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
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