Value of their products. And yet tor many ef tho necessaries and comforte of life, which the most scrupulous economy enables them to bring into their homes, and for their Im plements of husbandry, they are obllgod to pay a prico largely Increased by an unnatural profit which, By tho action of the govern ment, Is given to the more fnvorcd manu facturer. 1 recommend that, kecking in Tiew all these considerations, the increasing and unnecessary surplus of national income annually accumulating be released to tho people by an amendment to our revenue laws which shall cheapen the price of the neces saries of life tnd give freer entrance to such imported materials as by American labor may be manufactured Into marketable com modities. Nothing can be accomplished, however, In the direction of this much needed reform, unless the subject Is approached in a patriotic spirit of devotion to the interests of the entire country and with a willingness to yield something for the public good. THE COINAOE. During the fiscal year ended June SO, 1830, there were coined under the compulsory sll Ter coinage act of 1878 20,833,005 silver dol lars, and tho cost of tho silver used in such coinage was 123,448,000.01. There had been coined up to the close of tho previous fiscal year under the provisions of tho law 203.b82, 54 silver dollars, and on Djc. 1, 1880, tho total amount of such coinage was $247,131, 549. The director of the mint reports that ut tho timo of the passage of the law of 1873 directing this coinage, the intrinsic value of the dollars thus coined was 94f centa each, and that on July 31, 1880, the price of silver reached the lowest stage over known, so that tho Intrmsio or bullion prico of our standard silver dollar at that dato was less than seventy-two cents. The price of silver on Nov. CO last was such as to malco these dol lars intrinsically worth seventy-eight cents each.. These differences In value of the coins represent the fluctuations in the price of sil ver, and they certainly do not indicate that compulsory coinage by the government en hances tho prico of that commodity or bo cures uniformity In Its valuo. Every fair and legal effort has been made by tho treasury department to distribute this currency among the people. Tho withdrawal of United States treas ury notes ,of small denominations, and the issuing of small silver certificates have beeu resorted to in the endeavor to accom plish this result In obedience to the will and ueullments of tho representatives of the peo ple in the congress. On the 27th day of No vember, 1SS0, tho people held of theso coins, or certificates representing them, tho nomi nal sum of (100,873,041, and wo still had $79, 404,345 in the treasury as against about 143,894,055 so in the hands of the people and $72,805,370 remaining in the treasury one year ago. The director of the mint again urges the necessity of more vault room for the purpose of storing these silver dollars which are not needed tor circulation by tho people. I have seen no reason to change the views expressed in my last annual message on the subject of this compulsory coinage; and I again urge Its suspension on all tho grounds contained in my former recommen dation, reinforced by the significant lncreaso of our gold exportntions during the last year, its appears by tho comjuirative statement herewith presented, and for the further rea sons that the more this currency Is distribut ed among the people tho grentor bocomos our duty to protect it from disaster; that we now have abundance for all our needs, and that there seems but little propriety in building vaults to store such currency when the only pretense for its coinage is the necessity of its use by tho people as a circulating medium. DEPARTMENT OP JUSTICE. The conduct of the department of justice for the last fiscal year Is fully detailed in the report of the attorney general, and I invite th earnest attention of the congress to the same and due consideration of the recommen dations therein contained. In the report sub mitted by this officer to the last session of the congress he strongly recommended the erec tion of a penitentiary for the confinement of prisoners convicted and sentenced in the United Htntes courts; and he repeats the rec ommendation in his report for the last year. This is a matter of very great importance and should at once receive congressional actioa With prisons under its own control, the gov ernment could deal with the somewhat vexed question of convict labor, so far as its con victs were concerned, according to a plan of its own adoption, and with due regards to the rights and interests of our laboring citizens, instead of sometimes aiding in the operation of a system which causes among them irrita tion and discontent. Upon consideration of this subject it might be thought wise to erect more than one of these institutions, located in such places as would best subserve the purposes of convenience and economy in transportation. I again urge a change in the federal judicial system to meet the wants of the people and obviate the delays necessarily attending the present condition of affairs in our courts. TUB FUBUO DOMAIN. The recommendations of the secretary of the interior and the commissioner of the general land office looking to the better pro tection of public lands and of the public sur veys, the preservation of national forests, the adjudication of grants to states and corpora tions and of private land claims, and the in creased efficiency of the public laud service are eommondeil to the attention of congress. To secure the widest distribution of public lands in limited quantities among settlers for residence and cultivation and thus make the greatest number of individual homes was the primary object of the public land legislation in the early days of the republic. This sys tem was a simple oue. It was soon, nowever, found that the ob ject of tho huvs was perverted under tho sys tem of cash sales, from a distribution of land among the people to an accumulation of land capital by wealthy and speculative persons. To check this tendency n preference ight of purchase was given to settlers on tho land, a plan which culminated in tin general pre emption act of 1841, The foundation of this system was actual residence and cultlvatln, Twenty years later the homesttiad law was devised to more surely place actual homes in the possession of actual cultivators of the soil. The laud was given without price, the bole cxirtiousbelqg cealdence, improvement and cultivation. But In later years theso laws through vicious administrative methods and under changed conditions of communi cation and transportation, have Uwii bo evaded and violated that their beneficent purposo is threatened with ontiro defeat. The rapid appropriation of our public lands without bona fido sentiments or cultivation, and not only without Intention of residence, but for tho purpose'' of their nggrezntlon in large holdings, fa many cases in the liniids of foreigners, Invites the serious and immediate attention of tho congress. I recommend tho repeal of the pro-emptlon mid timber culturo acts, and that tho homostead laws bo so amended as to botfor secure compliance with their requirements of resi dence, improvement, and cultivation for the period Of five years from the dato of entry, without commutation or provision for specu lative relinquishment. I also recommend the repeal of tho desert-land laws unless It shall 1 tho pleasure of tho congress to so amend theso laws as to render them less llnblo to abuses. The removal of the fences still remaining which inclose public lands will be enforced with all tho authority and meaos with which the oxecutlve branch of the government is or shall bo Invested by the congress for that purposo. THE NATIONAL DEDT. The sura paid upon tho public debt during the fiscal year ended Juno 30, 1SS0. was $44,651,043.30. ' During tho" twelve months ended Oct. HI, 1880, 3 per cent bonds were called for rodemii tion amounting to $127,283,100, of which $eO,013,200 was so called to answer tho re quirements of tho law relating to the sinking fund and $40,0.7.),000 for tho purposo of re ducing the publlo debt by application of a part of tho surplus in tho tieasury to that object. Of the bonds thus called $102,209,450 became subject under such talis to redemp tion prior to Nov. 1, 18S0. Tho remainder, amounting to $25,013,050, matured under the calls after that date. In addition to the amount subject to pay ment and cancellation prior to Nor. 1, there were also paid before that day certain of theso bonds, with the Interest thereon, mounting to $5,073,350, which were antici pated as to their maturity, of which $3,004, 650 had not been called. Thus f 107,341, 800 had been actually applied prior to Nov. 1, 1SS0, to the extinguishment of onr bonded and interest bearing debt, leaving on that day still outstanding tho sum of $1,153,413,112. THE POSTAL SERVICE. The affairs of the postal sorvlce show marked and gratifying improvement during the jiast year. Tho reduction of tho rato of letter postngo in 1SS3, rendering tho postal revenues Inadequate to sustain the expendi tures, and business depression also contribu ting, resulted in nn excess of cost for tlo fls -nl year ended Juno 30, 1885, of eight and one-third millions of dollars. An additional check upon receipts by doubling the measure of weight in rating sealed correspondence and diminishing ono-half the charge for nows paper carriage, was imposed by legislation which took effect with the beginning of the past fiscal year; while the constant demand of our territorial development and growing population, for the extension and increase of mail facilities and machinery, necessitates steady annual advance in outlay; and the careful estimate of a year ago uu tho rates of expenditure then exlsting,couteiuilatcd tho unavoidable augmentation of the defi ciency in tho last fiscal year by nearly $2, 000,000. 1 he anticipated revenue for tho last year failed of realization by nbout $01,000, but proper measures of economy havo so sat isfactorily limited the growth of expenditure that the total deficiency, in fact, fell below that of 1885. At the cloe of the last fiscal year the expense of transportation on 6tar routes stood at an annual rato of cost less by over $500,000 than nt tho cloo of the previ ous yoar, and steamboat and mail messenger service at nearly $200,000 less. The servico has been in tho meantime enlarged and ex tended by tho establishment of now offices, in. crease of routes of carriage, expansion of car" rier delivery conveniences and uddltions to th rall way mail facilities, in accordnnco with the growing exigencies of tho country and tho long established policy of tho government. Tho differences which nrose during tho year with cortaln of the steamship companies have terminated by the acquiescence of all in tho policy of tho government approved by tho congress in the postnl appropriation at its last session; and tho department now enjoys tho utmost service afforded by all vessels which Bail from our ports upon either ocean a service generally adequate to the needs of our intercourse, l'otittons have, how ever, been presented to the department by numerous merchants and manufacturers for the establishment of a direct service to the Argentino republic mid for semi-monthly dis patches to the empire of Brazil; and the sub ject is commended to your consideration. I suggest that as distinguished from a grant or subsidy for the mere boneflt of any line of trade or. travel, whatover outlay may be required to secure additional postal service, necessary and proper and not otherwise attalnablo, should be regarded as within the limit of legitimate compensation for such service. The extension of the free delivery horvlco as suggested by tho jiostmaster general has here tofore received my sanction, and it is to bo hoped u suitable enactment may soon be agreod upon. Tho request for an appropria tion sufficient to enable the gcnoral inspection of fourth class office has my approbation. The report of the commissioner of pensions contains a detailed and most satisfactory exhibit of the operutlonsof the ienslou hureauduring the last fiscal year. The amount of work done was the largest la any year since the organization of the bureau; andlthas been done atless cost than durlnu the previous year In every division. On the Both day nt June, 1 0, there were 36.',,7o3 pen sioners on the rolls of the bureau. Siuce I -ul there hare lieeu 1,0 8,711 applicants for pensions tiled, of which IfJ.eH were lased upon sen Ice in the war of lrtlJ. 'lhere were 6 1.751 of theso np pllcatlons allowed, including 00,174 to the soldiers of ISpiand tlieiruidows. The total amount paid lor pensions since inui jh ?n.tK4.eji or. The number of new pensions allowed during the year ended June ao, M l, is 40,t57 a larger num ber than has been allowed In any yeur nave one since 101 j thouame of pensioners which had been previously dropped from the. rolls were restored during tho sear, ami after deduct ing those dropped within the same time for vjjrlous iouavs. j net tefivaio remains (or. the yfot20,tS3Tnin'ieil. Trom Jan. 1,T30I, tbDee. 1, 1833, 1,0J7 private pension acts had ben passed. Since the lust mentioned date, and during the last session of the congress. W I such acta liecame laws. It seems to me that no one can ex amine our jienslon establishment and its operations without being convinced that tbiough It Instrumentality Justice can be very nearly done to all who are entitled under present laws to the pension bounty of the trovemment. But It is undeniable. Ihnt rnottpr. 1st, well entitled to relief. In which tho pension bureau Is powerless to aid. The really .worthy cases of this class are such as only lock by mis- law and regulations of the bureau require, or which, though their merit is apparent, for some other remon cannot bo justly dealt with through general laws. These conditions fully justify np- 11100 to the congress and special enactments, ut resort to the congress for a special pension act to overrule the deliberate and careful deter mination of the enslon bureau on the merits or to secure favorable action when It could not lie expected under the most liberal execution of general laws, it must be a1mltbl, oi-ns the door to the allowance of questionable claims and presents to the legislative and executive branches of the government applications concededly not within the law and phvfnly devoid of merit, but so surrounded by sentiment and patriotic feel. Ing that they are hard to resist 1 suppose it will not be denied that many claims for iionelon are made without merit and that many have been allowed upon frauJulent representations. This has been declared from the Kuion bureau, not only in this, but In prior administrations Tho usefulness and the Justiceof any system for the distribution of pensions depend upon the equalltv and uniformity Of Us operation, it will be seen from the repoi t of the commissioner that there are now paid by the government 131 different rates of of pension. He estimates from the best informa tion he can obtain that 0,000 of those w ho have served lu the army and havy of tho United Stays are now supported, la wbole or In part, frou pub lie funds or by organized charities, exclusive of those In soldiers' homes under the direction and control of the government. Only 13 per cent, of these are pensioners, while of th- entire numlier of men furnished for the late war something like 20 ir cent., Including their widows and relatives, have been or now are in the receipt of pensions. Tho American people, with a pan folic ond grate ful regard for our ex-oldters two broad and too sacred to bo monopolized by any special advocates are not only willing but auxtous that equal and exact Justice should be dona to all honest claim ants for pensions. In their sight the friendless and destitute soldier, dependent on publlo charity. If otherwise entitled, has precisely the same right to share lu the provision made for those who fought their country's battles as those better able, through frlrnds aud Intlueuce, to push their claims. Every iiension that is granted under our present plan upon any other grounds than actual service and Injury or disease Incurred In such ser vice, and ev ery instance of of tho many In which pensions aro Increased on other grounds than the merits of the claim, work an Injustice to the brave and crippled, but jioor and friendless soldier, who Is entirely negnected or who must be content with tho smallest sum allowed under general laws. There are far too many neighborhoods in which aro found glaring cases of Inequality of treatment In the matter of jienslons; and they are largely dhe to a yielding In the iienslon bureau to importunity on the part of those, other than tho pensioner, who are especially interested, or they arise from special acts passed for tho iK'ncflt of Individuals. 'Ihe men who fought side by side should stand side by side when they partlclimte In a grateful nation's kind re membrance, Every consideration of fairness and Justice to our ex-soldiers, and tho protection of the patl folic Instinct of our citizens fromjierver sion and violation, point to the adoption or a -tension system broad and comprehensive enough to cover every contingency, and hlch shall make unnecessary an objectionable volume of special legislation. As long as we adhere to the principle of granting pensions for service, and disability as the result of the service, the allowance of pen slons should be restricted to cases presenting hese feature Every patriotic heart responds to a tender couslderation for those who, having served their country long and well, are reduced to destitution and dependence, not as an Incident of their service, but with advancing age or through sickness or misfortune. We are all tempted by the contemplation of such a condition to supply relief, and aro often Impatient of the limitations of publlo duty, yielding to no one In the desire to indulge this feeling of consideration, I cannot rid myself of tlte conviction that If these ex soldiers are to be relieved they and their cause are entitled to the beuetit of an enactment, under which relief may be claimed as a right, and that such relief should be granted under the sanction of law, not In evasion of It; nor should such worthy objects of care, all equally entitled, 1 re mitted to the unequal operation of sympathy or the tender mercies of social and political influ ence with their unjust discriminations The discharged sold lei's and sailors of the coun try are our fellow-citizens, and Interested with us in the passage and faithful exeoutlon of whole some lews. They cannot be strervod from their duty or citizenship by artful appeals to their srwit of brotherhood born of cominoo iieril and uttering, nor will they; exact aj a test of devo tion to their welfare a willingness to neglect pub lic duty in their bohalt TUB PATENT OfTOt On the 4th of March, 183, the current business of the patent office was, on aa average, live and a half months In arrears, and In several divisions m re thAn rw elve months behind. At the close of tho last fiscal (year such current woik was but three months In arrears, and It Is ass-rte I ond bs lleved that in the next few months the delay In obtaining an examination of nn application for a patent vvdl be but nominal. The numb-r of ap plications for patents during the last fl teal year, Including reissues, designs, trademarks and labels, equa's 4 i,i7d, which is considerably l.i ex cess of the number received during anv prece 1 ing year. The receipts of the patent uface dur ing the year aggregate $l,2U5,10f.h0, enabling the ofllce to turn Into the treasury a surplus revenue, over and above all expenditures, of about $10-1, 7I0.3(). The number of patents granted dining the last fiscal year. Including reissii'-s, trade marks, designs and labels, was 5.(H'Ja number also quite largely lu excess of that of any pre ceding year. The report of the commissioner show s the ofllce to be in a prosp-rous condition and constantly Increasing In its business. No in crease or foi-ce Is asked for. The amount esil mated for the fiscal year endhu June HO, ibM'i, was IS31.7W. The amount estimated Tor the v ear ending Junt so, 1SS7. w as $-J.'!.uoo. The amount estimated for the fiscal year ending June 3d, ItteS, is $778,770. r-ACTFId RAILROADS. The secretary of the Interior suggests a change In the plan fur the payment of the Indebtedness of the racltio subsl.llz d roads to tlu covei nment. Uissugg stion has the unanimous Indorsement of tho jieitions sclectei by the government to act at directors of these roads an i protect the interests of the United States In the hoard of direction, la considering the plan proposed tho sole matters which should be taken Inti account. In myopia iou. are the situation of the government as a creditor, and the Burest way to secure tho pay. ment of tho principal ami Interest of Its debt lly a recent decision of the supreme court of the United tstates It has been aljudged that the laws of the several states are Inoperative to regulate rates of transportation on radroads. If such regu lation Interferes with the rate of carriage from on state Into another. This Important Held of control and regulation bavm U-en thus left en tirely unoecuple tha expediency of federal ao ioi imiQ mo Kinu ui tiuanuiy OI prooi wnicu 1116 wvu ujjuu vuu suujei-i, woi my oi consideration. CAPITAL AK LABOO. The relations of labor to capital and of labor ing msn lo Usslr sanjMorsiro ofMja utmost cotieern to oVSry pamctie cmien. when tneae are strained and distorted, unjustifiable claims are Apt to be Insisted upon by both Interests, and In the controversy which results the welfare of all and the proierlty of the country are Jeopar dized. Any Intervention of tho general govern ment, within the limltsof Its constitutional au thority, to avert such a condition RhouU be will ingly accorded. In a special message trnnimlt ted to th congress at Its last sessl vn I suggested the enlargement of our present labor bureau ond adding to Its present functions tho powor of ar bitration la cases where differences Arise between employer and employed. When theso differ ences reach such a stage as to result In the Inter ruption of commerce between the states, the ap plication of this remedy by tho general govern ment mleht lie regarded as entirely within Its constitutional powers And I think we might reasonably hcitc that such arbitrators. If care fully selected and If entitled to the confidence of the parties to ho affected, would he voluntarily called to tho settlement of controversies of ie--s extent nnd not necessarily within the domain of federal regulation. I am of the opinion that this suggestion Is worthy the attention of the con gress. Put after all has been done by the passage of laws, either federal or state, to relievo n situa tion full of solicitude, much more remains to be accomplished by the reinstatement an J cultiva tion of a truo American sentiment which recog nizes the equality of American citizenship. This, in the light of our tra lltlons and in loyalty to the spirit of our Institutions, would tench that a hearty co-operation on the part of all Interests Is the surest path to national greatness and the hap piness of all our people, that capital should, la recognition of the brotherhood of our citizenship and In a spirit of American fairness, generously accord to labor its Just compensation and consid eration, and thut contented labor is capital's best protection nnd faithful ally, it would teach, too, that the diverse situations of our people are In separable from our civ ihzatlon; that every cltben should, lu his sphere, le a contributor to the gen eral good; that capital docs not necessarily tend to the oppression of labor, and that violent dis turbances and dlsonlers alienate from thtlr pro moters truo American sympathy and kindly fl. in. DEPARTMENT or AOniCtTLTCnE. The department of agriculture, representing the oldest and largest of our national Industrie, Is subverting well the purposes of lu organiza tion, by the lntrudu tiou ut new subjects of f urmlng enterprise, and by opening new sources of agricultural wealth and the dissemination of early information concerning production and prices, It has contributed largely to tho country's prosperity. Through, this agency advanced thought und Investigation touching the subjects It has lu charge should, among other things, be practically applied to tho homo production at a low cost of articles of food which are now Im ported from abroad. Such an Innovation will necessarily, of course, in tho beginning bo within the domain of Intelligent exjierlment; and the subject In every stage should receive all possible encouragement from the government. The interests of millions of our citizens en gaged in agriculture uro Involved In an enlarge nunt and unpiovement of the results of thilr labor; and a realous regard for their welfare shoul 1 be a willing tribute to those whose pro ductive returns are a main source of our progress and power. The existence of pleuropneumonia among the cattle of various stau a has led to bur densom; and In some cases disastrous n-strlctioni in an imjioi taut branch of our commei ce, threat ening to airect the quantity and quality of our food supply. This Is a mutter of such importance and of such far-reaching consequences that I hope It will engage the serious attention of the congress, to the end that such a remedy n oy b applied as tho limits of a constitutional delega tion of power to the general novel nment will per mit. I commend to the consideration of tho con gress tho report of the commissioner and his suggestions concerning the Interest Intrusted ta his care. CIVIL SERVICE RETORU. The continued operation of the law relatlnr to our civil service has added the most convincing proofs of Its necessity and usefulness. It Is a fact worthy of note that every public olllcer- who has a Just Idea of his duty to the ople, testifies to the value of this reform Its staunchest friends are found among those who understand It best, and its vv annest supporters are tliosu w ho are ro strained aud protected by Its requirements The nieaninzof such r, stralnt and pi election is not appreciated by those who want places under the government, regardless of merit und efficiency, nor by those w ho insist that the selection for such places should rest uon a proer credential show ing active jiartlsan work-. They mean to publlo olflci ra. If not their lives, tho only opportunity afforded them to attend to publlo business, and they mean to tho good people of the country the better performance, of the w ork of their govern ment, it Is exceedingly strange that the scope and nature of this reform are so little understood, and that so ninny things not included within Its plan are called by its name. When cnvll yields more fully to examination tho system will have large additions to the number of Its friends. Our civil servico reform may bo Imperfect In some of its details; It may be misunderstood and opposed: it may not always be faithfully applud; Ita dei signs may sometimes miscarry through mistake or willful Intent; it may sometimes tremble under the assaults of its enemies or languish under the misguided zeal of Impiactlcul friends: hut if the people pf this country ever submit to the banish, ment of its underlying principle from the opera atlou of their government, they will abandon tho surest guarantee of the safety and success of American institutions. I Invoke for this reform the cheerful and ungrudging support of consn ss I renew my commendation made list yea? that thesalatieHof the commissioners ha umde. equal to other officers of ; the .government huvlng like duties and respoosiblMlcs, And I hoiw thut such reasonable appropriations may be made as will enable them to fncn-aso tho usefulness of th causa they have In charge TUB PKXEDMEN'S BANE. I desire to call the attention of the congress to a plain duty which the government owes to the de ixwltors in the Freedmen's Savings ond Trut company. This company was chartered by th. congress for the benefit of the most Illiterate and humble of our people, and with the Intention of encouraging lu hem Industry and thrift, Slost of ts branches w ere presided over by officers hold ing the coninilssions and clothed In the uniform of the Uniu-d bUtes. These nnd other circum stances reasonably, I think, led these simple people to suppose that the invitation to deposit ihelr hard earned savings In this Institution im plied an undertaking on the part of their govern ment that their i money should be safely kept for them. When this company failed It was hable la the sum of t.,pj9,tw rto 61.131 depositors? Divi dends amounting lu the aggregate to (13 per cent, have been declared, and the sum callwffor and paid of such dividends teems to bo $ ,WM Ibis i nun deducted from the entire amount of it posUs leaves $I.-I)I,7H.M still unpaid. Past ed lerlence. has show n that quite a largo part of this sum vv ill not be called for. There are assets still on hand amounting to the estimated sum of $18,000. I think the remaining 38 jiercent. of such of these deposits as have claimants should bo raid J'yhejrovenunent, upon principles of equity and IX conclusion. After making certain suggestions reeardlnr tha preffiTsS'-s- UUrlCt ClumblagXth! .i,In0.niclu:,lon 1 earnestly invoke such wise ac tion on the part of the i.-opk's legislators as will subserve the publlo good aud den!onstrate uvirlng the renia nlng dais of the couirrrHs, as at present organized its ab lity and Inclination to so Se?t i','"' eeds that It shall be gratefully ri membcrtd by an expectant constituency. ,,, . Qaovr-R Cleveland. WASarxaiON, Dec. 0, 1680,