, which all our people desire to see, when a genuine love of our whole country and of all that concerns its true welfare shall supplant the destructive forces of mutual animosity of the races and of sectional hostility. Opinions have differed widely as to the measures best calculated to secure this great end. This was to be expected. The measures adopted by the Administration have been subjected to severe and varied criticisms. Any course whatever which might have been entered upon would, certainly have encountered distrust and opposition. These measures were, in my judgment, such as were most in harmony with the Constitution and with the Senius of our people, and best adapted, user all circumstances, to attain the end irt view. Benpficent results already apparent prove that these endeavors are not to be regarded as a mere experiment, and should sustain and encourage us in our efforts. Already in the brief period which lias elapsed the immediate effectiveness, no less than the justice, of the course pursued, is demonstrated, and I have an abiding faith that time will furnish its ample vindication in the minds of the great majority of my fellow-citizens. ■ The discontinuance of the use of the finny for the purpose of upholding the local Governments in two of the States of the Union was no less a Constitutional duty and requirement, under the circumstances existing at the time, thnn it was a much-needed measure for the restoration of local self-government, and the promotion of National harmony. The withdtawnl of the troops from such employment was effected deliberately, and with solicitous care for the peace and good order of society and the protection of property and persons and every right of all classes of citizens. The results that have followed are indeed significant and encouraging. All apprehension of danger from remitting these States to local self-gov-ernment is dispelled, nnd a most salutary change in the minds of the people has begun, nnd is m progress in every part of that section of country, once the theater of unhappy civil strife, substituting for suspicion, distrust and aversion, concord, friendship and patriotic attachment to the Union. No unprejudiced mind willdeny that the often fatal collisions, which for several years have been of frequent occurrence, and have alarmed the public mind, have almost entirely ceased, and that a spirit of mutual forbearance and" hearty National interest has succeeded. There has been a general re-establishment of order, and of the orderly administration of justice. Instances of remaining lawlessness have become of rare occurrence; political turmoil and turbulence have disappeared; useful industries have been resumed; public credit in the Southern States have been greatly strengthened, and the encouraging benefits of a revival of commerce between the sections of the country lately embroiled in civil war are fully enjoyed. Such are some of the results already attained upon which the country is to be congratulated. They are of such importance that we may with confidence patiently await the desired consummation that will surely come with the natural progress of event*, PROTECTION or THE COLORED PEOPLE. It may not be improper here to say that it should be our fixed ana unalterable determination to protect, by all available and proper means, under the Constitution and the laws, the lately-emancipated race in the experiment of their rights and privileges, and I urge upon those to whom heretofore the colored people nave sustained the relation of bondmen, the wisdom and justice of humane and liberal loca legislation with respect to their education and general welfare: a firm adherence to the laws, both National and State, as to the civil and political rights of the colored people, now advanced to full nnd equal citizenship; the immediate repression and sure punishment, by the National and local authorities within their respective jurisdictions, of every instance of lawlessness and violence toward them, ns required for the security alike of both races, and is justly demanded by the will, and the complete protection of every citizen in the full enjoyment of every Constitutional right, will surely be attained. Whatever authority rests with me to this end, 1 shall not hesitate to put forth.- Whatever belongs to the power of Congress and the jurisdiction of the courts of the Upiomthey may confidently be relied upon to Srovide ana perform, nnd to the Legislatures, le Courts and the Executive authorities of the several States, I earnestly appeal to secure by adequate, appropriate nnd seasonable means within their borders these common and uniforfn rights of a united people whichdwvcs liberty, abhors oppression nnd reveres justice. These objects are very dear to my heart. I shall continue most earnestly to strive for their attainment. The cordial co-operation of all classes of all sections of the country, and of both races, is required for this purpose, and with these blessings assured, and not otherwise, we may safely hope to hand down our free institutions of government unimpaired to the generations that will succeed us. THE CURRENCY AXp SPECIE RESUMPTION. Among the other subjects of great and general importance to the people of this country I cannot be mistaken, I think, in regarding as pre-emi- ' nent the policy and measures which are designed to secure the restoration of the currency to that normal and healthful condition in which, by the resumption of specie payments, our internal trade and foreign commerce may be brought into harmony with the system of exchanges which is based upon the precious metals as the intrinsic money of the world, in the public judgment. That this end should be sought and compassed as speedily and as securely as the resources of the people and the wisdom of the Government can , accomplish, there is a much greater degree of unanimity than is found to concur in the specific measures which will bring the country to this desired end. or the rapidity of the steps by which it can be safely reached. Upon a most anxious and deliberate examination, which I have felt it my duty to give tothe subject, I am but the more confirmed in the opinion which I expressed in accepting the nomination for the Presidency, and again upon my inauguration, that the policy of resumption should be pursued by every suitable means, and that no legislation (_ would be wise that should disparage the import-, anoe or retard the attainment of that result. I have no disposition, and certainly. no right, to

question the sincerity or the integrity of opposing opinions, and would neither conceal nor undervalue the considerable difficulties, and i even occasional distress, which may attend the progress of the Nation toward this primary I condition, to it i general and permanent proeper- , ity. .1 must, however, adhere to my most earnest that any wavering in purpose, or un--1 steadiness in methods, so far from avoiding or reducing the inconvenience inseparable from the 1 transition from an irredeemable to a redeemable paper currency, would only tend to an increased , and prolonged disturbance in values, which, un- | less relieved, mu t end in serious disorder, dishonor and disaster in the financial affairs of the I Government and of the people. The mischiefs which I apprehend and urgently deprecate, , are coufined to no class of the people; indeed, they but seem to me most certainly to threaten the industrial masses, whether their occupations are of skilled or common labor. To them, it seems to me, it is of prime importance that their labor should be compensated in money which is, in itself, fixea in exchangeable value, by being irrevocably measured by the labor necessary to its production. This permanent quality of all the money of the people is sought for and can only be gained by the resumption of specie payment. The rich, the speculative, the I operating, the money-dealing classes, may not always feel the mischiefs of, or may find casual | profits in, a variable currency, but the misfor • tunes of such a currency to those who are paid salaries or wages are inevitable and remediless. SILVER COINAGE. ! Closely connected with this general subject of the resumption of .specie payments is one of subordinate, but still of grave importance—l mean the readjustment of our coinage system by the renewal of the silver dollar as an element in our specie currency, endowed by legislation with the quality of legal-tender, to a greater or less extent. As there is no doubt of the power of Congress, under the Constitution, to coin money and regulate the value thereof, and as this power covers the whole range of authority applicable to the metal, the rated value, and the legal-tender quality which shall be adopted for Ithe coinage, the consideration which should induce or discourage a particular measure connected with the coinage belongs dearly to the province of legislative discretion, and of public expediency. Without intruding upon this province of legislation in the least, I have yet thought the subject of such critical importance, in the actual condition of our affairs, as to present an occasion for the exercise of the duty imposed by the Constitution on the President, of recommending to the consideration of Congress such measures as he shall judge necessary and expedient. Holding the (minion, as I do, that neither the interest of the Government, nor of the people of the United States, would be promoted by disparaging silver as one of the two precious metals which furnish the coinage of the world, and that legislation which looks to maintaining the volume of intrinsic money to as full a measure of both metals as their relative comTuercial valuee will permit, would be neither unjust nor inexpedient. I must ask your indulgence to a brief and definite statement of certain essential features in any such legislative measure which I feel it my duty to recommend. I do not propose to enter the debate represented on both sides by such able disputants in Congress, and before the people, and in the press, as to the extent to which the legislation of any one Nation can control this question, even within its own borders, against the laws of trade, or the positive laws of other Governments. The wisdom of Congress in shaping any particular law that may lie presented for my approval may wholly supersede the necessity of my entering into these considerations, nnd I willingly avoid either vague or intricate inquiries. It is only the. certain, plain and practical traits of such legislation that I desire to recommend to your attention. In any legislation providing for a. silver coinage, regulating its value, and imparting to it the quality of lerral tender, it seems to mo of great importance that Congress should not lose sight of its action as operating in a two-fold capacity and two distinct directions. If the United States Government were free from a public debt, its legislative dealing with the question of silver coinage would lie purely sovereign and governmental, under no restraint, but those of Constitutional power and the public good as affected by the proposed legislation; but in the actual circumstances of the Nation, with a vast public debt distributed very widely among our own citizens and held m preat amounts also abroad, the nature of the silver-coinage measure as affecting this relation of the Government to the holders of the public debt becomes; in any proposed legislation, cf .the highest concern. The obligation of the public faith transcends all questions of profit or public advantage; otherwise, its unquestionable maintenance is the die tate as well as the highest expediency of the most necessary duty, and will be carefully guarded b y Congress and the people alike. The public debt of the United States, to the amount of $729,000,000, bears interest at the rate of 6 per cent., anil $708,000,000 at the rate of 6 per cent., and the only way in which the country can be relieved from the payment of the high rates of interest is bv advantageously refunding the indebtedness. Whether the debt is ultimately paid in gold or ! silver coin is of but little moment, compared with the possible reduction of interest one-third I by refunding it at such reduced rate. If the Unifed States had the unquestionable riuiit to pay its bonds in silver coin, the little benefit from the process would lie greatly overbalanced by the injurious effect of such payment. If made aa proposed, against the honest convictions of the public creditors, all the bonds that have been issued since Feb. 12. 1873. when gold became the only unlimited legal-tender metallic currency of the country, are justly payable in gold coin, or in coin of equal value. During the time of those issues, the only dollar that could be or was received by the Government in exchange for bonds was the gold dollar. To require the public creditors to take in repayment any dollar of less commercial value would be regarded by them as a repudiation of the full obligation assumed. The lioiids issued prior to 1873 were issued ata time when the gold dollar was the only coin in circulation or contemplated by either the Government or the holders of the bonds as the coin in which they were to lie paid. It is far lictter to pay these ucm'As in that coin than to seem to take advantage of the un- - f<JW<SSWq&tik<f-*ilver. bullion-ferpitv irranew issue of silver coin made so much leai valuable. The power of the United States to coin money and to regulate the value thereof ought never to be exercised for the purpose of enabling the Government to pay its obligat ions in a coin of less value than that contemplated by the parties when the bonds were issued. Any attempt to pay the National indebtedness in a coinage of less commercial value that the money of the world would involve a violation of the public faith, and work irreparable injury to the public credit. It was the great merit of the act of March, 1869, that, in strengthening the public credit, it removed all doubt as to the purpose of the United States to pay their bonded debt in coin. That net was accepted as a pledge of public faith. The Government has derived great benefit irom it, in the progreis thus far made in relunuing the public debt nt low rates of interest. An adherence to the wise and just policy of an exact observance of the public faith w;Il enable the Government rapidly to reduce the burden of inteiest on the National debt to an amount exceeding $20,000,000 per annum, and effect an aggregate saving to the United States of more than $300,*90,000 before the bonds can ho fully paid. In adapting the new silver coinage to the ordinary uses of currency in the evoi y-day transactions of lite, and preserving the quality of legifl tender to be assigned to it, a consideration of the first importance should lie so to adjust the ratio between the silver and the gold coinage, which now constitutes our specie currency, as to accomSlish the desired end of maintaining the circulaon of the two metallic currenciea, and keeping up the volume of the two precious metals as our intrinsic money. It is a mixed question for scientific reasoning and historical experience to , determine how far, and by what methods, a practicable equilibrium can Be maintained which, will keep both metals in circulation in their apequality oVrom&ercial value, free from disturbing fluctuations. is hardly attainable. and without it an untried legal-tender forprivate transactions, assigned to both inetels, would tend to drivqout of circulation the dearest coinage and disappoint the principal object proposed by the legislation in view. I apprehend, therefore, that the two conditions of a near approach to equality of commercial value, between the gold and silver coinage of the same denomi • lOition, and of a limitation of the amounts for I which the silver coinage is to be a legal-tender.

are esnefatial to maintaining both in circulation. If these conditions can be successfully obsS-ved, the issue from the Mint of silver dollars would afford material assistance tothe community in the transition to redeemable paper money, and would facilitate the resumption of specie payment and ita permanent establishment. Without these conditions I fear that . only mischief and misfortune *would flow I from a coinage of silver dollars, with the I quality of unlimited legal-tender, even in private transactions. Any expectation of temporary ease from an issue of silver coinage, to •I pass as a legal-tender at a rate materially above , ite commercial value, is, I am persuaded, a delusion; nor can I think that there is any sub- ' stantial distinction between an original issue of I silver dollars at a nominal value materially i above their commercial value and the restoration of the silver dollar at a rate which once was but has ceased to be its commercial value. Cer--1 tainly the issue of our gold coinage, reduced in 1 weight materially below its legal-tender value | would not be any the less a present debasement I of the coinage, by reason of it equaling or even exceeding in weight a good coinage, which at some past time had been commercially equal to the legal-tender value assigned to the new issue. In recommending that the regulation of any silver coinage which may be authorized by Congress should observe the conditions of commercial value and limited legal-tender, I am governed by the feeling that every possible increase should be given to the volume of metallic money which can be kept in circulation, and thereby every possible aid afforded to the people in the process of resuming specie payments. It is because of my conviction that a disregard of these conditions would frustrate the good results which are desired from the proposed coinage, and embarrass with new elements of confusion and uncertainty the business of the country, that I urge upon your attention these considerations. I respectfully recommend to Congress that in any legislation providing for a silver coinage, and imparting to it the quality of legal-tender, there be impressed in the measure a firm provision exempting the public debt heretofore issued and now outstanding from the payment, either of principal or interest, in any coinage of less value than the present gold coinage of the country. THE CIVIL SERVICE. The organization of the Civil Service of the country has, for a number of years, attracted more and more of public attention. So general has become the opinion that the methods of admission to it and the conditions of remaining in it, are unsound, that both the great political par- ' ties have agreed, in the moat explicit declarai tions, of the necessity of reform, and in the most ■ emphatic demands for it. I have fully considered the declarations and demands to be the expres- ' sions of the sincere convictions of the intelligent I masses of the people upon the subject, and that they should be recognized and followed by ; earnest and prompt action on the part of i the Legislative ana Executive Departments of the Government. In pursuance of the purpose indicated before my accession to office, I endeavored to have my own views distinctly understood, i and, upon my inauguration, my accord with public opinion was stated in terms believed to be plain and unambiguous. My experience in the Executive duties has strongly confirmed the belief in the great advantage. that the country would find in observing strictly the plan of the Constitution, which imposes upon the Executive the sole duty j ana responsibility of the selection of those Federal officers wno bv law are appointed, not elected, and which in uke manner assigns to the Senate the cbmplete right to advise, and consent to or to reject, the nominations so made, while the House of Representatives stands as the public censors of the performance of official duties, with the prerogative of investigation and punishment in all cases of dereliction. The blemishes and imperfections in the Civil Service may, as I think, be traced in most cases to a practical confusion of the duties assigned to the several Departments of the Government. My purpose in this respect has been to return to the system established by the fundamental law, and to do this with the heartiest co-operation and a most cordial understanding with the Senate and House of Representatives. The political diffi-. culties in the selection of numerous officers for posts qf widely-varying responsibilities and duties, :Re acknowledged to be very great. No system can be expected to secure absolute freedom from mistakes, and the lieginning of any attempted change of custom is quite likely to be more embarrassed in this respect than any subsequent period. It is here that the Constitution seems to most prove its claim to the great wisdom accorded to it. It gives to tire Executive the assistance of the knowledge and experience of the Senate, which, when acting upon nominations as to which they may be disinteiested and impartial judges, secures as strong a guarantee of freedom from errors of importance as is.perhaps possible in human affairs. In addition to this I recognize the public advantage of making all nominations as nearly as possible impersonal in the sense of being free from mere caprice or favor in these directions, and in tjwsft.9l.bcca which special training is of greatly increased value, I believe such a rule as tothe tenure of office should obtain as may induce men of proner qualifications to apply themselves industriously to the task of becoming proficient. Bearing these things in mind, 1 have endeavored to reduce the number of changes in subordinate places usually made upon the change of the general Administration, and shall most heartily co-opcrate with Congress in the better systematizing of such methods and rules of admission to the public service and of promotion within it as may promise to be most successful in making thorough comiwtcncv, efficiency and. character the decisive tests in these matters. 1 ask the renewed attention of Congress to what I has already been done by the Civil-Service Commission, appointed in pursuance of the act of Congress, by my predecessor, to prepare and revise the Civil-Service rules. In regard to much of the Department service, especially at Washington, it may be difficult to organize a better system than that which has been provided, and it is now being used to a considerable extent, under my direction. The Commission has still a legal existence, although for several years no appropriation has been made for defraying its expenses. Believing that this Commission has rendered valuable service and will be a most useful agency in improving the administration of the Civil Service, I respectfully recommend that a suitable appropriation be immediately made to enable it to continue its service. It is my purpose to transmit to Congress, as early as practicable, the report by the Chairman of the Commission, and to ask your attentien to such measures upon, this subject as, in my opinion, will further promote the improvement of the Civil Service. FOREIGN RELATIONS. During the past year the United States have continued to maintain peaceful relations with foreign. Bowers. The outbreak of war between Russia and Turkey, though atone time attended by grave apprehension as to its effect upon other European Nations, has had no tendency to disturb the amicable relations existing between the United-States and each of the two contending Powers. An attitude of just and impartial neutrality has been preserved, and I am gratified to state that in the midst of their hostilities both the Russian and the Turkish Governments have shown an earnest desire to adhere to the obligations of all treaties with the United States, and give due regard to rights of American citizens. ITALY. By the terms of the treaty defining the rights, immunities and privileges of Consuls between Italy and the United States, ratified in 1868, either Government may, after the lapse of ten years, terminate the existence of the treaty, by giving twelve months’ notice of its intention. The Government of Italy, availing Itself of this facility, has now given the required notice, and the treaty will accordingly end on the 16th of Septemlier, 1878. It is understood, however, that the Italian Government wishes to renew it in its general ■hope, describing only certain modifications in Sime of its articles. In this disposition I concur, and shall hope that no serious obstacles may intervene to prevent or delay the negotiation of a satisfactory treaty. PASSPORTS AND NATURALIZATION. Numerous questions in regard to passports, naturalization and exemption from military service have continued to arise in the cases of emigrants from Germany, who have returned to their native countrv. The provisions of the Treaty of Feb. 22,186 ft, however, have proved to be so simple and so judicious that the Legation of the United States at Berlin has been able to adjust all claims arising under it, not only without detriment to the amicable relations existing between the two Governments, but, it is believed, without injury or injustice to duly naturalized American citizens. It is desirable that the Treaty original ly made with the North German Union, in 1867, should now be extended so as to apply equally te all the States of the Empire of Germany. THE FRENCH EXPOSITION. The invitation of the Government of France to participate in the Exposition of the products of agriculture, industry and the fine arts, to be held at Paris during the coming year, was submitted for your consideration at the extra session. It is not doubted that its acceptance by the United States, and a well-selected exhibition of the products of American industry on that occasion, will tend tcAtiniulate international commerce and

emigration, aa well as to promote the traditional friendship between the two countries. EXTRADITION. A question arose some time since m to the proper meaning of the Extradition Articles of the’Treaty of 1842 between the United States and Great Britain. Both Governments, however, are now in accord in their belief that the question is not one that should be allowed to frustrate the ends of justice or to disturb the friendship between the two Nations. No serious difficulty has arisen in accomplishing the extradition of criminals when necessary. It is probable that the points of disagreement will in due time be settled, and, if need be, more explicit declaration ■ be made in a now treaty. The Fishery Commission. under Arts. 18 and 35, Treaty of Washington, has concluded its session. The result of the deliberations of the Commission, as made public by the Commissioners, will be communicated to Congress. A treaty for the protection of trade-marks has been negotiated with Great Britain which has been submitted to the Senate for its consideration.

MEXICO. The revolution which recently occurred in Mexico was followed by the accession of the successful party to power and the installation of its Chief General, Porfirio Diaz, in the Presidential office. It has been the custom of the United States, when such changes of government have heretofore occurred in Mexico, to recognize and enter into official relations with the de facto Government as soon as it should appear to have the approval of the Mexican people, and should manifest a disposition to adhere to the obligations of treaties and international friendship. In the present case such official recognition has been deferred by the occurrences on the Rio Grande border, th e records of which have already been communicated to each house of Congress, in answer to their respective resolutions of inquiry. Assurances have been received that the authorities at the seat of the Mexican Government have both the disposition and the power to prevent and punish such unlawful invasions and depredations. It is earnestly to be hopedr that events may prove these assurances to' be well founded. The best Interests of both countries require the maintenance of peace upon the border and the development of commerce between the two Republics. It is gratifying to add that this temporary interruption of official relations has not prevented due attention by the, representatives of the United States in Mexico to the protection of American citizens as far aa practicable, nor has it interfered with the prompt payment of the amounts due from Mexico to the United States, under the treaty of July 4, 1868. and the awards of the Joint Commission. While Ido not anticipate any interruption of the friendly relations with Mexico, yet I cannot but look with some solicitude upon a continuance of the border disorders as exposing the two countries to initiations of popular feeling and mischances of action which are naturally unfavorable to complete amity. Firmly determined that nothing shall be wanting, on my port, to promote a good understanding between the two Nations, I yet must ask the attention of Congress to the actual occurrences on the border, that the lives and property of our citizens may be adequately protected and peace preserved.

THE CUBAN INSURRECTION. Another year has passed without bringing to a close the protracted contest between the Spanish Government and the insurrection in the Island of Cuba. While the United States has sedulously abstained from any intervention in this controversy, it is impossible not to feel that it is attended by incidents affecting the rights of American citizens apart from the effect of the hostilities npon trade between the United States and Cuba. Their progress is inevitably accompanied by complaints, having more or less foundation, of searches, arrests, embargoes and oppressive taxes upon the property of American residents, and of unprovoked interference with American vessels and commerce. It is due to the Government of Spain to say that during the past year it has promptly disavowed and offered reparation for any unauthorized acts of unduly zealous subordinates whenever such acts have been broughtto its attention. Nevertheless such occurrences cannot but tend to excite feelings of annoyance, suspicion and resentment, which are greatly to be deprecated between the respective subjects and citizens of two friendly Powers. SOUTH AMERICAN NATIONS. Much delay, consequent upon accusations of fraud in some of the awards, has occurred in respect to the distribution of the limited amounts received from Venezuela, under the Treaty of April 25,1866, applicable to the awards of the Joint Commission created by that treaty. So long as these matters are pending in Congress, the Executive cannot assume either to pass upon the questions presented or to distribute the fund received. It is eminently desirable that definite legislative action should be taken, either deciding the awards to be final, or providing some method for a re-examination of the claims. Our relations with the Republics of Central and South America apd with the Empire of Brazil have continued without serious change, further than the temporary interruption of diplomatic intercourse with Venezuela and with Guatemala. Amicable relations have already been fully restored with Venezuela, and it is not doubted that all grounds of misunderstanding with Guatemala will speedily be removed. From all these countries there are favorable indications of a disposition on the part of their Governments and people to reciprocate our efforts in the direction of increased commercial inter'ourse. SAMOA. The Government of the Samoan Islands has sent an envoy, in the person of its Secretary of State to invite the Government of the United States to advise and protect their independence, to establish commercial relations with their people, and to assist them in their steps toward responsible and regular government. The inhabitants of these islands, having made considerable progress in Christian civilization and the development of trade, are doubtful of their ability to maintain peace and independence without the aid of some stronger power. The subject is deemed worthy of respectful attention, and the claims upon our assistance by this distant community will be carefully considered. FOBEION TRADE. The long commercial depression in the United States has directed attention to the subject of the possible increase of our foreign trade and the method for its development, not only with Europe, but with other countries ana especially with the States and sovereignties of the Western Hemisphere. Instructions from the Department of State were issued to the various Diplomatic and Consular offieetv of the Government, asking them to devote attentien - to the questkiil <;f methods by which trade between the respective countries of their official residences and the United States could be moat judiciously forwarded. In obedience to the instructions, examinations and reports upon this subject have been made by many of these officers ana transmitted to the Department, and the same are submitted to the consideration of-Congress. M RB.V EN u kB. The annual .report of the Secretary of the Treasury on the state of the finances presents important questions for the action of Congress, upon some of which 1 have already remarked. The revenues of the Government during the fiscal year ending June 30, 1877, were $269,030,586.62. The total exnenditures for the same period were $238,660,208.93, leaving a surplus revenue of $30,340,577.69. This has substantially supplied the requirements of the sinking fund for that year. The estimated revenues of the current sis cal years are $265,500,000, and the estimated expenditures for the same period are $232,430,648.72. If these estimates prove to be correct, there will be a surplus revenue of $33,069356.28, an amount nearly sufficient for the unking fund for that year. Tbs estimated revenues for the next fiscal year are $260,260,000. It appears „ from the report that during the last fiscal year the revenues of the Government, compared with the previous year, have largely decreased. This decrease, amounting to he sum of $18,481,452,054, was mainly in customs duties, caused partly by a large falling off of the amount of importvd dutiable goods, aud partly by the general fall of prices in the markets of production of such articles as pay ad valorem taxea. While this is felt injuriously in the diminution of the revenue, it" has been accompanied with a very large increase of exportations. The total sxports during the last fiscal year, including coin, have been $658,637,457, and the imports Have been $492,097,540. leaving a balitnceoi trade in favor of the United States amounting to the sum of■ $166,539,917, the beneficial effects of which extend to all branches of business. I The estimated revenue for the next fiscal year will impose upon Congress the duty of strictly limiting appropriations, including the requisite sum for the maintenance of the Sinking Fund within the aggregate estimate of the receipts, while the aggregate of taxes - should not be increased. Amendments might be mode to the Revenue laws that would, without diminishing the revenue, relieve the people from unneces-

nary burdens A tax on tea and coffee Is shown by the experience, not only of ottr own country, but of other countries, to be easily collected without loss by undervaluation or fraud, and largely borne' in the country of production. A tax of ten cents a pound on tea and two cents per pound on stiff ee, would produce a revenue exceeding sl2,Clip,ooo, and thus enable Congress to repeal a multitude of annoying taxes, yielding a revenue not exceeding that sum. The Internal Revenue system grew out of the necessities of the War, and most of the legislation imposiijg taxes upon domestic products under this system has been repealed. By the substitution of a tax on tea and coffee, all forms of internal taxation may lie repealed except that am whisky, spirits, tobicco and licer. Attention is also called to the necessity of enacting more vigorous laws for the protection of the Revenue and for the punishment of frauds and smuggling. This can be best done ftv judicious provisions that will induce the “isclosure or attempted fraud by undervaluation and amugBling.8 ling. All Revenue laws should be simple in leir provisions and easily understood. 8o far as f racticable the rates of taxation should be in the orni of specifie duties, and not ad valorem, requiring the judgment of experienced men to ascertain values and exposing th e revenue to the temptation of fraud. CUSTOMS ABUSES. Mv attention has been called, during the recess us Congress, to the abuses existing in the collection or the customs, and strenuous efforts have been made for their correction by Executive orders. The recommendations submitted to the Secretary of the Treasury by a Commission appointed to examine into the collection of customs duties at the port of New York, contain many suggestions for the modification of the customs laws, to which the attention of Congress ia invited. PUBLIC (TTEDtr. It is a matter of congratulation that, notwithstanding the severe burdens caused by the war, the public faith with all creditors has been preserved, and as the result of this policy the public credit has continuously advanced, and public securities are regarded with the highest favor in the markets of the world. I trust that no act of the Government will cast a shadow upon its credit. The progress of refunding the public debt has been rapid and satisfactory. Under the contract existing when I entered upon the discharge of the duties of my office, bonds bearing interest at rate of 4'4 per cent were being rapidly sold, and within three months the aggregate sales of these bonds had reached $200,060,0001. With my sanction, the Secretary of the Treasury entered into a new contract for the sale of 4 per cent, bonds, and within thirty day after the popular subscription for such bonds was opened, subscriptions were had amountinfto $75,496,550, which were paid for within ninety days after the date of subscription. By this process, within but little more than one year, the annual interest on the public dent was reduced in the sum of $3,775,0001

SAVINGS FUNDS. . . ■ I recommend that suitable provision be made to enable the people to easily convert their savings into Government securities, as the beet mode in which small savings may be well secured, and yield a moderate interest. It is an object of publie policy to retain among our own people the securities of the United States. In this way our country is guarded against their sudden return from countries, caused by war or other disturbances, beyond our limits. THE SHIPPING INTEBEWT. The commerce of the United States with foreign Nations, and especially the export of domestic productions, has of late years largely increased, but the greater portion of this trade is conducted in foreign vessels. The importance of enlarging our foreign trade, and especially by direct and tepeedy interchange with countries on this continent cannot be overestimated, and it is a matter of great moment that our own shipping interest should receive, to the utmost practical extent, the benefit of our commerce with other lands. These considerations are forcibly urged by all the large commercial cities of the country, and public attention is generally and wisely attracted to the solution of the problems they present. It is not doubted that Congress will take them up, in the broadest spirit of liberality, and respond to the public demand by practicable legislation upon this subject. THE INDIAN WAR. The report of the Secretary es War show* that the Army has been actively employed during the year, and has rendered very important services in repressing hostilities in the Indian country, and preserving peace and protecting life and property in the interior, as well as along the Mexican border. A long and arduous campaign has been prosecuted, with final and complete success, against a portion of th* Nez Perces Tribe of Indians. A full account of this campaign will be found in the report of the General of the Army. It will be seen that in its course several battles were fought, in which a number of gallant officers and men lost their lives. I join with the Secretary of War and the General of the Army in awarding to the officers and men employed in the long and toilsome pursuit and in the final capture of these Indians the honor and praise which is so justly their due. THE JULY BIOTS. The very serious riots which occurred in several of the States in July last rendered necessary the employment of a considerable portion of the army, to preserve the peace and maintaian order in the States of West Virginia, Maryland, Pennsylvania and Illinois. These disturbances were so formidable as to defy the local and State authorities, and the National Executive was called upon, in the mode provided by the Constitution and laws, to furnish military aid. I am gratified to be able to state that the troops sent in response to these , calls for aid in the suppression of domestic violence were able, by the influence of their presence in the disturbed regions, to preserve the peace and restore order without the use of force. In the discharge of this delicate and important duty, both officers and men acted with great prudence and courage, and for their services deserve the thanks of the country. THE TEXAS-BOBDEB DISTURBANCE*. The border disturbances along the Rio Grande, in Texas, to which I have already referred, have rendered necessary the constant employment of a military force in that vicinity. A full report of all recent military operations in that quarter has been transmitted to the House of Representatives in answer to a resolution of that body, and it will not therefore be necessary to enter into details. I regret to say that these lawless incursions into our territory by armed bands from the Mexican side of the line, for the purposes of robbery, have been of frequent occurrence, and, in spite of the most vigorous efforts of the ct>mmsHM»r of row f tscao, ife taSXfcd&.s'' have generally succeeded in escaping into Mexico with their plunder. In May last, I gave orders for the exercise of the utmost vigilance on the part of our troops for the suppression of these raids, and the punishment of the guilty parties, as well as the recapture of the property stolen by them. Gen. Ord, commandant in Texas, was directed to invite the co-operation of the Mexican authorities in efforts to this end, and assure them that I was axious to avoid giving the least offense to Mexico. At the same timehe was directed to give notice of my determination to put an end Jo the invasion of •ur territory by lawless bands, intent upon the plunder of our peaceful citizens, even if the effectual punishment of the outlaws should make the crossing of the border by our .trass, in their pursuit, necessary. It is believed that this policy has had the effect to check, somewhat, these depredations, and that with a considerable increase of our force upon that frontier,and the establishment of several additional military poets along the Rio Grange, so as more effectually to guard that extensive Border, peace may be preserved, and the lives and property of citizens m Texas fully protected. * THE ARMY. Prior to the first day of July last, the Army was, in accordance with law, reduced to the maximum of 25,000 enlisted men, being a reduction of 2,500 below the force previously authorized. This reduction was made, as required by law, entirely from the infantry and artillery branches of the service, without any reduction of the cavUn ler the law as it now stands, it is necessary that the cavahy regiment* should be recruited to 100 men in each company for service on the Mexican and Indian frontiers. The necessary effect of this legislation is to reduce the infantry and artillery arms of the service below the number required for efficiency, and I concur with the Secretary of War in recommending that authority be given to recruit all companies of infantry to at least fifty men, and all batteries of artillery to at least seventy-five men, with power, m case of an emergency, to increase tbe former to 100 and the latter to 125 men each. • I invite your special attention to the following ecommendatiema of the Secretary of War: first, that provision be made for supplying to the Army a more abundant and better supply of reading matter. Second, that early action be taken by Conwss. looking to Uie complete revision and republication of the finny regulations. TU«d, that Sec. 1,258 of the Revised Statutes, limiting the number of officers on the