Richmond Palladium (Weekly), Volume 45, Number 39, 9 December 1875 — Page 2

THUBSDAY, DECEMBEB 9, 1875.

CLUBBISO RATES. The Pxinm will be furnished la connection with other paper at very low rates. We have arrangements for ' the following, and will add others to the list hereafter. The price are for both papers one year, postage prepaid:4 Indinpoli Weekly Journal pd a "J tkml nd U.wn.hip ip of Indian . Cincinnati Weekly Cotnmercial - 4-hicao Weekly Inter-Ocean......... CutcinnaU Weekly Oasette DAILY PALLADIUM. ' T . We have now perfected our aiTrangements for publishing a dally edition of the Pajjladicm, commencing with the new year. Having obtained exclusive control ot the day dispatches, we will be able to give the telegraphic news from every quarter greatly In advance of all competitors. We will spare no offni-t meet the exoectations of the citizens of Richmond who desire a flrstclass daily. '. Another $10,000 job has been "put up" by the Democratic officials in New York city the capture of Tweed. Mb. Kerb is the third Indlanian called to the Speakerehlp. The first was John W. Davis, of Sullivan county, and the second Schuyler Colfax. . T Thk Daily Independent appeared on Saturday morning last in a new dress, and enlarged to a six column paper. It has greatly improved its appearance and shown good taste in adopting the Palladium bead letter. ' A terrible explosion occurred on Monday last, in the Swarthe Main Colliery, Yorkshire, England,: by which 140 miners lost their lives. The explosion was caused by careless blasting operations. . ..'.'. Ex-Senator Carpenter, of Wisconsin, has given notice to the Chicago Tribune that he intends to sue that paper for libel in charging him with complicity In the whisky frauds at Milwaukee. Judge Blodgett, of the United States Circuit Court at Chicago, a few days ago fined a juror $100, and committed him to jail for sixty, days, for conversing with a witness ' about the case on trial, contrary to ' the Instructions of the court." " Avebt, who has been on trial at St. Louis as one of the principal agents of the whisky ring at that city, has been found guilty on one count of the indictment, the others having been declared bad by the court. His sentence is reserved for the present. We direct attention to the advertisement of the Cincinnati Gazette, which appears 'in this paper. The Gazette 1b too well known as a sterling family paper to need any further recommenda tion from us. The agricultural matter published regularly in the Gazette is alone worth more than the subscription price. The first move of the Democracy in Congress was an unfortunate one, and proved a failure. There are two claimants from the Fifth Louisiana District, one with a certificate from Gov. Kellogg, the other with a certificate signed by McEnery. Fernando Wood moved the reference of these certificates to the Committee on Credentials, the effect of which would have been to reopen the whole Louisiana difficulty, adjusted by the Congressional com-jHittPe-agg the Democratic members of the Louisiana Legislature, Mr. Blaine promptly ; met the question and exposed its purpose, when the motion was voted down, and the re-opening of that troublesome question prevented for the present. '"!',J"1 The President has complied with the request of Gen. Babcock and apppotnted a court of inquiry into the charges made against him,- in connection with the St. Loais whisky frauds. This court consists of Gen. P. H. Sheridan, Gen. W. S. Hancoek, and Gen. H- Terry and are to meet for the purpose of their appointment at Chicago, on the 9th Inst. Major Gardner, of the West Point Military Academy, is detailed to act as judge advocate. In the meantime the President has suspended Babeock In bis duties as Private Secretary This is purely a military , inquiry,' and affects only the standing of the accused la the army, and in no manner Inter feres with the proceedings about to be had in the civil courts, i ' English papers just received are filled with accounts of the devastations of the late floods throughout Europe, go great a rainfall has not been known for many years, in certain sections, es pecially in the south of France, where, as one paper says, "The streams swelled rapidly, and the rush of the water, overflowing the eountry in strong currents, swept away houses, agricultural produce, even the soil itself, and human beings." In England, the low, flat eountry in the south and west has been for many weeks scarcely free from a deluge; the rivers spread out for miles over their banks, invading fields, orchards, railways and villages. In some places on the continent, the loss of property has been very great. and the loss of life was counted by hundreds. ' 1 "Boss" Tweed, the ehampion Demo cratic stealer of New York, has stolen away from his keepers and is now at large. This feat is supposed to have been rXerformed on Saturday last, while the Boss was out on a visit to his home is eharge of one of the wardens of Lud-low-street jail. Tweed it seems was so great a rascal, and had stolen such large sums of money that the keepers of his prison give him unusual attention and privileges. 1 The officer charged with his custody explains that he had been dining with Tweed at the Boulevard, and afterward went with him to the house of his son-la-law, on Madison street, where Mrs. Tweed makes her home. While there Tweed asked permission to go alone up stairs to -see his wife, of course this small favor could not be denied so good a - man, and he was permitted to go. In a little while the officer sent one of Tweeds sons to look after his father, the son In time returned to say the father was gone. The faithful officer then rushed to the street, bat could find no prisoner there, nor any one resembling Tweed. This . Is the whole story as related by the official. If Tweed had been only a common thief, Instead of a great Democratic reformer, he would no doubt have been strictly guarded, and not allowed the privilege of dining at leading restaurants or -visiting among his friends.. But the man who has held the Democratic party of New York city, and very much of Its wealth, in his pocket, could not be treated as a common felon. A reward of $10,000 Is offered for his arrest, but as yyt no clue to his place of concealment has been discovered. Dark hints are rife of bribery And corruption in .connection with his escape, but of course such charges are unjust (toward the faithful officials who have had Mm! in keeping. i

Mb. BitAtMK and the other old officers of the House were complimented with the Republican vote for re-election, but of course the Confederate vote was too strong for them.

The North Indiana Conference, of the Methodist Episcopal Church, will meet In annual session, at Grace M. 'E. Church, in this city, on the 22d of March next. There will be in attend ance,- probably -three- hundred - ministers and lay delegates, besides official and other. visitors. Great interest Will be added to the meeting of the confer ence at that time, by the fact t that it will be presided over by Bishop Harris, who is well known fop his scholarly attainments, and who has but' recently returned from a missionary tour through Japan, the East Indies, Pales tine, and the continent of Europe. Is the election of Mr. . Kerr to the Speakership, the western Democratic Inflationists have received another humiliation at the hands of the Democratic party. Mr. Kerr was and is a hard money Democrat, and as such, was opposed by the inflationists of the West almost unanimously. Indeed the contest between him and Randall turned almost exclusively upon this issue, Xandall being the Inflation candidate. ' The result of this election Indicates pretty clearly the course the Democracy, as a party, Intend to pursue, and the stand they Intend to take upon this question. Western Democrats will ' therefore be compelled to take back their loud demands for more money, and submit to party discipline, or withdraw from a party in ' which they have no longer any voice or Influence. .Which will they do surrender principles or party? : '' ' GynebaIi Harrison, of Indianapolis, has published a letter In which he pos itively declines to allow his name to be used In connection with the nomina tion for Governor. Private considerations solely Induce him to take this course, but he will not withhold his aid and Influence in behalf of the Republi can cause. He says: . ,"In the very important campaign which our State Con vention will inaugurate, I hope to have some part; but you must allow me to follow, and not to lead." " To many Re publicans of Indiana this declination will be a disappointment, for In many localities Gen. Harrison was unques tionably the first choice of the party for Governor. The Journal in noticing this letter, says; "His decision is final, and It will be useless on the part of his friends to urge a reconsideration." Under ' these circumstances Republicans must look elsewhere for a candidate, and It is fortunate they have got many good men to select from. - THE ORGANIZATION OF ' THE :, HOUSE. The. organization of the House of Representatives, by the Democratic members, was readily effected, and very nearly In the manner heretofore predicted. ' f The Confederate Demo crate having a majority of the party caucus, were enabled to control the nominations, and did so to their entire satisfaction. The Speakership had, as a matter of policy, been conceded to the North, but the majority of the re malning offices were claimed and received by the South. The caucus in which the selections were made, was presided over by Mr. J. Q. C. Lamar, of Mississippi, a southern fire-eater, of the most pronounced stripe, who will be the leader of the Democracy on the floor of the House. His speech before the caucus was mainly noticeable as foreshadowing the course of the party on the finance question, and this brings small comfort to the inflation branch of the Democracy. Mr. Lamar, speaking for the party, says, "our people are suffering from the evils of an irredeem able currency." and admonishes the Democracy that It is their duty to so act, "that nothing js done which would impair the good faith of the pountry or tarnish the public honor, or lower or disturb the credit of our government,' and; he continues, "to see that the national credit and currency of this Dem ocratic Republic are made equal with that of any nation on the earth." These declarations followed by the nomination and election pf Mr. Kerr, a hard money man, as Speaker, fixes the position of the Democratic party, on the currency question. .; , . . .The newly elected Speaker Is a representative from Indiana, a strict partisan, and though possessing but few of the peculiar qualifi cations required In a presiding officer, is a man of very considerable ability and thorough personal integrity, Be will neither steal nor permit stealing If he pan prevent it, and if the House were freed from the controllng influence of the Confed erate Democracy, we might have much to hope for from the management of Mr. Speaker Kerr. But as it Is, while Mr. Kerr fills the chair, Mr. Lamar will be the guiding spirit of the House, and southern supremacy its leading object and aim. With the exception of Mr. Thompson, of Ohio, as Sergeant-at-Arms, the rest of the important offices are filled from the South, Mr. Adams, of Kentucky, Is made Clerk, Mr. Stu art, of Virginia, is Postmaster, and Mr. Fitzbugh, of Texas, Doorkeeper. The latter was Sergeant-at-Arms of the late Confederate Congress. Thus or ganized the Democratic House Is pre pared for work, but what it may ac complish remains to be seen. The small number of offices In the gift of the House compared with the multitude of applicants was a great source of regret to the Democratic members, it was referred to in feeling terms by Mr. Lamar Jn his opening speech In the caucus, and was the sub ject of earnest conversation among the members. Each of the 178 Demo crats who have seats in the House, had a little army of followers from his dis trict, begging and importuning for position of some kind. But If half the members could provide for one friend each, the other half could get nothing whatever, and the pressure was terri ble. A hungrier set of office hunters had never beselged the doors of the Capitol, than those who laid In wait for Democratic members as they ventured out from time to time. Their long fast had made them actually voracious, and they could only be compared to a pack or half-starved wolves In pursuit of prey. But If this pressure upon the Democrats members rendered their congressional life a burden to them, almost before they had entered upon it, they found consolation in another quarter. The smiling, smirking lobbyist, who has some job to get through during the coming session, was ever ready to soothe their sorrows with the kindest attentions, and bid them drown their grief in choicest wines and most sumptuous dinners. Indeed, so faxwere these blandishments captivating the new and unsophisticated members that the old and shrewder ones become alarmed, and gravely counseled moderation, or the "outer house" wouid soon have had the new Congress completely In its power, and the promises so profusely made to the people would have been forgotten beneath the Influence of these sirens of the lobby. ut we win await results and judge the present Congress by its fruits.

THE PRESIDENTS MESSAGE. The considerable length of the President's message, and the. late hour at, which we received it, prevents any

lengthened i review this . week. We place it n full before our readern,- and each can form hlH own conclusions npori It. It is a thoroughly businesslike document, and discusses at length the leading questions of the day, adding such Lsugggstiona aslpthe ,PxesU dent seems right and proper. Upon the finance question he takes strong grounds In favor of .au early return . to specie payments, and, while he will approve every measure calculated, to bring this about at the earliest day possible, clearly intimates in advance his disapproval of all legislation Intended to retard it. Strong ground is taken in favor of unsectarian schools, and a recommendation, pressed with much earnestness, In favor of a constitutional amendment, making it the duty of each State "to establish and forever main tain free public schools, adequate to the education of all the children in the rudimentary branches within their re spective limits. Irrespective of t sex. color, birthplace or religion." Foreign affairs are generally in a satisfactory condition, peace and good feeling existing on the part of other nations toward our own. The Cuban insurrection re mains as heretofore, and the President does not yet see that it has risen to the dignity of warfare, and therefore no interference is reccommended, either in according belligerent rights or in any other way. The centennial is referred to and the statement made that most of the nations will join with us in its celebration. The President himself sums up the main points of the message as follows: That the States shall be required to maintain good public schools, in which no sectional tenets shall ever be taught; that Church and State shall remain forever separate and distinct; that polygamy and other licensed immorality shall be driven out of the country; and that laws be enacted to secure a speedy return to a sound currency, such as will command the respect of the world. THE DEMOCRA TTO NOMINATION. The future of the Democracy is some, what foreshadowed by the action of the party in the late organization of the House. The Southern and Western Democrats will undoubtedly unite to shape the policy and dictate the nominations of the party. The two principal planks of their platform will be hard money and State rights. Upon this platform they will place neither Tilden, Hendricks, nor Allen. Tilden has never had much strength either in the South or West, and cannot hope for a nomination from these now controlling sections of the country. The election of Kerr to the Speakership will be considered enough for the State of Indiana, and was evidently arranged to get rid of Hendricks, whose uncertain utterances upon the leading questions have satisfied no portion of the party. Allen of course is out of the question, now that his Inflation views are discarded by his party. A new man, satisfactory to the South, may be se lected, but of all those heretofore spoken of in connection with the Democratic nomination for the Presidency, Bayard, of Delaware, has, perhaps, now the best showing, and Is rapidly growing In strength. His known sympathy with the South makes him popular In the late confederate States, and may secure him the united vote of that section.: In that event his nomination will be assured. The Southern Democracy will not care so much, for the man as for his principles. ; What they term State Rights is everything to ' them. No man who Is not opposed to National unity, and the. supremacy of the Gen. eral Government, need hope for their support. And as their power is now acknowledged In the Democraticparty, they will assuredly make it bo felt in the ; National convention. - What ' was lost to them' by the late war must be regained, and thi will li the objective point with them in all their future action. ' To gain these ends, the Democracy of the South will, If necessary, yield all the candidates to their Northern allies, but both candidates and party must fully pledge themselves to sustain Southern interests, as thp South understands them. No faint hearted feujjr port will be acceptable no uncertain candidates will Be received. Therefore, the next Democratic ticket will undoubtedly present to the country a Northern man with Southern principles. Poor Mr. Harris, of Maryland, he who prayed so devoutly for the success of the rebellion, and mourned that his prayer was not answered, and who, in his disappointment, appealed to the members of Congress to reward his fidelity to the Host eause," by electing him Sergeant-at-arms of the House, has again met with disappointment. He was not elected. Other Confederates were given office, but he was passed by as unworthy. , There were not offices enough to go round, and poor Harris gained no prize. It is sad, very sad, but Harris was not alone in his grief. Others, who boasted almost as loudly as he did of their treason, were left out In the cold, even by a Congress controlled by Confederates. One of these was a son-in-law of Toombs, and another a Commissary of Subsistence under Gen. Joe Johnston. So with Major Banks and othsr rebel officers. It was not because they were rebels that they were defeated; this was their leading merit. But the offices were so few, and the claimants were so many. Stuart, who is now'the Postmaster of the House, was a rebel cavalry officer, and Fitzhugh, the Doorkeeper, was Sergeant-at-arms of the rebel Congress; so it was not because Harris and the others had been rebels thftf. they were refused a share of the spoils distributed by the Democratic House. But then there may be comfort for some of them yet. The Texas rebel Doorkeeper has the appointment pf a long list of assistants, and these he can select from his comrades In arms, and no doubt will do so. Then it will be so nice to find the capitol of the nation guarded by these rebel Democratic officials, who can refuse loyal men ad mission, while they make way for their rebel friends to pass in, to confer with, their representatives,. The Republic may sometimes be ungrateful, but surely the Democratic party cannot be charged with' being unfaithful to its friends, even if it did not elect Mr. Harris Sergeant-at-arms. ; It gave all It could, and would have given more if there had been more to give. ' A leading English paper says in its review of the grain market, that in coiir sequence of the unusually severe winter the price of wheat remains firm, but that the large qantities In store will prevent any material rise in price before spring. How. Geobob H. Wiujams, of Louis iana, Is an applicant for the United States Judgeship, recently vacated by Durell. He is endorsed by the entire bar of New Orleans, irrespective of party! and is highly qualified for the place.

PRESIDENT'S MESSAGE.

To t he Sctw U and Home of Bepnaentativet: la, submitting: my seventh annual message to Congress In this centennial year of our national existence as a free and independent people, it affords me great pleasure to recur to the advancement that has been made from the time of the Colonies; one huudred years ago. growth of the countrt. W were then - a- people- numbering only three millions; now we number more thai. forty millions.' i Then our industries were confined almost exclusively to the tillage - of the soli; now manufactories absorb much of. the labor of the country. Our liberties remain ; unimpaired. ' The bondsmen have been freed from slavery. We have become possessed of the respect if not the friendship of all civilized nations. Our progress has been great in all the arts, in science, commerce, navigation, mining, mechanics, law, medicine, etc., and in general education the progress Is likewise encouraging. Our thirteen States have become" thirtyeight, including Colorado, which has taken the steps to become a State, and eight Territories, including the Indian Territory and Alaska, and excluding Colorado, making a territory extending from the Atlantic to the Pacific. On the south we have extended to the Gulf of Mexico, and in the west from the Mississippi to the Pacific. One hundred years ago, the cotton-gin, the steamship, the railroad, the telegraph, the reaping, sewing and modern printing machines, and numerous other inventions of scarcely less value to our business and happiness were entirely unknown. In 1776 manufactures scarcely existed, even In name, in all this vast territory. In 1870 more than two millions of persons were employed in manufactures, producing more than $2,100,000,000 of produce an, amount annually nearly equal to our national debt. From nearly the whole of the population of 1776 being engaged In the one occupation of agriculture, in 1870 so numerous and deversifled had become the occupations of our people, that less than six millions of more than forty millions were so engaged. The extraordinary effect produced in our country by a resort to such occupations has built a market for the products of fertile lands distant from the seaboard and the markets of the world. The American system of working various and extensive manufactories, next to tee plow and the pasture, and adding connecting railroads and steamboats, has produced in our distant country results not equaled by the intelligent parts of other nations. The ingenuity and skill of American mechanics have been demonstrated at home and abroad in a manner most flattering to their pride; but for the extraordinary genius and ability of our mechanics the achievements of our agriculturists, manufacturers and transporters throughout the country would have been impossible of attainment. The progress of the miner has also been great. Of coal our production was small; now many millions of tons are mined annually. So with iron, which formed scarcely an appreciable part of our products half a century ago. We now produce more than the world con sumed at the beginning of our National existence. Lead, zinc and copper, from being articles of imports, we may expect to be large exporters of in the near future. The'development of gold and silver mines throughout the States and Territories has not. only been re markable but has had a large Influence upon the business of all commercial nations. Our merchants In the last hundred years have had a success and have established a reputation for en terprise. sagacity, progress and integ rity unsurpassed by the people of older nationalities. .This good name Is not confined to their homes, but goes out on every sea and Into every port where commerce enters. With equal pride we can point to our progress in all of the learned professions. ' THE EDUCATIONAL QUESTION. As we are now about to enter upon the second Centennial, commencing our manhood as a nation, It is well to look back upon the past and study what will be best to preserve and advance our future greatness. From the fall of Ad am, for his transgression, to the pres ent day, no nation has ever been free from threatened dangers to its pros perity and happiness. We should look to the dangers which threaten us and remedy them so far as It Is In our power. , We are a republic, whereof one man is as good as another before, the law.: : Under such a form it is of the greatest importance that all should be .possessed of education and intelligence. They ought to cast a vote with a right understanding of Its meaning. A large association of ignorant men cannot for any considerable period oppose a suc cessful resistance to tyranny or op pression from the educated few, and must inevitably sink in acquiescence to the will of intelligence, whether direc ted by the demagogue or by priestcraft Hence the education of the mass be comes of the first necessity for the preservation of our institution, They are worth possessing, because they have secured the greatest good to the greatest proportion of population of any form of government yet devised. . All other forms of government approach it just in proportion to the general diffusion of education and independence of thought and action. As the primary stepi therefore, to. our advancement In all that has made our progress in the past century, I suggest for your earn est consideration, and most earn estjy recommend that a constitutional amendment be submitted to the Legls latures of the several States for ratlfi cation, making It the duty of each of the States to establish and forever maintain free public schools, adequate to the education of ail the children in the rudimentary branches within their respective limits, irrespective of sex, color, birthplace or religion, forbidding the teaching in said schools of religious, atheistic or pagan text books, and prohibiting the granting of any school funds or school taxes, or any part there of, either by legislative, municipal or other authority, for the benefit of any other object of any nature or kind, TAXATION Oy CHURCH PROPERTY, In connection with this important question I would also call your atten tion to the importance of correcting an evil that, if permitted to continue, will lead to great trouble In our land before the close of the nineteenth century. It is the accumulation of vast amounts of untaxed church property, Jo 1$4Q I believe the church property of the United States, which paid no tax, mu nicipal or State, amounted to about $83,000,000. In 1860 the amount had doubled; In 1875 It Is about $1,000,000, 000. By 1900, without check, it is safe to say this property will reach a sum ex eeedlng $3,000,0(10,000,. So vast a 6um, receiving all the protection and benefits of government, without bearing its pro portion of the burdens and expenses of the same, will not be looked on acquiescently by those who have paid taxes. In a growing country where real estate enhances so rapidly, with time, as in the United States, there is scarcely a limit to the weajth that may be acquired by corporations, religious or otherwise, if allowed to retain real estate without taxation. The con tern plation of so vast a property as here al luded to, without taxation, may lead to sequestration, with constitutional authority, and through blood. I would suggest the taxation of all property equally, whether church or corporation. exempting only the last resting place of the dead, and, possibly, with proper restrictions, church edifices. FOREIGN RELATIONS. Our relations with most of the for eign powers continue on a satisfactory and friendly footing. Increased Intercourse, extension of commerce, and cultivation of mutual interests hare improved our relations with a large majority of the powers of the world, rendering practicable the peaceful solution of tiuestions which from time to time arise, leaving few which demand extended or particular notice. The correspondence of the Department of State with our diplomatic resresentatives abroad is transmitted herewith. I am happy to announce the passage of an act by the General Cortes of Portugal, proclaimed sinoe the adjourn ment of Congress, for th abolition of servitude in the Portugese colonies. It is to tie hoped that such legislation may be another step toward the great consummation to be reached, when no man shall be permitted directly or In directly, under any guise, excuse or form of a law, to' hold his .fellow-man in bondage. I am of the opinion, also, that It Is the duty of the United States, as contributing toward that end, and required by the spirit of the age In which we live, to provide, by suitable legislation, that no -citizen of the United States shall hold slaves as prop erty In any other country, or be inter ested therein.

CHILI. Chill has made reparation in the case of the whale-ship. Good Return, seized without sufficient cause, upward ;of forty years ago. Though she had hitherto denied her accountability the denial was never acquiesced in by this government, and the justice of the claim has been so earnestly contended for that It has been gratifying that she should have at last acknowledged it. COLOMBIA. ,The arbitration in the case of theUni-,. ted States steamer, Manitij". fr the seizure and detention of which the Government of the Unite.! States of Colombia was held accountable, has decided In favor of the claim. This decision has settled a question which has been pending for years, and which, while it continued open, might more or less disturb the good understanding which it is desirable should be maintained between tha republics. HAWAII. A reciprocity treaty with the King of the Hawaiian Islands was concluded the same month. As it contains a stipulation that it shall not go into ef

fect until Congress shall enact the proper legislation for the purpose, copies of the instrument are herewith submitted in order that, if it should le the pleasure of Congress, the necessary legislation upon the subject may be adopted. x THE VIRGINIUS CASE. In March last an agreement was made through Mr. Cushing, our Minister in Madrid, with the Spanish government, for the payment by the latter to the United States of the sum of $80,000 in coin, for the purpose of the relief of the families or persons of the ship's company, and certain passengers of the Virginius. This sum was to have been paid in three installments of two months each. It is due to the Spanish Government that I should state the payments were fully and speedily anticipated-by that government, and that the whole amount was paid within but a few days more than two months from the date of the agreement, a copy of which is herewith transmitted. In pursuance of the terms of the adjustment' I have directed the distribution of the amount among the parties entitled thereto, including the ship's company and such of the passengers as were Americans. Payments are made accordingly on application of the parties entitled thereto. THE CUBAN QUESTION. The year has furnished no evidence of an approaching endof the ruinous conflict which has been raging for seven years in the neighboring island of Cuba. The same disregard of the laws of civilized warfare and of the just demands of humanity, which have heretofore called forth expressions of condemnation from the nations of Christendom, have continued to blacken the sad scene. Desolation, ruin and pillage are pervading the rich fields of one of the most fertile and productive regions of the earth, and the incendiary's torch, firing plantations and valuable factories and buildings, is the agent marking the alternate advance or retreat of the contending parties. The protracted continuance of the strife seriously affects the interests of all commercial nations, but those of the United States more than others, by reason of closer proximity, its larger trade and Intercourse with Cuba, and the frequent and Intimate personal and social relations which have grown up between its citizens and those of the island. Moreover, the property of our citizens in Cuba is large, and is rendered insecure and depreciated in value and in capacity of production by the continuation of the strife, and the unnatural mode of its conduct. The same is true, differing only In degree, with respect to the interest and people of other nations; and the absence of any reasonable assurance of a near termination of the conflict must of necessity soon compel the States thus suffering to consider what the interests of this people and their duty toward themselves may demand. . I have hoped that Spain would be enabled to establish peace in her colony, to afford security to the property and the Interests of our citizens, and allow legitimate scope to trade and commerce and the natural productions of the island, Because of this hope, and from an extreme reluctance to Interfere, In the most remote manner, In the affairs of another a4jj friendly nation, especially of one whose sympathy and friendship the struggling infancy of our own existence must ever remember with gratitude, I have patiently and anxiously waited the progress of events. Our own civil conflict is too recent for us not to consider the difficulties which surround a government djt,racte by a dynastje rebellion at home at the uine time that it has to cope with a separate insurrection in a distant colony. But whatever causes may have produced the situation which so grievously affects our interest, it exists with all its evils, operating directly upon this country and its people. Thus far all the resorts of Spain have prqved abortive, and time hs not marked an improvement in the situation. The armed bands of either side now occupy nearly the same ground as in the past, with the difference, from time to time, of more lives sacrificed, property destroyed, anc wider extents of fertile and productive fiftds and more valuable property constantly and wantonly sacrificed tq the Incendiaries ofeachJ' In contests of this nature, where a considerable body of people who have attempted to free themselves of the control of the superior government have reached such a point in the occupation of territory, in power, and in general organization as to constitute, in fact a body politic, having a government in substance tfs well as In name, possessed of the elements of stability, and equipped with machinery for the administration of an internal policy and the execution of its laws, and prepared and able to administer justice, at home, as e)l as (n its dealings, with other powers, it is within the province of those other powers to recognize its existence as a new and independent nation, In suoh pastes other nations simply deal with an actually existing condition of things and recognize as one of the powers of the earth that body polities which, possessing the necessary elements, has in fact become a new power, in a word, the creation of a new State is, a fact to establish the condition of things essential. To a recognition of this fact, there must be a people occupying a known territory, united uidei tome known and defined form of government, acknowledged by those subject thereto, by which the functions of government are administered by the usual methods, competent to mete out justice to citizens and strangers, to afford remedies for public and for private wrongs, and able to assume the relative Interna, tional obligations, and capable o per. forming the corresponding international duties resulting from its acquisition of the rights of sovereignty; and power should exist, complete In Its organization, ready to take and able to maintain its place among the nations of the earth, While conscious that the insurrection in, Cuba has. shown a strength anq endurance whieh make it at least doubtful whether It be in the power of Spain to subdue it, it seems Unquestionable that no such civil organization exists which may be recognized as an independent government, capable of performing Its obligations and entitled to be treated as one of the powers of the earth. A recognition under such circumstances would be Inconsistent with the facts, and would compel the power soon to support by force the government to which it had really given its only real claim of existence. In my judgment the United States should adhere to the policy and the principles which have heretofore been its sure and safe guides in like com eats between revolted polonies and their mother country, and acting only upon clearest evidence, should avoid any suspicion, of imputation. A recognition of the independence of Cuba being, in myopinion, impracticable and Indefensible, the question which next presents itself is that of a recognition of belligerent rights in tho parties of the contest. In a former message to Congress, I had occasion to consider this question and reaohed the conclusion that the conflict in Cuba, dreadful and devastating as were its incidents, did not rise to the fearful dignity of war. Regarding it now, after this lapse of time, I am unable to see anv notable success, or any marked or real advanoe on the part of the Insurgents that has essentially changed the character of the con test. It has acquired greater age, but not greater or more formidable proportions. It is possible that the acts Of foreign powers, and even the acts of Spain herself, or tnU veey nature, i might be pointed to in defense of such recognition ; but, as in its past history, j the United States should careiuuy

avoid the false lights which might lead it into the mazes of doubtful law or questionable propriety, and adhere rigidly and sternly to the rule Which lias been its guide, and doing -"only that

which is right and honest andf good. report.. The question of according or

of withdrawing the rights of lellier-ljjun,au

eney must be judged in evwry ease" in view of the particular attending facts. Unless justified by necessity it is always and justly regarded as an un friendly ac t, and a gratuitous demon

etration ot' moral OTpportrto the TetetreiK.oura,,Mllnt t(f the government.

lion. It is necessary, and it is required, when the interests aad rights i An

other government, and of its people jipuxX-of Uml &Mtu-etn areso far affected by a pending "civil Tshows a gratifying pri

conmct as to require a aennition 01 its relation to the parties thereto. But this conflict must be one which will be recognized In the sense of international law as belligerence. The mere existence of contending armed bodies, and their occasional conflicts, ,; - do not constitute war in the . sense referred to. Applying to the existing , condition of affairs in Cuba the tests recognized by publicists and writers on international law, and which have been observed by nations of dignity, honesty and power,. when free from sensitive, selfish, or unworthy motives, I fail to find in the insurrection the existence of such a substantial political organization, real, palpable and manifest to the world, having the forms and capable of the ordinary functions of government toward Its own people and to other States, with the courts for the administration of justice, with a local habitation, possessing such organization of force, such material, such occupation of territory as to take the contest out of the category of a mere rebellious insurrection, or occasional skirmishes, and place it on the tolerable footing of war, to which a recognition of bellig-: erency would aim to elevate It. The contest, moreover, Is solely on land. The Insurrection has not possessed itself of a single seaport whence it may send forth its flag, nor has it any means of communication with foreign powers, except through the military lines of its adversaries. No apprehension of any of those sudden and difficult complications which a war upon the ocean is apt to precipitate upon the vessels, both commercial and national, and upon the consular officers of other powers, calls for the definition of their relations to the parties to the contest. Considered as a question of expediency, I regard the accordance of belligerent rights still to be as unwise and premature as I regard it to be at present indefensible as a measure of right. Such recognition entails upon the country according to the rights which flow from it, difficult and complicated duties, and requires the action from the- contending parties of the strict observance of their rights and obligations. It confers the right of search upon the high seas by vessels of both parties. It would subject the carrying of arms and ammunition of war, which now may be transported freely and without interruption in the vessels of the United States, to detention and possible seizure. It would give rise to countless vexatious questions; would release the parent government from responsibility for acts done by the insurgents, and would Invest Spain with the right to exercise the supervision recognized by our treaty of 1795, over our commerce on the high seas, a very large part of which, in its traffic between the Atlantic and Gulf States, and between all of them and the States upon the Pacific, passes through the waters which wash the shores of Cuba.- The exercise of this supervision could scarce fail to lead, if not to abuses, certainly to collisions, perilous , to the peaceful relations of the two States. - There can be little doubt to what result such supervision would, before long, draw -this nation. It would be unworthy of the United States to inaugurate ttie possibility of suoh result , by measures of questionable right or expediency, or by any indirection. , Apart from any question of theoretical right, I am satisfied that while the accordance of belligerent rights to the Insurgents In Cuba might give them a hope and inducement, to protract the struggle, it would be but a delusive hope, and would not remove the evils which this government and its people are experiencing, but would draw the United States Into complications, which it has waited long and already suffered much to avoid. The recognition of independence or belligerency being thus. In my judgment, equally Inadmissable, it remains to consider what course shall be adopted, should the conflict not soon be brought to an end. by the acts of the parties themselves, and should the evils which result therefrom, afflicting all nations, and particularly , the . United States, continue. . In such event, I am of the opinion that other nations will be compelled to assume the responsibility which devolves upon them, and to seriously consider the only remaining measures possible mediation and intervention. ,. . -. Owing, perhaps, to the large expanse of water separating the island from the peninsula, the want of harmony, and of personal sympathy between the inhabitants of the : colony and those sent thither to rule thPlU. anl want of adaptation of the ancient colonial system of Europe id the present times, and to the ideas which the events of the past century have developed, the contending parties appear to have within, themselves no depository of common confidence, to suggest wisdom when passion and excitement have their Sway, and to assume the. part of peacemaker.'. In this view, in the early days of the contest, the good offices of the United States as mediator wew tendered, In good faith, without any selfish purpose, in the interest of humanity, and in sincere friendship - for both parties, but were at the time declined by Spain, with the declaration, nevertheless, that at a future time they would be Indispensable. No Intimation has been received that in the opinion of Spain that time has been, reached; and yet -the strife continues, with its dread horrors and all Its Injuries to the interests of the United States and of o(h.ep nations. Each party seeius quite capable of working great injury and damage to the other, as well as to all the relations and interests dependent upon the existence: of peace In the Island; -but they seem Incapable of reaching any adjustment, and both have, thus far, failed of achieving a success whereby one party shall possess and control the Island to the exclusion of the other. Under these circumstances, the agency . of others, either by mediation or intervention, seems to be the only alternative which must, sooneror later, be invoked for the termination of the strife. . At the same time, while thus (repressed, I do not recommend the adoption of any measure of Intervention. I shall be ready at all times, and as an equal friend of both parties, to respond to a suggestion that the good offices of the United States will be acceptable to aid in bringing about a peace honorable to both. It is due to Spain, no far as this government is concerned, that the agency of the third power to which I have adverted shall be adopted only' as a last expedient. Had it been the desire of the United States to interfere in the affairs of Cuba, repeated opportunities for so doing have been presented within the last few years; but we have remained passive and performed our w hole duty, and all International obligations to Spain, with friendship, fairness, and fidelity, and with a spirit of patience and forbearance which negatives every possible suggestion of a desire to interfere, or to add to the difficulties with which she has been surrounded. The Government , of Spain has recently submitted to our Minister . at Madrid certain proposals which, it is thought, may be found to beAhe basis, if not the actual submission, of terms, to meet the requirements of the particular griefs of which the Government has felt iteelf entitled ; to complain: These proposals have not yet reached me in their full-text. On their arrival they will 1 taken in' careful examination, and may, I hope, -lead to a satisfactory adjustment of the question to which they refer, and remove the possibility of future occurrences, suoh as have given rise to our just complaints. It Is understood, also, that renewed efforts are being made to introduce reforms in the internal administration of the island. Persuaded that a proper regard for the interests of the United States and of its eitizens entitled to relief from the strain to which it has been subjected by the difficulties f the question, and the wrongs and losses which arise from the contest in Cuba, and that the interests of humanity demand the cessation of the strife before the whole island shall be laid waste and larger sacrifices of life be made, I shall feei it ray duty, should my hfltpes of a satisfactory adjustment and , of the early restoration of peace and the removal at future causes of complaint be unhappily dissapointed, to make a further communication to Congress at some period not far distant aud during the .present session,, recommending what may then seem to me to be necessary.

THE AGRICULTURAL DEPARTMENT. I transmit herewith the report of the Commissioner of Agriculture together with the reMrts of the commissioners, the board of audit, and board of health of tb District of Columbia; to alt of

whieh I invite your attention. The ,r Agriculture has act oiuphh tnl much :lii disseminating useful knowledge to the agriculturist, and also introducing new ami useful productions adapted to our soil and cli-iJUiJ.lCjtLudia-toa'UiijLtlitiA;ouUiiU4d. ! Tlie reprt jof the Commissioners of f Education,1 which aceompauies the rey f -the- Interior gratifying progress in educa tional matters. - 'MEXICAN DEPREDATIONS. . . j In nearly every annual message that I have had the honor of transmitting to Congress I have eaUVd attention .to the Free Zone, so called, several years since established by the Mexican Government in certain of the States of that republic adjacent to our frontier, which remains in full operation. It has always proved materially . injurious to honest traffic, for it operates as an incentive to traders in Mexico to supply. without customs charges, the .wants of the inhabitants on. this side of the linev and prevents the same wants from being supplied by merchants of the United States, thereby, to a considerable extent, defrauding our revenue and checking honest commercial enterprise. Depredations by armed bands from Mexico on the people of Texas, near the frontier, continue; though the main object of the incursions is robbery, they frequently result in the murder o( unarmed and peaceably disposed persons, and in some instances even the United States post-offices and mail communications have been attacked. Renewed remonstrances upon this sub ject have been addressed to the Mexi can Government, but without much apparent effect. The military force of this government at its disposal for service In that quarter is quite inadequate to effectually guard the line, even at those points where the incursions are usually made. An experiment of an armed vessel on the Rio Grande for that purpose is on trial, and it is hoped that if not thwarted by the shallowness of the river and other natural obstacles, It may materially contribute to the protection of the herdsmen of Texas. : THU.MKXICAN' CLAIMS, The proceedings of the joint commission, un'ler the convention between the United States and Mexico, of the 4th of July, 18t8, on the subject of claims, will noon be brought to a close. Tlie result of tUenw proceedings will then be communicated to C'ougress. ' VEXEZUKLAN CLAIMS, t I am happy to announce that the Veneiuelan (icivcrnmeiit has, upon further consideration, practically abandoned its objec tion to pay tlie L'liited States that share of the revenue which some years since it allotted toward the extinguishment of claims of foreigners generally, lu thus considering its determination that government has hliuwn a just sen s.i of self-respect, which cannot fail to reflect credit .upon it in the eyesof nil disinterested persons elsewhere, it is to be regret ted that Its payments on account of claims of citizens of the United States are still so meaner in amount, and that the wtlpulations of the treaty in regard to the sums to be paid and the places where the payments were to take place should have Ih'oii signally disregarded. TKKATIES. Hinee my last message, the exchange has beeu effected of the ratification of a treaty ol corainerueaud navigation with Belgium, and of a convention wilh the Mexican Hepublic for the further extension of the joint commission respecting claims; with the Hawaiian Islands for commercial reciprocity, and wil h the Ol toman Empire for extradition, all of which have been duly proclaimed. THE ALABAMA CLAIMS. , . The Court of Commissioner of the Alabama claims has prosecuted its important duties very assiduously aud very satisfactorily. It convened and was organized on the 22d day of July, 174, aud by the terms of th ael tinder which it was created was to expir- one year from thai day. The act provided, however, that should it le found impracticable to complete the work of the court before the expiration of the year, the President might, by proclamation, extent the time of its duration to a eriod not moil- than six months beyond the expiration of one year. Having received satisfactory evidence that it would lie impracticable to complete I he work within the time originally tixed, I issued my proclamation, a copy of which is presented herewith, continuing the duration 01 the time of the court for a eriod of six months front and' after the 2M of July last. The report made through the clerk of t,hp court, communi cated herewith, snows the condition of the calendar on the 1st of November last,' and the large aiuouut. of work which has been accomplished. Thirteen hundred and eighty-two claims have leeii presented, of which six-hundred- and eighty-two had been disposed of at the date of report. I am informed that one hundred and seventy cases were decided timing the month of November. Arguments arc lieing made and decisions given in tlie remaining enses with all the despatch consistent with proper settlement of the uestions, subiuitt d. Many of these claims are in behalf o' mariners, and depend on the evidence of murine, whose alienee has delayed -the taking and return of necessary evidence It is represented by some that it wilj le impracticable for the court to finally dispose of all the cases liefore It within the present limit l Its duration. Justice to all parties claimant, who have leen at large expense in preparing their claims, and obtaining the evidence In their support, suggests ft short extension, lo enable tlie court to dispose of all the claims which have been presented. I recommend the legislation which may be deemed proper to enable the Ooirt to complete the work Ief0e Jt, I recommend that Miine suitable provision he made, by the creation of a sjiecial court, or Uy conferring t c necessary jurisdiction upon some appropriate tribunal, for the consideration and determination of the claims of alie a against the tiovernmeut of the United states, which have arisen within some reason a hie time, or which may hereafter arise, excluding nil claims barred by treaty provisions or other wise. It lias leen found impossible to give proper consideration to thoso claims by the Kxecutive department of th government. Such a tribunal would afforti au opportunity to aliens, ottipr than British - sub jects, to preneiu claims on account of nets commute'! against their persons or property durinir the tebellion, as also to those subjects of (jreat Britain who- claims have arisen suosenent to the Hth of April, 18(15, and could not be presented to the late commission, organized pursuant to tlie provisions of the Treaty of Washington.' OCF.A3 TKLKOKAl'II. , . The electric telegraph has become an essential and indispensable aent in the transmission of business and social messages. Its operation on laud and within particular States is nec.-ssaril v under cont rol of the jurisdiction within which it operate. , Tlie noes on iie timi seas, uowever, are not subject to the imnicnlar control of any one government, In USifl) a succession was granted by the French government to a company which proposed to lay a cable from the shores of France to the United Lukes. At tiiat time there vras a telegraphic connection between the United Status and the continent of tmbie, through the po sessions of t;reat Britain at either end of the line, and under the control of an association which, at a large outlay of capital, and at great risk, demonstrated tiie practicability of maintaing such means of communication, i he cost of corresondcuce by this agency was ereat, po sibly not too large, at the time, lor a proper remuneration for the costly enterprise. It was, however, a heavy charge upon the means of communication which progress in the social and commercial intercourse of toe woild found to be a necessity, and the obtaining of this French concession showed that other capital than that already invested was readv to enter into competition with an assurance of adequate returns for the outlay. Impressed with the conviction thai, the interests, not only of the United States, but of the world at large, demauded or would demand, the multiplication of such means of communication between separated continents, 1 was desirous that the propose,! connection should be made, but certain provisions of this con cession were deemed by me to lo olyectioiiable, particularly cuie which gave tor a long t nu of years the exclusive right of telegraphic communication bv submarine cable belweeu the shores of "France and the United suites. 1 could not- concede that any power should claim the right to land a cable ou the shore of the United States, and at the same time deuy to the United States or to its citizens, an eqnal right to land a cable -on its shores. The riaht to control connections for the laying of a c ible within the jurisdictional waters of the United States, to connect our shores with those of any foreign state, pertains exclusively to the I nited States, under such limitations aud conditions as i 'ongress may impose In the absence of legislation bv Congress I was unwilling, on tiiMoue haiid,to vield to a foreign State the right to s ty its grant -es might land on our shore, while it denied a similar right in our p ople to land on their shore, and on the otlu r, 1 wjis reluctant to ueny ionic interests ,.f world ami of civiiixaiioii me laciiiucs ol such communion iou as were proposed. 1 therefore withheld any resistance to the landing of any cable, on the condition that the offensive monopoly feature of the concession be abandoned, :md that the rtuht of an v cable wit ten may i,e established by authority of mis Koeriinieii m tanti on freneh territory, and io connect with French lau I lines, and enjoy the necessary facilities or privilges incident to the use thereof, upon as fa-' vol able terms as any oilier company, be conceded. An a, result thereof, the company in question renounced their exclusive privileges as the representative of France, and were Informed t h it, understanding ttiis-re-UiKiuishmeitt to be construed as granting them enure reciprocity, and the several fvcilities which had been demanded, the ops tuition to the landing of the cable was withdrawn. The cable un.ler this French t-oiic -asion, was luimeu In the mouth of juif, tr., ami nas utt-n au emcient and valuable agent of cq nmunicatio i between tills country ,tud oilier continents. It noon passed under the control of those who had the management of the cable connecting ireat Britain w ith this coi.tinen , ami thus whatever benefit to the public might have iunred from the cotuM-titioii between the two linea was lost. Having greater facil ities, an a iditiona line, ami n l.lltiniiul u. flinty against iutl lent to them, bv fiese liicrenseu lacmues ami this additional security, together with the combined mntntl of capital, gave the two companies greater power to prevent future combinations of oilier lines and limit the control of telegraphic communication h"tween the two continents to those poNscssiug . luesulready laid. Within a few months the 'Pulled Htate Illrect Cable Company has laid a cable con necting the United States directly with J real Britain. So soon as the cable win re ported to be in working order the rates of the existing consoiitiaieti companies weie greatly reduced. Soon, however, a break

was annoumed In this new cable, and Immediately Mnt ttof the other line, which had haaa twdua wwere again raised. This

ca'ilo, Veing no repair. si, tlie ratm npix-ar not IO be rediWWi by either line from tlioao f ormAtiy cltnraY by the other company. Th e re to rcMOli to believe lh.il large ni(iiitt of -ewltal, both at bom and bro4-,ra rn-Jy to mwk profitable Investment t he advancement of this i -ful and uumt Olf Ub0T-Wnn ' interMnime and correspondence. They await, however, I lie assurance of the mean and conditions on which they may is safely made tributary lo the public good. As these cable teleirriinli connect separate States, there ar i nufkiwunicMiwi tngaiilJtatlon Mdmm-i trol, which prooauiy can oe ueto. ii imh. solely, settled by upnvootions' betwees lite respective Mtahm., 1 a Uu atMtfnoe, hotever, of international conventions on the aublieet. Jecl, municipal Mglxtanosi may secure imnv imintM which aooear to me linportaut.'il not IndHirs-nsftMe.for lhe protection of the public against the extortions' which i.ay result from a monopoly of th right ol operating cable telegram, or from a combination between several lines. First, no line should be allowed to land on the shores of the United States under the concession from another power which does not admit the right of any other line or lines formed In tlie United State to Ian d ami freely connect with and operate through land lines. Seoimd, no line should be allowed to land on the shores of the United States wb leu is not,1 by treaty stipulation with the government from whose shores It proceeds, or by prohibition In its charter, or otherwise, lo the satlslaction of this government, pmnioiiea irom consolidating or amalgamating with any o- her telegraph line, or combining therewith for the purpose of regulating and maintaining the coil of telegraphic com munication. Third, all lines should lie bound to give precedence In the transmission of the official massages ol the govern ments ot the two countnes net ween wmeii ft mav he laid. Fourth, a Dow should be reserved to the two governments, - either conjointly or to, each,' as regards the message- d ijspa&ched from Its shores, to fix a limit 'Mt-i-c)Mrge to be maintained for transmission ol messages. I present tbis subiect to flie consideration or congress in the meantime, and, unless Congress otherwise directs. I shall not oppose the landing of any telegraphic cable which compiles wilh and assents to the points above enumerated, but will feel It my duty to . pre vent the landing oi any wnicn ao not conform to the first and seeond points, as stated, and which will not stipulate to concede to this government the precedence in the transmission or its omciai messages, and will not enter Into satisfactory arrangements in regard to its charges. ' NATUBAIiIZATION AND EXPATRIATION. Among the pressing and' Important subjects to which, in my. opinion, the attention of Conjrress should be direc ted, are those relative to fraudulent naturalization and expatriation., ihe United States, with .great liberality, offers its citizenship to all who, in good faith, comply with the requirements of the law. These requirements are as simple aud upon as favorable terms to the emigrant as the high privilege to which he is admitted can or should per mit. I do not propose any additional requirements to those which the law now demands, but the very simplicity and want of necessary formality in our laws have made fraudulent naturalization not infrequent, to the discredit and injury of all honest citizens, whether native or naturalized. Cases of this character are continually being brought to the notice of the government by our representatives abroad, and also those of persons resident in other countries. Most frequently these, if they have remained in this country long enough - to entitle them to become naturalized, have generally not much . overpassed that period, and have returned to the country of their origin, where they now reside, avoiding all duties to the United States, by their absence, and claiming to be exempt from all duties to the country of their nativity aud of their residence, by reason of : their alleged naturalization. It is due to this government itself, and to the great class of naturalized citizens who entirely, both In name and in fact, become citizens of the United States that the high privilege of citizenship .should not be. held by fraud, or in derogation of the laws or of the good name of every honest citizen. On many occasions It has been brought to the knowledge of the government that certificates of naturalization are held and protection or interference claimed by parties who admit that not only they were not within the United States at the , time of pretended naturalization, .but that they have never resided In the United States. In others the certificate and record of the court show on their face that the persona claiming to be. naturalized had not resided at the time t in the United States.. In others it is admitted upon examination that the requirements of the law have not been complied with. In some cases even, such certificates have been matter of . purchase. These are hot isolated cases, oecuring at rare intervals, but of , common occurrence, and which are reported from all quarters of the globe. Such occur rwiivos cannot And do not fail to reflect upMu the government and injure all hout citizens, , Such a fraud being discovered, however, there is no practicable means within the control , of the government by which the. record of naturalization can be vacated. The certificate can be taken up, as It usually is by diplomatic and consular representatives of the government to whom it may ' have been presented. - There is nothing to prevent the person claiming to have been naturalized from obtaining a new certificate from the court in place, of that which has : been taken . from him. The evil has become so great, and of such frequent occurrence, that I cannot too strongly reoeommend that some effective uiea.su res be adopted to provide a proper remedy for the vacating ot any records fraudulently obtained and of punishing the guilty parties to tlie transaction. In this connection I refer also to the question of expatriating and the election to nationality. The United States was foremost in holding the right of . expatriation, and was principally . instrumental in overthrowing the doctrine of, perpetual allegiance.. Congress , has defined the right of expatriation to be a national, inherent right of all people; but while many other nations have laws providing what formalities - shall be necessary to work a change of allegiance, the United States has enacted no provisions of law and has In no respect marked out how and when expatriation may be accomplished by its citizens. . Instances are brought to the attention of the government where citizens of the United States, either naturalized or native born, have formally become citizens, as subjects of foreign powers, but who, nevertheless, in the absence of any provisions of legislation on , these questions, when involved in di(Iiculties,or when it seems to be their interest to claim to be citizens of the United States and demand the intervention of a government which they have long since abandoned, and to which for years they have rendered no service, nor held themselves in any way amenable. In other eases, naturalized citizens, immediately after naturalization, returned to their native country, have become engaged iu business, have accepted office, engaged in pursuits, .content with their American citizenship, aud evinced no intent to return to the United States, until called upon to discharge some duty to the country where they are residing, when at once they assert their oitfcsenship and call upon the representatives of the government to aid them in their ore tensions. It is but justice to bona fide eitizens that no doubt should - exist on such questions, and that . Congress should determine, by enactment of law, how expatriation will be accomplished ana change of citizenship - be established. I also invite your attention to the necessity of regulating by law the status pf American women who may marry ioreigners, and of denning more fully that of children born in a forelmi country of American parents who mav reside abroad, and also of some further provisions regulating . or giving legal err ect to marriages, of American citizens contracted in foreign : countries. . The correspondence submitted herewith shows a few of the constantly occur ring questions, on these points presented to the consideration of the govern ment. These are four subjects to en gage the. attention . of Congress on which more delicate relations are de pending. , , " ; SEW STATE DEPARTMENT BUIUMNO. ' In the month of July last the building erected for the Department of State was taken possession of and occupied by that department. I am happy to say that the archives and valuable papers of the government In the possession of that department are now safely deposited and properly cared for. , THE TBEASrBT. The report of the. Secretary of the Treasury shows the receipts from customs for the fiscal year ending June 30, 1S74. to have been $163,103,833.6, and for the fiscal vear ending June 30, 1875, to have been 157,167,722.35, a decrease for the last , fiscal year of $5,936,111.34; receipts from internal revenue for the vear ending June. 1874, were $103,409,784.90. and for the year ending June 30, 1875, $1 1 0,007,493.58 dnerease, $7,597,708. 6X. sThe report also shows a complete history of the working of the department for the last year, and contains recommendations for reforms, and for legislation, which I concur in, but cannot comment on so fully as I should like to do, if space would permit; but will confine myself to a few suggestions which

I look upon as vital to the beat Inter-' est rrf the whole people, comJag within the purview of the treasury.

. apaciE Kxax'XFTioif.I mean specie resumption. Too u rm aanot no laui upon this uuea tion, and I hope Congress may foe In-5 duced, at the earliest day practicable, to insure the consummation of the act of Congress at Its last session, to bring about specie resumption on and after the first of January, 187, at furthest. It would be a great blessing If this could be consummated at an earlier day. Nothing seems to me more certain than that a foil, healthy and per manent reaction cannot take ptaee in favor of ' the industries and financial ' welfare of the country until we return ' to a - meaeure of values - recognized -throughout the civilized world. While this standard, the world's recognized standard, specie becomes a commodity like the products of the soil the surplus seeking a market wherever there is a demand for It. Under our present system we should want none, nor would we have any were It not that custom's dues must be paid In coin, and because of the pledge to pay the interest on the public debt In coin. The yield of precious metals would flow out for the purchase of foreign productions, and ' leave the United States hewers of wood and drawers of water, because of the wise legislation on the subject of uumivu vjr utv iiauuiio wiiu wuuur w have dealings. I am not prepared to say that I can suggest the best legislation to secure the end most speedily. It will be a source of great gratification to me to be able to approve any measures of Congress looking effectually toward securing resumption. Unlimited inflation would probably bring about specie payments more speedily than any legislation looking to the redemption of legal tenders in coin; but it would be at the expense of honor. The legal tenders would have no value 1 1 ...11 v Tll.l : ucvunu r.-LLiuiif iiieeiii. lutuiuuen. or. properly speaking, repudiating them. They would buy nothing after , debts are all settled. There are a few measures whieh seem to be important in this connection which I commend to your consideration. A repeal of so much of the legal-tender acts as makes these notes receivable for debts contracted after a date to be fixed in the act itself, not later than the 1st of January, 1877. We should then have quotations at real values, not fictitious ones. Gold' would no longer be at a preminm, but currency at a discount. A healthy reaction would set iu at once, and, with the desire to make the currency equal with what it purports to be, the merchants, manufacturers, and tradesmen of every calling could do business on afair margin of profit, the money to be received having an unvarying value. Laborers and all classes who work for stipulated pay or salary would receive more, because extra profits would nolonger be charged by the capitalists to compensate for the risk of a downward: fluctuation in the value of the currency.. Second, that-the Secretary of the Treasury be authorized to redeem saynot to exceed $2,000,000 monthly of legal-tender notes by issuing, in their -stead, long bonds, bearing interest at the rate of 3.65 per cent, per annum, of denominations varying from $500 to$1,000 each. This would in time re duce the legal-tender notes to a volume that could be kept afloat without de lUBUViUK 1 CUCUilfUtril UM H KV 9UIUO 0UU - denly. Third, that additional power begiven to the Secretary of the Treasury to accumulate gold for the final redemption of the currency, by increasing revenues and curtailing expenses,, or both. It is preferable to do both and I recommend that a reduction of expenditures be made whenever it can be done without impairing the govern ment obligations or crippling the due execution thereof.- One measure for Increasing the revenue, and the only one. T think, la the restoration of the duty on tea and coffee. These dutieswould add probably $18,000,000 to the present amount received for imports, ' and would in no way increase the prices paid for these articles by the consumers. ' These articles are the products of foreign countries collecting revenue from exports, and as we, the largest consumers, reduce they proportinately Increase them. With this addition to the revenue, many duties new,: collected, and which give but an insignificant return for the cost of collection, might be remitted, and to the direct advantage of consumers alone. I WOU.VI 9entipn those articles which enter baio manufactures of all sorts. - All t..l1 1.. tt.. o..Ah .llnlod ... , - flirertlv to the coat of the article when manufactured here, and must be 'paid: for bv the consumers. The duties not only come from the consumers alone,, but act as a protection to foreign man ufacturers oi tne same oompietea article in our own and distant markets.. :'!-, t FRAUDULENT CLAIMS. ii :.?..; I - will suggest or mention anothersubject bearing upon the problem of , , , , , . . . i now w euaoie iu Dwremry oi uieTreasurv to accumulate balances. It is to devise some better method of ' verifying claims against the govern-, ment than at preeent exists through: the Court of Claims, especially those claims growing out of the late, wr. Nothing is more certain tbfl, that, a ; lanre nercentaire of the amounts .passed ' and paid are part or wholly fraudulent, or are far in excess of the real losses . sustained. The large amount of ' losses proven on good testimony, ac cording to existing laws, by affidavits ; of fictitious and unscrupulous persons ; to have been sustained on small farms . and plantations, are not only far beyond the possible yield of such places. out as every one Knows wno nas expe- - nence in tilling tne sou, auu wno nasvisited the scenes of the spoliations, are in many instances more than the individual claimants were ever worth, including their personal and real es tate. 1 .;-.'..- ., The report of the Attorney-General, which will be submitted to Congress at an - early day, will contain a detailed ' history of the awards made and or claims pending, of the class here re ferred to. ... THE WAR DEPARTMENT. The report of the Secretary of "War, accompanying this message, gives a detailed account of the army operations Pot the year just passed, the expenses for maintenance, etc., with recommendations for legislation, to which I respectfully invite your attention. To some of these I invite special attention. First, the necessity of making $60,000 of the appropriation for the Subsistence Department available before the beginning of the next fiscal year. Without this provision. UUUl?B M (IVU1W UiaMUlH llvlll DUply posts must either go without food, or the existing laws must be evaded. It hi not attended with cost to the Treasury. Second, his recommendation of an enactment of a system of annuities for families of deceased offi cers, by voluntary reductions from the monthly pay of officers. This, again, is not attended with burden upon the Treasury, and wouid. fcr the future, relieve much distress, which every old army officer has risked la the past, of officers dying suddenly, or being killed leaving their families without even the means of reaching their friend, It for. tunate enough to have friends to aid thenu Third, a repeal ot the- law abolishint mileage aad a return to the old . ssHk. Fourth, the trial with torpedoes under the corps of engineers, and appropriation for the same. Should, war ever occur between the United; States and any maritime power, torpedoes will be among if not the most effective and cheapest auxiliary for the defense of harbois, and even in aggressive oiierations, that we can have.. Hence it is advisable to learn, by experiment, their beat construction and application, as well as effect. Fifth, a permanent organization for the signal service corps. This service has now : 9 hAuM &a well become a necewmij " " . -- -- as war, under the advancement made by the present able management. ,r the atuiroi) nation for compiling the omciai records of the war, etc. . . THK KAVT. - The condition of our navy at tills time is a subject of satisfaction. It does not contain, it is true, any of the .nr ironclads, which make so much of maritime strength of some other nations, but neither our Conti nental situation nwourrrwu ... should have a large nulnbeV of ships f this character whUhe situation and the nature of " ,.Hni.e to make those of oilier nations httle dangerous to us un der any circuaistancw. , , ' " contain, however, a considerable num- . " . ,' ... i . Xt the monitor class. wm SougTnot properly cruisers.. Ire powerful and effective, for harbor defensl for operation near our own ueiense, iw i sinsrle-turret-snores. - - v . ed ones, fifteen In number, have been substantially reouiK. rTr rT m - j imn their halls beams rctuac . - Suthe'ned, d theU d machinery wummu r-