PRESIBENT'S MESSAGE. WABntKOTOtt, December? To the Senate ami ttmtt of Bcpretentativeti In submitting my seventh annual message to congress, In tills cen tennial year of our national existence) as a freo and Independent people, It affords me great pleasure to recur to the advancement thai lias been made from the time of the colonies, one Hundred years ago, "We were then a people numbering only three millions; now wo number mora than forty millions. Then, industries were confined almost exclusively to the tillage of tho soil; now, manufactories absorb much of tho la bor of the country. Our liberties remain unim paired, the bondsmen uaro been freed from sla very; we hare become possessed of tho respect If not the friendship of all civilized nations; our ''progress has bean sreat in all tho arts. In science, agrjcnltnre, commerce, navigation, min ing, mechanics, law, medletne, etc.; and m gentral education the progress Is like wise encouraging; our thirteen states liavo be come tntrty-elgbt, Including Colorado, which bas taken tho Initiatory step to become n state, and eight territories. Including tho Indian terrl. tory and Alaska, and excluding Colorado, mak ing a territory extending from tho Atlantic to ttrePoclfio: on the south we have extended to the gulf of Mexico, and In tho west from the Mississippi to tho raclflc. Ono hundred years ago the cttton gin, tho steamship, the railroad, the telegraph, the reaping, sowing and modern Stinting machines and numerous other lnven ons of scarcely less value to our business and happiness were entirely unknown. In 117(1 manufactures scarcely existed even In name all through our rait territory. In 1370 more than 2,000,010 of persons were employed in manufactures, producing more than $2,100, tOO.OOO of products In amount annually, nearly equal to oar national debt- From nearly the whole of the population of 1776 being engaged In the ons occupation of agriculture, fii 1870 so nu merous and diversified had become the occupa tions of our people that less than six millions out of moro than forty million were to engaged. Tho extraordinary effect produced In our country by a resort to divers I. flod oocupatlons has built a market tor products for fertile lands distant from tho seaboard and the markets of tho world. Tho American sys tem of locating various manufactures next to the plow and pasture, and adding connecting railroads ad .steamboats, lias produced In oar distant Interior country a result noticeable by tho Intelligent part of all commercial nations. Xhe Ingenuity and skill of American mechanics have been demonstrated at homo and abroad in a manner imott Battering to their prldo. lint for the extraordinary genius and skill of our mechanics, the achievements of our agrl caHurallsts, manufacturers and transporters throughout the country wouldhavo been Impossi ble of attainment. The progress of the miner lias also been great. Of coal our production was small; now many millions tons nro mined annu ally. Bo with Iron, which formed scarcely nn appreciable partofonr products half a century ago; we now produce moro than the world con sumed at the beginning or our national existence, lrtad, sslno and copper, from being articles of import; we expect to bo largo exporters of, in tho near future.' Tho dovoiopmcut of gold and silver In tho United States andtcrrttorlcsnasnot oniy been remarkable, but has had a largo Influ ence upon tho business of nil commercial nations. Our merchants in tho last hundred years have had a success and have established a reputation for enterprise, sagacity, progress and Integrity unsurpassed by people of older nationalities. This good name Is not confined to their homes, but goes out upon every sea and Into everv port where commereo enters. With equal prltlo we can point to our progress In all of tho learned professions. As wo are now about to enter upon our second centennial, commencing our man hood as a nation. It Is well to look buck upon tho past and study what will be best to preserve and advance our future greatness. From tho fall of Adam from his trangrcsslon to tho present day, no nation has ever been freo from threatened danger to Its prosperity mid happiness. Wo should look to the dangers threatening us nnd remedy them so far as lies In our power. Wo are a rormbllo wherln one is as good as another bo fore tho law. Under such a form of govern, merit It Is of the greatest Import ance that all should bo possessed of education ana intelligence enough to cast a vote with a right understanding of Its meaning. A large association of Ignorant men can not for any considerable period oppose a successful re sistance to tyranny and oppression from the ed ucation of a few. but win Inevitably sink Into acquiescence to the will of Intelligence, whether directed bv the dexaacocuo or bv nrlestcraft. hence the education of the masses becomes of the first necessity for the preservation of our Institutions. They aro worth preserving because they have secured the greatest good to the greatest proportion of the population of any form ot government yet devised. All other Forms of government approach it Just In proportion to the general dlntulonof education ana lndenendsnee of thought and action. As tho primary step, therefore, to our advancement In all that has marked our progress In tho past century, x suggest tor your earnest consm e ration and most earnestly recommend that a constitutional amendment bo submitted to the legislatures of tho several stttes for ratification, making It the duty of wicudi uio Dorcrsi sum-a tu cauiun&n miu lor ever maintain free public schools adequate to tho education ot all the children tn tho rudimentary branches within their respective limits Irrespec tive of sex, color, birthplace or religion, and for. bidding the teaching In said schools of religions, atheistitor pagan tenets, and prohibiting the granting of any school funds or school taxes or any part thereof either by legislative, municipal or other authority for tho bene lit, or In aid, di rectly or Indirectly, of any religious sect or de nomination, or mild or for tho benefit of any other object of any nature or kind whatever. In connection with this Important question I would also call your attention to the Importance of cor recting an evil that If permitted to continuo will probably lead to great troablo In our land before the close of the nineteenth century. It is uie accumulation oi vast amounts oi untaxea property. In 1830, 1 believe, tho church prop, crty of the country which ealdno tax.niunlci- I8A0 the amount bad doubled. In 1878 It is about p,uuu,a,wu. jjyiorAi.wrinouicuecK, it Urate to sav that this nronertv will reach a sum t- ceejlng f ,000,00) ,000. So vast a sum receiving all the protection and beneBtsof the government without, bearing tta proportion of the burdens and expenses of the same, win not bo looked at acquiescently oy wose wno navetopay tuo taxes in a growing-country, where real estate enhances so rapidly with time us In the United States. There Is scarcely a limit to the wealth that may be acquired by corporations, religious or other wise If allowed to retain real estate without taxa tion, j no existence or ho vast a property as hete alluded to without taxation may lead to sequestration, without constitutional authority uuu uirougu uiuuu. x wouiu suggrsi me taxa- strlctloru. church edifices. Our relations with most of tho foreign powers continue on a satisfactory and friendly looting. Increased Intercourse, the extension of com merce, and the cultivation of mutual interests, have steadily Improved our relations with the large majority of Uie powers of the world, ren- umiuK nracucauio toe pcaceiiu solution or ques tions which from tlmo to time necessarily arise, leaving few whloh demand extended or turttcu lar notice. The correspondence of tho department of state wn.u wiu vux uimumatio rcpresenta ives auroaa Is transmitted herewith. I am hapnv to an- noaoce the passage of an act by the gensral loij tnrusiit of congreM.f or the abortion of servl W In the rorttfgueurb Monies. It is to be hoped such legislation may bo another step toward tho great consummation to be reached when no man shall bo perjnlttcd, directly or In directly, under any gulto, excuse or form of law, to hold his fellow man In bondage. I am of opinion nlro that It Is tho duty of the United States as contributing toward that end and required by tho spirit of the age In which wo live to provide by sultablo leg islation that no citizen ot the United States shad hold slaves as property in any other country or be Interested therein. Chill bas mado reparation In Uie case of tho whale ship Good Itoiurn, seized with out sufficient causo upwards of forty years ago, though she had hitherto denied her accounta bility. The denial was never acquiesced in by this government, and the Justness of the claim has been so earnestly contended for that It has been gratifying that she should havo at last ac knowledged It. Tho arbitrator In tho case or the United 8tates steamer Montljo, for the selznrennd detention of which the govornmentof tho United State of Colombia was held accountable, has decided In favor of the claim. This decision has settled n question which had been pending for several years, und which, more or less, oisturbedtho good understanding which It Is doelrable should bo maintained between tho two republic. A reciprocity treaty with tho king of tho Hawaiian islands was concluded some months since As It contains a stipulation I hat It shall not tako effect until congress shall enact tho pro per legislation for that purpose , copies of the In strument are herewith submitted In order that If such should be the pleasure of congress tho necessary legislation upon the subject may bo adopted. In March lost an arrangement was mado through Mr. Uushlug, our minister In Madrid, with the Spanish government, for tho paym'ent by the latter to tho United States of tho sum of $80,000 tn coin for tho purposo of tho relief of the families or persons of tho ship's company and certain passengers of tiio Vtr- SUitus. This sumjwas to nave been paid in threo Mtallmentsof two months cadi. It is due to tho Spanish government that I should stato that tho payments wero fully and spontaneously antici pated by that government, and that tho wholo amount was paid within but a few days more than two months from date of agreement, a copy of which is herewith transmitted. In pursuance of thelerms of tho adjustment, I have directed distribution of tho amount among the parties entitled thereto, Including tho ship's company and such of tho passengers as vrcro American citizens, and payments aro niade accordingly on application to tho parties thereto. Tho past year has furnished no evidence of an approaching termination of tho ruinous conflict which has been raging for seven years In Cuba. Tho same disregard ot the laws of civilized war faro and of tho Just demands of humanity which havo herctotbro called for expressions of con demnation from tho nations or Christendom havo continued tnblackeu the sad scene. Desolation, ruins nnd pillage nro pervading tho rich tleldsof ono of the most fertllo and productive regions of the earth, nnd tho Incendiaries' torch, tiring plantation! and valuablo factories and buildings, Is the ntzent marking tho alternate odvanco or the retrci of contending parties. Tho protracted continuance of this strife seriously affects tho interests of ull com mercial nations, but thoso of tho United States moro than others by reason of Its closo proximity, Its larger trado nnd Intercourse with Cuba and tho frequent, and intliuato, personal and social relations which havo grown up between Its citi zens and those of tho Wand; moreover the pro. party of our citizens In Cuba is largo ami Is run. dered insccuio nnd depreciated in vnl uo and In capacity of production by tho contlnuauco of tho stilfo and tho unnatural modo of Us conduct. Thesamois truo, differing only In degreo with respect to tho Interests and tho people of other nations and tho absence of any reasonable assurnnco of a near termination of the conflict, must of necessity compel tho states thus buffering to consider what tho Inter ests of their own peoplo, nnd their duty toward themselves may demand. I havo hoped that Spain would bo enabled to establish peace in her colony, to afford security to tho property nnd tho Interests of our citizens, nnd to allow legiti mate scono to trado and commereo and tin uat. ural productions of tho Island, llecauso at' this hope, and from nn oxtrcmo reluctanco to Inter fere in the most remote manner in the affairs of another and a friendly nation, espe cially of ono whoso sympathy and friend ship In tiio struggling Infancy of our own existence must ever bo remembered withgra'tl. tude, I havo patiently and anxiously awaited tho Firogross of events. Our own civil conflict Is too ccent for us not to consider the difficulties which surround a government distracted by a dynasty rebellion at homo, at the same time that It had to cope with a separate Insurrection in a distant colony ; but whatever causes my have produced tho situation which so grievously afreets our interest, it exists with all it-s attend ant evils, operating directly upon this country and Its people. Thus far all the efforts of Spain havo proved abortive, and time has made no Improvement In tho situation. The armed bands on cither side now occupy nearly tho same ground as In the past, with the differ ence, from tlmo to time, of more lives sacrificed , moro property destroyed,.and wider extents of fertile end productive fields, and more and moro of valuable property constantly and wantonly sacrificed to the Incendiary's torch. In contests of this uaturo whero a considerable body of peoplo who havo attempted to freo them selves of the control of tho superior government have reached such a iiolnt, in occupation of territory, In power, nnd In general organization as to constitute In fact a body olltlc, having u government In substanco as well as In name, possessed of the elements of stability and equipped with, tho machinery for tho administra tion ot Internal police and tho execution of tho laws, nnd able to admlnUter Justloe at home, as well us in Its dealings with other powcr.s It Is within tho province of thoso other powers to recognize its existence as a new ami Independent nation. In such cases other nations simply deal with an actually existing condition of things und recognize as of the powers of tho earth that body iiolltlc, which, possessing tho necessary element, has In fact become a new power. In a word, the creation of a new fetato Is a fact. To establish, tho condition of things essontlal to tho recog nition of tills fact, there must be a jvcople, occu pying a known territory, united under some known and decided form of government, ac knowledged by thoso Bubject thereto, Invihlcii the t unctlonsof the government are administered by equal methods competent tn mete out J ustlco to clizcus and strangers, to afford remedies for public ami for private wrongs and ablo to assume the correlative Internatlonalobllgatiou, and capablo of performing tho corresponding In tcruatlonal duties rosultlug from Its acquisition of sovereignty. A power should exist complete tn Its organization, ready to tako and able to maintain Its placo among tho nations of tho earth. While conscious that the insurrection In Cuba has shown ustrength and endurance which inikoitatlcast doubtful whether it be In tho power of Spain to subdue it, it scams unques tionable that no such civil organization .exists which may bo recognized as an Independent gov ernment capablo ot performing Its International obligations und entitled to be Treated as ono of tho powers of tho earth. A recognition under such circumstances would be inconsistent with tho facts and would compclthepowcrgrantlnglt soon to support by force (lie government towhich It hail really given its only claim of exlstenco. In my Judgment the United States should ad hero to the policy nd principles which have heretofore been its sure and siilu guides tn like contests be tween icvolted colonies and their mother conn, try, and acting only upon the clearest evldenco should avoid auv liusslblllty of suspicion or of Imputation. A recognition of the Independenae of Cuba being In my opinion ivpraclicablo and In. defensible. the- question which next presents Itself is that of tho "recognition of belligerent rights lu the patties, to the cojitest. In a former message to congreti I had occasion to consider tills question and reached tho con clusion that tho conflict In Cuba, dreadruland devastating as wero Its Incidents, did notrlseto the fearful dlgnKy or war. Regarding It now, aitcr Ibis lapse of time, I am unable to see that any notable success or any marked or real ad vance on the part or tho Insurgents has essen tially chanscd the character of tho contest It has aoqufrcd grrnter age but not greater or moro formldablo proportions. It Is possible that the nctsof foreign powers, and even acts, or ttpaln herself, of this very nature might bo pointed to In defense of suen recognition; but now, as in past history, the United States should carefully avoid tho falso Uihts which might lead It Into thi mazes of doubt! ul law, or questionable pro priety, and adhere rhjlrlly and sternly to Hie rule which has been Its guldo, doing only tbat which is right and honest and of good re- IKlft. Tho question of according or of withholding rights of belligerency must bo Judged In every caso In view of tho particular attending facts. Unless Justified by necessity It Is always and Justly regarded as an unfriendly act and a grn. tultoua demonstration of moral support to tho rebellion, it Is necessary and It Is required when tho Interests nnd rights of another government, or of Its peoplo are so far affected by a jwndlng or civil conlllct to require a dcflnltlou ot Its relations to tho parties thereto, but this conlllct must bo one which will bo recognized In tho sense or International law as war. llelllgcr once, ton, Is a fact. Tho mere existence of contending armed bodies nnd their occasional conflicts do not Constltuto war In the sense re ferred to. Applying to the existing condition of affairs lu Cuba the tests recoghized by publicists and writers on international law, and which havo been observed by nations of dignity, hon. esty and power, when freo from sensitive or selfish and unworthy motives, I fall to find In tho Insurrection the existence of such a substan tial political organization , real palpable and man ifest to the world, having tho tonus and capablo of tho ordinary functions of government toward its own peoplo and to other states, wltii courts for tho administration of Justice, with a local habitation, possessing such organization of force, such material, such occupation of ter ritory as to take tho conceit of the contest out or tho category or a mero rebellious Insurrection or occasional skirmish, and placo It on tho terilhla tooting of war, to which a recognition of bellig erency would aim to elevate it. Tho contests, moreover, Is solely on land ; the Insurrection has not possessed Itself ot'a slnglo seaport, whenco It may send forth the flag, nor has It any means or communication with foreign powors, except through the military lines of Its adversaries. No apprehension of any of those sudden and dlfllcul t complications which a war upon tho ocean is apt to precipitate upon tho vessolj, both commercial nnd national, nnd upon the consular officers of other powers calls for the definition of their relations to tho parties to tho contest. Considered as a question of expediency, 1 regard the accordanco of bclKgcront rights still to be as unwise and premature as I regard It to bo at present indcl'enslblo ns a raoasuro or right. Such recognition entails upon tho country ac cording It the rights which flow from It, difficult and complicated duties, and require tho exac tion from the contending parties of the strict ob servance or their rights and obligations. It con fers tho right of soarch upon tuo high seas by vessels of both parties, it would Bubject tho carrying of arms and munitions of war which now are transported freely ami without Inter vention In tho vessels of the United States to detention und to jiosslble selzuio. it would givo rise to countless vexatious questions, would roieaso tho parent government lrom responsibility lor acts dono by tho Insurg ents ami would Invest Spain with the right to ex ercise tho suitcrvislon recognized by our treaty of 1795 over our enmmcrcu on tha high seas, a very largo part of which, in its traffic between tho Atlantic and gulf states und betwocu all of them and tho states upon the 1'nclflc, passes through tho waters which wash tho, shores of Cuba. Tho exeiclso of this supervision could Bcareely fall to lead, If not to abuso, certainly to collisions perilous to tho peaceful relations ot the two states. There call bo little doubt to what re-" suit such supervision would bel'oro long draw tills nation, itwouldbounworthyoftho United States to Inaugurate tho possibilities or such le sult by measures of questionable right or ex pediency or bv any indirection. Anart from any oucstlon of theoretical rlnhts I am satisfied that while tho accordance or bel- llgerent rights to tho insurgents In Cuba might givo to mem a nopo ami an inuueemeut to pro tract tho struggle it would be but a deluslvo hope, and It would not remove the evils which tills government and its people aro experiencing, but would draw tho United States government Into complications which It has waited long and already suflcred much to avoid. Tho recognition of Independence, or of the belligerency, being thus, In my Judgment, equally Inadmissible, It remains to consider what course shall bo adopted. Should the conflict not soon bo brought to an end by acts of tho parties themselves, und should tho evils which result therefrom, afflicting all nations, nhd particu larly the United States, continue, In such event I am of tho opinion that other nations will be compelled to assume the resiionslbillty which de volves u;on them, and to seriously consider the only renfnlntng measures possible, mediation and Intermediation, Owing, perhaps, to tho largo expanse of water separating tho island from tho peninsular government, the want of harmony, ot personal sympathy between tiio Inhabitants of the colony and thoso sent thither to rule tiiem, and want of adoption of tho an cient colonial system of Europe to the present times, and te the Ideas which the events of the past century havo developed the contending parties appear to have within themselves no depository of common confidence to suggest wisdom when passion and excitement have their wav. and to assume thenart of lieaccmaker. In this view, In the earlier days of the contest,1! uie goou omces oi tue uuueu mates as a media tor wore tendored In good faith, without any sel fish purpose, In tho Interest of humanity, and in sincere frtcndshlp for both parties, though at the time declined by Spain with the declaration nevertheless that at a future time they would bo Indispensable. No Intimation has keen received that in the opinion of Spain that time has been reached, and yet the strife continues witli all its 'read horrors and all Its Injuries to the United States and other nations. Each party bcems 3Uto cupable of working great injury and asiage to tho oilier, as well as to all tho rela tion! and Interests dependent on tho ex lsteri e of peace on tho Island, but they Beem ln capa.te of reaching any adjustment, and both have tins far failed of reaching any adjustment, and bo) h have thus far failed or achieving any bliccess, whereby one party shall possess and control i'e Island to the exclusion of the other. Under th. so clrcumstantes the agency of others, either by .oedlatlon or by Intervention, seems to be tho on. alternative which must sooner or later be In.oVc- for the termination or the strife. At the same time, while thus Impressed, do not, at this time, rocommend tho adoption i, r any measure or Intervention. I shall be read at all times, and as the equal friends of tboso parties, to respond to a sugges tion that tho good others or the United Mutes will be acceptable to aid In bringing about a peaco honorable to both. It is due 'io Spain, so far as this government Is concerned', that the agency or a tulrd power, to which I h-'ne adverted, shall be adopted only as alastespt.Kllent. Had it been the desire or tho United States to Interfere tn the affairs of Ouoa repeated loppoitunlties lor so doing have been E resented, within tho laat few yevrs, but we averesililned passive and have performed our our whoty, duty and all International obliga tions tqitjpaln with friendship, fairness and fidelity, a;.id with a spirit of patience and for bearance J which negatives every possible sug. Sestlon of desire to Interfere or to add to the Ifflcultiea with which she has been surrounded. The goveinment ef Spain has recently sub mitted to. ur minister at Madrid certain pro posals whlcJa it Is boned may be found to bo tho basis lr not tho actual submldrm nf terms in meet tho requirements or tho particular griefs ui wuicn mm government nas jell llBeil entlllea to complain. These proposals have not yet reached mo In their full text. On their arrival they will be taken Into careful examination and may, I hope, load to a satisfactory adjustment oftho questions to which they refer, and remove Uie possibility of further occurrences such as have given rise to our Just complaints. It Is un derstood also that renewed efforts aro being mado to Introduce reforms lu the Internal administration oi the Island. Per suaded, however, that a proper regard for thn Interest or the United States and of Its citizens, entitle It to relief from tho strain to which It has been sub jected by the difficulties of .tho questions and the wrong ot losses which ariso from the contest in Cuba, nnd that tho interests ot humanity Itself demand the cessation of tho strlfo before the wholo Island shall bo laid In waste and larger sacrifices or life be made. I shall feel It my duty, should my hopes of a satl. factory ad iustmcnt or the early restoration of pea oc, and tiio removal or further causes of complaint bo unhappily dis appointed, to mako a further communication to congress at somo period not far rcmoto, and dur ing the present session, recommending what may then seem to me to bo necessary appropria tions to tho favorable consideration of Congress. The powers or Europo almost without excep tion, many of tho South American states, and even tho moro distant eastern powers havo manifested their friendly sentiment toward tho United States, nnd tho Interest of tho world In our progress, by taking steps to Join with us In celebrating the centennial of tho nation, and I strongly recommend that a a more national Im portance bo given to this exhibition by such legislation and by such appropriations as will lnsuro its success. Its valuo In bringing to our shores' innumcrablo useful works of art, In commingling of the citizens of rorclgn countries and our own, and the Interchanging of Ideas and manufactures will far exceed any pecuniary out lay wo may make. Tho freo zone, so called, several years tlnco established by tho Moxlean government in cer tain of tho states of that rcpubllo adjacent to our frontier remains In full operation, it has al ways been materially Injurious to honest traillo for It operates as an Incontlvo to traders In Mexico to supply without custom chargo the wants of inhabitants on this sldo tho Hue, nnd prevents tho samo wants from being supplied by merchants of the United States thereby to a coti sldernblo extent defrauding our rovenuo nnd checking honest commercial enterprise Depre dations by armed bands from Mexico on tho peo plo of Texas near tho frontier conltnue. Though the main object of theso Incursions Is robbing, they frequently result in tho murder ofunarmcd and peaceably disused persons, and In tome In stances even the United States post offices and mall communication have been attacked. Re newed remonstrances ujwu this subject have been addressed to tho Mexican government but without much apparent luTect. Tho military feico of Oils government disposable for service In that muttbr, Is quite inadequate to effectually guard the line, oven at those points where tho Incursions nro usually modo. An experiment of an armed vessel on f ho Itlo Graudo for that purposo Is on trial and It is hoped that If not thwarted by tho shallow ness of tho river and other national obstacles, It' may materially contrlbuto to tho protection of tho herdsmen of Texas. Tho proceedings of tho joint commission under tho convention between tho United States and Mexico oftho 4th of July, 1863,on tho subject of claims, will soon bo brought to a close. Tho result of these proceed ings will then bo communicated to congress. I am happy to announce lhat tho government or Venezuela hss.upon further consideration, practically abandoned Its' objections to pay to to United States that sharo ot its r venue which somo years sluco It allotted towards tho extin guishment of the claims of foreigners generally, in ttius reconsidering Its determination that government has shown a Just sense of sclf-re-spect.whlch cannot fall to reflect credit upon it In tho eyes of all peisons elsewhere, it U to be rcgelUrl, however, that its payments on account of claims of citizens or the United States are BtillBonieagro in amount, ami thatthe stipula tions of the treaty in regard to the sums to bo I'uui mm iud purlins wuen tneso payments i?.et0 to BKn P'Me, should havo been so signally f otsregaraea. Since my lost annual mtss&ira tbnexc.hanf.fi has been made of tho ratification of a treaty of commerce and navigation with Uelglum. and new conventions Willi tho Mexican rcpubllo for tho fuitbtr extension or the Joint commission respecting claims; with the Hawaiian Islands, for commercial reciprocity, and with tho Otta man empire lor extradition, allot' whlih havo been duly proclaimed. Tho court of commissioners of the Ala bama claims has prosecuted its Important duties very assiduously and very satitfactorvly. It con veued and was organized on tho 23d day of July, 1874 , and by the terms of tho act under which It was created was to exist for ono year from that dato, The act provided, however, that should It bo found Impracticable to complete the work of the court bel'oro tho oiplratlon of the year, tiio President might, by proclamation, ex tend tho tlmo of duiation, beyond the expira tion of ono year. Having received satisfactory ovldenco that It would be Impracticable to eom- Ileto the work within tho tlmo originally fixed, Issued a proclamation, a copy of which 1 pre. sent herewith, extending the term or tho dura tion of Uie court for a period of six months from and after tho 22d day or July, last. A report made through the clerk oftho court, communi cated herewith, shows the condition or the cal endar on tho 1st of November lust, and the largo amount of work which haa been accomplished. Tblrteen hundred and eighty two claims have been presented, ot which 682 had been disposed of at tho dato ot the report. 1 am lp formed that 1T0 rases were decided during the month otNovember. Arguments are being made and decisions given on the remaining cases wtth all tha dispatch consistent with tho proper considera tion of the questtons submitted. Many of these claims are lu behalf ot mariners who depend on the evidence of mariners whose absence lias de layed the taking or the return of the necessary evt dence. It Is represented to me that ft vtll be Im practicable for the court to finally dispose nf all cases before It within the present limit of Its dura tion. Justice to the parties claimant, who have been at large expense la preparing their claims and obtaining the evidence in their support, suggests a short extension to enable the court to dispose of all tho claims which have been presented. 1 recom mend the legislation which may bo deemed proper to enable the court to complete the work beforo 1 recommend that some BUltablo provision be marto by tho creation ot a special court, or by con ferring tm necessary Jurisdiction upon some ap propriate tribunal for ine consideration and deter mination ot the claims ot aliens agalnsUho govern Mfmtnf thnllnltiwl Hiatus, which have arisen with. In some reasonable limitation ot time, or which may hereafter, excluding all clalmsbarred by treaty rtmvlalnnwrtr nthpnvli Me to give proper consideration to these chums by the executive department of thegovernment. Such inerwiBe. niiaa uceu iuuuu iiiiimai. a tribunal svmiHl artnnl an nnnortunltv to aliens. other than Urltlsh subjects, to present their claims on account of acts committed against their persons or property during the rebellion, as also to those subjects of (ireat ltrltaln, whoso claims bavins arisen subsequent to l lie sthdayof April, 1SSS, could not be presented to the late commission, organized pursuant to the provisions of tbe treaty oOVasb- "ho electric telegraph hasbecomean essential and Indispensable agent la the transmission of business and social messages. Its operation on land and within the limit ot particular states. Is necessarily under tho control of the Jurisdiction within which It olenites. The lines on tha high seas, however, are not subject to the particular control of anyone f overnmont. in lbca a concession was granted by bo French government, to -a company which proposed to lay a cable from the shore of France to the United States. At that time there wts a tele graphic connection between tbe United States and the continent of Kurone, through the possessions of Great llrltatn, at either end of the line, under .control ot an association which bad at large out lay ot capital and at great cost, demonstrated the rracUcabllityoS mintelnlpg tucn aeuu ot con- munlcatlon. Tho cost of correspondence by this agency was great, possibly not too large at the time for a proper renumeratton for so hazardous and so costly an enterprise. It was however a heavy charge upon a means of communication which tbe progress In the social and commercial Intercourse, of the world found to be a necessity, and the oK tot nlng of rthls French concession showed that other 'capital than that already Invested was ready to entorlnto competition, with assurance of ade quate return for (heir outlay. Impressed wlffifho c5nT.lcV.on, thllt tnB Interests not only of the peoplo of the United States but of the world at largo de manded, or wonld demand the multiplication of such means of communication lietween separated continents, I was desirous that tho proposed connection should be made, but certain pro visions of this concession were deemed by me to be objectionable, particularly one which gave for a long term of years tho exclusive rlghtof telegraphic communication by submarine cable, between the shores of Prance and tho United States. 1 could not concede that any power should claim the right to land a cable on the shores of the United States ami at the same time deny to the United States, or to fts citizens or grantees, an equal right to land a cable on Its shores. Tho right to the control of the con ditions for tho laying of a cable within tho Jurisdictional waters of the United states to connect our shores with those of any for eign stato pertains exclusively to the gov ernment of the United States under such limitations of the conditions as congress may tm pose. In the abseneo of legislation by congress, I was unwilling on tho one hand to yield to a foreign state the right to say that fts grantees might land on our shores while It denied a similar right to our o people to land on Its shores; and on The other hand t was reluctant to deny to tho great Interests of the world, nnd of civilization, the facilities of such communication as wore proposed. I, there fore, wfthheld any resistance to the landing of the cable on condition that tho offensive monopoly feature of the concession bo abandoned, and that the right of any cable which may bo established by authority of the government to land upon JTrench territory and to connect with French land lines, and enjoy all the necessary facilities or privileges Incident to the use thereof upon as favorablo terms as any other company bo conceded as the result thereof. Tho company In ques tion renounced tho exclusive privilege, and the rep resentative of France was Informed that under standing this relinquishment to be construed as granting tho entire reclprocacy of equal facilities, which had been denied, tho opposition to the land ing ot the cablolwas withdrawn. Tho cable, under this French concession, was landed In the month of July, 1869, and has been an efficient and Tamable agent of commanlcatlon lietween this country and tho other continent. It soon passed under the con trol, however, of those who had the manage ment ot the cable eonncctfng Great llrltaln with this continent. Thus whatever benefit lo tho public might havo ensued fiom com petition between the two lines was lost, leaving only the greater facilities of nn additional line, and the additional security In caso of accident tooneot them. Hut these increased facilities and tills additional security, together wtth tho control of tho combined capital of tho two companies, gave also greater power toprovent tho future construc tion ot their lines and to limit the control of tele graphic communication between tho twj continents to those possessing the lines already laliT. Within a month past a cable has been laid, known as tho United states direct cable company, connecting tlio United Slates directly with Urvat llrltaln. As soon as this cable was reported to be laid In worWng order, the rates of tho consolidated companies wero greatly reduced. Soon, however, a break was an nounced lu this new cable, and Immediately the rates of tho other line, whleh had been reduced, were again raised. This cable being now repaired the rates appear not to lie reduced by the other Ithe from those lormerly charged by the consolidated companies. There Is reason to believe that largu amounts of capKal, both at homo and abroad, are ready to seek profitable f nvestment In the advance mentof this useful and most civilizing means of Intorcourso and correspondenco. They await, how ever, the assurance of the means and conditions on which they may safely bo made trlbutory tothe gen eral good. As these cable telegraph lines connect separate states, theso aro questtons which probably can be best, f f not safely, settled by conventions be tween tho respective states. In the absence, how ever, ot international conventions on the subject, municipal legislation may secure many lulnts which appear to me Important If not Indispensable, for tho protocttou of the public against tho oxtor tlons which may result from a monopoly of the right ot operating cables or from a combination be tween several lines. First. No lino should bo allowed to l.iml on tho shores of the United States under the concession from anothor power which docs not admit tbe right, of any other Hue or lines formed In tho United States to land and freely connect with and operate through land lines. Second. No line should bo allowed to land on the shores ot tbe United States which Is not by treaty stfpulatton with the government from whoso shores it proceeds, or by prohibition In Its charter or otherwise, to the satisfaction of this govern ment, prohibited from consolidating or amalgamat ing with any other coble telegraph line or combin ing therewith for the purpose of regulating and maintaining tho cost of telegraphing. Third. All lines should be bound to gtva prece dence In the transmission of the offictal messages of tho two oovernments between which It may be laid . Fourth. A power should be reserved to the two crovernments. either eontolntlv or to each, as re gards the messages despatched from Its shores, to nx a limit to the charges to be demanded for the transmission of messages. 1 present the subject to tbe earnest consideration of contrresn. In tha meantime, and unless ronffrewi otherwtse directs, I Shalt not oppose the landing of any telegraph cable which compiles with and operates to tho points above enumerated, but will feel It my duty to prevent the landing of any which does not cuniurm to inn nrst anu secona points as si&icu ami which will not stipulate to concede to this govern ernment the precedence tn the transmission of Its onlclal messages and will not enter Into satisfac tory arrangement wl th regard to fts charges. Among the pressing and Important subjects to which, in my opinion, the attention or congress should be directed are thoso relatmg to fraudulent naturalization and expatriation. The United States, with great liberality, offers its citizenship to all who, on good faith, comply with the require ments of law. Theso requirements are so simple, and upon as favorable terms to the emigrant, as the high privilege to whleh he Is admitted can or should permit. I do not propose any additional require ments to those to which tbe law demands, but the very simplicity and the want of unnecessary for mality In our law have made fraudulent naturaliza tion not unfrequent to the discredit and Injury of all honest citizens, whether natlvo born or .natur alized. Cases of this character are continually being brought to the notice of thegovernment by our representatives abroad, and also those of per sons resident In other countries, most frequently who, if they havo remained In the country long enough to entitle them to become naturalized, have generally not much over-passed that period and have returned to the country of their origin, where they reside, avoiding all duties to the United States by their absence and claiming to be exempt from all duties to the country of their nativity and of their residence by reason of the alleged naturaliza tion. It Is due to this government Itself and to tbe f;rcat mass of tbe naturalized citizens who entirely, oth In name and in fact, become clttzens ot the United States that the high privileges of citizenship of the United States should not bo held by fraud or In derogation of tbe laws and ot tho good name ot every honest citizen. On many occasions It has been brought to tbe knowledge of. the government that certificates of naturalization are held and pro tection or intcftereneo claimed by parties who ad mit that not only they were not within tbe United States at the Uuieot their pretended naturalisation but that they bare never resided In the United States. In others the certificate and record nf the court show on their face that the person claiming to l naturalized had not resided the required time tn the United States. In others It is admitted, upon examination, that the requirements ot law havo not been compiled with, in some cases even such certificates have been matters of purchase. Tbese are not Isolated cases, arising at rare Intervals, but of common occurrence, and which are reported from all quarters of tbe globe. Such occurrences cannot and do not fall to reflect upon the govern ment and Injure all honest rltlzens. Such fraud being discovered, however, there Is no practicable means within the control of the government by which the record of naturallzaUoii con be vacated, and should the certificate be taken up, as It usually Is by the dlplomatlo and consular representatives ot the government to whom It may have been pre sented. Them Is nothing to prevent the person claiming to hare been naturalized from obtaining a pew certificate from tbe court In place ot that which has been taken f romjilm. The evtt has become so ?:reat and of such frequent occurrence tbat I cannot oo earnestly recommend that some effective meas ures be adopted to provide a proper remedy and means for the vacating of any record thus fraudu lently made, and ot punishing the guilty parties to the transaction lu this confection. I refer also to the question of expatriation and the election of nationality, Tbe United States was foremost In upholding tba right ol expatriation, and ms rtla-