SUNBURY AMERICAN
A N N II A I i M AJ H
PRESIDENT (HUNT,
WASinscnoy, IVr. 2, 187.1.
Jo the. Sauitr anil IfoitM ni,VJWM
tii'fS! . '
The year that has parsed siuco Iho
submission of my last message- to Con .
grots has, especially during the latter
part of It, been an eventful one to the
i-ountry. Xn the midst of great national
prosperity a financial crisis has recurred
that has brought low fortunes of gigan
tic proportion!). Political partisanship
has almost ceaecd to exist, especially in
the agricultural region, and, finally,
the capture upon the high ocas of a ves
sel bearing our Hag, has for a time
threatened the most serious conse
quences, and has agitated the public
mind from oneend of the country to tho
other. "Hut this, happily, now is In the
course of satisfactory adjustment, pre
ferable to both nations concerned. Tho
relations of tbe United States, however,
with most of the other Power, continue
to be friendly and cordUl. With France,
Germany, Russia, Italy, and the minor
European powers, with Brazil and most
of the South American republics, and
with Japan, nothing has occurred dur
ing tbe year to demand special notice.
The correspondence between tho De
partment of State and tho various dip
lomatic representatives in or from those
countries is transmitted herewith.
THE VIENNA EXHIBITION.
in ..TPmitliiif the will of CoiiErts. as
expressed In its resolution of the 14th of
F ebruary last, ana in occoruauco wnn
tm nrnvlaions of the resolution, a num
ber of practical artisans, of scientific
uiu, aud of houorary commission,
were authorized to attend the exposition
at Vienna, as a commission, on the part
of tbe United States. It is believed that
we have obtained the ol iect which Con
i.rpBn had in view when It passed the
joint resolution to enable the people of
tne united rstaies 10 participate m iuo
advantages of the international exhibl
tlon of the nroductsof a2i'iculture,man
ufMotures. and the fine arts, to bo held
at Vienna. I take pleasure in adding
that the American exhibitors have re
ceived a gratifying number of diplomas
and medal.
During tiie exposition a conference
was held at Vienna, for tho purpose of
consultation on the system prevailing
in different countries for Iho protection
of Inventions. I authorized a represent
Mtlve from the Patent Ofllco to te pres
eut at Viennaat the time when this con
ference was to take place, in order to
aid. as far as was right, in securing any
possible additional protection to Ameri
can inventors in Europe. The report
of the agent will no lain nororo i on
grets.
OI7II RELATIONS with china.
It ia my pleaaant duty to announce to
Congress that the Kmperorof China, on
attaining his maioritv. received the dip
lomatid representatives of the Western
Powers in person. An accountof these
neiemouies and of the interesting dis
nusionB which preceded them, will be
round in tho documents transmuted
herewith.
The accompanying paper chows that
some advance, althouirh slight, has been
made during the past year towards the
suppression of the infamous Chinese
roolie trade. I recommend Congre?s to
inquire wheluer additional legislation
be not needed on this subject.
THE GENEVA AWAED,
' The money awarded to tho United
Btates by the Tribunal of Arbitration at
Geneva, was paid by Her Majesty's
Government a few days la advance c
the time when it would have become
payable according to the terms of the
treaty. Incompliance with the provis'
ions of the act of March .'!, 1ST;!, it was
at once paid into tho Treasury, and
used to redeem, so far as it might, the
public debt of the united (States, and
the amount bo redeemed was invested in
a rive per cent, registered bond of the
United Btates for fifteen million five
hundred thousand dollars, which is now
tield by the (Secretary of State, subject
to tne luturo disposition 01 congress.
APPOINTMENT OF COMMISSIONERS.
I repeat my recommendation, made
at the opening of the last seEBiou of (Jon
Kress, that a commission be created for
the purpose cf auditing aud deterniin
ing the amounts of the several direct
losses growing out of the destruction of
vessels anil tbetr cargoes by the Ala
bama, the Florida, or the Shenandoah
After leaving Melbourne, for which the
HUtlerers have received no equivalent or
compensation, and of ascertaining the
uamesof the persons entitled to receive
compensation for the same, making the
computations upon the I mo id indicated
by the tribunal of arbitration at Geneva,
auu mat paymeut or sucu looses bent
tiiori?ed to an extent not to exceed the
award of the tribunal at Geneva.
OPR J50TTNDARV LINES.
liy an act approved on the lllh day of
February last, Congress made provisions
for completing, jointly, with uu onicer
or comminsiou to be named by her
Britannic Majeety, the determination of
bo much ot tho boundary line bctwee
the territory of the United States and
the possessions of Great Britain as was
left uncompleted by tne coinmiuaioner
appointed under tho act of Congress o
AUKUbtll. in.'jii, under ttio provision
i( this act the northwestern boundary o
tlio united State has been determined
and marked, in accordance with the
award of the Emperor of Germany.
protocol anil a copy of the map upon
which the line was thus marked are
contained in the papers Kti'iinittcd here
with.
i albd transmit a copy of Iho rcpoit of
the commissioners for marking thn
northern lioiindary between tho United
Mates and the JSritUh poesL'ssionH, west
of the Lake of the Wood, of the opera
tions of the commission. Muring the
paat season surveys have t etsu made to
point 497 miles went of tho Like of
the Woods, leaving about Prl miles to
Ite surveyed, the lleldwork of which
tan bo completed during the next Bea
con. TUB TREATY OF WASHINGTON.
The mixed commission organized un
der the provision of the Treaty of
Washington, for settling aud determin
ing the claims of citizens of either pow
er against the other, uriring out of acts
committed against their persona or
property, timing tho period between
April 13th. istil. and April Otb. 1S0'.
uiade its final award on the 2.1th day of
September last. Jt was awarded that
tbe Government of the United Btates
should pay to the Government of Her
Uritannlc Majesty, within twelve
months from the date of the award, the
turn of 1,9:19 ,61a dollars In gold. The
commission disallowed or dismissed all
other claims of British subjeots against
the United Btates. The amount of the
Claims presented by the British Govern
ment, nut disallowed or dismissed, la
understood to be about $M3,000,(HHl. It also
disallowed all the claims of citizens of
tbe United Btates against Great Britain,
whloh were referred to it. I recom
mend the early passage of an act appro
priating tbe money necessary to pay
litis award against the United Btates.
I have caused to be communicated to
the government of tbe King of Italy
the thanks of this government for the
eminent services rendered by Count
Hclopls, as a commissioner on this com
mbwlou, for the dignity, learning and
Impartiality with which he discharge 1
but duties requiring great labor and
mnstant patience to tbe aatbf tclluii, I
MlltYe, oi pout KOTCTpmenta.
A SPECtAL COURT RECOMMENDED.
t recommend legislation to oreato a
reels! cttirt. to consist of tbito iudges.
who shall bo empowered to hear and
dotermine all claims of aliens upon tbe
United Btates. arising out or acts com
mitted against their persons or property
during the Insurrection.
1 lie recent reference under tne 1 rea-
ly of Washington was confined to
claims of Brltlfh snl Joels arising during
the period named In the treaty, but It
is understood mat mere areomer urn
lh claims of a similar natuie arising
after the Oth of April, 1805, and it is
known that other claim! of a like na
ture are advanced by citizens of other
power. It Is desirable to have these
claims also examined and disposed of.
FOREIGN AFFAIRS.
Official Information being received
from the Dutch Government of a state
of war between the king of the Neth
erlands and the sultan of Atchcne, the
officers of the United Btates who were
near the seat of war were instructed to
observe an Impartial neutrality. It Is
believed that they have done so.
AFFAIRS WITH MEXICO.
The joint commission, under the con
vention with Mexico in 1803, having
attain been legally prolonged, has re
sumed its business, whloh it is hoped
will be brought to an early conclusion.
The distinguished representative of
Her Britannic Majesty at Washington
ha? kindly consented, with the approv
al of his Government, to assume the
arduous and responsible duties of um
pire In this commission, and to lend the
weight of his character and name to such
decisions as may not receive tho acqui
escence of botli the arbitrators appoint
ed by the respective governments.
The commission appointed pursuant
to the authority of Congress to examine
nto the nature ana extent or me rorays
by t res passer a from that country upon
the herds of Texas have made a report,
which will be submitted for your consid
eration. e OUR FOREIGN RELATIONS.
Tho Venezuelan Government has been
apprised of the sense of Congress in re
gard to the awards of the joint com
mission - under the convention of the
25th of April, 1S0O, as expressed in the
act of the 25th of February last. It
Is apprehended that that Government
does not realize the character of its obli
gations under that convention. As there
is reason to believe, However, mar its
hesitancy in recognizing them springs in
part at least from real dlfllcultles in dis-
cuarging tnem, in connection wuii us
obligations to other Governments, the
expediency or mrtuer lorbearanco on
our part Is believed to be worthy of your
consideration.
The Ottoman Government, and that
of Egypt, have lately showed a deposi
tion to relieve foreign consuls of the ju
dicial powers which heretofore they
have exercised In the Turkish domin
ions by organizing other tribunals. As
Congress, however, has by law provided
for tbe discharge or judicial lunctions
bv consuls of tho United Btates in that
quarter under the treaty of 1830, 1 have
not I ell at lioeriy lormany 10 accept me
proposed change without tho assent of
Cobcress. whoso decision upon the sub
ject at as early a period as may be con
venient is earnestly requested.
I transmit, lierowitn. ror tne consid
eration and determination of Congress
an application of the Republic ot Santo
Domiugo to this Government to excr
ete a protectorate over that Republic.
ttince mo sojournment oi congress
the following treaties with foreign
powers have been proclaimed: A natu
ralization convention with Denmark, a
convention with Mexico for renewing
the claims commission, a convention of
friendship, commerce aud extradition
with the Orange free States, and a natu
ralization convention with Ecuador.
TIIF. POSTMASTER GENERAL.
I renew the recommendation made in
my message of December, 1870, that
Congress authorize the Po3t master Gen
eral to Issue all commissions to ollicials
appointed through his department.
EXPATRIATION, AC.
I invite the earnest attention of Con-,
grass to tho existing laws of the United
Btates respecting expatriation and the
election of nationality by individuals.
Many citizens of the United Btates re
side permanently abroad with their
families. Under the provisions of tbe
act approved February 10, 1855, the chil
dren of such persons are to be deemed
aud taken to be citizens of the United
States, but the rights of citizenship aro
not to descend to persons whose fathers
never resided in the United Btates.
It thus happens that persons who
have never resided in the United States
have been enabled to put forward a pre
tension to the protection of the United
Btates against the claims to military
seivices of the Government under whose
protection they were born and have
been reared. In some cases even natur
alized citizens of the United States have
returned to tho land of their birth with
the intention to remain there, and their
children, the issue of a marriage con
tracted in a foreign laud, and who have
never been in the United Btates, have
laid claims to our protection when
their residence of many years had im
posed upon them the duty of military
service to the only Government which
had ever known them personally.
Until the year 1S68 It was left embar
rassed by conflicting opinions of courts
aud of iurUta to determine how far tbe
doctrines of perpetual allegiance deriv
ed from our former colonial relations
with Great Britain were applicable to
American citizens. Congress then
wieely swept thoso doubts away by en
acting that any declaration of instruc
tion or opinion, order or decision of any
olllcer of this government, which re
stricts, impairs or questions the right of
expatriation, is Inconsistent with the
fundamental principles of this Govern
ment. But Congress did not Indicate
in that statute, nor has it since done so,
what acts are to be deemed to work ex
patriation. For my own guidance in determining
such questions I have required under the
provisions of the Constitution, the opin
ion in writing of the principal olllcer in
each of tho executive departments upon
certain questions relating to the subject.
The result satliles me that further legis
lation has become necessary. I there
fore commend the subject to the careful
consideration of Congress, and I trans
mit herewith coniee of the several
opinions of the principal oflicers of the
executive Department, together with
other correspondence and pertinent in
formation on the samesubject.
The united btates, who led the way
in the overthrow of tho feudal doctrine
of perpetual allegiance, are among the
last to indicate bow their own citizens
may elect another nationality. The pa- i
1er Buumuicu uerewiiu indicate wuat
a necessary to place its on a par with
otner leauing nations in liberality or
legislation ou this international ques
tion. We have already in our Territo
ries resorted to the principles which
would need to be embodied in laws in
tended to accomplish such results. We
have agreed mat citizens or me United
States may cease to be citizens and
may voluntarily render alleglauco
to other powers. We have agreed that
residence in a loreign land witnout in
tent to return shall, of Itself work ex
patriation. We have agreed In some in
stances upon the length of time neces
sary ror sucn intent. I invite Congress
now to mark out and deiioe when and
how expatriation can be accomplished,
to regulate by law the condition of
American women marrying foreigner,
to tlx the status of children born In a
foreign country of American parents
residing permanently abroad, and to
make rules for determining such other
kindred points as may seem best to Con
gress. TUB EPANIKU REPUBLIC.
In compliance with the request of
Congress I transmitted to tbe American
Minister at Madrid, with Instructions to
have it presented to the Bpaninh Gov
erument, the joint resolution approved
on the 2d of March last, tendering to
tne people or Spain, in the name
of the whole American people, the con-
?;ratulatlons of Congress upon the ef
orU to oensolidate in Spain the princl-
plea of universal liberty in a Republican
form of Government. The existence of
this new Repuhlla was inaugurated by
striking tho fetters from tho slaves In
porto itieo. J uls mii'Mncent iiK'unr
was followed by the release of several
thousand persons illegally held as slaves
In Cuba. Next tho Captain General or
that colouy was deprived of the power to
set ai-ldo the orderof his superiors at Mad
rid, which had pertained to the ofllco
since 1825. Tbe tequestered estates of
American citizens, which bad been the
cause of long and fruitless correspond
ence, were ordered to be restored to their
owners. All these liberal steps were
taken In the face of a violent opposi
tion, directed by the reactionary slave
holders of Havana, who are vainly
striving to stay the march of ideas
which have terminated slavery In Chris
tendom Cuba only excepted. Unhap
pily, however, this baneful Influence
has thus far succeeded in dofeallng the
efforts of all liberal minded men In
Bpaln to abolish slavery in Cuba, and In
preventing the promised reform in that
Island.
The struggle for political supremacy
continues there. The pro-Blavery and
aristooratlo party In Cuba is graduall y
arraigning itself in more and more open
hostility and defiance of the home gov
ernment, while it still maintains a po
litical connection with tho Republlo in
the Peninsula; and although usurping
and defying the authority of tho home
government whenever such usurpation
or defiance tends in the direction of op
pression or of the maintenance of
abuses, it Is still a power In Madrid and
is recognized by the Government. Thus
an element more dangerous to continued
colonial relations between Cuba and
Spain than that which inspired the in
surrection at Vara an element opposed
to granting any relief from misrule and
abuse, with no aspirations after freedom,
commanding no sympathies In generous
breasts, aiming to rivet still stronger
the shackles of slavery and oppression,
has seized many cf the emblems of
power in Cuba, and under professions of
loyalty to tne moiner country is ex
hausting the resources of the island, and
is doing acta which are at variance with
those principles of justice, of liberality
and of right which given nobility of
character to a Kepubiic. in me inter
ests of humanity, of civilization and of
progress, it is to be nopen mat tins evil
lniiunnce may soon te avericu.
THE VIRGIN1CS AFFAIR.
Tho steamer Virclniua was. ou the
20th day of Scptenber, 1S73, duly regis
tered at tho port of New York, as a part
of the commercial marine of the United
Btates. On the 4 th of October, 1S73,
having received tho certificate of her
register in the imial legal form, she
Bailed from the port of Now York and
has not since been seen within the ter
ritorial jurisdiction of the United
Btates. On the 31st day of October last,
wbllo sailing under the Hag of the
United States on the high seas, she was
forcibly seized by tbe Spanish gunboat
Tornado, and carried Into the port of
Santiago de Cuba, wlmro many of lier
paBeengers and crew were inhumanly,
and so far at least a? relates to those
who were citizens of the United States,
were without duo process of law put to
death.
JURISDICTION ON THE IfiaH PEAS.
It Is a well established principle, as
serted by the United States, from the
beginning of their national independ
ence, recognized by Great Britain and
other maritime powers, and stated by
the Senate in a resolution passed ou the
Kith of June, 185S, that American ves
sels on tho high seas, in time of peace,
tearing the American Hag, remain un
der the jurisdiction of the country to
which they belong, aud therefore uny
visitation, molestation or detention of
Biich vessel by force, or by the exhibition
of force, on the part of a foreign power,
is in derogation uf the sovereignty of tho
United Btates.
In accordance with thin principle the
restoration of the Virglnlus and tne sur
render or the survivors or ner passen
gers and crew, and a due reparation to
the nag, and tne punisnment oi me au
thoritiea who had bean guilty of the il
legal acts of violence, were demanded.
The Spanish Government has recog
nized me justice ot me demand, and
has arranged for tho immediate delivery
of the vessel, and of tho surrender of tho
survivors of the pasaeugenrand crew,
and for a salute to the flair and for pro
ceedings looking to the punishment of
thoso who may be proved to have been
guilty of illegal acts of violence towards
citizens of the United Btates, and also
towards Indemnifying those who may
have been shown to be entitled to in
demnity. THE CONFERENCE.
A copy of a protocol of a conference
between the Secretary of State and the
Spanish Minister, in which tho terms
of this arrangement were agreed to, is
transmitted herewith. The correspond
ence on this subject with the legation
of the United States in Madrid was con
ducted in cypher and by cable, and
needs the verification of the actual text
of the correspondence. It has seemed
to be due to the importance of the case
not to eubmit this correspondence until
tbe accurate text can be received t
mail. It ia expected shortly, and wi
be published when received.
In taking leave of this subject for the
present I wish to renew the expression
of my conviction that the existence of
Airican slavery in cuna is tne principal
cause of the lamentable condition of the
inland. I do not doubt that Congress
shares with me tho hope that it will
soon be raado to disappear, and that
peace and prosperity may follow its ab
olition.
PREPARATIONS FOR WAR.
The embargoing of American estates
in Cuba, cruelty to American citizens
detected in no act of hostility to the
Spanish government, the murdering of
prisoners taicen wnn arms in tueir
Lands, and finally the capture, upon the
high seas, of a vessel sailing under the
United Btates Hag, and bearing a United
states registry, naa culminated in an
outburst of indignation that has eeemed
for a time to threaten war. Pending
negotiations between the United States
and the government of Spain on the
subject of this capture, I have author
ized the Secretary of the Navy to put
our navy on a war footing to tbe extent
at least or tne entire annual appropria
tlon for that branch of tho service, trust
ing to Congress and thepublio opinion
or tne American rec-pie to jtisuiy my
action.
AMENDMENTS TO TIIE CONSTITUTION
Assuming, from the action of the last
Congress in directing the Committee ou
Privileges and Elections to prepare and
report to this Congress a Constitutional
amendment to provide a better method
or elect ine l'resident aud V.co 1'real
dent of the United Btates, and also from
the necessity or such an amendment
that there will bo submitted to the State
Legislatures for ratification such an im
provement in our Constitution, I sug-
seat two otuers ror your consideration:
lret, to aulnon.e tue .Executive to ap
prove of so much of any measure caa
intr the two houses of Code reus as his
judgment may dictate witnout apnrov
lag tne wnoie, me disapproved portion
or portions to be subjected to the same
rules as now, to wit : ue referred bacu
to the bouse in wnicn me measure or
measures originated, aud if passed by
two-thirds vote of the two house?, then
to become a law without tho approval of
tne v resident.
I would add to the law a provision
that there should be no legislation by
Congress during the last twenty-four
hours or its sitting, except upon, vetoes
or in order to give tne executive au op
portunity to examine and approve or
disapprove bins unuerstandingiy. r-sec
ond, to provide by amendment that
when an extra session of Congress
convened by executive proclamation
legislation, during the continuance of
sucn extra sessions, snail be con lined to
sucusubjecu as me executive may bring
before tt from time Co time in writing,
The advantages to be gained by these
two amendments are obvious. One
session in each year la provided for
by the Constitution, in which there
are no restrictions as to the subjects of
legislation vy jongresa.
If more are required it is always in
the power of Congress during their
term of ofllce to provide for sessions at
any time. Tne nrst or mese amend
ments would protect tho public in the
many abuses and waste of public mon
eys which creep into appropriation bills
and oilier important measures patsin
riurin the expiring hours of Con green
0 wplclt otherwise due considers.'.!
be given
FINANCIAL AFFAIRS.
Tho rwclpls of the Government, from
nil Kourccs, for the lastllsoal year, were
$333,738,201, and the expendltures.on all
accounts, $290,345,245, thus showing an
exceas of receipts over expenditures of
$13,392,050. But it is not probable that
as creditable an exhibit will be shown
for the present fiscal year. Indeed it is
very doubtful whether, except with the
greatest economy on the part of Con
gress in making appropriations, and the
same economy in administering the va
rious departments of the Government,
the revenues will ant fall short of meet
ing the actual expenses, including the
Interest on the public debt.
public nriLDiNas.
I commend to Congress such econ
omy, and I point out two sources where
1 1 seems to me it might commence.to wit:
In tho appropriations for publlo build
ings in the many cities where work has
not yet been commenced, in the appro
priation for river and harbor improve
ment, in those localities where the Im
provements are of but little benefit to
the general commerce and of fortifica
tions. There is a still more fruitful source of
expense which I will point out later in
this message. I refer to the easy meth
od of manufacturing claims for losses
incurred in suppressing the late rebel
lion. I would not be understood here
as opposing the erection of good, sub
stantial and ornamental buildings by
the government wherever such build
ings are needed.
in fact I approve of the Government
owning its own buildings in all sections
of the country, and hope the day is not
far distant when it will not only possess
but erect in the capital Biiltabfe resi
dences for all persons who now receive
commutation lor quarters or rent at Gov
ernment expense and for tbe Cabinet,
thus setting an example to the States,
which may induce them to erect build
ings for their Senators, But I would
have this work conducted at a time
when the revenues of the country would
abundantly justny it.
THE REVENUE SPECIE PAYMENTS
The revenues have materially fallen
off for the first five months of the pre
sent fiscal year from what they wero
expected to produce, owing to the gen
eral panio now prevailing, wnicn com
menced about the middle of September
last. The full effect of this disaster, if
it should not prove a blessing in dis
guise, is yet to be demonstrated. In
cither event it is your duty to heed the
lesson ana to provide, by wise ana wen
considered legislation, as far m it lies in
your power, against its recurrence, and
to take advantage of the benefits that
may have accrued. My own judgment
is, that however much individuals may
have suffered. r," 1uub ip len
takoa towards specie payments; that
we can never have permanent prosperi
ty until a specie basis is reacned, ana
that a specio basis cannot be reached
and maintained until our exports, ex
clusive of gold, pay for our imports, in
terest due abroad, and otner specie obli
gations, or so nearly so as to leave an
appreciable accumulation or tne pre
cious metals in the country fr mi the
products of our mines.
MINING RESOURCES CIRCTLATING ME'
DIUM.
The development of tho iniues of
precious metal during the past year and
the prospective development of them
for years to ccme are gratifying in their
results. Could but one-half of the gold
extracted from the mines be retained at
home, our advance towards specie pay
mentH would be rapid to increase our
exports. Sufficient currency is required
to keep all the industries of the country
employed without thU. National as
well aa industrial bauicruptcy must en
eue from undue inllation. On the other
hand, while it might give temporary re
lief, it would only lead to inllation of
prices, the impossibility of competing in
our markets for tho products of home
skill and labor, and repeated renewals of
present experiences.
Elasticity to our circulating medium,
therefore, and just enough of it to tran
sact the legitimate business of the coun
try and to keep all industries employed,
is what Is most to be desired. The ex
act medium is specie, tho recognized
medium or exchange the world over,
That obtained, we shall have a currency
of an exact degree of elasticity. If there
be too much of it for the legitimate pur
poses of trade and commerce it will flow
out ot me country ; it too little, tne re
verse win result.
To hold what we have and to appro
elate our currency to that standard is the
problem leserving of the most serious
consideration or congress. The expert
ence of the present panio has proven
that the currency of the country, baaed as
it is upon tho creditof the country, is tho
best that has ever been devised. Usually
in times of euch trials, currency has be
come worthless, or bo much depreciated
in value as to innate tne value or an me
necessities of life as compared with the
currency, livery one holding it has
been anxious to dispose or it ou any
terms.
Now wo witness the reverse. Holders
cf currency hoard it as they did gold
in tormer experiences oi a like nature.
it is patent to tne moBi casual on
server that much more currency or
money is required to transact the legltl
mate trade of the country during the
fall and winter months, when the vast
crops are being moved, than during the
balance oi me year.
With our present system the amount
in the country remains the same
throughout the entire year, resulting in
an accumulation of all the surplus capi
tal or tne country in a lew centres when
not employed in the moving of crops,
tempted there by the oiler of interest on
call loans. Interest being paid, this
surplus capital must earn the interest
paid, with a prom, jieing subject to
call it cannot be loaned only in part at
best to tne mercnant or manufacturer
for a fixed term, hence no matter how
much there might be in the country, it
would be abused, prices keeping pace
with the volume and panics, stringency
and disasters would be recurring with
the autumn.
JilMIMVIlT lit AAA I IIIVIUI jr OJ O VUUI .
therefore, is tiie object to be attained
IVlaailil t ! nun itinnaroru anutAm
nrst, and next to that, as far as possl
bio, a prevention of the use of other
people's money in stocks and other
species of speculation. To prevent tho
latter It seems to me that one great step
would be taiten ny promoting mo na
tlonal banks from paying interest on de
posits, by requiring them to hold their
reserves in their own vaults and by
forcing them into resumption, though
It would be only in legal tender notes.
For this purpose I would suggest the
establishment or clearing bouses, for
your consideration, to secure the former,
Many plans have been suggested, most.
if not all of whloh look to me mora lik
Inllation on the one hand, or compelling
the government, on the other, to pay
interest, without corresponding bene
fits, upon the surplus funds of the coun
try, during the seasons when otherwiee
unemployed.
I submit for your consideration whelh
er this difficulty might not be overcome
by authorizing the Secretary of the
Treasury to issue at any time to national
banks of issue any amount of their notes
below fifty per cent, of their issue say
forty per centage of their issue upon
the banks depositing with the Treasurer
of the United Btates au amount of gov
ernment bonds equal to the amount of
notes demanded, the banks to forfeit to
the Government say four per cent, of
tne interest accruing on the bonds so
pledged during the time they remain
with the Treasurer, as security for the
increased circulation, tne bonds so
pledged to be redeemable by the banks
at their pleasure, either in whole or in
part, by returning their own bills for
cancellation to an amount equal to the
lace oi me Donas wunarawn.
I would further suggest for your con
Blderation the propriety of authorizing
national banks to diminish their
standing issue at pleasure by return-
iug for cancellation their own bills
and withdrawing so many United
Btates bonds as are pledged for the
bills returned. In view of the great
actual contraction that has taken place
in the curreucy, and the comparative
contraction continually going on. due
to the increase of population, increase of
inauuiactories, and an me industries,
1 do not believe that there U too much
currency now for the dullest period of
J)..' .ar, I 'i.l-i'it n .ltti.rw.....1
should be established and their forcing
a redemption, it Is a question for your
consideration whether banking should
not be made free without releasing all
the safeguards now required to secure
all holders in any modification of the
present laws regulating national banks.
As a further step toward preparing for
resumption of specie payments, I invite
your attention to a consideration of the
propriety or exacting rrom tnem tne re
tention, as a part of their reserve, either
the whole or a part of the gold Interest
accruing upon the bonds pledged as se
curity ror tneir issue, i nave not re
flected enough on the bearing this might
have in producing a scarcity of coin
with whloh to pay duties on Imports to
give it my positive recommendation,
but your attention is invited to tho sub
ject. During the last four years the cur
rency naa been contracted directly by
tne wimdrawai or mree per cent, cer
tificates, compound interest notes and
seven-thirty bonds outstanding on the
4tu oi jviarcn, iwuu, an oi wnicn too
the place of legal tenders in the bank
reserves to the extent of $03,000,00.
During the same period there lias
been a much larger comparative con
traction of the currency, th j population
has largely increased, more than t wen
ty-live tiioueand miles or railroad liavo
been built, requiring tbe active use of
capital to operate them. Millions of
acres of land bavo been opened to culti
vation, requiring capital to movo pro
ducts. Manufactories have multiplied
beyond all precedent in the same period
of time, requiring increased capital
weekly for the payment of wages and
for tbe purchase of material, and prob
ably the largest of all comparative con
traction arising from tho organizing
of free labor in the South. Now every
laborer of these receives bis wages, and
for want of savings banks the greater
part of such wages la carried in tbe
pocket or hoarded until required for use.
These suggestions are thrown out for
your consideration, without any recom
mendation that they should be adopted
literally, but hoping that the best meth
od may be arrived at to secure such au
elasticity of the currency as will keep
employed all the industries of the coun
try ana prevent sucu an lnnation as win
put off indefinitely the resumption of
specie payments an object so devoutly
to bo wisuea tor by ail. ana by none
more earnestly than the classes of people
most directly interested, those who earn
their bread by the sweat of their brow.
The decisions of Congress on this sub
ject will have the hearty support of the
executive.
OUR COMMERCE SHIP BUILDING.
In previous messages I have called at
tention to thn decline in American ehlp
building, and recommended sucn legis
lation as would secure to us our pro
portion of the carrvincr trade. Stimu
lated by high rates and abundance of
rrelght, the progress for the last year In
shipbuilding hn been very satisfactory.
There baa been on increase of about
three per cent, in tho amount transport
ed in American vessels over tbe amount
of last year. With the reduced cost of
material which has taken place, it may
reasonably be noped mat mis progress
will be maintained, and even increased.
However, as we pay about eighty mil
lion dollars per annum to foreign vessels
for the transportation of our surplus
products to a market, thus increasing
me balance or trado against us to this
amount, the subject is one worthy of
your serious consideration.
CHEAP TRANSPORTATION.
Cheap transportation is a subject that
has attracted tbe attention or both pro
ducers and consumers for the past few
years, and has contributed to, if it lias
not been tne direct causo or, mo recent
panic and stringency. As Congress at
Its last session appointed a special com
mlttee to Investigate this whole subject
during tho vacation and report at thio
session, I have nothing to recommend
until their report is read. There is one
work, bowever, ox a national character.
in which the greater portion of tho east
and weBt, the north and the south, are
equally interested, to which I invite
your attention.
Tho State of New York has a canal
connecting Lake Erie with tide water
on the Hudson river. The State of 1 Hi
nois has a similar work, connecting
Lake Michigan with navigable water
on the Illinois river, thus making water
connection inland between the eaat and
west and south. These great artificial
water courses are the property of the
Btates through which they pass and pay
toll to tnose states, would it not be
wise statesmanship to pledge the Btates
that if they will open these canals for
the passage of large vessels the general
Government will look after and keep in
navigable condition tne great publlo
highways with which they connect, to
wit: Tbe oversiaugn on me Hudson,
the Saint Claire fiats and the Illinois
and Mississippi rivers.
This would be a national work, one of
great value to me producers or me wen
and south in giving them cheap trans
Eortatlon for their produce to the sea
oar d, and a market to consumers in tho
east in giving tnem ciieaper rood, par
ticularly of those articles of food which
do not find a foreign market aud the
prices of which therefore aro not regu
lated by foreign demands. Tbe advau
tages of such a work are too obvious for
argument; l submit tbe subject to you,
therefore, witnout rurtner comment.
in attempting to regain our lost com'
merce and carrying trade, I have here
tofore called attention to the Btates
south of us offering a Held where much
might be accomplished to further this
obiect. i suggest mat a email appro
priation be mane, accompanied witu
authority for the Secretary of the Navy
to lit out a naval vessel to ascend the
Amazon river to tbe mouth of the
Maderla, thenca to explore that rim and
its tributaries into Bolivia, and to ro
port to Congress at its next session, or
as soon as practicable, the accessibility
of the country by water, its resources
and the population eo reached. Such
an exploration will cost but little and
can do no harm, and may result in es
tablishing a trade of value to both na
tions. REVISION OK THE TARIFF.
In further connection with the Treas
ury Department I would recommend a
revision and a codification of the tariff
laws, and the opening of moro mints
for coining money, with authority to
coin for such nations as may apply.
WAR REPORT.
The attention of Congress ij invited
to tho recommendation contained in tho
report of the Secretary of War, here
with accompanying. The apparent
great cost of supporting tho army is
fully explained by this report, and I
hope will receive your attention.
While inviting your general atten
tion to all tbe recommendations made
by the Becretary of War, there are two
which I would especially Invite vou to
consider:
First. The importance of preparing
for war in time of peace by providing
proper armament for our soacoast de
fenses. Proper armament is of vastly
more importance than fortifications.
The latter can bo suppllod very speed
ily for temporary purposes when need
ed, the former canuot.
Second. The necessity of reoiionloc
promotion in the etalf corps of the
army. Particularly is tills necessity
felt in the medical, pay and ordnance
departments.
PAYMASTERS.
At this time It is necessary to emnlov
contract surgeons to supply the neces
sary medical attendance required by the
army, vvim tne present rorce or tbe
pay department it is now difficult to
make the payments to troops provided
for by law. Long delays in payments
are productive of desertions and other
demoralization, and the law prohibits
the payment of troops by other than
regular army paymasters. There are
now sixteen vacancies in the ordnance
department, thus leaving that branch of
me service witnout sumcient omoers to
conduct the business of tbe different ar
senals on a Urge scalo, if ever required.
oca NAVY.
Duilug tbe past year our navy has
been depleted by the Bale of some ves
sels, no longer tit for naval service, and
by me condemuar.on or others not yet
disposed of. TbU, bowever, has been
more tliau compensated for by the re-
Calr of alx of the obi wooden hlps, and
V the building !' tl;ht new sloops of
,11-n ii .miIIiii.i in UnUii. i. !!
The building of these latter has occurred
at a aouuiy lortunate lime. They are
about being completed at a time when
tbey may probably be much needed,
and the work upon them has not only
given direot employment to thousands
of men, but has no doubt been tbe
means of keening open establishments
for other work at a time of great finan
cial distress.
Since the commencement of tha last
month, however, the distressing occur
rences which have taken place in tha
waters of the Carribean sea, and almost
on every seaboard, while they illustrate
most iorcimy me necessity always ex
isting that a nation altnatari llba mire
should maintain in a state of poBsible
efficiency a navy adequate to its respon
sibilities, ha9 at the same time demand
ed that all the effective force we really
nave snouia do put in immediate readi
ness for warlike service. This has been
and is being done promptly and effec
tively, and I am assured that all the
available shins and every authorized man
of the American navy will be ready for
wnnievcr action is required lor tne
safety of our cl tizins or the maintenance
(tf our honor.
This, of course, will renuire the ex
penditure in a short time of some of the
appropriations which were calculated to
extend through the fiscal year, but
Congress will. I doubt not. understand
and appreciate the emergency and will
provide adequately, not only for the
present preparation, but for the future
maintenance of our naval force. The
Secretary of the Now has. during the
past year, been quietly putting some of
our moat cuective monitors in condition
for service, and thus the exigency finds
us in a much better condition for work
than we could possibly have been with
out his action.
CLAIMS AGAINST TIIE GOVERNMENT.
Your careful attention is invited to the
subject of claims against the govern
ment and the facilities afforded by ex
isting laws for their prosecution. Kach
of the Departments of State, Treasury
and War have demands of many mil
lions of dollars unon their files, and
they are rapidly accumulating. To these
may be added those which were pending
before Congress, tho Court of Claims
and tho Southern Claims Commission.
making in the aggregate an immense
Bum. Most of these grew out of the re
bellion, and are intended to Indemnify
persons on both sides for their losses
during tho war, and not a few of them
aro fabricated and supported by false
testimony.
Projects are on foot, it is belioved, to
induce Congreas to provide for new
classes of claims and to revive old ones,
through tho repeal or modification of
the statute of limitations by which they
are now barred. I presume these
schemes, if proposed, will be received
with little favor by Congress, and I re
commend that persons having claims
against tuo united Btates cognizable
by any tribunal or department thereof.
bo required to present them at an early
nay, and mat legislation be directed, as
tar as practicable, to tne tieieat or un
founded and unjust demands upon the
treasury. viiu x would suggest, as a
means oi preventing rratid, that wit
nesses bo called upon to appear in per
son to testify before the tribunal hav
ing said clainiB beforo them before ad in
dication. Probably the largest saving
to tho national treasury can be secured
by timely legislation on tliefe subjects
of any of tho economical features that
win be proposed.
REPORT OF TIIE ATTORNEY GENERAL
You will be advised of tho onerfttlonn
oi tno uepartmeni or justico by tne re
port oi tne Attorney uenerai. and 1 in
vito your attention to tho amendments
of existing laws suggested by him with
tne view oi reuucing tno expenses of
mat department.
INDIAN AFFAIRS.
Tho policv towards the Indiana at tbe
beginning of the last administration has
been steadily pushed and I believe with
beneficial results. It will be continued
with only such modmeations as time
and experience may demonstrate as
necessary with the encroachment of
civilization upon the Indian reserva
tions and hunting grounds. Disturb
ances have taken place between the
Indians and whites during the past
years, and probably will continue to do
so until each race appreciates that tbe
other has rights which must be respect
ed. The policy has been to collect tbe
Indians as rapidly as possible on re
servations, and as far as practicable
within what ia known as tne Indian
territory, and to teach them the arts of
civilization and self-support. When
found off their reservations and endan
gering tbe peace and safety of the
whites they have been punished, and
will continue to bo for like offenses.
The Indian territory south of Kan
sas and west of Arkansas is sufficient
in area and agricultural resources to
support all tbe Indians east of the
Rocky Mountains. In time, no doubt,
all of them, except a few who may
select to make their homes among
white people, will be called there. As
a preparatory step for this consumma
tion I am now satisfied that a territorial
form of government should be given
them, which will secure the treaty
rights of the original settlers and pro
tect their homesteads from alienation
for a period of twenty years.
THE PATENT OFFICE.
The operations of the patent office are
growing to such magnitude and the ac
cumulation of material is becoming so
great that the necessity for more room
is becoming more obvious day by day.
THE PUBLIC LANDS.
I respectfully invite your attention to
the reports of the Secretary of the Inte
rior and Commissioner of Patents on
this subject. The business of the gener
al land ofllce exhibits a material in
crease in all its branches during the last
fiscal year. During that time mere was
disposed of out ot the publlo lands 13,
030,000 aeres, being an amount greater
by 1,105,031 acres than was disposed of
uuring tne preceding year, ur tbe
amount disposed of 1,020,200 acres were
sold for cash ; 214,040 acres were located
with military land warrants ; 3,703,012
acres were taken for homesteads ; 0-53,
410 acres were located with agricultural
AttllnivA ortrln . it Ott4 r. Q , 1 annu urn..
VJ - ft " -' , i.,wi.,u.j-. Hiivq nolo
tilled by railroads; 70,590 acres were
granted to wagon roads ; 18,548 acres
were apportioned to States as swamp
lands; 133,osl acres were certified for
agricultural colleges, common schools,
universities anu seminaries; i;hj,77j
acres were apportioned to Btates for in
ternal improvements, and 14,222 acres
were located witu Indian scrip.
The cash receipts during the same
time were $3,408,510 50, being $100,41.,
M in excess of the previous year. Dur
ing the year 30.5SS.132 acres of publlo
lands were surveyed, an increase over
me amount surveyed tne previous year
of 10,037,103 aores, and added to the
area previously surveyed aggregates
610,554,805 acres which have been sur
veyed, leaving 10,218,433.605 acres of tbe
puono lanus sun unsurveyed. The in.
creased and steadily Increasing facilities
for reaohingour unoccupied publlo lands
and for the transportation of surplus pro
ducts.enlarges the available Held for de
sirable homestead locations, thus stimu
lating settlement and extending year by
jrcai in K'auuaiiy juuieasillg ratio MIS
area cf occupation and cultivation.
PROPOSED RUSSIAN COLONY.
mi. . . .
xue expressed uesire or me repre
sentatives of a large colony of citizens
of Russia tn nmlffrata ti tl.la imin,
? . " vuuuur.
as it is understood with the consent of
their governments certain concessions
can be made to enable them to settle in
a compact colony, la of great interest aa
going to show the light in which our
institutions are regarded by an indus
trious, intelligent and wealthy pesple
desirous of enjoying civil and religious
liberty, and the acquisition of so large
an immigration of citizens of a superior
class would without doubt ba of sub
stantial benefit to the country, I Invite
attention to the suggestion of the Sec
retary of the Interior in this behalf.
PENSIONS.
There was paid during the last fiscal
year for pensions, including the expenses
of disbursement, $29,1K5,2S9 02, being
au amount less by $984,950 93 than was
expended for the same purpose the pre
ceding year. Although this statement
of expenditures would indicate a u.ate
rial reduction in amount compared with.
the changes in the pension law - at ,h
last session of Congress will absorb
amount tha current year.
OUR VENSIONEHS.
At the close of the fiscal ye r there
wviv vu mw fv'ju" no hQQ nil a
military pensioners and 11J1'0f1'd.0s1
orphans and dependent rehrtivof
ceased soldiers, making a VJ.of.t,1t
on kqo. is coo survlvort of tv .
fen vrt lha sraATlBlinTI rilllB f" " UQ IM
war of 1812 and ou.wa oi.
dlers of that war pensioned an ler t10
aot of Congress or 'H" " 1' "U,
making a total of that class of !Ri M
- . .. . k. . nnari anil 1 -..
1,43d invalid navy peu!w" i,,(u
widows and orphans and dependent
relatives of deceased officers, sailors aud
marines of the navy, making a total of
navy pensioners of 8,200, and a grand
4.-Y J, . nun nf all classes Of 'I'M .
411, showing a net 'nCTOB"e.d"""S the
lasi fiscal year of 0,181. Daring thelast
ia Atw nana nnnr,
year tne namea ui ... ncre
added to the rolls and 10,223 names were
dropped therefrom for various cmum.
tVib avatAm adopted for the detection
of frauds against the Government in the 1
matter or pensions was mwii i'iui:iivs i
of satisfactory results, but legislation la
needed to provide if possible against tho
perpetration of such fraud i in the i'u. '
ture.
EDUCATION. I
Tha avtilnntlv Increasing interest In '
the cause of education is a moat encour
aging feature in tho general prcre.-s
and prosperity of tho country, and the
Bureau of Education ia earnest in i!j
efforts to give proper direction to the
new appliances and the increased faclli-
ties wnicn are being oueruu u mu uie
educators of the country In their prcat
worlx
THE CENSUS BUREAU.
The ninth census has been coiiiiil,:tt,i
and the report thereof published ami
distributed, and the working forca of
the bureau disbanded. Tho Sserctsry
of the Interior renews hU recommend
atlon for a census to be taken in 1S7",
to which subject the attention of Con
gress is invited. Tho original finises
tion in that behalf has met with tho
general approval of tho country, cml
even if it be deemed not adviiub'.o at
present to provide for a regular rjuin.
tennial census, a census taken in Ist'i,
the report of which could be compli ta
and published before the one humJieillh
anniversary of our independeuce.wowM
be especially interesting and valuable,
as showing tho progress of tho country
during the first century of our national
existence.
It is believed, however, that a rr;rtil;u
census every live years would be or
stantlal benefit to the country, imn.
much as our growth hitherto has l.cen
so rapid that the results of the decennial
census are necessarily unreliable m a
basis of estimates for the latter year of
a decennial period.
HIE NATIONAL CAPITAL.
Under the very efficient management
of the Government and tho iWard r,f
Public Works of this district, tliei ity
of Washington is rapidly assuming u.a
appearance of n capital of which the
nation may well be proud. From beim;
a most unsightly place, three ycaHs;)
disagreeable to pass through in summer
in consequence of tho dust arising from
unpaved streets, and almost irapau;uh!c
from the mud, it is now one of them t
sightly cities in tho country, am 1 cm.
boast of being tho best paved.
The work has been nystematital, th?
plans, grades, location of sewers, v.ni.r
and gas mains being determined tip:i
before tho work was commenced, tans
securing permanency when competed.
I question whether so much hai ever
been accomplished beforo in any other
city for the samo expenditures. The
Government has a large reservation in
tho city, and the nation at large having
an interest in their capital, I recom
mend a largo policy towards the District
of Columbia, and that the Government
should bear its juBt share of thocxiu-nro
of these improvement?.
Every citizen visiting tho capital fan
&riAJ.nJteJTJK7ft- flA .rtM.tu6t he,
made. Hero I would suggest i' uu
greas tho propriety of promoting the es
tablishment, in this district, of an in
stitution of learning or university oi
the highest class by tho donation of the
lands. Therd Is no placo hotter euiicl
for such an institution than the Na
tional Capital. There is no place ia
which every citizen is so directly inter
ested. POSTOFFICE DEPARTMENT
A complete exhibit is presented in ihe
accompanying report of tho Postmaster
General of tho operations of the Post
office Department during thoyoar. T;;a
ordinary postal revenues for tho ii-eil
year ending June 30, 1S73, amounted to
22,990,711 o7, and the expenditures cf .
all kinds to 29,084,5)1 07. Tneinere&?o
of revenues o7er 1S72 was $1,0S1,;;1" .", .
and the increase of expenditures f2,4i;,
753 30. Independent of the payment
made from special appropriation Is
mail steamship lines, the amount drawn I
from tho general treasury to m et defi
ciencies was $5,2G5,470.
The constant and varied extonaii ii of
our postal service, particularly upa
railways, and the improved faciliuu
for the collection, transmission, dis
tribution and delivery of the mails
which are constantly being provided,
account for the increased expenditure
of this popular branch of the public
service. Tbe total number of plof
iioes in operation on the 13th of June,
1873, was 33,244, a net increase of l. i-l
over the number reported tho preceding
year. Tho number of Presidential
offices was 1,303, au increase of l1-1
during the year. The total length of rail
road mail routes at the closo of the year
was 63,457 miles, an incrcaoo f "l,;
miles over tho year 1S72. Fifty-nine
railway postonlce lines were in opera
tion on the 13th of June, 1873,extemlin:;
over 1,000 miles of railroad mutes, nnd
performing an aggregate servicjof."!,
925 miles dally.
The number of letters exchanged wit a
foreign countries was 27,4r)ii,ls.j-an in
crease of 8,090,G&j over tho jrevioin
year ; and the postage thereon amount
ed to $2,021,310 80. The totol wvight of
correspondence exchanged in tbe mails
with European countries exceeded
tons an increase of 02 tons over the
previous year. Tho total cost of the
United Btates ocean mail steamship s-r
vice, Including $72o,000 paid from rw
ial appropriations to subsidized liu of
mail steamers, was $1,047,271 .';."
New or additional postal convention:)
have been concluded with Sweden. Nor
way, Belgium, Germany, Canada, V j
Foundlaud and Japan, reduce
postal rates on correspondence exchane-
ed with those countries, and furiher ef
forts have been made to conclude a sat
isfactory postal convention with France, j
but without success. !
I invite the favorable connlde-u'.i.iu of
Congress to the suggestions ant! re cim
mendatlons of the Postmaster liener.il
for an extension of the free delivery
system in all cities having a porula'-io"
of not lees than 10,000, for the J ra psy
ment of postage on newspapers ami
other printed matter of thesecord elas?,
ror a uniform postage andilmit of weight
on miscellaneous matter, for adjusting
the compensation of all poatreioterr no:
appointed by the President, by the old
method of commissions ou actual r"
oeipu of the otllce, Instead of tbe
ent mode of paying by salary in a-1-v,an.cei,P.n
PcIal returns, aud espe
cially do I urge favorable action ly t'"1'
"n"1 ImporUnt recommends-
. i8,?'119 Postmaster General for the
establishment of the United ttatei
postal savings depositories.
i our attention is also again ctlleJ t'
a. consideration of the question oVta!
1,e?ff.pU,?nd wgumenta ia op
port thereof, in the hope that yo i my
ucb. action in connection there'
with as in your Judgment will wt
SSSKS? t0 be9t 1,lte" sTs of ne
AFFAIRS IN UTAII.
The affairs in Utah rennire your early
f.Ud Wff1 Uon. The B, rme
Court of the United States in itht eof
iVf. !,Enlh iecldld tUt
the United States marshal of that Ter-.
ritory could not lawfully anmL hi
rers for the district couriJ I 3i
courts hold that the teVriLrlal iS
cannot lawfully terform thi? .TThS
cause he is ele.V.1 K ll
semblv and Wi".'"
tor in 7i . ?ot anPolnted, M prot de t
in
UjirniHail