I.1ESSAGE- STJPPLBI.IEITT. J II ! 4 J.: i To Koutfa onl Ifoun", of Rrpi eurnta firra nf th", Un'tiui Slttfct: All appalling calamity lias befallen (he Ain'-riran people sineo their chosen representatives last mot in tho halls of when- you are now assembled. Wo might elso recall with unalloyed con tent tlio rare prosperity with which throughout (lie year tho nation has been Most. Its harvests have been plente ous, its varivd industries has thriven, the health of its people, has been pre served, it has maintained with foreign governments tho undisturbed relations of limit' and peace. For theso mani festations of ills i'avor we owe to Him who holds our destiny in His hands, the tribute of our grateful devotions. To that mysterious exercise of Ilis will which has taken from us the loved and illustrious citizen who was but lately tho head of tho nation, wo bow in sorrow and submission. Tho memorv of bis ex alted character, of his noble achievements and of bis patriotic life, will be treas ured forever as a sacred possession of tho wholft people. Tho announce inont of his death drew from foreign governments and peoples tributes of sympathy and sorrow which history will record as signal tokens of tho kinship of nations and tho federation of man kind. OUR RELATION. WITH GREAT BRITAIN. Tho feeling of good-will between our own government and that of Great Urilain was never inoro marked than at present. In recognition of this pleasing fact I directed, on tho occasion of tho lato centennial celebration at York town, that a salute bo given to tho Rritish flag. Save for tho correspondence to which 1 Rhall refer hereafter in rela tion to tho proposed canal across tho Isthmus of Panama, little has occurred worthy of mention in tho diplomatic relations of tho two countries. Early in tho year tho Fortune bay claims were satisfactorily settled by the Brit ish government paying in full the sum of 15,000, most ol which has been al ready distributed. As the terms of tho settlement included compensation for injuries Buffered by our iishcrmen at Aspoe bay, there has been retained from tho gross award a sum which is deemed adequate for those claims. Tho participation of Americans in the exhibitions at Melbourne and Syd ney will bo approvingly mentioned in the reports of tho two exhibitions soon to bo presentod to Congress. They will disclose tho readiness of our coun trymen to mako successful competition in distant fields of enterprise. Nego tiations for an international copyright convention aro in hopeful progress. The surrender of Sitting Rull and his forces upon tho Canadian frontier has allayed apprehension, although bodies of British Indians still cross the border in quest of sustenance. Upon this subject a cor respondence has been opened which promises an adequato understanding. Our troops have orders to avoid mean while all collisions with alien Indiana. THE YORKTOWN CELEBRATION1. The presence at tho Yorktown cele bration of representatives of republi cans, descendants of Lafayette and of his gallant compatriots, who wero our allies in tho Revolution, have served to strengthen tho spirit of good-will which has always existed between tho two nations. .THE SILVER CONFERENCE. You will bo furnished with the pro ceedings of tho bi-mctallic conference held during tho summer at the city of Paris. No accord was reached, but a valuable interchange of views was had, and tho conference will next year bo renewed. At tho electrical exhibition and con gress also held at Paris this country was creditably represented by eminent specialists who, in the absence of an appropriation, generously lent their effi cient aid at the instance of the state department.- While our exhibitors in this almost distinctly American lield of achievement have won several valuable awanls, I recoihmend that Congress provide for tho repayment of tho per sonal expenses incurred in the public interest by the-honorary commissioners and delegates. FOREIGN TOPICS. No new question respecting tho status of our naturalized citizens in Germany have arisen during tho year aid causes of complaint, especially in Alsace and Loraiue havo practically ceased through tho liberal action of tho imperial gov ernment in accepting our often expressed views on the subject. Tho application of the treaty of 1808 to tho lately ac quired Rhenish provinces has received very earnest attention. A definite and lasting agreement on this point is con fidently expected. Tho participation of the descendants of Huron Von Steuben in tho Yorktown festivities and their Bubsenueut reception by their American kinsmen strikingly evinced tho ties of good-will which unite tho German peo ple and our own. Our intercourse with Spain has been friendly. An agreement concluded in February last fixes a term for tho labors of the Spanish and American claims commission. The Spanish government has been requested to pay the lato awards of that commission, and will, it is believed, accede to tho request as promptly and courteously as on for mer occasions. Ry recent legislation onerous lines have been imposed on American shipping in Spanish and co lonial ports tor slight irregularities in manifests. One case of hardship is spe cially worthy of attention. The bark Masonic, bound for Janan, entered Ma nila in distress, and is there sought to be confiscated under Spanish revenue laws for an alleged shortage in her trans shipped cargo. Though etlbrts for her relief havo thus far proved unavailing it is expected that the wholo matter will be adjusted in a friendly spirit. The Senate resolutions of condolence on tho assassination of Czar Alexander II., were appropriately communicated to the Russian government, whiiih in turn has expressed its sympathy in our lato national bereavement. It Is de sirable that our cordial relations with Russia should be strengthened by proper engagements, assuring to peacetime Americans who vi-it tho empire tho '"id.T :ion whieh is duo to them as 1' a friendly state. '1 his is (ion with the native Hebrews has evoked energetic remonstrances from tho gov- mm cut. A supplementary consular agreement with Italy has beeii sanctioned and pro claim which puts at rest conflicts of jurisdiction, in tho case of crimes on shipboard. Several important international con ferences have been held in Italy during tho year. - At tho Geographical Con gress of Venice, the lienelieent Con gress of Milan, and tho Hygienic Con gress of Tirin, this country was repre sented by delegates from branches of tho public service, or by private citizens duly accredited in an honorary capa city. It is hoped that Congress will givo such prominence to tho results of their participation as they may seem to deserve. Tho abolition of all discriminating du ties against such colonial productions of tho Dutch Fast Indies as aro imported hither from Holland has been already considered by Congress. I trust that at tho present session tho matter may bo favorably concluded. The insecurity of life and property in many parts of Turkey has given rise to correspondence with the portc, looking particularly to tho better protection of American missionaries in the empire. Tho condemned murderer of tho emi nent missionary, Dr. Justin W. Parsons, has not yet been executed, although this government has repeatedly de manded that exemplary justice be'done. Again the Swiss government baa so licited tho good offices of our diplomatic and consular agents for the protection of its citizens in countries where it is not itself represented. This request has, within proper limits, been granted. Our agents in Switzerland have been in structed to protest against tho conduct of the authorities of certain communes in permitting tho emigration to this country of criminals and other objec tionable persons. Several such persons, through the co-operation of tho commis sioners of emigration at New York, have been sent back by tho steamers which brought them. A continuance of this course may prove a more effectual remedy than diplomatic remonstrance. Treaties of commerce and navigation, and for tho regulation of consular privileges, have been concluded with Roumania and Scrvia since their admis sion into the family of European states. As is natural with contiguous States having like institutions and like, aims of advancement and development, tho friendship of the United States- and Mexico has been constantly maintained This government has lost no occasion of encouraging the Mexican government to a beneficial realization of the mutual advantages which will result from more intimate commercial intercourse, and from the opening of the rich interior of Mexico to railway enterprise. I deem it important that means bo provided to re strain tho lawlessness unfortunately so common on the frontier, and to sup press tlio loravs ot the reservation In dians on either sido of tho Rio Grande. The neighboring states of Central America have preserved internal peace, and their outward relations toward us has been those of intimate friendship There are encouraging signs of their growing disposition to subordinate their local interests to those which aro com mon to them by reason of their geo graphical relations. Tho boundary dispute between Guatemala and Mexico lias atlorded tins govern ment an opportunity to exer cise its good ollices for preventing a rupture between those states and for moaning a peaeeablo solution of tho question. I cherish a strong hope that in view of our relations oi amity with both countries our friendly counsels may prevail. A special envoy ot imatemaia has brought to mo the condolences of liia imurMmnut: rwl ..nonlrt nn ..lift death of President Gartield. Tho Costa Riean government lately framed an engagement with Colombia settling by arbitration the boundary question between those countries, pro viding that the post oi aruuraior snouiu be oll'ered successively to the king of the Helgians, the king of Spam, and the pr osulent oi tlio Argentine oiueuer- at-ion. The king ot the JJclgians has de clined to act, but I am not as yet advised of tho action of . the king ot Spam As wo have certain interests in tho dis- nuted territory which are protected by our treaty engagements with ono of the parties, it is important that tho arbitra tion should not, wiinout our consent affect our rights, and this government lias accordingly thought proper to make its views known to the parties to the agreement, as well as to intimato them to tho Relgian and Spanish govern ments. THE PANAMA CANAL. Tho questions growing out of the proposed interoeeanie waterway across the Isthmus of Panama are of ravc na tional importance. This government has not been unmindful of the solemn obligations imposed upon it by its compact of 1840 with Colour bia, as the independent and sov ereign mistress of tho territory crossed by tho canal, and has sought to render them eflectivo by Ires engagements with the Colombian repub lic looking to their practical execution Tho negotiations to this end, after they havo reached what appeared to be a mutually satisfactory solution here.were met in Colombia by a disavowal of the powers which its envoy had assumed and by a proposal tor renewed nego tiation on a modified basis. Mean while this government learned that Colombia had proposed to tho Euro pean powers to ioin in a guarantee of neutrality of the proposed Panama canal, a guaranteo which would ho in direct contravention of our obligation as the solo guarantor of the integrity of Colombian territory, and ot the nou tralitv of the canal itself. My lament. predecessor felt it his duty to place be fore the European powers the reasons which make the prior guaranteo of tho United States indispensable and for which the interjection of any foreign guarantee might be regarded as a super thtous and unlriendlv act. roreseein tho probable reliance of tho Rritish gov eminent on the provisions of the Clayton liulwer treaty of 1850, as affording room for a share in the guarantees which the United Stales covenanted with Colombia four yours before, I hav not hesitated to supplement tlio action of my predecessor by proposing to her man-sty's government tho mollification nf that instrument and the abrogatio lnfes toward Colombia, or with tho vital needs of tho two friendly parties to tho compact. This government sees with great con cern tho continuance of the hostile re la ions between Chili, Rolivia and L'cru. An early peaco between these republics is much to be desired, not only that they themselves be spared further misery and bloodshed, but because their continued antagonism threatens conse quences which are, in my jndgmcnt,dan- rous to the interest ol republican gov ernment on this continent, and calcu lated to destroy tho best elements of our free and peaceful civilization. As in (ho present excited condition of popular feeling in these countries there i.as heen serions misapprehension ot the position of the United States and as separate diplomatic intercourse with each through independent ministers is sometimes subject owing to the want of prompt reciprocal communication to temporary misunderstanding, I have deemed it judicious at the present time to send a special envoy, accredited to all and each of them, and furnished with general instructions, wluch will, trust, enable him to bring these powers into friendly relations. OTHER FOREIGN TOPICS. The government of Venezuela main tains its attitude of warm friendship, and continues with great regularit y its nvmpnf. nf flirt mnnlhlv rmnfr. nf ihfi ...-iT ..... '"V v- diplomatic debt. "Without suggesting tho direction in which Congress should act, I ask its attention to tho pending questions atlecting the distribution ol the sums thus far received. The relations between Venezuela and France, growing out of tho same debt, have been for some time past in an un satisfactory state, and this government, as the neighbor and one of the largest creditors of Venezuela, has interposed itselt with the r rench government, with the view of producing a friendly- and honorable adjustment. I regret that the commercial interests between the United States and Brazil, from which great advantages were hoped a year ago, have suffered from the withdrawal of the American lines of communication between the Era.ilian ports and our own. Through tho florts ot our minister resident at Rucnos Avres and the United States minister at Santiago, treaty has been concluded between the Argentine Republic and Chili, di posing of tho long-pending Patagonian boundary question. It is a matter ot congratulation that oiu1 government has been afforded the opportunity of sue cessfully exerting its good influence for the prevention of disagreements be tween these republics of tho American continent. 1 am glad to inform you that the treaties lately negotiated with China have been duly ratified on both sides and tho exchange made at Peking. Legislation is necessary to carry tho provision into effect. The prompt and friendly spirit with which the Chinese government, at the request of the Uni ted states, conceded the modification ot existing treaties should secure caret ul regard for the interests and suscepti bilities of the government in the enact ment of any laws relating to Chinese emigration. Those clauses of the treaties which forbid tho participation of citizens or vessels of the United States in the opium trade will doubtless receive your approval. They will attest the sincere interest which our people and govern ment feel in the commendable effort of the Chinese government to put a stop to this demoralizing and destructive traffic. In relation both to China and Japan some changes are desirable in our pres ent system ot consular lurisdiction. 1 hope at some future time to lay before vou a scheme for its improvement in the entire East. The intimacy between our country and Japan, the most advanced of tho Eastern nations, continues to be cordial. am advised that tho emperor contem plates the establishment of full consti tutional government, and that he has already summoned a parliamentary congress for the pin-pose of effecting the change. Such a remarkable step toward complete assiniulation with the Western system cannot fail to bring Japan into :lo r and more beneficial relationship with, ourselves as tlio chict power. A question has arisen in relation to the exercise in that country of the judi cial functions conferred upon our minis ters and consuls, lhc indictment, trial and conviction m the consular court at Yokohama of John Ross, a merchant seaman on board an American vessel. have made it necessary for the govern ment to institule a careful examina tion into the nature and methods of this jurisdiction. It appears that Ross was recularlv shinned under the flag of tho United States, but was by birth a Rritlsh subject. My predecessor felt it Ins duty to maintain the position that during his service as a regularly shipped seaman on board an American merchant vessel, Ross was subject to the laws of that service, and to the jur isdiction of tho United States consular authorities. I renew tho recommendation which has been heretofore urged by tho Execn live upon tho attention of Congress, that after tho reduction of such amount as innv bo found duo to American citizens the" balance of tho indemnity funds here tofore obtained lrom China and Japan and which are now in the hands of the state department, be returned to the governments ol' those countries The king of Hawaii in the course of his homeward return after a journey around the world has lately vl-itcd this country. While our relations with that kingdom are friendly this government has viewed with concern the. etlbrts to seek replenishment of the diminishing population of the islands from outward -ources to a degree which may impair the native sovereignty and independence in which the United States was among the first to testify a lively interest. Relations of unimpaired amity have been maintained throughout tho year with the respective governments of Austria-Hungary, Uelgiuin, Denmark, llayti, Paraguay md Uruguay, Portu gal, Sweden, and Norway. This may also bo said of Greece and Ecuador, al though our relations with those states have for some years' been severed by tlio withdrawal of appropriations for diplomatic representative at Athens and Ouilo. It seems expedient to restore those missions, even on a reduced nn important part, among tho nations t tho Southern Pacific. INTERNATIONAL AGREEMENTS At its last extra session the Senate Called for tho-text of the Geneva con vention for the relief of the wounded in war. I trust that this action foreshadowed such interest in tho subject, as wil? ro sult in the adhesion of the United States to that humane ami commendable en gagement. I invite your attention to tho propriety of adopting the new code or interna tional rules for the prevention of col lisions on the high seas and of confirm ing the domestic legislation of the Uni ted States thereto, so that no confusion may arise from the application of non fliefing rules in the case of vessels of different nationalities meeting in tidal waters. These international rules dif fer but slightly from our own. They have been adopted by the navy depart ment for tho governance of the war ships of the United Stales on tho high seas and in foreign waters, and, through the action of the state department in disseminating the rules and in acquaint ing shipmasters with the option of con forming to them without, the jurisdic tion of the waters of the United Slates, they are now very generally known and obeyed. TRADE REPORTS. The slate department still continues to publish to the country the trade and manufacturing reports received from its officers abroad. The success of this course warrants its continuance, and such appropriation as maybe required to meet the rapidly increasing demand for these publications with special ref erence to the Atlanta Cotton Exposi tion. The October number of the re ports was devoted to a valuable collec tion of papers on the cotton goods trade of the, world. SANITARY CONFERENCE. . The international sanitary conference for which in 1871) Congress made pro. vision asseinmed m this city early in January last, and its sessions were pro longed until March. Although it reached no specific conclusion atlecting the future action of the participant powers, the interchange ot views proved to be most valuable. The full protocols of the sessions have been already pre sented to uic senate As pertinent to this general subject I call your attention to the opera tions of tho national board of health, established by act of Congress. Its sphere of duty was enlarged by the act of June 2, in the same year. By the last-named act the board was required to institute such measures as might be deemed necessary for preventing the introduction of contagions or infectious diseases from foreign countries into the United States, or from ono state to another. The execution of the rules and regulations prepared by the board and approved by my predecessor has done much to arrest the progress of epidemic disease, and has thus rendered substantial service to the nation. The international sanitary conference, to which I have referred, adopted a form of a bill of health to be used bv all vessels seeking to enter the ports of the countries w nose representatives partic ipated in its deliberations. This form has since been prescribed by the na tional board of health and incorporated with its rules and regulations which have been approved by me in pursuance of law. The health of the people is of supreme importance. All measures looking to their protection against the spread of contagious diseases and to the increase of our sanitary knowledge for such purposes deserve tho attention of Congress. THE FINANCES. The report of tho secretary of the treasury represents in detail a lughly satisfactory exhibit of the state of the finances and tho condition of the various branches of tho public service administered by that de partment. The ordinary revenues from all sources for tho liscal year ending June 110, 1881, were: From customs, 198,159,070.02; from internal revenue, 135,204.383.51; from public lands, 2,201,803.17; from tax on circulation and deposits of national banks, $5,110,115.72 ; from repayment of interest by Pacific railway compa nies, 8810,83.80; from sniffing fund for Pacific railway companies, 05,180.54 ; from customs, fees, fines, penalties, etc., SI .225 ,5 14.80 ; from fees, consular, let ters patent and hinds, $2,244,083.99; from the proceeds of sales of govern ment property, S2ii.217.400 ; from profits on coinage. 3,408,485.01 ; from reve nues of the Dist rict of Columbia, 2,010, 199.23; from miscellaneous sources, 6, 200.880.13. Total ordinary receipts, 300,782,292.57. The ordinary expendi tures for the same period were : For civil expenses, 17,941,177.19; for foreign intercourse, 1,093,954.92 ; for Indians, 0,514,101.09; for pensions, 50,059,279.02; for the military estab lishment, including river and harbor im provementsand; arsenals, 40,400,400.55; for tho naval establishment, including vessels, machinery, improvements at navy yards, 15,080,071.00; for miscel laneous expenditures, including public buildings, lighthouses and collecting the re venue, 5:41, 837 ,280.57; for expendi tures on account of the District of Co lumbia, 3,543,912.03; for interest on the public debt, 82,508,741.18; for premium on bonds purchased, 1 ,001 , 248.78. Total ordinary expenditures, 200,712,887.59, leaving a surplus of revenue of 100,009,404.98, which was applied as lullows: lo the redemption of bonds, tho sinking fund, 74,371,200; fractional currency for the sinking fund, 109,001.05; loan of Feb ruary, 1801, 7,418,000; ten-forties of 1804, 2,010,150; five-twenties of 1802, 18,300,000; five-twenties of 1804, 3,- 400,000 ; live-twenties of 1805, 37,300,- 000; consols ol 18(5, 143,l.r0 ; const consols ot 1S05, 143,150; consols of 1807, 950,150; consols of 1808, 337, 400; Texan indemnity stock, 1 00,1 mk); old demand compound interest and other notes, 1,830,000; and to tho increase of cash in the treasury, S14,037,02."..93; total, lOO,0G9.4o4.9s. The requirements of the sinking fund for the year amounted to 90,780, 004.02, whirh suni included a balance of 19,817, 12.7S not provided for during the present liscal year. The sum of ?s74,4.sO.'Jul.O) was applied to this fund, which left a deficit of ?10,305,87.-.. 17. Tho increase of the revenues for 18.-1 over those of the previous year was 129,352,901.10. It is estimated that the l-i'i-i-i"1 - d tring the .r- if t'- "i! x ; f 130,000,000, applicable to the sinking fund and tho redemption of tho public debt. TIIE RETIREMENT OV SILVER CERTI FICATES. I approve fhe recommendation of the secretary of the sion be made for treasury, that provi the early retirement of silver certificates and that the act re quiring their issue be repealed. They were issued in pursuance of th ' policy of the government to maintain silver at or near the gold standard, and were ac cordingly made receivable for all cus toms, taxes and public dues. About 8GG,000.000 of them are now outstand ing. They form an unnecessary addi tion to the paper currency, a sufficient amount of which may be readily sup plied by the national banks. THE COINAGE OF SILVER DOLLARS. In accordance with the act of Febru ary 28, 1878, the treasury department has monthly caused at least 2,01 10 ,000 in value of silver bullion to be coined into standard silver dollars. 110,000,000 ot theso dollars have been already coined, while only about 34,000,000 are in circulation. I'or the reasons which he specifies, I concur in the secretary's recommendation that tho provision for coinage of a lixed amount each month be repealed, and that hereafter only so much be coined as shall be necessary to supply the demand. Tho secretary advises that the issue of gold certificates should not for the pres ent, be resumed, and suggests that tho national banks may properly be forbid den by law to'retire their currency, ex cept upon reasonable notice of their in tention so to do. Such legislation would seem to be justified by the recent action of certain banks on the occasion referred to in the secre tary's report. Of the 15,000,000 of fractional currency still outstanding, only about 80,000 has been redeemed the past year. The suggest ion that this amount may properly be dropped from future statements of the public debt seems worthy of approval. So also does the suggestion of the secretary as. to the advisibility of relieving tho calendar of the United States courts in the southern district of New York, by the transfer to another tribunal of tho numerous suits there pending against collectors. TIIE CUSTOMS REVENUE. The revenue from customs for the past fiscal year was 198,159,07G.02, an increase of 11.037.011.42 over that of the year preceding. 138,098,502.39 of this amount was collected at the port of New York, leaving 50,251,113.1.3 as tho amount collected at all tho other ports of the country. Of this sum 47,977, 137.03 was collected on sugar, melada and molasses; 27,285,024.78 on wool and its manufactures; 21 ,402,534.34 on iron and steel, and manufactures there of; 19,038,005.81 on manufactures of silk; 10.825,115.21 on manufactures of cotton 0,409,043.04 on wines and spirits, mak ing a total revenue from these sources of 133,059,720. The expenses for collec tion during the past year were 0,41 9, 345.20, an increase over the preceding year ot 38 ,410.04. Jsotwithstandmg the increase in the revenue from cus toms over the preceding year the gross value of the imports, including free goods, decreased over 25 ,000 ,000. The most marked decrease was in the value of unmanufactured wool, 114,023,082, and that of scrap and pig-iron, 12,810, 671. The value of imported sugar on tho other hand showed an in crease of 7,457.474, of steel rails 4.345, 521, of barley ,2.154,204, of steel in bars, ingots, etc., 1 ,020,040. Contrasted with the imports during the last fiscal year the exports were as follows: Domestic merchandise, 883,925,947; foreign merchandise, 18,451,399; total, 902, 377,340; imports of merchandise, 042, 004,028; excess o exports over imports of merchandise, 259,712,718; aggregate of exports and imports, 1,545,041,974. Compared with the previous year there was an increase of 00,738,088 in tho value of exports of merchandise, and a decrease ' of 25,290,118 in the value of imports. The annual average of the imports of merchandise over ex ports (hereof for ten veai-s previous to June 30, 1873, was 104,800,922, but for the last six years there has been an ex cess of exports over imports of mer chandise amounting to ' 1.180,008,103, an annual average of 190,778,017. Tho special value of the exports of domestic merchandise was 370,010,474 in 1870 and 883,925,947 in 1881, an increase of 507,309,374, or 135 per cent. The value of imports was 435,958,408 in 1870 and 042,004, 028 in 1881, an increase of 20,078,220, orforty-seven per cent. During each year, from 1802 to 1879 inclusive, the exports of specie exceeded the im ports. Tho largest excess of such ex ports over imports was reached during the year 1804, when it amounted to 92,280,929 ; but during tho year ended June 30, 1880, the imports of coin and bullion exceeded the exports by 75, 891,391, and during the last liscal year tho excess of imports over exports was 91,108,050. THE LIQUOR TAX. It is, perhaps, doubtful whether tho immediate reduction of the rato of taxation upon liquors and tobacco is advisable, especially in view of tho drain upon tlio treasury which must attend the payment of arrears of pen sions. A comparison, however, of tho amount of taxes collected under the varying rates of taxation which have at dill'ereiit times prevailed suggests the intimation that some reduction riiay soon bo made vtithout material diiniuu tion of tho revenue. REVISION OF TARIFF. The tariff laws also need revision; but that a due regard may bo paid to tho conflicting interests ot our citizens, im- r . i . .. . i i i i l :. i. lr unit cn u.ges " " - no mauo hi. iius te-tsiuu, niiuiuiwiuu such as was lately approved by the Senate, and is now recommended by tho secretary of tho treasury, would doubt less ligliten tho labors of Congress whenever this subject fahall be brought to its consideration. AVAR UEI'ARTMKNT. The accompanying report of tho sec retary of war will ma'.e known tho operations of that department for tho pat year, lie suggest!-' measures' for promoting the eihii.ncy of the army wil bout adding lo the number of its otlicers, and recommends the IcgMa'.ioii necessary to lucre ! !1 1(1 ." ISC ! If I tl.l numin-r e icitiin! Ol inl ever shifting frontier; to" preserve pence and suppress disorder nnd marauding in new settlements; to protect, sot tiers and their property against Indians and In dians against tho encroachments of in truders; and to enable peaceable im migrants to establish homos in tho most renioto parts of our coiuilry. The army is now necessarily scattered over such a vast extent of territory that whenever nn outbreak occurs reinforce ments must be hurried lrom many quarters over great distances, and always at heavy cost for transportation of men, horses, wagons, and supplies. I concur in the recommendations of the secretary for increasing the army to tho strength of thirty thousand enlisted men It appears by the secretary's re port that, in the absence of disturbances on tho frontier, the troops have been actively employed in collecting the In dians hitherto hostile and locating them on their proper reservations; that Sitting Rull and his adherents are now prisoners at Fort Randall; that the Utes have been moved to their new reservation in Utah; that during the recent outbreak of Apaches it was necessary to reinforce ganisons in Ari zona by troops withdrawn from New" Mexico, and that some ot the Apaches are now held prisoners for trial, while some have escaped and tho majority of the tribe are now on their reservation. There is need of legislation to prevent intrusion upon the lands set apart for the Indians. A largo military force, at great expense, is now required to patrol the boundary line between Kansas and the Indian Territory. The only punish ment that, can at present be inflicted, is the forcible removal of the intruder and tho imposition of a pecuniary fine, which, in most cases, it is impossible to compel. There should be a penalty by imprisonment in such cases. TIIE SIGNAL-vSERVICE. The separate organization of the signal-service is urged by tho secretary of war, and a full statement of the ad- ! vantages of such permanent organiza- . . 1 1 A A ' f XL. lion is presented m ine repon, oi ine chief signal ollicer. A detailed account of the useful work performed by the signal corps and tho weather bureau is also given in that report. THE INDIAN BUREAU. I ask attention to tho statements of the secretary of war regarding the re" quisitions frequently made by tho Indian bureau upon the subsistence department of the army for the casual support of - . t j bands and tribes of Indians whoso ap- Sropnations arc exhausted. Ihe war epartment should not be left, by rea ' son of inadequate provision for the In dian bureaii, to contribute for the lnaiiv tenance of Indians. RIVER AND nARBOR IMPROVEMENT. The report of the chief of engineers furnishes a detailed account of the oper ations for the improvement of rivers and harbors. I commend to vour attention the suggestions contained in this report in regard to the condition of our fortiti-, cations,c specially our coast defenses, and recommend an increase of the strength of the engineer battalion, by which tho efficiency of our torpedo sys tem would be improved. I also call your attention to tho remarks upon the improvement of tho South Pass of tho Mississippi river, the proposed free bridge over tho Potomac river at (Jeorgelown, the im portance of completing at an early day the north wing of tho department build ing, and other recommendations of the secretary of war which appear in his report. "The actual expenditures of this department for the fiscal year ending June 30, 1881, were 42,122,201.39. The "appropriations for the year 1882 were 14,889,725.42. The estimates for 18S3 are 44,541,270.91. The report of tho secretary of the navy exhibits tho condition of that branch of the service, and presents val uable suggestions for its improvement. I call your especial attention also to the appended report of tho advisory board which ho convened to devise siutablo measures for increasing Che efficiency of the navy, and particularly to report as to the character and number of vessels necessary to place it upon a footing commensurate with tho necessities or tho government. I cannot too strongly urge upon my conviction that every consideration of national safety, econ omy and honor imperatively demands a thorough rehabilitation of our navy. With a full appreciation of the fact that compliance with the suggestions of the head of that department and of tho ad visory board must involve a large ex penditure of the public moneys, I earn estly recommend such appropriations as will accomplish an end which 6eems to me so desirable. Nothing can be more inconsistent with true public economy than with holding tho means necessary to accom plish the objects intrusted by tho con stitution to tlio national legislature One of theso objects, and one which is of paramount importance, is declared by our fundamental law to bo the provision for tho " common defense." Surely nothing is more essential to tho defense of tho union state and of all our people that the efficiency of our navy. "VY o have for many years maintained with for eign governments the relations of hon orable peace, and that such relations may bo permanent is desired by every patriotic citizen of the republic. Rut if wo read the teachings of history wo shall not forget that in tho life of every nation emergencies may arise when u resort to arms can alone save it from dishonor. No danger from abroad now threatens this people, nor have we any cause to distrust the friendly professions of other governments. Rut for avoid ing, as well as for repelling, dangers that may threaten us in future, we must be prepared to enforce any policy which ivd think wise to adont. AVo must J ready to defend our iiiU'bors against aggression; to protect, by the disposition of our ships-of-war over the highways of com merce, Ihe varied iiiterehLs of our foreign tnide, and the persons and property of our citizens abroad ; to maintain every where the honor of our flag, and distinguished posi.ion which we u rightfully claim among the natioi the world. ) VOSTAL AFFAIR. The r port of the postmaster-; V. is a graiiling exhil i. of the gro .',c' ' eilt.-iency of the posial si-rvicev ci iiils l'l'oiu lKistavf and otlu r sources daring the o.iM fiscal ? -,. I -i :.',. '', , j.,t
Significant historical Pennsylvania newspapers