SUPPLEMENT.
THE'PRESIDENT'S MESSAGE.
'-5b the Congress of the Untied States:
' Your assemlillTUT la r-im.ii
w kiwMuvu 1J i M.'lltU Jt I
ipubllo bereavement, caused by tho recent and
feudden death of Thomas A. Hendricks, Vfco
iTrcsielcnt xjf tho United States. His dis
tinguished public services, his complete. Integ
rity and devotion to every duty, and Ms iior
sonal virUies will flnfl honorablo record in I1I3
country1! history.
Amplo nnd repeated proofs of tho esteem
and confldenco In -which ho was held by his
fellow-countrymen xvero manifested by his
election to ofllces of tho most important trust
ond highest dignity; nnd at length, full of
.years and honors, ho has been laid at rest
mld universal sorrow and benediction.
Tho constitution which Tequlres those
chosen to legislate for tho peoplo to annually
mootinthodischargo of thoir solemn trust
Jilso requires tho President to givo to Con
.gress Information of tho state of tho Union,
nd recommend to their consideration such
aneasurcs as ho 6hall deem necessary and ox
Todient. At tho threshold of a compliance
with theso constitutional directions, it is well
for us to lienr in mind that our usefulness to
tho people's Interests will bo promoted by a
constant appreciation of tho scope and char
acter of our respective duties as they relate
to Federal legislation. WTillo tho Executive
mayrocommend such measures as ho shall
deem expedient, tho responsibility for legisla
tive action mut and should rest upon those
selected by tho pooplo to make their laws.
Contemplation of tho gravo nnd responsible
functions assigned to tho respective branches
of tho government under tho Constitution
will disclose tho partitions of power between
our respective departments nnd their neces
sary independence, nnd nlso tho need for tho
exerciso of nil tho power intrusted to each, in
that spirit of comity nnd co-operation which
is essential to the proper fulfilment of tho pa
J '0 obligations which rest upon us as
faithful servants of tho people. Tho jealous
watchfulness of onr constituencies, great nnd
small, supplements their suffrage, nnd be
fore tho tribunal they establish, even- pub
lic servant should bo Judged.
It Is gratifying to aunounco that tho rela
tions of the. United States with nil foreign
powers contiuuo to bo friendly. Our position
after nearly a century of successful constitu
tional government, maintenance of good faith
in nil our engagements, tho nvoidnuco of com
plications with other uatiotis.ond our consist
ent nnd amicable nttitudo toward tho stronir
nnd weak alike, furnish proof of a political
disposition which renders professions of good
w unnecessary. There aro no questions of
mint" rH?n ' "Uy forcisu sovcru-
Tlin OUTBREAK AT PANAMA.
Early in March last war broke out in Cen
tral America, caused by tho nttempt of Ouato
mnla to consolidate tho several States into a
singlo government. In theso contests be
tween our ncighl wring states tho United
States forlwro to interfere nctivelv, but lent
tho aid of their friendly offices in deprecation
of war and to promote pence and concord
among tho liolligerents, mid by such counsel
contributed imjwrtnntly to tho restoration of
tranquillity in tliat locality.
Emergencies growing cut of civil war in
tho United States of Colombia demanded of
the government at tho beginning of tills ad
ministration the employment of armed force
to fulfil its gunrnntoes under tho thlity-flfth
firticlo of tho treaty of lRKi, in order to keep
the transit open across tho Isthmus of Tana
ma. Desirous of exercising only tho pow ers
expressly reserved to us by tho treaty, nnd
mindful of the right of Colombia, tho forces
sent to tho Isthmus were Instructed to confino
their action to "positively and efficaciously"
preventing tho transit and its accessories
from being "Interrupted or embarrassed."
Tho execution of this delicate and responsi
ble task necessarily inx olved police control
where the local authority was temporarily
powerless.lmt always in aid of tlio sovereignty
of Colombia. Tho prompt and successful ful
filment of its duty by this government was
highly appreciated by tho government of Co
lombia, and has been followed by expressions
of its satisfaction. High praiso is duo to the
oflleors and men engaged in this service. Tho
restoration of peaco on tho isthmus by tho re
establishment of the constituted government
thero being accomplished, tho forces of tho
United States wero withdraw n.
Tending theso occurrences n question of
much importanco was presented by decrees of
tho Colombian government, proclaiming tho
closure of certain port then in the hands of
tho insurgents nnd declaring vessels held by
Uo revolutionists to bo piratical and liable to
capture by any power. To neither of these
propositions could the United States assent.
An effective closure of ports not inthojios.
session of the government, but held by hos
tile partisans could not bo recognized;
neither could the vessels of Insurgents
against tho legitimate sovereignty lw
deemed hostcs humanl generis within tho pre
cepts of international law, whatever might
bo tho definition and penalty of their nets
under tho municipal law of tho State against
whose authority they wero in revolt. Tho
denial by this government of tho Colombian
projiositlons did not, however, imply tho ad
mission of a lielligereut status on the part of
tho insurgents. The Colombian government
has expressed its willingness to negotiate con
ventions for tho adjustment bv arbitration of
claims by foreign citizens arising out of the
destruction of the city of Asplnwall by the
insurrectionary forces.
Tlin NICAHAOUA CANAL.
The Interest of tho United States in a prac
tical transit for ships across tho strip of land
separating- tho Atlantic from the Pacific
lias been repentedlv manifested during the
last half century. My immediate predecessor
caused to lio negotiated with Nicaragua a
treaty for the construction, by and nt tho solo
cost of the United States, of a canal through
Kicaraguan territory, and laid it liefnro the
Beuate. Pending the action of that lsidy
thereon, I withdrew' the treaty for ie-exam-inatlou.
Attentive consideration of its pro
visions leads 1110 to withhold troni re-sub-mission
to the Senate.
Maintaining, as I do. tho tenets of a line of
precedents from "Washington's day, which
proscrllw entuugllng alliances with foreign
states, I do not f uxor n iwllcy of acquisition
of new and distant territory, or the. iirnr
poration of remote interests with our ow 11,
Tho laws of progress are vital 1111 1 organic,
ami wo must lw conscious of that Irresistible
tide of commercial expulsion which, as the
concomitant of our active civilization, day
by day is lsoing urged onward by tlio-o in
creasing facilities of production. traiisioita
tion, nnd communication to which steam and
electricity have given birth: but our duty in
tho present Instructs in to address ciirsclw
Governments. Therefore I am unable to re
commend propositions involving lnuninsiuin
privileges of ownership or right outside o'
our territory, "hen ccuplod with nlnulu 0
mutiny 10 uiu tit-riujimi-ii. ui iih-
vast resources of the great niva committal
10 our cuarge, nun 10 ma ciiuivuuuu 01 inr
arts of peace within our Iwrdcr. though
Jealously alert in preventing the American
liemisphiro from lieing Involved in the iiliti-
1 . ' l.l 1 ...... ,.ll,...l,,, nf .l.'.tnnt
and unlimited engagements to defend the
tentorial integrity, of tho stnto where such
lAtorests lie. Whilo tho general project of
connecting tho two oceans by means of a
W..H.1 1, iu no encouraged, 1 am of opinion
that any schemo to that end to he considered
with favor should bo free from tho features
alluded to.
Tho Tehinntejicc route Is declared, by en
gineers of tho highest repute and by com
Jietent scientists, to nflor.1 an entirely prac
ticable transit for vessels and cnrgiv., by
mentis of n shliwailway, from tho Atlantic to
tho 1 aciflc, Tho obvious odvantagoof such n
route, if feasible, over others moru remote
from tho nxlal lines of traffic between Kurotw
nnd the Pnciilc. and particularly lietwccn the
valley of tho Mississippi and tho western coast
of Jiorth and South America, nre descrying
of consideration.
Whatever highway may lw constructed
across tho barriei- dividing tho two greatest
mnritlmo areas of tho world must lw for tho
world's lieneilt, a trust for mankind, to lie re
moved from tho chanco of a domination by
any sluglo power, nor becomo a point of invi
tation for hostilities or n prize for warliko
ambition. An engagement combining tho
construction, ownership nnd operation of such
work by this government, with an offensive
and defcuslvo nllianco for its protection, with
tho foreign stnto xvhosoresiwn.sibllitir.sand
lights wo would share, is. in my judgment,
inconsistent w Ith such dedication to universal
nnd neutral use, ami would, moreover, entail
measures for its realization lieyond tho scope
of our national polity or present means.
Tho laiso of years has abundantly con
firmed tho wisdom nnd foresight of those
earlier administrations which, lonir before tho
conditions of mnritlmo intercourse were
changed and enlarged bv tho progress of tho
age, proclaimed tho vital need of iuteroccaulo
transit across tho American Isthmus ami con
secrated it in ndvnnco to the common uso of
mankind by their iiositlvo declarations and
through tho format obligation of treaties.
Toward such realization tho efforts of my ad
ministration will bo applied, ever bearing- in
mind tho principles on which it must rest,
and which wero declared in 110 uncertain
tones by Mr. Cass, who, whilo secretary of
state, in IViS. nminnnrvvl ISiit. XVlinS. tlin
United States want iu Central America, next
to tho happiness of its people, is tho security
ami neutrality of tho interoceanio routes
which lead through it."
THE CHINESE QUESTION.
In tho application of tho acts lately passed
to execute tho treaty of 1SS0, restrictive of
tho immigration of Chineso lnliorers into tho
Unllod States, individual cases of hardship
havo occurred beyond tho power of tho Exec
utive to remedy, and calling for judicial de
termination. Tho condition of tho Chineso question in
tho Western States ami Territories is, despite
tills restrictivo legislation, far from be
ing satisfactory. Tho recent outbreak
in Wyoming Territory, where numbers
of inoffeuding Chinamen, indisputably
within tho protection of tho treaties
and tho law, wero murdered by a mob, nnd
tho still more recent threatened outbreak of
tho samo character in Washington Territory,
nro fresh iu tho mlnils of nil, and thero is ap
prehension lest tho bitterness of feeling
ngalnst tho Mongolian rnco on tho Pacific
slopo may find vent In similar lawless demon
strations. AM tho power of this government
should lw exerted to maintain tho nmplest
good faith toward China in the treatment of
those men, and tho inllexiblo sternness of tho
law in bringing tho wrong-doors to justico
should lw insisted upon.
Every effort has bmimade by this gov
ernment to prevent theso violent outbreaks
nnd to nid tho representatives of China in
their investigation of theso outrages: and it is
but iust to finv that tlipv nro trnrwililn tn 11m
lawlessness of men not citizens of tho United
1 States engaged in competition w ith Chinoso
laborers.
Itaco prejudico is tho chief factor in origi
nating theso disturbances, audit exists in a
largo part of our domain, jeoiinrdlzing'our do
mestic peaco and tho good relationship wo
strivo to maintain with China.
Tho admitted right of a government to
prevent tho influx of elements hostile to it
internal penco anil socurity may uot lie ques
tioned, cveu where thero is no treaty stipula
tion on tho subject. That tho exclusion of
Chinese labor is demanded in other countries
where liko conditions prevail is strongly evi
denced in tho Dominion of Canada, where
Chineso immigration is now regulated by
laws moro exclusive than our own. If ox
isting laws aro inadequate to compass tho end
in view I shall lw prepared to give earnest
consideration to any further remedial meas
ures, within tho treaty limits, which tho wis
dom of Congress may doviso.
I regret to say that tho restrictions upon
tho liupoi tatlon of our pork into Franco con
tinue; notwithstanding the abundant demon
stration of tiio absence of sanitary danger in
Its use; but I entertain strong hopes that with
n lietter understanding of tho matter, this
oxntlous prohibition will bo removed. It
would be pleasing to bo nblo to say as much
with respect to Germany, Austria and other
countries, w hero such food-products nre abso
lutely excluded, without present prosjiect of
reasonable clmuge.
The interpretation of our existlug treaties
of naturalization by Germany during thcimst
year has attracted attention by reason of an
apparent tendency on the part of tho imperial
government to extend tho scope of tho resi
dential restrictions to which returning natu
ralized citizens of German origin nre assorted
to bo liable under the law s of tho empire. Tho
temperate and just attitude taken by tills gov
ernment with regard to this class of questions
will doubtless lead to a satisfactory under
standing. The dispute of Germany nnd Spain rela
tlvo to tho domination of tho Carolluo Islands
has attract! the attention of this govern
ment, by reason of extensive interests of
American citizens having grown up iu those
parts during tho jmst thirty years, and lie
cause the question of ownership involves jur
isdiction of matters affecting tho status of
our citizens under civil and criminal law.
AVhilst standing wholly aloof from proprie
tary issue raised between powers to both of
which tho United State are friendly, tho
government exjiects that nothing in tho pi es
ent contention shall unfavorably affect our
citizens carrying on n jieaceful commerce or
thero domiciled, and has so informed the
governments nf Sjmlu and Germany.
An international conference to consider tho
means of arresting tho spread of cholera and
other epidemic diseases was heldnt Itome in
May last, nnd adjourned to meetngnlu on fur
ther notice. An exjiert delegate on In-half of
the United States has attended its sessions
and will submit n rexirt.
Our relations with Mexico cnutiimo tolw
most cordial, as Wilt those of neighbor lie
tween wlnm tho stiongest tlesof friendship
nnd commercial intimacy exist, as tho natural
and grow ng cotisoiiieiiii" nf our similarity of
institutions and geographical propinquity.
The ulivatlou of the isiundry liuo ln-tween
the United r'tnto and Mexljo, westward on
the liln lliande, under tho convention of July
Sll, ls-.', lias Ikvii unavoidably delayed; but I
apprehend 110 dllilrulty in tecuriug a pro
loiunilou of the i'i iod forits accomplishment.
The lately (o-i'ludel eonim-ivial treaty
with Mexico still awaits the stipulated legls
l.itiou to carry Its provisions ititu effect, for
which on" year' addition il tlmo has lieon
secured bv a suiiileineutai y article signed if
February" hist mil siu nitidis! on lioth sides.
With the giadual iwnvery of Peru lion
the effe -U of h.'l' lite dUistrmw coiilli,-t w.t'i
( 'hilt nil 1 with tli" i"stirntiou of ci II author
ity in that t r oted country, it i
hoiiod tint iwii'Iiiik war cliilnw of our citi
u will lie odjiutwl. In conformity with
rjtili ution given by tho govorwtwut of
Peru, tho existing treaties of coimnerco nnd
extradition lietween tho United States and
that country will terminate March ill, lSbfl.
Our good relationship with llussln contin
ues. An officer of tho nnvy, detailed for tho
pur-mso, is now on bis way to Silieria, liear
Ing tho testimonials voted by Congress to
those who generously succored tho survivors
of tho unfortunate Jenimette expedition
It is gratifying to ndvert to tho cordiality
of our intercourse, with Smin. Tho long
pending claim of tho owners of tho ship Ma
sonic, for loss suffered through tho admitted
dereliction of tho Spanish authorities in tho
Phillppino islands, 1ms been ndjustcd by ai lit
tration, and an indemnity awarded. Tho
principal of arbitration in such cases, to
w hlcli tho United States havo long and con
sistently adhered, thus receives a fresh nnd
gratifying confirmation. Other questions
with Spain have liecn dis'iosed of or are un
der diplomatic consideration with a view to
just and honorablo settlement.
CITIZENSHIP AND NATURALIZATION.
The Inadequacy of existing legislation touch
ing citizenship nnd naturalization demands
your consideration. Whilo recogulzlng tho
right of expatriation, no statutory provision
exists providing menus for 1 enouncing citizen
ship by nn American citizen, untive-lwrn, or
naturalized, uor for terminating nnd vncntlng
1111 improper acquisition of citizenship. Even
a fraudulent decree of naturnlizntion can
not now bo cancelled. Tho privilege and
frauchtso of American citizenship should
lw granted with care, and extended
to tlioso only who Intend in good
faith to nssume'its duties nnd resnonsibllities
I when attaining its privileges aud licnelMs;
it should lw withheld from those who merely
: go through tho forms of naturalization with
I tho intent of escaping the duties of their or
I iginal nllezlaneo without taklns upon them-
1 selves those of their new status, or w ho may
acquire the rights of American citizenship for
no other than n hostllo purpose ngalnst their
' original governments. Theso ovils havo had
I many llagrant illustrations. I regard witli
j favor the suggestion put fortli by oun of my
1 predecessors that provisions lw made for a
central bureau of record of tho decrees of
1 naturalization granted by tho various court
I throughout the United States now Invested
witn tuat power.
Tho rights which spring from domicilo in
tho United States, especially when coupled
with a declaration of intention to become n
citizen, nre worthy of definition by statute.
The stranger coming hither with intent to re
main establishing his residence In our midst,
contributing to tho general welfare, and by
his involuntary act, declaring his purjiose to
assuino tho responsibilities of citizen
ship, thereby gains nn inchoate status
which legislation may properly define. Tho
laws of certain States and Tcrritoriis ndmlt
n domiciled alien to tho local franchise, con
ferring on him tho rights of citizenship to a
degroo which places him in tho anomalous po
sition of being a citizen of a State and yet
not of the Unit! States within tho nun-low
of Federal and international law. It is im
portant within tho scopo of national legisla
tion to define tlds right of alien domicilo as
distinguished from Federal naturalization.
COMMERCIAL TREATIES.
Tho commercial relations of tho United
. States with their immediate neighbors and
with important areas of tralllo near our
! shores suggest especially liberal intercourse
between them and us. following tiio treaty
1 oflSSSwith Mexico, which rested on tho
I basis of a reciprocal exemption from customs
duties, other similar treatiesworoinitiated by
my predecessor. Recognizing tho need of
I less obstructed traflic with Cuba and Porto
1 Itico, nnd mot by the dcslro of Spain to suc
, cor languishing interest in tho Antilles, stejis
I wero taken to attain theso ends by a treaty of
I commerce. A similar trenty was afterward
j signed by tho Dominican republic. Subse
quently overtures wero niniio by nor liritan
nic Majesty's government for n liko mutual
extension of commercial intercourse with the
British West Indian and South American de
pendencies: but without result.
On tuking olllce, I w ithdrew for ro-exnml-1
nation tho treaties signed with Sjsiitt and
I Santo Domingo, then pending before tho Sen
ate. Tho result lias been to satisfy 1110 of tho
inexpediency of entering into engagements of
this character uot covering tho entire tratlic.
' These treate-s contemplated tho sui render by
I the United States of largo revenues for inadc
1 quato considerations. Upon sugars alone
duties wero surrendered to an amount
far exceeding all tho advantages
offered in exchange. Even wero
it intended to relieve our consumers, it
was evident Hint so long as tho
exemption but imrtially covered our imiior
tation, such relief would lw illusory. Toi-o-linquish
n revenue so essential seemed highly
improvident at a timo w lien new and largo
drains upou tho treasury wero contemplated.
Moreover, embarrassingquestions would lmvo
arisen under tho fnvored-nation clauses of
treaties with other nations.
As a further obiectlon. it is evident Hint
I tariff legislation by treaty diminishes that In
' dependent control over its own revenues
which is essential for the safety and welfare
of any government. Emergency calling for
I an increase of taxatiou may at any timo
I arise, and no engngenieut witli a foreign
1 mwer should exist to hamper tho nctionof
the government.
ily tho fourteenth section of tho shipping
act, npprovedJuue it), lbSi, certain ieduc
tions nnd contingeut exemptions from ton
1 lingo dues weio lunde as to vessels entering
' irts of the United States from any foreign
port in North and Central America, tho West
India Islands, the Bahamas nnd Bermudas,
Mexico, and the Isthmus as far as Aspinwull
1 nnd Panama. The governments of Belgium,
1 Denmark. Germany. Portugal, and Sweden
nnd Xorvvay havo oviertcd, under the
fnvored-nation clause in their treaties with tho
United States, a claim to liko treatment
in resjiect of vessels coming to tho Uuitssl
States from their hoinoiwits. This govern
ment, however, holds that the privileges
granted by the net aro purely geographical,
enuring to any vessel of any foreign jwwer
that may chooso to engngo In truffle between
this country and nny imrt within the defined
zone, and no warrant exist under the most
favored nation clause for tho extension of the
privileges in question to vessels sailing to this
country from jwrts outside tho limitation of
the act.
Undoubtedly tho relations of commerco
with our near neighliors. whoso territories
form so long n frontier line difficult to 1k
guarded, and w ho find Iu our country, and
equally oiler to us, natural markets, demand
tint-Inland considerate treatment. It rest
witli Congress to consider what legislative
action may increase facilities of intercourse
which contiguity makes natural and desir
able, THE DII'LOSIATIC ANP COWSfl.AH hEUVICK.
I earnestly urge that Congress recast the
appropriations for thu maintenance of tho di
plomatic mid consular service on n footing
commensurate with tho iuqiortaiice of our
national Interests, At every jsjst whore a
representative is necessary, tho salary should
Iwso graded as to permit him tollvowitli
comfort. Witli tho assignment of ade
quate salaries tho so-callisl notarial extru
oilicial fees, which our officer abroad
are now permitted to treat as iiorsouul
p-rqui'ites, should lw done away w Ith. E cry
act inquiring the certification and seal of tho
oill -er should lie taxable at schcdtllo rates,
and the fee thcrfore returned to tho treasury.
By restoring these revemiw) to tho public no
the consular nvvIco would 1 self-suptioitliig,
even witli a liberal increase of tho present
low salaries. In further prevention of abuses
a system of consular lusiwetloii should 1
Instituted.
TUB TUKA&UIIY,
The report of ,! tjcretnry of the treasury
fully exhibits tho condition of tho public
ilnaiices and of tho several branches of tho
fivemmeut connected with tho department,
lio suggestions of tho secretary relating to
tho practical operations of this Important de
partment, nnd his recommendations in the
direction of simplification and economy, ir
ticularly in tiio work of collecting customs
duties, are csjiecinlly urged upon tho atten
tion of Congress.
The ordinary receipts from all sources for
tho fiscal voar ended Juno !W, lts'i, wero
fcM,(i!l(,70(S.rS. Of this sum lM,471,m.:M
was received from customs and f 1 13,4!I8,T2."..M
from Internnl revenue. Tho total receipts, as
given above, wero ?i,829,l(1.54 less than
thoso for tho year ended Juno SO, ISM. This
diminution embraces 11 falling off of $1.1,.W.
fi.Vi.43 in tho receipts from customs and
i'.i.'ferj.llO.UT in tho receipts from internal rev
enue. Tho total ordiunry exjiondlturos of tho
government for tho fiscal year wero .200,23),
iiilVfiO, leaving a sin-plus in Iho treasury at
the closo of tho year of f ra,4(Sl,7T1.2". This
Is fl(l,li','U,s."l.a2 less than tho surplus report
ed nt tho closo of tho prox ions year.
Tho expenditures are classified as fol
lows; Vor etilt espenses fi.s2o9t311
For forpimi tntcrcotireo 6.4t;(i,C09 11
"or Indians C.BV2.4SI 03
Tor pensions 50,10J,C0T 49
For the lntlltnry, Including river nnd
harbor Improvements unci nroennls . 42.070,578 47
Tor the mivy, including cf8i'K ma
chinery and Imprmemcnts of navy
yard 10.021,078 63
For Interest nn the public debt 61,3s8,2.0 47
Kor the District of CotnmWs 3,439,050 93
For miBcellAneo-is expenditure, in
cluding public building, lighthouses
and collecting tho reunites 51,729,0X0 21
Tho amount paid on tho nubile debt durincr
I tho fiscal year ended Juno hn, 1885, xvns $43,
I H!i:t,2.'l."i,43; and thero has liceu paid since that
date and tip to Xoveinlier 1, lSSo, tho sum of
J.H,S2S, leaving the amount of tho de.bt nt
I the last-named dnto ?l,.'il4,47.,i,SfiO,47. There
xvns, however, nt that timo in tho treasury,
npplicablo to the general purposes of tho gov-
eminent, the sum of $fi,Sl,s.2l-,,:iS.
Tho total receipts for tho current fiscal
I year, ending Juno SO, l&sO, ascertained to
Octolier 1, lSSTi, and estimated for tho i-e-'
liuiinder of tho year, nro S15,0(M,00tl. Tho
j exjienilituro ascertained and estimated fortho
isnme tlmo nro $24.,0O0,00O, leaving a surplus
nt tho closo of tho year estimated nt $70,000,
00O. Tho xaluo of tho extxirts from tho United
I States to foreign countries during tho last fis
cal year xvas as lonows:
I'omeetic merchandise 1723,052,910 00
Foreign merchandise 15,50C,S09 00
1742,199.755 00
. S.477.S92 m
33,753,033 00
Gold
Silver
J734,42I,2S0 00
Some of tho principal exports, with their
x-olues nnd tho percentago they respectively
licar to tho total exportation, aro gix-cn as
follows:
Percent
Articles, Value. age.
Cotton and cotton manufac
tures 218,799,049
llrealstntls IBH.370,S21
l'mvUlons 107,382,451
Oils mineral, vegetable, and
animal 54,320,102
Tobacco and its manufac
tures 24,707,301
Wood and its manufactures.... '21,401,322
29.42
22.07
14.77
7.4S
S.41
2.95
Our imtwrts during tho year xvero as fol
low s:
Jlcrchacdlso t579,5So,o-ii 80
(iold 20,091.090 (K)
Mher ' 10,550 027 00
1022,522,370 80
Tho following nro gix-en as prominent nrti
cles of imports during tho year, xvith their
x nlnes und tho jK-rcentago they bear to tho
total importation:
Percent-
Articles. Value.
nze.
13.59
8 03
7 73
0.99
Sucar and molatscs S76,73S,7I3
CotTco 40,723.318
Wool and Its manufactures.... 44,050.42
Rill: and its manufactures 40,333,002
Chemical, dyes, drugs and med
icine 5,070,810
Iron and steel and their manu
facture 34,5C3,0S3
Flar, hemp, Jute and their man-
ufocture 32,554,874
Cotton and Its manafarturcs.. 28,152,001
5.09
4.83
mues anu SKins otner tuan lur
skins
20,550,413 8.5S
Of tho cntlro amount of duties collected 70
per cent, was collected from tho following
articles of imiwrt:
rercenlngo.
Sugar nnd molascs 29
XV ool and its manufactures 15
Silk and its manufactures 8
Iron and steel and their manufactures 7
Cotton manufactures 6
Flax, hemp, and Jute, and their manufactures.. 6
THE TAIUFF,
The fact that our revenues nro in oxcess of
tho actual needs of an economical adminis
tration of tho government justifies n reduc
tion in tho amount exacted from tho people
for its supjiort. Our goxeiuineut is but thu
menus established by tho will of a freo ltoople,
by xvlilch certain principles nre applied xihich
they haxo adopted for their benefit and pro
tection; and it is uover better administered
and its true spirit Is never better observed
than when tho lieoplo's taxation for it sup
)rt is scrupulously limited to tho actual ne
cessity of exiendlture, nnd distributed ac
cording to n just ond equitable plan.
Tho nroiKjsition xsitn which wo haxo to
deal Is tho reduction of tho revenue received
by tho government,, and indirectly jsiid by
tiio jieoplo from customs duties, Tho question
of free trade is not invohed, nor is there now
any occasion for tho general discussion of tho
wisdom or exiHliency of a protective system.
Justice and fairness dictate that in any
modification of our present laws re
lating to revenue, thu industries
nnd interests which hax-e been en
couraged by such law s, and in which our
citizen have largo in crtments, should not
lw ruthlessly injured or destroyed. Wo
should also deal witli tho subject in such
manner as to protect the interest of Ameri
can labor, xxhich is tho capital of ourxsork
ingmeu; its stnbllty and proper remuneration
furnish tho most justlfiubio pretext for a pro
tective policy, itliin thoso limitation a cer
tain i ii met ion should lw made in our customs
rex'enue. Tho amount of such reduction
having been determined, the inquiry follow,
where can it Is-st lw remltUsl and xUiat
articles can lmst lw released from duty, in tiio
Interest of our citizens I think the reduction
should lw made iu tho revenue derived from
a tax iqwn tho imiiorted necessaries of life.
Wo thus directly lesse n tho cost of living in
every family of tho land, mid release to tho
people ill every humble homo a larger measure
of tho levvimls of frugal industry.
HANKS AND COINAGE.
During tho year ended Nox-emlxT 1, 18V5,
in national luiuks were organized, xvith uu
aggregate capital of 4 Ul,tts,ouo, and circulat
ing notes havo lieon issued to them amount
ing to Sil,274,'J10. Tho xvholo number of
theso linuks in existence on tho day above
mentioned wus 2,727,
Tho very limited amount of circulating
notes Issued by our national Iwnks conqiarul
with tho amount tho laxv liermits thcni to
issue, upon a dejioslt of liouds for their re
demption, indicate that tho volume of our
circulating medium may lw largely increased
through tills instrumentality.
Nothing n.ore lmpurutiit than tho present
condition nf our currency and coinage can
' aim your attention. Since February, 1S7S,
tl e government 1ms, under tho compulsory
nruxisinus of law. uurc based silver bullion
and coined the same nt the rate of moro
than $2,000,000 every month. Ily this
process up to tho present dato 21.',7.i!),4:ll
sllxxr dollars liaxo been coined, A leasona
blo appreciation of a delegation of jKiwer
to tho general government xvould limit its
exerciso without express rostrictix-e xvords to
tho people's needsnnd the requirements of tho
public. Uiwn this theory nnd authority to
"coin money" given to Congress by tho Con
stitution, if It permit the purchase by tho
government of bullion for coinago lu nny
event, does not justify such purehaso anil
coinage to nn extent lieyond tho amount
needed for n sufficient circulating medium.
The dcslro to utllizo tho silver product of
tho country should not lend to a mlsusn or
tho iierxcrsion of this power. Tho necessity
for such nn addition to tho silver currency of
tho nation as Is conqielled by tho silver-voin-ago
act, is negatived by the fact that up to
tho present tlmo only nliout fifty millions
of tho silver dollars so coined lmvo
actually found their xvny Into circulation,
leaving moi e than ono hundred nnd sixty-llvo
milions iu tho iKxscssion of tho government,
the custody of which has entailed n consid
erable exiienso for tho construction of x-auihs
for it dejiosit. Against lids latter amount
thero nro outstanding silver certificates
amounting to nliout ninety-tlireo millions of
dollars.
Kvcry month two millions of gold In tho
public treasury nro paid out for two millions
or more of sllv cr dollars, to lw added to tho
idle mas already qccumulntcd. If continued,
long enough, tho oiiernlioii x ill result ill tho
substitution of silver for nil tho gold tho
gox-emtneut ow lis npplicablo to its general
IHirjioscs. It xvill not do to rely ujioti tho
customs receipts of tho government to
make good this drain of gold, liecntiso
tho silx-er thus coined having liecn make legal
tender for all debts and dues, public nnd pri
vate, at time during tho last six month fifty
eight Tier cent, of tho receipts for duties hax-o
liceu in silver or silver certificates, xihiiotho
ax'erago within that period has lieen twenty
per cent. Tho proiortion of silver and its
certificates received by tho government w ill
proliablx increaso as lime goes on, for tho
reason that the nearer tiio ieriod approaches
xhcn it xvill lw obliged to offer silver lu iiny
ment of it obligations, tho greater induce
ment there xvill be to hoard gold against de
preciation iu tho xnhio of silver, or for the
pui-jKiso of spx-ulntlng.
Tiio hoarding of gold has already begun.
When tho timo comes that gold ha been
xvithdrawn from circulation, then xvill
z ixXTaielof r3uT aoira
a dollar in gold, and tho txso coins xvill .
jiart company, uold, still tho standard of
x-nlue. and necessnrx' in our donlluirs xvith oth
er countries, will lw at a premium o-crsil-er;
banks which have substituted gold for the de-
imsus pi mcir cusiomei-s may pay incm w mi
silver bouirht xvith such
K Vviii .ii
handsome profit: rieii speculate!- will sell
their hoarded gold to their neighliors x ho
neeel it to liquidate their foreign ilebts, nt a
ruinous pi emlum ox er sllver.nnil tho lal siring
men ntul xvomeu of tho land, most de
fenceless of all, xvill find that tho elollar re
ceived for tho xvago of their toil has sadly
shniuk iu It purchasing power. It may bo
said that the latter result xvill lw but tempor
ary ,'aud tliatultimately tiio prico of labor will
lw ndjustisl to tho ciinngo; but even if this
takes place, tho wagoxvorker e-nnnot iiossibly
f-aiu but must Inevitably lose,sinco the price ho
s compelled to pay for his living xe ill not only
lw measured iu a coin heavily depreciated,
nnd fluctuating and uncertain In its value,
but this uncertainty 111 the x-aluo of tho pur
chasing medium xvill lw made tho pretext for
an advance iu prices beyond that Justified by
actual elepreciatioii.
The words uttered iu 1SH by Daniel AVcb
ster in the Senate of the United States aro
tmo to-day: 'Tho x-ery man of all other
xmio lias tno iiecxst interest in n sound cur
SsK" '. "V"r EE ttl vb"
,,.,.. ...i.ii
enrns his daily bread by his daily toll." The
most elistlnguished ndvocnto of bi-mctulism,
dlsciissin;
our silx-er coinage, has lately
written:
io Aineiicnn citizen s nnnii lias
yet felt tho sensation ot cheapness,
either in ieccivingor expending the Silver
Act dollars." And thoso x ho lix-o by labor
or legitimate trade will never feel that sensa
tion of cheapness. Howoxer plenty silver
dollars may liecome, they xvill not lw ilistrib
utexl as gift nmong the people; and If tlio
lalwring man should receix'o four depreciated
dollars xxuero ho now i eceive but two, ho
xvill nax' in tho elepreciutcd coin more than
ilouhle thoprico ho now mys for all tlieucc-
cessaries nnd comfort of life.
Thoso x ho do not fear any disastrous con-seemonc-cs
arising from tlio continued compul
sory coinage of silver as now directed by law,
ami xvho suppose that tho addition to tho cur
rency of tlio country intended as it result,
xx ill bo n public lienefit, nre reminded that
history ileinoiistrate that tlio iwint is easily
leaches! In tho attempt to float at the same
tlmo two sorts of money of tlifferent excel
lence, xhen tho lietter xvill ccaso to lw
iu general circulation. Tlio hoarding of gold,
which has already taken place, indicates, thnt
wo shall uot osoapo tho usual exiwrienco in
such cases. So, it this silver coinago lw con
tinued xvo may reasonnbly exjiect thnt gold
and it equivalent will abandon tho Held of
circulation to silx-er alone. Tills, of course,
must produce u severe contraction of our cir
culating medium, instead of adding to it.
It will not bodlsputesl that any attempt on
tho jiart of tho government to cause tho cir
culation eif silver elollnrs xsorth eighty cent,
sielo by sldo xvith gold dollars worth 100 cents,
even within tlio limit that legislation does not
run counter to laws of trade, to lw successful
must lw secondisl by the confidcuco of the
tieoplo that both coins will retain tho same
purchasing power nnd lw inter-
ciiangublo at will. A siiesial effort has
lieeu ninelo by tho secretary of thu treasury to
increaso tlio amount of our silver coin iu cir
culation; but tho fact that n largo share of
tlio limited amount thus put out has soon re
turned to tno puiiuc treasury in liuymcni en
iluties, leads to tho liellef that thu jieoplo do
not now desire to keep it in hand: and i July to tho Indian Territory to prevent an
tills, xvith tho evident illsjiosition to hoard i outbreak which seemed imminent. They re
gold, give rise to tho suspicion thnt I malneil to aid, It necessary, iu the expulsion
there already exists n lack of confidcuco i of intindcrs upon tho reserx-ntion, xx ho i-ecmed
among thu jiesiplo touching our ilmiuclal pro- to have cause-el tho discontent among tho In
ccssew. Thero is certainly not enough silver elinus, but tho Kxecutixu proclamation warn
now in circulation to cause uneasiness; nnd lug them to remove xas complied xuthwith
tho w holo amount coined and now on hand out their Interference.
might, after n tlme, lw nliwuiwd by tlio pes- Ti-oois were nlso sent to Ilock Springs,
iilu without apprehension; but it is tho ce-uso- in Wyoming Territory, after the massacre of
less stream that threatens to overflow tho Chineso there, to iirox-cnt further disturbance;
land which causes fe-eir and uncertainty
What has lssui thus fur submitted upon
this subject relates almost entirely to consid
erations of a homo nature, uucnuuoctcHl w ith
tlio Inuring xxhlchtliopolliiesof other nations
lmvo iqion tho question, Hut it Is perfectly
apparent that a lino of action in regard toenir
currency cannot wisely lw settled iqwu or ivr
slsted in, xvithout considering tin) nttitudo
on tho subject of other countries
with whom wo maintain inter
cemrso through commerce, trude,
aud travel. An uckuox lodgment of this fact
is found in tho act by virtue of w hich our sll
xer is comntilsorily coined. It provides that
"Iho l"i-csideiit shall invito tho govcmmoiits
of tho countries, composing tho Lathi Union,
so called, nnd of such either Kuroiicnti nations
as ho may ilecm advisable, to join tho United
Stntesinu csiiiferencotondoptuconuiion ratio
lietwifti gold and silver for tho purpose of
establishing internationally the uso or til-metallic
money nnd securing ilxlty of relative
xuluo lietween thoso metals."
This cemfi ivneo nlisolute y failed, and n
similar fate tins nwaitesl iillsulisesuent efforts
in tlio sumo direction. Ami still xeo continue
our coinage of sliver at n rutin different from
that of uny other nation. The most vital
part of the silver-coinage act remains I no leni
tive and unexecuted, and, xvithout nn ally or
friend, wo battle upon iho silver field In an
illogical nnd losing contest.
lo givo full effect of the design of Congresj
on this subject I havo mnde a careful and
earnest endeavor slnco the adjournment of
tho last Congress. To this cud I delegated a
gentlemnn well instructed lu fiscal scli-ncc, to
proceed to tho financial centers of Kuropo,
nnd, in conjunction with our ministers to
Ihulaud, France nnd (icrmauy, to obtain a
full know ledge of tho nttitudo nnd Intent of
those gox-ernmontMiu respect of tho estab
lishment of such nn Intel-national ratio as
xxould procure free coinago of lwth metals nt
tho mints of those countries nnd our own.
Ily my direction our consul-general nt Paris
has given closo attention to tho proceedings
of tho Congress of tho Iitiu Union, in order
to indicate our interest iu Its objects and ro
liort ils action.
It may lw said, iu brief, as tho result of
theso efforts, that tho attitude of tho leading
Jiow era remains substantially unchaugesl siuco
tho monetary conference oi lbM. nor is it to
lw qucstlonesl that the views of these govern
ments nro iu each instance suiijirted by the
xveight of public opinion. The steps thus
taken haxo therefore only more fully demon
stinted tho usclessiie.1 of further nttempt at
present, to arrive at nny ugrecmeut on tho
mliject xvith other nations.
In tho incnntniio wo nro accumulating sil
ver coin, based upon our own peculiar ratio,
to such nn extent, aud assuming so heavy a
burden to bo provided for iu any Internation
al negotiations, ns xiill render us an undeslra
bio party to any future monetary conference
of nations.
It is a significant fact that four of tho fivs
countries composing tho Latin Union men
tioucil in our coinago net, embarrassed xxitU
their silver currency, have just completed an
agreement among themselves, that no more
silver shall bo coined by their rosticctix-e governments-,
nnd that such ns lavs been already
coined and in circulation shall bo redeemed
ill gold by tho country of its coinage. The
resort to tills exiwdicnt by tiiese countries
may xvell nrrcst tho attention of those who
suppose that wo can succexxl xwthout shock
or injury, in tho nttempt to circulate upon
it merits, all the silver xvo may coin under
tho provision of our silx-er coinage net.
Tho condition in xx hich our treasury may
bo placed by a iiersistciico in our present
course, is a matter of concern to every patri
otic citizen xe ho ilootf not desire his govern
ment to pnx' in silver such of its obligations
ns should be iiaid in gold. Kor should our
' t:!'
management of our affairs, to discontinue
iiiucniuugiuniKi payment or. miercst-liear-ing
obligations, x Inch xe hax-o tho light now
to discharge and thus avoid tho jiayment of
further interest thereon.
Iho so-called debtor class, for whoso benefit
t,tinucd compulsory coina-o of silver is
'"sted upon, nro not dishonest becnusethey
nro in debt: und they should not bo susjiectod
of n desire to jeojiaixlizo tiio financial safety
of tho country, in order that they may cancel
their present debts by paying tho same In de
preciated dollars. Isor should it bo forgotten
that it is not tho rich nor tho money-lender
ulotio that must submit to sucli a readjust
ment, enforced by tho govermeut nnd their
debtors. Tho pittanco of tho xxidow and tho
orphan and tlio incomes of helpless tiene
liciurics of all kiiuls xx-ouhl lw elisas
trously reduced. Tho depositors in savings
bunks anil in other institutions which hold in
trust thu savings of tho jioor, xvhen their littlo
nccunnilatious nro scaled down to meet the
new-order of tilings, xvould, in their distress,
painfully rcullo tho elelusiou of the promise
Hindu to them that plentiful money wouhl im-prox-o
their condition.
Wo hax o now on hand all tho silver dollars
newssary to supply tlio present needs of tho
jKxiplo and to satisfy thoso who from senti
ment xx ish to sou them iu circulation; and if
their coiuagu is suspended they can bo readily
null
! Wninl I nil ? desire them,. If the.no
of more is at any timo apparent their coinago
may bo renewed.
Uliut dLsustcr has not already oxeitakenus
furnishes no proof that danger does not xvnit
ujiou a continuation of tlio present silver
coinage. Wo havo been saved by the most
careful management nnd unusual expedients,
by a combination of fortunate conditions, and
by a confident expectation tliat tho course of
tho goxei mncnt in regard to silver coinago
would bo speedily changed by tho action of
Congress.
Prosperity hesitates upon our threshold bo
cuuso of tho danger nnd uncertainties sur
rounding this question. Cupital timidly
shrinks trom trade, aud investors nre un
xe illiug to btko tho chnnce of tho questionable
shajw m xx hich their money will bo returned
to them, xx hilu enterprise halts at a risk
against xe hich care and sagacious manage
ment do not protect.
As a necessary consequence labor lacks em
ployment, und suffering and distress are vis
Iteet upou a jiortion of our fellow-citizens
esiwcluHy entitled to tho careful consideration,
of those charged xvith tho duties of legisla
lation. No interest npjwnls to us so strongly
for a safo and stablo currency ns the vast
army of unciiiploye-d.
I recommend tlio suspension of tho com
pulsory coinago of silver dollars directed by
tho law passed in February, 1S7S.
THE XX'AIt imrAHTMK.NT,
Tho report of the secretary of xvar is hero
xvitli submitted. Tlio nttention of Congress is
invited to tlio eletailesl account xx hich it con
tains of tho administration of hi department,
imtl his i eicommeudatiun nnd suggestions for
the improvement of tho service.
Tho army consisted, at the elate ot tho last
coiisolidateil returns, of 2,151 officers, and 24,-rn-.
i,!i.t.ui ,, ii'i,A i.T,..., i ,i
' liartmcuts for tlio fiscal year ended Juno 30.
, 155, including JllUtM.SH.CO for publio
worsts, nnu rixe-r anil iiariior improvements
xvero ?45,N'iO,bVJ.51.
llesido tho troops which xvere dispatched
In pursuit of tlio small liuudsof Indians who
left their reserx-ntion iu Arizona nnd com
mitteel murders uud outrage-, txvo ivglmc-uts
of cavalry and ono of lufnutry xicro sent last
and afterward to Seattle, in Washington
Territory, to uxcrt n threatened attack unon
Chineso laborers aud domestic violence there.
In With case tlio mere presence of thu troop,
had thu elesircd effect,
It npiioars that tho liunilicr of de
sertions havo diminished, but tluit during
tlio last Hscnl year they nmnlier
ul 2,ii27 ; und ono instance i
given by tho lieutenant-general of tlx deser
tions by tho samo recruit. I nm convinced
that this nuiiilier of ileertions can be much
ellmlnlshcxl by better discipline and treat
ment; but thopuuihment should lw increased
for reiientcd offences. Theso insertions might
also bo reduced by lessening tlio term of tlrst
enlistment, thus allowing u iliscontentcil re
cruit to contemplate a nearer ellschnrge aud
tho uriiiy a profitable riddance. After ons
icini oi servico a ro-eiiiisiment; xvould be
epiltu apt to secure a couteutod recruit and a
good soliller,
Tho acting judgo-ndvocnte-geuernl reiiorts
that Ibo number of trials by general courts
nmitial during tho year xxas 2,!i2S, and thnt
ll.s-M trials took plae-o before garrison ouel
regimental courts-martial, Tho suggestion
that probably more than half tlio army have
lust-n tried fcr offences, great nnd snail, in
one your, inuy well ui.it attention. Of
course many of thtsse trials liefoie gnrrisou