Terre Haute Weekly Gazette, Terre Haute, Vigo County, 6 December 1877 — Page 1

HAYES' MESSAGE.

He DiKeiiftscn (lie Question of Resumption,

Ana

Also of the Remonetization cf Silver.

He i? Opposed to the Full Restoration of the Silver Dollar.

Other Questions of Important Interest.

THE PRESIDENT'S MESSAGE. Fellow citizens of the Senate and House of Represententativei:

With great gratitude to the bountiful giver of all good, I congratulate you at the beginning ot your first regular session. You find our country blessed with wealth and peace and abundant harvests, and with encouraging prospects of an early return of general prosperity.

SOUTHERN POLICY.

The pacification of the country continues and will be until it is fully accomplished, and must remain the most important of all our national interests. The earnest purpose of all gO"d citizens, generally to unite their efforts in these endeavors, is evident. It found decided expression in the resolutions announced in

1876

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 amendments to the constitution were in imminent jeopardy that the good understanding which prompted their adootion in interest of a loyal devotion to the general welfare might prove a barren truce, and that the sec tions of the ceuntry once engaged in civil stiile might be again almost as widely severed ar.d disunited «s they were when arrayed in arms against each other. These measures were in judgement,such as

fere

most in harmony

with the constitution and with the genius of our people and best adapted all circumstances to attain the end in view. 1 he beneficial results already reaclvd prove that these endeavors are not to be regarded a» a mere experiment and should sustain and encourage us in our efforts Already in the brief time which has elapsed, the immediate effectiveness, no less than the justice of tht course pur-ued is demonstrated, and I have an abiding faith that time will fur nish its ample vindication in the minds of the great majority of my fellow citiaens. The discontinuance of the use ol the army for the purpose ot upholding local governments in two states of the

Union was no less a constitutional duty and requirement under the circumstances existing at the time than it was a needed measure for the restoration of local self-government and the promotion ot national harmony The withdrawal ot the troops from such employment was effected diligently and with solicitous care lor the peace and good order ot society and the protection ot the property and persons, and of every right ot all classes of citizens. The results that have followed are indeed significant and encouraging. A11 apprehension of danger from remitting those state9 to local

self

government is dispelled and

the m®st salutatory change in the minds of the people has begun and is in progress. In every part of that section of country, once the theatre of unhappy civil strife, are fubstituting for suspicion, distrust and aversion, concord friendship, and patriotic attachment to the union. No unprejudiced mind will 4eny that the often tatal collisions which lor 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 heaity national interest has succeeded. There has been a general re-e6tablibh-ment 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 rcunied, public credit in the southern Btates has been greatly strengthened and the encouraging benefits ot 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 ot such importance that we may with eonfidence patiently await the desired consummation that will surely Come with the natural progress of events.

Itonay not be improper here to nay that it should be our fixed, uualterabie determination to protect, by all available and proper modes, the constitution and the lawn with reference to the lately emancipated race in the experiment of their rights and priuilegee, and I urge upon those to whom heretofore the colored people have sustained the relation of bondsmen, the wisdom and justice of humane and liberal local legislation with respect to their educational 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 and equal citizenship the repression and sure punishment by the national and local authorities, within their respective jurisdictions, of every instance o! lawlessness and violence toward them, is requited for the security alike of both races, and is justly demanded I the public opinion of the country and the age. In this way, the restoration of harmony and good will and the complete proection of every citizen in the full *njo,ment of every constitutional right, will surely be attained. "Whatever authority rests with me to this end I shall not hesitate to put forth whatever belongs to the power of congress and the jurisJiciion of the courts of the union, tney may confidently be relied upon to provide and perform, and the

legislature*, the cour's and the executive authorities of the saver il states I earn-e-iily appeal to secure, by adequate, appropriate and reasonable means, within their borders, the common and eqaal right*of a united people, which love liberty, abhor oppression and reverence justice.

These objects are very dear to mv heart. I shall most earnestly strive for their attainment. The cordial cooperation of all classes, of all sections of the country, and of both races is required for this purpose, and with this blessing a^ured and not otherwise, we may safelt hope to hand down our tree institutions of government unimpaired to the generations that will succeed us.

THE CURRENCY.

Among the other subjects of great and general importance to the people of this country, I cannot be mistaken, I think, in regarding as preeminent 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 eur system of exchanges, which is based upon precious metals as the intrinsic money of the world. In the public judgment that this end should he sought and compassed as speedily and securely as the resources ot the people and the wisdom of their representatives uan accomplish it, there ie 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 the subject, I am but more confirmed in the opinion which I expressed in accepting the nomination for the presidency, and agtin, upon my inauguration, that the policy of resumption should be pursued by every suitable mea"S and that no legislation wculd be wise that should disparage the impoi tance or retard the attainment ot that result. I ha\c no disposition and certainly no right to question the sinceri ty or integrity of the opposing opinions, and would neither conceal nor under value the considerable difficulties and our occasional din ress which may attend the progress of the nation toward this primary condition to its general and permanent prosperity. I must, however, adhere to my most earnest conviction that any wavering purpose or unsteadiness in methods. & oidingor reducing the inconvenience*, .^separable lrom transition, from an irre dt finable a redeemable paper currency, would onh tend to the increased and prolonged disturbance in values, and unless relieved, must end in serious disorder dishonor, and disaster in the financial affairs of the government and of t)he peo pie. The mischief which I apprehend and urgently deprecate, and which is confined to no class ot the people, indeed, but it seems to me most certainly to threaten the industrious masses, whether their occupations are of skilled or common labor is in delay. Closely connected with this general sub ject of the resumption of specie payments is one subordinate but stiil of grave importance. I mean the readjustment of our coinage system by the removal ot

THE SILVER DOLLAR

as an element of our specie currency, endowed by legislation with the quality of legal tender to a greater or less extent. A» there is no doubt of the power of congress under the cons'itution 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 the coinage, the considerations which should induce or discourage a particular measure connected with tht coinage belong clearly to the province of legislative discretion and ot public expediency. Without intruding upon the province of legislation in the least, I have thought the subject of such critical importance in the actual condition ot 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 opinion as I do that neither the interest of the government nor of the people of the nited States tyould be promoted by discharging silver as one of the two precious metals which furnish the coinage of the world and that legislation which looks to maintaining the volume ot intrinsic money to as full a measure of both metals as their relative commercial value will permit would be neither unjust nor inexpedient, must ask your indulgence to a brief and definite statement of certain essential features in any such legislative measures which feel it my duty to recommend. I do not propose to enter the debate, represented on both sides by such able disputantants in congress, and before the people and in the press, as to the extent which the legislature of any one nation can control this question, even within its own borders, against the laws ot trade or the positive laws of other governments. The wisdom of congress in shaping any particular law that may be presented for my .approval may wholly supersede the necessity of my entering into the reconsideration, and 1 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 value of legal tender, it seems to me of great importance that congress should not lose signt of its action, or act in a two-fold capacity, and in two distinct directions. If the United State Government were free from a public debt, its legislative dealing with the question of silver coinage would be purely sovereign and governmental under no restraints but those of constitutional power, and the public good as affected by the proposed legislation: but in actual circumstances of the nation with a vatt public debt distributed very widely among our own citizens and held in great amount also abroad the nature ot the silver coinage measures «s affecting this re­

0.64. TEBRE HAUTE, INDs..—THURSDAY, XOWCQGR 6,1877.

lation of government to the holders of the public debt becomes, in any proposed legislation, of the mgnest "concern the obligation of the public faith transcends all questions of profit or public advantage, otherwise its unquestionable main tenance is the highest expedience as well as the most necessary duty, and will be carefully guarded by congress and the people alike. The public debt of the United States to the amount of

000

$729,000,-

bears interest at the rate of

5

per cent., and the only way in which the country can be relieved from the payment of these high rates of interests is by advantageously refunding the indebtedness. Whether the debt is ultimately p^id in gold or silver coin is cf bat little moment compared with the possible reduction of interest one-third, by refunding 'tatsuch reduced rates. If the United State* had the right to pay its bonds ineoin, the little benefit from that process would be greatly overbalanced by the injurious effect of such payment, if made or proposed against the honest convictions of public credit. All the bonds that have been issued since February 12,1873. when gold became the only unlimited legal tender metallic currency ot the country, a-e justly payable in gold coin or in coin of equal value. During the time of these issues the only dollar that could be or was received by •.he 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 tbe full obligation assumed. The bonds issued prior to

1S73

were issued

at a lime whep the gold dollar was the only coin in circulation or contemplated by either the government or the holders of the bonds, as the coin which they were to ht paid. It is far better to pay these bonds in that coin than to seem to take advantage of the uniorseen fall of silver bullion in a new issue of silver coin that was maae so much less valuable. The power of the United States to coin money and to regulate the value there ol ought never »o be exercised lor the purpo«e of enabling the government to pay its obligations in a coin of less value than that contemplated bv the parties when t!ie bonds were i«-ued. Any tatempt to pay the national indebtedness in a coinage ofa less commercial value than the mor.ey of the world, would involve a violation of the public faith and work irreparable injnrys 10 the public credit. It was the grea erit of the act of March,

1869,

in

itrenglheninu the public credit, that it removed all doubt as to the purpose of the Uni'ed States to pay their bonded debt in coin. That act was accepted at a pledge' of pubic faith T.e government has derived great benefit rum it in the progress thus far made in refunding the public debt at as low rates ot interest. It is an adherence to the wise and just policy of an exact observance of the public faith, and will enable the government rapidly to reduce the burden of interest on the national debt to an amount exceeding

$20,000,000

10

per an­

num and effect an aggregate saving to the United States of more than

000,000

$300,-

before the bonds can be

fully paid. In adopting the new silver coinage to the ordinary uses.of currency in the every day transactions of life and the preserving tbe quality of legal tender to be assigned to it. A consideration of the first importance should be so to adjust the rates between ihff silver and gold coinage, which now constitutes our specie currency, as to ahcomplish the desired end of maintaining the circulation of tbe two metallic agencies and keeping up the volume of the two precious metals as our intrinsic money. It is a hard question, for scientific reasoning and historical experience to determine, how far and by What methods a practicable equil irium can te ^naintained which will keep both metals in circulation. In their appropriate spheres of common use an absolute equality ot com mercial value free from disturbing fluctuation is hardly attainable and without it an unlimited legal tender for private transaction assigned to both metals would tend to drive out of circulation the dearest coinage. The principal object proposed by the legislation in view I apprehend

be therefore that the two con­

ditions of a near approach to equality of commercial value between the gold and silver coinage of the same denomination and of a limitation of amounts for which the silver coin is to be a legal tender are essential to maintaining both in circulation. If these conditions can be successfully observed the issue from the mint of silver dollars would afford material assistance to the communty in the transition to red eemable paper *nd would facilitate the resumption of specie payment and its permanent establishment." Without these conditions 1 fear that only mischief and misfortune would follow from a coinage of silver dollars with the quality of unlimited legal tenders. Even in private transactions any expectation of temporary ease from an issue ot silver coinage to pass as a legal tender at a rate materially above its commercial value, is, I am persuaded, a delusion. Nor can I think that there is any substantial distinction between an original issue of silver dollars at a nominal value material above their commercial value, and the restoration of the tilver dollar at a rate which once was but has ceased to be its commercial value. Certainly the issue of our gol-i coinage, reJuced in weight materially below the legal tender value, would be less debasement of the coinage, by reason of its equaling,or even exceeding, in weight a good coin, which at same past time had been commercially equal to the legal tender vtlue aligned to the new issue. In recommending that the regulation cf our silver coin, which may be authorised by congress,should observe these conditions of commercial value and limited legal tender. I.am governed by the leleing that every possible increase should be given to the volume of metalic money .jvhich can be kept in circulation and thereby every possible aid afforded to the people in the process of resuming specie payment. It is because I think that a disregard of these conditions would frustrate the good results which are desired lrom 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 any legislation providing for a silver coinage and imparting, to it the quality of legal tender there be impressed on the meamre a firm provision exempting the public debt heretofore issued and now outstanding from payment of either of principal or interest in any coinage of leas value than the present gold coinage ot the count!y.

CIVIL SERVICE.

The organization of civil service of the country has for a number of years attracted more and more of public attention. So general has beedtrte the opinion that the methods of admission to it and the conditions of remaining in it are unsound, that both the great political parties have agreed in a most explicit declaration of the necessity for retorm,and in the most emphatic demands of it. I have fully considered the declarations and demands to be the expression of the sincere conviction of the intelligent masses of the people upon the subject, and tha* they should be recognized and followed by earnest and prompt action on the part of the legislative and|. executive departments of the goverment in pursuance of the purpose indicated Before my accession to office, I endeavored to have my own views distinctly understood, and upon my inauguration mv accord with the public opinion was stated in terms believed to be plain and' unambiguous. Mv experience in the executive duties has strongly confirmed my belief in the great advantage the country would find in ob erving strictly the plan (jf the constitution which imposes upon the executive the sole duty and responsibility of the selection of these federal officers, who, by law, arc appointed, riot elected, and which in like manner assigns to thesenAie the complete right to advise and consent to,

or

to re­

ject, the nominations so made, whilst the house of representatives stands as the public censor of the performance of official dutiei, with the prerogative of investigation, and providing punishment in all C*M* of direlection. 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 purio*e in this fespei.t has been to retnr 1 to the system established by tbe fundamen'al law, and to do this with the heartiest co-operation and most cordial understand! with the Senate and I louse of Representatives. The practical difficulties in the selection of numerous officers for posts of widelv varying responsibilities and duties, me acknowledged to be very great. No system can be expected to secure absolute freedom from mistakes, and the beginning of an attempted change of custom is quite likely Wf -be rirore embaramsid in this re spect than any subsequent period. It, is here that th$ constitution proves its its claims to the great wisdom accorded to it. It gives to the executive the assistance of the knowledge ard experience of the senate, which, when acting upon nominations as to which they may be disinterected and impartial judges, serves as a strong guaranty of freedom of errors of importance as is perhaps possible in human affairs. In audition to this, I Jecognize the public advantage of making all nominations as nearly as possibly im personally in the sense of being free from mere capri or favor. In these directions, can those officers in which special 'raining is of greatly increased value I claim such a rule as to the tenure of office should obtain as may induce men of proper qualification to apply tnemselves industriously to the task of becoming proficient Bearing these things in mind, I have endeavored to reduce the number of changes in subordinate places usually made upon the change of equal administration and shall most certainly cooperate with Congress in better systemizing by such modes and rules of adn'ission the public service and of promotion within it, as it may promise to be most successful in making thorough competency, efficiency and character the decisive tests in these matters. I ask re newed attention of Congress to what has alreaay been done by the civil service commission, appointed in pursuance of an act of Congress by my predecessor to prepare and revise the civil service rules in regard to much of the departmental service, especially at Washington. It may ba difficult to organize a better sys tem than which has thus been provided, and is now being used to a considerable extent. Under my direction the commission has a still legal existence although for several years no appropriation has oeen made "for defraying its expenses. Believing that this commission has rendered valuable agency in irmroving 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 a report by the chairman of the commission, and to ask your attention to such measures on this subiect, as, in my opinion, will further promote the improvement of the civil service during the past year.

FOREIGN RELATIONS.

The United States have continued to maintain peaceful relations with tor»*ign powers. The outbreak of war between Russia and Turkey, though at one ime 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 Turkish governments have shown an earnest desire to adhere to the obliga tions of all treaties with the United States end give due regard to the rights of American citizens. By the terms of the treaty defining the rights, immunities and privileges of consuls between Italy and the United States made in

1S68,

either Government after

the lapse of ten years can terminate the existence of the treaty by giving twelve months notice of its intention. The government of_ Italy, availing itself ot

this facility, has now given the required notice, and the treatv will accordingl end on the

17th

of September,

1878.

i_

is understood, however, that the Italian government wishes to renew it in a gen eral cope, desiring only certain modiiica tiors in some of its articles. In this dis position concur and shall hope that no serious obstacles may intervene to prevent or delay the negotiation of a satisfactory treaty. Numerous questions in regard to passports, naturalization, exemption from milttary service, have continued to arise in the cases of emigrants from Germany who have returned to their country. The provisions of the treaty of February 23d, 186S however, have proved to be so ample 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 relation existing between the two governments, but, it is believed, without injury or injustice to duly naturalized American citizens. It is desirable that the treaty originally made with the North German Union in 1867, should now be extended so as to apply equally to all the States of the empire of Germany.

PARIS EXPOSITION.

The invitation of the government of France to participate in the Exposition ot the products of agriculture, industry and the fine arts to be held at Paris during the coming year was submitted for vour consideration at the extra session. It is not doubted tha? its ac:eptance at orce by the United States, and a well selec'ed exhibition of the products of American industry on that occasion, will tend to stimulate international commerce itnd immigration, as well as to promote traditional friendship between the two countries.

A question arose some time since aa te the proper meaning of the extradition miclesyof the treaty of 1842. between the United States and Great Britaid. Both governments, however, are now in accord in the belief that tbe question is not one which should be allowed to frustate the ends of justice, or to disturb the friendship between the two nations.

No serious difficulty has arisen in accomplishing ^e extradition of criminals, when necessary. It is probable that the points of disagreement will, in due time, be settled, and if need be a more explicit declaration be made in a new treat".

FISHERIES

The fishery commission under the articles 'of

1830

of ^Washington

has concluded its session, and the result of the deliberations of the commission, as made public by the commissioner*, will be communicated to Congiess. A treaty for the protection of trade marks has been negotiated with Great Britain, which has been .submitted te the Senate for its consideration, 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 Porfiero Diaz in the presidential ofhee. 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 defacto government as oon 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 Grinde' border, the records of which have already been communicalea to each house of Congress in answer 13 their respective resolutions ot inquiry. Assurances have been receiv *1 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 hoped that events may prove these assurances to be well foundei. The best interests of both countries require the main* tainance of peace on tbe border, and the development of commerce between the two republics. It is gratifying to add that this temporary interrap ion of official relations has not prevented dne attention by the representative of the United States in Mexico to the protection of American citizens as far as practicable. It has not interfered with the prompt payment of the amounts due from Mexico to the United States under the treaty of July

... CUBA. •*,

Another year has passed without bring ing to a close the. protracted 'contest between the Spanish government and insurrection in the island of Cuba. While the United States have assiduously abstained from intervention in this controversy, it is impossible not to feel it is attended by incidents affecting our citizens. Apart from the effect ot the hostilites upon trade between the United States'and Cuba their progress is inevitably accompanied by complaints having more or less foundation. Searches, arrests, enlarged and .expensive taxis upon property ot American residents and ot unprovoked interference with American vessels and commerce. It is due to the government ot Spain to say that during the past year it has promptly discovered anJ offered reparation for any unauthorized acts of unduly zealous subordinates whenever each ants have been brought to is attention. Nevertheless, such occurrences cannot but tend to excite feelings of annoyanee, suspicion and resentment, which are greatly to be depreciated between the respective subjects and citizens of two friendly powers,

Much delay consequent npon accusations of fraud in some of the award* has

Whole No. 99.

occuraed in respect to the distribution of the limited amounts received from Vwesuela under the treata of April 25,1866, applicable to the awards of the joint commission created by that treaty. So long as these matters are pending, Congress and the Execntive cannot assume either to pass upon the question*: presented or to distribute the fund received. It is eminently desirable that definite legislative action should be taken, either deciding the award to be final, or providing some method for the re-rxamination of claims.

Our relations with the republics of Central and South America and with the Empire of Brazil, have continued with no serious change further^ than the temporary interruption of diplomatic couise with Venezuela and with Guatemala. Amicable relations have already been restored with Venezuela, and it is not doubled that all grounds of misunderstanding with Guatemala will speedily be removed. From all tho«e countries there are favorable indications ot a disposition on the part of their Governments and people to reciprocate our efforts in the direction of increased commercial intercourse. The Government ot the Samoan Islands has sent an envoy in the person of its Secretary of State to invite the Government of tne United .T States to ad vue and protect their independence, to establish commercial rela-

THE raAHCts.~

r'

tions with their people, to assist them toward responsible positions, and to regulate the government. The inhabitants of the^e islands having made considerable progress in Christian civilization and the& development of trade, are doubtful ottheir ability to maintain peace and independence without the aid of some stronger power. 1 he subject is deemed worthy ot respectful attention, and the claims upon our assistance by this distant commurity will be carefully considered.

The long commercial depression in the United States has directed attention to the subject of the possible increase of our foreign trade and the methods lor its development not onlv with Europe but with other countries, especially with the states and sovereignties of the western hemisphere. Instructions from the de-^ partment of state were issued to various-^ diplomatic and consular officers of the Government asking them to devote attention to the questions and to methods by which they could bring respective' countries of their official residence, and the United Slates into close commercisl relations. In obedience to these ipstructions eliminations and reports apoft™ this subject have been made by msny of these officers, and trackmiited to the d«* partment, and some are submitted to the c^ositiera.ion of congress.

The annual report of the seereta^of the treasury on the state of the fiaaAose present important questions for the action of congress, upon some of which I have already remarked. The revenue of the government during tbe fiscal year endlfef'June

30, 1877,

sum of

was $260,000,536,620. The

total expenditures for the same period were$238,660,008,103, leaving a surplus revenue of

$30 240,577.99.

This has sat-

isiactorily supplied the requirements ol' the sinking tund for that year The es- », timateof the revenues of the current fiscal year are

$265,500,000,

$232,430,643.72.

and the esti­

mated expenditures tor the same period are

If these estimate*'

prove to be correct, there will be a surplus revenue of $33,069,356.28, an amount nearly sufficient for the sinking fund for that year the estimated revenues tor the next fiscal year are

$269,250,000.

It appears from thn re*

port, that during the last fiscal year the-,,, revenues of the government compared with tht previous year, have largely decreased. This decrease, amounting to the

$18,481,452.55,

4th 1868

and awards of the joint commission. While I do not anticipate interruption of friendly relations with Mexico yet I cannot but look with some solicitude upon a continuance of border disorders as exposing the two countries to emotions of popular feeling and mischances cf action which arc naturally unfavorable to complete amity. Firmly determined that nothing shall be wanting on my part to prosuote a good understanding beween the 1 wo nations. I yet must ask the attention of Congress to actual occurrences on the border, that the lives and propert of our citizens may be ade quately protected and peace preserved.

'n

was mainly in cus-

torn duties, caused partly by a large falling off of the amount imported of dutible goods, and partly bv the general fall of prices in the markets of pro ducMons of such articles as pay duty. With ^Congress rests the du-^ ty of strictly limiting appropriations including the requisite sum for the maintenance of a sinking' fund r*: within the aggregate estimate of receipts while the aggregate ot taxes should not. be increased. Amendments might be made to revenue laws that would, without diminishing the revenue, .elieve the!' people from unnecessary burden. A tax on tea and coffee is shown by the experience, not only of our own country but of other countries, to be easily coflected without loss by undervaluation or fraud and largely borne in the country ot production. A tax of 10 cents a pound on tea and

2

cents a

pound on coffee would produce a revenue exceeding $12,000,000, and thus enable Congress "to repeal a multitude ot annoying taxes yielding a revenue not exceeding that sum. ^he internal revenue system grew out of the necessities oi the war, and most of the legislation im- ^imposing taxes upon domestic products under this system have been repealed. By the substitution of tax on tea and cof-v fee al! forms of internal taxation •**, may be repealed except on whisky, spirits, tobacco and beer Attention is also called to the necessity of enacting more vigorous laws for the protection ol the revenue and for the punishment of frauds and smuggling. This can best be done by judicious provisions that will induce the disclosure of attempted fraud by undervaluation and smuggling. All revenue laws should be simple in provisions and easily understood So far as practicable the rates ot taxation should be in the form .of the specific goods and not ad valorem requiring the judgement of expzrienced men to ascertain values and exposing the revenue to the temptation of fraud.

My attention has been called, during ',. the recess of Congress, to abuses existing in the

COLLECTION OF THE. CUSTOMS.

and strenuous efforts have been matte for their correction by executive ordeia. "the ./ recommendations submitted- to feh$ Secretary of the Treasury by the cenumssion appointed to examine into the collection of custom duties at the port of New York contain nany suggestions for the modification of custom laws, to which the attention of Congress is invited. It is a matter ot congratulation

(Csntiaued on Fourth