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Jjunal Communication Of * President J» .Congress. w w fkratbem, Oivil-Sorlte«f Fi­ nancial and Other Qttes- ^ L ' tion8 Disoussed. >, Had! T«K|J v f*,t¥ • - Cliff* iHi'j • fwiew-OltlsenB e< <he8enateand BOOM«i Bepre- Witt grm% gratitude to the Bountiful direr of All I congratulate you that, at the beginning of ••yrfonr first regulur session, you find our country •II* iwassd W i.tn hea££a sixd IKMD, and ibllildMit har- ttiwto, and with encouraging prospects of aa early tetaia of general prosperity, j The Southern IVillcy. Ve oesnplete and make permanent the paoifioe- sf the country continues t,.- be, aid, natB 11 la eeeeetplished, must remain the most Important of national interests. The ewrneet purpoee of ^ • dSseu generally to unit© their efforts in those MOTS ie evident. St found decided expression resolutions announced In 1876, by the na- <.:>«kmal conventions of the leading political par­ ol the country. There was a widespread that the momentous results In progress aa a nation, marked by the it amendments to the constitution, were In im- r, that the good understanding which their adoption in the interest of a loyal _ jt^rottoa to the general welfare might prove a bar- trace, and that the sections of tint country, once **fHMd in civil strife, xninht be again almost as (|<gfllh)rwwn4 and disunited as they"were when »r- Kayed to arms against rach other. The course to : .%s pursued which, in my judgment, seemed the flMasst, to the presence of this emergency, was «'IjaMlely indicated to the Inaugural address. It -i desire to and _ _ supplant i destructive forces of mutual animosity of the fimoes of sectional hostility. Opinions have ajdlffered widely as to the measures best caleu- jaM to secure this great, end. "fhls was to ^et|>ectM. The measures adopted by the admin- >A«rtticteaa8, i'3been ente have bqgp subjected to severe and varied AnjFwirse whatever which might have entered upon would certainly have enconn Jtered distrust ant! opposition. These measures fwere, in my judgment, such as were most in har- - ^.Sfinony with the constitution, and with the genius of • ff a. war people, n«d beet adapted, under all drcum- stances, It) attain the end in view. Beneficent re- _ V . -ismta already apparent prove that these endeavors -*Wsr» not to be regarded as a mew experiment, and t . ahould sustain and enooursgu us in our efforts al- I ! -frinady in the brief period which has elapsed. The j la jtaiiiiir ilisln effectiveness. no lees than the justice, of course pursued, is demonstrated, and ( have an •^'• (sWding faitH that time will furnish ample vindica- tton to the mmds of the great majority of myfel- • Jfew-citizens. e The discontinuance of the use of the army for the Ifjsf fjpucpooeof upholding the local Governments in two < ' jot the Skates of tike union was no less % constitution- * uyjai duly and requirement, under the circumstances ^existing at the time, than it was a much-needed ifneasore for the restoration of local self-gov- ^..^aesnment and the promotion of national harmony. » ;*The withdrawal of the troops from such employ- J® %Mot was effected deliberately, and with solicitous si '#eare for the peace and good order of society and ' 3; = | jthe'protection of property and persons and every • Ijrfght of all classes of citizens. The results that * * "ihave followed are indeed significant and encourag- ^top. All apprehension of danger from remitting fefjl <ftfaese States to local aelf-government Is dispelled, v. , , ^jand a most salutary change to the minds ' gaU the oeople has begun, and is in prog. ®lwr' ' *" " *.» i to every part of that section of country, once theater of Unhappy civil strife, substi- tating for suspicion, distrust ana aversion, oon- «»rd. friendship and patriotic attachment to , "the Union. No unprejudiced mind will deny that !,.the often-fatal collisions, which for several yean *p»va been of frequentoccurrence, and have alarmed „ , ̂ 4<he public mind, nave almost entirely erased, and * ' " that a spirit of mutual forbearance and hearty na- s i .;ttooal interest has succeeded. There has been a # f ig general re-establishment of order, and of the or- _ . ̂ ierly administration of Justice. Instances of re- ning lawlessness have become of rareooenzw tl < 4. • wlifcical turm<ril and turbulenoe have dlsap- peartu > «eful industries have been resumed; pub- /./BcoretUt • he Southern States haa been greatly J-'"^i'̂ rengtheii».-,;, nd the encouraging benefits of a n- "W -^»ivalof ootnmcr.« between the sections of thecoun- lately lmbroiled to civil war are fully enjoyed. Snob are some of the results already attained upon |j a v wluch the country is to be congratulated. They are ***?. *;of such importanee that we may with ooafidence p&» " "••tontly await tte dealred consummation thai will .srjvlj- come with the natural progress of evente. 9 Th« Bnasa«ip»tcd Bac®. • It may not be Improper here to say that it should .ajs * I T>e our fixed and unalterable determination to pro- Jy» " Jtect, by ull available and proper means, under the • ' 'constitution and the laws, the lately-et&ancipated • 'jiraoe to the whole of their rights and privi- «S: ; and I urge upon those to whom heretofore 'the colored people have sustained the relation of bondsmen toe wisdom mud justice of humane and liberal local legislation, with respect to their «w»nw. ~ttou and general welfare; a, firm adherence to the laws, both national and State, as to the civil sad po> 'tttical rights of the colored people, now advanced to " full and equal citizenship; the reprea- i aion and sore punishment, by the national and V authorities wlttiin their respective juriadictions, of •-wy instance of lawlessness and violence towards 1 ̂ tKscn.ss required for the security alike of both races, , i and Justly demanded by the public opinion of *•«« ®ge„ In ^his way the rwitoration of hancaay an a good will, and the ootnplete pratoctkHi. of every citizen in the fail •ail w •0t. • ^r«n|o7ment of every oomsttadional right, will sure- „ % 6e attained, whatever authority rests vrtth me t£< tiua end I shall not hesitate to put forth. Wbat- ges^^ver bdonfl^i to the power of Congress Mtdiha Jnris- ' dictiua at the courts of the Union, they may oonft- •frDUy be relied upon to provide and perform, and r &£• tfe<« liegialatures, the courts, and the executive .-suttontiesof the sevml States I earnestly appeal Jtosecare by adequate, appropriate, and seaaonaUe > janeans within their borders these oommon and nai- |form rights of a united people which loves liberty, 4 sfchors oppression, and reveres justioe. These ob­ jects are very dear to my heart. I oonttone - most earnestly to strive for their -"nlnmrwt The •cordial co-operatton of all classes of an sections of the country, and of both races, is required for this purpose, and with these blessings assured, and not athesprtae, we may safely hope to hand down onr £ree institutions of government unimpaired to the Ceoeratio&a that will suooeed us. •tflr" t&n. • of our coinage system by the renewal of the silver dollar as an element to our specie cur­ rency, endowed by legislation with the quality of le- pal tender, to a greater or less extent. As there is no i^nnbt of the power of Ooagrees, under the oonsti- t«: ton, to coin money and regulate the value thereof, and aa this powrr covers the whole range of author­ ity applicable to lUe metal, the rated value, and the IsgaVtender quality which shall be adopted for the coinages the consMerktton wbioh should Induce or disoouraftc a particular measure oonneoted with the coinage belongs olearly to the rvince of legislative discretion, and of pub-eatpe^->ncy. Without intruding upon this provide .->f Legislation in the least, I have yet thought tlic- of suoh critical importance, in the actual condition of our affairs, as to present an occasion for the e*rrci»« of the duty imposed by jlthe constitution on the Fresideut of recomuffending to the consideration of Congress such nioa«'.irc8 as he shall judge necexsury and expedient. Holding the opinion, m I do, that neither the interest of the Oovcrnment, nor of the people of the United States, would be promoted by disparaging silver as one of the two precious metals which furntnh the coinage of the world, and that legislation which looks to maintaining the volume of intrinsic money to as lull a measure of tooth metals as their relative com­ mercial values will, permit would be neither unjust, nor inexpedient, i must ask your indulgence to a brief and definite statement of certain essentia] features in any such legislative measure which I feel it my duty to re- oomnK Ud. 1 do not propose to enter the debate represented on both sidea by such able disputants in Congress, and before the people, and in the press, as to the extent t© which the legislation ot any one nation can control this question, even with­ in its own borders, against the laws of trade, or the positive laws of other Governments, The wisdom of Congress to shaping any particular law that wtay he presented for my approval may wholly supersede the necessity of my entering Into these considera­ tions, and I willingly avoid either vague or intricate inquiries. It is only the certain, plain and practical traits of such legislation that I desire to recommend to your attention. Q In any legislation providing for a silver coinage, regulating its value, and iuipartii\g to it the quality, of leeal tender, it se^ms to me of great importance that Congress should not lose sight of its action as operating in a two-fold capacity and two diwtinct directions. If the United States Government were free from a public debt, its legislative deaLing with the question of silver oolnage would be purely sov­ ereign. and governmental, under no restraints but those of constitutional power and the public good as affected by the proposed legislation; bat in the actual circumstances of the nation, with a vast pub­ lic debt distributed very widely among our own cit­ izens, and beld to great amounts also abroad, the nature of the (ilver-ooinage measnrr as affecting the relation of the Government to the holders of the public debt becomes in any proposed legislation of the highest concern. The obligation of the pub­ lic faith transcends all questions of profit or publio advantage; otherwise, its unquestionable mainte­ nance fa the dictate as well as the highest expediency of the moat necessary duty, and will be carefully guarded by Congress and the people alike. iptlon Of Bpeoie Payments. , haaeng the other subjects of great and geasnl toaporUnce to the people of this oountry, l canaal fcs mistaken, I think/to regarding ss pre-eminent tfce policy and measures which am designed to se- «ure the restoration of the currency to that normal healthful condition in which, by the resump- •Mouof specie payments, our internal trade and foiw j"?!""?"y brought into harmony with mW&m ̂ ***7*}** ̂,?*.w<**ag*>* *hlch to based upon tba Government can aocompllsh, there Is a much «rea4e*detrse cj unanimity tha* is found to con- --gill the ysctflc sasssuwis whiah wiU bring the (hmhiI i j to this desired end, or the rasiditv of iii« ' atepsbfWhichttcanbessfalyreaehed^upSsmcet anSoai aad dehberate e«intoSon wtoCh I W. *" « ""y.duty.to give to .ST^rt.T^^tS fifttM lb HM opinion whidi 1 4M J tfce aoninattou for the Prertdency, and iuponj ̂inaa^T^tlon,UiUthepoUqnf re- pursued by every suitable BO lsgislMon would be wise that the importance or retard the at- i result. I have no disposition, and question the sincerity or the minions, and would neither B the considerable difllculUcs, I distress, which may attend the i of tte nation toward this primary coadi. tion of its general and permanent prosperity, i mm% iiowever, adhere to my most earnest convio- t&w, ttel «sy wavering in purpose, or migteadi- - mmt Is methods, so far from avoid- MMM . or fsduoing A the Inconvenient* innea- " laraWn from the trf<is»ition from an irre- #^-deemab1e to a redei uable paper currcnev, " ̂ wv>uld only tend to an in<-rea«d and prolonged din- * 2 . ' 'tnrbance in vatoeo, which, unlei-s wtipvn!. '• '-cad in serious <)i«urder, dishonor Mid di-artcr in » t,> '4s ufa fijayacial affairs of the Government and of the ' people. The mischiefe which I apprehend utd * ir/f ninill; deprecate, are confined to no class of tlu; -. -fyt MODIS; indeed, they bnt seem to me most <-<;r- f : csfnly to threaten the industrious masses, whether * •'4 r C-J their occupations are of skilled or common labor. ; "• •«m To them, ft seems to me. It is of prime Importance ' - that their labor ahould be compensated in money •' ® which la, to itself fixed in eschangabie wlue. by be- - '•&' lag irrevooably measured by the labor necessary to *>•****.'•* "• production. This permanent quality of all the money of the people is sought for and can only be sr. naiued by the redumption of specie payment. The • ri'h. the speculative, the operating, the tunnry- -desliug classes, may not always fe«l the mi*chie.'» •wt. or may ilndc<i<ual profit i in, I i-iriiltciiirrfucy, Vrnt the misfortunes ot such a cirr uc/ to The puitlic debt of the United States^to the amount of $729,000.000,' bears interest at thXate of 6 per cent., and $708 000.000 at the i»t,e of 5 per cent., and the only way In which the oorsmtiy ©an be relieved from the payment of the high rates of Interest is by advantageously refunding the indebtedness. Wheth­ er the debt is ultimately paid in gold or silver coin is of but little moment oomparea with the possible reduction of Interest one-third by refunding it at suoh reduoed rate. If the United States had the unquestionable right to pay its bonds in silver coin, the little benefit from the process would be greatly overbalanced by the injurious effect of such payment. If made as proposed, against the honest oonvictions of the public cred­ itors, all the bonds that have bee® issued since Feb. 12,1873, when gold became the only unlimited legal- tender metallic currency of the country, are justly payable in gold coin, or to eoin of equal value. During the time of these issues, the only dollar that could be or was received by the Government in ex­ change for bonds was the gold dollar. To require the public creditors to take In repayment any dollar of less commercial value would be regarded by them as a repudiation of the full obligation assumed. The bonds issued prior to 187\ were issued at a time when the gold dollar was the only coin to cir­ culation or contemplated by either the Government or the holder* of the bonds as the coin to which they were to be paid. It is far better to pay these bonds In that coin than to seem to take advantage of the unfor«- seen Ml of silver bullion to pay to a new issue of silver ooto made so much leas valuable Tne power of the United States to ooto money and to regulate the value thereof ought never to be exercised for the purpose of enabling the Government to pay its obligations in a coin of leas value <*"» that oon- templated by the parties when the bonds were to- sued. Any attempt to pay the national indebted­ ness to a coinage of lesa commercial value than the money of the world would involve a violation of the publio faith and work Irreparable injury to the public credit. It WM the gnat merit of the act of March, 1869, that, in strengthening the publio oredlt, it removed all doubt aa to the purpose of the United States to pay their bonded debt to ooto. That set WM accepted aa a pledge of publio faith. The Government haa derived great benefit from it Zb the progreaa thw far in refunding the publio debt at low rates of interest, an adherenoe to the wise and just pallor of an exact observance of the publio faith will bie the Government rapidly to reduce the burden of interest on the national debt by an amount ex­ ceeding $20,000,000 per annum, and effect an aggre­ gate saving to the united 8tatee qf more than $300,- 000^000 before the bonds can be fully p»M in adapting the new sliver oolnage to the ordinary uses of currency in the every-day transactions «f life, and preserving the quality ot legal tender to be assigned to it, a consideration of Ihe first im­ portance ahould be so to adjust the ratio between the sliver and the gold oolnage, which now oonstt- tutea our specie currency, as to acocnxpliah ths de­ sired end of maintaining the circulation of the two metallic currencies, and keeping up the volume of the two precious metals aa our intrinsic money. It la a mixed question for scien­ tific reasoning sad historical experience to determine how far, and oy what methods, a practicable equi­ librium csc bs maintained which will keep both metals in circulation in their appropriate spheres of common use. An absolute equality of commer­ cial value, free from disturbing fluctuations, is hardly attainable, and without it an untried legal tender for private transactions, assigned to both metala. would ten^to drive out of circulation the dearest oolnage, and disappoint the prlnolpal ob> ropoeed by the legislation to view. I appre- . therefore, that the two conditions of a ne» approach to equality of commercial value between the gold and silver coinage of the same tkm, and of * ntntteHm «rf ti« «wift^nts for which the silver oolnage la to be a legal tender, an essen­ tial to maintaining both In circulation. If these oonditiona can be raooeesfully observed, the issue from the mint of silver dollars would afford ma­ terial assistance to the community in ths transition to redeemable paper money, and would facilitate the resumption of sped* payment and Its permanent establishment. Without these conditions I fear only mischief and misfortune would flow from a coinage of *lvsr dollars, with the quality of m.n«- ited legal tender, even in private transactions; any expectation of temporary ease from an issue of sil­ ver coinage, to pass aa a legal-tender at a rate ma­ terially above its commercial value, la, I am per­ suaded, a delusion; nor can I think that then la any substantial distinction between an original £ sne of silver dollars at a nominal value above their commercial value and the restoration of the silver dollar at a rate which once was but haa oeats fl to be its commercial value. Certainly the Isaue of our gold coinage reduoed In weight materially below Its legal-tender value would not be any the less a preaent'debasement of the coinage by reason of its equaling or even exceeding to weight a good coinage, which at some past timehad been commercially equal to the legal-tender value assigned to thenew issue. In recommending that »aw ar - appointed, not -nHt. i,. manner H.-Kigns to tbi rtcnat- the eoUiP"'^ right to advise, and consent to or reject, tfco nomin­ ations so made, while the House of lteprcs< n lat iV'-s siauds as tlie prtblio oensor of the performance of official duties, with the prerogative of investigation to all cases of dereliction. The blemishes «n<! imperfections in the civil service may, »« I think, be traced to moat cases to a partial confusion of the duties assigned to the several departments of the Government. Mr purpose in thisjMsncct bas been to return to the aystem established by the fundamental law, and to do this with the heartiest cooperation and a meat cordial understanding with* the HeaatMnd House of Representatives, the po­ litical difficulties in the selection of numerous of­ ficers for posts of widely-varying responsibilities and duties are acknowledged to be very great. No system oan be expected to secure abeolute freedom from mistakes, and the beginning of any attempted change of custom is quite likely to be more em- in this c&spect !*itm any &ub- soquent period. It is here that the con­ stitution seems to most prove its claim to the great wisdom accorded to it It gives to the Executive the asalstanoe of th knowl­ edge and experience of the Senate, which, when acting upon nominations as to which thay may be disinterested antci impartial judges, secures as strong a guaranty of freedom from errors of toiporteTice as is perhaps possible in human affairs. Iu addi­ tion to this I recognize the publio- advantage of making aU nominations as nearly as possible im­ personal, in the sense of being free from mere caprice or favor in these directions, and iu those oftiess ".'here s-seia! training is of greatly lacrcsscd value, I believe such a rule an to the tenure of office shouid obtain as may induce men of proper qualifica­ tions to apply themselves industriously to the task of beoouant; proficient. Bearing these things m mind, I have endeavorciito reduce-Che number ;>f change# to subordinate places usiiitily made upon the change of the general administration, and shall most heartily co-operate with Congress »n the better systematizing of such methods and rules* of admis­ sion to thefpublic service and of promotion within It as may promise to be most successful in making fhorough competency, efficiency and character the decisive tests in these matters. I ask the renewed attention of Congress to what has already been done by the Civil Service Com­ mission, appointed in pursuance of th© act of Con- gress by my predecessor, to prepare and revises the civil-service rules. In regard to much of the de­ partment service, especially at Washington, it may be difficult to organize a better system than that which has thus been provided, and it is n<yv being used to a considerable extent, under aiy direo- tion. * The commission has still a legal existence, although for several years no appropriation has been made for defraying its expenses. Believing that this commission has rendered valuable service, and will be a most unusual agency in improving the ad­ ministration of the civil Horvice, I respectfully rec­ ommend that a suitable appropriation be immedi­ ately made to enable ft to continue its service. It la my purpose to transmit to Congress, as early aa practicable, the report by the Chairman of the com­ mission, and to ask your attention to such measures upon this subject as, in my opinion, will further promote the Improvement of the civil service. Foreign Belatloni, During the past year the United States has con­ tinued to maintain peaceful relation with the for­ eign powers. The outbreak of war between Russia Turkey, though1 at one time attended by grave ap- preliension as to its effect upon other European na­ tions. has had no tendency to disturb the amicable relatione existing between the United States and each of the two contending powers. An attitude of just and Impartial neutrality has been preserved, and I am gratified to fstot© that, to the midst of their hostilities, both the Russian and the Turkish Gov­ ernments irnve shown au earnest 4esire to adhere to the obligations of all treatiea with the United States, and give due regard to the tights of Ameri­ can citizens. Italy. By the terms of the treaty defining the righto, Immunities and privileges of Consuls between Italy and the United States, ratified to 1868, either Gov­ ernment may, after the lapse of ten years, termin­ ate the existence of the treaty, by giving twelve months' notice of its intention. The Government of Italy, availing itself of this facility, has now given the required notice, and the treaty will accordingly end on the 15th of September, 1878. It la under- fltoodj however, that the Italian Government wishes to renew it to its general scope, describing only cer­ tain modifications in some of its articles. In this disposition I concur, and f hall hope that no serious obstacles may intervene to prevent or delay the ne­ gotiation of a satisfactory treaty. Passports, Naturalization, Xto. Numerous questions in regard to passports, nat­ uralization, and exemption from military service have continued to arise to the cases of emigrants from Germany, who have returned to their nativ* country. "The provisions of the treaty of Feb. 92. 1868, however, have proved to be so ample and so Judicious that the Legation of the United States at Berlin haa been able to adjust all arising under it, not only without detriment to tbeinica- ble relations existing between the two Govern­ ments, but, it is believed, without injury or injus­ tice to duly naturalized American citizens. It is de­ sirable that the treaty originally made with the North German Union, to 1867, should now be ex­ tended so aa to apply equally to all the states of th© empire of Germany. OT*® Paris XSxpogltlon The Invitation of the Government of Transe to participate in the Exposition of ihe fmduota. agrl culture, Industry and fine arts, to be held at Paris during Ifce coming year, was submitted to your con sideratMl at the extra session it is not doubted that its acceptance by the United SiatoaLand a weS- aelected exhibition of the products of m_ dustry on that oocaaion, w&l tend to stimulate in- ternationel commerce and emigration, as wall aa to promote the traditional friendship bctwsiw the two countries. Kxtradltion. A question arose some time since as to the proper meaning of the extradition articles of the treaty of 1813 between the United States and Great Britain Both Governments, however, are now to accord to the belief that the question la not one that ahould be allowed to frustrate tbe ends of Justioe or to disturb the friendship between the two nations, and no ae- rioua difficulty has arisen in accomplishing the ex­ tradition of criminals when necessary. It is probable that the points of disagreement, will to due time be settled, and, it need be, more explicit be made to a new treaty. The Fishery Question* The Fishery Commission under articles Hani M, treaty of Washington, haa concluded its session. Ths result of the deliberations of the commission, es mede ptiUlo by the OosasiiiBBionera, nflt be oom- EEielcatca to Coingitasa, BSElte,, Ainaa&y Sot the protection ot &ttd«aaaate halt bees Eegottat«d with OraatBrilala, v.-Mejii has bees submitted to the Senate for its eo&eiteatfcHi. Maadeo. Thp revolution which recently occurred to Hexico was followed by the accession of ths suooeasful party to power and the installation of its Gen­ eral, Forfirio Dias in the Presidential office. It has been the custom of the United States, when such changes of government have heretofore occurred in Hexloo, to recognize and enter into official relations with the de facto Government as soon as it should appear to have the approval of the Msxioan people, ana should manifest a disposition to adhere to the tr>iu Venezuela. uu.|»r the treaty of April 2$, 166ft. applicable to the awards of the Joint oommlsaicu created by that treaty. So long as these matters are pending in Congress the Executive cannot assume either to pass upou the questions presented, or to distribute the fund received. It is etotoently desirable that definite legislative action should be taken, either deciding the awarda to be final, or providing some method teams amlnation of the claims. f Southern American Natloas* *' ' Our relations with the republics of Central and South America and with the'empire of Brtudl hope continued without serious change, further «•«" flw temporary Interruption of diplomatic intercourse with Venezuela ana with Guatemala, AmfwKi* ̂ latlons have already been fully restored with Veiw ezuela, and it la not doubted that all grounda <M misunderstanding with Guatemala will speedily be removed. From all these countries there are livoioule Indications of a disposition on the part ot their Governments and people to reciprocate our efforts in ths direotion of increased eommerdal in­ tercourse. tbe regulation of any silver coinage which maybe authorised by Congress should observe ths bests of value and limited legal tender _ governed by the feeling that every possible tooreaae ahould be given to the volume of metallic money which can be kept in circulation, aad thereby every possible aid Afforded to the people In the prooesa of resuming specie payments. It Is because of my conviction that a disregard of these conditions would frustrate the good reeulte which are desired from the proposed oolnage, and embarrass with new elements of con­ fusion and uncertainty tbe business of the country, that I urge upon your attention them couidem- I respect fully Rocmmend to Congress that in any legislation providing for a silver coinage, and imparting to it the quality of legal tad^, there be Impressed to the measure a firm provision exempt- tog the public debt heretofore Issued and now out­ standing from tbe payment, either of principal or interest, to any coinage of less value than the pres­ ent gold coinage of the country. ̂ The Civil Service. The organization of the civil service of the coun­ try haa f Or a number of years attracted more and more of public attention. So general han become the opinion that the methods of admission M it, and the conditions of remaining tn it, are uusound. that both the great political parties have agreed, in the most eipiic.it ration?, on the neceHi-i'y of re­ form. and iu the itK'Kt emphatic demands tor it. I have fully considered the declarations and demands to be the expressions of the sincere .convictions of the intelligent matses of the people* upon the sub­ ject, and that they should be recognized and fol­ lowed by earnest ana prompt action on the part of the legislative and executive departments of the Gov­ ernment. In pursuance of the purpose indicated before my accession to office, I endeavored to have my own views distinctly understood, and upon my inauguration uiy accord with the public opinion was stated in terms believed to be plain and unam­ biguous. My experience in the Executive duties ban strongly confirmed the bell, fin the trreat ad­ vantage that the country wcnld find in observing •trlctl* tbe plan of the constitution, which imposes np»n the Kx*co!ivo tbe sole duty and responsibility ol the selection of those Federal officers who by border, the records of which have already been com­ municated to each house of Congreee, to answer to their respective resolutions of inquiry. Assurances have been received that the authori­ ties at the seat of the Hexlean Government have both the disposition and the power to prevent and punlah such unlawful invasions and depredations. It is earnestly to be hoped that events may prove these asauranoea to be well founded. The best In* texestsof both countries require the maintenance of peace upon the border and tne development of com­ merce between the two republlea. It la gratifvtoar to add that this temporary Interruption of official relatiocs^hss not prevented due attention by the representatives of the United States in Mexico to the protection of American dtUans aa far as practicable, nor has it interfered with the prompt payment of the amounts due from Mex­ ico to the United Statea, under the treaty of July 4, 1868, and the awards of the joint commission. While I do not expect an interruption of the friend- h i i liationa with Mexico, yet 1 cannot but look with mme solicitude upon a oonttoqanoe of the border disoedera, as exposing the two countries to initia­ tions of popular feeling and mischances di action *bich are naturally unfavorable to complete amity. Firmly determined that nothing shall be wanting on my part to promote a good understanding be­ tween the two nations, I yet must sak the attention of Congress to the actual occurrences on the bor­ der, that the lives an (/property of our eitUens may be adequately protected and peace preserved. The OnlMan War. Another year has paaaed without bringing to* close the protracted contest between the SpanUh Government sad the insurrection in tbe island of Cuba. While the United States has sedulously ab­ stained from any intervention to thla controversy, it ia impossible not to feel that It la attended brtod- dents affecting the rlghta of American dtisens, apart from the effect of the hostilities upon trade between the Unit«i states and Cuba. Their pro- gro<« is inevitably accompanied by complaints, having more or less foundation, of searches, arrests, embargoes and oppressive tuxes upon the property of American residents, and of unprovoked interfer­ ence witb American vessels and commerce. It is due to the Government of Spain to aay that during the paat year it has promptly disavowed and offered reparation for any unauthorised aots of unduly jealous subordinates whenever such acta hate been brought to lie attention. Nevertheless such occur- rences can not but tend to excite feelings of annoy­ ance, suspicion and resentment, whioh are greatly to be deprecated between the fuapsottve gShJecti aad oltisena of two friendly powere, Vaaesaela. Much delay, consequent upou accosatloas of fraud to some of the awards, has occurred to respect to the distribution of tbe limited "mtmnta received The Government of the Samoan Islands haa sent an envoy, la the person of its Secretary of State, to invite the Government of the United Statea to ad­ vise and protect their Independently to establish commercial relatione with their people, and to as- eistthem in their steps towards responsible and regular government. The inhabitants of these islands, having made considerable progreaa to Christian civilisation and the development of trade, are douhttm of their ability to nafriUtii peace and independence without th© aid of some stronger power. The subject is deemed worthy of respectful attention, and the upon our as­ sistance by this distant community will be oarefuD j Foreign Commerce. The long commercial depression in the United States has directed attention to the subject of the possible increase of our foreign trade and the method for its development, not only with Europe, but with other countries, and especially with the states and sovereignties of the Western hemisphere.*' Instructions from the Department of State were issued to the various diplomatic and Consular offi­ cers, of tlie Government, asking them to devote at­ tention to the question of methods by which trade between the respective countries of their official residences and the United Statea could he most Ju­ diciously forwarded. In obedience tothe instruc­ tions, examinations and reports upon thla subject have been made by many of these officers and trans­ mitted to the department, and the same ace submit­ ted to the consideration of Congrees. National Flnaneea. JThe annual report of the Secretary of the Treas­ ury on the'state of the finances presents important questions for the action of Congress, upon some of whioh I have already remarked. The revenues of the Government during the fiscal year ending June 8Q, 1S77, were $269,000,586.62. The total expendi­ tures for the same period were $338,660,208.08, leav­ ing a surplus revenue of ^30,840,577.69. Thla hats substantially aupplied the requirements of the sink­ ing fund for that year. The estimated revenues of the current fiscal year are (265,600,000, aad the esti­ mated expenditures for the same period are $233,- 430,613.73. If these estimates prove to be correct, there will be a surplus revenue of $33,089,866.33, an amount nearly sufficient for the «ritiMng fund for this year. * The estimated revenues for the next fiscal ymr are $360,260,000. It appears from the report that during the last fiscal year the revenues of the Gov­ ernment, compared with the previous year, have largely decreased. This deoreaae, amounting to the sum of $18,481,452.54, was mainly to customs duties, caused partly by a large falling off of the amount of Imported dutiable goods, and partly by the general fall of prices in the markets of produc­ tion of such articles as pay ad valorem taxes. While thla is felt injurious in the diminution of the revenue, it has been accompanied with a very large lncreaae of exportations. The total exports during tbe last fiscal year, including coin, have been $658,637,457, and the Imports have been $492,097,540, leaving a balance of trade in favdr of the United States amounting to the sum of $166,- Ki9,917| the beneficial effects of whhuh exiendpo all branches of business. w~ Revenna. The estimated revenue forth* next fiscal year will impose upon Congress the duty of strictly lim­ iting appropriations, including the requisite sum for the maintenance of the linking fund within the aggregate estimate of the receipts, while the aggre­ gate of taxes should not be increased^ Amend­ ments might be made to the Bevenufrtws that would, without diminishing th® revenue, relieve the people from unneceseary burdens. A tax on tea and coffee la shown by the experience, not only of our own country, but of other countries, te be easily collected without loss by undervaluation or f^aud. and largely borne to the country of preduction. A tax of 10 cents a pound on tea and 3 cents per pound on coffee would produce a revenue exceeding $12,- OOQ..OOO. and thus enable Congress to repeal a multi­ tude of annoying taxes yielding a revenue not ex­ ceeding that sum. The infernal-revenue system grew out of the necessities of the war, and most of the legislation imposing taxes upon domestic pro­ ducts under this system has been repealed. By the substitution of a tax on tea and coffee, all forme of internal taxation may b® repealed, except that on whisky, spirits, tobacco and beer. Atten­ tion is also called to the necessity of es,«s«ting more vigorous iawe for the punishment of frauds and smuggling. Ttue can be best done by Judicious provisions that will induce the disclosure of at­ tempted fraud by undervaluation and smuggling. All revenue laws ahould be simple to their provi­ sions, and easily understood, bo far as practicable the rates of taxation should be to the form of speci­ fic duties, and not ad valorem, requiring the judg­ ment of experienced men to ascertain values and expoatog the revenue to the temptation of fraud. Customs Abmei, My attention has been called, during the rnnnsa of Congress, to the abuses existing in the ooDeotfon of the customs, and Btrenuoua efforts have been made for their correction by Executive orders. The rec- omsneudationB submitted to the Secretary of the Treasury by & commission appointed to examine into the collection of customs duties at the port of New York oontato many suggestiona for the cation of the customs laws, to which the attention of Congreaa ia invited^ Public Credit, It Is a matter of congratulation ihat, notwith­ standing the severe burdens caused by the war, the publio faith with all creditors has been preserved, end aa the result of this policw the, public credit haa €tonitouously advanced, and publie securities are re­ garded with the highest favor to the of the world. I trust that no act of the Government will cast a shadow upon its credit The Public DeM. The progress of muadiag the pvttALa debt has- been rapid and satisfactory. Under the contract existing when I entered upon the discharge of the duties of my office, bonds bearing interest at the rate of 4% per cent, were being rapidly sold, and within three months the aggregate sales of these bonds had reached the sum of $200,000,000. With my sanction, the Secretary of the Tiaaaiuj entered into a new contraot for the sale of 4-per- eenf. bonds, and within thirty daya after the popu­ lar subscription for such bonds waa opened aub- acriptions were had amounting to $76,496,560, whioh were paid for within ninety days after the data of subscription. By thla procees, within bat little move than one year, the annual interest on the pub­ lic debt waa reaoesed in the sum of$8,TOMW, Savings Fond*. I feoommead that suitable provision bs made to enable the people to easily convert their savings Into Government seouritiee, as the best modeto which small saving may be well>aeound and yield a moderate lntereat. It is aa object of publio poUv to retain our own people the securltiee m tne United Statea. In this way our country ia guarded against their sudden return from countries, caused by war or other disturbances, beyond our »««*•, Amerteaa Shipping. « The commerce of the United States with forefcrn nations, and especially the export of domestto pro­ ductions, has of late yeatta largely increased, but the greater portion of this trade ia conducted In foreign venels. The importanoe of enlarging our foreign tnda, and especially by direct and speedy Inter- ohangewitb coon tries on tola continent, cannot be over-estimated, and it is a matter of great that our owii shipping interest should reoelvw, to the utmost protlcal extent, the benefit of our commerce wlth other lands. These considerations a7 •uJJ,e ̂ 8* commercial cities of the oountiy, and publio attention is generally and wisely attracted to the solution of theproUtau t&ay preaent. It la not doubted that OongreaawUI take them up, to the broadest spirit ofubeialtty. SSaf^^ect^ * The Indian Wan. The report of the Secretary of War shows that the •ray haa been actively employed during the year, iSSf ^ JmportM* «ervlce In repress tog hostilities tothe Indian country, and preserving Protecting life and property *5 j®18 toterior aa well as along the Mexlcm border. A Song asifc. ard^oua cam­ paign taw been ipoeeouted, with and ~y»~»»»-•- auooeas, against a portion of the Nex Penes tribe of Indians. A full 90000114 of this csmpBUni will bo found in the report of the General of theArmy. It will be aeen that to its course several battles were fought, In whioh a number of gallant officers and men lost their Uvea. I Join with the Secretary of War and General of the Army ia awarding to the officers and men employed in the lotur fa'f*"' pursuit and in the final capture of tbeae TIUHM. the honor and pralae whlsh are so luatly their *ha Labor Riots. ^ . Tiie very serious riots which occurred In asvaral of the States to July last rendered necessary tbe employment of a considerable portion of the army, to preserve the peaee aad «"-<"•-<«» order to the Statea of West Virginia, Maryland, Bmnsylvanla and Illinois. These disturbances were ao formida­ ble as to defy the local aad State authoritiee, and tbe National Executive was called upon, to the mode provided by the constitution and laws, to furnish m ilitary, and I am gratified to be able to state that the troops sent ia reeponse to tor aid to the suppression of violence were able, bv the Influence of their presence to tbe disturb*! re.gkms, to preserve the peace and restore order without the use of force. In the discharge of this delicate and Important duty both officers and men acted with freet prudence and courage, aad for their servicea oeasrve the thanka of the country. She Bio Grande Troubles. _The border distuzticaoee along the Bio Grande, in Texas, to which I have already referred, have ren- dered ncosssai j the constant employment of a mili- A fSSreport of all re- •Srto.r*uth»oTt&,SSTSfTJS £ F <5£&bMMto for Ufc purpose of robbery, have been of frequent cccurreaoe, and, In sntta «f the most vigorous ef­ forts of the commander of ourforcee, tbemuraiid- 6r8 UVO Mttiltf IMIMM in MMnlnff iniM Uct loo wtth&eir ptoto; fa May I^TgaTortcr* for-lhe exercise of the utmost vigilance^on ths Dart of our troops for t®» suppression of these raids, and the punishment of the guilty n«rn-- M toe recapture of tte propwfystcW by them. Gen. Ord, commandant in Texas, waa directed tolnvite foe, co-operation of the Mexicart authorities to ef­ forts to (his end, and to assure that i m anxious to avoid giving tbe least offense to Mexico. At the name Mm* he was directed to gtvenotioe of my determination t<vput an Mid to the tovseionof oor territory by lawless bands, intent upon the plunder of our peaceful gitlsens, even if tbe effectual punishment of the outlaws ahould make the crossing of the border by our troops in their pursuit neoeeaary. It is be­ lieved that this policy haa had the effect toc(icdk, somewhat, these depredations, and that, with a considerable increase of our force upon that fron­ tier and the establishment of several additional military poets along the Bio Grande, so aa more ef­ fectually t> guard that extensive border, peace may be preserved, and the lives and nruoosis ot --" In Texas fully protected. The Army. Prior to the 1st day of July last AM army was, to acoordanoe with law. reduoed to the maximum of 23.000 enlisted men, being a reduction of 2,500 be­ low the fare© previously authorised. Thla reduc­ tion waa made, aa required by law, entirely from the infantry and artillery branches of the aervioe. without any reduction of the cavalry. Under the law, as it now stands. It is necessary that the cavalry regiments should be recruited to 100 men to each company for service on the Mexi­ can and Indian frontiers. The necessary effect of this legislation is to reduce the infantry and artil­ lery arms of the service below the number required for efficiency, and I concur with the Secretary of War in recommending that authority be given to recruit all companies of Infantry to at least fifty men, and all batteries of artillery to. at least seventy- five men, with power, in case of an emergency, to In­ crease the former to 100 and the Mter to 125 men each. I invite your special, attention to the following j#eeommendatk>nH of tbe Secretary of War: First, that a provision be made for supplying to the army a more abundant and better supply of reading mat­ ter. Second, that early action be taken by Con­ gress looking to a oomplete revision and republica­ tion of the army regulations, Third, that section 1,238 of the Revised Statutes, limiting the number of officers on the retired list, be repealed. Fourth, that the claims arising under the act of July 4, 3864,, fur supplies taken by the army during the w»rs to taken from the offiees of tbe Quar- termse^er aad Commissary 0»®c-rals, and tfams-ff-ft'wl to the Southern Claims Commission, or some other tribunal having more time and better facilities fm their prompt investi­ gation and decision than are possessed by these officers. Fifth, that Oiligress provide for an annuity fund for the families of deceased soldiers, as recommended by the Paymaster General of the army. The Navy. The report of the Secretary of the Navy shows that we have six squadrons now engaged to the protection of our commerce and other duties per­ taining to naval service. The condition end opera­ tions of the department are also shown, The total expenditia-es for tbe fiscal year ending June 80, 1877, were f$16,077,074 54. There are unpaid elafms against the department, chargeable to the last year, which are presents'<1 to the consideration of Congress by the report of the Secretary. The estimates for the fiscal year commencing July l, 1878, ar« $16,239,254.40, exclusive of the sum of $2,814.231 submitted for new bujulngn, repairs and improvements at the several navy-yards. The ap­ propriations for the present fiscal year, oommenctog July, 1877, are< $13,592,932.90. The amount drawn from the treasury from July 1 to Nov. 1, 1877, is $5,348,037.40, of which there is estimated to be yet available $1,929,52S.80, showing the amount of actual expenditure during the first four months of the present fiscal year to have been $4,313,509.10. Th© Postal Service. The report of the Poetmaster General contalna a full and clear statement of tbe condition of the Postofflce Department. The 'ordinary revenues of tha department for t#e fiscal year ending June 80, 1877, including receipts from the money-order b'w'nesa and from official stamps and stomped en­ velopes amounted to the rum of $27,531,385.26. The additional sum, $7,013,000, was realized from ap­ propriations from the general treasury for various purposes, making the receipts from all sources $34,544,885.26. The total expenditures during the fiscal year amounted to $33,486,822.44, leaving an exoees of total receipta over total expenditures of $1,058,062.82, and an excess of total expenditures over ordinary receipts of $5,954,757.14. Deducting, from the total receipts the sum of $68,261,841 received from international money orders of the preceding fiscal year, and de­ ducting from the total expenditures the sum of $1,163,818.20 paid on liabilities incurred to previous fii-cal years, the expenditures and receipta apper­ taining to the business of the last fiscal year * in as follows: Expenditures, $32,822,504.24; receipts (ordinary from the money-order business and from official postage stamps), $27,468,329.49: exoees of ex­ penditures $4,854,180.43, Postofflce Department. Tbe ordinary nvenues of tbe Postofflce Depart­ ment for the year ending June 30,1878, are esti­ mated at an increase of 8 per cent, over those of 187V making $29,034,008.28, and the expenditures for tbe same year are estimated at $36,427,771, leav- tog » estimated deficiency for 187$ of $7,893,392 02, The additional legislation reodSnmended W the Postmaster General for improvements of the malt aervioe and to protect the postal revenues f i-orn tho abuses practiocd under existing laws is respectfully commended to the careful consideration of Con­ gress. Judiciary. T!«e KSiOii of i'iw Attorney dsieim! ©oistelii^ eew. . Of a law to that effect. It 'Justice as weli aa a measure of encc earnest efforts m being made to panfc tiio In- dian service, »o that every do 1 tar at»yr»>pi*»tc-d by Qongress shall redound to the bejaeflt of th<» Indiana intended These effcrts will port, enoouragement held oat to the Indfrms to' bettrr theiroonditlon, and to elevate seals of civilization, ws any hope to da. at the -- time, a good work for them and tor+nautom. «•-- The Timber Thieve*. ̂ I invito the attention of Congresa te Aa fcaMils aaoe of ths statements and aaggsatfsM by the See- to be benefited. With an improved aervioe and ev«ry*possible retary of the Interior eoncenaoig ths dnaiiniiiiiina committed open ths tlmlm lamia «TiE» "jjZj States, and the necessity fa* ths preservation ot r, the forests. Zt is believed tLit the"me«s*rea iu pur6utr.sr. cf the Mriwrtwg law t» arrest these depredations will be entirely sucosesfaL If Con­ gress, by an appropriation for,that purpose, rendan their continued enforcement poeaibie. The experience of other nations toarju ni us that a country cannot be stripped of iia forests with inn p unity, and we shall expose ouaselvea te the grtvewf consequences unless the waaWul and Improvident manner to which the forests of ths Vntted State* are destroyed be effectually checked. I earnestly reoommend that the measures suggested by the Sec­ retary of the Interior lor the suppression of depreda­ tions on the publio timber lands of thp Dai ted States, for the selling ot Umber from the puotto lands, and for the preservation of the forests, be embodied in law, ana that, considering the urgent nsoesaity ot enabling the people of oertato States aad Terri­ tories to purchase timber from the publio lands in a legal manner, which at present they oannot la suoh a law be passed without unavoidable delay, Beaert Iandn, 1 would also call tha attention «£. Congress to tha statements made by the Secretary of the interior ooneermug the disposition that might be mads of the desert lands, not irrigated, west of the cms hundredth (100th) meridian. Theee lands are prao- tusally unsalable under existing laws, and the aug- geation is worthy of consideration, that a syiitem of leasehold tenure would make >hem a aearee of profit • to the United Statea, while at the same tune legal­ izing the business of cattle-raising, which is at preaent carried on upon them. Agriculture. Tbe report of the Commissioner ot Aarleultian " contains tee gratifying announcement ci feae ex- traordinary suooegs which has rewarded the sgrieul- industry of the country for th past year. With tha fair prices wh'oh obtain for the products of th© Boilf especially for the Burplius whioJi have to export, we may confidently torn t* this as the most important of all our mjourowj far the re- ' viva! of the depressed mdu-tne* erf the country. The report shows our agricultural program during the year, and contains a statement ci the work dona toy tins dr^partmeut for the advancement ot the agricultural industry upon which tha prosperity of our people so largely depends. Mat­ ters of information are included, of great interest to all who seek, by the experience of others, to lm> prove their own methods of cultivation. The ef­ forts of the department to tooreaae the production of important articles of consumption w4U, it is hoped, improve tbe demand for labor and advance the business of the oountry, and eventually result in saving some of the m&ny millions that are now annually paid to foreign nations for sugar and oth­ er staple products, which habitual mo has made neoessary to our domestic every-day bffc Centennial Board. The m behalf of the United Kbits* «xeoo- tive departments at the International Exposition ot 1876, has concluded its labors. The final report of the board was transmitted to Congress at the last session. As these papers are understood to contain Interesting aad valuable information, and will con­ stitute the only report emanating from the Govern­ ment on the subject ot the exhibition, I invite at­ tention to the matier, and recommend that tlMta. port be published for general information. District of Columbia. Congress Is empowered by the constitution with the authority of exclusive legislation over the Dia> irict of Columbia, to which the seat of the Govern­ ment of the nation is located. The interests of the District having no direct representation to Con­ grees, are entitled to especial consideration and ©ara at the hands of the General Government. The capital of the Unjted States belongs to the nation, and it is nauiral that the American people should take pride in the seat ot their National Government, and desire it to be an ornament to the country. Much has been done to lender it healthful, convenient and attract­ ive, but much remains to be done, which Its per- manent inhabitants are not able and ought not to be expected to do. To impose upon them a large pro­ portion of the cost required for public improve­ ments, which are in a great measure planned anl executed for the convenience of the Government and of the many thousands of visitow from all parti of the eountry who temporarily reside in the capital of the nation, ia an evident injustice. Your attention Is tovitod to the suggestion of thi Commissioners aad of the Bmr<§ of Health for th( organization of a Board of Charities to hsve super­ vision and oontrol of the disbursement of all mo» eys for charitable purposes from the Distract treas- I desire also to ask your especial attention to tht need of adding to the efficiency of the public schools of the District by supplemental »id from tlw national treasury. This ia especially Just since ac large"a number of those atterft'iing schools are chil­ dren of employes of the Government. I earnestly commend to your care the Interest ol the people of the District who are so intimately as­ sociated with the Government establishment, and is whose enterprise the pood order and at­ tractiveness of the Capital are largely due. Mid I ask your attention to the request of the Commissioners for legislation to behalf of the interests intrusted t© their care. The approp­ riations asked for tbe care of reservations bt'lunging to the Government within the city by the Commis­ sioner of Publio Buildings and Grounds, are alao commended (o your favorable consideration. The Washington Monameni. The report of the joint commission created by the set approved August 2, 1876, an atet providing for th© completion of the Washington monument, is also herewith-.transmitter!, with aocompunytog documents. Th® board of engineer officers de­ tailed to examine the monument in compliance with the aeoond section of the act, have reported that the 'oundation te insufficient. No authority exists for making the expenditures necessary to secure its stability, 1 therefore reoottx- mend that the commission ss authorized «>expend such portion of the sum appropriated by the act as may be neoessary for the ptaposo. The preaent unfinished condition of flic grotto»•»»,>>«,.<»..ui pression of suitors, occur, and a remedy should be sought for this •condition of affaire--whether it will be found ia the plan briefly sketched In the report, of increasing the number of Judges of the Circuit Courts, and, by meana of this addition to the Jndlolal force, of creating an inter­ mediate Court of Errors and Appeals, or whether some other mode can be devised mr obvteting tte difficulties which aow exist. Indian Adair*. Xteave toyoor aiature consideration the preaent oondttton of the Indian tribes on the territory of the United States, aad our relations with them arc fully ast forth in the reports of ths Secretary of In­ terior aad the Oommisskmera of Indian Affairs. After a aeries of most deplorable conflicts, tbe suc­ cessful termination of which, whUarefieottog honor upon the brave soldiers who aooompllabed it, can­ not lesson onrrearet at the occurrences. We are now at peace with all the Indian tribes on our borders. To preeerve that peace by a just sad humane policy will be the object of my earnest endeavors, what­ ever may be aaid of that character aad savage pro­ pensities, of the difficulties of introducing among them the habits of civilised life, and the obstacles they have offered to the progreaa of aettltogto cer­ tain parta of the country, tbe Indiana are certainly entitled to our sympathy aad to a conscientious st speeton our part for their claims upon our MBMO! justice. They were the aboriginal ocoupanta of the land wanow posstaa. They have been driven from Slaoe to*place. Tbepurchaeenwtw paldto them i some cases for what they called their own has still left them poor. In many instances, when tk? had-settled down npon land asrigned to than, to compact, and begun to wpportt&Mn^ves by their own labor, they were rudely Jostled off and thrust Into the wilderness sasto. .Many,U our Indian wars have had not most,of their origin In broken of injustice upon our part, and the Indian Ihe^advanoe ot the iadianto cdvllixation~has b«en slow, because the treatment they reortvsS did not permit it to be faster end more general. We cannot expert them to Improve and to follow our guid­ ance »"i-- we keep faith with them tn respecting the rights they possess, and unleaa, instead of de- vtog them ofthSropportunities, we lend them a ping hand. I oordiMly approve the policy re- ig tbe management of Indian affairs outlined reports of the Secretary of the Interior and of the Commissioners of Indian Affairs. The faith­ ful performance of oar promises 1s the first condi­ tion of a good understanding with the Indiana. 1 oannot too urgently reoommend to Congreaa that & prompt aad liberal provision be made for the con­ scientious fulfillment of all agreements entered Into by the Government with the Indian tribes. To withhold the meana neoessary for the perform­ ance of a promise is alwaya false eoon- cmy9 nad to apt to prove dtastrous in its oonM«iMmg. Especial care ia recommend­ ed to provide for the Indiana aettled on their reservations, cattle aad agricultural Im­ plements to aid m«m In whatever efforts they may make to support themselves, and by the re-eetab- lishment and maintenance of schools to bring them under the oontrol of civilized influences. I see ao reason why Indians who can give satisfactory proof of having by their own labor supported their fami­ lies for a number of years, aad who are willing to detach themselves from their tribal relatlona^hould not be admitted to the bsaeflta of the homeetead act aad the privileges of oitlsenahlp; aad I recommend Public Education. The wisdom of legislation upon the pwt ef Oon- grees to aid of the Statea for the education of the whole people In those branches jot study which are taught to he common schools of the country, is no loagera question.The Intelligent Judgment of the oountry goes still further, regarding It ae also both constitutional and expedient for the General Government to extend to" Mitel and higher education such aid u ia jflgaed essential to the general welfare, SUB to our due promtaeuM among the enlightened and cultured nations of th© world. The ultimate 01 th„e tature, whether of administration or finance, or of true nationality of aentlment, depends npon the virtue and intelli­ gence of the people. It is vain to hope for the government without the meana of insuring the intelligence of those who are' tbe :****** one-seventh of the lottos population of our country are yet unable to read and write. It la enooaragtng to ob­ serve, to connection with the growth df fraternal ItSlSS J?JhO0e 8^e* ta »hfah slavery formerly existed, evldenoes qf Increasing Interest to univer­ sal education, and I shall be glad to give my ap­ proval to aayapproprtate measures which'may be enacted by Oongreee for the purpose ot supple- menttog, with national aid, the local systems ofr ed- iication in theae Statea aad tn aa the States.; and. JE"r •"•*»*»» *o the needs of the District of Columbia with respect to its pub­ lic-school system, I here add that I believe it d<li»- »<> the local wants of the Djstrlqt, but the great and lasting benefit of the entire country, that this system should be crowned with a university in all respects to keeping with the National Capital, end thereby realise &e cherished braes of Washington on this subject. I also earnestly commend the request of the Re- gents of the Smithsonian Institute, that an adequate appropiation be made for the replenishment and conduct of a national museum under .heir super- And So Vortfc. > request providing forthe-pneervaticm and h of the library ot Congress Is also one of na- Thei growth < _ _ _ _ tional Importance. As the depository of oopyright publications and records, this library has outgrown the provisions for its accommodation, and the erection, on suoh site as the judgment of Congress may approve, of a fire-proof 'library building, to preeerve the treasures kad enlarge the usefuluese of thla valuable collection, Is reooanmended. I recommend also suoh legislation as will render available and efficient for the purpose of iastruo- tion, so far as is consistent with the pnolio service, ths cabinets or muaeama cf (mention, of surgery of education, of agriculture and other collations! the property of the national Government! Tha capital of the nation should b« some­ thing more than a mere political center. We should avail ourselves of all the opportunities which Provi­ de noe has here placed at our command to enhance the general intelligence of the people and lncreaae tbi conditions most favorable to the perpetuity of our institutions. c.JiSTW