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*tiH -"MM" 91 i ?•?.- '<* 1,J< "* * ^ -<",-,R,- >„P.T ;, »• .< ; ,-^V^: - ,V -V- ,. -• ^ YR *1 * y^r \ ^ ̂ THE MESSAGE. Resident Cleveland's First Oommunication to ' Congress. % "I * i.?'t H© Urges a Suspension ,;V ,r#t the Coinage of. Silver. Recommends a Reduction of the t Tariff on the Necegsa- r ries of Life.^F Favors the Tehuantepeo Ship Railway Across the Isthmus. enlarging entangling allianocs with foreign states, I do not favor a policy of aoqnlsltlon of new and distant - territory, or the incorporation of nsnote interests with oar own, The laws of progress are vital and oraanio, and we mast he conscious of that irresistible tide of commercial expansion which, as the concomitant of our active civilisation, day by day, la being urged on­ ward by those increasing facilities of production, transportation, and communication to which steam and electricity have given birth. But our duty in tho present instructs us to address ourselves mainly to the development of the vast resources of the great area com­ mitted to our charge, and to u« cultivation of the arts of peace within our borders, though jealously alert in preventing the American Hemisphere from being involved in the politi­ cal problems and complications of distant gov­ ernments. Therefore I am unablo to recom­ mend projKiaitiong involving paramount privi­ leges of ownership or rights outside of our own territory, when coupled with absolute and un­ limited engagements to defend territorial in­ tegrity of the 81 ate where such interests lie. SHIP RAILWAY. While the general project of connecting the two oceans by means of a canal is to be encour­ aged, I am of opin on that any schome to that end, to be consider ad with favor, shall be free from the features alluded to. The Tehuantepeo route is declared In engineers of the highest re­ pute and by competent scientists to afford an entirely practical transit for vessels and car­ goes by means of a ship railway from the Atlantic to the Pacif c. The obvious ̂ vantages of such a route, if feasible, over others more remote from the axial lines of traffic between Europe and the Pacific, and particularly be­ tween the valley of the Mississippi and the western coast o' North and South America, are deserving of consideration. Whatever highway may be constructed across the barrier dividing the two greatest maritime areas of the world, must be for the world's ben­ efit--a trust for mankind, to be removed from the chance of domination by any single power, nor become a point of invitation of hostilities or a prize for warlike ambition. An engagement combining the con struction, ownership, and oper­ ation of such a work by this Government, with an offensive and defensive alliance for its protection with the foreign states whose responsibilities and rights we wouM share, is, in my judgment, inconsistent with, such dedication to universal and neutral use, and would, moreover, entail measures for its realization beyond this scope of our national policy or present means. The lapse of years has abundantly confirmed the wisdom and foresight of those earlier ad­ ministrations, which, long before tho conditions of maritime intercourse wer? changed and en­ larged by the progress of th i age, proclaimed the vital need of inter-oceanic traffic across the commercial isthmus and consecrated it in ad­ vance to the common use of mankind by their positive declaration and through the formal obligation of trade. Townrd such realization the efforts of my administration w ill be applied, ever bearing in mind the principles on which it must rest, and which were declared in no un- A TRIBUTE TO MB. HENDRICKS. ( certain tones bv Mr. Cass, who, while Secretary To the Congress of the United States: Your | „of State in 1858, announced that "what the assembly is clouded by a sense of public | United States want in Central America, next to bereavement caused by the recent and sudden the happiness of the people, is the security and death of Thomas A. Hendricks, Vice President tieutralitv of the inter-oceanic routes which of the United States. His distinguished public i may be laid through it." services, his complete integrity and devotion to j TRANSCONTINENTAL RATI..WAYS every duty, and his personal virtues, will find I The construction of three transcontinental lines honorable record in his country's history. Ample | of rnilwav, all in successful operation, wholly and repeated proofs of the esteem and confi-J within our territory, and uniting the Atlantic dence in which he was held by his fellow-coun-Jknd the Pacific Oceans, has been accompanied -1 T>v -- - li Plea for the Education and , Civilization of th# > Indians. ' • 4 Our Relations with Foreign Powers in a Satisfac­ tory Condition. Polygamy Denounced find Civil- Seryiee Reform C«n- mended. AGood Word for the Life-Saving Service--The Signal-Servioe . Bureau. trymen were manifested by his election to of­ fices of the most important trust and highest dignity, and, at length, full of years and honors, he has been laid at rest amidst general sorrow and benediction. CONSTnTTIONAT, TITTY. The Constitution, which requires those chosen to legislate for the people to annually meet in the discharge of their solemn trust, also re­ quires the President to give to Congress infor­ mation of the state of the Union and recom­ mend to its consideration such measures as he ehall deem necessary and expedient. At the threshold of a compliance with these constitu­ tional directions, it is well for us to bear in mind that our usefulness to the people's interests will be promoted by a constant appreciation of the ecope and character of our respective duties as they relate to Federal legislation. While the Executive may recommend such measures as he shall doom expedient, the responsibility for legislative action must and should rest upon those selected by the people to make their laws. Contemplation of the grave and responsible functions assigned to the executive branches of. the Government under the Constitution will dis­ close the partition of power between our re­ spective departments, and their necessary inde­ pendence, and also the need for the exercise of all the power entrusted to each, in that spirit of comity and co-operation which is essential to the proper fulfillment of the patriotic obliga­ tions which rest upon us as faithful servants of the people. The jealous watchfulness of our constituencies, great and small, supplements their suffrage; and. therefore, in the tribunal they establish everv public servant should be judged. FOREIGN RELATIONS. It is gratifying to announce that the relations of the United States with all foreign powers continue to be friendly. Our position, after nearly a century of successful constitutional government, maintenance of good faith in all of our engagements., the avoidance of complica­ tions with other nations, and consistent and amicable attitude toward the strong and weak alike, furnish proof of a political disposition which renders professions of good-will unneces­ sary. There are no questions of difficulty pend­ ing with any foreign Government. TH* ARGENTINK GOVERNMENT has revived the long dormant question of the Falkland Islands, by claiming from the United States indemnity for their loss, attributed to the action of the commander of the sloop-of-war Lexington in breaking up a piratical colony on those islands in 1831, and their subsequent occu­ pation by Great Britain. In view of the ample justification for the act of the Lexington, and derelict condition of the islands before and after their alleged occupation by Argentine colonists, this Government considers the claim aa wholly groundless. AUSTRIA-HUNGARY. The question has arisen with tho Government of Austria-Hungary touching the representation •of the United States at Vienna. Having under inyconstitutional prerogative appointed an es- "tiflfable citizen of unimpeached probity and •competence as Minister to that court, the Gov­ ernment of Austria-Hungary invited this Gov- -ernmeiu to the cognizance of certain exceptions, •based /upon allegations against the personal 4U5deptibility of Mr. Keiley, the appointed •envoy, aBking that in view thereof the appointment should be withdrawn. The reasons advanced were such as could not be acquiesced in without violation oi my oath of office and the precepts of the Constitution, since they necessarily involve a limitation in favor of a foreign Government upon the right of selec­ tion by the Executive, and require nuoh an ap­ plication of a religious test as a qualification for office under the United States as would have resulted in the practical disfranchisement of a v results of a most interesting and impressive nature, and has created new conditions, not in the routes of commerce only, but in political geography, which powerfully affect our relations toward, and necessarily increase our interests in. any trans ishthmian route which may be opened and employed for the ends of peace and traffic, or in other contingencies, for uses inim­ ical to both. Transportation is a factor in the cost of com­ modities scarcely second to that of their produc­ tion, and weighs as heavily upon the consumer. Our existence already has proven the great im­ portance of having the competition between land carriage and water carriage fully devel­ oped. each acting as a protection to the public against the tendencies of monopoly, which is in­ herent in the consolidation of wealth and power in the hands of vast corporations. These sug­ gestions may serve to emphasize what I have already said on the score of the necessity of a neutralization of any inter-oceanic transit, and this can only be accomplished by making the uses of tho route open to all nations and sub­ ject to the ambitions and warlike necessities of none. The drawings and report of a recent survey of the Nicaragua Canal route, made by Chief En­ gineer Menocal, will be communicated for your information. Cim-I, PERT" AND BOLIVIA. The claims of citizens of the United States for losses by reason of tho late military operations of Chili in Peru and Bolivia} are the subject of negotiation for a Claims Convention with Chili, providing for their submission to arbitration. CHINA AND THE CHINESE QUESTION. The harmony of our relations with China is fully sustained in the application of < the acts lately passed to execute the treaty of 1880, re­ strictive of the immigration of Chinese laborers into the United States. Individual cases of hard­ ship have occurred beyond the power of the Ex­ ecutive to remedy, and calling for judicial de­ termination. The condition of the Chinese question in the Western States and Territories Jis, despite this restrictive legislation, far from being satisfac­ tory. The recent outbreak in Wyoming Terri­ tory, where numbers of unoffending Chinamen, undisputably within the protection of the trea­ ties and the law, were murdered by a mob, and the still more recent threatened outbreak of the same character in Washington Territory, are still fresh in the minds of all, and there is ap­ prehension lest the bitterness of feeling against the Mongolian race on the Pacific slope may find vent to similar lawless demonstration. All the power of this Government should be ex­ erted to maintain the amplest good faith toward China in the treatment of these men and the in­ flexible sternness of the law in bringing the wrong-doers to justice should be insisted upon. Every effort has been made by this Government to prevent these violent outbreaks and to aid the representatives of China in their investigation of these outrages, and it is but just to say that they are traceable to the lawlessness of men not citi­ zens of the United States engaged in competi­ tion with Chinese laborers. Race prejudice is the chief factor in originat­ ing these disturbances, and it exists in a large part of our domain, jeopardizing our peace and the good relationship we try to maintain with China. The admitted rights of a Government to prevent tho influx of elements hostilo to its internal peace and security may not Be ques­ tioned, even where there is no treaty stipula­ tion on the subject. That the exclusion of Chinese labor is demanded in other countries where like conditions prevail, is strongly evidenced in the Dominion of Canada, where Chinese immigration is now regulated by laws more exclusive than our own. If existing laws are inadequate to compass the large class of our citizens and the abandonment ! ena in. via^"' 1 f hal1 b? prepared to give earnest of a vital principle of our Government. The Austro-Hungari an Government finally decided not to receive Mr. Keiley as the Envoy of the United States, and that gentleman since re­ signed his commission, leaving the post vacant. I have made no new nominations, and the inter­ ests of this Government at Vienna are now in the care of the Secretary of Legation, acting as charge d'affaires ad interim. GUATEMALA. Early in March last war broke out in Central America, caused by the attempt of Guatemala to consolidate the Several States into a single government. In these contests between our neighboring States the United States forebore to Interfere actively, but lent the aid of their friendly offices in deprecation of war and to pro­ mote peace and concord among the belligerents and by such council contributed imixjrtantly to the restoration of tranquillity in that locality. UNITED STATES OF COLOMBIA. Emergencies growing out of civil war in the United States of Colombia demanded of the Government at the beginning of tho adminis­ tration of the employment of an armed force to fluliill its guarantees, under the thirty-fifth article of the treaty of 1846, in order to keep the transit open across the Isthmus of Panama Desirous of exercising only the powers express­ ly reserved to us by the treaty, and mindful of the rights of Colombia, the forces sent to tho Isthmus were instructed to confine their action to "positively and efficaciously" preventing the consideration to any further remedial measures within the treaty limits which the wisdom of Congress may devise. THE CONGO STATE. The independent state of the Congo has been organized as a government under tbe sov­ ereignty of his Majesty the King of the Belgians, who assumes its chief magistracy in his per­ sonal character only, without making the new state a dependency on Belgium. It is for­ tunate that a l>enighted region, owing all it has of quickening civilization to the beneficence of the philanthropic spirit of this monarch, should have the advantages and security of his benevo­ lent supervision. The action taken by this Government last year in being the first to recognize the flag of the In­ ternational Association of tho Congo has been followed by formal recognition of the new nationality which succeeds to its sovereign pow­ ers. A confcrence of delegates of the principal commercial nations was held at Berlin last win­ ter to discuss methods whereby the Congo basin might be kept op«n to the world's trade. Dele­ gates attended on behalf of the United States on the understanding that its part should be merely deliberative, or without imparting to the result any binding character, so far as tho United State were concerned. This reserve was due to the indisposition of this Government to share in any disposal by the International Congress of jurisdictional questions in remote foreign territories. The transit, and its accessories from beinc "inter I *e9ult? °' the conference were embodied in a rupted or embarrassed." formal tv.n T-' *•= • The execution of this delicate and responsi­ ble task necessarily involved police control where the local authority was temporarily pow­ erless, but always in aid of the sovereignity of Colombia. The prompt and successful fulfill­ ment of its duty by this Government was highly appreciated by the Government of Colombia" and has been followed by tho expression of its satisfaction. High praise is due to the officers and men engaged in this service. The restora­ tion of peace on the Isthmus by the re-establish- ment of the constitutional Government there being thus accomplished the forces of the Unit^ ed States wero withdrawn. , Pending these occurrences, a question of nuch importance was presented by decrees of the Colombian Government proclaiming the Closure of certain ports then in the hands of insurgents, and declaring vessels held by the revolutionists to be piratical and liable to cap- ulVA i)V fl.ni; PAVTA* Wrt _ A * •itions could the United States assent. An ef­ fective closure of ports, not in the possession Of the Government, but held by tho hos- Sfe?. partisans, could not be recognized. Neither pould the vessels of the, insurgents • 5f?iln8J legitimate sovereignty1 be deemed hoetes humam yaurin, within the precepts of in­ ternational law. Whatever might be the defini- tton and penalty of thtir acts under the muni­ cipal law of the State against whose authority they wjre in revolt, the denial by this Govern­ ment of the Colombian proposition did iv>t, how-" *veT* imply the admission of a belligerent status on the part of the insurgents. The Colombian Government has expressed its willingness to and earnest rsiwssantaHom at our part, Mr. Santos wee, after aa alleged trial and oonvio- tiosn, eventually included In a general deoree of formal act of the nature of an International Convention, which laid down certain obligations purporting to be binding on tho signatories, subject te ratification within one year. Not­ withstanding the reservation under which the delegates of the United States attended, their signatures were attached to the general act in the same manner as those of the plenipotentiaries of other governments, thus making the United States appear, without reserve or qualification, as signatories to a joint international engagement imposing on the sign­ ers the conserv ation of the territorial integrity of distant regions, where we have no established interests or control. This government does not, however, regard its reservation Of liberty of action in the premises as at all impaired, and holding that an engagement to those in the obli­ gation of enforcing neutrality in the remote val­ ley of the Congo would be an alliance whose responsibilities we are not in a position to assume, I abstain from asking the sanc­ tion of the Senate to that general act. The correspondence will be laid before you, and the instructive and interesting report of tho agent sent by this government to the Congo country, and his recommendations for the estab­ lishment of commercial agencies on the African coilst, are also submitted fdr your consideration. THE COMMERCIAL COMMISSION. The commission appointed by mv predecessor j last winter to visit the Central and" South Amer­ ican countries and report on the methods of en- 1 larging the commercial relations of the United States therewith, has submitted reports which I will be laid4jeI(>rtryjTa. I " { COREA. No opportunity has been omitted to testify the amnesty and pardon by the Bcuadorian execu ttve and releaeed, declaring the oneation of his American eittaenahip denied by the Government, but insisted upon by our own. MUNCH cumi PAID. The amount adjudged by the late French and Amerioan Claims Commission to be due from the United States to the French claimants en aeoonnt of injuries suffered by them during the war of secession having been appropriated by the last Congress, has been duly paid to the French Government. AMERICAN CLAIMS AGAINST THE FRENCH. The act of Feb. 25, 1685, provided for a pre­ liminary search of the records of the French Priito Court for the evidence bearing on the claims of American citizens against France for spoliations committed prior to 1801. Tho duty has been performed, and the report of the agent Will be laid before you. AMERICAN PORK ABROAD. I regret to say that the restrictions upon the Importation of our pork into France continue, not­ withstanding the abundant demonstrations of safety from danger in its use; but I entertain strong hopes that, with a better understanding of the matter, this vexatious prohibition will be re­ moved. It would be pleasing to be able to say as much with regard to Germanv, Austria and other countries whore such food products are ab­ solutely excluded without present prospect of reasonable change. THE GERMAN GOVERNMENT AND NATUALIZED AMERICANS. The interpretation of our existing treaties of naturalization by Germany during the past year has attracted attention by'reason of an apparent tendency on the part of the Imperial Govern­ ment to extend the scope of the residential re­ strictions to which returning naturalized citizons of German origin are asserted to be liable under the laws of the empire. The temperate and just attitude taken by this Government with re­ gard to these questions, will doubtless lead to a satisfactory understanding. THE CAROLINE ISLANDS DISPUTE. The dispute of Germany and Spain relative to the domination of the Caroline Islands has at­ tracted the attention of this Government, by reason of extensive interests of Americun citi­ zens having grown i p in those parts during the last thirty-nine years, and because the question of ownership involves jurisdiction of matters affecting tho status it our citizens under civil aiyl criminal law. Whilst standing wholly aloof from the proprietaiy issues raised between powers to both of which the United States are friendly, this Government expects that nothing in the present contention shall unfavorably af­ fect our citizens carrying on a peaceful com­ merce on their domicile, and has BO informed the Governments of Spain and Germany, GREAT BRITAIN. The marked good will between the United States and Great Britain has been maintained during the past year. THE BRITISH-AMER/CAN FISHERIES. The termination of the lishing clauses of the Treaty of Washington, fn pursuance of the joint resolution of March 3, 1883, musfe have resulted in the abrupt cessation on the 1st of July of this year, in the mi.'.st of their vultures, of the oper­ ations of citizens of tho Un.ted States engaged in fishing in British-American waters, but for a diplomatic understanding reacliedfowith her Majesty's Government in June last; whereby assurance was obtained that no interruption of those operations slipuld take place during the current fishing season. in the interest of good neighborhood and tbe commercial intercourse of adjacent communi­ ties. A COMMISSION RECOMMENDED. The question of the North American fisheries is one of much importance. Following out the intimation given by me when the extensive ar­ rangements above described were negotiated, I recommend that CongresB provide for the ap­ pointment of a commission, in which the Gov­ ernments of the United States and Great Britain shall be respectively represented, charged with tho consideration and settlement upon a just, equitable, and honorable basis of the entire question of the fishing rights of the two Gov­ ernments and their respective citizens on the coast of the United State*; and British North America. " ^ . The fishing interests being intimately related to other general questions dependent upon con­ tiguity and intercourse, consideration thereof in all their equities might also properly come within the purview of such commission, and the fullest latitude of expression on both sides should be permitted. The corresp ndence in relation to the fishing rights will be submitted. THE ALERT. The Arctic exploring steamer Alert, which was generously given by Her Majesty's Govern­ ment to aid in the relief of the Greely expedi­ tion, was, after the successful attainment of that humane purpose, returned to Great Britain in pursuance of the authority conferred by tho act of March 3, 1885. EXTRADITION WITH GREAT BRITAIN. The inadequacy of the existing engagements for extradition between the United States and Great JBrituin has been long apparent. The fourth article of the treaty Of 1842, one of the earliest compacts in this regard entered into by us, stipulated for surrender in respect of a limited number of offenses. Other crimes, no less inimical to the social welfare, should be embraced, and the procedure of extradition brought in harmony with present international practices. Negotiations with Her Majesty's Government for an enlarged treaty of extradition have been pending since 1870, and I entertain strong hopes that a satisfactory result may be soon attained. THE BOUNDARIES OF ALASKA. The frontier line between Alaska and British Columbia, which was defined by the treaty of cessation with Bussia, follows the demarkation assigned in a prior treaty between Great Britain and Kussia. Modem exploration discloses that this ancient boundary is impracticable as a geo­ graphical fact. In the unsettled condition of that region the question has lacked importance, but the discovery of mineral wealth in the territory the line is supposed to traverse ad­ monishes that the time has come when an accu­ rate knowledge of the boundary is needed to avoid jurisdictional complications. I recommend, tliereforo, that provision be made for a preliminary reconnoissance by officers of the United States to the end of acquiring more precise information on the subject. I have invited the Russian Government to con­ sider with us the adoption of a more convenient line to be established by meridian observations or by known geographical features without tho necessity of an expensive survey of the whole. AMICABLE RELATIONS WITH HAYTI. The late insurrectionary movements in Hayti having been quelled, the Government of that republic has made prompt provision for adjudi­ cating the losses suffered by foreigners because of hostilities there, and the claims of certain citizens of the United States will be in this manner determined. The long pending claims of two citizens of the United States, Pelletier and Lazare, have been disposed of by arbitration, and an award, in favor of each claimant, has been made, which by the terms of the engagement is final. It re­ mains for Congress to provide for the payment of the stipulated amount of the expenses. A question arose with Hayti during the past year, by reason of the exceptional treatment of an American citizen, Mr. Van Bokkelen, a resident of Port Au Prince, who on suit by creditors residing in the United States was sentenced to imprisonment, and under tire operation of Haytian Statutes was denied the relief secured to a native Haytian. This Gov­ ernment asserted his treaty x'ight to equal treat­ ment with natives of Hayti in all suits at law. Our contention was denied by the Haj-tian Gov­ ernment, which, however, while still "professing to maintain the ground taken against Mr. Van Bokkelen's right, terminates the controversy by setting him at liberty without explanation. CHOLERA AND EPIDEMIC DISEASES. An International Conference to consider the means of arresting the spread of cholera and other epidemic diseases, was held at Home in May last, and adjourned to meet again on fur­ ther notice. An expert delegate in behalf of the United States has attended, and will submit a report. FRATERNAL RELATIONS WITH MEXICO. Our relations with Mexico continue to be most cordial as befits those of neighl>ors betweon whom the strongest ties of friendship and inti­ macy exist as the natural and growing consequence of the similarity of our institutions and geographical propinquity The relocation of the boundary line between the United States and Mexico eastward of tho Rio Grande, under the convention of July '29, 1882, has been unavoidably delayed, but I see no diffi­ culty in securing a prolongation of the period for its accomplishment. The lately concluded com­ mercial treaty with Mexico still awaits the stipulated legislation to carry its provisions into effect, for which one year's additional time has been Becured by a supplementary article signed in February last, and since ratified on both sides. As this convention, BO important to the com­ mercial welfare of the two adjoining countries, has been constitutionally confirmed by the treaty-making branch, I express tho hope that legislation to make it effective may not be long delayed. The large influx of capital and enter­ prise to Mexico from the United StateB contin­ ues to aid in the development of the resources and in augmenting the material well-being of our sister Republic. Lines of railway, penetrat­ ing to tho heart und capital of tho country, are bringing the two people into mutually beneficial intercourse, and enlarged facilities 'of tran sit add , to profitable commerce, create now markets, and furnish avenues to otherwise isolated "communities. have already adverted to the suggested con­ struction of a ship railway across the narrow formation of the Territory of Mexico at Tehu- antepec. THE PERUVIAN WAR CLAIMS. With the gradual recovery of Peru from the effects of her late disastrous eonllict with Chili, and with the restoration of civil authority in that distracted country, it is hoped that tho pending war claims of our citizens wrM be adjusted. In conformity witli the notification given by the Government of Peru, tho existing treaties of commerce and extradition between the United States and that country will terminate March 31,1886. RUSSIA AND THE JEANNETTE. Our good relationship with Russia continues. pin wall by the insurrectionary foreoH i luu umbou mates were Hie nrst to recognize. , •* lorcos. AMERICAN OFFICERS IN COREA. •TVio intaJt L1'jthmus c/iNAL. I I regard with favor the application made by tlcable transit for 8hir>R ^rac,i Corean Government to be allowed to employ now on his way to Siberia, bearing the testi- •eparating the Atlantic froiri thA ln Ty '"8truttor», to monials voted by Congress to those who gener- Oeen repeatedly manifested flnnw »T assent of Congress becomes necessa- ously succored the survivors of the unfortunate aturv^ Mvinimedilu B Z * ^h'TPy to say this request has the Jeaimette expedition. ihltc ltwlecessors caused to , concurrentfikncuon of China and Japan. j CORDIAL RELATIONS WITH BPAIN-, , THE SANTOS CASE. | It is gratifying to advert to the cordiality of The arrest and imprisonment of Julio R. San- ] onr intercourse with Spain. The long-pending t»8, a citizen of the United States, by the author- claim of the owners of the ship MaBonic, for loss iv!e? ' ®c'1^ador, gave rise to a contention with suffered through the admitted dereliction of tho that Government, in which his right to be re­ leased or to have a speody and impartial trial on announced charges, and with all guarantees of defense stipulated by treaty, was fylng confirmation. Other question* with Spain have been dispoaed of or are under diplomatic consideration with a view to a just and honor­ able settlement. Tbe operation of the commer­ cial agreement with Spun of Jan. 2 tyid Feb. 13, 1884, has been found inadequate to the commer­ cial need* of the United States and the Spanish Antilles, and tho terms of the agreement are subjected to oonfiloting interpretations in those islands. Negotiations have been instituted at Madrid for a full treaty, not open to these objea&ions, and in the lino of the general policy tracing the neighborly intercourse of proximate communi­ ties to which I elsewhere advert, and aiming moreover at the removal of existing burdens and annoying restrictions; and, although a sat­ isfactory termination is promised, I am com­ pelled to delay its announcement. INTERNATIONAL COPYRIGHT. An International Copyright Convention was held at Berne in September, on the invitation of the Swiss Government. The Envoy of the United States attended as a delegate, but re­ frained from committing the Government to the results even by signing the recommendatory protocol adopted. The interesting and important subject of International Copyright has been be­ foreyou for several years. Action is desirable to effect the object in view, and while there may be a question as to the relative advantage of treating it by legislation or specific treatment, the matured views of the Berne conference can­ not fail to aid your consideration of the subject. COMPLICATIONS WITH TURKEY. The termination of the commercial treaty of 1862 betweon the United States and Turkey has been sought by that government. While there is question as to the sufficiency of the notice of termination given, yet as the commercial rights of our citizens in Turkey come under "the favored nation guarantees" of the prior treaty of 1830, and as equal treatment is admitted by the Porte, no inconvenience can result from the assent of this Government to the revision of the Ottoman tariffs, in which the treaty powers have been invited to join. Questions Concerning our citizens in Turkey may be affected by the Porte's non-aquiescence in the right of expatriation and by the imposi­ tion of religious tests as a condition of residence in which this Government cannot concur. AMERICAN CITIZENS MUST BE RESPECTED. The United States must hold, in their inter­ course with every power, that the status of their citizens is to be respected and equal privileges accorded to them without regard to creed, and affected by no considerations save those grow­ ing out of domiciliary return to the land of their original allegiance or of unfulfilled personal obli­ gations which may survive under municipal laws alter such voluntary return. THE VENEZUELAN AWARDS. The negotiation with Venezuela relative to the rehearing of the awards of the Mixed Com­ mission, constituted under the treaty of 1866, was resumed in view of the recent acquiescence of the Venezuelan Envoy in the principal point advanced by this Government, that the effects of the old treaty could only be set aside bv the operation of a new convention. A result in sub­ stantial accord with the advisory suggestions contained in the joint resolution of March 3, 1883, has been agreed upon, and will shortly be submitted to the Senate for ratification. T UNITED STATES TRUST FUNDS. Under Section 3659 of the Revised Statutes, all funds held in trust by the United States, and the annual 'interest accruing thereon, when not oth­ erwise required by treaty, are to bo invested in stocks of the United States, bearing a rate of interest not less than 5 per centum per annum. There being now no procurable stocks paying so high a rato of interest, the letter of the statute is at present inapplicable, but its spirit is sub­ served by continuing to make investments of this nature in current stocks bearing the highest interest now paid. The statute, however, makes no provision for the disiwsal of such accretions. It being con­ trary to the general rule of this Government to allow interest on claims, I recommend the repeal of the provision in question. CITIZENSHIP AND NATURALIZATION. The inadequacy of existing legislation touch­ ing citizenship and naturalization demands your consideration. While recognizing tho right of expatriation, no statutory provision exists pro­ viding means for renouncing citizenship by an American citizen, native-born or naturalized, nor for terminating and vacating improved ac­ quisition of citizenship. Even a fraudulent de­ cree of naturalization cannot now be canceled. The privilege and franchise of American citi­ zenship should be granted with care and ex­ tended to those only who intend in good faith to assume its duties and responsibilities when at­ taining its privileges. It should be withheld from those who merely go through the forms of naturalization with intent of escaping duties with their original allegiance, without taking upon themselves those of tho new status, ot who may acquire the rights of American citizen­ ship for no other than a hostile purpose toward their original government. These evils have had many flagrant illustrations. I regard with favor the suggestion put forth by One of my predecessors, that provision may be made for a central bureau of record of the decrees of naturalization granted by the various courts throughout the United States, now in­ vested with that power. The rights which spring from domicile in the United States, especially when coupled with a declaration of intention to become a citizen, are worthy of definition by statute. The stranger coming hither with intent to remain, establish­ ing his residence in our midst, contributing to the general welfare^and by his voluntary act declaring his purpoMto assume the responsibil­ ity of citizenship, thereby gains an inchoate status which legislation may properly define. The laws of certain States and Territories ad­ mit a domiciled alien to the local franchise, conferring on him the rights of citizenship to a degree which places him in the anomalous position of being a citizen of a State and yet not of the United States within the purview of Federal and international laws. It is important within the scope of national legislation to de­ fine this right of alien domicile as distinguished from Federal naturalization. OUR IMMEDIATE NEIGHBORS. The commercial relations of the United States with their immediate neighbors and with impor­ tant areas of traffic near our shores, suggest es­ pecially liberal intercourse between them and us. Following the treaty of 1883 with Mexico, which rested on the basis of reciprocal exemp­ tion from custom duties, other similar treaties were initated by my predecessor. Recognizing the need of loss obstructed traffic with Cuba anil Port Rico, and mot by the desire of Spaiu to succor languishing interest in the Antilles, steps were taken to attain those ends by a treaty of commerce. A similar treaty was afterward signed by the Dominican Itejniblic. Subsequently overtures were made by her Britannic Majesty's Govern­ ment for a like mutual extension of commercial intercourse with the British West Indian and South American dependencies, but without re-' suit. SPAIN AND BAN DOMINGO. On taking office I withdrew for re-examina­ tion tho treaties signed with Spain and Santo Domingo, then pending before the Senate. The result has been to satisfy me of the inexped­ iency of ent ring into engagements of this character not covering the entire traffic. These treaties contemplated the surrender by tho United States of large revenues for inade­ quate considerations. Upon sugar alone duties wore surrendered to an amount far exceeding all tho advantages offered in exchange. Even were it intended to relieve our consumers, it was evident that so long as the exemption but partially covered our importation, such relief would be illusory. To relinquish a revenue so essential seemed highly improvident at a time when new and largo drains upen the treasury were contemplated. Moreover, embarrassing questions would have arisen under the favored nation clauses of treaties with other nations. As a further objection, it is evident that tariff regulation by treaty diminishes that independ­ ent control over its own revenues which is essential for the safety and welfare of any Government. An emergency calling for an in­ crease of taxation may at any timo arise, and no engagement with a foreign power should exist to hamper the acting of the Government. TUN NAG K DUES. By the fourteenth section of the shipping act, approved June 26, 1884, certain reductions and contingent exemptions from tunnage dues were made as to vessels entering ports of the United States from any foreign port in North and Central 'America. Tho West India Islands, the Bahamas and Ber­ mudas, Mexico and the Isthmus as far as Aspin- wall and Panama; the Governments of Belgium, Denmark, Germany, Portugal and Sweden and Norway, have asserted under the favored-nation clause in their treaties with the United States, a claim to like treatment in respoct to vessels coming to the United Spates from their home ports. This Government, however, holds that the privilege granted by the act is purely geo­ graphical, inuring to any vessel of any foreign power that may choose to engage in traffic between this country and any port within the defined zone, and no warrant exists under the most-favoreii nation clause for tho extension of the privileges in question to vessels sailing to this country from ports outside tho limitation of the act. Undoubtedly the relations of com­ merce with our near neighbors, whose terri­ tories form so long a frontier line difficult to be guarded, and who find in our country and equally offer to ua natural markets, demand special and considerate treatment. It rests with Congross to consider what legislative action may increase facilities of intercourse which contiguity makes natural and desirable. DIPLOMATIC ANI) CONSULAR SERVICE. I oaruestly urgo that Congress recast the ap­ propriation for tho maintenance of the diplo­ matic and consular service on a footing com­ mensurate with tho importance of our national interests. At every jHmt where a representative is necessary, tho salary should bo so graded as to permit him to live with comfort. With tho assignment of adequate salaries, the so-called notarial extra-official fees, which our officers abroad are now permitted to treat as ijersonal perquisites, should be done away with, fivery act requiring the certification and "seal of tho officer should be taxable at schedule rates, and the fee therefor returned to tho treasury. By restoring theso revenues to tho public uso the Consular service would bo self-supporting, be negotiated with Nicaragua a treaty for the comti uction, by ixv<a' the sole e'ost of the United states, of a canal through Nicsraguan territory, and laid before the Senate. Pending tbe action of that l odv thereon, I withdrew the treaty for re-examinatu n, Attentive considero- tlon of its provisions leads mo to withhold it feom resubmission to the Senate. pointee in one of hi* two capacities, but this doe* not prevent the requirement of a bond and submission to the responsibilities of an office whose duties he cannot discharge. The super­ added title of Consul Genoral should be aban­ doned. EXTRA TERRITORIAL COURTS. I deem it expedient that a well-devised meas­ ure for the reorganisation of the extra territorial courts in Oriental countries should replace the present system, which labors under tae disad­ vantage of combining judicial aiui executive functions in the same office. LEGATION PREMISES. In several Oriental countries generous offers have been made of premises for housing the legations of the United States. A grant of land for that purpose wan made some years since by- Japan, and has been referred to in the annual messages of my predecessor. The Siamese Government has made a gift to the United States of commodious quarters in Bangkok. In Corea tho late Minister was permitted to purchase a building from the Government for legation use. In China the premises rented for the legation are favored as to local charges. At Tangier the house occupied by our repre­ sentative has been for many years the prop­ erty of this Government, having been given for that purpose in 1822 by the Sultan of Morocco. I approve the suggestion heretofore made, that in view of the condition of life and the administration in the Eastern countries, the legation buildings in China, Japan, Corea, Siam, and perhapB Persia, should be owned and furnished by the Government, with a view to permanency and security! To this end I recommend that authority bo given to accept the gifts adverted to in Japan and Siam, and to purchase in the other countries named, with provision for furniture and repairs. A considerable saving in rentals would result. THE NEW ORLEANS EXPOSITION. The World's Industrial Exposition, held at New Orleans last winter with tbe assistance of the Federal Government, attracted a large num­ ber of foreign exports, and proved of great value in spreading among the great concourse of vis­ itors from Mexico and Central and South Amer­ ica a wider knowledge of the vaiious manu­ factures and productions of this Country, and their availability in exchange for the products of those regions. / . TARIFF ON WORKS OF ART. Past Congresses have had under consideration the advisability of abolishing the discrimination made by tho tariff laws in favor of the works of American artists. The odium of the policy which Bubjects to a high rate of duty the paint­ ings of foreign artists, and exempts the produc­ tions of American artists residing abroad, and who receive gratuitously advantages and in­ struction, is visited upon our citizens engaged in art culture in Europe, and has caused them, with practical unanimity, to favor the abolition of such an ungracious distinction, and in their interest and for other obvious reasons, I strongly recommend it. THE GOVERNMENT FINANCES. The report of the Secretary of the Treasury fully exhibits the condition of tho public finan­ ces, and of the several branches of the Govern­ ment connected with his department. The sug­ gestions of the Secretary relating to practical operations of this important department, and his recommendations in direction of simplifica­ tion and economy, particularly in the work of collecting customs duties, are especially urged upon tho attention of Congress. LAST YEAR'S REVENUE. The ordinary receipts from all sources for tho fiscal year ended June ISO, 1885, wore 8322,090 - 700.38. Of this sum $181,47<t,93'J.34 was received from customs and £115,498,725. i4 from internal revenue. The total receipts as given above wero 824,829,103.54 less than those for the year ending June 30, 1884. This dimunition embraces a fall­ ing off of $13,505,550.42 in the receipts from cus­ toms and S9,687,846.97 in the receipts from inter­ nal revenue. EXPENDITURES. The total ordinary expenditures of the Gov­ ernment for the fiscal year were $360,226,935.50, leaving a surplus in the treasury at the close Of the year of $63,463,771.27. This is $40,929,&54.32 less than the surplus reported at the close of the previous year. The expenditures are classi­ fied as follows: For civil expenses, 923.826,942.11; for foreign intercourse, #5,439,909.11; for Indians. 56,552,494.63; for pensions, 856,102,267.49; for the military, in­ cluding river and harbor improvements and arsenals, 842,670,578.47; for the navy, including vessels, machinery, and improvements of navy yards, $16,021,079.69; for interest on the public debt, $51,386,256.47; for the District of Columbia, 83,499,650.95; for miscellaneous expenditures, including public buildings, light-houses, and collecting the revenue, $54,728,054.21. REDUCTION OF DEBT. The amount paid on the public debt during the fiscal year ended June 30, 1885, was $45,993,- 5545.43, and there has been paid since that date and up to Nov. 1, 1885, the sum of $366,828, leav­ ing tho amount of the debt at the last named date $1,514,475,860.47. There was, however, at that time in the Treasury applicable to the gener­ al purposes of the Government the sum of $66,- 818,292.38. THE REVENUE AND EXPENDITURES FOR THE CURRENT 'YEAR. The total receipts for the current fiscal year, ending June 30, 188!), ascertained to October 1, 1885, and estimated for the remainder of the year, are $315,000,000. The expenditures, ascertained and estimated for the same time, are $245,000,000, leaving a sur­ plus at the close of the year estimated at 870,000,000. (% VALUES OF EXPORTS. The value of experts from the United States to foreign countries during tbe last fiscal year was as follows: Domestic merchandise 8726,682,946 Foreign merchandise....... 15,506,809 Gold 8,477,892 Silver 33,753,633 Total 5784,421,280 Some of the principal exports, with their val­ ues and the percentage they respectively bear to the total exportation, are given as follows: • Per Value. centage. Cotton and cotton manu­ factures 8213,799,049 29.42 Manufactures..' 150,370,830 22.07 Breadstuflfs--provisions.... 107,332.456 14.77 Oils--mineral, vegetable. and animal 54,326,202 7.48 Tobacco and its manufact­ ures 24,767,305 . 3.41 Wood and its manufactures 21,464,323 2.95 OUR IMPORTN. Our imports during tho year are as follows : Merchandise 8579.58!),053.97 Gold 26,691,896.00 Silver 16,550,627.00 Total 8622,822,376.80 •The following are given as prominent articles of imports during the year, with their values and with the peroentage they bear to the im­ portations : Per­ centage. 13.29 8.09 7.73 6.99 6.07 5.08 6.69 4.88 3.56 An offieer of the navy, detailed for the purpose, fi,evcn with a liberal increase of tho present low salaries. In further prevention of abuses a system of consular inspection should be in­ stituted. Tho appointment of a limited number of secretaries of legation at large, to be assigned Value. Sugar and molasses /. .$76,738,713 Coffee it.. 46,723,318 Wool and its manufactures. 44,656,482 Silk and its manufactures... 40,393,002 Chemicals, dyeings and med­ icines 35,070,816 Iron and steel, and other manufacturers 34,563,660 Flax, hemp, jute, and their manufacture 32,854,874. Cotton and its manufactures 28,152,001 Hides and skins other than fur skins 20,686,443 THE REDUCTION OF THE TARIFF. The fact that our revenues are in excess of the actual needs of an economical administra­ tion of the Government justifies a reduction in the amount expected from the people for its sup- l>ort. Our Government is but the means estab­ lished by the will of a free people by which cer­ tain principles aro applied which they have adopted for their benefit and protection. And it is never better administered and its truer spirit is never better observed than when the people's taxation for its support is scrupulously limited to tho actual necessity of expenditures and dis­ tributed according to a just and equitable plan. Tho proposition with which we have to deal is the reduction of the revenue received by the Government and indirectly paid by the people from customs duties. Tho question of free trade is not involved nor is there now any occasion for tho general discus­ sion of the wisdom or expediency of a protec­ tive system. Justice and fairness dictate that in any modification of the present laws relating to revenue, the industries and interest which have been encouraged by such laws, and in which onr citizens have large in vestments, should not be ruthlessly injured or destroyed. We should deal with tho subject in such man­ ner as to protect the interests of American labor, which is tho capital of our workingmen. Its stability tmd proper remuneration furnish tho most justifiable pretext for a protective policy. Within theso limitations a certain reduction should be made iu our customs revenue. The amount of such reduction having been deter­ mined, the inquiry follows • Wliero can it best be remitted, and what articles can best be re­ leased from duty in the interest of our citizens? I think the reduction should be made in the revenue derived from a tax upon the imported necessaries of life. We thus directly lessen the Cost of living in every family of tho land, and release to the publio in every humble homo a larger measure of the rewards of frugal industry. THE NATIONAL BANK CIRCULATION. During the year ended Nov. 1, 1885, 145 nation­ al banks wore organized, with an aggregate cap­ ital of S1C,93H,(KJ0, and circulating notes have been issued to them amounting to $4,274,910. The whole number of these banks in existence on the day above mentioned was 2,727. The very limited amount of circulating notes issued by our national bunks compared with tho amount tho law permits them to issue, upon a deposit of bonds for their redemption, indicates thaBythe volume of our circulating medium may­ be largely increased through this instrumental­ ity. THE SILVER QUESTION. Since February, 1878, the Government has, un­ der the compulsory provisions of law, purchased silver bullion and coined the same at tho rato of more than 2,000,000 of dollars every month. Bv this process up to tho present date.215,759,431 silver dollars have been coined. A reasohable appreciation of a delegation of power to tho General Government would limit its exercise, without express restrictive words, to the people's neids and the requirements of the public welfare. Upon this theory tho authority "to coin money to duty wherever necessary, and in particular ! given Congress by the Constitution, if it permits for temporary service at missions which i the purchase by the Government of bullion for Spanish authorities yzin the Islands, has been adjusted by . and an indemnity awarded. "*•" principle of arbitration in such cases, for many causes may be without ! head, should also be authorized. I PhiI!1pi>ino \ favor also authorization for the detail of offl- arbitriwion : cers of tho regular service, aa military or naval Tho ! attaches at legations. >es, to j: Some foreign Governments do not recognize Maintaining as T .In tbe •«. ™ . i , . " j ~j was principle or arbitration in such cases, to I »omo foreign governments do not recognize Aanta rom Washington's dav i i iWpo* y United States. . which the United States have long and consis- the union of consular with diplomatic functions. ™ wnich proscribe J After an elaborate correspondence, and repeated ! tently adhered, thus receives a fresh •"t'j gruti- | Italy and Venezuela will only receive th» ap- coinago in any event, does not justify such pur­ chase and coinage to an extent beyond tho amount needed for sufficient circulating medium. Tho desire to utilize tho silver pro­ duct of the country should not lead to a misuse or tho perversion of this power. The necessity for such an addition to the sil­ ver currency of the nation ns Jto compelled by the silver coinage aet is negatived by tho faot that up to the present time onlr>< abont fiffr* millions of silver dollars so cotaed hS^e ually found their way Into circulation, leaving nKire than one hundrod and sixty-five milJiAng inpossesiionofthe Government, the oustody of which has entailed a considerable expense tat construction of vaults for Its deposit. Against this latter amount there are outstanding silver certificates amounting to about 83,000,000 of dol­ lars. Every month $2,000,000 of gold in the public Treasury are paid out for $2,000,000 or more of silver dollars, to bo added to the idle mass al­ ready accumulated. If continued long enough this operation will result in the substitution of silver for all the gold tho Government owns ap­ plicable to its general purposes. It will not do to rely upon the receipts of the Government to make good tliiB drain of gold, beca- e the silver thus coined, having been made lc- 1 tender for all debts and dues, publio and private, at times during /tho past si* months fifty per cent, of the receipts for duties have been in silver or silver certificates, while the average within that period has been twenty per cent. The proportion of silver and its certificates received by the Government will probably increase as timo goes on, for the reason that the nearer the period approaches when it will bo obliged to offer silver in payment of its obligations, tho greater inducement there will be to hoard gold against depreciation in the value of silver, or for the purpose of speculation. This hoarding of gold has already begun. When the time comes that gold has been withdrawn from circulation, then will be apparent the difference between the real value of tho silver dollar and a dollar in gold, and tho two coins will part company. Gold, still the standard of value and neces­ sary in our dealings with other countries, will be at a premium over silver. Banks which have substituted gold for the deposits of their cus­ tomers may pay them with silver bought with such gold, thus making a handsome profit. Hich speculators will sell their hoarded gold to their neighbors who need it to liquidate their foreign debts at a ruinous premium over silver, and the laboring men and women of the land, most de­ fenseless of all, will find that the dollar received for the wages of their toil has sadly shrunk in its purchasing power. It may be said that the latter result will be but temporary, and that ultimately the price of la­ bor will bo adjusted to the change, but even if this takes place tho wage-worker cannot posBi- bly gain, but muat inevitably lose, since the price he ia compelled fo pay for his living will not only be measured in coin heavily depreci­ ated, and fluctuatfng, and uncertain in its value, but this uncertainty in the value of the purchasing medium will be made the pretext for an advance in prices beyond that justified by actual depreciation. The words uttered in 1834, by Daniel Webster, in the Senate of the United States, are true to­ day : "The very man of all others who has the deepest interest in a Bound currency, and who suffers most by mischievous legislation in money matters, is the man who earns his daily bread by his daily toil." The most distinguished advocate of bimetalism, dis­ cussing our silver coinage, has lately written: "No American citizen's hand has yet felt the sensation of cheapness, either in re­ ceiving or expending, the silver-act dollars," and those who livo by labor or legitimate trade never will feel that sensation of cheapness. However plenty silver dollars may become, they will not l|e distributed as gifts among the peo­ ple, and if the laboring man should receive four silver dollars whore ho now receives but two, he will pay in the depreciated coin more than double the pricb he now pays for all the necessaries and comforts of life. Those who do not fear any disastrous con­ sequences arising from the continued compul­ sory coinage of silver as now directed by law,* and who suppose that the addition to the cur­ rency of tho country, intended as its result, will be a public benefit, are reminded that history demonstrates that the point is easily reached in the attempt to float at the same time two <sorts of money of different excellence, when the bet­ ter will cease to be in circulation. The hoard­ ing of gold which has already taken place indicates that we shall not escape the usual experience in such cases. So, if this silver coinage be continued, we may reasonably expect that gold and its equivalent will abandon the field of circulation to silver alone. This, of course, must produoe a severe contraction of our circulating medium instead of adding to it. It will not be disputed that any attempt on the part of the Government to cause the, circulation of silver dollars worth 80 cents side by side with gold dollars worth 100 cents, even with the limit that legislation does not run contrary to laws of trade, to be successful'must be seconded by the confidence of the people that both coins will re­ tain tho same purchasing power and be inter­ changeable at will. Special effort has been made by the Secretary of the Treasury to increase the amount ot our silver coin in circulation, but the fact that a large share of tho limited amount thus put out has soon returned to the public treasury in pay­ ment of duties, leads to the belief that the peo­ ple do not now desire to keep it on hand, and this, with the evident disposition to hoard gold, gives rise to the suspicion that there al­ ready exists a lack of confidence among the people touching our financial processes. There is certainly not enough silver now in cir­ culation to cause uneasiness, and tho whole amount coined and now on hand might, after a time, be absorbed by the people without appre-* hension; but it is the ceaseless stream that threatens to overflow the land which causes fear and uncertainty. What has been thus far sub­ mitted upon this subject relates almost entirely to considerations of a homejnature, unconnected with the bearing which the policies of other na­ tions have upon the question, but it is perfectly apparent that a line of action in regard to our currency cannot wisely be settled upon or per­ sisted in without consfdering the atti­ tude on the subject of other coun­ tries with whom we maintain inter­ course through commerce, trade, and travel. An acknowledgment of this is found In the act by virtue of which our silver is compulsorily coined. It provides that: "The President shall invite the Governments of the countries compos­ ing tho Ijatin Union, so called, and of such otlier European nations as he may deem ad­ visable, to join the United States in a conference to adopt a common ratio between gold and sil­ ver for the purpose of establishing internation­ ally the uses of bimetallic money and securing fixety of relative value between these metals. This conference absolutely failed, and a simi­ lar fate lias awaited all subsequent efforts in the same direction, and still we continue our coin­ age of silver at a ratio different from that of any other nation. The most vital part of the Silver Coinage Act remains inoperative and unex­ ecuted, and without an ally or friend wo battle upon tho silver field in an illogical and losing contest. To give full effect to tho design of Congress on this subject, I have made careful and earnest endeavor since the adjournment of the last Congress^ To this end I delegated a gentleman well in­ structed in fiscal science to proceed to the finan­ cial centers of Europe, ana in conjunction with our Ministers to England, France, and Germany, to obtain a full knowledge of the attitude and intent of those governments respecting tho es­ tablishment of such an international ratio as would procure free coinage of both metals at the mints of those countries and our own. By my direction our Consul General at Paris has given close attention to the proceedings of the Con­ gress of the Latin Union in order to indicate our interest in its objects and report its action. It may be said in brief as tho result of these efforts that the attitude of the leading powers remain substantially unchanged since the Mon­ etary Conference of 1881; nor is to be questioned that tho views of these Governments are in each instance supported by the weight of public opin­ ion. Tho steps thus taken have, therefore, only more fully demonstrated the uselessness of fur­ ther attempts at present to arrive at any agree­ ment on the subject with other nations. In the meantime wo aro accumulating silver coin based u)>on our peculiar ratio to such an extent, and assuming so heavy a burden to be provided for in any international negotiations, as will render us an undesirable party to any future monetary conference of nations. It is a significant fact that four of the five countries comprising the Latin Union men­ tioned in our coinage act, embarrassed with their silver currency, have just completed an agreement among themselves that no more silver shall be coined by their respective gov­ ernments, and that such as has been already coined and in circulation shall be redeemed in gold by the country of its coinago. The resort to this expedient by these countries may well arrest the attention of those who sup­ pose that we can succeed without shock or injury in the attempt to circulate, upon its. merits, all the silver we may coin under the provisions of the silver-coinage act. The condition in which otir Treasury may be placed by a persistence in our present course is a matter of concern to every patriotic citizen who does not desire his Government to pay in silver such of its obligations as should be paid in gold. Nor should our condition be such aa to oblige us, in a prudent management of our affairs, to discontinue the calling in and pay­ ment of interest bearing obligations which we have the right now to discharge and thus avoid the payment of further interest thereon. The so-called debtor class, for whose benefit the continued compulsory coinage of silver is in­ sisted uj>on, are not dishonest because they are in debt, and they should not bo suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated dollars; nor should it be forgotten that it is not the rich nor the monev-leucer alone that must submit to such a readjustment, enforced by the' Government and their debtors.. The pittance of the widow and the orphan, and the incomes of helpless beneficiaries of all kinds, would bo disastrously reduced. Tho dejxisitors ill savings banks and in other institutions which hold in trust the savings of the poor, whon their little accumulations are Scaled down to meet the now order of things, would, in their distress, painfully realize the de­ lusion of tho promise made to them that plen­ tiful money would improvo their condition. We have now on han>' all the silver dollars neces­ sary to supply the present needs of tho people, ana to satisfy those who from sentiment wish to see them in circulation, and if their coinage ia suspended they can be readily obtained by all who desiro them. If the need of more it at any time apporont, their coinage may bo re- { nov.-ed. j That disaster has not already overtaken ns I furnishes no proof that i?ringer does not wait J upon a continuation of the presont silver coin- I age. Wo have been saved by tho most careful management, and unusual expedients by a com- | bmution of fortunate conditions, and by aconfi- ' ' lit expectation that the commerce of the Gov- j eminent in regard to silver coinage would be | sin edilv changed by an action of Congress. ; Prosperity hesitates upon our threshold because j of dangers and -uncertainties surrounding this i question. | Capital timidly shrink# txom trade, a&d in vect­ ors are unwilling to take tbe chance of the qtie» thmable shape In which their money will box* turned to them, while enterprise halts at a risk against which care and sagacious managemeirf do not protect. As a neoessary eon sequence, labor lacks employment, and suffering and dia! tress are visited upon a portion of our fellow-eit- isens especially entitled to tbe careful consider ation of those charged with tho duties of legisla­ tion. No Interest appeals to us so strongly far m safe and stable currency as tha vast army of ttw unemployed. I recommend the suspension of comyulsorj coinage of silver dollars directed by the law passed in February, 1878. STEAMBOAT INSPECTION SERVICE. The steamboat inspection service on the 30tb pay of June, 1885, was comqosed of 140 persons, including officers, clerks and messengers. Tha expenses of the service over the receipts wen 8138,822.27 during the fiscal year. The speoial inspection of foreign steam vessels, organised under tho law passed in 1882, was maintained during the year at an expense or $36,641.63. nine© the close of th© ABC&I year reductions liave been made in the forces employed, which will result in a saving during the current yeai of (17,000 without affecting the efficiency of tlM service. ' MARINE HOSPITAM. The supervising Surgeon General reports during the fiscal year 41,714 patients have re­ ceived relief through marine hospital service, o( whom 12,003 were treated in hospitals and 28 W at dispensaries. ' PROTECTION FROM CHOLERA AND 8MAM,-POT. Active and effective efforts have been made | through the medium of this service to protect i the country against an invasion ot cholera, which has prevailed in Bpain and France, and I tho small-pox which recently broke out In Canada. THE LIFE-SAVING SERVICE. The most gratifying results have attended tha I operations of the life-saving service during the | last fiscal year. The observance of the provision of law requiring the appointments of the force employed in the service to be made "solely with reference to their fitness, and without reference 1 to the political or party affiliation," has secured j the result which may confidently be expected in any branch of public employment where such a rule is applied. As a consequence this servioa is composed of men well qualified for the peiw formance of their dangerous and exceptionally • important duties. • The number of stations in commission at the ! clone of the year was 203. The number of disas- i ters to vessels and crafts of all kind within theli field of action was 371. The number of persons endangered in such disasters was 2,439, of whom 2,428 were saved and only 11 lost. Other lives which were imporilod, though not by disasters to shipping, were also rescued," and a Jorge amount of property was saved through the aid of this service. The cost of its maintenance dur>» ing the year was 9828,473.48. . THE COAST SURVEY. , The work of the coast and geodetic survey was, during the last fiscal year, carried on with­ in the boundaries and off the coasts of thirty- two states, two territories, and the District ot Columbia. In July last, certain irregularities were found to exist in the management of this bureau, wlych led to a prompt investigation of its methods. The abuses which were brought to light by this examination and the reckless dis­ regard of duty and the interests of the Govern­ ment developed on the part of some of those connected with the "servioe, made a change of Superintendency and a few of its other officers necessary. Since the bureau has been in new hands, an in­ troduction of economies and ajiplication of busi­ ness methods have produced an important say­ ing to the Government and a promise of more useful results. This service has never been regulated by anything but most indefinite legal enactments and the most unsatisfactory rules. It was many years ago sanctioned, apparently for a purpose regarded as temporary, and relat­ ed to a survey of our coast. Having gained a place in the appropriations made by Congress, it has gradually taken to itself powers and ob­ jects not contemplated in its creation, and ex* tended its operations until it sadly needs legis­ lative attention. DISCONTINUING A BUREAU. So far as a further Burvey of our coast is con­ cerned, there seems to be a propriety in trans­ ferring that work to the Navy Department. Tbe other duties now in charge of this establish­ ment, if they cannot be profitably attached to some existing department or other bureau, should be prosecuted under a law exactly defin­ ing their scope and purpose, and with a careful discrimination between the scientific inquiries which may proporly bo assumed by the Govern­ ment and those which should bo undertaken by State authority, or by individual enterprise. It is hoped that the report of the Congressional Committee heretofore appointed to investigate this and other like matters will aid in the ac­ complishment of proper legislation on this sub­ ject. THE ARMT. The report of the Secretary of War is here­ with submitted. The attention of Congress is invited to tho detailed account which it contains of the administration of his department and his "recommendations and suggestions for the im­ provement of the service.. The army consisted, at the dato of the last consolidated returns, of 2,154 officers, and 24,705 enlisted men. The expenses of the departments for the fiscal year ending June 30, 1885, including 813,164,394.60 for public works and river and har­ bor improvements, were ¥45,850,999 54. Beside the troops whioh were dispatched In pursuit of the small band of Indians who left their reservation in Arizona and committed mur­ ders and outrages, two regiments of cavalry and one of infantry were sent last July to the Indian Territory to prevent an outbreak which seemed imminent. They remained to aid, if necessary, in the expulsion of intruders upon the reserva­ tion wbo seemed to have caused the discontent among the Indians, but the Executive procla­ mation warning tbem to remove was complied with without interference. Troops were also sent to Bock Springs, in Wy­ oming Territory, after the massacre of Chinese there, to prevent further disturbances, and af­ terward to Seattle, In Washington Territory, to avert a threatened attack upon Chinese laborers and domestic violence there. In both cases, the mere presence of the troops had the desired ef­ fect. DESERTIONS. . It appears that the number of desertions has diminished, but that during the last fiscal ye^r they numbered 2,927, and one instance i3 given by the Lieutenant General of six desertions by the same recruit. I am convinced that thisnum- ber of desertions can be much dimin­ ished by better discipline and treat­ ment, but the punishment should be increased for repeated offenses. These desertions might also bo reduced by lessening tho term of first enlistments, thus allowing a discontented recruit to contemplate a nearer discharge, and the army a profitable rid­ dance. After one term of service, a re-enlist­ ment would be quite apt to secure a contented recruit and a good soldier. COURTS MARTIAL. The acting Judge Advocate General reports that the number of trials by general courts- martial during the year was 2,328, and that 1,851 trials took place before garrison und regimental courts-martial. The suggestion that prob­ ably more than half tha army has been tried for offences great and small, in one year, may well arrest attention. Of course, many of these trials before garrison and regimental courts martial were for offensM almost frivolous, and there should, I think, be a way devised to dispose of theso in a more sum­ mary and less inconvenint manner than by court martial. If some of the proceedings of courts martial which I have had occasion to ex­ amine present the ideas of justice which gen­ erally prevail in these tribunals, I am satisfied that thev should be much reformed, if the honor and the honesty of the army and navy aro by their instrumentality to be vindicated and pro­ tected. SEA-COAST DEFENSES.' The Board on Fortifications or Other Defenses, api>ointed in pursuance of the act of Congroas approved March 3, 1885, will in a short timo pre­ sent their report, and it is hoped that this may greatly aid the legislation so necessary to reme­ dy the present defenseless condition of our sea- coasts. SIGNAL SERVICE. The work of the Signal Servioe has been pros­ ecuted during the last year with result of in­ creasing benefits to the" country. The field of instruction haB been enlarged, with a view of adding to its usefulness. The number of sta­ tions in operation June 30, 1885, was 48&» Telegraphic reports are roeeived daily from 460 stations. Reports aro also received from 75 Ca­ nadian stations, 375 volunteer observers, 52 army surgeons at military posts, and 333 foreign sta­ tions. The expense of service during the fiscal year, after deducting receipts from military tel­ egraph lines, was £797,592.97. In view of the fact referred to by the Secretary of War, that tho work of this service ordinarily is of a scientific nature, and the further fact that it ia assuming larger proportions constantly, and becoming more and more unsuited to the fixed rulea, which must, govern the army, I am inclined to agree with him in the opinion that it should be separately, established. If this is done tho scop*? and extent of its opera­ tions should, as nearly as possible, be definitely prescribed by law, and'always capable of exam ascertainment. WEST POTNT ACADEMY. The military academy of West Point is re­ ported as being iu a high state of efficiency and well equipped for the satisfactory accomplish-" ment of the purposes of Its maintenance. The fact that the class which graduates noxt year is an unusually large one, has constrained me to, decline to make appointments to second lien-' tenancies in the army from civil life, so that such vacancies as exist in these places may be reserved for such graduates, and yet it is • not probable that there will be enough vacancies to provide positions for them all when they leave the military school. Under the prevailing law and usago, those not thus assigned to duty never e-ctively enter the military service. It is suggested that the law on this subject be changed so that such of those young men as aro not at once assigned to duty after graduation may be retained as Second Lieutenants in the army,"if they desire it, sub­ ject to assignment, when opportunity occurs, under proper rules as to priority of selection. The expenditures oji account of the Military Academy tor tlie last fiscal year wero t29D,712.07. F L.IVATK- RNORE11TY CLAIMS. Th" act approved March 3, 1876, designed to compensate o'fteers und enlisted men for loss at private pro; cvtv while in the service of tho United frt;.tes, is SQ indefinite in its terms, and apparently admits BO many claims, tho adjust- mentof which could not have been contemplated, that if it < is to remain on the statute book it needs amendment. BRIDGES OVER NAVIGABLE WATERS. There should be a general law of Congreak prohibiting the construction of bridges o\MR th' „ .*. f ,a»v? .