THE FpjEHrs MESSAGE.
of the UMed States:
WAft,1'?,'1,1'5' the Constitution that the
1 residentWinll from time to time give to the
Congress) Information of the state of the
Union, and recommend to their considern
tion each measures ns he shall judge noces
fiary ftou expedient In roviewing the events
of tho, year which lms elnpscd siuco the
commencement of jour sessions.
n . .. W'HM KELAnONS.
I first call your attention to tho gratifying
condition of our foreign nftalrs. Oar iuter
courgo Willi other powers has continued to bo
of tho most friendly character. Such slight
differences as have arisen during tho year
Iiavo boon already sottled, or aro llkoly to
roach an early adjustment,
J lie arrest of citizens of the United Slntos
tn Ireland under recent laws, which owe their
origin to the disturbed condition of that
country, has led to n somewhat extended oor
Tospondence with tho government of Great
IJritnin. A disposition to respect our rights
lms been practically manifested by a release
of the arrested parties.
Tlio claim of this nation In regard to the
supervision and control of any interoceanio
canal across tho American isthmus has con
tinued to be tho subject of conference. It
is likely that time will bo more powerful
than discussion in removing tho divergence
botwecti the two nations, whovo friendship
is so closely cemented by the Intimacy of
their relations and tho community ot their
interests.
Our lone-established friendliness with Itus
Bia has remained unbroUen. It has prompt
ed me to proffer the earnest counsels of this
government that measures bo adopted
for suppressing tho proscription which tho
Jlebrew race in that country hits lately suf
fered. It has not transpired that nny
American citizen Ins been subjected to ar
rest or injury; but our couiteous remon
Blranco has nevertheless been courteously
received. There is reason to believo that
tho timo is not far distant when llusia will
bo able to sccuro toleration to all faiths
within her border..
At nn international convention held at
Paris in 10, and attonded by representatives
of tho United States, an njreeiuent was
reached in respect to the protection of trade
turnup, jiu.umuu unices, nim mo nguis oi
mnuufactaring linns and corporations. Tho
uiuimnuu); imu uuuues oi mo recommen
dations thus adopted is receiving tho atten
tion which it merits. Tho protection of sub
marine cables is a subir-ct now under erm-
Bidcratiou by an imcruational conference at
Paris. Believing that it is clearly tho true
policy oi una government to tavor tlio neu
tralization of this means of intercourse. I
requested our minister to Franco to attend
the convention ns n delegate. I also desig
nated two of our eminent scientists to nt
tendns onrreprescutathes nt the meeting of
nn international committee, nt Paris, for
considering tho adoption of a common unit
lo measure eucmo lorce.
In view of the frcnuent occurrence of con
foroncos for tho consideration of important
manors ot common interest to civilized na
tions, I rospectfully suggest that tho Execu
tivo bo invested by Conzress with discretion.
nry power to send delegates to such conven
tions, ami mat provision no tnauo to defray
tlio oxponsos incident thereto.
Tho difference betwoon tho United States
tuid Spain as to tho effect of a judgment and
cortillcato of naturalization has not vet been
adjusted, but it is hoped nnd bolieved that
negotiations now in progress will result in
tho establishment of tho position which
Booms to this government so reasonablo and
just. I lmvo already called tho attention of
Congress to tho fact that in parts of Spain
and us. colonies oneious lines navo lately
boen imposed upon vessels of tho United
States for trivial technical offenses against
local regulations. Efforts for tho ubatoment
of these exactions have thus far Droved un
successful, I regret to inform you also that
tlio fees demanded by Spanish consuls in
American ports nro in some caes so large,
when compared with the valuo of the cargo.
ns to amount in effect to u considerable ex
nort dutv. and that our remonstrances in
this regard iiavo not us jet received the at
tention which they seem to deserve.
Tho Gorman government lias invited the
United States to participate in an Interna
tional Exhibition of Dumesliu Cattle, to bo
hold a Hamburg in July, 188.!. If this coun
try h to liii represented, it is important that
in tho early dujs of this session Congress
should make a suitable appropriation for that
purpose.
Tho death of Mr. Marsh, our late minister
to Italy, has evoked from that government
CXIUX'SSlons oi proiouuu reaped ior ms ua
nlled character and for his honorable careei
in tho diplomatic service of his country, Tlio
Italian government has raised n question ns
to tlio propriety of recognizing in his dual
capacity tno representative oi uns country
recently accredited both nssecretarvof lega
tion and as consul-general at Home. Ho has
been received ns secretary, but his exequatur
ns cousul-generallias thus tar been withheld
Tlio extradition convention witli Belgium,
which has been in operation since 1871, has
been lately supplanted by another i tho ben
ntn has siL'iiiiied it's nmiroval. and rntiiica
lions have been duly cxclinugod between tho
contracting countries. To tho list of extrn-
ditablo crimes has been added tint of tho
assassination or attempted assassination or
the chief of tlio state.
Negotiations Iiavo been opened with Switz
erland, looking to a settlement by treuty of
tho quostion whether its citizens can renounce
their allegiance nnd become citizens of tho
"United States without obtaining tho consent
of tho Swiss Government. I niu glad lo in
form you that tho emigration of paupers
and criminals from ceitaiu of the cantons of
Switzerland has subitontially ceased, and is
no longer sanctioned by tho authorities. Tho
consideration of tlds subject prompts tho
suggestion that tho net ot August :i, 188.',
which has for its objert thu leturu of foreigi
convicts to their own rouutry, should bo so
modified us not to bo open to tho Interpreta
tion that it affects tliocxtradition of criminals
on preferred charges ol crime.
Tho ottoman uorto has not yet nssoutod to
tho intorpietation which this government
lias put upon mo treaty ui jnou ruiumu iu us
jurisdictional rights in Turkey. It may well
I . .1. .,.! . .lire : 111 I... -.1.
DO, However, inui uns, uiiieiuncu viii ulmw
lusted by a general lovisiim oi ino system a
Jurisdiction of tho United Statos in the own
tries of tho East, a subiect to which s our at
tcutiim lias been iilready called by tlio socio-
tary ot stato.
In tho interest of justice toward China nn
Januii. I trust that the question of tho retur;
of the indemnity fund to thu governments of
those countries will reach at the present bus
6iou tho satisfactory solution wlucli 1 liav
Already recommended, andwhich has recenl
Jy been foreshadowed by congressional dis
IUK.S1011.
Tlio treaty lately concluded with Core
awaits the action ot the Senate.
During the late disturbance in Egypt tho
timely presence ot American vasiols s-orvud
as a protection to tho permits and property
of many ot our own citizens, nnd ot citizens
ot other countries, wnosu government nay
exnressed their thanks for this iiss'stauio.
Tho recent lei'lslation restricting omigra
tion of laborers fiom China hiss given rise
to the question whether thu Cliuiosu proceed-
ing to or Horn uuotuor country innyiavv
fully pass through our own. l.onstiulng u
nrt of .Mnv tl. 18-1'. ill connection with tl
treaty uf November 7, 18e-0, the restriction
would seem to ne jimiieii to L-nineso euu
grants coming to the United States as labor
crs, and would not forbid a mero transit
across our territory. I nsk tho attention of
Congiess to the subject, for Mich action,
iniv. ns mnv bo deemed advisable.
This government has recently had occnsloi
to iiiamft'Bt its interest in ihe republic of 14
lierin bv seeking to aid the amicable soitle
jnent ot thu boundary dispute now pending
between that republic auutiie uimsii possi
cinti of Sierra Ecouo.
q'ho reciprocity treaty with Hawli will be
come terminable after September !, 188.1,
on twelve mouths' notico by either party,
vVhllo certain provisions of that ivoinpnet
may have proved onerous, its existence lias
foiteied coimiieicwi reimiuuswuiui i u im
portant to preserve. I suggest, therefore,
that early consideration be given to such
moumcations oi the treaty as seem to ho de
tuaudoJ by tho interests of onr people. In
yiow of our increasing trndo with both
Unvti and Sin Dnmlnrfo. T ndvfsn Hint t,rn-
vision bo made for diplomatic intercourse
with the latter, by enlarging the scope of the
minion in x'ori-au-i rince. i regret mat
certain claims of American citizens ngnlnst
tho government of Uayti hnve thus, far been
urged unavallincly.
A recent agreement with Mexico provides
for tho crossing of the frontier by the armed
forces of either country in pursuit of hostjle
Indians. In my message of last year I called
attention to tho prevalent lawlessness upon
the bordors nnd to tho necessity of legisla
tion for its suppression. I again invito tlio
attention of Congress to the subject. A par
tial roliof from theso mischiefs has been
sought in a convention which now awaits the
approval ot tits Senate, as does also nnother
touching the establishment of the interna
tional boundary between tho United Statos
nnd Mexico. If the latter is ratified, tho
action of Congress will bo required for cs-
taniisiiinu fraitnuie commissions ot survey.
Tho boundary disnuto between Moxico nnd
Guatemala, which led this government to
proffer its friendly counsels to both partios,
r.as ueen nmicauiy settled, rsn change lias
occutrcd in our relations with Venezuela. I
again invoke your action in the matter ot
the ponding awards against thnt republic, to
wlucli rofrrencs was matin bv a special mes
sage from the Exccutiva at your hist session.
An invitation has beon received from tho
gmermnent of Venezuola to sud rspre'en-
tntlvosin July, VMS, to Caracas, forrtici
pating in the centennial celabntlon of tho
birth of Bolivar, tlio founder of South Auieri-
can Indopondoucc. In connection,wltli this
oveut it is dosignod to continence tho erec
tion at Carac is of n statue of Washington,
and to conduct nn industrial exhibition
which will bo opoti to American products. I
recommend that tho United States be repre
sented, nnd that suitable provision bo uiado
therefor.
Tao elsvnlion of tho erode of our mission
in Central America to tho plenipotentiary
rank, which was authorized by Congiess ut
its Iato session, ha3 been since effected.
HIE SOUTH AMl-.HIOAN WAR.
The war between Peru and "Bolivia on tho
ono side nnd Chili on the other began more
than threo years ago on the occupation by
Chili in 18S0 of ail tho literal tcriitoryof
Bolivia. Negotiations for ponce were con
ducted under tho direction of the United
States. Tno nllios lefused to concede any
territory, but Chili lias since become master
of the wholo coast of both countries and of
tho capital of I'eru. A year since, as yoa
have nlieady been advised by cor
respondence transmitted to jon in
anuary last, tins government sent n
pecial mission to tho belligerent powers to ex
press tho hopo that Chili would be disposed to
accept a money indemnity for the oxponsos
of tho war and to relinquish her demand
for a portion of the territory of her antagon
ist. This recommendation, wlucli Chili de
clined to follow, this government did not
asinine to onforce, nor can it bo enforced
without resort to measures which would bo
in keeping neither with the tempor of our
poople nor with tho spirit of our institutions,
riia power of l'eru no longer extends over
its whole territory, nnd in tho event of
our interference to dicinto peace would
need to bo supplemented, by tho armies
nnd navies of the United States. Such
interference would almost inevitably load
to tho establishment of n protectorate, a re
sult utterly at odds with our past policy, in
jurious to our prosont interests uud full of
embarrassments for the luturo. ior effect
ing tho termination of hostilities upon terms
nt ouco just to tho victorious nation nnd
genorous to its adversaries, this government
has spared no efforts mch as might involvo
tho complications which 1 unio indicated, it
is greatly to bo deplored that Chili seems re-
sohed to exact such rigorous conditions of
peace, and indisposed to submit to aroitra
tion the terms of an amicable settlement
No peace is likely to bo lasting that is not
sufficiently equitable nnd just to command
tho approval ot other nations.
tub ieaois coxamsss,
About a icar since invitations wero ex
tended to tho nations of this continent to
send representatives to a jieaco congress to
assemble at Washington in November, lSS'J.
i ho timo ot meeting was nxed at a period
then romole, in tho hope, as tho invitation
itsclf declared, that in tho meantime thu dis-
turbances between iho south American ro -
publics would bo adjusted. As that expecta
tion scorned unlikely to bo realized, I nsked
in April last for an expression ol opinion
from tho two housos of Congress as to the
advisability ot holding tho proposed con
vention ut tlio timo appointed. This action
was prompted iu part by doubts which ma
ture reflection had suggested whether tho
diplomatic usage uud tradition of tho gov
ernment did not make it lilting that tho
Executive should consult tho represent
atives of tho people before pursuing n
lino of policy somewhat noel in its charac
ter nun ltir levelling iu us possiuio consu-
quences. In Mew of tho fact that no action
was taken by Congress in the promises nnd
that no provision lias been mado for neces
sary expenses, i subsequently decmc.l to
postpone tho convocation, mid so notified the
scleral governments which hnd been in
vited to attend. 1 am unwilling to dismiss
this subject without assuring you of my sup
port of any inoasuro tho whilom of Congress
may devise for tho promotion of peace on
this continent and throughout thu world.
And I trust that tho timo is nigh when, witli
tho universal assent of civilied peoples.
nil international differences shall bo deter
mined, without resort to arms, by tho be
nignant process of arbitration.
Uhnngcs navo occurred in tho diplomatic
representation of several foreign powers
during tho past year. Now ministers from
tho Argentino llepublic, Austria, Hungary,
Brazil, Chili, China, Franco, Japan, Mexico,
Tho Netherlands uud uussia have presented
their credentials. Tho missions of Den
mark nnd Venezuela ut.this capital iiavo
been raised in grade. Switzerland has cre
ated a plenipotentiary mission to this gov
ernment, and nn embassy from Madagascar
and a ministry from Siam will s'lorily ar
rive. Our diplomatic iiiloreoiir.'o has been
enlarged by the establishment ot relations
with the new kingdom of Servia, by thocro
ntiouof a mission to Sunn, nnd bv tho resto
ration of tho mission to Greece. Tlio shah
of Persia has expres-ed his gratification that
a charge d'affaires will shoitlv be i-ent to
that country, where the rights of our citizens
have been hitherto co'irtcuusly guarded by
the repiesentatives of Great Britain.
1 renew my recommendations of such
legislation as will place the United States in
harmony with other maritime powers with
resiect to tho iniorimtioiml rules for the
pretention of collisions at sea,
In conformity with your joint resolution
of tho 3d of August last, I have directed Jhn
secretiuy of state to address foreign govern
ments in respect to n propo-ed conference
for considering the subject of tho universal
adoption of a common prime meiidiaii to bo
u'cd iu tho reckoning of longitude mid in
the legulutiou of timo throughout the civil
ized world. Thoir replies will in duu timo
bo hi d beforo you.
An agreement was reached nt Paris in 1875
between tho principal poneis for tho inter
clia vo of official publications through tho
medium of their respective forciuu depart
ments. The admirable sjblem which has
been built up by tho enterprise of tlio Smith
sonian institution affords a practical basts
for jour co-operation in this scheme, and nn
arrangement hai been effected by which that
itislltuiioii will imrfoim tho necossary labor
under tho direction of the department of
stale. A reasonable compensation tlieiefor
should bu provided by law.
Tin: imxosmio andoonsuiau beotice,
A clause in the act making appropriations
fot tho diplomatic and consular servico con
templates tho reorganization of both
brunches of such norviui on a salaried basis,
leaving fees to inure to tho benefit of tho
treasury. I cordially favor euch a project as
likely to correct abuses iu tho present sys
torn. The secielary of state will piefont lo
you at au early day u plan for such rooraan
izallou. this inmsuitT.
A full and Ijitortstun; exhibit of tho opcr-
allons of the treasury department is afforded
bythoroport of the secretary. It appoars
that the ordluary revenues from all sources
for the fiscal year ended Juno 30, 18SL', we.'e
as follows !
From custom if220,10,W0 B.'i
From Internal rovenue , HG,ll7,r'Jr 45
From sales of public lands. , . S,io0,lfcu in
From tat on circulation nnd
deposits of national banks. 8,0;C,70i 45
From repayment of interest
by l'acillc Hallway compa
nies 810,551 37
From sinking fund for 1'nclDa
Kailwuy companlos 708,27t 42
From customs, fees, flues, pen
alties, etc....... 1,310,358 00
From fees, consular letters,
patent nnd lauds 2,038,900 07
From proceeds of sales of r
government property 314,959 8
From profits on coinage, bul
lion deposits and nssajs. ... -MlCrra 73
Fiorn Indian trust funds r,705,'JI3 2J
From deposits by Individuals
for snrvoying public lands. . 2,052,30il DO
From revenues of the District
of Columbia., 1,715,170 11
From miscellaneous sources.. H,"S3, 115 43
Total ordinary receipts $103,525,250 23
The ordinary expenditures for tho sumo
period were s
For civil expenses C.1R,0I2.3A5 42
For foreign intercourse I,"ii7,5',! 19
For ledinns U,7.W,"47 40
For pensions G1,3I5,1U3 95
For th military establish
ment, including river and
harbor improvements and
arsonal 43,570,191 19
For tlio naval establishment,
including vessels, machinery
nnd improvements nt navy
vaids 15.0C2.010 20
For miscellaneous expendi
tures, including public build
ings, Hghthoufos and col
lectins tho rovenuo 631. 633.237 CO
For expenditures on account
of tho District of Columbia. 3.330.513 S7
For interest on thopubliodebt 71,077,200 79
Total ordinary expenditures.$257,9tl, 139 57
Leaving a surplus revenun of 8W5.543,.
810.71, which, with mi amount drawn from
tlio cash balance in the treasury ot $2Uc
737,091.81 making $100,281,50.1.55 was ap
plied to the redemption of botuli for tlio
sinking fund, :JGJ,u79,150.00j of fractional
currency for the sinking fund, 58,705.55!
of loan of July nnd August, lfl, 02,572,050;
of loan of March, 18(13, $1,172,900; of fund
ed loan of 18S1, g.17,191,150; of loan of 1858,
:jfi,uuu; ot loan ot eeuruary, imh, if-1" i,uuu;
of fne-twentios of 42,100; of live-
twenties of 18.il, 7,400; of live-twenties of
18U.J, SU.nuu; of ten-forties of mil, S'JM.KM:
of consols of 1805, 80,110; of consols of
1807, 408,2.10; of consols of 1808, 141,100;
of Oregon war debt, SG75,2.10; of old de
mand, compound interest and other notes,
$18,350. Total, 1110,281.505.55.
The foreign commerce of the United
States during tho last fiscal year, including
imports and exports of merchandise nnd
specie, was as follows : Exports, merchan
dise, 750,512,257; specio, 19,417,179. Total,
$799,959,700.
Imports, merchandise, 72l,C39,571j8pecie,
199,172,390. Total, 707,111,901.
Excess of exports over imports of mer
chandise. S25.!)02.G83.
This excess is less than it has beon beforo
for any of tho previous six years, us appears
by the following lablo :
Year ended June 30, oxcossof ex
ports over imiforta of mer
chandise 1870 $79,013,481
1877 5I..',U9l
1878 217,814,2;U
1S79 2i;i,0Ul,tWi
1880 107,(183,912
18S1 2.19,712,718
188-i 25,992,083
During tho year there have been organized
171 national banks, uud of those institutions
there nro now in operation 2,209, n larger
number than ever before. The vnlue of thoir
notes in active ciiculniion on July 1, 1S82,
was 321,0.10,1.18. I commend to your at
tention tho secretary's views in respect to
tho likelihood ot a serious contraction of this
circulation, and to tlm modes by which that
W-ult may, in his judgment, bo averted.
Iu respect to tho coinage of silver dollars
and tlio retirement of tilvcr certificate, I
have seen nothing to alter, but much to con-
firm, tho sentiments to which I gave cxpres-
sions lasts ear. A comparison between tho
respectivo amounts of silver-dollar circula
tion on November 1, 1881, and on No
vember 1, 1882, shows a slight in
crease of a million and a half
of dollars; but during tho interval
there had been in tho wholo number coined
nn increase of twouty-six millions. Of tho
one hundred and twenty-eight millions thus
lnr minted, little more than thirty-live mil
lions are in circlatiou. Tho mass of accu
mulated coin has grown to gieat that tho
vault:rooui at present available for storage is
scarcely sufficient to contain it. It is not
apparent why it is desirable to continue this
coinage, now so enormously iu excess of tho
public demand. As to tho silver certificates,
in addition to tho grounds which seemed last
sear to justily their retirement, may bo men
tioned tho effect which is likely to ensue
lrom tho supply of gold certiticates, for
whoso issuance Congiess recently made pio
vision, and which aro now in active circula
tion. niu sunrLcs hevende.
You cannot fail to nolo with interest tho
discussion by the secretary as to the neces
sity of providing by legislation tome modoof
freeing tho ticasury of an excess of us'eis.
Iu the ovont that Congress fails to reach an
early agreement for the loductiou of taxa
tion, 1 heartily nppiovo the t-ecretary's te
couimeudatiun of immediate and exten
sive reductions in the annual revenues of tho
government. It will be remembered that I
urged upon tho attention of Congress at its
last session the iuiportnuco ot telicviug
tlio industry and enterprise of the coun
try from thu pressure of unnecessary taxa
tion. It is ono of the truest maxims of po
litical economy that ull taxes aro burden
some. However wisely nnd prudently im-po-uJ,
mid though theiohavu alvvuvs been
umoug ourpuoplo wide differences of senti
ment as to the best methods of raising tlio
national revenues, and, indeed, as to the
principles upon which taxation should bo
based, there lus been substantial accord in
thu dcctiiuu that only such taxes ought to
bo levied as lire necessary for a wv e and eco
nouiicat administration of tno government.
Of Into tho publio revenues huvo far ex
ceeded tho limit, and, unless cheeked
by nppropriuto legislation, such excess
will continue to increase fuun year
tu joar. For tho fiscal year inded
Juno 30, 1881, the surplus rovenue
amounted to one hundred millions of dollars.
For the lisc.il jear ended on tho thirtieth of
,111110 last t ho Ml rums was moro t han ono
hundred nndforty-livo millions. The report
of tho secietary Pilaws wh-it ispositiou has
been uiuilo of these moneys. They huvo not
only answered the icquiremeuts of thu sink
ing fund, but huvo inlorded u large balance
iippllcublu to other reductions of tho public,
debt. But I renew the expression ot my con
viction that such rapid extinguishment of tho
national indebtedness as is now tukiug place
is by no menus a cause lor congratulation. It
is a cause miner lor serious apprehension.
lfvit continues it must speedily bo lollowtd
by ono of the evil results coehtnrly sot torth
ill thu report of the secretary; oil tier tho tur
plus must lie idle in tho treasury or tho gov.
eminent will bo forced to buy ut market
rates its bonds not then redeemable, and
which uiidor such circumstances cannot full
to command nn enormous piomiuiii, or the
swollen revenues will bo devoted to extrav
agant expenditure, which, as oxpeiiencv! has
taught, is ever tho batio of un overflowing
treasury. It was made apparent in tho
course- of tho nnlmaied discu.vious which
this question amused nt the lust session of
Congress that tho policy of diminishing tho
revenue by reducing taxation coiiiinamleil
tho general ai)uv.il of the uieinbors of both
houses. I regret that iwcuusu of conlljcting
views as tu Iho best methods by which that
policy should bo made operative, nouo of ito
beneuts hnve us jet bten leaped.
In fulttlluieiil of whui 1 deem my constitu
tional duty, but with little hope that I fun
make valuable contribution to this rexod
question, I shall proceed to intimate briefly
my own views in relation to it. Upon
the showing of our financial condition nt the
closo of the last fiscal year I felt Justified in
recommending to Congress the abolition of
internal revenue taxes except mooe upon
tobacco In its various forms and upon d.a-'
tilled spirits nnd fermented liquors, and
except also mo special tax upon me
manufacturers of and dealers In such nr.
tides. I venture now to suggest that, unless
it shall be ascartainert that the proba
ble expenditures of the government for
tho coming year hso been underestimated,
nil internal taxes save iuoe wnicn reinie to
distilled plrila can bo piudently Abrogated,
Such a course, if ncconipanled by n simplifi
cation of tho machinery of oollectloti.wliicli
would then bo easy of accomplishment,
might reasonably bo exacted to result in di
mini.shlng tho cost of such collection by r.t
least two millions and a half of dollars, and
In the retirement from office of from 1,500 to
2,000 persons. Tho system of exciso duties
his never eominciided lbelf lo tho f nvor of the
American people, and has noverbsen resorted
to except for supplying dolleiencies in tho
treasury, when by reason of special exi
gencies, tho duties on imports have proved
innd.Hiunto for tho needs of the government.
The sentiment of tho country donbtltss de.
niands that tho presont excise tar shall bo
nbolisheJ as soon us such a course can
safely be pursued. It scorns to nc, how
ever, for various reasons, so (sweeping n
measure ns the total abolition of Internal
taxes would, for the piesont, lis an unwise
step. Two of these reaso.is aro deserving of
special mention. First, it is by no means
clear that oven if the existing sstem of du
ties on impuits is continued without modifi
cation, thoso duties nlono will yield sufficient
rev cuue f or nl 1 tho needs of tho government. It
it estimated that $100,000,000 will ba required
for pensions during tho coming scar, nnd
it may well bo doubted wheiher the max
imam nituunl demand for Hint object hss
jet been reached. Uncertainty upon this
queslion would alone justify, in my judg
ment, the retention for the present of that
portion of tho nvstem of internal revenue
which is l?nst objoctionnblo to tho people.
Second, a total abolition of oxcise taxes
would almost inevitably prove a serious if
not an insurmountable obstacle to a thor
ough revision of tho tariff and to any con
siderable leduction in import duties. Tho
prevent tariff sjsteni is iu mnny respects
unjust. It makes unequal distributions both
of its burdens and its benefits. This fact was
practically reco;ml.ed by n majoiity of each
house of Congees in the pa'sasjo of the net
creating tho tariff commission. The report
of that commission will be placed before you
nt the beginning of tbissession nnd will. I
trust, afford j ou such information as to tho
condition nnd prospects of the various com
mercial, agricultural, manufacturing, min
ing and other interests of tlio country, and
contain such suggestions for statutory re
vision will practically aid your action upon
tills important subject.
Tho rovenue from customs for tho fiscal
year ended June !K). 1879. amounted to $137,-
000,000. It has in tho three succeeding j ears
reached Urst.SIrO.UOU.UOO, then 198.uoj.(HK),
and liuallv. as has been nlieadvstated. ES220.-
000,000. 'iho income from this source for
the fiscal j o.ir which will end on Juno 30,
1833. will doubtless bo considerably in ex.
ces3of tho slim last mentioned. If tho tax
on domestic spirits is to bo retained it is
plain, therefore, that largo reductions from
the customs revenue are eiiuroiy loasiuie.
While recommending this reduction,
I am far from advising tho
abandonment of the policy of sodiscr.inmnt
ing iu tho adjustment of detidls as to afford
aid uud protection to domestic labor. But
tho present system should bo so revised ns to
equalize the public burden among all classes
nud occupations, and bung it into closer
harmony with tlio present needs ot industry.
Without entering into minute detail, which
under present circumstances is nuito unnec
essary, I recommend mi enlargement of the
free list fo as to include within it thu numer
ous articles which yield incousiderablo levo
nue; n simplitleulion of tho complex and
inconsistent schedule of duties upon cer
tain manufactures, particularly thoso of
cotton, iron and steel; nnd a sub.-.tnntiiil re
duction of the duties upon thoso articles, nud
upon sugar, mola'scs, silk, wool nnd woolen
goods. If a general lovision of the tauff
shall bo found to bo impracticable at this
bession, I express tho hopo that at least sonio
of tho more coir-ptcpous inequalities of tho
present law may bo corrected before jour
linal adjournment. One of them is specially
referred to by tho secretary, in view of a re
cent decision of tho fiinremo court. Tho
necessity of amending tlio law by which thu
Dutch standard of color is adopted us tlio
test of tho saccharine strength of sugars is
too obvious to requiio comment.
TUB WAIl I)i:PAllTMENT.
From tho report of iho secretary of war it
appears that tlio only outbreaks of finliaus
during tlio past jear occurred in Arizona
and in tho niuthwesloni part of New Mex
ico. They were promptly quullod, and tho
quiet which has prevailed in -all other parts
of the country has permitted such an addi
tion to bu made to the military lono
in the region endangered by the Apaelns
that there is little reason to npi rohend
troublo iu tho future. Thoso parts of
tho sea clary's report which reluto to
onrseacoast defenses and their armament
Buggest tho gravest rotleclions. Our uxistin
fortifications ate notoriously inadequate to
tho defense of the great hatbots and cities
for wlioso protection they wcro built. 'I ho
question of providing an armament suited
to our present necessities lias been tho bub-
jeet of consideration by a board, whoso re
port was transmitted to Congress at tho last
session. Pendiu,.' tho comideratiim of
that report, tho war department has
taken no steps for thu inunufacturo
or conversion of nny heavy can
lion; but tlio seciomry expresses tho hope
that authority mid menus to bej;in that im
portant work will soon bo provided. I invito
tlio attention of Congress to tlio piopnety of
mailing moro adequate provision tor arming
and equipping tlio militia than is afforded by
tho act of 1800. which is still upon tho stat
ute books. Thomat'er has already been tho
subject of diseussiui in tho Senate, nnd a bill
which seous to hiipply tho denciu.ici.s ot ex
istlng laws i.s now upon iu calendar.
Tho secrctaiy of war calls attention to
tno tact or an embarrassment growing out
of tno recent act ot uongtcv, making tho ro.
tirementof officers of tho army compulsory
nt the ngo of sixty-four. The act of 1878 is still
infcirce.wliicli limits to four hundred the num
ber of thoso who can bo reined iordisabilily
or upon their owiiupiilicntiou. The two nets
when coustruod together seem to forbid the
relieving, even for nbsolato incapacity, uf
officers Mho do not fall within the purview of
the latter statute, save nt such times ns there
chanco to bo less than lour hundred names
on thu retued list. There are now four bun
died nnd twenty. It is not likely that Con.
grcss intended this result, and I coiicurwith
tho secretary that tho law ought to bu
nmended.
JIIVEJlS AND IIAUUOItS.
Tho grounds that impelled mo to withhold
my blgnaturo lrom the bin entitled "An
Act nuihiug npproptinuons ior the construc
tion, repair and piesirvatiou of certain
works on livers and harbors," which
became a law near tho closo of your lat
session, prompt mo to expre-s tho hope
that no similar measure will bo deemed
necessary during tlio present fes-dou of
Congiess. Indeed, such a measure would
now bo open to a serious objection in ad
dition to that which was lately urged upon
your attention, 1 am informed by th.i
secretary of wnr that tho greater portion
of t Hu sum appropriated for the various
items specified in that act remains un
expended Of tho new works which it
authorized oxj enses have been incuired upon
two only, for which the total appropriation
was 210,(HK), Tho present nvailablo bid
unto is disclosed by tho following table ;
Appropriation by act of August
2, 1882 18,738,873 00
Appropriation by act of Juno
19, ise. , , . . io,uw w
Amuoprintiou for payments to
Ends
801,000 00
Unexpended balance of former
appropriations 4,733,203 00
Total ?23,""1,13S" 00
Less amount drawn from treas.
nry bo'.wecn July 1, 1882, and
November 30, 1882 0,050,191 00
Total 017,731,911 00
I1EMEMES TO fEEVENT EXTBAVAC1ANCE.
It Is nnimrenl bv this othlblt that so far
as concerns most of tho items to which tne
act of August 2, 1882,iclntes. there can be no
need of furthor appropriations until after
tho closo of the present session. If, how
ever, any action should, seem to beliccossary
in respect to particular objects It will bo en
tirely leasiblo to provide for those objects by
appropriate legislation. It is possible, for
example, that n delay until the assembling
of tlio next Congress to make additional
provision for the Mississippi river Improve-
inents might be nttclided with terlous con
sequences. If such should appear to bo the
case, a just bin relating totnatsuujectwouiu
command my approval.
This leads mo to offer a suggestion, which
I trust will rommond ilsclf to tho widom of
Congress. Is it not ndvlsnblo that grants of
considerable sums of money for dlverso and
independent schemes of internal im
provement should be made tho subjects of
separate nnd distinct loglslntlvoeiiaclinonti?
it will scarcely no gainsaid, oven by moss
who favor tho most liberal expenditures for
such purposes as aro sought lo bo ncconi
plished by what is commonly called the
lllver and Harbor bill, that tho practice
of grouping iu Buch n bill appro
priations for a great diversity of
objucts, widoly separated cither in
their nntuto or in the locality with which
they aro concerned, or in both, isoiio wnicu
is much to bo deprecated unless it is irrc-
medinble. It inevitably tends to secure the
success of the bill as a whole, though many
of the items, if separalely considered, could
scarcely fail of rejection. By the adoption
of tho course I Iiavo recommended, every
member of Congress, whenever opportunity
should nriso for giving his infiuenco nnd
voto lor meritorious appropriations, would
bo enabled so lo do without being called
upon lo sanction others undeserving
IUS UtJJrUYIllt 3U IIISO YVUU1U U1U
Executive bo afforded thereby a full
opportunity to exere.so his constitutional
prerogative ot opposing whatever appropria
tions seeuied to him objecliounble, without
imperiling tho success of others which com
nieuil themselves to his judgment. It may
bo urged, in opposition to these suggestions,
that tlio number ot works ot internal lm
biovcmcnt which aro iustlv entitled to gov
ernmental aid is so great as to render im
practicable separate appropriation bins
therefor, or even for such comparatively
limited number ns make disposition of
largo sums of money. This objection may
be well founded, and whether it bo or not,
tho ndvantagoj which would bo likely
lo ensuo from tho adoption of tho courro I
have recommended may perhaps no more
effectually attained by another, which I re
spectfully submit to Congress as on alter
native proposition, it is provided by the
constitutions of fourteen of our States that
the Executive may disapprove any item or
items of a bill appiopriatiug money where
upon tlio part of tho bill ap
pioved shall bo law and tho part
disapproved shall lail to become law
unless repassed necording to tho pro
visions prescribed .for the pa'sago of
bills over tho veto ot tho Executive. Tho
States wherein some such provision ns tho
foregoing is n part of tho fundamental law
nro Alabama, California, Colorado. Florida,
Georgia. I-ioin.siniiu. Minnesota. Missouri.
NeUraskn, Now Jersey, New York, Penn
sylvania. Texas ami West Virginia. 1 com
mend to your careful consideration tho
iiue.stion whether an amendment of tho
Federal Constitution iu the particular indi
cated would not nffoid the best remedy for
what is often u grave embarrassment, both
to members of Congress nud to the Execu
tive, uud is sometimes a serious public mis
chief.
TUB NAVY,
The report of the secietnrv of the navy
status the movements of the various Found-
rons during tlio year in homo and foieign
waters, where our officers and seamen, with
such ships as wo possess, havo continued to
illustrate tho high character and excellent
disciplino of the naval organization. On the
21-st of December, 1881, information was re
ceived that tho exploring steamer Jeanuctto
hod been crushed and nbandoitcd in the Aictio
ocean. Tho ol leers and crew, alter a journey
over Ihe ice, embarked in three boats for tho
coast of hibena. Uno ot tho parties, under
tho command of Chief Engineer Ueorgovv,
Melville, reached tho land, and, lnlliu:
with native", was saved. Another under
Tiicutrnnnt-Conimander Do Long, lauded in
n barren region, near tho mouth of the Lena
rivet. After six weeks had elapsed nil
but two ot tho number had died from
fatigue nnd starvation. No tidings Iiavo
iiceti received from tho party in tlio
third boat, under command of Lieutenant
Chipp, but a long and faultless investign
tli n leaves little doubt that nil its mem
bers p r.s'icd at sou As a sight tribute
to their heroism, I giio in this communica
tion the names ot tlu gallant men who
sncrillcid their livis on this expedition:
Eiculenant-Commandor Giorgo W. Do
Eong, Surgton James M. Ambler,
Jerome J. Collins, liana Unlmor Eiichsen,
Htinrich H. Kaacko, Georgo AV. Boyd,
Waller Eco, Adolph Dressier, Carl A.
Goit7, Nelse Iver.-on, tho cook Ah Sam,
and the Indian Alexy. Tho officers and men
in tho missing boat were I-iieutenant Charles
W. Chipp, Commanding William Duubur,
Alfred Sweetman, Walter oharvell, Albert C.
Kuehne, Edward Star, Henry D. Wiiueunud
Ptjter E. Johnson. Lieut. Giles B. Hiuberiind
Master William 11. Kcliuutzo aro now bring
ing homo tho remains of Lieutenant Do
Long nud his comrades.
In pursuance of the directions of Congress
tho liodgers, fitted out for tlio relief of Ihe
Jcauiiotte iu accordance with tho net of
Congress of Marcl 3, Ml, sailed from Sau
Francisco Juno 10, under tlio command of
Lieutenant ltobert M. Berry. On November
1.0 pjio was accidentally ilestrojed by lire
vvlulo in winter quarters in St. Luwrenco
Bay, but the o'licevs and ciovv succeeded iu
escaping lo tl.o shore. Lieutenant Berry
nnd one of his officers, nfier
making n search for the Jemmetlo along
tho coast of Siberia, fell in with Chief En
gineer Melville's party nnd returned bono
by way of Europe. Tlio other officers nud
tho crew of tho liodgers wcro brought from
St. Lawrence bay by the whaling steamer
North Star. Master Charles F. Putnam, who
had been pi iced in charge of a depot of sup
plies nt Cu u Scrdze, leturning to his post
lrom St. Lawicncu bay iicio-s the ico in a
blindingbliow-storm, wus carried out to sea
and lost, notwithstanding ull efforts to les
cuo him.
THE AVAILABLE NAVAL 10UCK.
It npVenrh by the sctritarv's icpoit Hint
tho nvailablo naval force of tho United
States consists of thirty-seven cruisers,
fourteen siuglu-tniTeted monitors built dur
ing the rebellion, u lnr"o number of smooth,
boio guns nml Parrot lilies, nud eighty-seven
rilled c union. The cruising vuisels should
lie gradually replaced by irun ur sieel
ships, tho monitors by modern ar
mored vessels, and tho armament by
high-power rilled guns. The recon
struction of our navy, which was recom
mended in my last inessntie, was begun by
emigres s authorizing in its recent net tho
construction of two largo miarmored steel
vessels of the character recommended by
tho Into naval advisory bcrrd, uud subject
to tho llnal approval of a new advisory board
t jbo organled as piovidul by Hint act. I
call jour attention to tho recomuiendatioii of
tho secretary and the board that uutlu r.ty bo
given to coiiiiiuci two moro ct itinera ot
smaller dimensions and ono Ileet dispatch
vessel, uud that appropriations be made for
high-power rilled cannon for the torpedo
service and for the harbor defenses. '
UKCOMMBNUA1IOXS Or TIIU NVW DEVAnTMENT.
Pending tho oousldeiatiou by Congiess of
tho policy to bo hereafter adopted in con
ducting tho el At lurge navy vtird and thoir
expensive- establishments, Iho secretary ad
vocated reducing oxpe alituies therefor to
the lowest poj.nblu amount. For the urposu
of affording tho officers nnd seamen of tho
navy opportunities for cxerciso nnd dis
cipline in their profession, under npiroprlate
control nnd dlroction, the secretary advises
that the lighthouse service and const survey
bo transferred, ns now organized, from tlio
treasury to tho navy department; and he also
suggests, for the reasons which he assign",
that n similar transfer mny wisely bo lundo
of tho cruising rovenue vessels.
OUlt MFllCIUNr ItAntNE.
Tho secretary forcibly depicts tho lllllmnlo
connection and interdependence" of Iho navy
nnd the commercial marine, and invites nt
tentlon to tho continued decadence of the
latter and the corresponding transfer of our
growing commerce to foteijn bottoms. This
subject is ono of tho utmost importance to
Iho national welfare. Methods of reviving
American s i p.binlding. and of restoring tho
United States flac ill tho ocean carrying-
trade, shoujd rt ceiv o the immediate attention
of Congress. We have mechanical skill nnd
abundant mnlcrinl for the mauufneturo of
modern iron steamships in fair competition
with our commercial rivals. Our disadvan
tage in building ships is the greater cost of
labor and in sailing thein, higher tixcs, nnd
greater interest on capital, whilo the ocean
hlghwaj s nro already monopolized by our f or
midablu competitors. These obstacles should
some way bo overcome, and for onr rapid
communication with foreign lands, we
should not continue to depend wholly upon
vessels built In the yards of other countries,
nnd sailing under foreign flags. With no
United States steamers on tho principal
ocean lines or in any foieign porta, our fa
cilities for extending our commerce nro
reatlv restricted, while the nntions which
build mid sail the ships nnd carry tho mails
and passengers obtain thereby conspicuous
advantages in increasing their trade.
THE l'OSTOlftCE DErAllTMENT.
Tho report of the postmnsler-goneral gives
evidence of tho satisfactory condiliou of
that department, und contains mnny val-
uabio anta and acouipanying suggestions
which cannot fail to bo of lnleiest. Tho
information which it affords, that tho
recoipts for tho llseal jear havo ex
ceeded the expendltuies, must bo very
gratifying to Congress and to tlio
peopto ot the country, as mailers
winch may fairly claim particular at
tention, 1 refer you to bis observutioiis in
leforeuce to tho advisability of changing the
present basis for llxing salnrios and allow
ances, of extonding the luoncj-oidersjstein,
and of enlarging the functions of tho postal
establishment so ns to put under lis control
the teleprnph system of tho country, though
from this Inst and most important lecom
niendatiou I must withhold, my concurrence.
THE KEPl'CTION Of LETTER T-OSTAGE.
At the Inst session of Congress several bills
wcro introduced into tho House of Kepro
peutativos for the reduction of letter postage
to tlio rate of two cents per half ounce. I
iiavo given much study nnd reflection to this
subject, and nm thoroughly persuaded that
such a leduction would be lor tho best inter
ests of tho public. It lias been the policy of
the government trom its inundation to tio
fray ns far us possiblo tho expenses of
carrying the mails by a direct tnx
la the form of postage. It has never
been claimed, however, that this ser
vico ought to bo productive of n net revenue.
As has been stated already, tho report of tho
postmaster-general shows that there isnow n
very considerable surplus in bis department,
and tiiat henceforth tlio receipts are likely to
increase nt a imirh greater ratio than tho
necessary expenditures. Unless somo
change is mado in the existing laws, tho
profits of tho postal servico will in n very few
years swell tho revenues of the government
many millions ot dollars, ino time .soeins
auspicious, therefore, for eoiau reduction in
the rates of postage.
In vv hat shall that reduction consist ? A re
view of tiie legislation which has been bad
upon this subject during tho Inst thirty years
discloses that domestic letters constitute tlio
only class of mail mnlter which has never
been favored by a substantial reduction of
rates. I am convinced that the burden of
maintaining tlio service falls most unequally
upon that class, and that moro than any
other it is entitled to present relief. That
Biich lelief may bo extended without detri
ment (o oilier public interests will be dis
covered upon reviewing tho results of former
reductions.. Immediately prior to tho act of
1V"I5 the postage upon a letter composed of n
single sheet was as follows: If com eyed
thirty miles or less, six cents; between
thirty uud eighty miles, ten cents; between
eighty unil 150 miles, twelvo nnd oiio-hnlf:
between 150 and 400 miles, cighteon and
.hrce-quarters; over 400 miles, twenty-live.
J.'y tlio act of 1815 the postage upon a einglo
letter couvejed for any distance under 300
lies was llxud nt five cents, and for any
1 1 nt r dist.uico at ten cents. By tho net of
iS'.'d. it was piovided that a Binglo letter, if
prepaid, should be carried any distance not
exceeding 3,000 miles tor thrco cents, nud
any greater distance for Bix cents. It will be
noticed that both of these reductions were
if a radical character, and relatively quite
important ns that which is now proposed.
i,i each case theio ensued a temporary loss
of levenuo, but n sudden nnd largo ihllnx of
business, which substantially repaired that
loss within three jeais. Unless the expe
rience of past legislation in this country and
eWewhero goes for naught, it may be
safely predicted that the stimulus of fittj- per
centum reduction iu the tax for carriage
would ot onco inciease tlio number of let
ters consigned to tho mails. Tlio advan
tages of secresy would lead to a very general
substitution of sealod packets for postal
cards and open circulars, and m divors othor
ways tho volume of lirst-clnss mntter would
be enormou ly augmented. Such increase
amounted in England in tho first year after
tho adoption of penny postage to moro than
125 per cent. As a result of careful estimates,
the details of which cannot hero bo set out, I
linvo become convinced that the deficiency
for the first j'Car after tho proposed reduction
would not exceed sev on per cent, of tho ex
penditures, or i?3,000,00O, whilo tlio deficien
cy utter tlio reduction of IKir, was moro than
fourteon per cent., und after that of 1851
wns twenty-seven per cent. Another inter
e, ting comparison is afforded by statistics
furnished mo by tl.o po'tolllce department.
The act of 1815 wns passed in face of tho
fact that thero existed u ditticioncy Of moro
tlmn S-30,000. That of 18.11 was encouraged
by tho Blight surplus of 132,000. iho excess
ot roveuuo in tno next usciu year is iiseiyio
bo $300,000.'
It Congiess should npprovo these, sugges
tions it umy bo deemed dosirablo to supply
to somo oxtent the deficiency which must lor
u time result by iiieioasing tho charge for
enrrjing merchandise, which is now only
fUieeu cents per pound, But, even without
such nn increase 1 um confident that the re
ceipts under tue diminished rates would
equal tho expenditures after the lapse of
three or four jeurs.
THE UErHSTJIUNT OF JUSTICE.
Tho report of thu department of justice
brings anew to jour uotiiotho necessity of
enlarging tho prc.-ent sj slrai of Federal juris
prudence, bo as effeiitualy to answer tho
requirements of the evei-increusiiig litigation
with which it is called upon to deal,
The atlorney-generiil lenevvs the sugges
tions of his predecessor, that in tho liueivsts
of justice better pioiision than the existing
iaws .ilord should bo made in cert du
judicial districts for fixing the fees of wit
nesses and jurors.
TI(K BTAll ROUTE TMAL.
Ill my messnguof December last I referred
to pending criminal proceedings growing out
of nllegi-d frauds in what Is l.uowii ns tho
star route servico of the postoflicu depart
ment, nnd advised you that I had enjoined
I i upon tho uttoiiiey-gpuenil ami if-ocinte
counsel, to wnoui me uiicrusisiiT ire govern
ment wcio iiituisted, the dntj of prose
cuting wiih thu inmost vigor ot Ihn
law ull pot-sous who might bo found
chnrgeablo with thoo offenses, A trial of ono
of these cases has since occuriod, Ii occu
pied for many weeks the ntloution of tho su
prome court of thodistru t, nnd was conducted
with great zeal nud ability. It icsulted ma
disagreement of the Jury, but the cause ms
been again placed upon tho calendar and
will shortly bu e-triod. If nny guilty pur.
sous shall finally osoupo punishment lor
their offenses it will not bo for luck of dill.