ANNUAL MESSAGE or H.IfTK\TRM.F.NrY PRESIDENT IS. GEM Rond December 2. 1872. Washington, December 2.—The follow ing Is the full text of the fourth annual message of President Grant as forwarded to both houses of congress this afternoon:' To the Senate and House op Bep- UESENTATIVE9; lu transmitting to you tills mv fourth annual message, it is with thankfulness to the Giver of -nil good that ns a nation wo have been blessed lor the' past year with peace at home, peace abroad, and a general prosperity vouch safed to blit few people. With the excep tion of the recent devastating fire which swept from the earth with a breath, as it were,millions of accumulated wealth in the city of Boston,' there has been no overshad owing calamity within the year to record. It is gratifying to note how, like their fel low citizens of Chicago under similar cir cumstances a year earlier, the citizens of Boston are rallying under their misfortunes with a 'prospect that their energy and perseverance, will overcome all obstacles and show the same prosperity soon that they would had ho disaster befallen them; otherwise we have been free from pesti lence,- war ana calamities, which often overtake nations, and as far as human judgment can penetrate the fntifro, no cause seems to exist to threaten our pres ent peace. THE GENEVA AII'IIITUATION, • When congress adjourned In June last a questionbaubeen.ralsedby Great Britain and was then pending , which .for a time seriously ‘lmperiled the settlement by friendly arbitration of the grave differ ences between lids government and that of her Britanic Majesty, which, by the treaty of Washington, had been relewcd to the tribunal of arbitration which had met -In Genova, in Switzerland. The -arbitrators, however, disposed of flio question wiilch had Jeopardised Iho whole of the treaty and threatened to in volve the two nations in most unhappy re lations toward each other in a manner en tirely satisfactory to the government and In accordance with the views and the poli cy Which It had maintained. The tribunal which had convened at Geneva In Decern-, bor concluded Its laborious session on the Uth tiny of September, on which day hav ing availed Itself of the discretionary .power given It by the treaty to award a sum In gross it made its decision whereby It awarded the bu.ii of $10,500,000 In gold as the Indemnity to h<j paid by Great Britain to the Gulled States for the satis faction of all 11m claims referred to Its consideration. This decision happily dis poses of a long standing difference between the two governments, and In connection with another award made by the German Emperor under a reference to him by the same treaty, leaves these t wo governments without a shadow upon their friendly re lations, which it is my sincere, hope may forever remain equally , unclouded. The report of the agent of the United States appointed to attend the Geneva tribunal, accompanied by, the pro tocols of the proceedings of the arbi trators, the arguments of the counsel of both governments, the award of the tribunal and the opinions given by the several arbitrator;*,la transmitted herewith. 1 have caused to be communicated to the heads of the three friendly powers who complied with the requests made to them under the treaty the thanks of this government ' for. the appoint ment ,of aibltrators made by them respectively, ami also my thanks to the eminent personages named by them, and my approbation of- the dignity, patri otic impartiality and great ability with which they discharged their arduous and high functions. Tier majesty’* govern ment has communicated to me Its appreci ation by her majesty of the ability and in defatigable industry displayed by Mr. Ad ams, the arbitrator named on the part of this government during the protracted in quiries and discussions of the tribu nal. I cordially unite with her majesty in this appreciation. Jl Is duo to Um agent of the Hulled States before the tribunal, to record my high appreciation of Hie marked ability, unwearied patience and the prudence and discretion with which bo has conducted tlio very responsible and delicate duties committed to him, as it Is also duo to the learned and eminent council who attended the tribunal on the. part of this government to express my sense of tin*, talent.and wis dom which they brought to bear on the nt tAlu/uent of the results so happily reached. It will be the province of congress to pro vide for the distribution among those who maybe entitled to it of their respective shares of the money to bo paid, although the sum awarded is not payable until a year from the date of the award. It is deemed advisable that no time be lost in making a proper examination of the seve ral cases in which Indemnification may bo due. 1 consenifßntly recommend the crea tion of a board of commissioners for the purpose. THE SAN .JUAN EOUNDAUY. P»y the thlvly-fourtli nrtlclo of tho treaty of Washington the respective claims of tho 1 lulled Mates and of Great Britain in their .construction irf the treaty of thejisth of .lone, 1R415, defining tho boundary line be tween tliolr respective territories were sub mitted to tko arbitration and award of His Majesty tho emperor of Germany to de cide which of these claims is most In ac cordance, with, Hie true interpretation of tho treaty of 1810. Ills Majesty tho em eror of Germany having been pleased to undertake the arbitration has the earliest thanks of this government and of tho peo ple of the Onilcd States for the labor, pains and care which he has devoted to the consideration of this long ponding differ ence. I have caused an expression of ray. thanks to be communicated to his majesty.* Mr. Bancroft, the representative of this government at Berlin, conducted the case and prepared the statement, on the part of the I'nltrtl States with the ablll- ty h’s. past services ‘justified the pub lic In expecting at Ids hands. As a member of the cabinet at the date of the treaty which has given rise to the discussion between the two governments, as the minister to Great Britain when the construction was pronounced unfounded was first advanced, and as the agent and representative of ilia government to present the ease and to receive the award, he has been, associated with the question in all Its phases and in every .stage he manifested a patriotic zeal and correctness In mainte nance of the claim of the United States, lie Is entitled to much credit for the suc cess which has attended the submission, after a patient investigation of the case, and of the statements of each party, his majesty, tho Emperor, on the 21st day of October Inst, signed Ids award in writing, decreeing that the claim of the govern ment of the United States that the boundary line between tho terri tories of Her Britanic Majesty and tho United States should be drawn through Ilaro channel is most In accordance witli the true interpretation of the treaty con cluded on tho 15th of Juno, 18-W, between the governments of Her Britanic Majesty and of the United, States. Copies ol the case presented on behalf of each govern ment and of tlie settlement hi reply of each and a translation of the award are Bans mitted herewith. This award confirms the United States in their claim to tho impor tant archlpelego of Islands lying between tho continent and Vancouver’s islands, which ’ for more than twenty-six years, over since tho ratification of the treaty, Great Britain has contested and leaves us for the first time in the-history of the • United States as a nation without a ques tion of disputed boundary between our ter ritory and tho possessions of Great Britain on this continent. It Is my grate ful duty to acknowledge tho prompt, spon -1 aueous action of her majesty’s government in giving effect to the award In anticipation of any request from this government, and before the reception In tho United Slates of the award sighed by tho emperor, her majesty had given instructions for the re moval of her troops which had been sta tioned there and for tho cession of all ex ercise or claims or claim of jurisdiction so as lo leave the United States in the execu tive possession of me lately mspuled ter ritory. * I am gratified to be able to announce that tho orders for the removal of. the troops have been executed, and that the military point nf occupation of San Juan lias ceased. 'Tho Islands are now In tho executive possession of the United States. It now becomes necessary to complete the survey and determination of that portion of tho boundary line through tho Haro cbabnol upon wblnb tho commission which determined tho remaining part of tho . lino were unable to agree. 1 recommend the appointment or a commission to act jointly, with oho which may bo named by her majesty fprtbat pur pose; Exporlonco'of tho difficulties atten ding tho determination of our admitted lino of boundary, aftex tho occupation of tho territory and its settlement by those owing allegiance to the respective govern ments, points to the importance of estab lishing by natural objects or other monuments the actual line between tho territory acquired by purchase from Rus sia and the adjoining possessions of her Britanic majesty. The region is now so sparsely occupied that no conflicting in terests of individuals or of Jurisdiction, are. likely to Interfere to tho delayer cm barrassment.of the actual location of the line. H deferred till population shall enter and occupy tho territory some trivial contest of neighbors may again array tho two governments In antag onism. I therefore recommend tho ap pointment of a commission to act jointly With, ono that may be appointed on the part of Groat Britain to determine the lino between our territory of Alaska and tho extensive possessions of Great Britain. In my Inst annual message I recommend ed the legislation necessary on. tho part of the United States to bring Into operation tjm articles of the treaty of Washington of May H, 3871, relating to tho fisheries and to other matter touching the relations of tho United States toward the British North American possessions to become ope rative so soon as tho proper legisla tion should ho had on tho part of Great, Britain and its possessions. That legislation on the part of Great Britain and its possessions'liad not then been had, and during the session of congress a ques tion was raised, which for the time raised a doubt whether any action by congress In the direction Indicated would become im portant. Tlds question has since been dis posed of, and I have received notice that the imperial parliament and other legislatures of tho provincial government have passed laws to carry the provisions of the treaty on the matters referred to into operation. I therefore recommend your early adoption of legislation in tho same direction necessary on the part of this government. •The joint commission for determining the boundary line between , tho United States and British possessions, between Lake of the Woods and the llocky moun tains, has organized and entered upon Its work. It is desirable that the force bo increased in order that tho completion of the survey and tho determination of the lino may be tho sooner attained. To this end I recommend that sufficient appropri ation bo made. .Since iriy last annual message the ex change has bgon made of the ratlficatloiis of a treaty with tho Austro-Hungarian empire, relating to naturalization; also of n'treaty with the German empire, respect ing consols and trademarks; also of a treaty with Sweden and Norway, relating to naturalization, all of which treaties have been duly proclaimed. Congress at its last session having made an appropriation to defray tho expenses of commissioners on the part of tho United the international statistical con gress at St. Petersburg, tho persons ap pointed In that character proceeded to their destination and attended the sessions of tho congress. Their report shall In duo season be laid before you. This congress meets at intervals of about three years,and has hold Us sessions in several of the coun tries of Europe. I submit to consideration the propriety of extending tfn invitation to the congftss to hold |ts next meeting In the United States. The centennial celebration to bo held in 137 C would afford an appro priate occasion for such meeting. Preparations are making for the inter - VOLUNTEER. SUPPLEMENT. national exposition to bn liPiil during the next year lu Vienna on a scale ot very great'magnitude. The tendency of these expositions is In the direction of advanced civilization, and of tho elevation of in dustry and of labor, and of tho increase of human happiness ns well ns ot greater in tercourse and good will between nations. As this exposition is to bo tho first which will have been held In eastern Europe It Is believed that American inventors and manufacturers will bo ready to avail them solves of tho opportunity tor the presenta tion ot their productions, if encouraged by proper aid and protection. At the .last session ot congress authority was given for the appointment ot one or more agents to represent this governmental tho exposition. The authority thus given has been exercised but In tho absence of any appropriation there Is danger that tho important benefits which tho occasion otters will bo In a largo degree lost to tho citizens ot the United States. 1 recommend tho subject strongly to your consideration, and recommend that an adequate appropriation be made for tho purpose. To further aid American exhibit ors at tho Vienna exposition 1 would re commend in addition to an appropriation ot mouey that tho secretary ot tho navy lie authorized to fit up two naval vessels to transport between our Atlantic cities and Trieste, or tho most convenient point, to Vienna and back their articles tor exhibi tion. OUII RELATIONS WITH MEXICO. Since your last session the President of the Mexican republic, distinguished by his high character and by his services to his country, has died. His temporary succes sor Ims been elected with great unanimity by the people; a proof of confidence on their part in Ills patriotism and wisdom, which it is believed’will be confirmed by the results of his administration. It is particularly desirable that nothing should be left undone by the government of either of the republics to strengthen their rela tions as neighbors and friends.' It is much to be regretted that many- lawless acts continue to disturb the quiet of the settlements on the border be tween our territory and - that of Mexico, that complaints of wrongs to American citizens In various parts of the country are made. ' The revolutionary condition In which the neighboring repub lic has so long been Involved, has in some degree contributed to tills disturbance. It is to bo hoped that with a more settled rule of order through the republic which may ho expected from the present govern ment, the acts of which just complaint is made will cense. The proceedings of the commission under the convention wltq Mexico, or . the 4th of July, -1608, on . subject claims, have unfortunately been checked by an obstacle for tho removal of,which measures have been taken by the two governments; which, It is believed, will prove successful. The commissioners appointed pursuant to. the joint resolution ■ of congress, of May' last, to inquire into the dep redations on the Texan frontier, have diligently made investigation In that quar ter. Their report upon the subject will bo communicated to you: Their researches upon the subject were necessarily incom plete, partly on account of the limited ap propriation made by congress. Mexico,' on the part of that government; lias ap pointed a similar committee to investigate these outrages. It is not announced offi cially, hut the press of that country state that the fullest investigation is desired and that the co-operation of all parties con cerned is invited to socuYo that end. I therefore recommend that a special appro priation bo made at the earliest day prac ticable to enable the commissioners on' the part of the United States to return to their labors without delay. THE CONDITION OF CUBA. Jt is with regret that I have again to an nounce a continuance of the disturbed con dition of the island of Cuba.. No advance toward the'pacification of the discontented part of the population has been made, while tho. insurrection has gained no ad vantages and exhibits no more of elements of power or of prospects of ultimate suc cess than weroexlilbitedayearago, Spain, on the other hand, has not succeeded in its repression, and the patties stand ap parently in the same relative attitude which they have occupied for a long time past. Tins contest lias lasted now for more limn four years. Were it seen at a distance from onr neighborhood we might lie indifferent to its result, although hu manity could not be unmoved by many of its incidents wherever they might occur. It Is, however, at onr door. 1 cannot doubt that the continued maintenance of slavery in Cuba is among the strongest in ducements Ip the continuance of this strife. - A terrible wrong is thenatural cause of a terrible evil. The abolition of slavery ami the introduction of other* reforms in the administration of the government in Cuba could not fall to advance the restora-« tion of peace and order. It is greatly to bo hoped that the present liberal government of Spain will voluntarily adopt this view. The law of' emancipation, which was passed more than two years since, has re mained unexecuted in the absence of regu lation for its enforcement. It was but a feeble step toward emancipation, but it was the recognition of right and was hailed as such, and exhibited Spain in har mony with the sentiments of humanity and of justice,and in sympathy with other powers of tho Christian and civilized world. Within the first few weeks the regulations for carrying out tho law of em ancipation have been announced, giving evidence of tho sincerity of tho present government to carry Into effect the' law of 1870. 1 have not failed tp urge the consideration of wisdom in tho policy and tho justice of a more effective system for tho abolition of a great evil which oppresses a relic and continues a bloody ami destructive contest close to our border, as well as the expediency and the justice of conceding reforms of which the propriety Is not questioned. lam deeply impressed witli tho conviction that tho continuance of slavery is one of the most active causes of tho continuance of tho unhappy condition in Cuba. I regret to believe that citizens of the United States, or. those claiming to bo such, are large holders in Cuba of what is there claimed as property, but which is forbidden and denounced by tho laws of the United States. They aro thus, in defiance of tho spirit of our laws, contributing to tho continuance of tills distressing and sicken ing contest. In my last annual message 1 referred to Ibis subject, and I again re- commend such legislation as may bo pro per to denounce and, If not prevent, at least to discourage American citizens from holding or dealing In slave?. THE SOUTH AMERICAN REPUULICS. And It is gratifying to announce that ratifications of the convention concluded under tho auspices of this government be tween Spain on the ono part and the allied republics of the Pacific on the other, pro viding for an armistice, have been ex changed. A copy of tho instrument is herewith submitted. It Is hoped that this may be followed by permanent peace be tween the same parties. The differences which atone time threatened the,mainte nance of peace between-Brazil arid tho Argentine republic is is hoped are in the way of satisfactory adjustment, With these states, as with the republics of Cen tral and South America, they continue to maintain the moat friendly relations. It Is with regret, however, I announce that the government of Venezuela has made no Further payment of the awards under the convention of' tho ,25th of April, - iB6O. That republic is understood to; bo now almost, if not quite, tranquil-; Izcd. Its to be hoped therefore that it will lose no time in providing for the unpaid balance of its debts to tho United States, which, having originated in injuries to our citizens by Venezuelian authorities, and having been acknowledged pursuant to a tfeaty in tho most solemn form known among nations, would seem to deserve a preference over debts of dif ferent origin and contracted in a different manlier. This subject is again recommen ded to the attention of congress, for such action as may be deemed proper. RELATIONS WITH JAPAN AND CHINA. Our treaty relations with Japan remain unchanged. An imposing embassy from that Interesting and progressive nation visited this country during the year that is passing, but being unprovided with powers for the signing of a convention in this country no conclusion lu that direction was reached. l,t is hoped, however, that Interchange of opinions which took place during their stay in this country has led to mutual appreciation of the interest which may bo promoted. When the revision of the existing treaty shall be undertaken in this connection 1 renew my recommenda tion of one year ago, that to give import ance and to add to the efficiency of our diplomatic relations with Japan and China, and to further aid in retaining the good opinion of those peopleand to secure to the united States Its share of the commerce destined to How between those nations and the balance of the commercial world, an appropriation be made tp support at least four American youths in each of these countries, to serve as a part of the official family of our ministers there. Our repre sentatives would not even then be placed upon an equality with tbe representation of Great Britain or of some other powers. As now.situated our representatives in Japan and China havo to depend for in terpreters and translators upon natives of those countries, who know onr language Imperfectly or proouro for the occasion the services of employees in foreign business, houses, or the interpreter to other foreign ministers. I ronew the recommendation made oh a p previous occasion of the transfer, to tho ; department of the interior, to which these seem more appropriately to belong, of all the powers and duties In relation to the territories with, which the department of state Is now charged by law or by custom. Congress from the beginning of the gov ernment Ims wisely made provision for the relief of distressed seamen in foreign coun tries. No similar provision, however, Ims hitherto been made for the relief of citi zens in distress abroad other than seamen. It Is understood to bo customary with other governments to authorize consuls to extend such relief to their citizens or subjects in certain cases. A similar au thority and an appropriation to carry it Into effect are'commended in case of citi zens of the United States destitute or sick. Under such circumstance it is well known that sucli citizens resort to foreign coun tries in great numbers. Though, most of them are able to bear the expenses inci dent to locomotion, there are some who through accident or otherwise become pen niless and have no friends at home able to succor them. Persons in this situation must either perish, cast themselves upon the charity of foreigners or bo relieved at the private charge ot our own oflicers, who, even with their most benevolent dispositions, have nothing to spare for such purposes. Should the au thority and appropriation asked for be granted care will be taken to carry the be neficlenco of congress into effect that It shall not bo unnecessarily ot unworthily bestowed. the tkeAsuhy The moneys received and converted in to the treasury during tho fiscal year end ed Juno 00,1872, were: From customs, $210,370,287.77: from sales of public lands, $2,075,714.14; from internal revenue $130,- 042,167.02; from tax on national bank cir culation, etc., „§G52,030,039; from Pacific railroad companies, $700,801.87; from cus toms, fines, etc., $1,136,432.04; from fees,, consular, patent land, etc., $2,184,095.02; front miscellaneous sources. $4,412,204.71; total ordinary receipts, $304,094,220.01; from premium on sales of coin, §94,412,- 737.05; total not receipts, $374,106,807.00; balance In treasury June 10,1871, $lOO,- 030,700,09, including unavailable; total available cash, $484,042,070.15. Tho net expenditures by warrants during tho same period wore: For civil expenses, $16,180,050.20; for foreign intercourse, $1,830,309.14; Indians, $7,001,728.82; pen sions, $28,030,402.70; for military establish ment, Including fortifications, river and harbor improvements, and arsenals, $35,- 372,157.20; for naval establishments. In cluding vessels and machinery, and im provements at navy yard, $21,249,809.00; for miscellaneous civil, including pnbll buildings, light bouses and collecting the revenue, 042,958,320.08; interest on the public debt, $117,353,830.72; totql, exclu sive of principal and premium on the public debt, $270,059,005.91; for premium on bonds purchased, $0,958, 200.70; for redemption of the public debt, §00,900,253.54; total, $100,918,530.30; total net disbursements, $377 ;478,110.11; balance In the treasury June 00, 1802, $l(/C,504,- 050.94; total, $484,042,070.15. From-the foregoing statement it appears that the net reduction of the principal of tho debt during tho fiscal year ending June 30,' 1872, was $99,000,250.54. The source of his reduction Is as follows: Net ordinary receipts during tho year, $301,094,220.91; net ordinary expenditures, Including Interest on the public debt, $270,003,- 605.91; total, $941,340,340; add amount received from premium on sales of gold in excess of the premium pil'd on onds purchased, $240,437,080. Add the amount of the reduction of the cash bnl-- ance at the close of the year, accompanied with same at the commencement of the year, $3,371,348.00; total, $9,990,020,304. Tills statement treats solely of the princi pal of the public debt. .By the monthly statement of tho public debt, which adds together tho principal, interest due and unpaid; and interest accrued to date, not due, and deducts tho cash in tho treas ury as ascertained on the day of publica tion, Tho reduction was $100,544,591.28. The source of . this reduction is as follows: Reduction in principal account, $09,900,003.54; reduction in. unpaid Inter est account, $3,330,902.90; total, $103,290,- 950.00; reduction In cash on hand, $2,740,- 405.22; total, $100,044,491.28. On the basis of tho last table the statements show a re duction of the public debt from tho first of March, 1809, to tho present time as fol lows: From March 1,1800,. to March 1, 1870, $87,134,782.84; ‘ from March 1, 1870, to March 3,1871, $117,010,080.20; from March 1, 1871, to March 1, 1872, $04,805,018.94; from March 1,1872, to November 1, 1872 .(eight months), $01,017,207.81. Total, $000,608,990.87. As with the great reduction of taxation by tho acts of congress last' ses sion, tlio expenditure of the government in collecting the revenue will bo much re duced for the next fiscal year. It is very doubtful, however, whether so vexatious a burthen upon any people will bo practi cable for the present at all, even as a measure of justice to the holders of the nation’s certificates- of indebtedness. X would recommend.that no more legislation bo had on this subject unless it he to cor rect errors of omission or commission in tho present law until sufficient time has elapsed. to prove that It' can be done and shall leave sufficient revenue to meet tho current expenses of the government, pay tho interest on the public debt and prpvido for tho sinking fund established by law'. Tho preserva tion of our national crcdlt.is .of tho high.- ,cst importance. Next In Importance to this comes a solomfi duty to provide a note currency of fixed unvarying value.-as cam pared with gold, and as soon ns practica ble, Having due regard for tho interests of the debtor class and the vicissitudes of Irado and commerce ‘convert! ole into gold at par. The report of tho secretary of. the war department shows the expenses- of that department for the.fiscal year ending June SO, 1871, to be $25,709,991.82, and for the fiscal year ending Juno 30,1872,t0 ho $35, • 372,157.20, showing-a reduction in favor of the last year of $402,831.02, The esti mates for military appropriations for the next fiscal year ending June SO, 1873, arc $33,-801,378.78. The estimate of tho chief engineers are submitted separately for fortification, river and barbor improvements, and for public buildings and grounds and tho Washington ncqncduct. The affairs of the freedmou’s bureau have all been transferred to tho war de partment and regulations .have been put Into execution for tbe speedy payment of bounty, pay, etc., duo the colored soldiers properly coming under that bureau. - All war accounts for money and proper ty prior to 1871 havo been examined and transmitted to tho treasury for final settle ment. During the fiscal year there have been paid for transportation on railroads $1,309,000, of which $800,857 was over tho Pacific railroad. For transportation by water, $020,373.52, and by stage $48,975.84, and for tho purchase of transportation an imals, wagons, hire of teamsters, etc., $921,050.01. About $70,000 have been col lected from southern railroads during the year, leaving about $4,000,000 still duo. The quartermaster has examined, and transmitted to the accounting officers for settlement $307,172.72 of claims by loyal citizens for quartermasters’-stores during the war. Subslstancfc supplies to tho amount of $890,48.12 have been Issued to the Indians: Tho annual average mean strength of thearray up to date Is 24,101 white and 2,494 colored soldiers. The total deaths for' the year reported were 007 white and 54 colored. The distribution of tho medical and sur gical history of the war is yet to bo order ed by congress. , There exists an absolute necessity for a medical corps of the full number, established by act of congress of July 28, 1800, there being now fifty-nine vacancies, and the number of successful • candidates rarely exceed eight or ten in any one year. The river and harbor improvements have been carried on with energy and economy though many are only partially com pleted, and the results have saved to com merce many times tho amount expended, the increase of commerce, with greater depths of channels, greater security in navigation, and the % saving of time, adds millions to the wealth of the country, and increases the resources of the government. Tho bridge across the Mississippi river at llock Island has been completed, and the proper site has been determined upon for the bridge at La Crosse. Tho able and exhaustive report made.by tho commis sioner appointed to investigate tho Sutro tunnel has been transmitted to congress. The observations and reports of the sig nal office have been continued, and sta tions have been maintained at each of tho principal lake, seaport and river cities.- Ten additional stations have been estab lished in the United States and arrange ments have been made for an exchange of reports with Canada, and a similar ex change of observations is contemplated with the West India islands. The favorable attention of congress is invited to the following recommendations of the secretary of war: "A discontinuance of the appointment of extra lieutenants to serve as adjutants and quartermasters. Tim adoption of a code providing specific penalties for well de fined offenses, so that the inequality of sentences adjudged by courts martial may bo adjusted. The consolidation of ac counts under which expenditures are made as a measure of economy. A roapproprla tion of the money for the construction of a depot at San Antonio, the title of the site doing now perfected. A special not placing the cemetery at the city of Mexico, on the flame basis as other national cemeteries; authority to purchase sites for military posts in Texas; ; tho appointment of com missary sergeants from non commissioned officers as n measure for securing the hotter caro and protection of supplies; nn appro priation for the publication of the cata logue and table of the anatomical section of tho army medical priation of tho amount for the manufac ture of breech loading arms; should the selection be so delayed by the board of officers as to I'envo the former appropria tion unexpended at* the close of jho fis cal year, the sale of such., ar senals east of tho Mississippi ns can bo spared and tho proceeds applied to the establishment of one large arsenal of construction and repair 'upon the Atlantic coast and tho purchase of a suitable site for a proving and cxperlmon tnl ground for Heavy ordnance. Tho ab rogation of laws winch deprive Inventors In tho United States service from deriving any benefit-from their inventions. The repeal of' the law prohibiting promotions in tho staff corps; a continuance of the work upon coast defences; tho repeal of the seventh section of the act of July in, 1860, taking from engineer soldiers the per diem granted to other troops; a limita tion of time for the presentation of old war claims for subsistence supplies under the act of July 4,180-4, and a modifica tion in tho mode of the* selection of cadets for tho military academy in or der to enhance tho ’ usefulness of the acad emy, which is impaired-by reason of the largo amount of time necessarily expended in giving new cadets a thorough knowl edge of the more elementary branches of learning, which they should acquire be fore entering tho academy. Also, an ap propriation*, for philosophical apparatus, and an increase in tho • numbers and pay of • 'the military acade my band. The attention of congress will be called for . tho more ' certain and cheaper transportation of the con stantly increasing surplus of western and southern products, to the Atlantic sea board.” Tlio subject Is ono that will force itself upon the legislative branch of the govern ment sooner or later,, ancf I suggest that immediate stops be taken to gain all avail able information to insure equable and just legislation. THE, GREAT BOUTIIEHN CAXAL... The'route to connect tho Mississippi valley with tho Atlantic ocojin at: Charles ton, South Carolina, and. Savannah, Georgia; by water, by the way of the Ohio and Tennessee rivers and canals and slack water to the Savannah and Ocmulgee rivers has been surveyed, and a report made by an accomplished engineer .officer' of the army. The second and third new routes will bo prepared for the consldera- Tion of congress, namely, by an extension of tho Chesapeake rfhd Ohio canal. 1 am not prepared to recommend government aid to these or other enterprises until it Is already shown they are not only of a national Interest, hut when completed they will beef a value commensurate with their cost. • That production increases more rapidly than the moans of transportation In our country lias begn demonstrated by pant ex perience that the unprecedented growth in population and products of tlio whole country will require additional facilities and cheaper onea for .the more bulky arti cles of commerce, to reach tide water, and a market .will bo demanded In the near fu ture is equally demonstrated. I would therefore suggest cither a committee or • commission be .authorized to consider this whole question - and to report to congress at . some future day for its -bolter guidance in on this important subject. Railroads of the country have been rapidly extended dttr ing the last few years to meet the growing demands of production, and reflect much credit upon capitalists and managers en gaged. In addition to these, a project to facilitate commerce by the bunding of a ship canal-around Niagara falls, on the United States side, which-has been agita ted for many years, will no doubt bo called to your attention aithis session. Looking to the great future growth.of country, and increasing. demands of commerce, it might be well while on this subject to only to have examined and reported upon the various practicable routes for connecting the-Mississippi with tide'water on the Atlantic, but the feasibility of an almost continuous land locked navigation • from Maine to the Gulf of Mexico. Such a route along our coast .would be of great value at all times, and of inestimable value in case of a foreign war. Nature has pro vided the greater part of this route and the obstacles to bo overcome are easily within the skill of the engineer. I have.not al luded to this subject with the view of hav- ‘ ing any. further expenditure of public money at this time than may be necessary to procure and place all the necessary In formation before congress in an authentic form-to enable it hereafter, if deemed prac ticable and worthy, to legislate on'the sub ject without delay. THE NAVY. The report of the secretary of the navy, herewith accompanying, explains fully the condition of that branch of the public ser .vice—lts wants and deficionces, expenses incurred during the past year and appro priations for the same. It al§o„ gives a complete history of the services of the navy for the past year, in addition to US regular service. It is evident that, unless early stops are taken to preserve our navy that In a very few years the United States will i)e the weakest nation upon the ocean of all the great powers. With an energetic apd progressive business people like ours, penetrating and forming business relations with every part of the known world, a navy strong enough to command the re spect of .our flag abroad is necessary for the full protection of their rights. I would therefore recommend careful considera tion by congress of the recommendations made by the secretary of tho navy. THE POST OFFICE DEPARTMENT. The accompanying report of tho postmas ter general furnishes -a full and satisfae* torv exhibition of tho operations of tin’ •post oftlce department during tho year. The ordinary revenues of tho department for the fiscal year ending Juno SO. 1872, amounted to $21,015,420.37 and tho expen ditures to $20,038,102; 31. Compared with the previous fiscal year tho increase of rev enue was $1,878,380.05, or 9.37: per cent., and tho increase of such expenditures $2,- 2 08,088.23, or l).2‘J per cent Adding to the
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