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