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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..6833f05 --- /dev/null +++ b/.gitattributes @@ -0,0 +1,3 @@ +* text=auto +*.txt text +*.md text diff --git a/5026-h.zip b/5026-h.zip Binary files differnew file mode 100644 index 0000000..1ae2c13 --- /dev/null +++ b/5026-h.zip diff --git a/5026-h/5026-h.htm b/5026-h/5026-h.htm new file mode 100644 index 0000000..6cb2c2c --- /dev/null +++ b/5026-h/5026-h.htm @@ -0,0 +1,8220 @@ +<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.1//EN" + "http://www.w3.org/TR/xhtml11/DTD/xhtml11.dtd"> + +<html xmlns="http://www.w3.org/1999/xhtml" xml:lang="en"> + +<head> + +<meta http-equiv="Content-Type" content="text/html; charset=ISO-8859-1" /> + +<title> +The Project Gutenberg E-text of State of the Union Addresses, by Ulysses S. 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Grant + +This eBook is for the use of anyone anywhere in the United States and most +other parts of the world at no cost and with almost no restrictions +whatsoever. You may copy it, give it away or re-use it under the terms of +the Project Gutenberg License included with this eBook or online at +www.gutenberg.org. If you are not located in the United States, you'll have +to check the laws of the country where you are located before using this ebook. + +Title: State of the Union Addresses + +Author: Ulysses S. Grant + +Posting Date: November 27, 2014 [EBook #5026] +Release Date: February, 2004 +First Posted: April 11, 2002 +Last Updated: December 16, 2004 + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK STATE OF THE UNION ADDRESSES *** + + + + +Produced by James Linden. HTML version by Al Haines. + + + + + +</pre> + + +<h1> +<br /><br /><br /> +State of the Union Addresses of Ulysses S. Grant +</h1> + +<p class="noindent"> +<br /><br /> +The addresses are separated by three asterisks: *** +</p> + +<p class="noindent"> +Dates of addresses by Ulysses S. Grant in this eBook: +</p> + +<p class="noindent"> + <a href="#dec1869">December 6, 1869</a><br /> + <a href="#dec1870">December 5, 1870</a><br /> + <a href="#dec1871">December 4, 1871</a><br /> + <a href="#dec1872">December 2, 1872</a><br /> + <a href="#dec1873">December 1, 1873</a><br /> + <a href="#dec1874">December 7, 1874</a><br /> + <a href="#dec1875">December 7, 1875</a><br /> + <a href="#dec1876">December 5, 1876</a><br /> +</p> + +<p><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1869"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 6, 1869<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +In coming before you for the first time as Chief Magistrate of this great +nation, it is with gratitude to the Giver of All Good for the many benefits +we enjoy. We are blessed with peace at home, and are without entangling +alliances abroad to forebode trouble; with a territory unsurpassed in +fertility, of an area equal to the abundant support of 500,000,000 people, +and abounding in every variety of useful mineral in quantity sufficient to +supply the world for generations; with exuberant crops; with a variety of +climate adapted to the production of every species of earth's riches and +suited to the habits, tastes, and requirements of every living thing; with +a population of 40,000,000 free people, all speaking one language; with +facilities for every mortal to acquire an education; with institutions +closing to none the avenues to fame or any blessing of fortune that may be +coveted; with freedom of the pulpit, the press, and the school; with a +revenue flowing into the National Treasury beyond the requirements of the +Government. Happily, harmony is being rapidly restored within our own +borders. Manufactures hitherto unknown in our country are springing up in +all sections, producing a degree of national independence unequaled by that +of any other power. +</p> + +<p> +These blessings and countless others are intrusted to your care and mine +for safe-keeping for the brief period of our tenure of office. In a short +time we must, each of us, return to the ranks of the people, who have +conferred upon us our honors, and account to them for our stewardship. I +earnestly desire that neither you nor I may be condemned by a free and +enlightened constituency nor by our own consciences. +</p> + +<p> +Emerging from a rebellion of gigantic magnitude, aided, as it was, by the +sympathies and assistance of nations with which we were at peace, eleven +States of the Union were, four years ago, left without legal State +governments. A national debt had been contracted; American commerce was +almost driven from the seas; the industry of one-half of the country had +been taken from the control of the capitalist and placed where all labor +rightfully belongs--in the keeping of the laborer. The work of restoring +State governments loyal to the Union, of protecting and fostering free +labor, and providing means for paying the interest on the public debt has +received ample attention from Congress. Although your efforts have not met +with the success in all particulars that might have been desired, yet on +the whole they have been more successful than could have been reasonably +anticipated. +</p> + +<p> +Seven States which passed ordinances of secession have been fully restored +to their places in the Union. The eighth (Georgia) held an election at +which she ratified her constitution, republican in form, elected a +governor, Members of Congress, a State legislature, and all other officers +required. The governor was duly installed, and the legislature met and +performed all the acts then required of them by the reconstruction acts of +Congress. Subsequently, however, in violation of the constitution which +they had just ratified (as since decided by the supreme court of the +State), they unseated the colored members of the legislature and admitted +to seats some members who are disqualified by the third clause of the +fourteenth amendment to the Constitution--an article which they themselves +had contributed to ratify. Under these circumstances I would submit to you +whether it would not be wise, without delay, to enact a law authorizing the +governor of Georgia to convene the members originally elected to the +legislature, requiring each member to take the oath prescribed by the +reconstruction acts, and none to be admitted who are ineligible under the +third clause of the fourteenth amendment. +</p> + +<p> +The freedmen, under the protection which they have received, are making +rapid progress in learning, and no complaints are heard of lack of industry +on their part where they receive fair remuneration for their labor. The +means provided for paying the interest on the public debt, with all other +expenses of Government, are more than ample. The loss of our commerce is +the only result of the late rebellion which has not received sufficient +attention from you. To this subject I call your earnest attention. I will +not now suggest plans by which this object may be effected, but will, if +necessary, make it the subject of a special message during the session of +Congress. +</p> + +<p> +At the March term Congress by joint resolution authorized the Executive to +order elections in the States of Virginia, Mississippi, and Texas, to +submit to them the constitutions which each had previously, in convention, +framed, and submit the constitutions, either entire or in separate parts, +to be voted upon, at the discretion of the Executive. Under this authority +elections were called. In Virginia the election took place on the 6th of +July, 1869. The governor and lieutenant-governor elected have been +installed. The legislature met and did all required by this resolution and +by all the reconstruction acts of Congress, and abstained from all doubtful +authority. I recommend that her Senators and Representatives be promptly +admitted to their seats, and that the State be fully restored to its place +in the family of States. Elections were called in Mississippi and Texas, to +commence on the 30th of November, 1869, and to last two days in Mississippi +and four days in Texas. The elections have taken place, but the result is +not known. It is to be hoped that the acts of the legislatures of these +States, when they meet, will be such as to receive your approval, and thus +close the work of reconstruction. +</p> + +<p> +Among the evils growing out of the rebellion, and not yet referred to, is +that of an irredeemable currency. It is an evil which I hope will receive +your most earnest attention. It is a duty, and one of the highest duties, +of Government to secure to the citizen a medium of exchange of fixed, +unvarying value. This implies a return to a specie basis, and no substitute +for it can be devised. It should be commenced now and reached at the +earliest practicable moment consistent with a fair regard to the interests +of the debtor class. Immediate resumption, if practicable, would not be +desirable. It would compel the debtor class to pay, beyond their contracts, +the premium on gold at the date of their purchase and would bring +bankruptcy and ruin to thousands. Fluctuation, however, in the paper value +of the measure of all values (gold) is detrimental to the interests of +trade. It makes the man of business an involuntary gambler, for in all +sales where future payment is to be made both parties speculate as to what +will be the value of the currency to be paid and received. I earnestly +recommend to you, then, such legislation as will insure a gradual return to +specie payments and put an immediate stop to fluctuations in the value of +currency. +</p> + +<p> +The methods to secure the former of these results are as numerous as are +the speculators on political economy. To secure the latter I see but one +way, and that is to authorize the Treasury to redeem its own paper, at a +fixed price, whenever presented, and to withhold from circulation all +currency so redeemed until sold again for gold. +</p> + +<p> +The vast resources of the nation, both developed and undeveloped, ought to +make our credit the best on earth. With a less burden of taxation than the +citizen has endured for six years past, the entire public debt could be +paid in ten years. But it is not desirable that the people should be taxed +to pay it in that time. Year by year the ability to pay increases in a +rapid ratio. But the burden of interest ought to be reduced as rapidly as +can be done without the violation of contract. The public debt is +represented in great part by bonds having from five to twenty and from ten +to forty years to run, bearing interest at the rate of 6 per cent and 5 per +cent, respectively. It is optional with the Government to pay these bonds +at any period after the expiration of the least time mentioned upon their +face. The time has already expired when a great part of them may be taken +up, and is rapidly approaching when all may be. It is believed that all +which are now due may be replaced by bonds bearing a rate of interest not +exceeding 4 1/2 per cent, and as rapidly as the remainder become due that +they may be replaced in the same way. To accomplish this it may be +necessary to authorize the interest to be paid at either of three or four +of the money centers of Europe, or by any assistant treasurer of the United +States, at the option of the holder of the bond. I suggest this subject for +the consideration of Congress, and also, simultaneously with this, the +propriety of redeeming our currency, as before suggested, at its market +value at the time the law goes into effect, increasing the rate at which +currency shall be bought and sold from day to day or week to week, at the +same rate of interest as Government pays upon its bonds. +</p> + +<p> +The subjects of tariff and internal taxation will necessarily receive your +attention. The revenues of the country are greater than the requirements, +and may with safety be reduced. But as the funding of the debt in a 4 or a +4 1/2 per cent loan would reduce annual current expenses largely, thus, +after funding, justifying a greater reduction of taxation than would be now +expedient, I suggest postponement of this question until the next meeting +of Congress. +</p> + +<p> +It may be advisable to modify taxation and tariff in instances where unjust +or burdensome discriminations are made by the present laws, but a general +revision of the laws regulating this subject I recommend the postponement +of for the present. I also suggest the renewal of the tax on incomes, but +at a reduced rate, say of 3 per cent, and this tax to expire in three +years. +</p> + +<p> +With the funding of the national debt, as here suggested, I feel safe in +saying that taxes and the revenue from imports may be reduced safely from +sixty to eighty millions per annum at once, and may be still further +reduced from year to year, as the resources of the country are developed. +</p> + +<p> +The report of the Secretary of the Treasury shows the receipts of the +Government for the fiscal year ending June 30, 1869, to be $370,943,747, +and the expenditures, including interest, bounties, etc., to be +$321,490,597. The estimates for the ensuing year are more favorable to the +Government, and will no doubt show a much larger decrease of the public +debt. +</p> + +<p> +The receipts in the Treasury beyond expenditures have exceeded the amount +necessary to place to the credit of the sinking fund, as provided by law. +To lock up the surplus in the Treasury and withhold it from circulation +would lead to such a contraction of the currency as to cripple trade and +seriously affect the prosperity of the country. Under these circumstances +the Secretary of the Treasury and myself heartily concurred in the +propriety of using all the surplus currency in the Treasury in the purchase +of Government bonds, thus reducing the interest-bearing indebtedness of the +country, and of submitting to Congress the question of the disposition to +be made of the bonds so purchased. The bonds now held by the Treasury +amount to about seventy-five millions, including those belonging to the +sinking fund. I recommend that the whole be placed to the credit of the +sinking fund. +</p> + +<p> +Your attention is respectfully invited to the recommendations of the +Secretary of the Treasury for the creation of the office of commissioner of +customs revenue; for the increase of salaries to certain classes of +officials; the substitution of increased national-bank circulation to +replace the outstanding 3 per cent certificates; and most especially to his +recommendation for the repeal of laws allowing shares of fines, penalties, +forfeitures, etc., to officers of the Government or to informers. +</p> + +<p> +The office of Commissioner of Internal Revenue is one of the most arduous +and responsible under the Government. It falls but little, if any, short of +a Cabinet position in its importance and responsibilities. I would ask for +it, therefore, such legislation as in your judgment will place the office +upon a footing of dignity commensurate with its importance and with the +character and qualifications of the class of men required to fill it +properly. +</p> + +<p> +As the United States is the freest of all nations, so, too, its people +sympathize with all people struggling for liberty and self-government; but +while so sympathizing it is due to our honor that we should abstain from +enforcing our views upon unwilling nations and from taking an interested +part, without invitation, in the quarrels between different nations or +between governments and their subjects. Our course should always be in +conformity with strict justice and law, international and local. Such has +been the policy of the Administration in dealing with these questions. For +more than a year a valuable province of Spain, and a near neighbor of ours, +in whom all our people can not but feel a deep interest, has been +struggling for independence and freedom. The people and Government of the +United States entertain the same warm feelings and sympathies for the +people of Cuba in their pending struggle that they manifested throughout +the previous struggles between Spain and her former colonies in behalf of +the latter. But the contest has at no time assumed the conditions which +amount to a war in the sense of international law, or which would show the +existence of a de facto political organization of the insurgents sufficient +to justify a recognition of belligerency. +</p> + +<p> +The principle is maintained, however, that this nation is its own judge +when to accord the rights of belligerency, either to a people struggling to +free themselves from a government they believe to be oppressive or to +independent nations at war with each other. +</p> + +<p> +The United States have no disposition to interfere with the existing +relations of Spain to her colonial possessions on this continent. They +believe that in due time Spain and other European powers will find their +interest in terminating those relations and establishing their present +dependencies as independent powers--members of the family of nations. These +dependencies are no longer regarded as subject to transfer from one +European power to another. When the present relation of colonies ceases, +they are to become independent powers, exercising the right of choice and +of self-control in the determination of their future condition and +relations with other powers. +</p> + +<p> +The United States, in order to put a stop to bloodshed in Cuba, and in the +interest of a neighboring people, proposed their good offices to bring the +existing contest to a termination. The offer, not being accepted by Spain +on a basis which we believed could be received by Cuba, was withdrawn. It +is hoped that the good offices of the United States may yet prove +advantageous for the settlement of this unhappy strife. Meanwhile a number +of illegal expeditions against Cuba have been broken up. It has been the +endeavor of the Administration to execute the neutrality laws in good +faith, no matter how unpleasant the task, made so by the sufferings we have +endured from lack of like good faith toward us by other nations. +</p> + +<p> +On the 26th of March last the United States schooner Lizzie Major was +arrested on the high seas by a Spanish frigate, and two passengers taken +from it and carried as prisoners to Cuba. Representations of these facts +were made to the Spanish Government as soon as official information of them +reached Washington. The two passengers were set at liberty, and the Spanish +Government assured the United States that the captain of the frigate in +making the capture had acted without law, that he had been reprimanded for +the irregularity of his conduct, and that the Spanish authorities in Cuba +would not sanction any act that could violate the rights or treat with +disrespect the sovereignty of this nation. +</p> + +<p> +The question of the seizure of the brig Mary Lowell at one of the Bahama +Islands by Spanish authorities is now the subject of correspondence between +this Government and those of Spain and Great Britain. +</p> + +<p> +The Captain-General of Cuba about May last issued a proclamation +authorizing search to be made of vessels on the high seas. Immediate +remonstrance was made against this, whereupon the Captain-General issued a +new proclamation limiting the right of search to vessels of the United +States so far as authorized under the treaty of 1795. This proclamation, +however, was immediately withdrawn. +</p> + +<p> +I have always felt that the most intimate relations should be cultivated +between the Republic of the United States and all independent nations on +this continent. It may be well worth considering whether new treaties +between us and them may not be profitably entered into, to secure more +intimate relations--friendly, commercial, and otherwise. +</p> + +<p> +The subject of an interoceanic canal to connect the Atlantic and Pacific +oceans through the Isthmus of Darien is one in which commerce is greatly +interested. Instructions have been given to our minister to the Republic of +the United States of Colombia to endeavor to obtain authority for a survey +by this Government, in order to determine the practicability of such an +undertaking, and a charter for the right of way to build, by private +enterprise, such a work, if the survey proves it to be practicable. +</p> + +<p> +In order to comply with the agreement of the United States as to a mixed +commission at Lima for the adjustment of claims, it became necessary to +send a commissioner and secretary to Lima in August last. No appropriation +having been made by Congress for this purpose, it is now asked that one be +made covering the past and future expenses of the commission. +</p> + +<p> +The good offices of the United States to bring about a peace between Spain +and the South American Republics with which she is at war having been +accepted by Spain, Peru, and Chile, a congress has been invited to be held +in Washington during the present winter. +</p> + +<p> +A grant has been given to Europeans of an exclusive right of transit over +the territory of Nicaragua, to which Costa Rico has given its assent, +which, it is alleged, conflicts with vested rights of citizens of the +United States. The Department of State has now this subject under +consideration. +</p> + +<p> +The minister of Peru having made representations that there was a state of +war between Peru and Spain, and that Spain was constructing, in and near +New York, thirty gunboats, which might be used by Spain in such a way as to +relieve the naval force at Cuba, so as to operate against Peru, orders were +given to prevent their departure. No further steps having been taken by the +representative of the Peruvian Government to prevent the departure of these +vessels, and I not feeling authorized to detain the property of a nation +with which we are at peace on a mere Executive order, the matter has been +referred to the courts to decide. +</p> + +<p> +The conduct of the war between the allies and the Republic of Paraguay has +made the intercourse with that country so difficult that it has been deemed +advisable to withdraw our representative from there. +</p> + +<p> +Toward the close of the last Administration a convention was signed at +London for the settlement of all outstanding claims between Great Britain +and the United States, which failed to receive the advice and consent of +the Senate to its ratification. The time and the circumstances attending +the negotiation of that treaty were unfavorable to its acceptance by the +people of the United States, and its provisions were wholly inadequate for +the settlement of the grave wrongs that had been sustained by this +Government, as well as by its citizens. The injuries resulting to the +United States by reason of the course adopted by Great Britain during our +late civil war--in the increased rates of insurance; in the diminution of +exports and imports, and other obstructions to domestic industry and +production; in its effect upon the foreign commerce of the country; in the +decrease and transfer to Great Britain of our commercial marine; in the +prolongation of the war and the increased cost (both in treasure and in +lives) of its suppression could not be adjusted and satisfied as ordinary +commercial claims, which continually arise between commercial nations; and +yet the convention treated them simply as such ordinary claims, from which +they differ more widely in the gravity of their character than in the +magnitude of their amount, great even as is that difference. Not a word was +found in the treaty, and not an inference could be drawn from it, to remove +the sense of the unfriendliness of the course of Great Britain in our +struggle for existence, which had so deeply and universally impressed +itself upon the people of this country. +</p> + +<p> +Believing that a convention thus misconceived in its scope and inadequate +in its provisions would not have produced the hearty, cordial settlement of +pending questions, which alone is consistent with the relations which I +desire to have firmly established between the United States and Great +Britain, I regarded the action of the Senate in rejecting the treaty to +have been wisely taken in the interest of peace and as a necessary step in +the direction of a perfect and cordial friendship between the two +countries. A sensitive people, conscious of their power, are more at ease +under a great wrong wholly unatoned than under the restraint of a +settlement which satisfies neither their ideas of justice nor their grave +sense of the grievance they have sustained. The rejection of the treaty was +followed by a state of public feeling on both sides which I thought not +favorable to an immediate attempt at renewed negotiations. I accordingly so +instructed the minister of the United States to Great Britain, and found +that my views in this regard were shared by Her Majesty's ministers. I hope +that the time may soon arrive when the two Governments can approach the +solution of this momentous question with an appreciation of what is due to +the rights, dignity, and honor of each, and with the determination not only +to remove the causes of complaint in the past, but to lay the foundation of +a broad principle of public law which will prevent future differences and +tend to firm and continued peace and friendship. +</p> + +<p> +This is now the only grave question which the United States has with any +foreign nation. +</p> + +<p> +The question of renewing a treaty for reciprocal trade between the United +States and the British Provinces on this continent has not been favorably +considered by the Administration. The advantages of such a treaty would be +wholly in favor of the British producer. Except, possibly, a few engaged in +the trade between the two sections, no citizen of the United States would +be benefited by reciprocity. Our internal taxation would prove a protection +to the British producer almost equal to the protection which our +manufacturers now receive from the tariff. Some arrangement, however, for +the regulation of commercial intercourse between the United States and the +Dominion of Canada may be desirable. +</p> + +<p> +The commission for adjusting the claims of the "Hudsons Bay and Puget Sound +Agricultural Company" upon the United States has terminated its labors. The +award of $650,000 has been made and all rights and titles of the company on +the territory of the United States have been extinguished. Deeds for the +property of the company have been delivered. An appropriation by Congress +to meet this sum is asked. +</p> + +<p> +The commissioners for determining the northwestern land boundary between +the United States and the British possessions under the treaty of 1856 have +completed their labors, and the commission has been dissolved. +</p> + +<p> +In conformity with the recommendation of Congress, a proposition was early +made to the British Government to abolish the mixed courts created under +the treaty of April 7, 1862, for the suppression of the slave trade. The +subject is still under negotiation. +</p> + +<p> +It having come to my knowledge that a corporate company, organized under +British laws, proposed to land upon the shores of the United States and to +operate there a submarine cable, under a concession from His Majesty the +Emperor of the French of an exclusive right for twenty years of telegraphic +communication between the shores of France and the United States, with the +very objectionable feature of subjecting all messages conveyed thereby to +the scrutiny and control of the French Government, I caused the French and +British legations at Washington to be made acquainted with the probable +policy of Congress on this subject, as foreshadowed by the bill which +passed the Senate in March last. This drew from the representatives of the +company an agreement to accept as the basis of their operations the +provisions of that bill, or of such other enactment on the subject as might +be passed during the approaching session of Congress; also, to use their +influence to secure from the French Government a modification of their +concession, so as to permit the landing upon French soil of any cable +belonging to any company incorporated by the authority of the United States +or of any State in the Union, and, on their part, not to oppose the +establishment of any such cable. In consideration of this agreement I +directed the withdrawal of all opposition by the United States authorities +to the landing of the cable and to the working of it until the meeting of +Congress. I regret to say that there has been no modification made in the +company's concession, nor, so far as I can learn, have they attempted to +secure one. Their concession excludes the capital and the citizens of the +United States from competition upon the shores of France. I recommend +legislation to protect the rights of citizens of the United States, as well +as the dignity and sovereignty of the nation, against such an assumption. I +shall also endeavor to secure, by negotiation, an abandonment of the +principle of monopolies in ocean telegraphic cables. Copies of this +correspondence are herewith furnished. +</p> + +<p> +The unsettled political condition of other countries, less fortunate than +our own, sometimes induces their citizens to come to the United States for +the sole purpose of becoming naturalized. Having secured this, they return +to their native country and reside there, without disclosing their change +of allegiance. They accept official positions of trust or honor, which can +only be held by citizens of their native land; they journey under passports +describing them as such citizens; and it is only when civil discord, after +perhaps years of quiet, threatens their persons or their property, or when +their native state drafts them into its military service, that the fact of +their change of allegiance is made known. They reside permanently away from +the United States, they contribute nothing to its revenues, they avoid the +duties of its citizenship, and they only make themselves known by a claim +of protection. I have directed the diplomatic and consular officers of the +United States to scrutinize carefully all such claims for protection. The +citizen of the United States, whether native or adopted, who discharges his +duty to his country, is entitled to its complete protection. While I have a +voice in the direction of affairs I shall not consent to imperil this +sacred right by conferring it upon fictitious or fraudulent claimants. +</p> + +<p> +On the accession of the present Administration it was found that the +minister for North Germany had made propositions for the negotiation of a +convention for the protection of emigrant passengers, to which no response +had been given. It was concluded that to be effectual all the maritime +powers engaged in the trade should join in such a measure. Invitations have +been extended to the cabinets of London, Paris, Florence, Berlin, Brussels, +The Hague, Copenhagen, and Stockholm to empower their representatives at +Washington to simultaneously enter into negotiations and to conclude with +the United States conventions identical in form, making uniform regulations +as to the construction of the parts of vessels to be devoted to the use of +emigrant passengers, as to the quality and quantity of food, as to the +medical treatment of the sick, and as to the rules to be observed during +the voyage, in order to secure ventilation, to promote health, to prevent +intrusion, and to protect the females; and providing for the establishment +of tribunals in the several countries for enforcing such regulations by +summary process. +</p> + +<p> +Your attention is respectfully called to the law regulating the tariff on +Russian hemp, and to the question whether to fix the charges on Russian +hemp higher than they are fixed upon manila is not a violation of our +treaty with Russia placing her products upon the same footing with those of +the most favored nations. +</p> + +<p> +Our manufactures are increasing with wonderful rapidity under the +encouragement which they now receive. With the improvements in machinery +already effected, and still increasing, causing machinery to take the place +of skilled labor to a large extent, our imports of many articles must fall +off largely within a very few years. Fortunately, too, manufactures are not +confined to a few localities, as formerly, and it is to be hoped will +become more and more diffused, making the interest in them equal in all +sections. They give employment and support to hundreds of thousands of +people at home, and retain with us the means which otherwise would be +shipped abroad. The extension of railroads in Europe and the East is +bringing into competition with our agricultural products like products of +other countries. Self-interest, if not self-preservation, therefore +dictates caution against disturbing any industrial interest of the country. +It teaches us also the necessity of looking to other markets for the sale +of our surplus. Our neighbors south of us and China and Japan, should +receive our special attention. It will be the endeavor of the +Administration to cultivate such relations with all these nations as to +entitle us to their confidence and make it their interest, as well as ours, +to establish better commercial relations. +</p> + +<p> +Through the agency of a more enlightened policy than that heretofore +pursued toward China, largely due to the sagacity and efforts of one of our +own distinguished citizens, the world is about to commence largely +increased relations with that populous and hitherto exclusive nation. As +the United States have been the initiators in this new policy, so they +should be the most earnest in showing their good faith in making it a +success. In this connection I advise such legislation as will forever +preclude the enslavement of the Chinese upon our soil under the name of +coolies, and also prevent American vessels from engaging in the +transportation of coolies to any country tolerating the system. I also +recommend that the mission to China be raised to one of the first class. +</p> + +<p> +On my assuming the responsible duties of Chief Magistrate of the United +States it was with the conviction that three things were essential to its +peace, prosperity, and fullest development. First among these is strict +integrity in fulfilling all our obligations; second, to secure protection +to the person and property of the citizen of the United States in each and +every portion of our common country, wherever he may choose to move, +without reference to original nationality, religion, color, or politics, +demanding of him only obedience to the laws and proper respect for the +rights of others; third, union of all the States, with equal rights, +indestructible by any constitutional means. +</p> + +<p> +To secure the first of these, Congress has taken two essential steps: +First, in declaring by joint resolution that the public debt shall be paid, +principal and interest, in coin; and, second, by providing the means for +paying. Providing the means, however, could not secure the object desired +without a proper administration of the laws for the collection of the +revenues and an economical disbursement of them. To this subject the +Administration has most earnestly addressed itself, with results, I hope, +satisfactory to the country. There has been no hesitation in changing +officials in order to secure an efficient execution of the laws, sometimes, +too, when, in a mere party view, undesirable political results were likely +to follow; nor any hesitation in sustaining efficient officials against +remonstrances wholly political. +</p> + +<p> +It may be well to mention here the embarrassment possible to arise from +leaving on the statute books the so-called "tenure-of-office acts," and to +earnestly recommend their total repeal. It could not have been the +intention of the framers of the Constitution, when providing that +appointments made by the President should receive the consent of the +Senate, that the latter should have the power to retain in office persons +placed there by Federal appointment against the will of the President. The +law is inconsistent with a faithful and efficient administration of the +Government. What faith can an Executive put in officials forced upon him, +and those, too, whom he has suspended for reason? How will such officials +be likely to serve an Administration which they know does not trust them? +</p> + +<p> +For the second requisite to our growth and prosperity time and a firm but +humane administration of existing laws (amended from time to time as they +may prove ineffective or prove harsh and unnecessary) are probably all that +are required. +</p> + +<p> +The third can not be attained by special legislation, but must be regarded +as fixed by the Constitution itself and gradually acquiesced in by force of +public opinion. +</p> + +<p> +From the foundation of the Government to the present the management of the +original inhabitants of this continent--the Indians--has been a subject of +embarrassment and expense, and has been attended with continuous robberies, +murders, and wars. From my own experience upon the frontiers and in Indian +countries, I do not hold either legislation or the conduct of the whites +who come most in contact with the Indian blameless for these hostilities. +The past, however, can not be undone, and the question must be met as we +now find it. I have attempted a new policy toward these wards of the nation +(they can not be regarded in any other light than as wards), with fair +results so far as tried, and which I hope will be attended ultimately with +great success. The Society of Friends is well known as having succeeded in +living in peace with the Indians in the early settlement of Pennsylvania, +while their white neighbors of other sects in other sections were +constantly embroiled. They are also known for their opposition to all +strife, violence, and war, and are generally noted for their strict +integrity and fair dealings. These considerations induced me to give the +management of a few reservations of Indians to them and to throw the burden +of the selection of agents upon the society itself. The result has proven +most satisfactory. It will be found more fully set forth in the report of +the Commissioner of Indian Affairs. For superintendents and Indian agents +not on the reservations, officers of the Army were selected. The reasons +for this are numerous. Where Indian agents are sent, there, or near there, +troops must be sent also. The agent and the commander of troops are +independent of each other, and are subject to orders from different +Departments of the Government. The army officer holds a position for life; +the agent, one at the will of the President. The former is personally +interested in living in harmony with the Indian and in establishing a +permanent peace, to the end that some portion of his life may be spent +within the limits of civilized society; the latter has no such personal +interest. Another reason is an economic one; and still another, the hold +which the Government has upon a life officer to secure a faithful discharge +of duties in carrying out a given policy. +</p> + +<p> +The building of railroads, and the access thereby given to all the +agricultural and mineral regions of the country, is rapidly bringing +civilized settlements into contact with all the tribes of Indians. No +matter what ought to be the relations between such settlements and the +aborigines, the fact is they do not harmonize well, and one or the other +has to give way in the end. A system which looks to the extinction of a +race is too horrible for a nation to adopt without entailing upon itself +the wrath of all Christendom and engendering in the citizen a disregard for +human life and the rights of others, dangerous to society. I see no +substitute for such a system, except in placing all the Indians on large +reservations, as rapidly as it can be done, and giving them absolute +protection there. As soon as they are fitted for it they should be induced +to take their lands in severalty and to set up Territorial governments for +their own protection. For full details on this subject I call your special +attention to the reports of the Secretary of the Interior and the +Commissioner of Indian Affairs. +</p> + +<p> +The report of the Secretary of War shows the expenditures of the War +Department for the year ending June 30, 1869, to be $80,644,042, of which +$23,882,310 was disbursed in the payment of debts contracted during the +war, and is not chargeable to current army expenses. His estimate of +$34,531,031 for the expenses of the Army for the next fiscal year is as low +as it is believed can be relied on. The estimates of bureau officers have +been carefully scrutinized, and reduced wherever it has been deemed +practicable. If, however, the condition of the country should be such by +the beginning of the next fiscal year as to admit of a greater +concentration of troops, the appropriation asked for will not be expended. +</p> + +<p> +The appropriations estimated for river and harbor improvements and for +fortifications are submitted separately. Whatever amount Congress may deem +proper to appropriate for these purposes will be expended. +</p> + +<p> +The recommendation of the General of the Army that appropriations be made +for the forts at Boston. Portland, New York, Philadelphia, New Orleans, and +San Francisco, if for no other, is concurred in. I also ask your special +attention to the recommendation of the general commanding the Military +Division of the Pacific for the sale of the seal islands of St. Paul and +St. George, Alaska Territory, and suggest that it either be complied with +or that legislation be had for the protection of the seal fisheries from +which a revenue should be derived. +</p> + +<p> +The report of the Secretary of War contains a synopsis of the reports of +the heads of bureaus, of the commanders of military divisions, and of the +districts of Virginia, Mississippi, and Texas, and the report of the +General of the Army in full. The recommendations therein contained have +been well considered, and are submitted for your action. I, however, call +special attention to the recommendation of the Chief of Ordnance for the +sale of arsenals and lands no longer of use to the Government; also, to the +recommendation of the Secretary of War that the act of 3d March, 1869, +prohibiting promotions and appointments in the staff corps of the Army, be +repealed. The extent of country to be garrisoned and the number of military +posts to be occupied is the same with a reduced Army as with a large one. +The number of staff officers required is more dependent upon the latter +than the former condition. +</p> + +<p> +The report of the Secretary of the Navy accompanying this shows the +condition of the Navy when this Administration came into office and the +changes made since. Strenuous efforts have been made to place as many +vessels "in commission," or render them fit for service if required, as +possible, and to substitute the sail for steam while cruising, thus +materially reducing the expenses of the Navy and adding greatly to its +efficiency. Looking to our future, I recommend a liberal, though not +extravagant, policy toward this branch of the public service. +</p> + +<p> +The report of the Postmaster-General furnishes a clear and comprehensive +exhibit of the operations of the postal service and of the financial +condition of the Post-Office Department. The ordinary postal revenues for +the year ending the 30th of June, 1869, amounted to $18,344,510, and the +expenditures to $23,698,131, showing an excess of expenditures over +receipts of $5,353,620. The excess of expenditures over receipts for the +previous year amounted to $6,437,992. The increase of revenues for 1869 +over those of 1868 was $2,051,909, and the increase of expenditures was +$967,538. The increased revenue in 1869 exceeded the increased revenue in +1868 by $996,336, and the increased expenditure in 1869 was $2,527,570 less +than the increased expenditure in 1868, showing by comparison this +gratifying feature of improvement, that while the increase of expenditures +over the increase of receipts in 1868 was $2,439,535, the increase of +receipts over the increase of expenditures in 1869 was $1,084,371. +</p> + +<p> +Your attention is respectfully called to the recommendations made by the +Postmaster-General for authority to change the rate of compensation to the +main trunk railroad lines for their services in carrying the mails; for +having post-route maps executed; for reorganizing and increasing the +efficiency of the special-agency service; for increase of the mail service +on the Pacific, and for establishing mail service, under the flag of the +Union, on the Atlantic; and most especially do I call your attention to his +recommendation for the total abolition of the franking privilege. This is +an abuse from which no one receives a commensurate advantage; it reduces +the receipts for postal service from 25 to 30 per cent and largely +increases the service to be performed. The method by which postage should +be paid upon public matter is set forth fully in the report of the +Postmaster-General. +</p> + +<p> +The report of the Secretary of the Interior shows that the quantity of +public lands disposed of during the year ending the 30th of June, 1869, was +7,666,152 acres, exceeding that of the preceding year by 1,010,409 acres. +Of this amount 2,899,544 acres were sold for cash and 2,737,365 acres +entered under the homestead laws. The remainder was granted to aid in the +construction of works of internal improvement, approved to the States as +swamp land, and located with warrants and scrip. The cash receipts from all +sources were $4,472,886, exceeding those of the preceding year $2,840,140. +</p> + +<p> +During the last fiscal year 23,196 names were added to the pension rolls +and 4,876 dropped therefrom, leaving at its close 187,963. The amount paid +to pensioners, including the compensation of disbursing agents, was +$28,422,884, an increase of $4,411,902 on that of the previous year. The +munificence of Congress has been conspicuously manifested in its +legislation for the soldiers and sailors who suffered in the recent +struggle to maintain "that unity of government which makes us one people." +The additions to the pension rolls of each successive year since the +conclusion of hostilities result in a great degree from the repeated +amendments of the act of the 14th of July, 1862, which extended its +provisions to cases not falling within its original scope. The large outlay +which is thus occasioned is further increased by the more liberal allowance +bestowed since that date upon those who in the line of duty were wholly or +permanently disabled. Public opinion has given an emphatic sanction to +these measures of Congress, and it will be conceded that no part of our +public burden is more cheerfully borne than that which is imposed by this +branch of the service. It necessitates for the next fiscal year, in +addition to the amount justly chargeable to the naval pension fund, an +appropriation of $30,000,000. +</p> + +<p> +During the year ending the 30th of September, 1869, the Patent Office +issued 13,762 patents, and its receipts were $686,389, being $213,926 more +than the expenditures. +</p> + +<p> +Messages and Papers of the Presidents, Ulysses S. Grant, vol. 6, p.3995 +</p> + +<p> +I would respectfully call your attention to the recommendation of the +Secretary of the Interior for uniting the duties of supervising the +education of freedmen with the other duties devolving upon the Commissioner +of Education. +</p> + +<p> +If it is the desire of Congress to make the census which must be taken +during the year 1870 more complete and perfect than heretofore, I would +suggest early action upon any plan that may be agreed upon. As Congress at +the last session appointed a committee to take into consideration such +measures as might be deemed proper in reference to the census and report a +plan, I desist from saying more. +</p> + +<p> +I recommend to your favorable consideration the claims of the Agricultural +Bureau for liberal appropriations. In a country so diversified in climate +and soil as ours, and with a population so largely dependent upon +agriculture, the benefits that can be conferred by properly fostering this +Bureau are incalculable. +</p> + +<p> +I desire respectfully to call the attention of Congress to the inadequate +salaries of a number of the most important offices of the Government. In +this message I will not enumerate them, but will specify only the justices +of the Supreme Court. No change has been made in their salaries for fifteen +years. Within that time the labors of the court have largely increased and +the expenses of living have at least doubled. During the same time Congress +has twice found it necessary to increase largely the compensation of its +own members, and the duty which it owes to another department of the +Government deserves, and will undoubtedly receive, its due consideration. +</p> + +<p> +There are many subjects not alluded to in this message which might with +propriety be introduced, but I abstain, believing that your patriotism and +statesmanship will suggest the topics and the legislation most conducive to +the interests of the whole people. On my part I promise a rigid adherence +to the laws and their strict enforcement. +</p> + +<p class="noindent"> +U. S. GRANT +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1870"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 5, 1870<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +A year of peace and general prosperity to this nation has passed since the +last assembling of Congress. We have, through a kind Providence, been +blessed with abundant crops, and have been spared from complications and +war with foreign nations. In our midst comparative harmony has been +restored. It is to be regretted, however, that a free exercise of the +elective franchise has by violence and intimidation been denied to citizens +in exceptional cases in several of the States lately in rebellion, and the +verdict of the people has thereby been reversed. The States of Virginia, +Mississippi, and Texas have been restored to representation in our national +councils. Georgia, the only State now without representation, may +confidently be expected to take her place there also at the beginning of +the new year, and then, let us hope, will be completed the work of +reconstruction. With an acquiescence on the part of the whole people in the +national obligation to pay the public debt created as the price of our +Union, the pensions to our disabled soldiers and sailors and their widows +and orphans, and in the changes to the Constitution which have been made +necessary by a great rebellion, there is no reason why we should not +advance in material prosperity and happiness as no other nation ever did +after so protracted and devastating a war. +</p> + +<p> +Soon after the existing war broke out in Europe the protection of the +United States minister in Paris was invoked in favor of North Germans +domiciled in French territory. Instructions were issued to grant the +protection. This has been followed by an extension of American protection +to citizens of Saxony, Hesse and Saxe-Coburg, Gotha, Colombia, Portugal, +Uruguay, the Dominican Republic, Ecuador, Chile, Paraguay, and Venezuela in +Paris. The charge was an onerous one, requiring constant and severe labor, +as well as the exercise of patience, prudence, and good judgment. It has +been performed to the entire satisfaction of this Government, and, as I am +officially informed, equally so to the satisfaction of the Government of +North Germany. +</p> + +<p> +As soon as I learned that a republic had been proclaimed at Paris and that +the people of France had acquiesced in the change, the minister of the +United States was directed by telegraph to recognize it and to tender my +congratulations and those of the people of the United States. The +reestablishment in France of a system of government disconnected with the +dynastic traditions of Europe appeared to be a proper subject for the +felicitations of Americans. Should the present struggle result in attaching +the hearts of the French to our simpler forms of representative government, +it will be a subject of still further satisfaction to our people. While we +make no effort to impose our institutions upon the inhabitants of other +countries, and while we adhere to our traditional neutrality in civil +contests elsewhere, we can not be indifferent to the spread of American +political ideas in a great and highly civilized country like France. +</p> + +<p> +We were asked by the new Government to use our good offices, jointly with +those of European powers, in the interests of peace. Answer was made that +the established policy and the true interests of the United States forbade +them to interfere in European questions jointly with European powers. I +ascertained, informally and unofficially, that the Government of North +Germany was not then disposed to listen to such representations from any +power, and though earnestly wishing to see the blessings of peace restored +to the belligerents, with all of whom the United States are on terms of +friendship, I declined on the part of this Government to take a step which +could only result in injury to our true interests without advancing the +object for which our intervention was invoked. Should the time come when +the action of the United States can hasten the return of peace by a single +hour, that action will be heartily taken. I deemed it prudent, in view of +the number of persons of German and French birth living in the United +States, to issue, soon after official notice of a state of war had been +received from both belligerents, a proclamation defining the duties of the +United States as a neutral and the obligations of persons residing within +their territory to observe their laws and the laws of nations. This +proclamation was followed by others, as circumstances seemed to call for +them. The people, thus acquainted in advance of their duties and +obligations, have assisted in preventing violations of the neutrality of +the United States. +</p> + +<p> +It is not understood that the condition of the insurrection in Cuba has +materially changed since the close of the last session of Congress. In an +early stage of the contest the authorities of Spain inaugurated a system of +arbitrary arrests, of close confinement, and of military trial and +execution of persons suspected of complicity with the insurgents, and of +summary embargo of their properties, and sequestration of their revenues by +executive warrant. Such proceedings, so far as they affected the persons or +property of citizens of the United States, were in violation of the +provisions of the treaty of 1795 between the United States and Spain. +</p> + +<p> +Representations of injuries resulting to several persons claiming to be +citizens of the United States by reason of such violations were made to the +Spanish Government. From April, 1869, to June last the Spanish minister at +Washington had been clothed with a limited power to aid in redressing such +wrongs. That power was found to be withdrawn, "in view," as it was said, +"of the favorable situation in which the island of Cuba" then "was," which, +however, did not lead to a revocation or suspension of the extraordinary +and arbitrary functions exercised by the executive power in Cuba, and we +were obliged to make our complaints at Madrid. In the negotiations thus +opened, and still pending there, the United States only claimed that for +the future the rights secured to their citizens by treaty should be +respected in Cuba, and that as to the past a joint tribunal should be +established in the United States with full jurisdiction over all such +claims. Before such an impartial tribunal each claimant would be required +to prove his case. On the other hand, Spain would be at liberty to traverse +every material fact, and thus complete equity would be done. A case which +at one time threatened seriously to affect the relations between the United +States and Spain has already been disposed of in this way. The claim of the +owners of the Colonel Lloyd Aspinwall for the illegal seizure and detention +of that vessel was referred to arbitration by mutual consent, and has +resulted in an award to the United States, for the owners, of the sum of +$19,702.50 in gold. Another and long-pending claim of like nature, that of +the whaleship Canada, has been disposed of by friendly arbitrament during +the present year. It was referred, by the joint consent of Brazil and the +United States, to the decision of Sir Edward Thornton, Her Britannic +Majesty's minister at Washington, who kindly undertook the laborious task +of examining the voluminous mass of correspondence and testimony submitted +by the two Governments, and awarded to the United States the sum of +$100,740.09 in gold, which has since been paid by the Imperial Government. +These recent examples show that the mode which the United States have +proposed to Spain for adjusting the pending claims is just and feasible, +and that it may be agreed to by either nation without dishonor. It is to be +hoped that this moderate demand may be acceded to by Spain without further +delay. Should the pending negotiations, unfortunately and unexpectedly, be +without result, it will then become my duty to communicate that fact to +Congress and invite its action on the subject. +</p> + +<p> +The long-deferred peace conference between Spain and the allied South +American Republics has been inaugurated in Washington under the auspices of +the United States. Pursuant to the recommendation contained in the +resolution of the House of Representatives of the 17th of December, 1866, +the executive department of the Government offered its friendly offices for +the promotion of peace and harmony between Spain and the allied Republics. +Hesitations and obstacles occurred to the acceptance of the offer. +Ultimately, however, a conference was arranged, and was opened in this city +on the 29th of October last, at which I authorized the Secretary of State +to preside. It was attended by the ministers of Spain, Peru, Chile, and +Ecuador. In consequence of the absence of a representative from Bolivia, +the conference was adjourned until the attendance of a plenipotentiary from +that Republic could be secured or other measures could be adopted toward +compassing its objects. +</p> + +<p> +The allied and other Republics of Spanish origin on this continent may see +in this fact a new proof of our sincere interest in their welfare, of our +desire to see them blessed with good governments, capable of maintaining +order and of preserving their respective territorial integrity, and of our +sincere wish to extend our own commercial and social relations with them. +The time is not probably far distant when, in the natural course of events, +the European political connection with this continent will cease. Our +policy should be shaped, in view of this probability, so as to ally the +commercial interests of the Spanish American States more closely to our +own, and thus give the United States all the preeminence and all the +advantage which Mr. Monroe, Mr. Adams, and Mr. Clay contemplated when they +proposed to join in the congress of Panama. +</p> + +<p> +During the last session of Congress a treaty for the annexation of the +Republic of San Domingo to the United States failed to receive the +requisite two-thirds vote of the Senate. I was thoroughly convinced then +that the best interests of this country, commercially and materially, +demanded its ratification. Time has only confirmed me in this view. I now +firmly believe that the moment it is known that the United States have +entirely abandoned the project of accepting as a part of its territory the +island of San Domingo a free port will be negotiated for by European +nations in the Bay of Samana. A large commercial city will spring up, to +which we will be tributary without receiving corresponding benefits, and +then will be seen the folly of our rejecting so great a prize. The +Government of San Domingo has voluntarily sought this annexation. It is a +weak power, numbering probably less than 120,000 souls, and yet possessing +one of the richest territories under the sun, capable of supporting a +population of 10,000,000 people in luxury. The people of San Domingo are +not capable of maintaining themselves in their present condition, and must +look for outside support. They yearn for the protection of our free +institutions and laws, our progress and civilization. Shall we refuse +them? +</p> + +<p> +The acquisition of San Domingo is desirable because of its geographical +position. It commands the entrance to the Caribbean Sea and the Isthmus +transit of commerce. It possesses the richest soil, best and most capacious +harbors, most salubrious climate, and the most valuable products of the +forests, mine, and soil of any of the West India Islands. Its possession by +us will in a few years build up a coastwise commerce of immense magnitude, +which will go far toward restoring to us our lost merchant marine. It will +give to us those articles which we consume so largely and do not produce, +thus equalizing our exports and imports. In case of foreign war it will +give us command of all the islands referred to, and thus prevent an enemy +from ever again possessing himself of rendezvous upon our very coast. At +present our coast trade between the States bordering on the Atlantic and +those bordering on the Gulf of Mexico is cut into by the Bahamas and the +Antilies. Twice we must, as it were, pass through foreign countries to get +by sea from Georgia to the west coast of Florida. +</p> + +<p> +San Domingo, with a stable government, under which her immense resources +can be developed, will give remunerative wages to tens of thousands of +laborers not now upon the island. This labor will take advantage of every +available means of transportation to abandon the adjacent islands and seek +the blessings of freedom and its sequence--each inhabitant receiving the +reward of his own labor. Porto Rico and Cuba will have to abolish slavery, +as a measure of self-preservation, to retain their laborers. +</p> + +<p> +San Domingo will become a large consumer of the products of Northern farms +and manufactories. The cheap rate at which her citizens can be furnished +with food, tools, and machinery will make it necessary that contiguous +islands should have the same advantages in order to compete in the +production of sugar, coffee, tobacco, tropical fruits, etc. This will open +to us a still wider market for our products. The production of our own +supply of these articles will cut off more than one hundred millions of our +annual imports, besides largely increasing our exports. With such a picture +it is easy to see how our large debt abroad is ultimately to be +extinguished. With a balance of trade against us (including interest on +bonds held by foreigners and money spent by our citizens traveling in +foreign lands) equal to the entire yield of the precious metals in this +country, it is not so easy to see how this result is to be otherwise +accomplished. +</p> + +<p> +The acquisition of San Domingo is an adherence to the "Monroe doctrine;" it +is a measure of national protection; it is asserting our just claim to a +controlling influence over the great commercial traffic soon to flow from +west to east by way of the Isthmus of Darien; it is to build up our +merchant marine; it is to furnish new markets for the products of our +farms, shops, and manufactories; it is to make slavery insupportable in +Cuba and Porto Rico at once, and ultimately so in Brazil; it is to settle +the unhappy condition of Cuba and end an exterminating conflict; it is to +provide honest means of paying our honest debts without overtaxing the +people; it is to furnish our citizens with the necessaries of everyday life +at cheaper rates than ever before; and it is, in fine, a rapid stride +toward that greatness which the intelligence, industry, and enterprise of +the citizens of the United States entitle this country to assume among +nations. +</p> + +<p> +In view of the importance of this question, I earnestly urge upon Congress +early action expressive of its views as to the best means of acquiring San +Domingo. My suggestion is that by joint resolution of the two Houses of +Congress the Executive be authorized to appoint a commission to negotiate a +treaty with the authorities of San Domingo for the acquisition of that +island, and that an appropriation be made to defray the expenses of such a +commission. The question may then be determined, either by the action of +the Senate upon the treaty or the joint action of the two Houses of +Congress upon a resolution of annexation, as in the case of the acquisition +of Texas. So convinced am I of the advantages to flow from the acquisition +of San Domingo, and of the great disadvantages--I might almost say +calamities--to flow from nonacquisition, that I believe the subject has +only to be investigated to be approved. +</p> + +<p> +It is to be regretted that our representations in regard to the injurious +effects, especially upon the revenue of the United States, of the policy of +the Mexican Government in exempting from impost duties a large tract of its +territory on our borders have not only been fruitless, but that it is even +proposed in that country to extend the limits within which the privilege +adverted to has hitherto been enjoyed. The expediency of taking into your +serious consideration proper measures for countervailing the policy +referred to will, it is presumed, engage your earnest attention. +</p> + +<p> +It is the obvious interest, especially of neighboring nations, to provide +against impunity to those who may have committed high crimes within their +borders and who may have sought refuge abroad. For this purpose extradition +treaties have been concluded with several of the Central American +Republics, and others are in progress. +</p> + +<p> +The sense of Congress is desired, as early as may be convenient, upon the +proceedings of the commission on claims against Venezuela, as communicated +in my messages of March 16, 1869, March 1, 1870, and March 31, 1870. It has +not been deemed advisable to distribute any of the money which has been +received from that Government until Congress shall have acted on the +subject. +</p> + +<p> +The massacres of French and Russian residents at Tien-Tsin, under +circumstances of great barbarity, was supposed by some to have been +premeditated, and to indicate a purpose among the populace to exterminate +foreigners in the Chinese Empire. The evidence fails to establish such a +supposition, but shows a complicity between the local authorities and the +mob. The Government at Peking, however, seems to have been disposed to +fulfill its treaty obligations so far as it was able to do so. +Unfortunately, the news of the war between the German States and France +reached China soon after the massacre. It would appear that the popular +mind became possessed with the idea that this contest, extending to Chinese +waters, would neutralize the Christian influence and power, and that the +time was coming when the superstitious masses might expel all foreigners +and restore mandarin influence. Anticipating trouble from this cause, I +invited France and North Germany to make an authorized suspension of +hostilities in the East (where they were temporarily suspended by act of +the commanders), and to act together for the future protection in China of +the lives and properties of Americans and Europeans. +</p> + +<p> +Since the adjournment of Congress the ratifications of the treaty with +Great Britain for abolishing the mixed courts for the suppression of the +slave trade have been exchanged. It is believed that the slave trade is now +confined to the eastern coast of Africa, whence the slaves are taken to +Arabian markets. +</p> + +<p> +The ratifications of the naturalization convention between Great Britain +and the United States have also been exchanged during the recess, and thus +a long-standing dispute between the two Governments has been settled in +accordance with the principles always contended for by the United States. +</p> + +<p> +In April last, while engaged in locating a military reservation near +Pembina, a corps of engineers discovered that the commonly received +boundary line between the United States and the British possessions at that +place is about 4,700 feet south of the true position of the forty-ninth +parallel, and that the line, when run on what is now supposed to be the +true position of that parallel, would leave the fort of the Hudsons Bay +Company at Pembina within the territory of the United States. This +information being communicated to the British Government, I was requested +to consent, and did consent, that the British occupation of the fort of the +Hudsons Bay Company should continue for the present. I deem it important, +however, that this part of the boundary line should be definitely fixed by +a joint commission of the two Governments, and I submit herewith estimates +of the expense of such a commission on the part of the United States and +recommend that an appropriation be made for that purpose. The land boundary +has already been fixed and marked from the summit of the Rocky Mountains to +the Georgian Bay. It should now be in like manner marked from the Lake of +the Woods to the summit of the Rocky Mountains. +</p> + +<p> +I regret to say that no conclusion has been reached for the adjustment of +the claims against Great Britain growing out of the course adopted by that +Government during the rebellion. The cabinet of London, so far as its views +have been expressed, does not appear to be willing to concede that Her +Majesty's Government was guilty of any negligence, or did or permitted any +act during the war by which the United States has just cause of complaint. +Our firm and unalterable convictions are directly the reverse. I therefore +recommend to Congress to authorize the appointment of a commission to take +proof of the amount and the ownership of these several claims, on notice to +the representative of Her Majesty at Washington, and that authority be +given for the settlement of these claims by the United States, so that the +Government shall have the ownership of the private claims, as well as the +responsible control of all the demands against Great Britain. It can not be +necessary to add that whenever Her Majesty's Government shall entertain a +desire for a full and friendly adjustment of these claims the United States +will enter upon their consideration with an earnest desire for a conclusion +consistent with the honor and dignity of both nations. +</p> + +<p> +The course pursued by the Canadian authorities toward the fishermen of the +United States during the past season has not been marked by a friendly +feeling. By the first article of the convention of 1818 between Great +Britain and the United States it was agreed that the inhabitants of the +United States should have forever, in common with British subjects, the +right of taking fish in certain waters therein defined. In the waters not +included in the limits named in the convention (within 3 miles of parts of +the British coast) it has been the custom for many years to give to +intruding fishermen of the United States a reasonable warning of their +violation of the technical rights of Great Britain. The Imperial Government +is understood to have delegated the whole or a share of its jurisdiction or +control of these inshore fishing grounds to the colonial authority known as +the Dominion of Canada, and this semi-independent but irresponsible agent +has exercised its delegated powers in an unfriendly way. Vessels have been +seized without notice or warning, in violation of the custom previously +prevailing, and have been taken into the colonial ports, their voyages +broken up, and the vessels condemned. There is reason to believe that this +unfriendly and vexatious treatment was designed to bear harshly upon the +hardy fishermen of the United States, with a view to political effect upon +this Government. The statutes of the Dominion of Canada assume a still +broader and more untenable jurisdiction over the vessels of the United +States. They authorize officers or persons to bring vessels hovering within +3 marine miles of any of the coasts, bays, creeks, or harbors of Canada +into port, to search the cargo, to examine the master on oath touching the +cargo and voyage, and to inflict upon him a heavy pecuniary penalty if true +answers are not given; and if such a vessel is found "preparing to fish" +within 3 marine miles of any of such coasts, bays, creeks, or harbors +without a license, or after the expiration of the period named in the last +license granted to it, they provide that the vessel, with her tackle, etc., +shall be forfeited. It is not known that any condemnations have been made +under this statute. Should the authorities of Canada attempt to enforce it, +it will become my duty to take such steps as may be necessary to protect +the rights of the citizens of the United States. +</p> + +<p> +It has been claimed by Her Majesty's officers that the fishing vessels of +the United States have no right to enter the open ports of the British +possessions in North America, except for the purposes of shelter and +repairing damages, of purchasing wood and obtaining water; that they have +no right to enter at the British custom-houses or to trade there except in +the purchase of wood and water, and that they must depart within +twenty-four hours after notice to leave. It is not known that any seizure +of a fishing vessel carrying the flag of the United States has been made +under this claim. So far as the claim is founded on an alleged construction +of he convention of 1818, it can not be acquiesced in by the United States. +It is hoped that it will not be insisted on by Her Majesty's Government. +</p> + +<p> +During the conferences which preceded the negotiation of the convention of +1818 the British commissioners proposed to expressly exclude the fishermen +of the United States from "the privilege of carrying on trade with any of +His Britannic Majesty's subjects residing within the limits assigned for +their use;" and also that it should not be "lawful for the vessels of the +United States engaged in said fishery to have on board any goods, wares, or +merchandise whatever, except such as may be necessary for the prosecution +of their voyages to and from the said fishing grounds: and any vessel of +the United States which shall contravene this regulation may be seized, +condemned, and confiscated, with her cargo." +</p> + +<p> +This proposition, which is identical with the construction now put upon the +language of the convention, was emphatically rejected by the American +commissioners, and thereupon was abandoned by the British +plenipotentiaries, and Article I, as it stands in the convention, was +substituted. +</p> + +<p> +If, however, it be said that this claim is founded on provincial or +colonial statutes, and not upon the convention, this Government can not but +regard them as unfriendly, and in contravention of the spirit, if not of +the letter, of the treaty, for the faithful execution of which the Imperial +Government is alone responsible. +</p> + +<p> +Anticipating that an attempt may possibly be made by the Canadian +authorities in the coming season to repeat their unneighborly acts toward +our fishermen, I recommend you to confer upon the Executive the power to +suspend by proclamation the operation of the laws authorizing the transit +of goods, wares, and merchandise in bond across the territory of the United +States to Canada, and, further, should such an extreme measure become +necessary, to suspend the operation of any laws whereby the vessels of the +Dominion of Canada are permitted to enter the waters of the United States. +</p> + +<p> +A like unfriendly disposition has been manifested on the part of Canada in +the maintenance of a claim of right to exclude the citizens of the United +States from the navigation of the St. Lawrence. This river constitutes a +natural outlet to the ocean for eight States, with an aggregate population +of about 17,600,000 inhabitants, and with an aggregate tonnage of 661,367 +tons upon the waters which discharge into it. The foreign commerce of our +ports on these waters is open to British competition, and the major part of +it is done in British bottoms. +</p> + +<p> +If the American seamen be excluded from this natural avenue to the ocean, +the monopoly of the direct commerce of the lake ports with the Atlantic +would be in foreign hands, their vessels on transatlantic voyages having an +access to our lake ports which would be denied to American vessels on +similar voyages. To state such a proposition is to refute its justice. +</p> + +<p> +During the Administration of Mr. John Quincy Adams Mr. Clay unanswerably +demonstrated the natural right of the citizens of the United States to the +navigation of this river, claiming that the act of the congress of Vienna +in opening the Rhine and other rivers to all nations showed the judgment of +European jurists and statesmen that the inhabitants of a country through +which a navigable river passes have a natural right to enjoy the navigation +of that river to and into the sea, even though passing through the +territories of another power. This right does not exclude the coequal right +of the sovereign possessing the territory through which the river debouches +into the sea to make such regulations relative to the police of the +navigation as may be reasonably necessary; but those regulations should be +framed in a liberal spirit of comity, and should not impose needless +burdens upon the commerce which has the right of transit. It has been found +in practice more advantageous to arrange these regulations by mutual +agreement. The United States are ready to make any reasonable arrangement +as to the police of the St. Lawrence which may be suggested by Great +Britain. +</p> + +<p> +If the claim made by Mr. Clay was just when the population of States +bordering on the shores of the Lakes was only 3,400,000, it now derives +greater force and equity from the increased population, wealth, production, +and tonnage of the States on the Canadian frontier. Since Mr. Clay advanced +his argument in behalf of our right the principle for which he contended +has been frequently, and by various nations, recognized by law or by +treaty, and has been extended to several other great rivers. By the treaty +concluded at Mayence in 1831 the Rhine was declared free from the point +where it is first navigable into the sea. By the convention between Spain +and Portugal concluded in 1835 the navigation of the Douro throughout its +whole extent was made free for the subjects of both Crowns. In 1853 the +Argentine Confederation by treaty threw open the free navigation of the +Parana and the Uruguay to the merchant vessels of all nations. In 1856 the +Crimean War was closed by a treaty which provided for the free navigation +of the Danube. In 1858 Bolivia by treaty declared that it regarded the +rivers Amazon and La Plata, in accordance with fixed principles of national +law, as highways or channels opened by nature for the commerce of all +nations. In 1859 the Paraguay was made free by treaty, and in December, +1866, the Emperor of Brazil by imperial decree declared the Amazon to be +open to the frontier of Brazil to the merchant ships of all nations. The +greatest living British authority on this subject, while asserting the +abstract right of the British claim, says: It seems difficult to deny that +Great Britain may ground her refusal upon strict law, but it is equally +difficult to deny, first, that in so doing she exercises harshly an extreme +and hard law; secondly, that her conduct with respect to the navigation of +the St. Lawrence is in glaring and discreditable inconsistency with her +conduct with respect to the navigation of the Mississippi. On the ground +that she possessed a small domain in which the Mississippi took its rise, +she insisted on the right to navigate the entire volume of its waters. On +the ground that she possesses both banks of the St. Lawrence, where it +disembogues itself into the sea, she denies to the United States the right +of navigation, though about one-half of the waters of Lakes Ontario. Erie, +Huron, and Superior, and the whole of Lake Michigan, through which the +river flows, are the property of the United States. The whole nation is +interested in securing cheap transportation from the agricultural States of +the West to the Atlantic Seaboard. To the citizens of those States it +secures a greater return for their labor; to the inhabitants of the +seaboard it affords cheaper food; to the nation, an increase in the annual +surplus of wealth. It is hoped that the Government of Great Britain will +see the justice of abandoning the narrow and inconsistent claim to which +her Canadian Provinces have urged her adherence. +</p> + +<p> +Our depressed commerce is a subject to which I called your special +attention at the last session, and suggested that we will in the future +have to look more to the countries south of us, and to China and Japan, for +its revival. Our representatives to all these Governments have exerted +their influence to encourage trade between the United States and the +countries to which they are accredited. But the fact exists that the +carrying is done almost entirely in foreign bottoms, and while this state +of affairs exists we can not control our due share of the commerce of the +world; that between the Pacific States and China and Japan is about all the +carrying trade now conducted in American vessels. I would recommend a +liberal policy toward that line of American steamers--one that will insure +its success, and even increased usefulness. +</p> + +<p> +The cost of building iron vessels, the only ones that can compete with +foreign ships in the carrying trade, is so much greater in the United +States than in foreign countries that without some assistance from the +Government they can not be successfully built here. There will be several +propositions laid before Congress in the course of the present session +looking to a remedy for this evil. Even if it should be at some cost to the +National Treasury, I hope such encouragement will be given as will secure +American shipping on the high seas and American shipbuilding at home. +</p> + +<p> +The condition of the archives at the Department of State calls for the +early action of Congress. The building now rented by that Department is a +frail structure, at an inconvenient distance from the Executive Mansion and +from the other Departments, is ill adapted to the purpose for which it is +used, has not capacity to accommodate the archives, and is not fireproof. +Its remote situation, its slender construction, and the absence of a supply +of water in the neighborhood leave but little hope of safety for either the +building or its contents in case of the accident of a fire. Its destruction +would involve the loss of the rolls containing the original acts and +resolutions of Congress, of the historic records of the Revolution and of +the Confederation, of the whole series of diplomatic and consular archives +since the adoption of the Constitution, and of the many other valuable +records and papers left with that Department when it was the principal +depository of the governmental archives. I recommend an appropriation for +the construction of a building for the Department of State. +</p> + +<p> +I recommend to your consideration the propriety of transferring to the +Department of the Interior, to which they seem more appropriately to +belong, all powers and duties in relation to the Territories with which the +Department of State is now charged by law or usage; and from the Interior +Department to the War Department the Pension Bureau, so far as it regulates +the payment of soldiers' pensions. I would further recommend that the +payment of naval pensions be transferred to one of the bureaus of the Navy +Department. +</p> + +<p> +The estimates for the expenses of the Government for the next fiscal year +are $18,244,346.01 less than for the current one, but exceed the +appropriations for the present year for the same items $8,972,127.56. In +this estimate, however, is included $22,338,278.37 for public works +heretofore begun under Congressional provision, and of which only so much +is asked as Congress may choose to give. The appropriation for the same +works for the present fiscal year was $11,984,518.08. +</p> + +<p> +The average value of gold, as compared with national currency, for the +whole of the year 1869 was about 134, and for eleven months of 1870 the +same relative value has been about 115. The approach to a specie basis is +very gratifying, but the fact can not be denied that the instability of the +value of our currency is prejudicial to our prosperity, and tends to keep +up prices, to the detriment of trade. The evils of a depreciated and +fluctuating currency are so great that now, when the premium on gold has +fallen so much, it would seem that the time has arrived when by wise and +prudent legislation Congress should look to a policy which would place our +currency at par with gold at no distant day. +</p> + +<p> +The tax collected from the people has been reduced more than $80,000,000 +per annum. By steadiness in our present course there is no reason why in a +few short years the national tax gatherer may not disappear from the door +of the citizen almost entirely. With the revenue stamp dispensed by +postmasters in every community, a tax upon liquors of all sorts and tobacco +in all its forms, and by a wise adjustment of the tariff, which will put a +duty only upon those articles which we could dispense with, known as +luxuries, and on those which we use more of than we produce, revenue enough +may be raised after a few years of peace and consequent reduction of +indebtedness to fulfill all our obligations. A further reduction of +expenses, in addition to a reduction of interest account, may be relied on +to make this practicable. Revenue reform, if it means this, has my hearty +support. If it implies a collection of all the revenue for the support of +the Government, for the payment of principal and interest of the public +debt, pensions, etc., by directly taxing the people, then I am against +revenue reform, and confidently believe the people are with me. If it means +failure to provide the necessary means to defray all the expenses of +Government, and thereby repudiation of the public debt and pensions, then I +am still more opposed to such kind of revenue reform. Revenue reform has +not been defined by any of its advocates to my knowledge, but seems to be +accepted as something which is to supply every man's wants without any cost +or effort on his part. +</p> + +<p> +A true revenue reform can not be made in a day, but must be the work of +national legislation and of time. As soon as the revenue can be dispensed +with, all duty should be removed from coffee, tea and other articles of +universal use not produced by ourselves. The necessities of the country +compel us to collect revenue from our imports. An army of assessors and +collectors is not a pleasant sight to the citizen, but that of a tariff for +revenue is necessary. Such a tariff, so far as it acts as an encouragement +to home production, affords employment to labor at living wages, in +contrast to the pauper labor of the Old World, and also in the development +of home resources. +</p> + +<p> +Under the act of Congress of the 15th day of July, 1870, the Army has +gradually been reduced, so that on the 1st day of January, 1871, the number +of commissioned officers and men will not exceed the number contemplated by +that law. +</p> + +<p> +The War Department building is an old structure, not fireproof, and +entirely inadequate in dimensions to our present wants. Many thousands of +dollars are now paid annually for rent of private buildings to accommodate +the various bureaus of the Department. I recommend an appropriation for a +new War Department building, suited to the present and growing wants of the +nation. +</p> + +<p> +The report of the Secretary of War shows a very satisfactory reduction in +the expenses of the Army for the last fiscal year. For details you are +referred to his accompanying report. +</p> + +<p> +The expenses of the Navy for the whole of the last year--i.e., from +December 1, 1869, the date of the last report--are less than $19,000,000, +or about $1,000,000 less than they were the previous year. The expenses +since the commencement of this fiscal year--i.e., since July 1--show for +the five months a decrease of over $2,400,000 from those of the +corresponding months last year. The estimates for the current year were +$28,205,671.37. Those for next year are $20,683,317, with $955,100 +additional for necessary permanent improvements. These estimates are made +closely for the mere maintenance of the naval establishment as now is, +without much in the nature of permanent improvement. The appropriations +made for the last and current years were evidently intended by Congress, +and are sufficient only, to keep the Navy on its present footing by the +repairing and refitting of our old ships. +</p> + +<p> +This policy must, of course, gradually but surely destroy the Navy, and it +is in itself far from economical, as each year that it is pursued the +necessity for mere repairs in ships and navy-yards becomes more imperative +and more costly, and our current expenses are annually increased for the +mere repair of ships, many of which must soon become unsafe and useless. I +hope during the present session of Congress to be able to submit to it a +plan by which naval vessels can be built and repairs made with great saving +upon the present cost. +</p> + +<p> +It can hardly be wise statesmanship in a Government which represents a +country with over 5,000 miles of coast line on both oceans, exclusive of +Alaska, and containing 40,000,000 progressive people, with relations of +every nature with almost every foreign country, to rest with such +inadequate means of enforcing any foreign policy, either of protection or +redress. Separated by the ocean from the nations of the Eastern Continent, +our Navy is our only means of direct protection to our citizens abroad or +for the enforcement of any foreign policy. +</p> + +<p> +The accompanying report of the Postmaster-General shows a most satisfactory +working of that Department. With the adoption of the recommendations +contained therein, particularly those relating to a reform in the franking +privilege and the adoption of the "correspondence cards," a self-sustaining +postal system may speedily be looked for, and at no distant day a further +reduction of the rate of postage be attained. +</p> + +<p> +I recommend authorization by Congress to the Postmaster-General and +Attorney-General to issue all commissions to officials appointed through +their respective Departments. At present these commissions, where +appointments are Presidential, are issued by the State Department. The law +in all the Departments of Government, except those of the Post-Office and +of Justice, authorizes each to issue its own commissions. +</p> + +<p> +Always favoring practical reforms, I respectfully call your attention to +one abuse of long standing which I would like to see remedied by this +Congress. It is a reform in the civil service of the country. I would have +it go beyond the mere fixing of the tenure of office of clerks and +employees who do not require "the advice and consent of the Senate" to make +their appointments complete. I would have it govern, not the tenure, but +the manner of making all appointments. There is no duty which so much +embarrasses the Executive and heads of Departments as that of appointments, +nor is there any such arduous and thankless labor imposed on Senators and +Representatives as that of finding places for constituents. The present +system does not secure the best men, and often not even fit men, for public +place. The elevation and purification of the civil service of the +Government will be hailed with approval by the whole people of the United +States. +</p> + +<p> +Reform in the management of Indian affairs has received the special +attention of the Administration from its inauguration to the present day. +The experiment of making it a missionary work was tried with a few agencies +given to the denomination of Friends, and has been found to work most +advantageously. All agencies and superintendencies not so disposed of were +given to officers of the Army. The act of Congress reducing the Army +renders army officers ineligible for civil positions. Indian agencies being +civil offices, I determined to give all the agencies to such religious +denominations as had heretofore established missionaries among the Indians, +and perhaps to some other denominations who would undertake the work on the +same terms--i.e., as a missionary work. The societies selected are allowed +to name their own agents, subject to the approval of the Executive, and are +expected to watch over them and aid them as missionaries, to Christianize +and civilize the Indian, and to train him in the arts of peace. The +Government watches over the official acts of these agents, and requires of +them as strict an accountability as if they were appointed in any other +manner. I entertain the confident hope that the policy now pursued will in +a few years bring all the Indians upon reservations, where they will live +in houses, and have schoolhouses and churches, and will be pursuing +peaceful and self-sustaining avocations, and where they may be visited by +the law-abiding white man with the same impunity that he now visits the +civilized white settlements. I call your special attention to the report of +the Commissioner of Indian Affairs for full information on this subject. +</p> + +<p> +During the last fiscal year 8,095,413 acres of public land were disposed +of. Of this quantity 3,698,910.05 acres were taken under the homestead law +and 2,159,515.81 acres sold for cash. The remainder was located with +military warrants, college or Indian scrip, or applied in satisfaction of +grants to railroads or for other public uses. The entries under the +homestead law during the last year covered 961,545 acres more than those +during the preceding year. Surveys have been vigorously prosecuted to the +full extent of the means applicable to the purpose. The quantity of land in +market will amply supply the present demand. The claim of the settler under +the homestead or the preemption laws is not, however, limited to lands +subject to sale at private entry. Any unappropriated surveyed public land +may, to a limited amount, be acquired under the former laws if the party +entitled to enter under them will comply with the requirements they +prescribe in regard to the residence and cultivation. The actual settler's +preference right of purchase is even broader, and extends to lands which +were unsurveyed at the time of his settlement. His right was formerly +confined within much narrower limits, and at one period of our history was +conferred only by special statutes. They were enacted from time to time to +legalize what was then regarded as an unauthorized intrusion upon the +national domain. The opinion that the public lands should be regarded +chiefly as a source of revenue is no longer maintained. The rapid +settlement and successful cultivation of them are now justly considered of +more importance to our well-being than is the fund which the sale of them +would produce. The remarkable growth and prosperity of our new States and +Territories attest the wisdom of the legislation which invites the tiller +of the soil to secure a permanent home on terms within the reach of all. +The pioneer who incurs the dangers and privations of a frontier life, and +thus aids in laying the foundation of new commonwealths, renders a signal +service to his country, and is entitled to its special favor and +protection. These laws secure that object and largely promote the general +welfare. They should therefore be cherished as a permanent feature of our +land system. +</p> + +<p> +Good faith requires us to give full effect to existing grants. The +time-honored and beneficent policy of setting apart certain sections of +public land for educational purposes in the new States should be continued. +When ample provision shall have been made for these objects, I submit as a +question worthy of serious consideration whether the residue of our +national domain should not be wholly disposed of under the provisions the +homestead and preemption laws. +</p> + +<p> +In addition to the swamp and overflowed lands granted to the States in +which they are situated, the lands taken under the agricultural-college +acts and for internal-improvement purposes under the act of September, +1841, and the acts supplemental thereto, there had been conveyed up to the +close of the last fiscal year, by patent or other equivalent title, to +States and corporations 27,836,257.63 acres for railways, canals, and wagon +roads. It is estimated that an additional quantity of 174,735,523 acres is +still due under grants for like uses. The policy of thus aiding the States +in building works of internal improvement was inaugurated more than forty +years since in the grants to Indiana and Illinois, to aid those States in +opening canals to connect the waters of the Wabash with those of Lake Erie +and the waters of the Illinois with those of Lake Michigan. It was +followed, with some modifications, in the grant to Illinois of alternate +sections of public land within certain limits of the Illinois Central +Railway. Fourteen States and sundry corporations have received similar +subsidies in connection with railways completed or in process of +construction. As the reserved sections are rated at the double minimum, the +sale of them at the enhanced price has thus in many instances indemnified +the Treasury for the granted lands. The construction of some of these +thoroughfares has undoubtedly given a vigorous impulse to the development +of our resources and the settlement of the more distant portions of the +country. It may, however, be well insisted that much of our legislation in +this regard has been characterized by indiscriminate and profuse +liberality. The United States should not loan their credit in aid of any +enterprise undertaken by States or corporations, nor grant lands in any +instance, unless the projected work is of acknowledged national importance. +I am strongly inclined to the opinion that it is inexpedient and +unnecessary to bestow subsidies of either description; but should Congress +determine otherwise I earnestly recommend that the right of settlers and of +the public be more effectually secured and protected by appropriate +legislation. +</p> + +<p> +During the year ending September 30, 1870, there were filed in the Patent +Office 19,411 applications for patents, 3,374 caveats, and 160 applications +for the extension of patents. Thirteen thousand six hundred and twenty-two +patents, including reissues and designs, were issued, 1,010 extended, and +1,089 allowed, but not issued by reason of the nonpayment of the final +fees. The receipts of the office during the year were $136,304.29 in excess +of its expenditures. +</p> + +<p> +The work of the Census Bureau has been energetically prosecuted. The +preliminary report, containing much information of special value and +interest, will be ready for delivery during the present session. The +remaining volumes will be completed with all the dispatch consistent with +perfect accuracy in arranging and classifying the returns. We shall thus at +no distant day be furnished with an authentic record of our condition and +resources. It will, I doubt not, attest the growing prosperity of the +country, although during the decade which has just closed it was so +severely tried by the great war waged to maintain its integrity and to +secure and perpetuate our free institutions. +</p> + +<p> +During the last fiscal year the sum paid to pensioners, including the cost +of disbursement, was $27,780,811.11, and 1,758 bounty-land warrants were +issued. At its close 198,686 names were on the pension rolls. +</p> + +<p> +The labors of the Pension Office have been directed to the severe scrutiny +of the evidence submitted in favor of new claims and to the discovery of +fictitious claims which have been heretofore allowed. The appropriation for +the employment of special agents for the investigation of frauds has been +judiciously used, and the results obtained have been of unquestionable +benefit to the service. +</p> + +<p> +The subjects of education and agriculture are of great interest to the +success of our republican institutions, happiness, and grandeur as a +nation. In the interest of one a bureau has been established in the +Interior Department--the Bureau of Education; and in the interest of the +other, a separate Department, that of Agriculture. I believe great general +good is to flow from the operations of both these Bureaus if properly +fostered. I can not commend to your careful consideration too highly the +reports of the Commissioners of Education and of Agriculture, nor urge too +strongly such liberal legislation as to secure their efficiency. +</p> + +<p> +In conclusion I would sum up the policy of the Administration to be a +thorough enforcement of every law; a faithful collection of every tax +provided for; economy in the disbursement of the same; a prompt payment of +every debt of the nation; a reduction of taxes as rapidly as the +requirements of the country will admit; reductions of taxation and tariff, +to be so arranged as to afford the greatest relief to the greatest number; +honest and fair dealings with all other peoples, to the end that war, with +all its blighting consequences, may be avoided, but without surrendering +any right or obligation due to us; a reform in the treatment of Indians and +in the whole civil service of the country; and, finally, in securing a +pure, untrammeled ballot, where every man entitled to cast a vote may do +so, just once at each election, without fear of molestation or proscription +on account of his political faith, nativity, of color. +</p> + +<p class="noindent"> +U. S. GRANT +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1871"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 4, 1871<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +In addressing my third annual message to the law-making branch of the +Government it is gratifying to be able to state that during the past year +success has generally attended the effort to execute all laws found upon +the statute books. The policy has been not to inquire into the wisdom of +laws already enacted, but to learn their spirit and intent and to enforce +them accordingly. +</p> + +<p> +The past year has, under a wise Providence, been one of general prosperity +to the nation. It has, however, been attended with more than usual +chastisements in the loss of life and property by storm and fire. These +disasters have served to call forth the best elements of human nature in +our country and to develop a friendship for us on the part of foreign +nations which goes far toward alleviating the distresses occasioned by +these calamities. The benevolent, who have so generously shared their means +with the victims of these misfortunes, will reap their reward in the +consciousness of having performed a noble act and in receiving the grateful +thanks of men, women, and children whose sufferings they have relieved. +</p> + +<p> +The relations of the United States with foreign powers continue to be +friendly. The year has been an eventful one in witnessing two great +nations, speaking one language and having one lineage, settling by peaceful +arbitration disputes of long standing and liable at any time to bring those +nations into bloody and costly conflict. An example has thus been set +which, if successful in its final issue, may be followed by other civilized +nations, and finally be the means of returning to productive industry +millions of men now maintained to settle the disputes of nations by the +bayonet and the broadside. +</p> + +<p> +I transmit herewith a copy of the treaty alluded to, which has been +concluded since the adjournment of Congress with Her Britannic Majesty, and +a copy of the protocols of the conferences of the commissioners by whom it +was negotiated. This treaty provides methods for adjusting the questions +pending between the two nations. +</p> + +<p> +Various questions are to be adjusted by arbitration. I recommend Congress +at an early day to make the necessary provision for the tribunal at Geneva +and for the several commissioners on the part of the United States called +for by the treaty. +</p> + +<p> +His Majesty the King of Italy, the President of the Swiss Confederation, +and His Majesty the Emperor of Brazil have each consented, on the joint +request of the two powers, to name an arbiter for the tribunal at Geneva. I +have caused my thanks to be suitably expressed for the readiness with which +the joint request has been complied with, by the appointment of gentlemen +of eminence and learning to these important positions. +</p> + +<p> +His Majesty the Emperor of Germany has been pleased to comply with the +joint request of the two Governments, and has consented to act as the +arbitrator of the disputed water boundary between the United States and +Great Britain. +</p> + +<p> +The contracting parties in the treaty have undertaken to regard as between +themselves certain principles of public law, for which the United States +have contended from the commencement of their history. They have also +agreed to bring those principles to the knowledge of the other maritime +powers and to invite them to accede to them. Negotiations are going on as +to the form of the note by which the invitation is to be extended to the +other powers. +</p> + +<p> +I recommend the legislation necessary on the part of the United States to +bring into operation the articles of the treaty relating to the fisheries +and to the other matters touching the relations of the United States toward +the British North American possessions, to become operative so soon as the +proper legislation shall be had on the part of Great Britain and its +possessions. It is much to be desired that this legislation may become +operative before the fishermen of the United States begin to make their +arrangements for the coming season. +</p> + +<p> +I have addressed a communication, of which a copy is transmitted herewith, +to the governors of New York, Pennsylvania, Ohio, Indiana, Michigan, +Illinois, and Wisconsin, urging upon the governments of those States, +respectively, the necessary action on their part to carry into effect the +object of the article of the treaty which contemplates the use of the +canals, on either side, connected with the navigation of the lakes and +rivers forming the boundary, on terms of equality, by the inhabitants of +both countries. It is hoped that the importance of the object and the +benefits to flow therefrom will secure the speedy approval and legislative +sanction of the States concerned. +</p> + +<p> +I renew the recommendation for an appropriation for determining the true +position of the forty-ninth parallel of latitude where it forms the +boundary between the United States and the British North American +possessions, between the Lake of the Woods and the summit of the Rocky +Mountains. The early action of Congress on this recommendation would put it +in the power of the War Department to place a force in the field during the +next summer. +</p> + +<p> +The resumption of diplomatic relations between France and Germany has +enabled me to give directions for the withdrawal of the protection extended +to Germans in France by the diplomatic and consular representatives of the +United States in that country. It is just to add that the delicate duty of +this protection has been performed by the minister and the consul-general +at Paris, and the various consuls in France under the supervision of the +latter, with great kindness as well as with prudence and tact. Their course +has received the commendation of the German Government, and has wounded no +susceptibility of the French. +</p> + +<p> +The Government of the Emperor of Germany continues to manifest a friendly +feeling toward the United States, and a desire to harmonize with the +moderate and just policy which this Government maintains in its relations +with Asiatic powers, as well as with the South American Republics. I have +given assurances that the friendly feelings of that Government are fully +shared by the United States. +</p> + +<p> +The ratifications of the consular and naturalization conventions with the +Austro-Hungarian Empire have been exchanged. +</p> + +<p> +I have been officially informed of the annexation of the States of the +Church to the Kingdom of Italy, and the removal of the capital of that +Kingdom to Rome. In conformity with the established policy of the United +States, I have recognized this change. The ratifications of the new treaty +of commerce between the United States and Italy have been exchanged. The +two powers have agreed in this treaty that private property at sea shall be +exempt from capture in case of war between the two powers. The United +States have spared no opportunity of incorporating this rule into the +obligation of nations. +</p> + +<p> +The Forty-first Congress, at its third session, made an appropriation for +the organization of a mixed commission for adjudicating upon the claims of +citizens of the United States against Spain growing out of the insurrection +in Cuba. That commission has since been organized. I transmit herewith the +correspondence relating to its formation and its jurisdiction. It is to be +hoped that this commission will afford the claimants a complete remedy for +their injuries. +</p> + +<p> +It has been made the agreeable duty of the United States to preside over a +conference at Washington between the plenipotentiaries of Spain and the +allied South American Republics, which has resulted in an armistice, with +the reasonable assurance of a permanent peace. +</p> + +<p> +The intimate friendly relations which have so long existed between the +United States and Russia continue undisturbed. The visit of the third son +of the Emperor is a proof that there is no desire on the part of his +Government to diminish the cordiality of those relations. The hospitable +reception which has been given to the Grand Duke is a proof that on our +side we share the wishes of that Government. The inexcusable course of the +Russian minister at Washington rendered it necessary to ask his recall and +to decline to longer receive that functionary as a diplomatic +representative. It was impossible, with self-respect or with a just regard +to the dignity of the country, to permit Mr. Catacazy to continue to hold +intercourse with this Government after his personal abuse of Government +officials, and during his persistent interferences, through various means, +with the relations between the United States and other powers. In +accordance with my wishes, this Government has been relieved of further +intercourse with Mr. Catacazy, and the management of the affairs of the +imperial legation has passed into the hands of a gentleman entirely +unobjectionable. +</p> + +<p> +With Japan we continue to maintain intimate relations. The cabinet of the +Mikado has since the close of the last session of Congress selected +citizens of the United States to serve in offices of importance in several +departments of Government. I have reason to think that this selection is +due to an appreciation of the disinterestedness of the policy which the +United States have pursued toward Japan. It is our desire to continue to +maintain this disinterested and just policy with China as well as Japan. +The correspondence transmitted herewith shows that there is no disposition +on the part of this Government to swerve from its established course. +</p> + +<p> +Prompted by a desire to put an end to the barbarous treatment of our +shipwrecked sailors on the Korean coast, I instructed our minister at +Peking to endeavor to conclude a convention with Korea for securing the +safety and humane treatment of such mariners. +</p> + +<p> +Admiral Rodgers was instructed to accompany him with a sufficient force to +protect him in case of need. +</p> + +<p> +A small surveying party sent out, on reaching the coast was treacherously +attacked at a disadvantage. Ample opportunity was given for explanation and +apology for the insult. Neither came. A force was then landed. After an +arduous march over a rugged and difficult country, the forts from which the +outrages had been committed were reduced by a gallant assault and were +destroyed. Having thus punished the criminals, and having vindicated the +honor of the flag, the expedition returned, finding it impracticable under +the circumstances to conclude the desired convention. I respectfully refer +to the correspondence relating thereto, herewith submitted, and leave the +subject for such action as Congress may see fit to take. +</p> + +<p> +The Republic of Mexico has not yet repealed the very objectionable laws +establishing what is known as the "free zone" on the frontier of the United +States. It is hoped that this may yet be done, and also that more stringent +measures may be taken by that Republic for restraining lawless persons on +its frontiers. I hope that Mexico by its own action will soon relieve this +Government of the difficulties experienced from these causes. +</p> + +<p> +Our relations with the various Republics of Central and South America +continue, with one exception, to be cordial and friendly. +</p> + +<p> +I recommend some action by Congress regarding the overdue installments +under the award of the Venezuelan Claims Commission of 1866. The internal +dissensions of this Government present no justification for the absence of +effort to meet their solemn treaty obligations. +</p> + +<p> +The ratification of an extradition treaty with Nicaragua has been +exchanged. +</p> + +<p> +It is a subject for congratulation that the great Empire of Brazil has +taken the initiatory step toward the abolition of slavery. Our relations +with that Empire, always cordial, will naturally be made more so by this +act. It is not too much to hope that the Government of Brazil may hereafter +find it for its interest, as well as intrinsically right, to advance toward +entire emancipation more rapidly than the present act contemplates. +</p> + +<p> +The true prosperity and greatness of a nation is to be found in the +elevation and education of its laborers. +</p> + +<p> +It is a subject for regret that the reforms in this direction which were +voluntarily promised by the statesmen of Spain have not been carried out in +its West India colonies. The laws and regulations for the apparent +abolition of slavery in Cuba and Porto Rico leave most of the laborers in +bondage, with no hope of release until their lives become a burden to their +employers. +</p> + +<p> +I desire to direct your attention to the fact that citizens of the United +States, or persons claiming to be citizens of the United States, are large +holders in foreign lands of this species of property, forbidden by the +fundamental law of their alleged country. I recommend to Congress to +provide by stringent legislation a suitable remedy against the holding, +owning or dealing in slaves, or being interested in slave property, in +foreign lands, either as owners, hirers, or mortgagors, by citizens of the +United States. +</p> + +<p> +It is to be regretted that the disturbed condition of the island of Cuba +continues to be a source of annoyance and of anxiety. The existence of a +protracted struggle in such close proximity to our own territory, without +apparent prospect of an early termination, can not be other than an object +of concern to a people who, while abstaining from interference in the +affairs of other powers, naturally desire to see every country in the +undisturbed enjoyment of peace, liberty, and the blessings of free +institutions. +</p> + +<p> +Our naval commanders in Cuban waters have been instructed, in case it +should become necessary, to spare no effort to protect the lives and +property of bona fide American citizens and to maintain the dignity of the +flag. +</p> + +<p> +It is hoped that all pending questions with Spain growing out of the +affairs in Cuba may be adjusted in the spirit of peace and conciliation +which has hitherto guided the two powers in their treatment of such +questions. +</p> + +<p> +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, I earnestly recommend that an appropriation be made to +support at least four American youths in each of those countries, to serve +as a part of the official family of our ministers there. Our +representatives would not even then be placed upon an equality with the +representatives of Great Britain and of some other powers. As now situated, +our representatives in Japan and China have to depend for interpreters and +translators upon natives of those countries who know our language +imperfectly, or procure for the occasion the services of employees in +foreign business houses or the interpreters to other foreign ministers. +</p> + +<p> +I would also recommend liberal measures for the purpose of supporting the +American lines of steamers now plying between San Francisco and Japan and +China, and the Australian line--almost our only remaining lines of ocean +steamers--and of increasing their services. +</p> + +<p> +The national debt has been reduced to the extent of $86,057, 126.80 during +the year, and by the negotiation of national bonds at a lower rate of +interest the interest on the public debt has been so far diminished that +now the sum to be raised for the interest account is nearly $17,000,000 +less than on the 1st of March, 1869. It was highly desirable that this +rapid diminution should take place, both to strengthen the credit of the +country and to convince its citizens of their entire ability to meet every +dollar of liability without bankrupting them. But in view of the +accomplishment of these desirable ends: of the rapid development of the +resources of the country; its increasing ability to meet large demands, and +the amount already paid, it is not desirable that the present resources of +the country should continue to be taxed in order to continue this rapid +payment. I therefore recommend a modification of both the tariff and +internal-tax law. I recommend that all taxes from internal sources be +abolished, except those collected from spirituous, vinous, and malt +liquors, tobacco in its various forms, and from stamps. +</p> + +<p> +In readjusting the tariff I suggest that a careful estimate be made of the +amount of surplus revenue collected under the present laws, after providing +for the current expenses of the Government, the interest count, and a +sinking fund, and that this surplus be reduced in such a manner as to +afford the greatest relief to the greatest number. There are many articles +not produced at home, but which enter largely into general consumption +through articles which are manufactured at home, such as medicines +compounded, etc., etc., from which very little revenue is derived, but +which enter into general use. All such articles I recommend to be placed on +the "free list." Should a further reduction prove advisable, I would then +recommend that it be made upon those articles which can best bear it +without disturbing home production or reducing the wages of American +labor. +</p> + +<p> +I have not entered into figures, because to do so would be to repeat what +will be laid before you in the report of the Secretary of the Treasury. The +present laws for collecting revenue pay collectors of customs small +salaries, but provide for moieties (shares in all seizures), which, at +principal ports of entry particularly, raise the compensation of those +officials to a large sum. It has always seemed to me as if this system must +at times work perniciously. It holds out an inducement to dishonest men, +should such get possession of those offices, to be lax in their scrutiny of +goods entered, to enable them finally to make large seizures. Your +attention is respectfully invited to this subject. +</p> + +<p> +Continued fluctuations in the value of gold, as compared with the national +currency, has a most damaging effect upon the increase and development of +the country, in keeping up prices of all articles necessary in everyday +life. It fosters a spirit of gambling, prejudicial alike to national morals +and the national finances. If the question can be met as to how to get a +fixed value to our currency, that value constantly and uniformly +approaching par with specie, a very desirable object will be gained. +</p> + +<p> +For the operations of the Army in the past year, the expense of maintaining +it, the estimate for the ensuing year, and for continuing seacoast and +other improvements conducted under the supervision of the War Department, I +refer you to the accompanying report of the Secretary of War. +</p> + +<p> +I call your attention to the provisions of the act of Congress approved +March 3, 1869, which discontinues promotions in the staff corps of the Army +until provided for by law. I recommend that the number of officers in each +grade in the staff corps be fixed, and that whenever the number in any one +grade falls below the number so fixed, that the vacancy may be filled by +promotion from the grade below. I also recommend that when the office of +chief of a corps becomes vacant the place may be filled by selection from +the corps in which the vacancy exists. +</p> + +<p> +The report of the Secretary of the Navy shows an improvement in the number +and efficiency of the naval force, without material increase in the expense +of supporting it. This is due to the policy which has been adopted, and is +being extended as fast as our material will admit, of using smaller vessels +as cruisers on the several stations. By this means we have been enabled to +occupy at once a larger extent of cruising grounds, to visit more +frequently the ports where the presence of our flag is desirable, and +generally to discharge more efficiently the appropriate duties of the Navy +in time of peace, without exceeding the number of men or the expenditure +authorized by law. +</p> + +<p> +During the past year the Navy has, in addition to its regular service, +supplied the men and officers for the vessels of the Coast Survey, and has +completed the surveys authorized by Congress of the isthmuses of Darien and +Tehuantepec, and, under like authority, has sent out an expedition, +completely furnished and equipped, to explore the unknown ocean of the +north. +</p> + +<p> +The suggestions of the report as to the necessity for increasing and +improving the materiel of the Navy, and the plan recommended for reducing +the personnel of the service to a peace standard, by the gradual abolition +of certain grades of officers, the reduction of others, and the employment +of some in the service of the commercial marine, are well considered and +deserve the thoughtful attention of Congress. +</p> + +<p> +I also recommend that all promotions in the Navy above the rank of captain +be by selection instead of by seniority. This course will secure in the +higher grades greater efficiency and hold out an incentive to young +officers to improve themselves in the knowledge of their profession. +</p> + +<p> +The present cost of maintaining the Navy, its cost compared with that of +the preceding year, and the estimates for the ensuing year are contained in +the accompanying report of the Secretary of the Navy. +</p> + +<p> +The enlarged receipts of the Post-Office Department, as shown by the +accompanying report of the Postmaster-General, exhibit a gratifying +increase in that branch of the public service. It is the index of the +growth of education and of the prosperity of the people, two elements +highly conducive to the vigor and stability of republics. With a vast +territory like ours, much of it sparsely populated, but all requiring the +services of the mail, it is not at present to be expected that this +Department can be made self-sustaining. But a gradual approach to this end +from year to year is confidently relied on, and the day is not far distant +when the Post-Office Department of the Government will prove a much greater +blessing to the whole people than it is now. +</p> + +<p> +The suggestions of the Postmaster-General for improvements in the +Department presided over by him are earnestly recommended to you, special +attention. Especially do I recommend favorable consideration of the plan +for uniting the telegraphic system of the United States with the postal +system. It is believed that by such a course the cost of telegraphing could +be much reduced, and the service as well, if not better, rendered. It would +secure the further advantage of extending the telegraph through portions of +the country where private enterprise will not construct it. Commerce, +trade, and, above all, the efforts to bring a people widely separated into +a community of interest are always benefited by a rapid intercommunication. +Education, the groundwork of republican institutions, is encouraged by +increasing the facilities to gather speedy news from all parts of the +country. The desire to reap the benefit of such improvements will stimulate +education. I refer you to the report of the Postmaster-General for full +details of the operations of last year and for comparative statements of +results with former years. +</p> + +<p> +There has been imposed upon the executive branch of the Government the +execution of the act of Congress approved April 20, 1871, and commonly +known as the Kuklux law, in a portion of the State of South Carolina. The +necessity of the course pursued will be demonstrated by the report of the +Committee to Investigate Southern Outrages. Under the provisions of the +above act I issued a proclamation calling the attention of the people of +the United States to the same, and declaring my reluctance to exercise any +of the extraordinary powers thereby conferred upon me, except in case of +imperative necessity, but making known my purpose to exercise such powers +whenever it should become necessary to do so for the purpose of securing to +all citizens of the United States the peaceful enjoyment of the rights +guaranteed to them by the Constitution and the laws. +</p> + +<p> +After the passage of this law information was received from time to time +that combinations of the character referred to in this law existed and were +powerful in many parts of the Southern States, particularly in certain +counties in the State of South Carolina. +</p> + +<p> +Careful investigation was made, and it was ascertained that in nine +counties of that State such combinations were active and powerful, +embracing a sufficient portion of the citizens to control the local +authority, and having, among other things, the object of depriving the +emancipated class of the substantial benefits of freedom and of preventing +the free political action of those citizens who did not sympathize with +their own views. Among their operations were frequent scourgings and +occasional assassinations, generally perpetrated at night by disguised +persons, the victims in almost all cases being citizens of different +political sentiments from their own or freed persons who had shown a +disposition to claim equal rights with other citizens. Thousands of +inoffensive and well disposed citizens were the sufferers by this lawless +violence, +</p> + +<p> +Thereupon, on the 12th of October, 1871, a proclamation was issued, in +terms of the law, calling upon the members of those combinations to +disperse within five days and to deliver to the marshal or military +officers of the United States all arms, ammunition, uniforms, disguises, +and other means and implements used by them for carrying out their unlawful +purposes. +</p> + +<p> +This warning not having been heeded, on the 17th of October another +proclamation was issued, suspending the privileges of the writ of habeas +corpus in nine counties in that State. +</p> + +<p> +Direction was given that within the counties so designated persons +supposed, upon creditable information, to be members of such unlawful +combinations should be arrested by the military forces of the United States +and delivered to the marshal, to be dealt with according to law. In two of +said counties, York and Spartanburg, many arrests have been made. At the +last account the number of persons thus arrested was 168. Several hundred, +whose criminality was ascertained to be of an inferior degree, were +released for the present. These have generally made confessions of their +guilt. +</p> + +<p> +Great caution has been exercised in making these arrests, and, +notwithstanding the large number, it is believed that no innocent person is +now in custody. The prisoners will be held for regular trial in the +judicial tribunals of the United States. +</p> + +<p> +As soon as it appeared that the authorities of the United States were about +to take vigorous measures to enforce the law, many persons absconded, and +there is good ground for supposing that all of such persons have violated +the law. A full report of what has been done under this law will be +submitted to Congress by the Attorney-General. +</p> + +<p> +In Utah there still remains a remnant of barbarism, repugnant to +civilization, to decency, and to the laws of the United States. Territorial +officers, however, have been found who are willing to perform their duty in +a spirit of equity and with a due sense of the necessity of sustaining the +majesty of the law. Neither polygamy nor any other violation of existing +statutes will be permitted within the territory of the United States. It is +not with the religion of the self-styled Saints that we are now dealing, +but with their practices. They will be protected in the worship of God +according to the dictates of their consciences, but they will not be +permitted to violate the laws under the cloak of religion. +</p> + +<p> +It may be advisable for Congress to consider what, in the execution of the +laws against polygamy, is to be the status of plural wives and their +offspring. The propriety of Congress passing an enabling act authorizing +the Territorial legislature of Utah to legitimize all children born prior +to a time fixed in the act might be justified by its humanity to these +innocent children. This is a suggestion only, and not a recommendation. +</p> + +<p> +The policy pursued toward the Indians has resulted favorably, so far as can +be judged from the limited time during which it has been in operation. +Through the exertions of the various societies of Christians to whom has +been intrusted the execution of the policy, and the board of commissioners +authorized by the law of April 10, 1869, many tribes of Indians have been +induced to settle upon reservations, to cultivate the soil, to perform +productive labor of various kinds, and to partially accept civilization. +They are being cared for in such a way, it is hoped, as to induce those +still pursuing their old habits of life to embrace the only opportunity +which is left them to avoid extermination. +</p> + +<p> +I recommend liberal appropriations to carry out the Indian peace policy, +not only because it is humane, Christian like, and economical, but because +it is right. +</p> + +<p> +I recommend to your favorable consideration also the policy of granting a +Territorial government to the Indians in the Indian Territory west of +Arkansas and Missouri and south of Kansas. In doing so every right +guaranteed to the Indian by treaty should be secured. Such a course might +in time be the means of collecting most of the Indians now between the +Missouri and the Pacific and south of the British possessions into one +Territory or one State. The Secretary of the Interior has treated upon this +subject at length, and I commend to you his suggestions. +</p> + +<p> +I renew my recommendation that the public lands be regarded as a heritage +to our children, to be disposed of only as required for occupation and to +actual settlers. Those already granted have been in great part disposed of +in such a way as to secure access to the balance by the hardy settler who +may wish to avail himself of them, but caution should be exercised even in +attaining so desirable an object. +</p> + +<p> +Educational interest may well be served by the grant of the proceeds of the +sale of public lands to settlers. I do not wish to be understood as +recommending in the least degree a curtailment of what is being done by the +General Government for the encouragement of education. +</p> + +<p> +The report of the Secretary of the Interior submitted with this will give +you all the information collected and prepared for publication in regard to +the census taken during the year 1870; the operations of the Bureau of +Education for the year; the Patent Office; the Pension Office; the Land +Office, and the Indian Bureau. +</p> + +<p> +The report of the Commissioner of Agriculture gives the operations of his +Department for the year. As agriculture is the groundwork of our +prosperity, too much importance can not be attached to the labors of this +Department. It is in the hands of an able head, with able assistants, all +zealously devoted to introducing into the agricultural productions of the +nation all useful products adapted to any of the various climates and soils +of our vast territory, and to giving all useful information as to the +method of cultivation, the plants, cereals, and other products adapted to +particular localities. Quietly but surely the Agricultural Bureau is +working a great national good, and if liberally supported the more widely +its influence will be extended and the less dependent we shall be upon the +products of foreign countries. +</p> + +<p> +The subject of compensation to the heads of bureaus and officials holding +positions of responsibility, and requiring ability and character to fill +properly, is one to which your attention is invited. But few of the +officials receive a compensation equal to the respectable support of a +family, while their duties are such as to involve millions of interest. In +private life services demand compensation equal to the services rendered; a +wise economy would dictate the same rule in the Government service. +</p> + +<p> +I have not given the estimates for the support of Government for the +ensuing year, nor the comparative statement between the expenditures for +the year just passed and the one just preceding, because all these figures +are contained in the accompanying reports or in those presented directly to +Congress. These estimates have my approval. +</p> + +<p> +More than six years having elapsed since the last hostile gun was fired +between the armies then arrayed against each other--one for the +perpetuation, the other for the destruction, of the Union--it may well be +considered whether it is not now time that the disabilities imposed by the +fourteenth amendment should be removed. That amendment does not exclude the +ballot, but only imposes the disability to hold offices upon certain +classes. When the purity of the ballot is secure, majorities are sure to +elect officers reflecting the views of the majority. I do not see the +advantage or propriety of excluding men from office merely because they +were before the rebellion of standing and character sufficient to be +elected to positions requiring them to take oaths to support the +Constitution, and admitting to eligibility those entertaining precisely the +same views, but of less standing in their communities. It may be said that +the former violated an oath, while the latter did not; the latter did not +have it in their power to do so. If they had taken this oath, it can not be +doubted they would have broken it as did the former class. If there are any +great criminals, distinguished above all others for the part they took in +opposition to the Government, they might, in the judgment of Congress, be +excluded from such an amnesty. +</p> + +<p> +This subject is submitted for your careful consideration. +</p> + +<p> +The condition of the Southern States is, unhappily, not such as all true +patriotic citizens would like to see. Social ostracism for opinion's sake, +personal violence or threats toward persons entertaining political views +opposed to those entertained by the majority of the old citizens, prevents +immigration and the flow of much-needed capital into the States lately in +rebellion. It will be a happy condition of the country when the old +citizens of these States will take an interest in public affairs, +promulgate ideas honestly entertained, vote for men representing their +views, and tolerate the same freedom of expression and ballot in those +entertaining different political convictions. +</p> + +<p> +Under the provisions of the act of Congress approved February 21, 1871, a +Territorial government was organized in the District of Columbia. Its +results have thus far fully realized the expectations of its advocates. +Under the direction of the Territorial officers, a system of improvements +has been inaugurated by means of which Washington is rapidly becoming a +city worthy of the nation's capital. The citizens of the District having +voluntarily taxed themselves to a large amount for the purpose of +contributing to the adornment of the seat of Government, I recommend +liberal appropriations on the part of Congress, in order that the +Government may bear its just share of the expense of carrying out a +judicious system of improvements. +</p> + +<p> +By the great fire in Chicago the most important of the Government buildings +in that city were consumed. Those burned had already become inadequate to +the wants of the Government in that growing city, and, looking to the near +future, were totally inadequate. I recommend, therefore, that an +appropriation be made immediately to purchase the remainder of the square +on which the burned buildings stood, provided it can be purchased at a fair +valuation, or provided that the legislature of Illinois will pass a law +authorizing its condemnation for Government purposes; and also an +appropriation of as much money as can properly be expended toward the +erection of new buildings during this fiscal year. +</p> + +<p> +The number of immigrants ignorant of our laws, habits, etc., coming into +our country annually has become so great and the impositions practiced upon +them so numerous and flagrant that I suggest Congressional action for their +protection. It seems to me a fair subject of legislation by Congress. I can +not now state as fully as I desire the nature of the complaints made by +immigrants of the treatment they receive, but will endeavor to do so during +the session of Congress, particularly if the subject should receive your +attention. +</p> + +<p> +It has been the aim of the Administration to enforce honesty and efficiency +in all public offices. Every public servant who has violated the trust +placed in him has been proceeded against with all the rigor of the law. If +bad men have secured places, it has been the fault of the system +established by law and custom for making appointments, or the fault of +those who recommend for Government positions persons not sufficiently well +known to them personally, or who give letters indorsing the characters of +office seekers without a proper sense of the grave responsibility which +such a course devolves upon them. A civil-service reform which can correct +this abuse is much desired. In mercantile pursuits the business man who +gives a letter of recommendation to a friend to enable him to obtain credit +from a stranger is regarded as morally responsible for the integrity of his +friend and his ability to meet his obligations. A reformatory law which +would enforce this principle against all indorsers of persons for public +place would insure great caution in making recommendations. A salutary +lesson has been taught the careless and the dishonest public servant in the +great number of prosecutions and convictions of the last two years. +</p> + +<p> +It is gratifying to notice the favorable change which is taking place +throughout the country in bringing to punishment those who have proven +recreant to the trusts confided to them and in elevating to public office +none but those who possess the confidence of the honest and the virtuous, +who, it will always be found, comprise the majority of the community in +which they live. +</p> + +<p> +In my message to Congress one year ago I urgently recommended a reform in +the civil service of the country. In conformity with that recommendation +Congress, in the ninth section of "An act making appropriations for sundry +civil expenses of the Government, and for other purposes," approved March +3, 1871, gave the necessary authority to the Executive to inaugurate a +civil-service reform, and placed upon him the responsibility of doing so. +Under the authority of said act I convened a board of gentlemen eminently +qualified for the work to devise rules and regulations to effect the needed +reform. Their labors are not yet complete, but it is believed that they +will succeed in devising a plan that can be adopted to the great relief of +the Executive, the heads of Departments, and members of Congress, and which +will redound to the true interest of the public service. At all events, the +experiment shall have a fair trial. +</p> + +<p> +I have thus hastily summed up the operations of the Government during the +last year, and made such suggestions as occur to me to be proper for your +consideration. I submit them with a confidence that your combined action +will be wise, statesmanlike, and in the best interests of the whole +country. +</p> + +<p class="noindent"> +U. S. GRANT +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1872"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 2, 1872<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +In transmitting to you this my fourth annual message it is with +thankfulness to the Giver of All Good that as a nation we have been blessed +for the past year with peace at home, peace abroad, and a general +prosperity vouchsafed to but few peoples. +</p> + +<p> +With the exception of the recent devastating fire which swept from the +earth with a breath, as it were, millions of accumulated wealth in the city +of Boston, there has been no overshadowing calamity within the year to +record. It is gratifying to note how, like their fellow-citizens of the +city of Chicago under similar circumstances a year earlier, the citizens of +Boston are rallying under their misfortunes, and the prospect that their +energy and perseverance will overcome all obstacles and show the same +prosperity soon that they would had no disaster befallen them. Otherwise we +have been free from pestilence, war, and calamities, which often overtake +nations; and, as far as human judgment can penetrate the future, no cause +seems to exist to threaten our present peace. +</p> + +<p> +When Congress adjourned in June last, a question had been raised by Great +Britain, and was then pending, which for a time seriously imperiled the +settlement by friendly arbitration of the grave differences between this +Government and that of Her Britannic Majesty, which by the treaty of +Washington had been referred to the tribunal of arbitration which had met +at Geneva, in Switzerland. +</p> + +<p> +The arbitrators, however, disposed of the question which had jeoparded the +whole of the treaty and threatened to involve the two nations in most +unhappy relations toward each other in a manner entirely satisfactory to +this Government and in accordance with the views and the policy which it +had maintained. +</p> + +<p> +The tribunal, which had convened at Geneva in December, concluded its +laborious session on the 14th day of September last, on which day, having +availed itself of the discretionary power given to it by the treaty to +award a sum in gross, it made its decision, whereby it awarded the sum of +$15,500,000 in gold as the indemnity to be paid by Great Britain to the +United States for the satisfaction of all the claims referred to its +consideration. +</p> + +<p> +This decision happily disposes of a long-standing difference between the +two Governments, and, in connection with another award, made by the German +Emperor under a reference to him by the same treaty, leaves these two +Governments without a shadow upon the friendly relations which it is my +sincere hope may forever remain equally unclouded. +</p> + +<p> +The report of the agent of the United States appointed to attend the Geneva +tribunal, accompanied by the protocols of the proceedings of the +arbitrators, the arguments of the counsel of both Governments, the award of +the tribunal, and the opinions given by the several arbitrators, is +transmitted herewith. +</p> + +<p> +I have caused to be communicated to the heads of the three friendly powers +who complied with the joint request made to them under the treaty the +thanks of this Government for the appointment of arbitrators made by them +respectively, and also my thanks to the eminent personages named by them, +and my appreciation of the dignity, patience, impartiality, and great +ability with which they discharged their arduous and high functions. +</p> + +<p> +Her Majesty's Government has communicated to me the appreciation by Her +Majesty of the ability and indefatigable industry displayed by Mr. Adams, +the arbitrator named on the part of this Government during the protracted +inquiries and discussions of the tribunal. I cordially unite with Her +Majesty in this appreciation. +</p> + +<p> +It is due to the agent of the United States before the tribunal to record +my high appreciation of the marked ability, unwearied patience, and the +prudence and discretion with which he has conducted the very responsible +and delicate duties committed to him, as it is also due to the learned and +eminent counsel who attended the tribunal on the part of this Government to +express my sense of the talents and wisdom which they brought to bear in +the attainment of the result so happily reached. +</p> + +<p> +It will be the province of Congress to provide for the distribution among +those who may be entitled to it of their respective shares of the money to +be paid. Although the sum awarded is not payable until a year from the date +of the award, it is deemed advisable that no time be lost in making a +proper examination of the several cases in which indemnification may be +due. I consequently recommend the creation of a board of commissioners for +the purpose. +</p> + +<p> +By the thirty-fourth article of the treaty of Washington the respective +claims of the United States and of Great Britain in their construction of +the treaty of the 15th of June, 1846, defining the boundary line between +their respective territories, were submitted to the arbitration and award +of His Majesty the Emperor of Germany, to decide which of those claims is +most in accordance with the true interpretation of the treaty of 1846. +</p> + +<p> +His Majesty the Emperor of Germany, having been pleased to undertake the +arbitration, has the earnest thanks of this Government and of the people of +the United States for the labor, pains, and care which he has devoted to +the consideration of this long-pending difference. I have caused an +expression of my thanks to be communicated to His Majesty. Mr. Bancroft, +the representative of this Government at Berlin, conducted the case and +prepared the statement on the part of the United States with the ability +that his past services justified the public in expecting at his hands. As a +member of the Cabinet at the date of the treaty which has given rise to the +discussion between the two Governments, as the minister to Great Britain +when the construction now pronounced unfounded was first advanced, and as +the agent and representative of the Government to present the case and to +receive the award, he has been associated with the question in all of its +phases, and in every stage has manifested a patriotic zeal and earnestness +in maintenance of the claim of the United States. He is entitled to much +credit for the success which has attended the submission. +</p> + +<p> +After a patient investigation of the case and of the statements of each +party, His Majesty the Emperor, on the 21st day of October last, signed his +award in writing, decreeing that the claim of the Government of the United +States, that the boundary line between the territories of Her Britannic +Majesty and the United States should be drawn through the Haro Channel, is +most in accordance with the true interpretation of the treaty concluded on +the 15th of June, 1846, between the Governments of Her Britannic Majesty +and of the United States. +</p> + +<p> +Copies of the "case" presented on behalf of each Government, and of the +"statement in reply" of each, and a translation of the award, are +transmitted herewith. +</p> + +<p> +This award confirms the United States in their claim to the important +archipelago of islands lying between the continent and Vancouvers Island, +which for more than twenty-six years (ever since the ratification of the +treaty) Great Britain has contested, and leaves us, for the first time in +the history of the United States as a nation, without a question of +disputed boundary between our territory and the possessions of Great +Britain on this continent. +</p> + +<p> +It is my grateful duty to acknowledge the prompt, spontaneous action of Her +Majesty's Government in giving effect to the award. In anticipation of any +request from this Government, and before the reception in the United States +of the award signed by the Emperor, Her Majesty had given instructions for +the removal of her troops which had been stationed there and for the +cessation of all exercise or claim of jurisdiction, so as to leave the +United States in the exclusive possession of the lately disputed territory. +I am gratified to be able to announce that the orders for the removal of +the troops have been executed, and that the military joint occupation of +San Juan has ceased. The islands are now in the exclusive possession of the +United States. +</p> + +<p> +It now becomes necessary to complete the survey and determination of that +portion of the boundary line (through the Haro Channel) upon which the +commission which determined the remaining part of the line were unable to +agree. I recommend the appointment of a commission to act jointly with one +which may be named by Her Majesty for that purpose. +</p> + +<p> +Experience of the difficulties attending the determination of our admitted +line of boundary, after the occupation of the territory and its settlement +by those owing allegiance to the respective Governments, points to the +importance of establishing, by natural objects or other monuments, the +actual line between the territory acquired by purchase from Russia and the +adjoining possessions of Her Britannic Majesty. The region is now so +sparsely occupied that no conflicting interests of individuals or of +jurisdiction are likely to interfere to the delay or embarrassment of the +actual location of the line. If deferred until population shall enter and +occupy the territory, some trivial contest of neighbors may again array the +two Governments in antagonism. I therefore recommend the appointment of a +commission, to act jointly with one that may be appointed on the part of +Great Britain, to determine the line between our Territory of Alaska and +the conterminous possessions of Great Britain. +</p> + +<p> +In my last annual message I recommended the legislation necessary on the +part of the United States to bring into operation the articles of the +treaty of Washington of May 8, 1871, relating to the fisheries and to other +matters touching the relations of the United States toward the British +North American possessions, to become operative so soon as the proper +legislation should be had on the part of Great Britain and its +possessions. +</p> + +<p> +That legislation on the part of Great Britain and its possessions had not +then been had, and during the session of Congress a question was raised +which for the time raised a doubt whether any action by Congress in the +direction indicated would become important. This question has since been +disposed of, and I have received notice that the Imperial Parliament and +the legislatures of the provincial governments have passed laws to carry +the provisions of the treaty on the matters referred to into operation. I +therefore recommend your early adoption of the legislation in the same +direction necessary on the part of this Government. +</p> + +<p> +The joint commission for determining the boundary line between the United +States and the British possessions between the Lake of the Woods and the +Rocky Mountains has organized and entered upon its work. It is desirable +that the force be increased, in order that the completion of the survey and +determination of the line may be the sooner attained. To this end I +recommend that a sufficient appropriation be made. +</p> + +<p> +With France, our earliest ally; Russia, the constant and steady friend of +the United States; Germany, with whose Government and people we have so +many causes of friendship and so many common sympathies, and the other +powers of Europe, our relations are maintained on the most friendly terms. +</p> + +<p> +Since my last annual message the exchange has been made of the +ratifications of a treaty with the Austro-Hungarian Empire relating to +naturalization; also of a treaty with the German Empire respecting consuls +and trade-marks; also of a treaty with Sweden and Norway relating to +naturalization; all of which treaties have been duly proclaimed. +</p> + +<p> +Congress at its last session having made an appropriation to defray the +expense of commissioners on the part of the United States to the +International Statistical Congress at St. Petersburg, the persons appointed +in that character proceeded to their destination and attended the sessions +of the congress. Their report shall in due season be laid before you. This +congress meets at intervals of about three years, and has held its sessions +in several of the countries of Europe. I submit to your consideration the +propriety of extending an invitation to the congress to hold its next +meeting in the United States. The Centennial Celebration to be held in 1876 +would afford an appropriate occasion for such meeting. +</p> + +<p> +Preparations are making for the international exposition to be held during +the next year in Vienna, on a scale of very great magnitude. The tendency +of these expositions is in the direction of advanced civilization, and of +the elevation of industry and of labor, and of the increase of human +happiness, as well as of greater intercourse and good will between nations. +As this exposition is to be the first which will have been held in eastern +Europe, it is believed that American inventors and manufacturers will be +ready to avail themselves of the opportunity for the presentation of their +productions if encouraged by proper aid and protection. +</p> + +<p> +At the last session of Congress authority was given for the appointment of +one or more agents to represent this Government at the exposition. The +authority thus given has been exercised, but, in the absence of any +appropriation, there is danger that the important benefits which the +occasion offers will in a large degree be lost to citizens of the United +States. I commend the subject strongly to your consideration, and recommend +that an adequate appropriation be made for the purpose. +</p> + +<p> +To further aid American exhibitors at the Vienna Exposition, I would +recommend, in addition to an appropriation of money, that the Secretary of +the Navy be authorized to fit up two naval vessels to transport between our +Atlantic cities and Trieste, or the most convenient port to Vienna, and +back, their articles for exhibition. +</p> + +<p> +Since your last session the President of the Mexican Republic, +distinguished by his high character and by his services to his country, has +died. His temporary successor has now been elected with great unanimity by +the people a proof of confidence on their part in his patriotism and wisdom +which it is believed will be confirmed by the results of his +administration. It is particularly desirable that nothing should be left +undone by the Government of either Republic to strengthen their relations +as neighbors and friends. +</p> + +<p> +It is much to be regretted that many lawless acts continue to disturb the +quiet of the settlements on the border between our territory and that of +Mexico, and that complaints of wrongs to American citizens in various parts +of the country are made. The revolutionary condition in which the +neighboring Republic has so long been involved has in some degree +contributed to this disturbance. It is to be hoped that with a more settled +rule of order through the Republic, which may be expected from the present +Government, the acts of which just complaint is made will cease. +</p> + +<p> +The proceedings of the commission under the convention with Mexico of the +4th of July, 1868, on the subject of claims, have, unfortunately, been +checked by an obstacle, for the removal of which measures have been taken +by the two Governments which it is believed will prove successful. +</p> + +<p> +The commissioners appointed, pursuant to the joint resolution of Congress +of the 7th of May last, to inquire into depredations on the Texan frontier +have diligently made investigations in that quarter. Their report upon the +subject will be communicated to you. Their researches were necessarily +incomplete, partly on account of the limited appropriation made by +Congress. Mexico, on the part of that Government, has appointed a similar +commission to investigate these outrages. It is not announced officially, +but the press of that country states that the fullest investigation is +desired, and that the cooperation of all parties concerned is invited to +secure that end. I therefore recommend that a special appropriation be made +at the earliest day practicable, to enable the commissioners on the part of +the United States to return to their labors without delay. +</p> + +<p> +It is with regret that I have again to announce a continuance of the +disturbed condition of the island of Cuba. No advance toward the +pacification of the discontented part of the population has been made. +While the insurrection has gained no advantages and exhibits no more of the +elements of power or of the prospects of ultimate success than were +exhibited a year ago, Spain, on the other hand, has not succeeded in its +repression, and the parties stand apparently in the same relative attitude +which they have occupied for a long time past. +</p> + +<p> +This contest has lasted now for more than four years. Were its scene at a +distance from our neighborhood, we might be indifferent to its result, +although humanity could not be unmoved by many of its incidents wherever +they might occur. It is, however, at our door. +</p> + +<p> +I can not doubt that the continued maintenance of slavery in Cuba is among +the strongest inducements to the continuance of this strife. A terrible +wrong is the natural cause of a terrible evil. The abolition of slavery and +the introduction of other reforms in the administration of government in +Cuba could not fail to advance the restoration of peace and order. It is +greatly to be hoped that the present liberal Government of Spain will +voluntarily adopt this view. +</p> + +<p> +The law of emancipation, which was passed more than two years since, has +remained unexecuted in the absence of regulations for its enforcement. It +was but a feeble step toward emancipation, but it was the recognition of +right, and was hailed as such, and exhibited Spain in harmony with +sentiments of humanity and of justice and in sympathy with the other powers +of the Christian and civilized world. +</p> + +<p> +Within the past few weeks the regulations for carrying out the law of +emancipation have been announced, giving evidence of the sincerity of +intention of the present Government to carry into effect the law of 1870. I +have not failed to urge the consideration of the wisdom, the policy, and +the justice of a more effective system for the abolition of the great evil +which oppresses a race and continues a bloody and destructive contest close +to our border, as well as the expediency and the justice of conceding +reforms of which the propriety is not questioned. +</p> + +<p> +Deeply impressed with the conviction that the continuance of slavery is one +of the most active causes of the continuance of the unhappy condition in +Cuba, I regret to believe that citizens of the United States, or those +claiming to be such, are large holders in Cuba of what is there claimed as +property, but which is forbidden and denounced by the laws of the United +States. They are thus, in defiance of the spirit of our own laws, +contributing to the continuance of this distressing and sickening contest. +In my last annual message I referred to this subject, and I again recommend +such legislation as may be proper to denounce, and, if not prevent, at +least to discourage American citizens from holding or dealing in slaves. +</p> + +<p> +It is gratifying to announce that the ratifications of the convention +concluded under the auspices of this Government between Spain on the one +part and the allied Republics of the Pacific on the other, providing for an +armistice, have been exchanged. A copy of the instrument is herewith +submitted. It is hoped that this may be followed by a permanent peace +between the same parties. +</p> + +<p> +The differences which at one time threatened the maintenance of peace +between Brazil and the Argentine Republic it is hoped are in the way of +satisfactory adjustment. +</p> + +<p> +With these States, as with the Republics of Central and of South America, +we continue to maintain the most friendly relations. +</p> + +<p> +It is with regret, however, I announce that the Government of Venezuela has +made no further payments on account of the awards under the convention of +the 25th of April, 1866. That Republic is understood to be now almost, if +not quite, tranquilized. It is hoped, therefore, that it will lose no time +in providing for the unpaid balance of its debt to the United States, +which, having originated in injuries to our citizens by Venezuelan +authorities, and having been acknowledged, pursuant to a treaty, in the +most solemn form known among nations, would seem to deserve a preference +over debts of a different origin and contracted in a different manner. This +subject is again recommended to the attention of Congress for such action +as may be deemed proper. +</p> + +<p> +Our treaty relations with Japan remain unchanged. An imposing embassy from +that interesting and progressive nation visited this country during the +year that is passing, but, being unprovided with powers for the signing of +a convention in this country, no conclusion in that direction was reached. +It is hoped, however, that the interchange of opinions which took place +during their stay in this country has led to a mutual appreciation of the +interests which may be promoted when the revision of the existing treaty +shall be undertaken. +</p> + +<p> +In this connection I renew my recommendation of one year ago, that-- +</p> + +<p> +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, an appropriation be made to support at least four +American youths in each of those countries, to serve as a part of the +official family of our ministers there. Our representatives would not even +then be placed upon an equality with the representatives of Great Britain +and of some other powers. As now situated, our representatives in Japan and +China have to depend for interpreters and translators upon natives of those +countries, who know our language imperfectly, or procure for the occasion +the services of employees in foreign business houses or the interpreters to +other foreign ministers. +</p> + +<p> +I renew the recommendation made on a previous occasion, of the transfer to +the Department of the Interior, to which they seem more appropriately to +belong, of all the powers and duties in relation to the Territories with +which the Department of State is now charged by law or by custom. +</p> + +<p> +Congress from the beginning of the Government has wisely made provision for +the relief of distressed seamen in foreign countries. No similar provision, +however, has hitherto been made for the relief of citizens in distress +abroad other than seamen. It is understood to be customary with other +governments to authorize consuls to extend such relief to their citizens or +subjects in certain cases. A similar authority and an appropriation to +carry it into effect are recommended in the case of citizens of the United +States destitute or sick under such circumstances. It is well known that +such citizens resort to foreign countries in great numbers. Though most of +them are able to bear the expenses incident to locomotion, there are some +who, through accident or otherwise, become penniless, and have no friends +at home able to succor them. Persons in this situation must either perish, +cast themselves upon the charity of foreigners, or be relieved at the +private charge of our own officers, who usually, even with the most +benevolent dispositions, have nothing to spare for such purposes. +</p> + +<p> +Should the authority and appropriation asked for be granted, care will be +taken so to carry the beneficence of Congress into effect that it shall not +be unnecessarily or unworthily bestowed. TREASURY. +</p> + +<p> +The moneys received and covered into the Treasury during the fiscal year +ended June 30, 1872, were: +</p> + +<p> +From customs - $216,370,286.77 +</p> + +<p> +From sales of public lands - 2,575,714.19 +</p> + +<p> +From internal revenue - 130,642,177.72 +</p> + +<p> +From tax on national-bank circulation, etc - 6,523,396.39 +</p> + +<p> +From Pacific railway companies - 749,861.87 +</p> + +<p> +From customs fines, etc - 1,136,442.34 +</p> + +<p> +From fees--consular, patent, lands, etc - 2,284,095.92 +</p> + +<p> +From miscellaneous - 412,254.71 - +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1873"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 1, 1873<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +The year that has passed since the submission of my last message to +Congress has, especially during the latter part of it, been an eventful one +to the country. In the midst of great national prosperity a financial +crisis has occurred that has brought low fortunes of gigantic proportions; +political partisanship has almost ceased to exist, especially in the +agricultural regions; and, finally, the capture upon the high seas of a +vessel bearing our flag has for a time threatened the most serious +consequences, and has agitated the public mind from one end of the country +to the other. But this, happily, now is in the course of satisfactory +adjustment, honorable to both nations concerned. +</p> + +<p> +The relations of the United States, however, with most of the other powers +continue to be friendly and cordial. With France, Germany, Russia, Italy, +and the minor European powers; with Brazil and most of the South American +Republics, and with Japan, nothing has occurred during the year to demand +special notice. The correspondence between the Department of State and +various diplomatic representatives in or from those countries is +transmitted herewith. +</p> + +<p> +In executing the will of Congress, as expressed in its joint resolution of +the 14th of February last, and in accordance with the provisions of the +resolution, a number of "practical artisans," of "scientific men," and of +"honorary commissioners" were authorized to attend the exposition at Vienna +as commissioners on the part of the United States. It is believed that we +have obtained the object which Congress had in view when it passed the +joint resolution--"in order to enable the people of the United States to +participate in the advantages of the International Exhibition of the +Products of Agriculture, Manufactures, and the Fine Arts to be held at +Vienna." I take pleasure in adding that the American exhibitors have +received a gratifying number of diplomas and of medals. +</p> + +<p> +During the exposition a conference was held at Vienna for the purpose of +consultation on the systems prevailing in different countries for the +protection of inventions. I authorized a representative from the Patent +Office to be present at Vienna at the time when this conference was to take +place, in order to aid as far as he might in securing any possible +additional protection to American inventors in Europe. The report of this +agent will be laid before Congress. +</p> + +<p> +It is my pleasant duty to announce to Congress that the Emperor of China, +on attaining his majority, received the diplomatic representatives of the +Western powers in person. An account of these ceremonies and of the +interesting discussions which preceded them will be found in the documents +transmitted herewith. The accompanying papers show that some advance, +although slight, has been made during the past year toward the suppression +of the infamous Chinese cooly trade. I recommend Congress to inquire +whether additional legislation be not needed on this subject. +</p> + +<p> +The money awarded to the United States by the tribunal of arbitration at +Geneva was paid by Her Majesty's Government a few days in advance of the +time when it would have become payable according to the terms of the +treaty. In compliance with the provisions of the act of March 3, 1873, it +was at once paid into the Treasury, and used to redeem, so far as it might, +the public debt of the United States; and the amount so redeemed was +invested in a 5 per cent registered bond of the United States for +$15,500,000, which is now held by the Secretary of State, subject to the +future disposition of Congress. +</p> + +<p> +I renew my recommendation, made at the opening of the last session of +Congress, that a commission be created for the purpose of auditing and +determining the amounts of the several "direct losses growing out of the +destruction of vessels and their cargoes" by the Alabama, the Florida, or +the Shenandoah after leaving Melbourne, for which the sufferers have +received no equivalent or compensation, and of ascertaining the names of +the persons entitled to receive compensation for the same, making the +computations upon the basis indicated by the tribunal of arbitration at +Geneva; and that payment of such losses be authorized to an extent not to +exceed the awards of the tribunal at Geneva. +</p> + +<p> +By an act approved on the 14th day of February last Congress made provision +for completing, jointly with an officer or commissioner to be named by Her +Britannic Majesty, the determination of so much of the boundary line +between the territory of the United States and the possessions of Great +Britain as was left uncompleted by the commissioners appointed under the +act of Congress of August 11, 1856. Under the provisions of this act the +northwest water boundary of the United States has been determined and +marked in accordance with the award of the Emperor of Germany. A protocol +and a copy of the map upon which the line was thus marked are contained in +the papers submitted herewith. +</p> + +<p> +I also transmit a copy of the report of the commissioner for marking the +northern boundary between the United States and the British possessions +west of the Lake of the Woods, of the operations of the commission during +the past season. Surveys have been made to a point 497 miles west of the +Lake of the Woods, leaving about 350 miles to be surveyed, the field work +of which can be completed during the next season. +</p> + +<p> +The mixed commission organized under the provisions of the treaty of +Washington for settling and determining the claims of citizens of either +power against the other arising out of acts committed against their persons +or property during the period between April 13, 1861, and April 9, 1865, +made its final award on the 25th day of September last. It was awarded that +the Government of the United States should pay to the Government of Her +Britannic Majesty, within twelve months from the date of the award, the sum +of $1,929,819 in gold. The commission disallowed or dismissed all other +claims of British subjects against the United States. The amount of the +claims presented by the British Government, but disallowed or dismissed, is +understood to be about $93,000,000. It also disallowed all the claims of +citizens of the United States against Great Britain which were referred to +it. +</p> + +<p> +I recommend the early passage of an act appropriating the amount necessary +to pay this award against the United States. +</p> + +<p> +I have caused to be communicated to the Government of the King of Italy the +thanks of this Government for the eminent services rendered by Count Corti +as the third commissioner on this commission. With dignity, learning, and +impartiality he discharged duties requiring great labor and constant +patience, to the satisfaction, I believe, of both Governments. I recommend +legislation to create a special court, to consist of three judges, who +shall be empowered to hear and determine all claims of aliens upon the +United States arising out of acts committed against their persons or +property during the insurrection. The recent reference under the treaty of +Washington was confined to claims of British subjects arising during the +period named in the treaty; but it is understood that there are other +British claims of a similar nature, arising after the 9th of April, 1865, +and it is known that other claims of a like nature are advanced by citizens +or subjects of other powers. It is desirable to have these claims also +examined and disposed of. +</p> + +<p> +Official information being received from the Dutch Government of a state of +war between the King of the Netherlands and the Sultan of Acheen, the +officers of the United States who were near the seat of the war were +instructed to observe an impartial neutrality. It is believed that they +have done so. +</p> + +<p> +The joint commission under the convention with Mexico of 1868, having again +been legally prolonged, has resumed its business, which, it is hoped, may +be brought to an early conclusion. The distinguished representative of Her +Britannic Majesty at Washington has kindly consented, with the approval of +his Government, to assume the arduous and responsible duties of umpire in +this commission, and to lend the weight of his character and name to such +decisions as may not receive the acquiescence of both the arbitrators +appointed by the respective Governments. +</p> + +<p> +The commissioners appointed pursuant to the authority of Congress to +examine into the nature and extent of the forays by trespassers from that +country upon the herds of Texas have made a report, which will be submitted +for your consideration. +</p> + +<p> +The Venezuelan Government has been apprised of the sense of Congress in +regard to the awards of the joint commission under the convention of 25th +April, 1866, as expressed in the act of the 25th of February last. +</p> + +<p> +It is apprehended that that Government does not realize the character of +its obligations under that convention. As there is reason to believe, +however, that its hesitancy in recognizing them springs, in part at least, +from real difficulty in discharging them in connection with its obligations +to other governments, the expediency of further forbearance on our part is +believed to be worthy of your consideration. +</p> + +<p> +The Ottoman Government and that of Egypt have latterly shown a disposition +to relieve foreign consuls of the judicial powers which heretofore they +have exercised in the Turkish dominions, by organizing other tribunals. As +Congress, however, has by law provided for the discharge of judicial +functions by consuls of the United States in that quarter under the treaty +of 1830, I have not felt at liberty formally to accept the proposed change +without the assent of Congress, whose decision upon the subject at as early +a period as may be convenient is earnestly requested. +</p> + +<p> +I transmit herewith, for the consideration and determination of Congress, +an application of the Republic of Santo Domingo to this Government to +exercise a protectorate over that Republic. +</p> + +<p> +Since the adjournment of Congress the following treaties with foreign +powers have been proclaimed: A naturalization convention with Denmark; a +convention with Mexico for renewing the Claims Commission; a convention of +friendship, commerce, and extradition with the Orange Free State, and a +naturalization convention with Ecuador. +</p> + +<p> +I renew the recommendation made in my message of December, 1870, that +Congress authorize the Postmaster-General to issue all commissions to +officials appointed through his Department. +</p> + +<p> +I invite the earnest attention of Congress to the existing laws of the +United States respecting expatriation and the election of nationality by +individuals. Many citizens of the United States reside permanently abroad +with their families. Under the provisions of the act approved February 10, +1855, the children of such persons are to be deemed and taken to be +citizens of the United States, but the rights of citizenship are not to +descend to persons whose fathers never resided in the United States. +</p> + +<p> +It thus happens that persons who have never resided within the United +States have been enabled to put forward a pretension to the protection of +the United States against the claim to military service of the government +under whose protection they were born and have been reared. In some cases +even naturalized citizens of the United States have returned to the land of +their birth, with intent to remain there, and their children, the issue of +a marriage contracted there after their return, and who have never been in +the United States, have laid claim to our protection when the lapse of many +years had imposed upon them the duty of military service to the only +government which had ever known them personally. +</p> + +<p> +Until the year 1868 it was left, embarrassed by conflicting opinions of +courts and of jurists, to determine how far the doctrine of perpetual +allegiance derived from our former colonial relations with Great Britain +was applicable to American citizens. Congress then wisely swept these +doubts away by enacting that--Any declaration, instruction, opinion, +order, or decision of any officer of this Government which denies, +restricts, impairs, or questions the right of expatriation is inconsistent +with the fundamental principles of this Government. But Congress did not +indicate in that statute, nor has it since done so, what acts are to be +deemed to work expatriation. For my own guidance in determining such +questions I required (under the provisions of the Constitution) the opinion +in writing of the principal officer in each of the Executive Departments +upon certain questions relating to this subject. The result satisfies me +that further legislation has become necessary. I therefore commend the +subject to the careful consideration of Congress, and I transmit herewith +copies of the several opinions of the principal officers of the Executive +Departments, together with other correspondence and pertinent information +on the same subject. +</p> + +<p> +The United States, who led the way in the overthrow of the feudal doctrine +of perpetual allegiance, are among the last to indicate how their own +citizens may elect another nationality. The papers submitted herewith +indicate what is necessary to place us on a par with other leading nations +in liberality of legislation on this international question. We have +already in our treaties assented to the principles which would need to be +embodied in laws intended to accomplish such results. We have agreed that +citizens of the United States may cease to be citizens and may voluntarily +render allegiance to other powers. We have agreed that residence in a +foreign land, without intent to return, shall of itself work expatriation. +We have agreed in some instances upon the length of time necessary for such +continued residence to work a presumption of such intent. I invite Congress +now to mark out and define when and how expatriation can be accomplished; +to regulate by law the condition of American women marrying foreigners; to +fix the status of children born in a foreign country of American parents +residing more or less permanently abroad, and to make rules for determining +such other kindred points as may seem best to Congress. +</p> + +<p> +In compliance with the request of Congress, I transmitted to the American +minister at Madrid, with instructions to present it to the Spanish +Government, the joint resolution approved on the 3d of March last, +tendering to the people of Spain, in the name and on the behalf of the +American people, the congratulations of Congress upon the efforts to +consolidate in Spain the principles of universal liberty in a republican +form of government. +</p> + +<p> +The existence of this new Republic was inaugurated by striking the fetters +from the slaves in Porto Rico. This beneficent measure was followed by the +release of several thousand persons illegally held as slaves in Cuba. Next, +the Captain-General of that colony was deprived of the power to set aside +the orders of his superiors at Madrid, which had pertained to the office +since 1825. The sequestered estates of American citizens, which had been +the cause of long and fruitless correspondence, were ordered to be restored +to their owners. All these liberal steps were taken in the face of a +violent opposition directed by the reactionary slave-holders of Havana, who +are vainly striving to stay the march of ideas which has terminated slavery +in Christendom, Cuba only excepted. Unhappily, however, this baneful +influence has thus far succeeded in defeating the efforts of all +liberal-minded men in Spain to abolish slavery in Cuba, and in preventing +the promised reform in that island. The struggle for political supremacy +continues there. +</p> + +<p> +The proslavery and aristocratic party in Cuba is gradually arraigning +itself in more and more open hostility and defiance of the home government, +while it still maintains a political connection with the Republic in the +peninsula; and although usurping and defying the authority of the home +government whenever such usurpation or defiance tends in the direction of +oppression or of the maintenance of abuses, it is still a power in Madrid, +and is recognized by the Government. Thus an element more dangerous to +continued colonial relations between Cuba and Spain than that which +inspired the insurrection at Yara--an element opposed to granting any +relief from misrule and abuse, with no aspirations after freedom, +commanding no sympathies in generous breasts, aiming to rivet still +stronger the shackles of slavery and oppression--has seized many of the +emblems of power in Cuba, and, under professions of loyalty to the mother +country, is exhausting the resources of the island, and is doing acts which +are at variance with those principles of justice, of liberality, and of +right which give nobility of character to a republic. In the interests of +humanity, of civilization, and of progress, it is to be hoped that this +evil influence may be soon averted. +</p> + +<p> +The steamer Virginius was on the 26th day of September, 1870, duly +registered at the port of New York as a part of the commercial marine of +the United States. On the 4th of October, 1870, having received the +certificate of her register in the usual legal form, she sailed from the +port of New York and has not since been within the territorial jurisdiction +of the United States. On the 31st day of October last, while sailing under +the flag of the United States on the high seas, she was forcibly seized by +the Spanish gunboat Tornado, and was carried into the port of Santiago de +Cuba, where fifty-three of her passengers and crew were inhumanly, and, so +far at least as relates to those who were citizens of the United States, +without due process of law, put to death. +</p> + +<p> +It is a well-established principle, asserted by the United States from the +beginning of their national independence, recognized by Great Britain and +other maritime powers, and stated by the Senate in a resolution passed +unanimously on the 16th of June, 1858, that--American vessels on the high +seas in time of peace, bearing the American flag, remain under the +jurisdiction of the country to which they belong, and therefore any +visitation, molestation, or detention of such vessel by force, or by the +exhibition of force, on the part of a foreign power is in derogation of the +sovereignty of the United States. In accordance with this principle, the +restoration of the Virginius and the surrender of the survivors of her +passengers and crew, and a due reparation to the flag, and the punishment +of the authorities who had been guilty of the illegal acts of violence, +were demanded. The Spanish Government has recognized the justice of the +demand, and has arranged for the immediate delivery of the vessel, and for +the surrender of the survivors of the passengers and crew, and for a salute +to the flag, and for proceedings looking to the punishment of those who may +be proved to have been guilty of illegal acts of violence toward citizens +of the United States, and also toward indemnifying those who may be shown +to be entitled to indemnity. A copy of a protocol of a conference between +the Secretary of State and the Spanish minister, in which the terms of this +arrangement were agreed to, is transmitted herewith. +</p> + +<p> +The correspondence on this subject with the legation of the United States +in Madrid was conducted in cipher and by cable, and needs the verification +of the actual text of the correspondence. It has seemed to me to be due to +the importance of the case not to submit this correspondence until the +accurate text can be received by mail. It is expected shortly, and will be +submitted when received. +</p> + +<p> +In taking leave of this subject for the present I wish to renew the +expression of my conviction that the existence of African slavery in Cuba +is a principal cause of the lamentable condition of the island. I do not +doubt that Congress shares with me the hope that it will soon be made to +disappear, and that peace and prosperity may follow its abolition. +</p> + +<p> +The embargoing of American estates in Cuba, cruelty to American citizens +detected in no act of hostility to the Spanish Government, the murdering of +prisoners taken with arms in their hands, and, finally, the capture upon +the high seas of a vessel sailing under the United States flag and bearing +a United States registry have culminated in an outburst of indignation that +has seemed for a time to threaten war. Pending negotiations between the +United States and the Government of Spain on the subject of this capture, I +have authorized the Secretary of the Navy to put our Navy on a war footing, +to the extent, at least, of the entire annual appropriation for that branch +of the service, trusting to Congress and the public opinion of the American +people to justify my action. +</p> + +<p> +Assuming from the action of the last Congress in appointing a Committee on +Privileges and Elections to prepare and report to this Congress a +constitutional amendment to provide a better method of electing the +President and Vice-President of the United States, and also from the +necessity of such an amendment, that there will be submitted to the State +legislatures for ratification such an improvement in our Constitution, I +suggest two others for your consideration: +</p> + +<p> +First. To authorize the Executive to approve of so much of any measure +passing the two Houses of Congress as his judgment may dictate, without +approving the whole, the disapproved portion or portions to be subjected to +the same rules as now, to wit, to be referred back to the House in which +the measure or measures originated, and, if passed by a two-thirds vote of +the two Houses, then to become a law without the approval of the President. +I would add to this a provision that there should be no legislation by +Congress during the last twenty-four hours of its sitting, except upon +vetoes, in order to give the Executive an opportunity to examine and +approve or disapprove bills understandingly. +</p> + +<p> +Second. To provide by amendment that when an extra session of Congress is +convened by Executive proclamation legislation during the continuance of +such extra session shall be confined to such subjects as the Executive may +bring before it from time to time in writing. +</p> + +<p> +The advantages to be gained by these two amendments are too obvious for me +to comment upon them. One session in each year is provided for by the +Constitution, in which there are no restrictions as to the subjects of +legislation by Congress. If more are required, it is always in the power of +Congress, during their term of office, to provide for sessions at any time. +The first of these amendments would protect the public against the many +abuses and waste of public moneys which creep into appropriation bills and +other important measures passing during the expiring hours of Congress, to +which otherwise due consideration can not be given. +</p> + +<p> +TREASURY DEPARTMENT. +</p> + +<p> +The receipts of the Government from all sources for the last fiscal year +were $333,738,204, and expenditures on all accounts $290,345,245, thus +showing an excess of receipts over expenditures of $43,392,959. But it is +not probable that this favorable exhibit will be shown for the present +fiscal year. Indeed, it is very doubtful whether, except with great economy +on the part of Congress in making appropriations and the same economy in +administering the various Departments of Government, the revenues will not +fall short of meeting actual expenses, including interest on the public +debt. +</p> + +<p> +I commend to Congress such economy, and point out two sources where It +seems to me it might commence, to wit, in the appropriations for public +buildings in the many cities where work has not yet been commenced; in the +appropriations for river and harbor improvement in those localities where +the improvements are of but little benefit to general commerce, and for +fortifications. +</p> + +<p> +There is a still more fruitful source of expenditure, which I will point +out later in this message. I refer to the easy method of manufacturing +claims for losses incurred in suppressing the late rebellion. +</p> + +<p> +I would not be understood here as opposing the erection of good, +substantial, and even ornamental buildings by the Government wherever such +buildings are needed. In fact, I approve of the Government owning its own +buildings in all sections of the country, and hope the day is not far +distant when it will not only possess them, but will erect in the capital +suitable residences for all persons who now receive commutation for +quarters or rent at Government expense, and for the Cabinet, thus setting +an example to the States which may induce them to erect buildings for their +Senators. But I would have this work conducted at a time when the revenues +of the country would abundantly justify it. +</p> + +<p> +The revenues have materially fallen off for the first five months of the +present fiscal year from what they were expected to produce, owing to the +general panic now prevailing, which commenced about the middle of September +last. The full effect of this disaster, if it should not prove a "blessing +in disguise," is yet to be demonstrated. In either event it is your duty to +heed the lesson and to provide by wise and well-considered legislation, as +far as it lies in your power, against its recurrence, and to take advantage +of all benefits that may have accrued. +</p> + +<p> +My own judgment is that, however much individuals may have suffered, one +long step has been taken toward specie payments; that we can never have +permanent prosperity until a specie basis is reached: and that a specie +basis can not be reached and maintained until our exports, exclusive of +gold, pay for our imports, interest due abroad, and other specie +obligations, or so nearly so as to leave an appreciable accumulation of the +precious metals in the country from the products of our mines. +</p> + +<p> +The development of the mines of precious metals during the past year and +the prospective development of them for years to come are gratifying in +their results. Could but one-half of the gold extracted from the mines be +retained at home, our advance toward specie payments would be rapid. +</p> + +<p> +To increase our exports sufficient currency is required to keep all the +industries of the country employed. Without this national as well as +individual bankruptcy must ensue. Undue inflation, on the other hand, while +it might give temporary relief, would only lead to inflation of prices, the +impossibility of competing in our own markets for the products of home +skill and labor, and repeated renewals of present experiences. Elasticity +to our circulating medium, therefore, and just enough of it to transact the +legitimate business of the country and to keep all industries employed, is +what is most to be desired. The exact medium is specie, the recognized +medium of exchange the world over. That obtained, we shall have a currency +of an exact degree of elasticity. If there be too much of it for the +legitimate purposes of trade and commerce, it will flow out of the country. +If too little, the reverse will result. To hold what we have and to +appreciate our currency to that standard is the problem deserving of the +most serious consideration of Congress. +</p> + +<p> +The experience of the present panic has proven that the currency of the +country, based, as it is, upon the credit of the country, is the best that +has ever been devised. Usually in times of such trials currency has become +worthless, or so much depreciated in value as to inflate the values of all +the necessaries of life as compared with the currency. Everyone holding it +has been anxious to dispose of it on any terms. Now we witness the reverse. +Holders of currency hoard it as they did gold in former experiences of a +like nature. +</p> + +<p> +It is patent to the most casual observer that much more currency, or money, +is required to transact the legitimate trade of the country during the fall +and winter months, when the vast crops are being removed, than during the +balance of the year. With our present system the amount in the country +remains the same throughout the entire year, resulting in an accumulation +of all the surplus capital of the country in a few centers when not +employed in the moving of crops, tempted there by the offer of interest on +call loans. Interest being paid, this surplus capital must earn this +interest paid with a profit. Being subject to "call," it can not be loaned, +only in part at best, to the merchant or manufacturer for a fixed term. +Hence, no matter how much currency there might be in the country, it would +be absorbed, prices keeping pace with the volume, and panics, stringency, +and disasters would ever be recurring with the autumn. Elasticity in our +monetary system, therefore, is the object to be attained first, and next to +that, as far as possible, a prevention of the use of other people's money +in stock and other species of speculation. To prevent the latter it seems +to me that one great step would be taken by prohibiting the national banks +from paying interest on deposits, by requiring them to hold their reserves +in their own vaults, and by forcing them into resumption, though it would +only be in legal-tender notes. For this purpose I would suggest the +establishment of clearing houses for your consideration. +</p> + +<p> +To secure the former many plans have been suggested, most, if not all, of +which look to me more like inflation on the one hand, or compelling the +Government, on the other, to pay interest, without corresponding benefits, +upon the surplus funds of the country during the seasons when otherwise +unemployed. +</p> + +<p> +I submit for your consideration whether this difficulty might not be +overcome by authorizing the Secretary of the Treasury to issue at any time +to national banks of issue any amount of their own notes below a fixed +percentage of their issue (say 40 per cent), upon the banks' depositing +with the Treasurer of the United States an amount of Government bonds equal +to the amount of notes demanded, the banks to forfeit to the Government, +say, 4 per cent of the interest accruing on the bonds so pledged during the +time they remain with the Treasurer as security for the increased +circulation, the bonds so pledged to be redeemable by the banks at their +pleasure, either in whole or in part, by returning their own bills for +cancellation to an amount equal to the face of the bonds withdrawn. I would +further suggest for your consideration the propriety of authorizing +national banks to diminish their standing issue at pleasure, by returning +for cancellation their own bills and withdrawing so many United States +bonds as are pledged for the bills returned. +</p> + +<p> +In view of the great actual contraction that has taken place in the +currency and the comparative contraction continuously going on, due to the +increase of population, increase of manufactories and all the industries, I +do not believe there is too much of it now for the dullest period of the +year. Indeed, if clearing houses should be established, thus forcing +redemption, it is a question for your consideration whether banking should +not be made free, retaining all the safeguards now required to secure bill +holders. In any modification of the present laws regulating national banks, +as a further step toward preparing for resumption of specie payments, I +invite your attention to a consideration of the propriety of exacting from +them the retention as a part of their reserve either the whole or a part of +the gold interest accruing upon the bonds pledged as security for their +issue. I have not reflected enough on the bearing this might have in +producing a scarcity of coin with which to pay duties on imports to give it +my positive recommendation. But your attention is invited to the subject. +</p> + +<p> +During the last four years the currency has been contracted, directly, by +the withdrawal of 3 per cent certificates, compound-interest notes, and +"seven-thirty" bonds outstanding on the 4th of March, 1869, all of which +took the place of legal-tenders in the bank reserves to the extent of +$63,000,000. +</p> + +<p> +During the same period there has been a much larger comparative contraction +of the currency. The population of the country has largely increased. More +than 25,000 miles of railroad have been built, requiring the active use of +capital to operate them. Millions of acres of land have been opened to +cultivation, requiring capital to move the products. Manufactories have +multiplied beyond all precedent in the same period of time, requiring +capital weekly for the payment of wages and for the purchase of material; +and probably the largest of all comparative contraction arises from the +organizing of free labor in the South. Now every laborer there receives his +wages, and, for want of savings banks, the greater part of such wages is +carried in the pocket or hoarded until required for use. +</p> + +<p> +These suggestions are thrown out for your consideration, without any +recommendation that they shall be adopted literally, but hoping that the +best method may be arrived at to secure such an elasticity of the currency +as will keep employed all the industries of the country and prevent such an +inflation as will put off indefinitely the resumption of specie payments, +an object so devoutly to be wished for by all, and by none more earnestly +than the class of people most directly interested--those who "earn their +bread by the sweat of their brow." The decisions of Congress on this +subject will have the hearty support of the Executive. +</p> + +<p> +In previous messages I have called attention to the decline in American +shipbuilding and recommended such legislation as would secure to us our +proportion of the carrying trade. Stimulated by high rates and abundance of +freight, the progress for the last year in shipbuilding has been very +satisfactory. There has been an increase of about 3 per cent in the amount +transported in American vessels over the amount of last year. With the +reduced cost of material which has taken place, it may reasonably be hoped +that this progress will be maintained, and even increased. However, as we +pay about $80,000,000 per annum to foreign vessels for the transportation +to a market of our surplus products, thus increasing the balance of trade +against us to this amount, the subject is one worthy of your serious +consideration. +</p> + +<p> +"Cheap transportation" is a subject that has attracted the attention of +both producers and consumers for the past few years, and has contributed +to, if it has not been the direct cause of, the recent panic and +stringency. +</p> + +<p> +As Congress, at its last session, appointed a special committee to +investigate this whole subject during the vacation and report at this +session, I have nothing to recommend until their report is read. +</p> + +<p> +There is one work, however, of a national character, in which the greater +portion of the East and the West, the North and the South, are equally +interested, to which I will invite your attention. +</p> + +<p> +The State of New York has a canal connecting Lake Erie with tide water on +the Hudson River. The State of Illinois has a similar work connecting Lake +Michigan with navigable water on the Illinois River, thus making water +communication inland between the East and the West and South. These great +artificial water courses are the property of the States through which they +pass, and pay toll to those States. Would it not be wise statesmanship to +pledge these States that if they will open these canals for the passage of +large vessels the General Government will look after and keep in navigable +condition the great public highways with which they connect, to wit, the +Overslaugh on the Hudson, the St. Clair Flats, and the Illinois and +Mississippi rivers? This would be a national work; one of great value to +the producers of the West and South in giving them cheap transportation for +their produce to the seaboard and a market, and to the consumers in the +East in giving them cheaper food, particularly of those articles of food +which do not find a foreign market, and the prices of which, therefore, are +not regulated by foreign demands. The advantages of such a work are too +obvious for argument. I submit the subject to you, therefore, without +further comment. +</p> + +<p> +In attempting to regain our lost commerce and carrying trade I have +heretofore called attention to the States south of us offering a field +where much might be accomplished. To further this object I suggest that a +small appropriation be made, accompanied with authority for the Secretary +of the Navy to fit out a naval vessel to ascend the Amazon River to the +mouth of the Madeira; thence to explore that river and its tributaries into +Bolivia, and to report to Congress at its next session, or as soon as +practicable, the accessibility of the country by water, its resources, and +the population so reached. Such an exploration would cost but little; it +can do no harm, and may result in establishing a trade of value to both +nations. +</p> + +<p> +In further connection with the Treasury Department I would recommend a +revision and codification of the tariff laws and the opening of more mints +for coining money, with authority to coin for such nations as may apply. +</p> + +<p> +WAR DEPARTMENT. +</p> + +<p> +The attention of Congress is invited to the recommendations contained in +the report of the Secretary of War herewith accompanying. +</p> + +<p> +The apparent great cost of supporting the Army is fully explained by this +report, and I hope will receive your attention. +</p> + +<p> +While inviting your general attention to all the recommendations made by +the Secretary of War, there are two which I would especially invite you to +consider: First, the importance of preparing for war in time of peace by +providing proper armament for our seacoast defenses. Proper armament is of +vastly more importance than fortifications. The latter can be supplied very +speedily for temporary purposes when needed; the former can not. The second +is the necessity of reopening promotion in the staff corps of the Army. +Particularly is this necessity felt in the Medical, Pay, and Ordnance +departments. +</p> + +<p> +At this time it is necessary to employ "contract surgeons" to supply the +necessary medical attendance required by the Army. +</p> + +<p> +With the present force of the Pay Department it is now difficult to make +the payments to troops provided for by law. Long delays in payments are +productive of desertions and other demoralization, and the law prohibits +the payment of troops by other than regular army paymasters. +</p> + +<p> +There are now sixteen vacancies in the Ordnance Department, thus leaving +that branch of the service without sufficient officers to conduct the +business of the different arsenals on a large scale if ever required. +</p> + +<p> +NAVY DEPARTMENT. +</p> + +<p> +During the past year our Navy has been depleted by the sale of some vessels +no longer fit for naval service and by the condemnation of others not yet +disposed of. This, however, has been more than compensated for by the +repair of six of the old wooden ships and by the building of eight new +sloops of war, authorized by the last Congress. The building of these +latter has occurred at a doubly fortunate time. They are about being +completed at a time when they may possibly be much needed, and the work +upon them has not only given direct employment to thousands of men, but has +no doubt been the means of keeping open establishments for other work at a +time of great financial distress. +</p> + +<p> +Since the commencement of the last month, however, the distressing +occurrences which have taken place in the waters of the Caribbean Sea, +almost on our very seaboard, while they illustrate most forcibly the +necessity always existing that a nation situated like ours should maintain +in a state of possible efficiency a navy adequate to its responsibilities, +has at the same time demanded that all the effective force we really have +shall be put in immediate readiness for warlike service. This has been and +is being done promptly and effectively, and I am assured that all the +available ships and every authorized man of the American Navy will be ready +for whatever action is required for the safety of our citizens or the +maintenance of our honor. This, of course, will require the expenditure in +a short time of some of the appropriations which were calculated to extend +through the fiscal year, but Congress will, I doubt not, understand and +appreciate the emergency, and will provide adequately not only for the +present preparation, but for the future maintenance of our naval force. The +Secretary of the Navy has during the past year been quietly putting some of +our most effective monitors in condition for service, and thus the exigency +finds us in a much better condition for work than we could possibly have +been without his action. +</p> + +<p> +POST-OFFICE DEPARTMENT. +</p> + +<p> +A complete exhibit is presented in the accompanying report of the +postmaster-General of the operations of the Post-Office Department during +the year. The ordinary postal revenues for the fiscal year ended June 30, +1873, amounted to $22,996,741.57, and the expenditures of all kinds to +$29,084,945.67. The increase of revenues over 1872 was $1,081,315.20, and +the increase of expenditures $2,426,753.36. +</p> + +<p> +Independent of the payments made from special appropriations for mail +steamship lines, the amount drawn from the General Treasury to meet +deficiencies was $5,265,475. The constant and rapid extension of our postal +service, particularly upon railways, and the improved facilities for the +collection, transmission, distribution, and delivery of the mails which are +constantly being provided account for the increased expenditures of this +popular branch of the public service. +</p> + +<p> +The total number of post-offices in operation on June 30, 1873, was 33,244, +a net increase of 1,381 over the number reported the preceding year. The +number of Presidential offices was 1,363, an increase of 163 during the +year. The total length of railroad mail routes at the close of the year was +63,457 miles, an increase of 5,546 miles over the year 1872. Fifty-nine +railway post-office lines were in operation June 30, 1873, extending over +14,866 miles of railroad routes and performing an aggregate service of +34,925 miles daily. +</p> + +<p> +The number of letters exchanged with foreign countries was 27,459,185, an +increase of 3,096,685 over the previous year, and the postage thereon +amounted to $2,021,310.86. The total weight of correspondence exchanged in +the mails with European countries exceeded 912 tons, an increase of 92 tons +over the previous year. The total cost of the United States ocean steamship +service, including $725,000 paid from special appropriations to subsidized +lines of mail steamers, was $1,047,271.35. +</p> + +<p> +New or additional postal conventions have been concluded with Sweden, +Norway, Belgium, Germany, Canada, Newfoundland, and Japan, reducing postage +rates on correspondence exchanged with those countries; and further efforts +have been made to conclude a satisfactory postal convention with France, +but without success. +</p> + +<p> +I invite the favorable consideration of Congress to the suggestions and +recommendations of the Postmaster-General for an extension of the +free-delivery system in all cities having a population of not less than +10,000; for the prepayment of postage on newspapers and other printed +matter of the second class; for a uniform postage and limit of weight on +miscellaneous matter; for adjusting the compensation of all postmasters not +appointed by the President, by the old method of commissions on the actual +receipts of the office, instead of the present mode of fixing the salary in +advance upon special returns; and especially do I urge favorable action by +Congress on the important recommendations of the Postmaster-General for the +establishment of United States postal savings depositories. +</p> + +<p> +Your attention is also again called to a consideration of the question of +postal telegraphs and the arguments adduced in support thereof, in the hope +that you may take such action in connection therewith as in your judgment +will most contribute to the best interests of the country. +</p> + +<p> +DEPARTMENT OF JUSTICE. +</p> + +<p> +Affairs in Utah require your early and special attention. The Supreme Court +of the United States, in the case of Clinton vs. Englebrecht, decided that +the United States marshal of that Territory could not lawfully summon +jurors for the district courts; and those courts hold that the Territorial +marshal can not lawfully perform that duty, because he is elected by the +legislative assembly, and not appointed as provided for in the act +organizing the Territory. All proceedings at law are practically abolished +by these decisions, and there have been but few or no jury trials in the +district courts of that Territory since the last session of Congress. +Property is left without protection by the courts, and crimes go +unpunished. To prevent anarchy there it is absolutely necessary that +Congress provide the courts with some mode of obtaining jurors, and I +recommend legislation to that end, and also that the probate courts of the +Territory, now assuming to issue writs of injunction and habeas corpus and +to try criminal cases and questions as to land titles, be denied all +jurisdiction not possessed ordinarily by courts of that description. +</p> + +<p> +I have become impressed with the belief that the act approved March 2, +1867, entitled "An act to establish a uniform system of bankruptcy +throughout the United States," is productive of more evil than good at this +time. Many considerations might be urged for its total repeal, but, if this +is not considered advisable, I think it will not be seriously questioned +that those portions of said act providing for what is called involuntary +bankruptcy operate to increase the financial embarrassments of the country. +Careful and prudent men very often become involved in debt in the +transaction of their business, and though they may possess ample property, +if it could be made available for that purpose, to meet all their +liabilities, yet, on account of the extraordinary scarcity of money, they +may be unable to meet all their pecuniary obligations as they become due, +in consequence of which they are liable to be prostrated in their business +by proceedings in bankruptcy at the instance of unrelenting creditors. +People are now so easily alarmed as to monetary matters that the mere +filing of a petition in bankruptcy by an unfriendly creditor will +necessarily embarrass, and oftentimes accomplish the financial ruin, of a +responsible business man. Those who otherwise might make lawful and just +arrangements to relieve themselves from difficulties produced by the +present stringency in money are prevented by their constant exposure to +attack and disappointment by proceedings against them in bankruptcy, and, +besides, the law is made use of in many cases by obdurate creditors to +frighten or force debtors into a compliance with their wishes and into acts +of injustice to other creditors and to themselves. I recommend that so much +of said act as provides for involuntary bankruptcy on account of the +suspension of payment be repealed. +</p> + +<p> +Your careful attention is invited to the subject of claims against the +Government and to the facilities afforded by existing laws for their +prosecution. Each of the Departments of State, Treasury, and War has +demands for many millions of dollars upon its files, and they are rapidly +accumulating. To these may be added those now pending before Congress, the +Court of Claims, and the Southern Claims Commission, making in the +aggregate an immense sum. Most of these grow out of the rebellion, and are +intended to indemnify persons on both sides for their losses during the +war; and not a few of them are fabricated and supported by false testimony. +Projects are on foot, it is believed, to induce Congress to provide for new +classes of claims, and to revive old ones through the repeal or +modification of the statute of limitations, by which they are now barred. I +presume these schemes, if proposed, will be received with little favor by +Congress, and I recommend that persons having claims against the United +States cognizable by any tribunal or Department thereof be required to +present them at an early day, and that legislation be directed as far as +practicable to the defeat of unfounded and unjust demands upon the +Government; and I would suggest, as a means of preventing fraud, that +witnesses be called upon to appear in person to testify before those +tribunals having said claims before them for adjudication. Probably the +largest saving to the National Treasury can be secured by timely +legislation on these subjects of any of the economic measures that will be +proposed. +</p> + +<p> +You will be advised of the operations of the Department of Justice by the +report of the Attorney-General, and I invite your attention to the +amendments of existing laws suggested by him, with the view of reducing the +expenses of that Department. +</p> + +<p> +DEPARTMENT OF THE INTERIOR. +</p> + +<p> +The policy inaugurated toward the Indians at the beginning of the last +Administration has been steadily pursued, and, I believe, with beneficial +results. It will be continued with only such modifications as time and +experience may demonstrate as necessary. +</p> + +<p> +With the encroachment of civilization upon the Indian reservations and +hunting grounds, disturbances have taken place between the Indians and +whites during the past year, and probably will continue to do so until each +race appreciates that the other has rights which must be respected. +</p> + +<p> +The policy has been to collect the Indians as rapidly as possible on +reservations, and as far as practicable within what is known as the Indian +Territory, and to teach them the arts of civilization and self-support. +Where found off their reservations, and endangering the peace and safety of +the whites, they have been punished, and will continue to be for like +offenses. +</p> + +<p> +The Indian Territory south of Kansas and west of Arkansas is sufficient in +area and agricultural resources to support all the Indians east of the +Rocky Mountains. In time, no doubt, all of them, except a few who may elect +to make their homes among white people, will be collected there. As a +preparatory step for this consummation, I am now satisfied that a +Territorial form of government should be given them, which will secure the +treaty rights of the original settlers and protect their homesteads from +alienation for a period of twenty years. +</p> + +<p> +The operations of the Patent Office are growing to such a magnitude and the +accumulation of material is becoming so great that the necessity of more +room is becoming more obvious day by day. I respectfully invite your +attention to the reports of the Secretary of the Interior and Commissioner +of Patents on this subject. +</p> + +<p> +The business of the General Land Office exhibits a material increase in all +its branches during the last fiscal year. During that time there were +disposed of out of the public lands 13,030,606 acres, being an amount +greater by 1,165,631 acres than was disposed of during the preceding year. +Of the amount disposed of, 1,626,266 acres were sold for cash, 214,940 +acres were located with military land warrants, 3,793,612 acres were taken +for homesteads, 653,446 acres were located with agricultural-college scrip, +6,083,536 acres were certified by railroads, 76,576 acres were granted to +wagon roads, 238,548 acres were approved to States as swamp lands, 138,681 +acres were certified for agricultural colleges, common schools, +universities, and seminaries, 190,775 acres were approved to States for +internal improvements, and 14,222 acres were located with Indian scrip. The +cash receipts during the same time were $3,408,515.50, being $190,415.50 in +excess of the receipts of the previous year. During the year 30,488,132 +acres of public land were surveyed, an increase over the amount surveyed +the previous year of 1,037,193 acres, and, added to the area previously +surveyed, aggregates 616,554,895 acres which have been surveyed, leaving +1,218,443,505 acres of the public land still unsurveyed. +</p> + +<p> +The increased and steadily increasing facilities for reaching our +unoccupied public domain and for the transportation of surplus products +enlarge the available field for desirable homestead locations, thus +stimulating settlement and extending year by year in a gradually increasing +ratio the area of occupation and cultivation. +</p> + +<p> +The expressed desire of the representatives of a large colony of citizens +of Russia to emigrate to this country, as is understood, with the consent +of their Government, if certain concessions can be made to enable them to +settle in a compact colony, is of great interest, as going to show the +light in which our institutions are regarded by an industrious, +intelligent, and wealthy people, desirous of enjoying civil and religious +liberty; and the acquisition of so large an immigration of citizens of a +superior class would without doubt be of substantial benefit to the +country. I invite attention to the suggestion of the Secretary of the +Interior in this behalf. +</p> + +<p> +There was paid during the last fiscal year for pensions, including the +expense of disbursement, $29,185,289.62, being an amount less by +$984,050.98 than was expended for the same purpose the preceding year. +Although this statement of expenditures would indicate a material reduction +in amount compared with the preceding year, it is believed that the changes +in the pension laws at the last session of Congress will absorb that amount +the current year. At the close of the last fiscal year there were on the +pension rolls 99,804 invalid military pensioners and 112,088 widows, +orphans, and dependent relatives of deceased soldiers, making a total of +that class of 211,892; 18,266 survivors of the War of 1812 and 5,058 widows +of soldiers of that war pensioned under the act of Congress of February 14, +1871, making a total of that class of 23,319; 1,480 invalid navy pensioners +and 1,770 widows, orphans, and dependent relatives of deceased officers, +sailors, and marines of the Navy, making a total of navy pensioners of +3,200, and a grand total of pensioners of 311 classes of 238,411, showing a +net increase during the last fiscal year of 6,182. During the last year the +names of 16,405 pensioners were added to the rolls, and 10,223 names were +dropped therefrom for various causes. +</p> + +<p> +The system adopted for the detection of frauds against the Government in +the matter of pensions has been productive of satisfactory results, but +legislation is needed to provide, if possible, against the perpetration of +such frauds in future. +</p> + +<p> +The evidently increasing interest in the cause of education is a most +encouraging feature in the general progress and prosperity of the country, +and the Bureau of Education is earnest in its efforts to give proper +direction to the new appliances and increased facilities which are being +offered to aid the educators of the country in their great work. +</p> + +<p> +The Ninth Census has been completed, the report thereof published and +distributed, and the working force of the Bureau disbanded. The Secretary +of the Interior renews his recommendation for a census to be taken in 1875, +to which subject the attention of Congress is invited. The original +suggestion in that behalf has met with the general approval of the country; +and even if it be not deemed advisable at present to provide for a regular +quinquennial census, a census taken in 1875, the report of which could be +completed and published before the one hundredth anniversary of our +national independence, would be especially interesting and valuable, as +showing the progress of the country during the first century of our +national existence. It is believed, however, that a regular census every +five years would be of substantial benefit to the country, inasmuch as our +growth hitherto has been so rapid that the results of the decennial census +are necessarily unreliable as a basis of estimates for the latter years of +a decennial period. +</p> + +<p> +DISTRICT OF COLUMBIA. +</p> + +<p> +Under the very efficient management of the governor and the board of public +works of this District the city of Washington is rapidly assuming the +appearance of a capital of which the nation may well be proud. From being a +most unsightly place three years ago, disagreeable to pass through in +summer in consequence of the dust arising from unpaved streets, and almost +impassable in the winter from the mud, it is now one of the most sightly +cities in the country, and can boast of being the best paved. +</p> + +<p> +The work has been done systematically, the plans, grades, location of +sewers, water and gas mains being determined upon before the work was +commenced, thus securing permanency when completed. I question whether so +much has ever been accomplished before in any American city for the same +expenditures. The Government having large reservations in the city, and the +nation at large having an interest in their capital, I recommend a liberal +policy toward the District of Columbia, and that the Government should bear +its just share of the expense of these improvements. Every citizen visiting +the capital feels a pride in its growing beauty, and that he too is part +owner in the investments made here. +</p> + +<p> +I would suggest to Congress the propriety of promoting the establishment in +this District of an institution of learning, or university of the highest +class, by the donation of lands. There is no place better suited for such +an institution than the national capital. There is no other place in which +every citizen is so directly interested. +</p> + +<p> +CIVIL-SERVICE REFORM. +</p> + +<p> +In three successive messages to Congress I have called attention to the +subject of "civil-service reform." +</p> + +<p> +Action has been taken so far as to authorize the appointment of a board to +devise rules governing methods of making appointments and promotions, but +there never has been any action making these rules, or any rules, binding, +or even entitled to observance, where persons desire the appointment of a +friend or the removal of an official who may be disagreeable to them. +</p> + +<p> +To have any rules effective they must have the acquiescence of Congress as +well as of the Executive. I commend, therefore, the subject to your +attention, and suggest that a special committee of Congress might confer +with the Civil-Service Board during the present session for the purpose of +devising such rules as can be maintained, and which will secure the +services of honest and capable officials, and which will also protect them +in a degree of independence while in office. +</p> + +<p> +Proper rules will protect Congress, as well as the Executive, from much +needless persecution, and will prove of great value to the public at +large. +</p> + +<p> +I would recommend for your favorable consideration the passage of an +enabling act for the admission of Colorado as a State in the Union. It +possesses all the elements of a prosperous State, agricultural and mineral, +and, I believe, has a population now to justify such admission. In +connection with this I would also recommend the encouragement of a canal +for purposes of irrigation from the eastern slope of the Rocky Mountains to +the Missouri River. As a rule I am opposed to further donations of public +lands for internal improvements owned and controlled by private +corporations, but in this instance I would make an exception. Between the +Missouri River and the Rocky Mountains there is an arid belt of public land +from 300 to 500 miles in width, perfectly valueless for the occupation of +man, for the want of sufficient rain to secure the growth of any product. +An irrigating canal would make productive a belt as wide as the supply of +water could be made to spread over across this entire country, and would +secure a cordon of settlements connecting the present population of the +mountain and mining regions with that of the older States. All the land +reclaimed would be clear gain. If alternate sections are retained by the +Government, I would suggest that the retained sections be thrown open to +entry under the homestead laws, or sold to actual settlers for a very low +price. +</p> + +<p> +I renew my previous recommendation to Congress for general amnesty. The +number engaged in the late rebellion yet laboring under disabilities is +very small, but enough to keep up a constant irritation. No possible danger +can accrue to the Government by restoring them to eligibility to hold +office. +</p> + +<p> +I suggest for your consideration the enactment of a law to better secure +the civil rights which freedom should secure, but has not effectually +secured, to the enfranchised slave. +</p> + +<p class="noindent"> +U. S. GRANT +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1874"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 7, 1874<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +Since the convening of Congress one year ago the nation has undergone a +prostration in business and industries such as has not been witnessed with +us for many years. Speculation as to the causes for this prostration might +be indulged in without profit, because as many theories would be advanced +as there would be independent writers--those who expressed their own views +without borrowing--upon the subject. Without indulging in theories as to +the cause of this prostration, therefore, I will call your attention only +to the fact, and to some plain questions as to which it would seem there +should be no disagreement. +</p> + +<p> +During this prostration two essential elements of prosperity have been most +abundant--labor and capital. Both have been largely unemployed. Where +security has been undoubted, capital has been attainable at very moderate +rates. Where labor has been wanted, it has been found in abundance, at +cheap rates compared with what--of necessaries and comforts of life--could +be purchased with the wages demanded. Two great elements of prosperity, +therefore, have not been denied us. A third might be added: Our soil and +climate are unequaled, within the limits of any contiguous territory under +one nationality, for its variety of products to feed and clothe a people +and in the amount of surplus to spare to feed less favored peoples. +Therefore, with these facts in view, it seems to me that wise +statesmanship, at this session of Congress, would dictate legislation +ignoring the past; directing in proper channels these great elements of +prosperity to any people. Debt, debt abroad, is the only element that can, +with always a sound currency, enter into our affairs to cause any continued +depression in the industries and prosperity of our people. +</p> + +<p> +A great conflict for national existence made necessary, for temporary +purposes, the raising of large sums of money from whatever source +attainable. It made it necessary, in the wisdom of Congress--and I do not +doubt their wisdom in the premises, regarding the necessity of the +times--to devise a system of national currency which it proved to be +impossible to keep on a par with the recognized currency of the civilized +world. This begot a spirit of speculation involving an extravagance and +luxury not required for the happiness or prosperity of a people, and +involving, both directly and indirectly, foreign indebtedness. The +currency, being of fluctuating value, and therefore unsafe to hold for +legitimate transactions requiring money, became a subject of speculation +within itself. These two causes, however, have involved us in a foreign +indebtedness, contracted in good faith by borrower and lender, which should +be paid in coin, and according to the bond agreed upon when the debt was +contracted--gold or its equivalent. The good faith of the Government can +not be violated toward creditors without national disgrace. But our +commerce should be encouraged; American shipbuilding and carrying capacity +increased; foreign markets sought for products of the soil and +manufactories, to the end that we may be able to pay these debts. Where a +new market can be created for the sale of our products, either of the soil, +the mine, or the manufactory, a new means is discovered of utilizing our +idle capital and labor to the advantage of the whole people. But, in my +judgment, the first step toward accomplishing this object is to secure a +currency of fixed, stable value; a currency good wherever civilization +reigns; one which, if it becomes superabundant with one people, will find a +market with some other; a currency which has as its basis the labor +necessary to produce it, which will give to it its value. Gold and silver +are now the recognized medium of exchange the civilized world over, and to +this we should return with the least practicable delay. In view of the +pledges of the American Congress when our present legal-tender system was +adopted, and debt contracted, there should be no delay--certainly no +unnecessary delay--in fixing by legislation a method by which we will +return to specie. To the accomplishment of this end I invite your special +attention. I believe firmly that there can be no prosperous and permanent +revival of business and industries until a policy is adopted--with +legislation to carry it out--looking to a return to a specie basis. It is +easy to conceive that the debtor and speculative classes may think it of +value to them to make so-called money abundant until they can throw a +portion of their burdens upon others. But even these, I believe, would be +disappointed in the result if a course should be pursued which will keep in +doubt the value of the legal-tender medium of exchange. A revival of +productive industry is needed by all classes; by none more than the holders +of property, of whatever sort, with debts to liquidate from realization +upon its sale. But admitting that these two classes of citizens are to be +benefited by expansion, would it be honest to give it? Would not the +general loss be too great to justify such relief? Would it not be just as +honest and prudent to authorize each debtor to issue his own legal-tenders +to the extent of his liabilities? Than to do this, would it not be safer, +for fear of overissues by unscrupulous creditors, to say that all debt +obligations are obliterated in the United States, and now we commence anew, +each possessing all he has at the time free from incumbrance? These +propositions are too absurd to be entertained for a moment by thinking or +honest people. Yet every delay in preparation for final resumption partakes +of this dishonesty, and is only less in degree as the hope is held out that +a convenient season will at last arrive for the good work of redeeming our +pledges to commence. It will never come, in my opinion, except by positive +action by Congress, or by national disasters which will destroy, for a time +at least, the credit of the individual and the State at large. A sound +currency might be reached by total bankruptcy and discredit of the +integrity of the nation and of individuals. I believe it is in the power of +Congress at this session to devise such legislation as will renew +confidence, revive all the industries, start us on a career of prosperity +to last for many years and to save the credit of the nation and of the +people. Steps toward the return to a specie basis are the great requisites +to this devoutly to be sought for end. There are others which I may touch +upon hereafter. +</p> + +<p> +A nation dealing in a currency below that of specie in value labors under +two great disadvantages: First, having no use for the world's acknowledged +medium of exchange, gold and silver, these are driven out of the country +because there is no need for their use; second, the medium of exchange in +use being of a fluctuating value--for, after all, it is only worth just +what it will purchase of gold and silver, metals having an intrinsic value +just in proportion to the honest labor it takes to produce them--a larger +margin must be allowed for profit by the manufacturer and producer. It is +months from the date of production to the date of realization. Interest +upon capital must be charged, and risk of fluctuation in the value of that +which is to be received in payment added. Hence high prices, acting as a +protection to the foreign producer, who receives nothing in exchange for +the products of his skill and labor except a currency good, at a stable +value, the world over It seems to me that nothing is clearer than that the +greater part of the burden of existing prostration, for the want of a sound +financial system, falls upon the working man, who must after all produce +the wealth, and the salaried man, who superintends and conducts business. +The burden falls upon them in two ways--by the deprivation of employment +and by the decreased purchasing power of their salaries. It is the duty of +Congress to devise the method of correcting the evils which are +acknowledged to exist, and not mine. But I will venture to suggest two or +three things which seem to me as absolutely necessary to a return to specie +payments, the first great requisite in a return to prosperity. The +legal-tender clause to the law authorizing the issue of currency by the +National Government should be repealed, to take effect as to all contracts +entered into after a day fixed in the repealing act--not to apply, however, +to payments of salaries by Government, or for other expenditures now +provided by law to be paid in currency, in the interval pending between +repeal and final resumption. Provision should be made by which the +Secretary of the Treasury can obtain gold as it may become necessary from +time to time from the date when specie redemption commences. To this might +and should be added a revenue sufficiently in excess of expenses to insure +an accumulation of gold in the Treasury to sustain permanent redemption. +</p> + +<p> +I commend this subject to your careful consideration, believing that a +favorable solution is attainable, and if reached by this Congress that the +present and future generations will ever gratefully remember it as their +deliverer from a thraldom of evil and disgrace. +</p> + +<p> +With resumption, free banking may be authorized with safety, giving the +same full protection to bill holders which they have under existing laws. +Indeed, I would regard free banking as essential. It would give proper +elasticity to the currency. As more currency should be required for the +transaction of legitimate business, new banks would be started, and in turn +banks would wind up their business when it was found that there was a +superabundance of currency. The experience and judgment of the people can +best decide just how much currency is required for the transaction of the +business of the country. It is unsafe to leave the settlement of this +question to Congress, the Secretary of the Treasury, or the Executive. +Congress should make the regulation under which banks may exist, but should +not make banking a monopoly by limiting the amount of redeemable paper +currency that shall be authorized. Such importance do I attach to this +subject, and so earnestly do I commend it to your attention, that I give it +prominence by introducing it at the beginning of this message. +</p> + +<p> +During the past year nothing has occurred to disturb the general friendly +and cordial relations of the United States with other powers. +</p> + +<p> +The correspondence submitted herewith between this Government and its +diplomatic representatives, as also with the representatives of other +countries, shows a satisfactory condition of all questions between the +United States and the most of those countries, and with few exceptions, to +which reference is hereafter made, the absence of any points of difference +to be adjusted. +</p> + +<p> +The notice directed by the resolution of Congress of June 17, 1874, to be +given to terminate the convention of July 17, 1858, between the United +States and Belgium has been given, and the treaty will accordingly +terminate on the 1st day of July, 1875. This convention secured to certain +Belgian vessels entering the ports of the United States exceptional +privileges which are not accorded to our own vessels. Other features of the +convention have proved satisfactory, and have tended to the cultivation of +mutually beneficial commercial intercourse and friendly relations between +the two countries. I hope that negotiations which have been invited will +result in the celebration of another treaty which may tend to the interests +of both countries. +</p> + +<p> +Our relations with China continue to be friendly. During the past year the +fear of hostilities between China and Japan, growing out of the landing of +an armed force upon the island of Formosa by the latter, has occasioned +uneasiness. It is earnestly hoped, however, that the difficulties arising +from this cause will be adjusted, and that the advance of civilization in +these Empires may not be retarded by a state of war. In consequence of the +part taken by certain citizens of the United States in this expedition, our +representatives in those countries have been instructed to impress upon the +Governments of China and Japan the firm intention of this country to +maintain strict neutrality in the event of hostilities, and to carefully +prevent any infraction of law on the part of our citizens. +</p> + +<p> +In connection with this subject I call the attention of Congress to a +generally conceded fact--that the great proportion of the Chinese +immigrants who come to our shores do not come voluntarily, to make their +homes with us and their labor productive of general prosperity, but come +under contracts with headmen, who own them almost absolutely. In a worse +form does this apply to Chinese women. Hardly a perceptible percentage of +them perform any honorable labor, but they are brought for shameful +purposes, to the disgrace of the communities where settled and to the great +demoralization of the youth of those localities. If this evil practice can +be legislated against, it will be my pleasure as well as duty to enforce +any regulation to secure so desirable an end. +</p> + +<p> +It is hoped that negotiations between the Government of Japan and the +treaty powers, looking to the further opening of the Empire and to the +removal of various restrictions upon trade and travel, may soon produce the +results desired, which can not fail to inure to the benefit of all the +parties. Having on previous occasions submitted to the consideration of +Congress the propriety of the release of the Japanese Government from the +further payment of the indemnity under the convention of October 22, 1864, +and as no action had been taken thereon, it became my duty to regard the +obligations of the convention as in force; and as the other powers +interested had received their portion of the indemnity in full, the +minister of the United States in Japan has, in behalf of this Government, +received the remainder of the amount due to the United States under the +convention of Simonosaki. I submit the propriety of applying the income of +a part, if not of the whole, of this fund to the education in the Japanese +language of a number of young men to be under obligations to serve the +Government for a specified time as interpreters at the legation and the +consulates in Japan. A limited number of Japanese youths might at the same +time be educated in our own vernacular, and mutual benefits would result to +both Governments. The importance of having our own citizens, competent and +familiar with the language of Japan, to act as interpreters and in other +capacities connected with the legation and the consulates in that country +can not readily be overestimated. +</p> + +<p> +The amount awarded to the Government of Great Britain by the mixed +commission organized under the provisions of the treaty of Washington in +settlement of the claims of British subjects arising from acts committed +between April 13, 1861, and April 9, 1865, became payable, under the terms +of the treaty, within the past year, and was paid upon the 21st day of +September, 1874. In this connection I renew my recommendation, made at the +opening of the last session of Congress, that a special court be created to +hear and determine all claims of aliens against the United States arising +from acts committed against their persons or property during the +insurrection. It appears equitable that opportunity should be offered to +citizens of other states to present their claims, as well as to those +British subjects whose claims were not admissible under the late +commission, to the early decision of some competent tribunal. To this end I +recommend the necessary legislation to organize a court to dispose of all +claims of aliens of the nature referred to in an equitable and satisfactory +manner, and to relieve Congress and the Departments from the consideration +of these questions. +</p> + +<p> +The legislation necessary to extend to the colony of Newfoundland certain +articles of the treaty of Washington of the 8th day of May, 1871, having +been had, a protocol to that effect was signed in behalf of the United +States and of Great Britain on the 28th day of May last, and was duly +proclaimed on the following day. A copy of the proclamation is submitted +herewith. +</p> + +<p> +A copy of the report of the commissioner appointed under the act of March +19, 1872, for surveying and marking the boundary between the United States +and the British possessions from the Lake of the Woods to the summit of the +Rocky Mountains is herewith transmitted. I am happy to announce that the +field work of the commission has been completed, and the entire line from +the northwest corner of the Lake of the Woods to the summit of the Rocky +Mountains has been run and marked upon the surface of the earth. It is +believed that the amount remaining unexpended of the appropriation made at +the last session of Congress will be sufficient to complete the office +work. I recommend that the authority of Congress be given to the use of the +unexpended balance of the appropriation in the completion of the work of +the commission in making its report and preparing the necessary maps. +</p> + +<p> +The court known as the Court of Commissioners of Alabama Claims, created by +an act of Congress of the last session, has organized and commenced its +work, and it is to be hoped that the claims admissible under the provisions +of the act may be speedily ascertained and paid. +</p> + +<p> +It has been deemed advisable to exercise the discretion conferred upon the +Executive at the last session by accepting the conditions required by the +Government of Turkey for the privilege of allowing citizens of the United +States to hold real estate in the former country, and by assenting to a +certain change in the jurisdiction of courts in the latter. A copy of the +proclamation upon these subjects is herewith communicated. +</p> + +<p> +There has been no material change in our relations with the independent +States of this hemisphere which were formerly under the dominion of Spain. +Marauding on the frontiers between Mexico and Texas still frequently takes +place, despite the vigilance of the civil and military authorities in that +quarter. The difficulty of checking such trespasses along the course of a +river of such length as the Rio Grande, and so often fordable, is obvious. +It is hoped that the efforts of this Government will be seconded by those +of Mexico to the effectual suppression of these acts of wrong. +</p> + +<p> +From a report upon the condition of the business before the American and +Mexican Joint Claims Commission, made by the agent on the part of the +United States, and dated October 28, 1874, it appears that of the 1,017 +claims filed on the part of citizens of the United States, 483 had been +finally decided and 75 were in the hands of the umpire, leaving 462 to be +disposed of; and of the 998 claims filed against the United States, 726 had +been finally decided, I was before the umpire, and 271 remained to be +disposed of. Since the date of such report other claims have been disposed +of, reducing somewhat the number still pending; and others have been passed +upon by the arbitrators. It has become apparent, in view of these figures +and of the fact that the work devolving on the umpire is particularly +laborious, that the commission will be unable to dispose of the entire +number of claims pending prior to the 1st day of February, 1875--the date +fixed for its expiration. Negotiations are pending looking to the securing +of the results of the decisions which have been reached and to a further +extension of the commission for a limited time, which it is confidently +hoped will suffice to bring all the business now before it to a final +close. +</p> + +<p> +The strife in the Argentine Republic is to be deplored, both on account of +the parties thereto and from the probable effects on the interests of those +engaged in the trade to that quarter, of whom the United States are among +the principal. As yet, so far as I am aware, there has been no violation of +our neutrality rights, which, as well as our duties in that respect, it +shall be my endeavor to maintain and observe. +</p> + +<p> +It is with regret I announce that no further payment has been received from +the Government of Venezuela on account of awards in favor of citizens of +the United States. Hopes have been entertained that if that Republic could +escape both foreign and civil war for a few years its great natural +resources would enable it to honor its obligations. Though it is now +understood to be at peace with other countries, a serious insurrection is +reported to be in progress in an important region of that Republic. This +may be taken advantage of as another reason to delay the payment of the +dues of our citizens. +</p> + +<p> +The deplorable strife in Cuba continues without any marked change in the +relative advantages of the contending forces. The insurrection continues, +but Spain has gained no superiority. Six years of strife give to the +insurrection a significance which can not be denied. Its duration and the +tenacity of its adherence, together with the absence of manifested power of +suppression on the part of Spain, can not be controverted, and may make +some positive steps on the part of other powers a matter of self-necessity. +I had confidently hoped at this time to be able to announce the arrangement +of some of the important questions between this Government and that of +Spain, but the negotiations have been protracted. The unhappy intestine +dissensions of Spain command our profound sympathy, and must be accepted as +perhaps a cause of some delay. An early settlement, in part at least, of +the questions between the Governments is hoped. In the meantime, awaiting +the results of immediately pending negotiations, I defer a further and +fuller communication on the subject of the relations of this country and +Spain. +</p> + +<p> +I have again to call the attention of Congress to the unsatisfactory +condition of the existing laws with reference to expatriation and the +election of nationality. Formerly, amid conflicting opinions and decisions, +it was difficult to exactly determine how far the doctrine of perpetual +allegiance was applicable to citizens of the United States. Congress by the +act of the 27th of July, 1868, asserted the abstract right of expatriation +as a fundamental principle of this Government. Notwithstanding such +assertion and the necessity of frequent application of the principle, no +legislation has been had defining what acts or formalities shall work +expatriation or when a citizen shall be deemed to have renounced or to have +lost his citizenship. The importance of such definition is obvious. The +representatives of the United States in foreign countries are continually +called upon to lend their aid and the protection of the United States to +persons concerning the good faith or the reality of whose citizenship there +is at least great question. In some cases the provisions of the treaties +furnish some guide; in others it seems left to the person claiming the +benefits of citizenship, while living in a foreign country, contributing in +no manner to the performance of the duties of a citizen of the United +States, and without intention at any time to return and undertake those +duties, to use the claims to citizenship of the United States simply as a +shield from the performance of the obligations of a citizen elsewhere. +</p> + +<p> +The status of children born of American parents residing in a foreign +country, of American women who have married aliens, of American citizens +residing abroad where such question is not regulated by treaty, are all +sources of frequent difficulty and discussion. Legislation on these and +similar questions, and particularly defining when and under what +circumstances expatriation can be accomplished or is to be presumed, is +especially needed. In this connection I earnestly call the attention of +Congress to the difficulties arising from fraudulent naturalization. The +United States wisely, freely, and liberally offers its citizenship to all +who may come in good faith to reside within its limits on their complying +with certain prescribed reasonable and simple formalities and conditions. +Among the highest duties of the Government is that to afford firm, +sufficient, and equal protection to all its citizens, whether native born +or naturalized. Care should be taken that a right carrying with it such +support from the Government should not be fraudulently obtained, and should +be bestowed only upon full proof of a compliance with the law; and yet +frequent instances are brought to the attention of the Government of +illegal and fraudulent naturalization and of the unauthorized use of +certificates thus improperly obtained. In some cases the fraudulent +character of the naturalization has appeared upon the face of the +certificate itself; in others examination discloses that the holder had not +complied with the law, and in others certificates have been obtained where +the persons holding them not only were not entitled to be naturalized, but +had not even been within the United States at the time of the pretended +naturalization. Instances of each of these classes of fraud are discovered +at our legations, where the certificates of naturalization are presented +either for the purpose of obtaining passports or in demanding the +protection of the legation. When the fraud is apparent on the face of such +certificates, they are taken up by the representatives of the Government +and forwarded to the Department of State. But even then the record of the +court in which the fraudulent naturalization occurred remains, and +duplicate certificates are readily obtainable. Upon the presentation of +these for the issue of passports or in demanding protection of the +Government, the fraud sometimes escapes notice, and such certificates are +not infrequently used in transactions of business to the deception and +injury of innocent parties. Without placing any additional obstacles in the +way of the obtainment of citizenship by the worthy and well-intentioned +foreigner who comes in good faith to cast his lot with ours, I earnestly +recommend further legislation to punish fraudulent naturalization and to +secure the ready cancellation of the record of every naturalization made in +fraud. +</p> + +<p> +Since my last annual message the exchange has been made of the ratification +of treaties of extradition with Belgium, Ecuador, Peru, and Salvador; also +of a treaty of commerce and navigation with Peru, and one of commerce and +consular privileges with Salvador; all of which have been duly proclaimed, +as has also a declaration with Russia with reference to trade-marks. +</p> + +<p> +The report of the Secretary of the Treasury, which by law is made directly +to Congress, and forms no part of this message, will show the receipts and +expenditures of the Government for the last fiscal year, the amount +received from each source of revenue, and the amount paid out for each of +the Departments of Government. It will be observed from this report that +the amount of receipts over expenditures has been but $2,344,882.30 for the +fiscal year ending June 30, 1874, and that for the current fiscal year the +estimated receipts over expenditures will not much exceed $9,000,000. In +view of the large national debt existing and the obligation to add 1 per +cent per annum to the sinking fund, a sum amounting now to over $34,000,000 +per annum, I submit whether revenues should not be increased or +expenditures diminished to reach this amount of surplus. Not to provide for +the sinking fund is a partial failure to comply with the contracts and +obligations of the Government. At the last session of Congress a very +considerable reduction was made in rates of taxation and in the number of +articles submitted to taxation; the question may well be asked, whether or +not, in some instances, unwisely. In connection with this subject, too, I +venture the opinion that the means of collecting the revenue, especially +from imports, have been so embarrassed by legislation as to make it +questionable whether or not large amounts are not lost by failure to +collect, to the direct loss of the Treasury and to the prejudice of the +interests of honest importers and taxpayers. +</p> + +<p> +The Secretary of the Treasury in his report favors legislation looking to +an early return to specie payments, thus supporting views previously +expressed in this message. He also recommends economy in appropriations; +calls attention to the loss of revenue from repealing the tax on tea and +coffee, without benefit to the consumer; recommends an increase of 10 cents +a gallon on whisky, and, further, that no modification be made in the +banking and currency bill passed at the last session of Congress, unless +modification should become necessary by reason of the adoption of measures +for returning to specie payments. In these recommendations I cordially +join. +</p> + +<p> +I would suggest to Congress the propriety of readjusting the tariff so as +to increase the revenue, and at the same time decrease the number of +articles upon which duties are levied. Those articles which enter into our +manufactures and are not produced at home, it seems to me, should be +entered free. Those articles of manufacture which we produce a constituent +part of, but do not produce the whole, that part which we do not produce +should enter free also. I will instance fine wool, dyes, etc. These +articles must be imported to form a part of the manufacture of the higher +grades of woolen goods. Chemicals used as dyes, compounded in medicines, +and used in various ways in manufactures come under this class. The +introduction free of duty of such wools as we do not produce would +stimulate the manufacture of goods requiring the use of those we do +produce, and therefore would be a benefit to home production. There are +many articles entering into "home manufactures" which we do not produce +ourselves the tariff upon which increases the cost of producing the +manufactured article. All corrections in this regard are in the direction +of bringing labor and capital in harmony with each other and of supplying +one of the elements of prosperity so much needed. +</p> + +<p> +The report of the Secretary of War herewith attached, and forming a part of +this message, gives all the information concerning the operations, wants, +and necessities of the Army, and contains many suggestions and +recommendations which I commend to your special attention. +</p> + +<p> +There is no class of Government employees who are harder worked than the +Army--officers and men; none who perform their tasks more cheerfully and +efficiently and under circumstances of greater privations and hardships. +</p> + +<p> +Legislation is desirable to render more efficient this branch of the public +service. All the recommendations of the Secretary of War I regard as +judicious, and I especially commend to your attention the following: The +consolidation of Government arsenals; the restoration of mileage to +officers traveling under orders; the exemption of money received from the +sale of subsistence stores from being covered into the Treasury; the use of +appropriations for the purchase of subsistence stores without waiting for +the beginning of the fiscal year for which the appropriation is made; for +additional appropriations for the collection of torpedo material; for +increased appropriations for the manufacture of arms; for relieving the +various States from indebtedness for arms charged to them during the +rebellion; for dropping officers from the rolls of the Army without trial +for the offense of drawing pay more than once for the same period; for the +discouragement of the plan to pay soldiers by cheek, and for the +establishment of a professorship of rhetoric and English literature at West +Point. The reasons for these recommendations are obvious, and are set forth +sufficiently in the reports attached. I also recommend that the status of +the staff corps of the Army be fixed, where this has not already been done, +so that promotions may be made and vacancies filled as they occur in each +grade when reduced below the number to be fixed by law. The necessity for +such legislation is specially felt now in the Pay Department. The number of +officers in that department is below the number adequate to the performance +of the duties required of them by law. +</p> + +<p> +The efficiency of the Navy has been largely increased during the last year. +Under the impulse of the foreign complications which threatened us at the +commencement of the last session of Congress, most of our efficient wooden +ships were put in condition for immediate service, and the repairs of our +ironclad fleet were pushed with the utmost vigor. The result is that most +of these are now in an effective state and need only to be manned and put +in commission to go at once into service. +</p> + +<p> +Some of the new sloops authorized by Congress are already in commission, +and most of the remainder are launched and wait only the completion of +their machinery to enable them to take their places as part of our +effective force. +</p> + +<p> +Two iron torpedo ships have been completed during the last year, and four +of our large double-turreted ironclads are now undergoing repairs. When +these are finished, everything that is useful of our Navy, as now +authorized, will be in condition for service, and with the advance in the +science of torpedo warfare the American Navy, comparatively small as it is, +will be found at any time powerful for the purposes of a peaceful nation. +</p> + +<p> +Much has been accomplished during the year in aid of science and to +increase the sum of general knowledge and further the interests of commerce +and civilization. Extensive and much-needed soundings have been made for +hydrographic purposes and to fix the proper routes of ocean telegraphs. +Further surveys of the great Isthmus have been undertaken and completed, +and two vessels of the Navy are now employed, in conjunction with those of +England, France, Germany, and Russia, in observations connected with the +transit of Venus, so useful and interesting to the scientific world. +</p> + +<p> +The estimates for this branch of the public service do not differ +materially from those of last year, those for the general support of the +service being somewhat less and those for permanent improvements at the +various stations rather larger than the corresponding estimate made a year +ago. The regular maintenance and a steady increase in the efficiency of +this most important arm in proportion to the growth of our maritime +intercourse and interests is recommended to the attention of Congress. +</p> + +<p> +The use of the Navy in time of peace might be further utilized by a direct +authorization of the employment of naval vessels in explorations and +surveys of the supposed navigable waters of other nationalities on this +continent, especially the tributaries of the two great rivers of South +America, the Orinoco and the Amazon. Nothing prevents, under existing laws, +such exploration, except that expenditures must be made in such expeditions +beyond those usually provided for in the appropriations. The field +designated is unquestionably one of interest and one capable of large +development of commercial interests--advantageous to the peoples reached +and to those who may establish relations with them. +</p> + +<p> +Education of the people entitled to exercise the right of franchise I +regard essential to general prosperity everywhere, and especially so in +republics, where birth, education, or previous condition does not enter +into account in giving suffrage. Next to the public school, the post-office +is the great agent of education over our vast territory. The rapidity with +which new sections are being settled, thus increasing the carrying of mails +in a more rapid ratio than the increase of receipts, is not alarming. The +report of the Postmaster-General herewith attached shows that there was an +increase of revenue in his Department in 1873 over the previous year of +$1,674,411, and an increase of cost of carrying the mails and paying +employees of $3,041,468.91. The report of the Postmaster-General gives +interesting statistics of his Department, and compares them with the +corresponding statistics of a year ago, showing a growth in every branch of +the Department. +</p> + +<p> +A postal convention has been concluded with New South Wales, an exchange of +postal cards established with Switzerland, and the negotiations pending for +several years past with France have been terminated in a convention with +that country, which went into effect last August. +</p> + +<p> +An international postal congress was convened in Berne, Switzerland, in +September last, at which the United States was represented by an officer of +the Post-Office Department of much experience and of qualification for the +position. A convention for the establishment of an international postal +union was agreed upon and signed by the delegates of the countries +represented, subject to the approval of the proper authorities of those +countries. +</p> + +<p> +I respectfully direct your attention to the report of the +Postmaster-General and to his suggestions in regard to an equitable +adjustment of the question of compensation to railroads for carrying the +mails. +</p> + +<p> +Your attention will be drawn to the unsettled condition of affairs in some +of the Southern States. +</p> + +<p> +On the 14th of September last the governor of Louisiana called upon me, as +provided by the Constitution and laws of the United States, to aid in +suppressing domestic violence in that State. This call was made in view of +a proclamation issued on that day by D. B. Penn, claiming that he was +elected lieutenant-governor in 1872, and calling upon the militia of the +State to arm, assemble, and drive from power the usurpers, as he designated +the officers of the State government. On the next day I issued my +proclamation commanding the insurgents to disperse within five days from +the date thereof, and subsequently learned that on that day they had taken +forcible possession of the statehouse. Steps were taken by me to support +the existing and recognized State government, but before the expiration of +the five days the insurrectionary movement was practically abandoned, and +the officers of the State government, with some minor exceptions, resumed +their powers and duties. Considering that the present State administration +of Louisiana has been the only government in that State for nearly two +years; that it has been tacitly acknowledged and acquiesced in as such by +Congress, and more than once expressly recognized by me, I regarded it as +my clear duty, when legally called upon for that purpose, to prevent its +overthrow by an armed mob under pretense of fraud and irregularity in the +election of 1872. I have heretofore called the attention of Congress to +this subject, stating that on account of the frauds and forgeries committed +at said election, and because it appears that the returns thereof were +never legally canvassed, it was impossible to tell thereby who were chosen; +but from the best sources of information at my command I have always +believed that the present State officers received a majority of the legal +votes actually cast at that election. I repeat what I said in my special +message of February 23, 1873, that in the event of no action by Congress I +must continue to recognize the government heretofore recognized by me. +</p> + +<p> +I regret to say that with preparations for the late election decided +indications appeared in some localities in the Southern States of a +determination, by acts of violence and intimidation, to deprive citizens of +the freedom of the ballot because of their political opinions. Bands of +men, masked and armed, made their appearance; White Leagues and other +societies were formed; large quantities of arms and ammunition were +imported and distributed to these organizations; military drills, with +menacing demonstrations, were held, and with all these murders enough were +committed to spread terror among those whose political action was to be +suppressed, if possible, by these intolerant and criminal proceedings. In +some places colored laborers were compelled to vote according to the wishes +of their employers, under threats of discharge if they acted otherwise; and +there are too many instances in which, when these threats were disregarded, +they were remorselessly executed by those who made them. I understand that +the fifteenth amendment to the Constitution was made to prevent this and a +like state of things, and the act of May 31, 1870, with amendments, was +passed to enforce its provisions, the object of both being to guarantee to +all citizens the right to vote and to protect them in the free enjoyment of +that right. Enjoined by the Constitution "to take care that the laws be +faithfully executed," and convinced by undoubted evidence that violations +of said act had been committed and that a widespread and flagrant disregard +of it was contemplated, the proper officers were instructed to prosecute +the offenders, and troops were stationed at convenient points to aid these +officers, if necessary, in the performance of their official duties. +Complaints are made of this interference by Federal authority; but if said +amendment and act do not provide for such interference under the +circumstances as above stated, then they are without meaning, force, or +effect, and the whole scheme of colored enfranchisement is worse than +mockery and little better than a crime. Possibly Congress may find it due +to truth and justice to ascertain, by means of a committee, whether the +alleged wrongs to colored citizens for political purposes are real or the +reports thereof were manufactured for the occasion. +</p> + +<p> +The whole number of troops in the States of Louisiana, Alabama, Georgia, +Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, +Mississippi, Maryland, and Virginia at the time of the election was 4,082. +This embraces the garrisons of all the forts from the Delaware to the Gulf +of Mexico. +</p> + +<p> +Another trouble has arisen in Arkansas. Article 13 of the constitution of +that State (which was adopted in 1868, and upon the approval of which by +Congress the State was restored to representation as one of the States of +the Union) provides in effect that before any amendments proposed to this +constitution shall become a part thereof they shall be passed by two +successive assemblies and then submitted to and ratified by a majority of +the electors of the State voting thereon. On the 11th of May, 1874, the +governor convened an extra session of the general assembly of the State, +which on the 18th of the same month passed an act providing for a +convention to frame a new constitution. Pursuant to this act, and at an +election held on the 30th of June, 1874, the convention was approved, and +delegates were chosen thereto, who assembled on the 14th of last July and +framed a new constitution, the schedule of which provided for the election +of an entire new set of State officers in a manner contrary to the then +existing election laws of the State. On the 13th of October, 1874, this +constitution, as therein provided, was submitted to the people for their +approval or rejection, and according to the election returns was approved +by a large majority of those qualified to vote thereon; and at the same +election persons were chosen to fill all the State, county, and township +offices. The governor elected in 1872 for the term of four years turned +over his office to the governor chosen under the new constitution, +whereupon the lieutenant-governor, also elected in 1872 for a term of four +years, claiming to act as governor, and alleging that said proceedings by +which the new constitution was made and a new set of officers elected were +unconstitutional, illegal, and void, called upon me, as provided in section +4, Article IV, of the Constitution, to protect the State against domestic +violence. As Congress is now investigating the political affairs of +Arkansas, I have declined to interfere. +</p> + +<p> +The whole subject of Executive interference with the affairs of a State is +repugnant to public opinion, to the feelings of those who, from their +official capacity, must be used in such interposition, and to him or those +who must direct. Unless most clearly on the side of law, such interference +becomes a crime; with the law to support it, it is condemned without a +heating. I desire, therefore, that all necessity for Executive direction in +local affairs may become unnecessary and obsolete. I invite the attention, +not of Congress, but of the people of the United States, to the causes and +effects of these unhappy questions. Is there not a disposition on one side +to magnify wrongs and outrages, and on the other side to belittle them or +justify them? If public opinion could be directed to a correct survey of +what is and to rebuking wrong and aiding the proper authorities in +punishing it, a better state of feeling would be inculcated, and the sooner +we would have that peace which would leave the States free indeed to +regulate their own domestic affairs. I believe on the part of our citizens +of the Southern States--the better part of them--there is a disposition to +be law abiding, and to do no violence either to individuals or to the laws +existing. But do they do right in ignoring the existence of violence and +bloodshed in resistance to constituted authority? I sympathize with their +prostrate condition, and would do all in my power to relieve them, +acknowledging that in some instances they have had most trying governments +to live under, and very oppressive ones in the way of taxation for nominal +improvements, not giving benefits equal to the hardships imposed. But can +they proclaim themselves entirely irresponsible for this condition? They +can not. Violence has been rampant in some localities, and has either been +justified or denied by those who could have prevented it. The theory is +even raised that there is to be no further interference on the part of the +General Government to protect citizens within a State where the State +authorities fail to give protection. This is a great mistake. While I +remain Executive all the laws of Congress and the provisions of the +Constitution, including the recent amendments added thereto, will be +enforced with rigor, but with regret that they should have added one jot or +tittle to Executive duties or powers. Let there be fairness in the +discussion of Southern questions, the advocates of both or all political +parties giving honest, truthful reports of occurrences, condemning the +wrong and upholding the tight, and soon all will be well. Under existing +conditions the negro votes the Republican ticket because he knows his +friends are of that party. Many a good citizen votes the opposite, not +because he agrees with the great principles of state which separate +parties, but because, generally, he is opposed to negro rule. This is a +most delusive cry. Treat the negro as a citizen and a voter, as he is and +must remain, and soon parties will be divided, not on the color line, but +on principle. Then we shall have no complaint of sectional interference. +</p> + +<p> +The report of the Attorney-General contains valuable recommendations +relating to the administration of justice in the courts of the United +States, to which I invite your attention. +</p> + +<p> +I respectfully suggest to Congress the propriety of increasing the number +of judicial districts in the United States to eleven (the present number +being nine) and the creation of two additional judgeships. The territory to +be traversed by the circuit judges is so great and the business of the +courts so steadily increasing that it is growing more and more impossible +for them to keep up with the business requiring their attention. Whether +this would involve the necessity of adding two more justices of the Supreme +Court to the present number I submit to the judgment of Congress. +</p> + +<p> +The attention of Congress is invited to the report of the Secretary of the +Interior and to the legislation asked for by him. The domestic interests of +the people are more intimately connected with this Department than with +either of the other Departments of Government. Its duties have been added +to from time to time until they have become so onerous that without the +most perfect system and order it will be impossible for any Secretary of +the Interior to keep trace of all official transactions having his sanction +and done in his name, and for which he is held personally responsible. +</p> + +<p> +The policy adopted for the management of Indian affairs, known as the peace +policy, has been adhered to with most beneficial results. It is confidently +hoped that a few years more will relieve our frontiers from danger of +Indian depredations. +</p> + +<p> +I commend the recommendation of the Secretary for the extension of the +homestead laws to the Indians and for some sort of Territorial government +for the Indian Territory. A great majority of the Indians occupying this +Territory are believed yet to be incapable of maintaining their rights +against the more civilized and enlightened white man. Any Territorial form +of government given them, therefore, should protect them in their homes and +property for a period of at least twenty years, and before its final +adoption should be ratified by a majority of those affected. +</p> + +<p> +The report of the Secretary of the Interior herewith attached gives much +interesting statistical information, which I abstain from giving an +abstract of, but refer you to the report itself. +</p> + +<p> +The act of Congress providing the oath which pensioners must subscribe to +before drawing their pensions cuts off from this bounty a few survivors of +the War of 1812 residing in the Southern States. I recommend the +restoration of this bounty to all such. The number of persons whose names +would thus be restored to the list of pensioners is not large. They are all +old persons, who could have taken no part in the rebellion, and the +services for which they were awarded pensions were in defense of the whole +country. +</p> + +<p> +The report of the Commissioner of Agriculture herewith contains suggestions +of much interest to the general public, and refers to the sly approaching +Centennial and the part his Department is ready to take in it. I feel that +the nation at large is interested in having this exposition a success, and +commend to Congress such action as will secure a greater general interest +in it. Already many foreign nations have signified their intention to be +represented at it, and it may be expected that every civilized nation will +be represented. +</p> + +<p> +The rules adopted to improve the civil service of the Government have been +adhered to as closely as has been practicable with the opposition with +which they meet. The effect, I believe, has been beneficial on the whole, +and has tended to the elevation of the service. But it is impracticable to +maintain them without direct and positive support of Congress. Generally +the support which this reform receives is from those who give it their +support only to find fault when the rules are apparently departed from. +Removals from office without preferring charges against parties removed are +frequently cited as departures from the rules adopted, and the retention of +those against whom charges are made by irresponsible persons and without +good grounds is also often condemned as a violation of them. Under these +circumstances, therefore, I announce that if Congress adjourns without +positive legislation on the subject of "civil-service reform" I will regard +such action as a disapproval of the system, and will abandon it, except so +far as to require examinations for certain appointees, to determine their +fitness. Competitive examinations will be abandoned. +</p> + +<p> +The gentlemen who have given their services, without compensation, as +members of the board to devise rules and regulations for the government of +the civil service of the country have shown much zeal and earnestness in +their work, and to them, as well as to myself, it will be a source of +mortification if it is to be thrown away. But I repeat that it is +impossible to carry this system to a successful issue without general +approval and assistance and positive law to support it. +</p> + +<p> +I have stated that three elements of prosperity to the nation--capital, +labor, skilled and unskilled, and products of the soil--still remain with +us. To direct the employment of these is a problem deserving the most +serious attention of Congress. If employment can be given to all the labor +offering itself, prosperity necessarily follows. I have expressed the +opinion, and repeat it, that the first requisite to the accomplishment of +this end is the substitution of a sound currency in place of one of a +fluctuating value. This secured, there are many interests that might be +fostered to the great profit of both labor and capital. How to induce +capital to employ labor is the question. The subject of cheap +transportation has occupied the attention of Congress. Much new light on +this question will without doubt be given by the committee appointed by the +last Congress to investigate and report upon this subject. +</p> + +<p> +A revival of shipbuilding, and particularly of iron steamship building, is +of vast importance to our national prosperity. The United States is now +paying over $100,000,000 per annum for freights and passage on foreign +ships--to be carried abroad and expended in the employment and support of +other peoples--beyond a fair percentage of what should go to foreign +vessels, estimating on the tonnage and travel of each respectively. It is +to be regretted that this disparity in the carrying trade exists, and to +correct it I would be willing to see a great departure from the usual +course of Government in supporting what might usually be termed private +enterprise. I would not suggest as a remedy direct subsidy to American +steamship lines, but I would suggest the direct offer of ample compensation +for carrying the mails between Atlantic Seaboard cities and the Continent +on American-owned and American-built steamers, and would extend this +liberality to vessels carrying the mails to South American States and to +Central America and Mexico, and would pursue the same policy from our +Pacific seaports to foreign seaports on the Pacific. It might be demanded +that vessels built for this service should come up to a standard fixed by +legislation in tonnage, speed, and all other qualities, looking to the +possibility of Government requiring them at some time for war purposes. The +right also of taking possession of them in such emergency should be +guarded. +</p> + +<p> +I offer these suggestions, believing them worthy of consideration, in all +seriousness, affecting all sections and all interests alike. If anything +better can be done to direct the country into a course of general +prosperity, no one will be more ready than I to second the plan. +</p> + +<p> +Forwarded herewith will be found the report of the commissioners appointed +under an act of Congress approved June 20, 1874, to wind up the affairs of +the District government. It will be seen from the report that the net debt +of the District of Columbia, less securities on hand and available, is: +</p> + +<p> +Bonded debt issued prior to July 1, 1874 - - $8,883,940.93 +</p> + +<p> +3.65 bonds, act of Congress June 20, 1874 - - 2,088,168.73 +</p> + +<p> +Certificates of the board of audit - - 4,770,558.45 +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1875"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 7, 1875<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +In submitting my seventh annual message to Congress, in this centennial +year of our national existence as a free and independent people, it affords +me great pleasure to recur to the advancement that has been made from the +time of the colonies, one hundred years ago. We were then a people +numbering only 3,000,000. Now we number more than 40,000,000. Then +industries were confined almost exclusively to the tillage of the soil. Now +manufactories absorb much of the labor of the country. +</p> + +<p> +Our liberties remain unimpaired; the bondmen have been freed from slavery; +we have become possessed of the respect, if not the friendship, of all +civilized nations. Our progress has been great in all the arts--in science, +agriculture, commerce, navigation, mining, mechanics, law, medicine, etc.; +and in general education the progress is likewise encouraging. Our thirteen +States have become thirty-eight, including Colorado (which has taken the +initiatory steps to become a State), and eight Territories, including the +Indian Territory and Alaska, and excluding Colorado, making a territory +extending from the Atlantic to the Pacific. On the south we have extended +to the Gulf of Mexico, and in the west from the Mississippi to the +Pacific. +</p> + +<p> +One hundred years ago the cotton gin, the steamship, the railroad, the +telegraph, the reaping, sewing, and modern printing machines, and numerous +other inventions of scarcely less value to our business and happiness were +entirely unknown. +</p> + +<p> +In 1776 manufactories scarcely existed even in name in all this vast +territory. In 1870 more than 2,000,000 persons were employed in +manufactories, producing more than $2,100,000,000 of products in amount +annually, nearly equal to our national debt. From nearly the whole of the +population of 1776 being engaged in the one occupation of agriculture, in +1870 so numerous and diversified had become the occupation of our people +that less than 6,000,000 out of more than 40,000,000 were so engaged. The +extraordinary effect produced in our country by a resort to diversified +occupations has built a market for the products of fertile lands distant +from the seaboard and the markets of the world. +</p> + +<p> +The American system of locating various and extensive manufactories next to +the plow and the pasture, and adding connecting railroads and steamboats, +has produced in our distant interior country a result noticeable by the +intelligent portions of all commercial nations. The ingenuity and skill of +American mechanics have been demonstrated at home and abroad in a manner +most flattering to their pride. But for the extraordinary genius and +ability of our mechanics, the achievements of our agriculturists, +manufacturers, and transporters throughout the country would have been +impossible of attainment. +</p> + +<p> +The progress of the miner has also been great. Of coal our production has +small; now many millions of tons are mined annually. So with iron, which +formed scarcely an appreciable part of our products half a century ago, we +now produce more than the world consumed at the beginning of our national +existence. Lead, zinc, and copper, from being articles of import, we may +expect to be large exporters of in the near future. The development of gold +and silver mines in the United States and Territories has not only been +remarkable, but has had a large influence upon the business of all +commercial nations. Our merchants in the last hundred years have had a +success and have established a reputation for enterprise, sagacity, +progress, and integrity unsurpassed by peoples of older nationalities. This +"good name" is not confined to their homes, but goes out upon every sea and +into every port where commerce enters. With equal pride we can point to our +progress in all of the learned professions. +</p> + +<p> +As we are now about to enter upon our second centennial--commenting our +manhood as a nation--it is well to look back upon the past and study what +will be best to preserve and advance our future greatness From the fall of +Adam for his transgression to the present day no nation has ever been free +from threatened danger to its prosperity and happiness. We should look to +the dangers threatening us, and remedy them so far as lies in our power. We +are a republic whereof one man is as good as another before the law. Under +such a form of government it is of the greatest importance that all should +be possessed of education and intelligence enough to cast a vote with a +right understanding of its meaning. A large association of ignorant men can +not for any considerable period oppose a successful resistance to tyranny +and oppression from the educated few, but will inevitably sink into +acquiescence to the will of intelligence, whether directed by the demagogue +or by priestcraft. Hence the education of the masses becomes of the first +necessity for the preservation of our institutions. They are worth +preserving, because they have secured the greatest good to the greatest +proportion of the population of any form of government yet devised. All +other forms of government approach it just in proportion to the general +diffusion of education and independence of thought and action. As the +primary step, therefore, to our advancement in all that has marked our +progress in the past century, I suggest for your earnest consideration, and +most earnestly recommend it, that a constitutional amendment be submitted +to the legislatures of the several States for ratification, making it the +duty of each of the several States to establish and forever maintain free +public schools adequate to the education of all the children in the +rudimentary branches within their respective limits, irrespective of sex, +color, birthplace, or religions; forbidding the teaching in said schools of +religious, atheistic, or pagan tenets; and prohibiting the granting of any +school funds or school taxes, or any part thereof, either by legislative, +municipal, or other authority, for the benefit or in aid, directly or +indirectly, of any religious sect or denomination, or in aid or for the +benefit of any other object of any nature or kind whatever. +</p> + +<p> +In connection with this important question I would also call your attention +to the importance of correcting an evil that, if permitted to continue, +will probably lead to great trouble in our land before the close of the +nineteenth century. It is the accumulation of vast amounts of untaxed +church property. +</p> + +<p> +In 1850, I believe, the church property of the United States which paid no +tax, municipal or State, amounted to about $83,000,000. In 1860 the amount +had doubled; in 1875 it is about $1,000,000,000. By 1900, without check, it +is safe to say this property will reach a sum exceeding $3,000,000,000. So +vast a sum, receiving all the protection and benefits of Government without +bearing its proportion of the burdens and expenses of the same, will not be +looked upon acquiescently by those who have to pay the taxes. In a growing +country, where real estate enhances so rapidly with time as in the United +States, there is scarcely a limit to the wealth that may be acquired by +corporations, religious or otherwise, if allowed to retain real estate +without taxation. The contemplation of so vast a property as here alluded +to, without taxation, may lead to sequestration without constitutional +authority and through blood. +</p> + +<p> +I would suggest the taxation of all property equally, whether church or +corporation, exempting only the last resting place of the dead and +possibly, with proper restrictions, church edifices. +</p> + +<p> +Our relations with most of the foreign powers continue on a satisfactory +and friendly footing. +</p> + +<p> +Increased intercourse, the extension of commerce, and the cultivation of +mutual interests have steadily improved our relations with the large +majority of the powers of the world, rendering practicable the peaceful +solution of questions which from time to time necessarily arise, leaving +few which demand extended or particular notice. +</p> + +<p> +The correspondence of the Department of State with our diplomatic +representatives abroad is transmitted herewith. +</p> + +<p> +I am happy to announce the passage of an act by the General Cortes of +Portugal, proclaimed since the adjournment of Congress, for the abolition +of servitude in the Portuguese colonies. It is to be hoped that such +legislation may be another step toward the great consummation to be +reached, when no man shall be permitted, directly or indirectly, under any +guise, excuse, or form of law, to hold his fellow-man in bondage. I am of +opinion also that it is the duty of the United States, as contributing +toward that end, and required by the spirit of the age in which we live, to +provide by suitable legislation that no citizen of the United States shall +hold slaves as property in any other country or be interested therein. +</p> + +<p> +Chile has made reparation in the case of the whale ship Good Return, seized +without sufficient cause upward of forty years ago. Though she had hitherto +denied her accountability, the denial was never acquiesced in by this +Government, and the justice of the claim has been so earnestly contended +for that it has been gratifying that she should have at last acknowledged +it. +</p> + +<p> +The arbitrator in the case of the United States steamer Montijo, for the +seizure and detention of which the Government of the United States of +Colombia was held accountable, has decided in favor of the claim. This +decision has settled a question which had been pending for several years, +and which, while it continued open, might more or less disturb the good +understanding which it is desirable should be maintained between the two +Republics. +</p> + +<p> +A reciprocity treaty with the King of the Hawaiian Islands was concluded +some months since. As it contains a stipulation that it shall not take +effect until Congress shall enact the proper legislation for that purpose, +copies of the instrument are herewith submitted, in order that, if such +should be the pleasure of Congress, the necessary legislation upon the +subject may be adopted. +</p> + +<p> +In March last an arrangement was made, through Mr. Cushing, our minister in +Madrid, with the Spanish Government for the payment by the latter to the +United States of the sum of $80,000 in coin, for the purpose of the relief +of the families or persons of the ship's company and certain passengers of +the Virginius. This sum was to have been paid in three installments at two +months each. It is due to the Spanish Government that I should state that +the payments were fully and spontaneously anticipated by that Government, +and that the whole amount was paid within but a few days more than two +months from the date of the agreement, a copy of which is herewith +transmitted. In pursuance of the terms of the adjustment, I have directed +the distribution of the amount among the parties entitled thereto, +including the ship's company and such of the passengers as were American +citizens. Payments are made accordingly, on the application by the parties +entitled thereto. +</p> + +<p> +The past year has furnished no evidence of an approaching termination of +the ruinous conflict which has been raging for seven years in the +neighboring island of Cuba. The same disregard of the laws of civilized +warfare and of the just demands of humanity which has heretofore called +forth expressions of condemnation from the nations of Christendom has +continued to blacken the sad scene. Desolation, ruin, and pillage are +pervading the rich fields of one of the most fertile and productive regions +of the earth, and the incendiary's torch, firing plantations and valuable +factories and buildings, is the agent marking the alternate advance or +retreat of contending parties. +</p> + +<p> +The protracted continuance of this strife seriously affects the interests +of all commercial nations, but those of the United States more than others, +by reason of close proximity, its larger trade and intercourse with Cuba, +and the frequent and intimate personal and social relations which have +grown up between its citizens and those of the island. Moreover, the +property of our citizens in Cuba is large, and is rendered insecure and +depreciated in value and in capacity of production by the continuance of +the strife and the unnatural mode of its conduct. The same is true, +differing only in degree, with respect to the interests and people of other +nations; and the absence of any reasonable assurance of a near termination +of the conflict must of necessity soon compel the States thus suffering to +consider what the interests of their own people and their duty toward +themselves may demand. +</p> + +<p> +I have hoped that Spain would be enabled to establish peace in her colony, +to afford security to the property and the interests of our citizens, and +allow legitimate scope to trade and commerce and the natural productions of +the island. Because of this hope, and from an extreme reluctance to +interfere in the most remote manner in the affairs of another and a +friendly nation, especially of one whose sympathy and friendship in the +struggling infancy of our own existence must ever be remembered with +gratitude, I have patiently and anxiously waited the progress of events. +Our own civil conflict is too recent for us not to consider the +difficulties which surround a government distracted by a dynastic rebellion +at home at the same time that it has to cope with a separate insurrection +in a distant colony. But whatever causes may have produced the situation +which so grievously affects our interests, it exists, with all its +attendant evils operating directly upon this country and its people. Thus +far all the efforts of Spain have proved abortive, and time has marked no +improvement in the situation. The armed bands of either side now occupy +nearly the same ground as in the past, with the difference, from time to +time, of more lives sacrificed, more property destroyed, and wider extents +of fertile and productive fields and more and more of valuable property +constantly wantonly sacrificed to the incendiary's torch. +</p> + +<p> +In contests of this nature, where a considerable body of people who have +attempted to free themselves of the control of the superior government have +reached such point in occupation of territory, in power, and in general +organization as to constitute in fact a body politic; having a government +in substance as well as in name; possessed of the elements of stability and +equipped with the machinery for the administration of internal policy and +the execution of its laws; prepared and able to administer justice at home, +as well as in its dealings with other powers, it is within the province of +those other powers to recognize its existence as a new and independent +nation. In such cases other nations simply deal with an actually existing +condition of things, and recognize as one of the powers of the earth that +body politic which, possessing the necessary elements, has in fact become a +new power. In a word, the creation of a new state is a fact. +</p> + +<p> +To establish the condition of things essential to the recognition of this +fact there must be a people occupying a known territory, united under some +known and defined form of government, acknowledged by those subject +thereto, in which the functions of government are administered by usual +methods, competent to mete out justice to citizens and strangers, to afford +remedies for public and for private wrongs, and able to assume the +correlative international obligations and capable of performing the +corresponding international duties resulting from its acquisition of the +rights of sovereignty. A power should exist complete in its organization, +ready to take and able to maintain its place among the nations of the +earth. +</p> + +<p> +While conscious that the insurrection in Cuba has shown a strength and +endurance which make it at least doubtful whether it be in the power of +Spain to subdue it, it seems unquestionable that no such civil organization +exists which may be recognized as an independent government capable of +performing its international obligations and entitled to be treated as one +of the powers of the earth. A recognition under such circumstances would be +inconsistent with the facts, and would compel the power granting it soon to +support by force the government to which it had really given its only claim +of existence. In my judgment the United States should adhere to the policy +and the principles which have heretofore been its sure and safe guides in +like contests between revolted colonies and their mother country, and, +acting only upon the clearest evidence, should avoid any possibility of +suspicion or of imputation. +</p> + +<p> +A recognition of the independence of Cuba being, in my opinion, +impracticable and indefensible, the question which next presents itself is +that of the recognition of belligerent rights in the parties to the +contest. +</p> + +<p> +In a former message to Congress I had occasion to consider this question, +and reached the conclusion that the conflict in Cuba, dreadful and +devastating as were its incidents, did not rise to the fearful dignity of +war. Regarding it now, after this lapse of time, I am unable to see that +any notable success or any marked or real advance on the part of the +insurgents has essentially changed the character of the contest. It has +acquired greater age, but not greater or more formidable proportions. It is +possible that the acts of foreign powers, and even acts of Spain herself, +of this very nature, might be pointed to in defense of such recognition. +But now, as in its past history, the United States should carefully avoid +the false lights which might lead it into the mazes of doubtful law and of +questionable propriety, and adhere rigidly and sternly to the rule, which +has been its guide, of doing only that which is right and honest and of +good report. The question of according or of withholding rights of +belligerency must be judged in every case in view of the particular +attending facts. Unless justified by necessity, it is always, and justly, +regarded as an unfriendly act and a gratuitous demonstration of moral +support to the rebellion. It is necessary, and it is required, when the +interests and rights of another government or of its people are so far +affected by a pending civil conflict as to require a definition of its +relations to the parties thereto. But this conflict must be one which will +be recognized in the sense of international law as war. Belligerence, too, +is a fact. The mere existence of contending armed bodies and their +occasional conflicts do not constitute war in the sense referred to. +Applying to the existing condition of affairs in Cuba the tests recognized +by publicists and writers on international law, and which have been +observed by nations of dignity, honesty, and power when free from sensitive +or selfish and unworthy motives, I fail to find in the insurrection the +existence of such a substantial political organization, real, palpable, and +manifest to the world, having the forms and capable of the ordinary +functions of government toward its own people and to other states, with +courts for the administration of justice, with a local habitation, +possessing such organization of force, such material, such occupation of +territory, as to take the contest out of the category of a mere rebellious +insurrection or occasional skirmishes and place it on the terrible footing +of war, to which a recognition of belligerency would aim to elevate it. The +contest, moreover, is solely on land; the insurrection has not possessed +itself of a single seaport whence it may send forth its flag, nor has it +any means of communication with foreign powers except through the military +lines of its adversaries. No apprehension of any of those sudden and +difficult complications which a war upon the ocean is apt to precipitate +upon the vessels, both commercial and national, and upon the consular +officers of other powers calls for the definition of their relations to the +parties to the contest. Considered as a question of expediency, I regard +the accordance of belligerent rights still to be as unwise and premature as +I regard it to be, at present, indefensible as a measure of right. Such +recognition entails upon the country according the rights which flow from +it difficult and complicated duties, and requires the exaction from the +contending parties of the strict observance of their rights and +obligations; it confers the right of search upon the high seas by vessels +of both parties; it would subject the carrying of arms and munitions of +war, which now may be transported freely and without interruption in the +vessels of the United States, to detention and to possible seizure; it +would give rise to countless vexatious questions, would release the parent +Government from responsibility for acts done by the insurgents, and would +invest Spain with the right to exercise the supervision recognized by our +treaty of 1795 over our commerce on the high seas, a very large part of +which, in its traffic between the Atlantic and the Gulf States and between +all of them and the States on the Pacific, passes through the waters which +wash the shores of Cuba. The exercise of this supervision could scarce fail +to lead, if not to abuses, certainly to collisions perilous to the peaceful +relations of the two States. There can be little doubt to what result such +supervision would before long draw this nation. It would be unworthy of the +United States to inaugurate the possibilities of such result by measures of +questionable right or expediency or by any indirection. Apart from any +question of theoretical right, I am satisfied that while the accordance of +belligerent rights to the insurgents in Cuba might give them a hope and an +inducement to protract the struggle, it would be but a delusive hope, and +would not remove the evils which this Government and its people are +experiencing, but would draw the United States into complications which it +has waited long and already suffered much to avoid. The recognition of +independence or of belligerency being thus, in my judgment, equally +inadmissible, it remains to consider what course shall be adopted should +the conflict not soon be brought to an end by acts of the parties +themselves, and should the evils which result therefrom, affecting all +nations, and particularly the United States, continue. In such event I am +of opinion that other nations will be compelled to assume the +responsibility which devolves upon them, and to seriously consider the only +remaining measures possible--mediation and intervention, Owing, perhaps, to +the large expanse of water separating the island from the peninsula, the +want of harmony and of personal sympathy between the inhabitants of the +colony and those sent thither to rule them, and want of adaptation of the +ancient colonial system of Europe to the present times and to the ideas +which the events of the past century have developed, the contending parties +appear to have within themselves no depository of common confidence to +suggest wisdom when passion and excitement have their sway and to assume +the part of peacemaker. In this view in the earlier days of the contest the +good offices of the United States as a mediator were tendered in good +faith, without any selfish purpose, in the interest of humanity and in +sincere friendship for both parties, but were at the time declined by +Spain, with the declaration, nevertheless, that at a future time they would +be indispensable. No intimation has been received that in the opinion of +Spain that time has been reached. And yet the strife continues, with all +its dread horrors and all its injuries to the interests of the United +States and of other nations. Each party seems quite capable of working +great injury and damage to the other, as well as to all the relations and +interests dependent on the existence of peace in the island; but they seem +incapable of reaching any adjustment, and both have thus far failed of +achieving any success whereby one party shall possess and control the +island to the exclusion of the other. Under these circumstances the agency +of others, either by mediation or by intervention, seems to be the only +alternative which must, sooner or later, be invoked for the termination of +the strife. At the same time, while thus impressed I do not at this time +recommend the adoption of any measure of intervention. I shall be ready at +all times, and as the equal friend of both parties, to respond to a +suggestion that the good offices of the United States will be acceptable to +aid in bringing about a peace honorable to both. It is due to Spain, so far +as this Government is concerned, that the agency of a third power, to which +I have adverted, shall be adopted only as a last expedient. Had it been the +desire of the United States to interfere in the affairs of Cuba, repeated +opportunities for so doing have been presented within the last few years; +but we have remained passive, and have performed our whole duty and all +international obligations to Spain with friendship, fairness, and fidelity, +and with a spirit of patience and forbearance which negatives every +possible suggestion of desire to interfere or to add to the difficulties +with which she has been surrounded. +</p> + +<p> +The Government of Spain has recently submitted to our minister at Madrid +certain proposals which it is hoped may be found to be the basis, if not +the actual submission, of terms to meet the requirements of the particular +griefs of which this Government has felt itself entitled to complain. These +proposals have not yet reached me in their full text. On their arrival they +will be taken into careful examination, and may, I hope, lead to a +satisfactory adjustment of the questions to which they refer and remove the +possibility of future occurrences such as have given rise to our just +complaints. +</p> + +<p> +It is understood also that renewed efforts are being made to introduce +reforms in the internal administration of the island. Persuaded, however, +that a proper regard for the interests of the United States and of its +citizens entitles it to relief from the strain to which it has been +subjected by the difficulties of the questions and the wrongs and losses +which arise from the contest in Cuba, and that the interests of humanity +itself demand the cessation of the strife before the whole island shall be +laid waste and larger sacrifices of life be made, I shall feel it my duty, +should my hopes of a satisfactory adjustment and of the early restoration +of peace and the removal of future causes of complaint be, unhappily, +disappointed, to make a further communication to Congress at some period +not far remote, and during the present session, recommending what may then +seem to me to be necessary. +</p> + +<p> +The free zone, so called, several years since established by the Mexican +Government in certain of the States of that Republic adjacent to our +frontier, remains in full operation. It has always been materially +injurious to honest traffic, for it operates as an incentive to traders in +Mexico to supply without customs charges the wants of inhabitants on this +side of the line, and prevents the same wants from being supplied by +merchants of the United States, thereby to a considerable extent defrauding +our revenue and checking honest commercial enterprise. +</p> + +<p> +Depredations by armed bands from Mexico on the people of Texas near the +frontier continue. Though the main object of these incursions is robbery, +they frequently result in the murder of unarmed and peaceably disposed +persons, and in some instances even the United States post-offices and mail +communications have been attacked. Renewed remonstrances upon this subject +have been addressed to the Mexican Government, but without much apparent +effect. The military force of this Government disposable for service in +that quarter is quite inadequate to effectually guard the line, even at +those points where the incursions are usually made. An experiment of an +armed vessel on the Rio Grande for that purpose is on trial, and it is +hoped that, if not thwarted by the shallowness of the river and other +natural obstacles, it may materially contribute to the protection of the +herdsmen of Texas. +</p> + +<p> +The proceedings of the joint commission under the convention between the +United States and Mexico of the 4th of July, 1868, on the subject of +claims, will soon be brought to a close. The result of those proceedings +will then be communicated to Congress. +</p> + +<p> +I am happy to announce that the Government of Venezuela has, upon further +consideration, practically abandoned its objection to pay to the United +States that share of its revenue which some years since it allotted toward +the extinguishment of the claims of foreigners generally. In thus +reconsidering its determination that Government has shown a just sense of +self-respect which can not fail to reflect credit upon it in the eyes of +all disinterested persons elsewhere. It is to be regretted, however, that +its payments on account of claims of citizens of the United States are +still so meager in amount, and that the stipulations of the treaty in +regard to the sums to be paid and the periods when those payments were to +take place should have been so signally disregarded. +</p> + +<p> +Since my last annual message the exchange has been made of the ratification +of a treaty of commerce and navigation with Belgium, and of conventions +with the Mexican Republic for the further extension of the joint commission +respecting claims; with the Hawaiian Islands for commercial reciprocity, +and with the Ottoman Empire for extradition; all of which have been duly +proclaimed. +</p> + +<p> +The Court of Commissioners of Alabama Claims has prosecuted its important +duties very assiduously and very satisfactorily. It convened and was +organized on the 22d day of July, 1874, and by the terms of the act under +which it was created was to exist for one year from that date. The act +provided, however, that should it be found impracticable to complete the +work of the court before the expiration of the year the President might by +proclamation extend the time of its duration to a period not more than six +months beyond the expiration of the one year. +</p> + +<p> +Having received satisfactory evidence that it would be impracticable to +complete the work within the time originally fixed, I issued a proclamation +(a copy of which is presented herewith) extending the time of duration of +the court for a period of six months from and after the 22d day of July +last. +</p> + +<p> +A report made through the clerk of the court (communicated herewith) shows +the condition of the calendar on the 1st of November last and the large +amount of work which has been accomplished. One thousand three hundred and +eighty-two claims have been presented, of which 682 had been disposed of at +the date of the report. I am informed that 170 cases were decided during +the month of November. Arguments are being made and decisions given in the +remaining cases with all the dispatch consistent with the proper +consideration of the questions submitted. Many of these claims are in +behalf of mariners, or depend on the evidence of mariners, whose absence +has delayed the taking or the return of the necessary evidence. +</p> + +<p> +It is represented to me that it will be impracticable for the court to +finally dispose of all the cases before it within the present limit of its +duration. Justice to the parties claimant, who have been at large expense +in preparing their claims and obtaining the evidence in their support, +suggests a short extension, to enable the court to dispose of all of the +claims which have been presented. +</p> + +<p> +I recommend the legislation which may be deemed proper to enable the court +to complete the work before it. +</p> + +<p> +I recommend that some suitable provision be made, by the creation of a +special court or by conferring the necessary jurisdiction upon some +appropriate tribunal, for the consideration and determination of the claims +of aliens against the Government of the United States which have arisen +within some reasonable limitation of time, or which may hereafter arise, +excluding all claims barred by treaty provisions or otherwise. It has been +found impossible to give proper consideration to these claims by the +Executive Departments of the Government. Such a tribunal would afford an +opportunity to aliens other than British subjects to present their claims +on account of acts committed against their persons or property during the +rebellion, as also to those subjects of Great Britain whose claims, having +arisen subsequent to the 9th day of April, 1865, could not be presented to +the late commission organized pursuant to the provisions of the treaty of +Washington. +</p> + +<p> +The electric telegraph has become an essential and indispensable agent in +the transmission of business and social messages. Its operation on land, +and within the limit of particular states, is necessarily under the control +of the jurisdiction within which it operates. The lines on the high seas, +however, are not subject to the particular control of any one government. +</p> + +<p> +In 1869 a concession was granted by the French Government to a company +which proposed to lay a cable from the shores of France to the United +States. At that time there was a telegraphic connection between the United +States and the continent of Europe (through the possessions of Great +Britain at either end of the line), under the control of an association +which had, at large outlay of capital and at great risk, demonstrated the +practicability of maintaining such means of communication. The cost of +correspondence by this agency was great, possibly not too large at the time +for a proper remuneration for so hazardous and so costly an enterprise. It +was, however, a heavy charge upon a means of communication which the +progress in the social and commercial intercourse of the world found to be +a necessity, and the obtaining of this French concession showed that other +capital than that already invested was ready to enter into competition, +with assurance of adequate return for their outlay. Impressed with the +conviction that the interests, not only of the people of the United States, +but of the world at large, demanded, or would demand, the multiplication of +such means of communication between separated continents, I was desirous +that the proposed connection should be made; but certain provisions of this +concession were deemed by me to be objectionable, particularly one which +gave for a long term of years the exclusive right of telegraphic +communication by submarine cable between the shores of France and the +United States. I could not concede that any power should claim the right to +land a cable on the shores of the United States and at the same time deny +to the United States, or to its citizens or grantees, an equal fight to +land a cable on its shores. The right to control the conditions for the +laying of a cable within the jurisdictional waters of the United States, to +connect our shores with those of any foreign state, pertains exclusively to +the Government of the United States, under such limitations and conditions +as Congress may impose. In the absence of legislation by Congress I was +unwilling, on the one hand, to yield to a foreign state the right to say +that its grantees might land on our shores while it denied a similar right +to our people to land on its shores, and, on the other hand, I was +reluctant to deny to the great interests of the world and of civilization +the facilities of such communication as were proposed. I therefore withheld +any resistance to the landing of the cable on condition that the offensive +monopoly feature of the concession be abandoned, and that the right of any +cable which may be established by authority of this Government to land upon +French territory and to connect with French land lines and enjoy all the +necessary facilities or privileges incident to the use thereof upon as +favorable terms as any other company be conceded. As the result thereof the +company in question renounced the exclusive privilege, and the +representative of France was informed that, understanding this +relinquishment to be construed as granting the entire reciprocity and equal +facilities which had been demanded, the opposition to the landing of the +cable was withdrawn. The cable, under this French concession, was landed in +the month of July, 1869, and has been an efficient and valuable agent of +communication between this country and the other continent. It soon passed +under the control, however, of those who had the management of the cable +connecting Great Britain with this continent, and thus whatever benefit to +the public might have ensued from competition between the two lines was +lost, leaving only the greater facilities of an additional line and the +additional security in case of accident to one of them. But these increased +facilities and this additional security, together with the control of the +combined capital of the two companies, gave also greater power to prevent +the future construction of other lines and to limit the control of +telegraphic communication between the two continents to those possessing +the lines already laid. Within a few months past a cable has been laid, +known as the United States Direct Cable Company, connecting the United +States directly with Great Britain. As soon as this cable was reported to +be laid and in working order the rates of the then existing consolidated +companies were greatly reduced. Soon, however, a break was announced in +this new cable, and immediately the rates of the other line, which had been +reduced, were again raised. This cable being now repaired, the rates appear +not to be reduced by either line from those formerly charged by the +consolidated companies. +</p> + +<p> +There is reason to believe that large amounts of capital, both at home and +abroad, are ready to seek profitable investment in the advancement of this +useful and most civilizing means of intercourse and correspondence. They +await, however, the assurance of the means and conditions on which they may +safely be made tributary to the general good. +</p> + +<p> +As these cable telegraph lines connect separate states, there are questions +as to their organization and control which probably can be best, if not +solely, settled by conventions between the respective states. In the +absence, however, of international conventions on the subject, municipal +legislation may secure many points which appear to me important, if not +indispensable for the protection of the public against the extortions which +may result from a monopoly of the right of operating cable telegrams or +from a combination between several lines: +</p> + +<p> +I. No line should be allowed to land on the shores of the United States +under the concession from another power which does not admit the right of +any other line or lines, formed in the United States, to land and freely +connect with and operate through its land lines. +</p> + +<p> +II. No line should be allowed to land on the shores of the United States +which is not, by treaty stipulation with the government from whose shores +it proceeds, or by prohibition in its charter, or otherwise to the +satisfaction of this Government, prohibited from consolidating or +amalgamating with any other cable telegraph line, or combining therewith +for the purpose of regulating and maintaining the cost of telegraphing. +</p> + +<p> +III. All lines should be bound to give precedence in the transmission of +the official messages of the governments of the two countries between which +it may be laid. +</p> + +<p> +IV. A power should be reserved to the two governments, either conjointly or +to each, as regards the messages dispatched from its shores, to fix a limit +to the charges to be demanded for the transmission of messages. +</p> + +<p> +I present this subject to the earnest consideration of Congress. +</p> + +<p> +In the meantime, and unless Congress otherwise direct, I shall not oppose +the landing of any telegraphic cable which complies with and assents to the +points above enumerated, but will feel it my duty to prevent the landing of +any which does not conform to the first and second points as stated, and +which will not stipulate to concede to this Government the precedence in +the transmission of its official messages and will not enter into a +satisfactory arrangement with regard to its charges. +</p> + +<p> +Among the pressing and important subjects to which, in my opinion, the +attention of Congress should be directed are those relating to fraudulent +naturalization and expatriation. +</p> + +<p> +The United States, with great liberality, offers its citizenship to all who +in good faith comply with the requirements of law. These requirements are +as simple and upon as favorable terms to the emigrant as the high privilege +to which he is admitted can or should permit. I do not propose any +additional requirements to those which the law now demands; but the very +simplicity and the want of unnecessary formality in our law have made +fraudulent naturalization not infrequent, to the discredit and injury of +all honest citizens, whether native or naturalized. Cases of this character +are continually being brought to the notice of the Government by our +representatives abroad, and also those of persons resident in other +countries, most frequently those who, if they have remained in this country +long enough to entitle them to become naturalized, have generally not much +overpassed that period, and have returned to the country of their origin, +where they reside, avoiding all duties to the United States by their +absence, and claiming to be exempt from all duties to the country of their +nativity and of their residence by reason of their alleged naturalization. +It is due to this Government itself and to the great mass of the +naturalized citizens who entirely, both in name and in fact, become +citizens of the United States that the high privilege of citizenship of the +United States should not be held by fraud or in derogation of the laws and +of the good name of every honest citizen. On many occasions it has been +brought to the knowledge of the Government that certificates of +naturalization are held and protection or interference claimed by parties +who admit that not only they were not within the United States at the time +of the pretended naturalization, but that they have never resided in the +United States; in others the certificate and record of the court show on +their face that the person claiming to be naturalized had not resided the +required time in the United States; in others it is admitted upon +examination that the requirements of law have not been complied with; in +some cases, even, such certificates have been matter of purchase. These are +not isolated cases, arising at rare intervals, but of common occurrence, +and which are reported from all quarters of the globe. Such occurrences can +not, and do not, fail to reflect upon the Government and injure all honest +citizens. Such a fraud being discovered, however, there is no practicable +means within the control of the Government by which the record of +naturalization can be vacated; and should the certificate be taken up, as +it usually is, by the diplomatic and consular representatives of the +Government to whom it may have been presented, there is nothing to prevent +the person claiming to have been naturalized from obtaining a new +certificate from the court in place of that which has been taken from him. +</p> + +<p> +The evil has become so great and of such frequent occurrence that I can not +too earnestly recommend that some effective measures be adopted to provide +a proper remedy and means for the vacating of any record thus fraudulently +made, and of punishing the guilty parties to the transaction. +</p> + +<p> +In this connection I refer also to the question of expatriation and the +election of nationality. +</p> + +<p> +The United States was foremost in upholding the right of expatriation, and +was principally instrumental in overthrowing the doctrine of perpetual +allegiance. Congress has declared the right of expatriation to be a natural +and inherent right of all people; but while many other nations have enacted +laws providing what formalities shall be necessary to work a change of +allegiance, the United States has enacted no provisions of law and has in +no respect marked out how and when expatriation may be accomplished by its +citizens. Instances are brought to the attention of the Government where +citizens of the United States, either naturalized or native born, have +formally become citizens or subjects of foreign powers, but who, +nevertheless, in the absence of any provisions of legislation on this +question, when involved in difficulties or when it seems to be their +interest, claim to be citizens of the United States and demand the +intervention of a Government which they have long since abandoned and to +which for years they have rendered no service nor held themselves in any +way amenable. +</p> + +<p> +In other cases naturalized citizens, immediately after naturalization, have +returned to their native country; have become engaged in business; have +accepted offices or pursuits inconsistent with American citizenship, and +evidence no intent to return to the United States until called upon to +discharge some duty to the country where they are residing, when at once +they assert their citizenship and call upon the representatives of the +Government to aid them in their unjust pretensions. It is but justice to +all bona fide citizens that no doubt should exist on such questions, and +that Congress should determine by enactment of law how expatriation may be +accomplished and change of citizenship be established. +</p> + +<p> +I also invite your attention to the necessity of regulating by law the +status of American women who may marry foreigners, and of defining more +fully that of children born in a foreign country of American parents who +may reside abroad; and also of some further provision regulating or giving +legal effect to marriages of American citizens contracted in foreign +countries. The correspondence submitted herewith shows a few of the +constantly occurring questions on these points presented to the +consideration of the Government. There are few subjects to engage the +attention of Congress on which more delicate relations or more important +interests are dependent. +</p> + +<p> +In the month of July last the building erected for the Department of State +was taken possession of and occupied by that Department. I am happy to +announce that the archives and valuable papers of the Government in the +custody of that Department are now safely deposited and properly cared +for. +</p> + +<p> +The report of the Secretary of the Treasury shows the receipts from customs +for the fiscal year ending June 30, 1874, to have been $163,103,833.69, and +for the fiscal year ending June 30, 1875, to have been $157,267,722.35, a +decrease for the last fiscal year of $5,936,111.34. Receipts from internal +revenue for the year ending the 30th of June, 1874, were $102,409,784.90, +and for the year ending June 30, 1875, $110,007,493.58; increase, +$7,597,708.68. +</p> + +<p> +The report also shows a complete history of the workings of the Department +for the last year, and contains recommendations for reforms and for +legislation which I concur in, but can not comment on so fully as I should +like to do if space would permit, but will confine myself to a few +suggestions which I look upon as vital to the best interests of the whole +people--coming within the purview of "Treasury;" I mean specie resumption. +Too much stress can not be laid upon this question, and I hope Congress may +be induced, at the earliest day practicable, to insure the consummation of +the act of the last Congress, at its last session, to bring about specie +resumption "on and after the 1st of January, 1879," at furthest. It would +be a great blessing if this could be consummated even at an earlier day. +</p> + +<p> +Nothing seems to me more certain than that a full, healthy, and permanent +reaction can not take place in favor of the industries and financial +welfare of the country until we return to a measure of values recognized +throughout the civilized world. While we use a currency not equivalent to +this standard the world's recognized standard, specie, becomes a commodity +like the products of the soil, the surplus seeking a market wherever there +is a demand for it. +</p> + +<p> +Under our present system we should want none, nor would we have any, were +it not that customs dues must be paid in coin and because of the pledge to +pay interest on the public debt in coin. The yield of precious metals would +flow out for the purchase of foreign productions and the United States +"hewers of wood and drawers of water," because of wiser legislation on the +subject of finance by the nations with whom we have dealings. I am not +prepared to say that I can suggest the best legislation to secure the end +most heartily recommended. It will be a source of great gratification to me +to be able to approve any measure of Congress looking effectively toward +securing "resumption." +</p> + +<p> +Unlimited inflation would probably bring about specie payments more +speedily than any legislation looking to redemption of the legal-tenders in +coin; but it would be at the expense of honor. The legal-tenders would have +no value beyond settling present liabilities, or, properly speaking, +repudiating them. They would buy nothing after debts were all settled. +</p> + +<p> +There are a few measures which seem to me important in this connection and +which I commend to your earnest consideration: +</p> + +<p> +A repeal of so much of the legal-tender act as makes these notes receivable +for debts contracted after a date to be fixed in the act itself, say not +later than the 1st of January, 1877. We should then have quotations at real +values, not fictitious ones. Gold would no longer be at a premium, but +currency at a discount. A healthy reaction would set in at once, and with +it a desire to make the currency equal to what it purports to be. The +merchants, manufacturers, and tradesmen of every calling could do business +on a fair margin of profit, the money to be received having an unvarying +value. Laborers and all classes who work for stipulated pay or salary would +receive more for their income, because extra profits would no longer be +charged by the capitalists to compensate for the risk of a downward +fluctuation in the value of the currency. +</p> + +<p> +Second. That the Secretary of the Treasury be authorized to redeem, say, +not to exceed $2,000,000 monthly of legal-tender notes, by issuing in their +stead a long bond, bearing interest at the rate of 3.65 per cent per annum, +of denominations ranging from $50 up to $1,000 each. This would in time +reduce the legal-tender notes to a volume that could be kept afloat without +demanding redemption in large sums suddenly. +</p> + +<p> +Third. That additional power be given to the Secretary of the Treasury to +accumulate gold for final redemption, either by increasing revenue, +curtailing expenses, or both (it is preferable to do both); and I recommend +that reduction of expenditures be made wherever it can be done without +impairing Government obligations or crippling the due execution thereof. +One measure for increasing the revenue--and the only one I think of--is the +restoration of the duty on tea and coffee. These duties would add probably +$18,000,000 to the present amount received from imports, and would in no +way increase the prices paid for those articles by the consumers. +</p> + +<p> +These articles are the products of countries collecting revenue from +exports, and as we, the largest consumers, reduce the duties they +proportionately increase them. With this addition to the revenue, many +duties now collected, and which give but an insignificant return for the +cost of collection, might be remitted, and to the direct advantage of +consumers at home. +</p> + +<p> +I would mention those articles which enter into manufactures of all sorts. +All duty paid upon such articles goes directly to the cost of the article +when manufactured here, and must be paid for by the consumers. These duties +not only come from the consumers at home, but act as a protection to +foreign manufacturers of the same completed articles in our own and distant +markets. +</p> + +<p> +I will suggest or mention another subject bearing upon the problem of "how +to enable the Secretary of the Treasury to accumulate balances." It is to +devise some better method of verifying claims against the Government than +at present exists through the Court of Claims, especially those claims +growing out of the late war. Nothing is more certain than that a very large +percentage of the amounts passed and paid are either wholly fraudulent or +are far in excess of the real losses sustained. The large amount of losses +proven--on good testimony according to existing laws, by affidavits of +fictitious or unscrupulous persons--to have been sustained on small farms +and plantations are not only far beyond the possible yield of those places +for any one year, but, as everyone knows who has had experience in tilling +the soil and who has visited the scenes of these spoliations, are in many +instances more than the individual claimants were ever worth, including +their personal and real estate. +</p> + +<p> +The report of the Attorney-General, which will be submitted to Congress at +an early day, will contain a detailed history of awards made and of claim +pending of the class here referred to. +</p> + +<p> +The report of the Secretary of War, accompanying this message, gives a +detailed account of Army operations for the year just passed, expenses for +maintenance, etc., with recommendations for legislation to which I +respectfully invite your attention. To some of these I invite special +attention: +</p> + +<p> +First. The necessity of making $300,000 of the appropriation for the +Subsistence Department available before the beginning of the next fiscal +year. Without this provision troops at points distant from supply +production must either go without food or existing laws must be violated. +It is not attended with cost to the Treasury. +</p> + +<p> +Second. His recommendation for the enactment of a system of annuities for +the families of deceased officers by voluntary deductions from the monthly +pay of officers. This again is not attended with burden upon the Treasury, +and would for the future relieve much distress which every old army officer +has witnessed in the past--of officers dying suddenly or being killed, +leaving families without even the means of reaching their friends, if +fortunate enough to have friends to aid them. +</p> + +<p> +Third. The repeal of the law abolishing mileage, and a return to the old +system. +</p> + +<p> +Fourth. The trial with torpedoes under the Corps of Engineers, and +appropriation for the same. Should war ever occur between the United States +and any maritime power, torpedoes will be among if not the most effective +and cheapest auxiliary for the defense of harbors, and also in aggressive +operations, that we can have. Hence it is advisable to learn by experiment +their best construction and application, as well as effect. +</p> + +<p> +Fifth. A permanent organization for the Signal-Service Corps. This service +has now become a necessity of peace as well as war, under the advancement +made by the present able management. +</p> + +<p> +Sixth. A renewal of the appropriation for compiling the official records of +the war, etc. +</p> + +<p> +The condition of our Navy at this time is a subject of satisfaction. It +does not contain, it is true, any of the powerful cruising ironclads which +make so much of the maritime strength of some other nations, but neither +our continental situation nor our foreign policy requires that we should +have a large number of ships of this character, while this situation and +the nature of our ports combine to make those of other nations little +dangerous to us under any circumstances. +</p> + +<p> +Our Navy does contain, however, a considerable number of ironclads of the +monitor class, which, though not properly cruisers, are powerful and +effective for harbor defense and for operations near our own shores. Of +these all the single-turreted ones, fifteen in number, have been +substantially rebuilt, their rotten wooden beams replaced with iron, their +hulls strengthened, and their engines and machinery thoroughly repaired, so +that they are now in the most efficient condition and ready for sea as soon +as they can be manned and put in commission. +</p> + +<p> +The five double-turreted ironclads belonging to our Navy, by far the most +powerful of our ships for fighting purposes, are also in hand undergoing +complete repairs, and could be ready for sea in periods varying from four +to six months. With these completed according to the present design and our +two iron torpedo boats now ready, our ironclad fleet will be, for the +purposes of defense at home, equal to any force that can readily be brought +against it. +</p> + +<p> +Of our wooden navy also cruisers of various sizes, to the number of about +forty, including those now in commission, are in the Atlantic, and could be +ready for duty as fast as men could be enlisted for those not already in +commission. Of these, one-third are in effect new ships, and though some of +the remainder need considerable repairs to their boilers and machinery, +they all are, or can readily be made, effective. +</p> + +<p> +This constitutes a fleet of more than fifty war ships, of which fifteen are +ironclad, now in hand on the Atlantic coast. The Navy has been brought to +this condition by a judicious and practical application of what could be +spared from the current appropriations of the last few years and from that +made to meet the possible emergency of two years ago. It has been done +quietly, without proclamation or display, and though it has necessarily +straitened the Department in its ordinary expenditure, and, as far as the +ironclads are concerned, has added nothing to the cruising force of the +Navy, yet the result is not the less satisfactory because it is to be found +in a great increase of real rather than apparent force. The expenses +incurred in the maintenance of an effective naval force in all its branches +are necessarily large, but such force is essential to our position, +relations, and character, and affects seriously the weight of our +principles and policy throughout the whole sphere of national +responsibilities. +</p> + +<p> +The estimates for the regular support of this branch of the service for the +next year amount to a little less in the aggregate than those made for the +current year; but some additional appropriations are asked for objects not +included in the ordinary maintenance of the Navy, but believed to be of +pressing importance at this time. It would, in my opinion, be wise at once +to afford sufficient means for the immediate completion of the five +double-turreted monitors now undergoing repairs, which must otherwise +advance slowly, and only as money can be spared from current expenses. +Supplemented by these, our Navy, armed with the destructive weapons of +modern warfare, manned by our seamen, and in charge of our instructed +officers, will present a force powerful for the home purposes of a +responsible though peaceful nation. +</p> + +<p> +The report of the Postmaster-General herewith transmitted gives a full +history of the workings of the Department for the year just past. It will +be observed that the deficiency to be supplied from the General Treasury is +increased over the amount required for the preceding year. In a country so +vast in area as the United States, with large portions sparsely settled, it +must be expected that this important service will be more or less a burden +upon the Treasury for many years to come. But there is no branch of the +public service which interests the whole people more than that of cheap and +rapid transmission of the mails to every inhabited part of our territory. +Next to the free school, the post-office is the great educator of the +people, and it may well receive the support of the General Government. +</p> + +<p> +The subsidy of $150,000 per annum given to vessels of the United States for +carrying the mails between New York and Rio de Janeiro having ceased on the +30th day of September last, we are without direct mail facilities with the +South American States. This is greatly to be regretted, and I do not +hesitate to recommend the authorization of a renewal of that contract, and +also that the service may be increased from monthly to semi-monthly trips. +The commercial advantages to be gained by a direct line of American +steamers to the South American States will far outweigh the expense of the +service. +</p> + +<p> +By act of Congress approved March 3, 1875, almost all matter, whether +properly mail matter or not, may be sent any distance through the mails, in +packages not exceeding 4 pounds in weight, for the sum of 16 cents per +pound. So far as the transmission of real mail matter goes, this would seem +entirely proper; but I suggest that the law be so amended as to exclude +from the mails merchandise of all descriptions, and limit this +transportation to articles enumerated, and which may be classed as mail +matter proper. +</p> + +<p> +The discovery of gold in the Black Hills, a portion of the Sioux +Reservation, has had the effect to induce a large emigration of miners to +that point. Thus far the effort to protect the treaty rights of the Indians +to that section has been successful, but the next year will certainly +witness a large increase of such emigration. The negotiations for the +relinquishment of the gold fields having failed, it will be necessary for +Congress to adopt some measures to relieve the embarrassment growing out of +the causes named. The Secretary of the Interior suggests that the supplies +now appropriated for the sustenance of that people, being no longer +obligatory under the treaty of 1868, but simply a gratuity, may be issued +or withheld at his discretion. +</p> + +<p> +The condition of the Indian Territory, to which I have referred in several +of my former annual messages, remains practically unchanged. The Secretary +of the Interior has taken measures to obtain a full report of the condition +of that Territory, and will make it the subject of a special report at an +early day. It may then be necessary to make some further recommendation in +regard to legislation for the government of that Territory. +</p> + +<p> +The steady growth and increase of the business of the Patent Office +indicates in some measure the progress of the industrial activity of the +country. The receipts of the office are in excess of its expenditures, and +the office generally is in a prosperous and satisfactory condition. +</p> + +<p> +The report of the General Land Office shows that there were 2,459,601 acres +less disposed of during this than during the last year. More than one-half +of this decrease was in lands disposed of under the homestead and +timber-culture laws. The cause of this decrease is supposed to be found in +the grasshopper scourge and the droughts which prevailed so extensively in +some of the frontier States and Territories during that time as to +discourage and deter entries by actual settlers. The cash receipts were +less by $690,322.23 than during the preceding year. +</p> + +<p> +The entire surveyed area of the public domain is 680,253,094 acres, of +which 26,077,531 acres were surveyed during the past year, leaving +1,154,471,762 acres still unsurveyed. +</p> + +<p> +The report of the Commissioner presents many interesting suggestions in +regard to the management and disposition of the public domain and the +modification of existing laws, the apparent importance of which should +insure for them the careful consideration of Congress. +</p> + +<p> +The number of pensioners still continues to decrease, the highest number +having been reached during the year ending June 30, 1873. During the last +year 11,557 names were added to the rolls, and 12,977 were dropped +therefrom, showing a net decrease of 1,420. But while the number of +pensioners has decreased, the annual amount due on the pension rolls has +increased $44,733.13. This is caused by the greatly increased average rate +of pensions, which, by the liberal legislation of Congress, has increased +from $90.26 in 1872 to $103.91 in 1875 to each invalid pensioner, an +increase in the average rate of 15 per cent in the three years. During the +year ending June 30, 1875, there was paid on account of pensions, including +the expenses of disbursement, $29,683,116, being $910,632 less than was +paid the preceding year. This reduction in amount of expenditures was +produced by the decrease in the amount of arrearages due on allowed claims +and on pensions the rate of which was increased by the legislation of the +preceding session of Congress. At the close of the last fiscal year there +were on the pension rolls 234,821 persons, of whom 210,363 were army +pensioners, 105,478 being invalids and 104,885 widows and dependent +relatives; 3,420 were navy pensioners, of whom 1,636 were invalids and +1,784 widows and dependent relatives; 21,038 were pensioners of the War of +1812, 15,875 of whom were survivors and 5,163 were widows. +</p> + +<p> +It is estimated that $29,535,000 will be required for the payment of +pensions for the next fiscal year, an amount $965,000 less than the +estimate for the present year. +</p> + +<p> +The geological explorations have been prosecuted with energy during the +year, covering an area of about 40,000 square miles in the Territories of +Colorado, Utah, and New Mexico, developing the agricultural and mineral +resources and furnishing interesting scientific and topographical details +of that region. +</p> + +<p> +The method for the treatment of the Indians adopted at the beginning of my +first term has been steadily pursued, and with satisfactory and encouraging +results. It has been productive of evident improvement in the condition of +that race, and will be continued, with only such modifications as further +experience may indicate to be necessary. +</p> + +<p> +The board heretofore appointed to take charge of the articles and materials +pertaining to the War, the Navy, the Treasury, the Interior, and the +Post-Office Departments, and the Department of Agriculture, the Smithsonian +Institution, and the Commission of Food Fishes, to be contributed, under +the legislation of last session, to the international exhibition to be held +at Philadelphia during the centennial year 1876, has been diligent in the +discharge of the duties which have devolved upon it; and the preparations +so far made with the means at command give assurance that the governmental +contribution will be made one of the marked characteristics of the +exhibition. The board has observed commendable economy in the matter of the +erection of a building for the governmental exhibit, the expense of which +it is estimated will not exceed, say, $80,000. This amount has been +withdrawn, under the law, from the appropriations of five of the principal +Departments, which leaves some of those Departments without sufficient +means to render their respective practical exhibits complete and +satisfactory. The exhibition being an international one, and the Government +being a voluntary contributor, it is my opinion that its contribution +should be of a character, in quality and extent, to sustain the dignity and +credit of so distinguished a contributor. The advantages to the country of +a creditable display are, in an international point of view, of the first +importance, while an indifferent or uncreditable participation by the +Government would be humiliating to the patriotic feelings of our people +themselves. I commend the estimates of the board for the necessary +additional appropriations to the favorable consideration of Congress. +</p> + +<p> +The powers of Europe almost without exception, many of the South American +States, and even the more distant Eastern powers have manifested their +friendly sentiments toward the United States and the interest of the world +in our progress by taking steps to join with us in celebrating the +centennial of the nation, and I strongly recommend that a more national +importance be given to this exhibition by such legislation and by such +appropriation as will insure its success. Its value in bringing to our +shores innumerable useful works of art and skill, the commingling of the +citizens of foreign countries and our own, and the interchange of ideas and +manufactures will far exceed any pecuniary outlay we may make. +</p> + +<p> +I transmit herewith the report of the Commissioner of Agriculture, together +with the reports of the Commissioners, the board of audit, and the board of +health of the District of Columbia, to all of which I invite your +attention. +</p> + +<p> +The Bureau of Agriculture has accomplished much in disseminating useful +knowledge to the agriculturist, and also in introducing new and useful +productions adapted to our soil and climate, and is worthy of the continued +encouragement of the Government. +</p> + +<p> +The report of the Commissioner of Education, which accompanies the report +of the Secretary of the Interior, shows a gratifying progress in +educational matters. +</p> + +<p> +In nearly every annual message that I have had the honor of transmitting to +Congress I have called attention to the anomalous, not to say scandalous, +condition of affairs existing in the Territory of Utah, and have asked for +definite legislation to correct it. That polygamy should exist in a free, +enlightened, and Christian country, without the power to punish so flagrant +a crime against decency and morality, seems preposterous. True, there is no +law to sustain this unnatural vice; but what is needed is a law to punish +it as a crime, and at the same time to fix the status of the innocent +children, the offspring of this system, and of the possibly innocent plural +wives. But as an institution polygamy should be banished from the land. +</p> + +<p> +While this is being done I invite the attention of Congress to another, +though perhaps no less an evil--the importation of Chinese women, but few +of whom are brought to our shores to pursue honorable or useful +occupations. +</p> + +<p> +Observations while visiting the Territories of Wyoming, Utah, and Colorado +during the past autumn convinced me that existing laws regulating the +disposition of public lands, timber, etc., and probably the mining laws +themselves, are very defective and should be carefully amended, and at an +early day. Territory where cultivation of the soil can only be followed by +irrigation, and where irrigation is not practicable the lands can only be +used as pasturage, and this only where stock can reach water (to quench its +thirst), can not be governed by the same laws as to entries as lands every +acre of which is an independent estate by itself. +</p> + +<p> +Land must be held in larger quantities to justify the expense of conducting +water upon it to make it fruitful, or to justify utilizing it as pasturage. +The timber in most of the Territories is principally confined to the +mountain regions, which are held for entry in small quantities only, and as +mineral lands. The timber is the property of the United States, for the +disposal of which there is now no adequate law. The settler must become a +consumer of this timber, whether he lives upon the plain or engages in +working the mines. Hence every man becomes either a trespasser himself or +knowingly a patron of trespassers. +</p> + +<p> +My opportunities for observation were not sufficient to justify me in +recommending specific legislation on these subjects, but I do recommend +that a joint committee of the two Houses of Congress, sufficiently large to +be divided into subcommittees, be organized to visit all the mining States +and Territories during the coming summer, and that the committee shall +report to Congress at the next session such laws or amendments to laws as +it may deem necessary to secure the best interests of the Government and +the people of these Territories, who are doing so much for their +development. +</p> + +<p> +I am sure the citizens occupying the territory described do not wish to be +trespassers, nor will they be if legal ways are provided for them to become +owners of these actual necessities of their position. +</p> + +<p> +As this will be the last annual message which I shall have the honor of +transmitting to Congress before my successor is chosen, I will repeat or +recapitulate the questions which I deem of vital importance which may be +legislated upon and settled at this session: +</p> + +<p> +First. That the States shall be required to afford the opportunity of a +good common-school education to every child within their limits. +</p> + +<p> +Second. No sectarian tenets shall ever be taught in any school supported in +whole or in part by the State, nation, or by the proceeds of any tax levied +upon any community. Make education compulsory so far as to deprive all +persons who can not read and write from becoming voters after the year +1890, disfranchising none, however, on grounds of illiteracy who may be +voters at the time this amendment takes effect. +</p> + +<p> +Third. Declare church and state forever separate and distinct, but each +free within their proper spheres; and that all church property shall bear +its own proportion of taxation. +</p> + +<p> +Fourth. Drive out licensed immorality, such as polygamy and the importation +of women for illegitimate purposes. To recur again to the centennial year, +it would seem as though now, as we are about to begin the second century of +our national existence, would be a most fitting time for these reforms. +</p> + +<p> +Fifth. Enact such laws as will insure a speedy return to a sound currency, +such as will command the respect of the world. +</p> + +<p> +Believing that these views will commend themselves to the great majority of +the right-thinking and patriotic citizens of the United States, I submit +the rest to Congress. +</p> + +<p class="noindent"> +U. S. GRANT +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="dec1876"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Ulysses S. Grant<br /> +December 5, 1876<br /> +</p> + +<p class="noindent"> +To the Senate and House of Representatives: +</p> + +<p> +In submitting my eighth and last annual message to Congress it seems proper +that I should refer to and in some degree recapitulate the events and +official acts of the past eight years. +</p> + +<p> +It was my fortune, or misfortune, to be called to the office of Chief +Executive without any previous political training. From the age of 17 I had +never even witnessed the excitement attending a Presidential campaign but +twice antecedent to my own candidacy, and at but one of them was I eligible +as a voter. +</p> + +<p> +Under such circumstances it is but reasonable to suppose that errors of +judgment must have occurred. Even had they not, differences of opinion +between the Executive, bound by an oath to the strict performance of his +duties, and writers and debaters must have arisen. It is not necessarily +evidence of blunder on the part of the Executive because there are these +differences of views. Mistakes have been made, as all can see and I admit, +but it seems to me oftener in the selections made of the assistants +appointed to aid in carrying out the various duties of administering the +Government--in nearly every case selected without a personal acquaintance +with the appointee, but upon recommendations of the representatives chosen +directly by the people. It is impossible, where so many trusts are to be +allotted, that the right parties should be chosen in every instance. +History shows that no Administration from the time of Washington to the +present has been free from these mistakes. But I leave comparisons to +history, claiming only that I have acted in every instance from a +conscientious desire to do what was right, constitutional, within the law, +and for the very best interests of the whole people. Failures have been +errors of judgment, not of intent. +</p> + +<p> +My civil career commenced, too, at a most critical and difficult time. Less +than four years before, the country had emerged from a conflict such as no +other nation had ever survived. Nearly one-half of the States had revolted +against the Government, and of those remaining faithful to the Union a +large percentage of the population sympathized with the rebellion and made +an "enemy in the rear" almost as dangerous as the more honorable enemy in +the front. The latter committed errors of judgment, but they maintained +them openly and courageously; the former received the protection of the +Government they would see destroyed, and reaped all the pecuniary advantage +to be gained out of the then existing state of affairs, many of them by +obtaining contracts and by swindling the Government in the delivery of +their goods. +</p> + +<p> +Immediately on the cessation of hostilities the then noble President, who +had carried the country so far through its perils, fell a martyr to his +patriotism at the hands of an assassin. +</p> + +<p> +The intervening time to my first inauguration was filled up with wranglings +between Congress and the new Executive as to the best mode of +"reconstruction," or, to speak plainly, as to whether the control of the +Government should be thrown immediately into the hands of those who had so +recently and persistently tried to destroy it, or whether the victors +should continue to have an equal voice with them in this control. +Reconstruction, as finally agreed upon, means this and only this, except +that the late slave was enfranchised, giving an increase, as was supposed, +to the Union-loving and Union-supporting votes. If free in the full sense +of the word, they would not disappoint this expectation. Hence at the +beginning of my first Administration the work of reconstruction, much +embarrassed by the long delay, virtually commenced. It was the work of the +legislative branch of the Government. My province was wholly in approving +their acts, which I did most heartily, urging the legislatures of States +that had not yet done so to ratify the fifteenth amendment to the +Constitution. The country was laboring under an enormous debt, contracted +in the suppression of rebellion, and taxation was so oppressive as to +discourage production. Another danger also threatened us--a foreign war. +The last difficulty had to be adjusted and was adjusted without a war and +in a manner highly honorable to all parties concerned. Taxes have been +reduced within the last seven years nearly $300,000,000, and the national +debt has been reduced in the same time over $435,000,000. By refunding the +6 per cent bonded debt for bonds bearing 5 and 4 1/2 per cent interest, +respectively, the annual interest has been reduced from over $130,000,000 +in 1869 to but little over $100,000,000 in 1876. The balance of trade has +been changed from over $130,000,000 against the United States in 1869 to +more than $120,000,000 in our favor in 1876. +</p> + +<p> +It is confidently believed that the balance of trade in favor of the United +States will increase, not diminish, and that the pledge of Congress to +resume specie payments in 1879 will be easily accomplished, even in the +absence of much-desired further legislation on the subject. +</p> + +<p> +A policy has been adopted toward the Indian tribes inhabiting a large +portion of the territory of the United States which has been humane and has +substantially ended Indian hostilities in the whole land except in a +portion of Nebraska, and Dakota, Wyoming, and Montana Territories--the +Black Hills region and approaches thereto. Hostilities there have grown out +of the avarice of the white man, who has violated our treaty stipulations +in his search for gold. The question might be asked why the Government has +not enforced obedience to the terms of the treaty prohibiting the +occupation of the Black Hills region by whites. The answer is simple: The +first immigrants to the Black Hills were removed by troops, but rumors of +rich discoveries of gold took into that region increased numbers. Gold has +actually been found in paying quantity, and an effort to remove the miners +would only result in the desertion of the bulk of the troops that might be +sent there to remove them. All difficulty in this matter has, however, been +removed--subject to the approval of Congress--by a treaty ceding the Black +Hills and approaches to settlement by citizens. +</p> + +<p> +The subject of Indian policy and treatment is so fully set forth by the +Secretary of the Interior and the Commissioner of Indian Affairs, and my +views so fully expressed therein, that I refer to their reports and +recommendations as my own. +</p> + +<p> +The relations of the United States with foreign powers continue on a +friendly footing. +</p> + +<p> +Questions have arisen from time to time in the foreign relations of the +Government, but the United States have been happily free during the past +year from the complications and embarrassments which have surrounded some +of the foreign powers. +</p> + +<p> +The diplomatic correspondence submitted herewith contains information as to +certain of the matters which have occupied the Government. +</p> + +<p> +The cordiality which attends our relations with the powers of the earth has +been plainly shown by the general participation of foreign nations in the +exhibition which has just closed and by the exertions made by distant +powers to show their interest in and friendly feelings toward the United +States in the commemoration of the centennial of the nation. The Government +and people of the United States have not only fully appreciated this +exhibition of kindly feeling, but it may be justly and fairly expected that +no small benefits will result both to ourselves and other nations from a +better acquaintance, and a better appreciation of our mutual advantages and +mutual wants. +</p> + +<p> +Congress at its last session saw fit to reduce the amount usually +appropriated for foreign intercourse by withholding appropriations for +representatives of the United States in certain foreign countries and for +certain consular officers, and by reducing the amounts usually appropriated +for certain other diplomatic posts, and thus necessitating a change in the +grade of the representatives. For these reasons, immediately upon the +passage of the bill making appropriations for the diplomatic and consular +service for the present fiscal year, instructions were issued to the +representatives of the United States at Bolivia, Ecuador, and Colombia, and +to the consular officers for whom no appropriation had been made, to close +their respective legations and consulates and cease from the performance of +their duties; and in like manner steps were immediately taken to substitute +charge's d'affaires for ministers resident in Portugal, Denmark, Greece, +Switzerland, and Paraguay. +</p> + +<p> +While thoroughly impressed with the wisdom of sound economy in the foreign +service, as in other branches of the Government, I can not escape the +conclusion that in some instances the withholding of appropriations will +prove an expensive economy, and that the small retrenchment secured by a +change of grade in certain diplomatic posts is not an adequate +consideration for the loss of influence and importance which will attend +our foreign representatives under this reduction. I am of the opinion that +a reexamination of the subject will cause a change in some instances in the +conclusions reached on these subjects at the last session of Congress. +</p> + +<p> +The Court of Commissioners of Alabama Claims, whose functions were +continued by an act of the last session of Congress until the 1st day of +January, 1877, has carried on its labors with diligence and general +satisfaction. By a report from the clerk of the court, transmitted +herewith, bearing date November 14, 1876, it appears that within the time +now allowed by law the court will have disposed of all the claims presented +for adjudication. This report also contains a statement of the general +results of the labors of the court to the date thereof. It is a cause of +satisfaction that the method adopted for the satisfaction of the classes of +claims submitted to the court, which are of long standing and justly +entitled to early consideration, should have proved successful and +acceptable. +</p> + +<p> +It is with satisfaction that I am enabled to state that the work of the +joint commission for determining the boundary line between the United +States and British possessions from the northwest angle of the Lake of the +Woods to the Rocky Mountains, commenced in 1872, has been completed. The +final agreements of the commissioners, with the maps, have been duly +signed, and the work of the commission is complete. +</p> + +<p> +The fixing of the boundary upon the Pacific coast by the protocol of March +10, 1873, pursuant to the award of the Emperor of Germany by Article XXXIV +of the treaty of Washington, with the termination of the work of this +commission, adjusts and fixes the entire boundary between the United States +and the British possessions, except as to the portion of territory ceded by +Russia to the United States under the treaty of 1867. The work intrusted to +the commissioner and the officers of the Army attached to the commission +has been well and satisfactorily performed. The original of the final +agreement of the commissioners, signed upon the 29th of May, 1876, with the +original official "lists of astronomical stations observed," the original +official "list of monuments marking the international boundary line," and +the maps, records, and general reports relating to the commission, have +been deposited in the Department of State. The official report of the +commissioner on the part of the United States, with the report of the chief +astronomer of the United States, will be submitted to Congress within a +short time. +</p> + +<p> +I reserve for a separate communication to Congress a statement of the +condition of the questions which lately arose with Great Britain respecting +the surrender of fugitive criminals under the treaty of 1842. +</p> + +<p> +The Ottoman Government gave notice, under date of January 15, 1874, of its +desire to terminate the treaty of 1862, concerning commerce and navigation, +pursuant to the provisions of the twenty-second article thereof. Under this +notice the treaty terminated upon the 5th day of June, 1876. That +Government has invited negotiations toward the conclusion of a new treaty. +</p> + +<p> +By the act of Congress of March 23, 1874, the President was authorized, +when he should receive satisfactory information that the Ottoman Government +or that of Egypt had organized new tribunals likely to secure to citizens +of the United States the same impartial justice enjoyed under the exercise +of judicial functions by diplomatic and consular officers of the United +States, to suspend the operation of the act of June 22, 1860, and to accept +for citizens of the United States the jurisdiction of the new tribunals. +Satisfactory information having been received of the organization of such +new tribunals in Egypt, I caused a proclamation to be issued upon the 27th +of March last, suspending the operation of the act of June 22, 1860, in +Egypt, according to the provisions of the act. A copy of the proclamation +accompanies this message. The United States has united with the other +powers in the organization of these courts. It is hoped that the +jurisdictional questions which have arisen may be readily adjusted, and +that this advance in judicial reform may be hindered by no obstacles. +</p> + +<p> +The necessary legislation to carry into effect the convention respecting +commercial reciprocity concluded with the Hawaiian Islands in 1875 having +been had, the proclamation to carry into effect the convention, as provided +by the act approved August 15, 1876, was duly issued upon the 9th day of +September last. A copy thereof accompanies this message. +</p> + +<p> +The commotions which have been prevalent in Mexico for some time past, and +which, unhappily, seem to be not yet wholly quieted, have led to complaints +of citizens of the United States of injuries by persons in authority. It is +hoped, however, that these will ultimately be adjusted to the satisfaction +of both Governments. The frontier of the United States in that quarter has +not been exempt from acts of violence by citizens of one Republic on those +of the other. The frequency of these is supposed to be increased and their +adjustment made more difficult by the considerable changes in the course of +the lower part of the Rio Grande River, which river is a part of the +boundary between the two countries. These changes have placed on either +side of that river portions of land which by existing conventions belong to +the jurisdiction of the Government on the opposite side of the river. The +subject of adjustment of this cause of difficulty is under consideration +between the two Republics. +</p> + +<p> +The Government of the United States of Colombia has paid the award in the +case of the steamer Montijo, seized by authorities of that Government some +years since, and the amount has been transferred to the claimants. +</p> + +<p> +It is with satisfaction that I am able to announce that the joint +commission for the adjustment of claims between the United States and +Mexico under the convention of 1868, the duration of which has been several +times extended, has brought its labors to a close. From the report of the +agent of the United States, which accompanies the papers transmitted +herewith, it will be seen that within the time limited by the commission +1,017 claims on the part of citizens of the United States against Mexico +were referred to the commission. Of these claims 831 were dismissed or +disallowed, and in 186 cases awards were made in favor of the claimants +against the Mexican Republic, amounting in the aggregate to $4,125,622.20. +Within the same period 998 claims on the part of citizens of the Mexican +Republic against the United States were referred to the commission. Of +these claims 831 were dismissed or disallowed, and in 167 cases awards were +made in favor of the claimants against the United States, amounting in the +aggregate to $150,498.41. +</p> + +<p> +By the terms of the convention the amount of these awards is to be deducted +from the amount awarded in favor of our citizens against Mexico, and the +balance only to be paid by Mexico to the United States, leaving the United +States to make provision for this proportion of the awards in favor of its +Own citizens. +</p> + +<p> +I invite your attention to the legislation which will be necessary to +provide for the payment. +</p> + +<p> +In this connection I am pleased to be able to express the acknowledgments +due to Sir Edward Thornton, the umpire of the commission, who has given to +the consideration of the large number of claims submitted to him much time, +unwearied patience, and that firmness and intelligence which are well known +to belong to the accomplished representative of Great Britain, and which +are likewise recognized by the representative in this country of the +Republic of Mexico. +</p> + +<p> +Monthly payments of a very small part of the amount due by the Government +of Venezuela to citizens of the United States on account of claims of the +latter against that Government continue to be made with reasonable +punctuality. That Government has proposed to change the system which it has +hitherto pursued in this respect by issuing bonds for part of the amount of +the several claims. The proposition, however, could not, it is supposed, +properly be accepted, at least without the consent of the holders of +certificates of the indebtedness of Venezuela. These are so much dispersed +that it would be difficult, if not impossible, to ascertain their +disposition on the subject. +</p> + +<p> +In former messages I have called the attention of Congress to the necessity +of legislation with regard to fraudulent naturalization and to the subject +of expatriation and the election of nationality. +</p> + +<p> +The numbers of persons of foreign birth seeking a home in the United +States, the ease and facility with which the honest emigrant may, after the +lapse of a reasonable time, become possessed of all the privileges of +citizenship of the United States, and the frequent occasions which induce +such adopted citizens to return to the country of their birth render the +subject of naturalization and the safeguards which experience has proved +necessary for the protection of the honest naturalized citizen of paramount +importance. The very simplicity in the requirements of law on this question +affords opportunity for fraud, and the want of uniformity in the +proceedings and records of the various courts and in the forms of the +certificates of naturalization issued affords a constant source of +difficulty. +</p> + +<p> +I suggest no additional requirements to the acquisition of citizenship +beyond those now existing, but I invite the earnest attention of Congress +to the necessity and wisdom of some provisions regarding uniformity in the +records and certificates, and providing against the frauds which frequently +take place and for the vacating of a record of naturalization obtained in +fraud. +</p> + +<p> +These provisions are needed in aid and for the protection of the honest +citizen of foreign birth, and for the want of which he is made to suffer +not infrequently. The United States has insisted upon the right of +expatriation, and has obtained, after a long struggle, an admission of the +principle contended for by acquiescence therein on the part of many foreign +powers and by the conclusion of treaties on that subject. It is, however, +but justice to the government to which such naturalized citizens have +formerly owed allegiance, as well as to the United States, that certain +fixed and definite rules should be adopted governing such cases and +providing how expatriation may be accomplished. +</p> + +<p> +While emigrants in large numbers become citizens of the United States, it +is also true that persons, both native born and naturalized, once citizens +of the United States, either by formal acts or as the effect of a series of +facts and circumstances, abandon their citizenship and cease to be entitled +to the protection of the United States, but continue on convenient +occasions to assert a claim to protection in the absence of provisions on +these questions. +</p> + +<p> +And in this connection I again invite your attention to the necessity of +legislation concerning the marriages of American citizens contracted +abroad, and concerning the status of American women who may marry +foreigners and of children born of American parents in a foreign country. +</p> + +<p> +The delicate and complicated questions continually occurring with reference +to naturalization, expatriation, and the status of such persons as I have +above referred to induce me to earnestly direct your attention again to +these subjects. +</p> + +<p> +In like manner I repeat my recommendation that some means be provided for +the hearing and determination of the just and subsisting claims of aliens +upon the Government of the United States within a reasonable limitation, +and of such as may hereafter arise. While by existing provisions of law the +Court of Claims may in certain cases be resorted to by an alien claimant, +the absence of any general provisions governing all such cases and the want +of a tribunal skilled in the disposition of such cases upon recognized +fixed and settled principles, either provides no remedy in many deserving +cases or compels a consideration of such claims by Congress or the +executive department of the Government. +</p> + +<p> +It is believed that other governments are in advance of the United States +upon this question, and that the practice now adopted is entirely +unsatisfactory. +</p> + +<p> +Congress, by an act approved the 3d day of March, 1875, authorized the +inhabitants of the Territory of Colorado to form a State government, with +the name of the State of Colorado, and therein provided for the admission +of said State, when formed, into the Union upon an equal footing with the +original States. +</p> + +<p> +A constitution having been adopted and ratified by the people of that +State, and the acting governor having certified to me the facts as provided +by said act, together with a copy of such constitution and ordinances as +provided for in the said act, and the provisions of the said act of +Congress having been duly complied with, I issued a proclamation upon the +1st of August, 1876, a copy of which is hereto annexed. +</p> + +<p> +The report of the Secretary of War shows that the Army has been actively +employed during the year in subduing, at the request of the Indian Bureau, +certain wild bands of the Sioux Indian Nation and in preserving the peace +at the South during the election. The commission constituted under the act +of July 24, 1876, to consider and report on the "whole subject of the +reform and reorganization of the Army" met in August last, and has +collected a large mass of statistics and opinions bearing on the subject +before it. These are now under consideration, and their report is +progressing. I am advised, though, by the president of the commission that +it will be impracticable to comply with the clause of the act requiring the +report to be presented, through me, to Congress on the first day of this +session, as there has not yet been time for that mature deliberation which +the importance of the subject demands. Therefore I ask that the time of +making the report be extended to the 29th day of January, 1877. +</p> + +<p> +In accordance with the resolution of August 15, 1876, the Army regulations +prepared under the act of March 1, 1875, have not been promulgated, but are +held until after the report of the above-mentioned commission shall have +been received and acted on. +</p> + +<p> +By the act of August 15, 1876, the cavalry force of the Army was increased +by 2,500 men, with the proviso that they should be discharged on the +expiration of hostilities. Under this authority the cavalry regiments have +been strengthened, and a portion of them are now in the field pursuing the +remnants of the Indians with whom they have been engaged during the +summer. +</p> + +<p> +The estimates of the War Department are made up on the basis of the number +of men authorized by law, and their requirements as shown by years of +experience, and also with the purpose on the part of the bureau officers to +provide for all contingencies that may arise during the time for which the +estimates are made. Exclusive of engineer estimates (presented in +accordance with acts of Congress calling for surveys and estimates for +improvements at various localities), the estimates now presented are about +six millions in excess of the appropriations for the years 1874-75 and +1875-76. This increase is asked in order to provide for the increased +cavalry force (should their services be necessary), to prosecute +economically work upon important public buildings, to provide for armament +of fortifications and manufacture of small arms, and to replenish the +working stock in the supply departments. The appropriations for these last +named have for the past few years been so limited that the accumulations in +store will be entirely exhausted during the present year, and it will be +necessary to at once begin to replenish them. +</p> + +<p> +I invite your special attention to the following recommendations of the +Secretary of War: +</p> + +<p> +First. That the claims under the act of July 4, 1864, for supplies taken by +the Army during the war be removed from the offices of the Quartermaster +and Commissary Generals and transferred to the Southern Claims Commission. +These claims are of precisely similar nature to those now before the +Southern Claims Commission, and the War Department bureaus have not the +clerical force for their examination nor proper machinery for investigating +the loyalty of the claimants. +</p> + +<p> +Second. That Congress sanction the scheme of an annuity fund for the +benefit of the families of deceased officers, and that it also provide for +the permanent organization of the Signal Service, both of which were +recommended in my last annual message. +</p> + +<p> +Third. That the manufacturing operations of the Ordnance Department be +concentrated at three arsenals and an armory, and that the remaining +arsenals be sold and the proceeds applied to this object by the Ordnance +Department. +</p> + +<p> +The appropriations for river and harbor improvements for the current year +were $5,015,000. With my approval, the Secretary of War directed that of +this amount $2,000,000 should be expended, and no new works should be begun +and none prosecuted which were not of national importance. Subsequently +this amount was increased to $2,237,600, and the works are now progressing +on this basis. +</p> + +<p> +The improvement of the South Pass of the Mississippi River, under James B. +Eads and his associates, is progressing favorably. At the present time +there is a channel of 20.3 feet in depth between the jetties at the mouth +of the pass and 18.5 feet at the head of the pass. Neither channel, +however, has the width required before payments can be made by the United +States. A commission of engineer officers is now examining these works, and +their reports will be presented as soon as received. +</p> + +<p> +The report of the Secretary of the Navy shows that branch of the service to +be in condition as effective as it is possible to keep it with the means +and authority given the Department. It is, of course, not possible to rival +the costly and progressive establishments of great European powers with the +old material of our Navy, to which no increase has been authorized since +the war, except the eight small cruisers built to supply the place of +others which had gone to decay. Yet the most has been done that was +possible with the means at command; and by substantially rebuilding some of +our old ships with durable material and completely repairing and refitting +our monitor fleet the Navy has been gradually so brought up that, though it +does not maintain its relative position among the progressive navies of the +world, it is now in a condition more powerful and effective than it ever +has been in time of peace. +</p> + +<p> +The complete repairs of our five heavy ironclads are only delayed on +account of the inadequacy of the appropriations made last year for the +working bureaus of the Department, which were actually less in amount than +those made before the war, notwithstanding the greatly enhanced price of +labor and materials and the increase in the cost of the naval service +growing out of the universal use and great expense of steam machinery. The +money necessary for these repairs should be provided at once, that they may +be completed without further unnecessary delay and expense. +</p> + +<p> +When this is done, all the strength that there is in our Navy will be +developed and useful to its full capacity, and it will be powerful for +purposes of defense, and also for offensive action, should the necessity +for that arise within a reasonable distance from our shores. +</p> + +<p> +The fact that our Navy is not more modern and powerful than it is has been +made a cause of complaint against the Secretary of the Navy by persons who +at the same time criticise and complain of his endeavors to bring the Navy +that we have to its best and most efficient condition; but the good sense +of the country will understand that it is really due to his practical +action that we have at this time any effective naval force at command. +</p> + +<p> +The report of the Postmaster-General shows the excess of expenditures +(excluding expenditures on account of previous years) over receipts for the +fiscal year ended June 30, 1876, to be $4,151,988.66. +</p> + +<p> +Estimated expenditures for the fiscal year ending June 30, 1878, are +$36,723,432.43. +</p> + +<p> +Estimated revenue for same period is $30,645,165, leaving estimated excess +of expenditure, to be appropriated as a deficiency, of $6,078,267.43. +</p> + +<p> +The Postmaster-General, like his predecessor, is convinced that a change in +the basis of adjusting the salaries of postmasters of the fourth class is +necessary for the good of the service as well as for the interests of the +Government, and urgently recommends that the compensation of the class of +postmasters above mentioned be based upon the business of their respective +offices, as ascertained from the sworn returns to the Auditor of stamps +canceled. +</p> + +<p> +A few postmasters in the Southern States have expressed great apprehension +of their personal safety on account of their connection with the postal +service, and have specially requested that their reports of apprehended +danger should not be made public lest it should result in the loss of their +lives. But no positive testimony of interference has been submitted, except +in the case of a mail messenger at Spartanburg, in South Carolina, who +reported that he had been violently driven away while in charge of the +mails on account of his political affiliations. An assistant superintendent +of the Railway Mail Service investigated this case and reported that the +messenger had disappeared from his post, leaving his work to be performed +by a substitute. The Postmaster-General thinks this case is sufficiently +suggestive to justify him in recommending that a more severe punishment +should be provided for the offense of assaulting any person in charge of +the mails or of retarding or otherwise obstructing them by threats of +personal injury. +</p> + +<p> +"A very gratifying result is presented in the fact that the deficiency of +this Department during the last fiscal year was reduced to $4,081,790.18, +as against $6,169,938.88 of the preceding year. The difference can be +traced to the large increase in its ordinary receipts (which greatly exceed +the estimates therefor) and a slight decrease in its expenditures." +</p> + +<p> +The ordinary receipts of the Post-Office Department for the past seven +fiscal years have increased at an average of over 8 per cent per annum, +while the increase of expenditures for the same period has been but about +5.50 per cent per annum, and the decrease of deficiency in the revenues has +been at the rate of nearly 2 per cent per annum. +</p> + +<p> +The report of the Commissioner of Agriculture accompanying this message +will be found one of great interest, marking, as it does, the great +progress of the last century in the variety of products of the soil; +increased knowledge and skill in the labor of producing, saving, and +manipulating the same to prepare them for the use of man; in the +improvements in machinery to aid the agriculturist in his labors, and in a +knowledge of those scientific subjects necessary to a thorough system of +economy in agricultural production, namely, chemistry, botany, entomology, +etc. A study of this report by those interested in agriculture and deriving +their support from it will find it of value in pointing out those articles +which are raised in greater quantity than the needs of the world require, +and must sell, therefore, for less than the cost of production, and those +which command a profit over cost of production because there is not an +overproduction. +</p> + +<p> +I call special attention to the need of the Department for a new gallery +for the reception of the exhibits returned from the Centennial Exhibition, +including the exhibits donated by very many foreign nations, and to the +recommendations of the Commissioner of Agriculture generally. +</p> + +<p> +The reports of the District Commissioners and the board of health are just +received--too late to read them and to make recommendations thereon--and +are herewith submitted. +</p> + +<p> +The international exhibition held in Philadelphia this year, in +commemoration of the one hundredth anniversary of American independence, +has proven a great success, and will, no doubt, be of enduring advantage to +the country. It has shown the great progress in the arts, sciences, and +mechanical skill made in a single century, and demonstrated that we are but +little behind older nations in any one branch, while in some we scarcely +have a rival. It has served, too, not only to bring peoples and products of +skill and labor from all parts of the world together, but in bringing +together people from all sections of our own country, which must prove a +great benefit in the information imparted and pride of country engendered. +</p> + +<p> +It has been suggested by scientists interested in and connected with the +Smithsonian Institution, in a communication herewith, that the Government +exhibit be removed to the capital and a suitable building be erected or +purchased for its accommodation as a permanent exhibit. I earnestly +recommend this; and believing that Congress would second this view, I +directed that all Government exhibits at the Centennial Exhibition should +remain where they are, except such as might be injured by remaining in a +building not intended as a protection in inclement weather, or such as may +be wanted by the Department furnishing them, until the question of +permanent exhibition is acted on. +</p> + +<p> +Although the moneys appropriated by Congress to enable the participation of +the several Executive Departments in the International Exhibition of 1876 +were not sufficient to carry out the undertaking to the full extent at +first contemplated, it gives me pleasure to refer to the very efficient and +creditable manner in which the board appointed from these several +Departments to provide an exhibition on the part of the Government have +discharged their duties with the funds placed at their command. Without a +precedent to guide them in the preparation of such a display, the success +of their labors was amply attested by the sustained attention which the +contents of the Government building attracted during the period of the +exhibition from both foreign and native visitors. +</p> + +<p> +I am strongly impressed with the value of the collection made by the +Government for the purposes of the exhibition, illustrating, as it does, +the mineral resources of the country, the statistical and practical +evidences of our growth as a nation, and the uses of the mechanical arts +and the applications of applied science in the administration of the +affairs of Government. +</p> + +<p> +Many nations have voluntarily contributed their exhibits to the United +States to increase the interest in any permanent exhibition Congress may +provide for. For this act of generosity they should receive the thanks of +the people, and I respectfully suggest that a resolution of Congress to +that effect be adopted. +</p> + +<p> +The attention of Congress can not be too earnestly called to the necessity +of throwing some greater safeguard over the method of choosing and +declaring the election of a President. Under the present system there seems +to be no provided remedy for contesting the election in any one State. The +remedy is partially, no doubt, in the enlightenment of electors. The +compulsory support of the free school and the disfranchisement of all who +can not read and write the English language, after a fixed probation, would +meet my hearty approval. I would not make this apply, however, to those +already voters, but I would to all becoming so after the expiration of the +probation fixed upon. Foreigners coming to this country to become citizens, +who are educated in their own language, should acquire the requisite +knowledge of ours during the necessary residence to obtain naturalization. +If they did not take interest enough in our language to acquire sufficient +knowledge of it to enable them to study the institutions and laws of the +country intelligently, I would not confer upon them the right to make such +laws nor to select those who do. +</p> + +<p> +I append to this message, for convenient reference, a synopsis of +administrative events and of all recommendations to Congress made by me +during the last seven years. Time may show some of these recommendations +not to have been wisely conceived, but I believe the larger part will do no +discredit to the Administration. One of these recommendations met with the +united opposition of one political party in the Senate and with a strong +opposition from the other, namely, the treaty for the annexation of Santo +Domingo to the United States, to which I will specially refer, maintaining, +as I do, that if my views had been concurred in the country would be in a +more prosperous condition to-day, both politically and financially. +</p> + +<p> +Santo Domingo is fertile, and upon its soil may be grown just those +tropical products of which the United States use so much, and which are +produced or prepared for market now by slave labor almost exclusively, +namely, sugar, coffee, dyewoods, mahogany, tropical fruits, tobacco, etc. +About 75 per cent of the exports of Cuba are consumed in the United States. +A large percentage of the exports of Brazil also find the same market. +These are paid for almost exclusively in coin, legislation, particularly in +Cuba, being unfavorable to a mutual exchange of the products of each +country. Flour shipped from the Mississippi River to Havana can pass by the +very entrance to the city on its way to a port in Spain, there pay a duty +fixed upon articles to be reexported, transferred to a Spanish vessel and +brought back almost to the point of starting, paying a second duty, and +still leave a profit over what would be received by direct shipment. All +that is produced in Cuba could be produced in Santo Domingo. Being a part +of the United States, commerce between the island and mainland would be +free. There would be no export duties on her shipments nor import duties on +those coming here. There would be no import duties upon the supplies, +machinery, etc., going from the States. The effect that would have been +produced upon Cuban commerce, with these advantages to a rival, is +observable at a glance. The Cuban question would have been settled long ago +in favor of "free Cuba." Hundreds of American vessels would now be +advantageously used in transporting the valuable woods and other products +of the soil of the island to a market and in carrying supplies and +emigrants to it. The island is but sparsely settled, while it has an area +sufficient for the profitable employment of several millions of people. The +soil would have soon fallen into the hands of United States capitalists. +The products are so valuable in commerce that emigration there would have +been encouraged; the emancipated race of the South would have found there a +congenial home, where their civil rights would not be disputed and where +their labor would be so much sought after that the poorest among them could +have found the means to go. Thus in cases of great oppression and cruelty, +such as has been practiced upon them in many places within the last eleven +years, whole communities would have sought refuge in Santo Domingo. I do +not suppose the whole race would have gone, nor is it desirable that they +should go. Their labor is desirable--indispensable almost--where they now +are. But the possession of this territory would have left the negro "master +of the situation," by enabling him to demand his rights at home on pain of +finding them elsewhere. +</p> + +<p> +I do not present these views now as a recommendation for a renewal of the +subject of annexation, but I do refer to it to vindicate my previous action +in regard to it. +</p> + +<p> +With the present term of Congress my official life terminates. It is not +probable that public affairs will ever again receive attention from me +further than as a citizen of the Republic, always taking a deep interest in +the honor, integrity, and prosperity of the whole land. +</p> + +<p class="noindent"> +U. S. GRANT +</p> + +<p><br /><br /><br /><br /></p> + + + + + + + + +<pre> + + + + + +End of Project Gutenberg's State of the Union Addresses, by Ulysses S. 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If you are not located in the United States, you'll have +to check the laws of the country where you are located before using this ebook. + +Title: State of the Union Addresses + +Author: Ulysses S. Grant + +Posting Date: November 27, 2014 [EBook #5026] +Release Date: February, 2004 +First Posted: April 11, 2002 +Last Updated: December 16, 2004 + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK STATE OF THE UNION ADDRESSES *** + + + + +Produced by James Linden. HTML version by Al Haines. + + + + + + + + +State of the Union Addresses of Ulysses S. Grant + + + +The addresses are separated by three asterisks: *** + +Dates of addresses by Ulysses S. Grant in this eBook: + + December 6, 1869 + December 5, 1870 + December 4, 1871 + December 2, 1872 + December 1, 1873 + December 7, 1874 + December 7, 1875 + December 5, 1876 + + + +*** + +State of the Union Address +Ulysses S. Grant +December 6, 1869 + +To the Senate and House of Representatives: + +In coming before you for the first time as Chief Magistrate of this great +nation, it is with gratitude to the Giver of All Good for the many benefits +we enjoy. We are blessed with peace at home, and are without entangling +alliances abroad to forebode trouble; with a territory unsurpassed in +fertility, of an area equal to the abundant support of 500,000,000 people, +and abounding in every variety of useful mineral in quantity sufficient to +supply the world for generations; with exuberant crops; with a variety of +climate adapted to the production of every species of earth's riches and +suited to the habits, tastes, and requirements of every living thing; with +a population of 40,000,000 free people, all speaking one language; with +facilities for every mortal to acquire an education; with institutions +closing to none the avenues to fame or any blessing of fortune that may be +coveted; with freedom of the pulpit, the press, and the school; with a +revenue flowing into the National Treasury beyond the requirements of the +Government. Happily, harmony is being rapidly restored within our own +borders. Manufactures hitherto unknown in our country are springing up in +all sections, producing a degree of national independence unequaled by that +of any other power. + +These blessings and countless others are intrusted to your care and mine +for safe-keeping for the brief period of our tenure of office. In a short +time we must, each of us, return to the ranks of the people, who have +conferred upon us our honors, and account to them for our stewardship. I +earnestly desire that neither you nor I may be condemned by a free and +enlightened constituency nor by our own consciences. + +Emerging from a rebellion of gigantic magnitude, aided, as it was, by the +sympathies and assistance of nations with which we were at peace, eleven +States of the Union were, four years ago, left without legal State +governments. A national debt had been contracted; American commerce was +almost driven from the seas; the industry of one-half of the country had +been taken from the control of the capitalist and placed where all labor +rightfully belongs--in the keeping of the laborer. The work of restoring +State governments loyal to the Union, of protecting and fostering free +labor, and providing means for paying the interest on the public debt has +received ample attention from Congress. Although your efforts have not met +with the success in all particulars that might have been desired, yet on +the whole they have been more successful than could have been reasonably +anticipated. + +Seven States which passed ordinances of secession have been fully restored +to their places in the Union. The eighth (Georgia) held an election at +which she ratified her constitution, republican in form, elected a +governor, Members of Congress, a State legislature, and all other officers +required. The governor was duly installed, and the legislature met and +performed all the acts then required of them by the reconstruction acts of +Congress. Subsequently, however, in violation of the constitution which +they had just ratified (as since decided by the supreme court of the +State), they unseated the colored members of the legislature and admitted +to seats some members who are disqualified by the third clause of the +fourteenth amendment to the Constitution--an article which they themselves +had contributed to ratify. Under these circumstances I would submit to you +whether it would not be wise, without delay, to enact a law authorizing the +governor of Georgia to convene the members originally elected to the +legislature, requiring each member to take the oath prescribed by the +reconstruction acts, and none to be admitted who are ineligible under the +third clause of the fourteenth amendment. + +The freedmen, under the protection which they have received, are making +rapid progress in learning, and no complaints are heard of lack of industry +on their part where they receive fair remuneration for their labor. The +means provided for paying the interest on the public debt, with all other +expenses of Government, are more than ample. The loss of our commerce is +the only result of the late rebellion which has not received sufficient +attention from you. To this subject I call your earnest attention. I will +not now suggest plans by which this object may be effected, but will, if +necessary, make it the subject of a special message during the session of +Congress. + +At the March term Congress by joint resolution authorized the Executive to +order elections in the States of Virginia, Mississippi, and Texas, to +submit to them the constitutions which each had previously, in convention, +framed, and submit the constitutions, either entire or in separate parts, +to be voted upon, at the discretion of the Executive. Under this authority +elections were called. In Virginia the election took place on the 6th of +July, 1869. The governor and lieutenant-governor elected have been +installed. The legislature met and did all required by this resolution and +by all the reconstruction acts of Congress, and abstained from all doubtful +authority. I recommend that her Senators and Representatives be promptly +admitted to their seats, and that the State be fully restored to its place +in the family of States. Elections were called in Mississippi and Texas, to +commence on the 30th of November, 1869, and to last two days in Mississippi +and four days in Texas. The elections have taken place, but the result is +not known. It is to be hoped that the acts of the legislatures of these +States, when they meet, will be such as to receive your approval, and thus +close the work of reconstruction. + +Among the evils growing out of the rebellion, and not yet referred to, is +that of an irredeemable currency. It is an evil which I hope will receive +your most earnest attention. It is a duty, and one of the highest duties, +of Government to secure to the citizen a medium of exchange of fixed, +unvarying value. This implies a return to a specie basis, and no substitute +for it can be devised. It should be commenced now and reached at the +earliest practicable moment consistent with a fair regard to the interests +of the debtor class. Immediate resumption, if practicable, would not be +desirable. It would compel the debtor class to pay, beyond their contracts, +the premium on gold at the date of their purchase and would bring +bankruptcy and ruin to thousands. Fluctuation, however, in the paper value +of the measure of all values (gold) is detrimental to the interests of +trade. It makes the man of business an involuntary gambler, for in all +sales where future payment is to be made both parties speculate as to what +will be the value of the currency to be paid and received. I earnestly +recommend to you, then, such legislation as will insure a gradual return to +specie payments and put an immediate stop to fluctuations in the value of +currency. + +The methods to secure the former of these results are as numerous as are +the speculators on political economy. To secure the latter I see but one +way, and that is to authorize the Treasury to redeem its own paper, at a +fixed price, whenever presented, and to withhold from circulation all +currency so redeemed until sold again for gold. + +The vast resources of the nation, both developed and undeveloped, ought to +make our credit the best on earth. With a less burden of taxation than the +citizen has endured for six years past, the entire public debt could be +paid in ten years. But it is not desirable that the people should be taxed +to pay it in that time. Year by year the ability to pay increases in a +rapid ratio. But the burden of interest ought to be reduced as rapidly as +can be done without the violation of contract. The public debt is +represented in great part by bonds having from five to twenty and from ten +to forty years to run, bearing interest at the rate of 6 per cent and 5 per +cent, respectively. It is optional with the Government to pay these bonds +at any period after the expiration of the least time mentioned upon their +face. The time has already expired when a great part of them may be taken +up, and is rapidly approaching when all may be. It is believed that all +which are now due may be replaced by bonds bearing a rate of interest not +exceeding 4 1/2 per cent, and as rapidly as the remainder become due that +they may be replaced in the same way. To accomplish this it may be +necessary to authorize the interest to be paid at either of three or four +of the money centers of Europe, or by any assistant treasurer of the United +States, at the option of the holder of the bond. I suggest this subject for +the consideration of Congress, and also, simultaneously with this, the +propriety of redeeming our currency, as before suggested, at its market +value at the time the law goes into effect, increasing the rate at which +currency shall be bought and sold from day to day or week to week, at the +same rate of interest as Government pays upon its bonds. + +The subjects of tariff and internal taxation will necessarily receive your +attention. The revenues of the country are greater than the requirements, +and may with safety be reduced. But as the funding of the debt in a 4 or a +4 1/2 per cent loan would reduce annual current expenses largely, thus, +after funding, justifying a greater reduction of taxation than would be now +expedient, I suggest postponement of this question until the next meeting +of Congress. + +It may be advisable to modify taxation and tariff in instances where unjust +or burdensome discriminations are made by the present laws, but a general +revision of the laws regulating this subject I recommend the postponement +of for the present. I also suggest the renewal of the tax on incomes, but +at a reduced rate, say of 3 per cent, and this tax to expire in three +years. + +With the funding of the national debt, as here suggested, I feel safe in +saying that taxes and the revenue from imports may be reduced safely from +sixty to eighty millions per annum at once, and may be still further +reduced from year to year, as the resources of the country are developed. + +The report of the Secretary of the Treasury shows the receipts of the +Government for the fiscal year ending June 30, 1869, to be $370,943,747, +and the expenditures, including interest, bounties, etc., to be +$321,490,597. The estimates for the ensuing year are more favorable to the +Government, and will no doubt show a much larger decrease of the public +debt. + +The receipts in the Treasury beyond expenditures have exceeded the amount +necessary to place to the credit of the sinking fund, as provided by law. +To lock up the surplus in the Treasury and withhold it from circulation +would lead to such a contraction of the currency as to cripple trade and +seriously affect the prosperity of the country. Under these circumstances +the Secretary of the Treasury and myself heartily concurred in the +propriety of using all the surplus currency in the Treasury in the purchase +of Government bonds, thus reducing the interest-bearing indebtedness of the +country, and of submitting to Congress the question of the disposition to +be made of the bonds so purchased. The bonds now held by the Treasury +amount to about seventy-five millions, including those belonging to the +sinking fund. I recommend that the whole be placed to the credit of the +sinking fund. + +Your attention is respectfully invited to the recommendations of the +Secretary of the Treasury for the creation of the office of commissioner of +customs revenue; for the increase of salaries to certain classes of +officials; the substitution of increased national-bank circulation to +replace the outstanding 3 per cent certificates; and most especially to his +recommendation for the repeal of laws allowing shares of fines, penalties, +forfeitures, etc., to officers of the Government or to informers. + +The office of Commissioner of Internal Revenue is one of the most arduous +and responsible under the Government. It falls but little, if any, short of +a Cabinet position in its importance and responsibilities. I would ask for +it, therefore, such legislation as in your judgment will place the office +upon a footing of dignity commensurate with its importance and with the +character and qualifications of the class of men required to fill it +properly. + +As the United States is the freest of all nations, so, too, its people +sympathize with all people struggling for liberty and self-government; but +while so sympathizing it is due to our honor that we should abstain from +enforcing our views upon unwilling nations and from taking an interested +part, without invitation, in the quarrels between different nations or +between governments and their subjects. Our course should always be in +conformity with strict justice and law, international and local. Such has +been the policy of the Administration in dealing with these questions. For +more than a year a valuable province of Spain, and a near neighbor of ours, +in whom all our people can not but feel a deep interest, has been +struggling for independence and freedom. The people and Government of the +United States entertain the same warm feelings and sympathies for the +people of Cuba in their pending struggle that they manifested throughout +the previous struggles between Spain and her former colonies in behalf of +the latter. But the contest has at no time assumed the conditions which +amount to a war in the sense of international law, or which would show the +existence of a de facto political organization of the insurgents sufficient +to justify a recognition of belligerency. + +The principle is maintained, however, that this nation is its own judge +when to accord the rights of belligerency, either to a people struggling to +free themselves from a government they believe to be oppressive or to +independent nations at war with each other. + +The United States have no disposition to interfere with the existing +relations of Spain to her colonial possessions on this continent. They +believe that in due time Spain and other European powers will find their +interest in terminating those relations and establishing their present +dependencies as independent powers--members of the family of nations. These +dependencies are no longer regarded as subject to transfer from one +European power to another. When the present relation of colonies ceases, +they are to become independent powers, exercising the right of choice and +of self-control in the determination of their future condition and +relations with other powers. + +The United States, in order to put a stop to bloodshed in Cuba, and in the +interest of a neighboring people, proposed their good offices to bring the +existing contest to a termination. The offer, not being accepted by Spain +on a basis which we believed could be received by Cuba, was withdrawn. It +is hoped that the good offices of the United States may yet prove +advantageous for the settlement of this unhappy strife. Meanwhile a number +of illegal expeditions against Cuba have been broken up. It has been the +endeavor of the Administration to execute the neutrality laws in good +faith, no matter how unpleasant the task, made so by the sufferings we have +endured from lack of like good faith toward us by other nations. + +On the 26th of March last the United States schooner Lizzie Major was +arrested on the high seas by a Spanish frigate, and two passengers taken +from it and carried as prisoners to Cuba. Representations of these facts +were made to the Spanish Government as soon as official information of them +reached Washington. The two passengers were set at liberty, and the Spanish +Government assured the United States that the captain of the frigate in +making the capture had acted without law, that he had been reprimanded for +the irregularity of his conduct, and that the Spanish authorities in Cuba +would not sanction any act that could violate the rights or treat with +disrespect the sovereignty of this nation. + +The question of the seizure of the brig Mary Lowell at one of the Bahama +Islands by Spanish authorities is now the subject of correspondence between +this Government and those of Spain and Great Britain. + +The Captain-General of Cuba about May last issued a proclamation +authorizing search to be made of vessels on the high seas. Immediate +remonstrance was made against this, whereupon the Captain-General issued a +new proclamation limiting the right of search to vessels of the United +States so far as authorized under the treaty of 1795. This proclamation, +however, was immediately withdrawn. + +I have always felt that the most intimate relations should be cultivated +between the Republic of the United States and all independent nations on +this continent. It may be well worth considering whether new treaties +between us and them may not be profitably entered into, to secure more +intimate relations--friendly, commercial, and otherwise. + +The subject of an interoceanic canal to connect the Atlantic and Pacific +oceans through the Isthmus of Darien is one in which commerce is greatly +interested. Instructions have been given to our minister to the Republic of +the United States of Colombia to endeavor to obtain authority for a survey +by this Government, in order to determine the practicability of such an +undertaking, and a charter for the right of way to build, by private +enterprise, such a work, if the survey proves it to be practicable. + +In order to comply with the agreement of the United States as to a mixed +commission at Lima for the adjustment of claims, it became necessary to +send a commissioner and secretary to Lima in August last. No appropriation +having been made by Congress for this purpose, it is now asked that one be +made covering the past and future expenses of the commission. + +The good offices of the United States to bring about a peace between Spain +and the South American Republics with which she is at war having been +accepted by Spain, Peru, and Chile, a congress has been invited to be held +in Washington during the present winter. + +A grant has been given to Europeans of an exclusive right of transit over +the territory of Nicaragua, to which Costa Rico has given its assent, +which, it is alleged, conflicts with vested rights of citizens of the +United States. The Department of State has now this subject under +consideration. + +The minister of Peru having made representations that there was a state of +war between Peru and Spain, and that Spain was constructing, in and near +New York, thirty gunboats, which might be used by Spain in such a way as to +relieve the naval force at Cuba, so as to operate against Peru, orders were +given to prevent their departure. No further steps having been taken by the +representative of the Peruvian Government to prevent the departure of these +vessels, and I not feeling authorized to detain the property of a nation +with which we are at peace on a mere Executive order, the matter has been +referred to the courts to decide. + +The conduct of the war between the allies and the Republic of Paraguay has +made the intercourse with that country so difficult that it has been deemed +advisable to withdraw our representative from there. + +Toward the close of the last Administration a convention was signed at +London for the settlement of all outstanding claims between Great Britain +and the United States, which failed to receive the advice and consent of +the Senate to its ratification. The time and the circumstances attending +the negotiation of that treaty were unfavorable to its acceptance by the +people of the United States, and its provisions were wholly inadequate for +the settlement of the grave wrongs that had been sustained by this +Government, as well as by its citizens. The injuries resulting to the +United States by reason of the course adopted by Great Britain during our +late civil war--in the increased rates of insurance; in the diminution of +exports and imports, and other obstructions to domestic industry and +production; in its effect upon the foreign commerce of the country; in the +decrease and transfer to Great Britain of our commercial marine; in the +prolongation of the war and the increased cost (both in treasure and in +lives) of its suppression could not be adjusted and satisfied as ordinary +commercial claims, which continually arise between commercial nations; and +yet the convention treated them simply as such ordinary claims, from which +they differ more widely in the gravity of their character than in the +magnitude of their amount, great even as is that difference. Not a word was +found in the treaty, and not an inference could be drawn from it, to remove +the sense of the unfriendliness of the course of Great Britain in our +struggle for existence, which had so deeply and universally impressed +itself upon the people of this country. + +Believing that a convention thus misconceived in its scope and inadequate +in its provisions would not have produced the hearty, cordial settlement of +pending questions, which alone is consistent with the relations which I +desire to have firmly established between the United States and Great +Britain, I regarded the action of the Senate in rejecting the treaty to +have been wisely taken in the interest of peace and as a necessary step in +the direction of a perfect and cordial friendship between the two +countries. A sensitive people, conscious of their power, are more at ease +under a great wrong wholly unatoned than under the restraint of a +settlement which satisfies neither their ideas of justice nor their grave +sense of the grievance they have sustained. The rejection of the treaty was +followed by a state of public feeling on both sides which I thought not +favorable to an immediate attempt at renewed negotiations. I accordingly so +instructed the minister of the United States to Great Britain, and found +that my views in this regard were shared by Her Majesty's ministers. I hope +that the time may soon arrive when the two Governments can approach the +solution of this momentous question with an appreciation of what is due to +the rights, dignity, and honor of each, and with the determination not only +to remove the causes of complaint in the past, but to lay the foundation of +a broad principle of public law which will prevent future differences and +tend to firm and continued peace and friendship. + +This is now the only grave question which the United States has with any +foreign nation. + +The question of renewing a treaty for reciprocal trade between the United +States and the British Provinces on this continent has not been favorably +considered by the Administration. The advantages of such a treaty would be +wholly in favor of the British producer. Except, possibly, a few engaged in +the trade between the two sections, no citizen of the United States would +be benefited by reciprocity. Our internal taxation would prove a protection +to the British producer almost equal to the protection which our +manufacturers now receive from the tariff. Some arrangement, however, for +the regulation of commercial intercourse between the United States and the +Dominion of Canada may be desirable. + +The commission for adjusting the claims of the "Hudsons Bay and Puget Sound +Agricultural Company" upon the United States has terminated its labors. The +award of $650,000 has been made and all rights and titles of the company on +the territory of the United States have been extinguished. Deeds for the +property of the company have been delivered. An appropriation by Congress +to meet this sum is asked. + +The commissioners for determining the northwestern land boundary between +the United States and the British possessions under the treaty of 1856 have +completed their labors, and the commission has been dissolved. + +In conformity with the recommendation of Congress, a proposition was early +made to the British Government to abolish the mixed courts created under +the treaty of April 7, 1862, for the suppression of the slave trade. The +subject is still under negotiation. + +It having come to my knowledge that a corporate company, organized under +British laws, proposed to land upon the shores of the United States and to +operate there a submarine cable, under a concession from His Majesty the +Emperor of the French of an exclusive right for twenty years of telegraphic +communication between the shores of France and the United States, with the +very objectionable feature of subjecting all messages conveyed thereby to +the scrutiny and control of the French Government, I caused the French and +British legations at Washington to be made acquainted with the probable +policy of Congress on this subject, as foreshadowed by the bill which +passed the Senate in March last. This drew from the representatives of the +company an agreement to accept as the basis of their operations the +provisions of that bill, or of such other enactment on the subject as might +be passed during the approaching session of Congress; also, to use their +influence to secure from the French Government a modification of their +concession, so as to permit the landing upon French soil of any cable +belonging to any company incorporated by the authority of the United States +or of any State in the Union, and, on their part, not to oppose the +establishment of any such cable. In consideration of this agreement I +directed the withdrawal of all opposition by the United States authorities +to the landing of the cable and to the working of it until the meeting of +Congress. I regret to say that there has been no modification made in the +company's concession, nor, so far as I can learn, have they attempted to +secure one. Their concession excludes the capital and the citizens of the +United States from competition upon the shores of France. I recommend +legislation to protect the rights of citizens of the United States, as well +as the dignity and sovereignty of the nation, against such an assumption. I +shall also endeavor to secure, by negotiation, an abandonment of the +principle of monopolies in ocean telegraphic cables. Copies of this +correspondence are herewith furnished. + +The unsettled political condition of other countries, less fortunate than +our own, sometimes induces their citizens to come to the United States for +the sole purpose of becoming naturalized. Having secured this, they return +to their native country and reside there, without disclosing their change +of allegiance. They accept official positions of trust or honor, which can +only be held by citizens of their native land; they journey under passports +describing them as such citizens; and it is only when civil discord, after +perhaps years of quiet, threatens their persons or their property, or when +their native state drafts them into its military service, that the fact of +their change of allegiance is made known. They reside permanently away from +the United States, they contribute nothing to its revenues, they avoid the +duties of its citizenship, and they only make themselves known by a claim +of protection. I have directed the diplomatic and consular officers of the +United States to scrutinize carefully all such claims for protection. The +citizen of the United States, whether native or adopted, who discharges his +duty to his country, is entitled to its complete protection. While I have a +voice in the direction of affairs I shall not consent to imperil this +sacred right by conferring it upon fictitious or fraudulent claimants. + +On the accession of the present Administration it was found that the +minister for North Germany had made propositions for the negotiation of a +convention for the protection of emigrant passengers, to which no response +had been given. It was concluded that to be effectual all the maritime +powers engaged in the trade should join in such a measure. Invitations have +been extended to the cabinets of London, Paris, Florence, Berlin, Brussels, +The Hague, Copenhagen, and Stockholm to empower their representatives at +Washington to simultaneously enter into negotiations and to conclude with +the United States conventions identical in form, making uniform regulations +as to the construction of the parts of vessels to be devoted to the use of +emigrant passengers, as to the quality and quantity of food, as to the +medical treatment of the sick, and as to the rules to be observed during +the voyage, in order to secure ventilation, to promote health, to prevent +intrusion, and to protect the females; and providing for the establishment +of tribunals in the several countries for enforcing such regulations by +summary process. + +Your attention is respectfully called to the law regulating the tariff on +Russian hemp, and to the question whether to fix the charges on Russian +hemp higher than they are fixed upon manila is not a violation of our +treaty with Russia placing her products upon the same footing with those of +the most favored nations. + +Our manufactures are increasing with wonderful rapidity under the +encouragement which they now receive. With the improvements in machinery +already effected, and still increasing, causing machinery to take the place +of skilled labor to a large extent, our imports of many articles must fall +off largely within a very few years. Fortunately, too, manufactures are not +confined to a few localities, as formerly, and it is to be hoped will +become more and more diffused, making the interest in them equal in all +sections. They give employment and support to hundreds of thousands of +people at home, and retain with us the means which otherwise would be +shipped abroad. The extension of railroads in Europe and the East is +bringing into competition with our agricultural products like products of +other countries. Self-interest, if not self-preservation, therefore +dictates caution against disturbing any industrial interest of the country. +It teaches us also the necessity of looking to other markets for the sale +of our surplus. Our neighbors south of us and China and Japan, should +receive our special attention. It will be the endeavor of the +Administration to cultivate such relations with all these nations as to +entitle us to their confidence and make it their interest, as well as ours, +to establish better commercial relations. + +Through the agency of a more enlightened policy than that heretofore +pursued toward China, largely due to the sagacity and efforts of one of our +own distinguished citizens, the world is about to commence largely +increased relations with that populous and hitherto exclusive nation. As +the United States have been the initiators in this new policy, so they +should be the most earnest in showing their good faith in making it a +success. In this connection I advise such legislation as will forever +preclude the enslavement of the Chinese upon our soil under the name of +coolies, and also prevent American vessels from engaging in the +transportation of coolies to any country tolerating the system. I also +recommend that the mission to China be raised to one of the first class. + +On my assuming the responsible duties of Chief Magistrate of the United +States it was with the conviction that three things were essential to its +peace, prosperity, and fullest development. First among these is strict +integrity in fulfilling all our obligations; second, to secure protection +to the person and property of the citizen of the United States in each and +every portion of our common country, wherever he may choose to move, +without reference to original nationality, religion, color, or politics, +demanding of him only obedience to the laws and proper respect for the +rights of others; third, union of all the States, with equal rights, +indestructible by any constitutional means. + +To secure the first of these, Congress has taken two essential steps: +First, in declaring by joint resolution that the public debt shall be paid, +principal and interest, in coin; and, second, by providing the means for +paying. Providing the means, however, could not secure the object desired +without a proper administration of the laws for the collection of the +revenues and an economical disbursement of them. To this subject the +Administration has most earnestly addressed itself, with results, I hope, +satisfactory to the country. There has been no hesitation in changing +officials in order to secure an efficient execution of the laws, sometimes, +too, when, in a mere party view, undesirable political results were likely +to follow; nor any hesitation in sustaining efficient officials against +remonstrances wholly political. + +It may be well to mention here the embarrassment possible to arise from +leaving on the statute books the so-called "tenure-of-office acts," and to +earnestly recommend their total repeal. It could not have been the +intention of the framers of the Constitution, when providing that +appointments made by the President should receive the consent of the +Senate, that the latter should have the power to retain in office persons +placed there by Federal appointment against the will of the President. The +law is inconsistent with a faithful and efficient administration of the +Government. What faith can an Executive put in officials forced upon him, +and those, too, whom he has suspended for reason? How will such officials +be likely to serve an Administration which they know does not trust them? + +For the second requisite to our growth and prosperity time and a firm but +humane administration of existing laws (amended from time to time as they +may prove ineffective or prove harsh and unnecessary) are probably all that +are required. + +The third can not be attained by special legislation, but must be regarded +as fixed by the Constitution itself and gradually acquiesced in by force of +public opinion. + +From the foundation of the Government to the present the management of the +original inhabitants of this continent--the Indians--has been a subject of +embarrassment and expense, and has been attended with continuous robberies, +murders, and wars. From my own experience upon the frontiers and in Indian +countries, I do not hold either legislation or the conduct of the whites +who come most in contact with the Indian blameless for these hostilities. +The past, however, can not be undone, and the question must be met as we +now find it. I have attempted a new policy toward these wards of the nation +(they can not be regarded in any other light than as wards), with fair +results so far as tried, and which I hope will be attended ultimately with +great success. The Society of Friends is well known as having succeeded in +living in peace with the Indians in the early settlement of Pennsylvania, +while their white neighbors of other sects in other sections were +constantly embroiled. They are also known for their opposition to all +strife, violence, and war, and are generally noted for their strict +integrity and fair dealings. These considerations induced me to give the +management of a few reservations of Indians to them and to throw the burden +of the selection of agents upon the society itself. The result has proven +most satisfactory. It will be found more fully set forth in the report of +the Commissioner of Indian Affairs. For superintendents and Indian agents +not on the reservations, officers of the Army were selected. The reasons +for this are numerous. Where Indian agents are sent, there, or near there, +troops must be sent also. The agent and the commander of troops are +independent of each other, and are subject to orders from different +Departments of the Government. The army officer holds a position for life; +the agent, one at the will of the President. The former is personally +interested in living in harmony with the Indian and in establishing a +permanent peace, to the end that some portion of his life may be spent +within the limits of civilized society; the latter has no such personal +interest. Another reason is an economic one; and still another, the hold +which the Government has upon a life officer to secure a faithful discharge +of duties in carrying out a given policy. + +The building of railroads, and the access thereby given to all the +agricultural and mineral regions of the country, is rapidly bringing +civilized settlements into contact with all the tribes of Indians. No +matter what ought to be the relations between such settlements and the +aborigines, the fact is they do not harmonize well, and one or the other +has to give way in the end. A system which looks to the extinction of a +race is too horrible for a nation to adopt without entailing upon itself +the wrath of all Christendom and engendering in the citizen a disregard for +human life and the rights of others, dangerous to society. I see no +substitute for such a system, except in placing all the Indians on large +reservations, as rapidly as it can be done, and giving them absolute +protection there. As soon as they are fitted for it they should be induced +to take their lands in severalty and to set up Territorial governments for +their own protection. For full details on this subject I call your special +attention to the reports of the Secretary of the Interior and the +Commissioner of Indian Affairs. + +The report of the Secretary of War shows the expenditures of the War +Department for the year ending June 30, 1869, to be $80,644,042, of which +$23,882,310 was disbursed in the payment of debts contracted during the +war, and is not chargeable to current army expenses. His estimate of +$34,531,031 for the expenses of the Army for the next fiscal year is as low +as it is believed can be relied on. The estimates of bureau officers have +been carefully scrutinized, and reduced wherever it has been deemed +practicable. If, however, the condition of the country should be such by +the beginning of the next fiscal year as to admit of a greater +concentration of troops, the appropriation asked for will not be expended. + +The appropriations estimated for river and harbor improvements and for +fortifications are submitted separately. Whatever amount Congress may deem +proper to appropriate for these purposes will be expended. + +The recommendation of the General of the Army that appropriations be made +for the forts at Boston. Portland, New York, Philadelphia, New Orleans, and +San Francisco, if for no other, is concurred in. I also ask your special +attention to the recommendation of the general commanding the Military +Division of the Pacific for the sale of the seal islands of St. Paul and +St. George, Alaska Territory, and suggest that it either be complied with +or that legislation be had for the protection of the seal fisheries from +which a revenue should be derived. + +The report of the Secretary of War contains a synopsis of the reports of +the heads of bureaus, of the commanders of military divisions, and of the +districts of Virginia, Mississippi, and Texas, and the report of the +General of the Army in full. The recommendations therein contained have +been well considered, and are submitted for your action. I, however, call +special attention to the recommendation of the Chief of Ordnance for the +sale of arsenals and lands no longer of use to the Government; also, to the +recommendation of the Secretary of War that the act of 3d March, 1869, +prohibiting promotions and appointments in the staff corps of the Army, be +repealed. The extent of country to be garrisoned and the number of military +posts to be occupied is the same with a reduced Army as with a large one. +The number of staff officers required is more dependent upon the latter +than the former condition. + +The report of the Secretary of the Navy accompanying this shows the +condition of the Navy when this Administration came into office and the +changes made since. Strenuous efforts have been made to place as many +vessels "in commission," or render them fit for service if required, as +possible, and to substitute the sail for steam while cruising, thus +materially reducing the expenses of the Navy and adding greatly to its +efficiency. Looking to our future, I recommend a liberal, though not +extravagant, policy toward this branch of the public service. + +The report of the Postmaster-General furnishes a clear and comprehensive +exhibit of the operations of the postal service and of the financial +condition of the Post-Office Department. The ordinary postal revenues for +the year ending the 30th of June, 1869, amounted to $18,344,510, and the +expenditures to $23,698,131, showing an excess of expenditures over +receipts of $5,353,620. The excess of expenditures over receipts for the +previous year amounted to $6,437,992. The increase of revenues for 1869 +over those of 1868 was $2,051,909, and the increase of expenditures was +$967,538. The increased revenue in 1869 exceeded the increased revenue in +1868 by $996,336, and the increased expenditure in 1869 was $2,527,570 less +than the increased expenditure in 1868, showing by comparison this +gratifying feature of improvement, that while the increase of expenditures +over the increase of receipts in 1868 was $2,439,535, the increase of +receipts over the increase of expenditures in 1869 was $1,084,371. + +Your attention is respectfully called to the recommendations made by the +Postmaster-General for authority to change the rate of compensation to the +main trunk railroad lines for their services in carrying the mails; for +having post-route maps executed; for reorganizing and increasing the +efficiency of the special-agency service; for increase of the mail service +on the Pacific, and for establishing mail service, under the flag of the +Union, on the Atlantic; and most especially do I call your attention to his +recommendation for the total abolition of the franking privilege. This is +an abuse from which no one receives a commensurate advantage; it reduces +the receipts for postal service from 25 to 30 per cent and largely +increases the service to be performed. The method by which postage should +be paid upon public matter is set forth fully in the report of the +Postmaster-General. + +The report of the Secretary of the Interior shows that the quantity of +public lands disposed of during the year ending the 30th of June, 1869, was +7,666,152 acres, exceeding that of the preceding year by 1,010,409 acres. +Of this amount 2,899,544 acres were sold for cash and 2,737,365 acres +entered under the homestead laws. The remainder was granted to aid in the +construction of works of internal improvement, approved to the States as +swamp land, and located with warrants and scrip. The cash receipts from all +sources were $4,472,886, exceeding those of the preceding year $2,840,140. + +During the last fiscal year 23,196 names were added to the pension rolls +and 4,876 dropped therefrom, leaving at its close 187,963. The amount paid +to pensioners, including the compensation of disbursing agents, was +$28,422,884, an increase of $4,411,902 on that of the previous year. The +munificence of Congress has been conspicuously manifested in its +legislation for the soldiers and sailors who suffered in the recent +struggle to maintain "that unity of government which makes us one people." +The additions to the pension rolls of each successive year since the +conclusion of hostilities result in a great degree from the repeated +amendments of the act of the 14th of July, 1862, which extended its +provisions to cases not falling within its original scope. The large outlay +which is thus occasioned is further increased by the more liberal allowance +bestowed since that date upon those who in the line of duty were wholly or +permanently disabled. Public opinion has given an emphatic sanction to +these measures of Congress, and it will be conceded that no part of our +public burden is more cheerfully borne than that which is imposed by this +branch of the service. It necessitates for the next fiscal year, in +addition to the amount justly chargeable to the naval pension fund, an +appropriation of $30,000,000. + +During the year ending the 30th of September, 1869, the Patent Office +issued 13,762 patents, and its receipts were $686,389, being $213,926 more +than the expenditures. + +Messages and Papers of the Presidents, Ulysses S. Grant, vol. 6, p.3995 + +I would respectfully call your attention to the recommendation of the +Secretary of the Interior for uniting the duties of supervising the +education of freedmen with the other duties devolving upon the Commissioner +of Education. + +If it is the desire of Congress to make the census which must be taken +during the year 1870 more complete and perfect than heretofore, I would +suggest early action upon any plan that may be agreed upon. As Congress at +the last session appointed a committee to take into consideration such +measures as might be deemed proper in reference to the census and report a +plan, I desist from saying more. + +I recommend to your favorable consideration the claims of the Agricultural +Bureau for liberal appropriations. In a country so diversified in climate +and soil as ours, and with a population so largely dependent upon +agriculture, the benefits that can be conferred by properly fostering this +Bureau are incalculable. + +I desire respectfully to call the attention of Congress to the inadequate +salaries of a number of the most important offices of the Government. In +this message I will not enumerate them, but will specify only the justices +of the Supreme Court. No change has been made in their salaries for fifteen +years. Within that time the labors of the court have largely increased and +the expenses of living have at least doubled. During the same time Congress +has twice found it necessary to increase largely the compensation of its +own members, and the duty which it owes to another department of the +Government deserves, and will undoubtedly receive, its due consideration. + +There are many subjects not alluded to in this message which might with +propriety be introduced, but I abstain, believing that your patriotism and +statesmanship will suggest the topics and the legislation most conducive to +the interests of the whole people. On my part I promise a rigid adherence +to the laws and their strict enforcement. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 5, 1870 + +To the Senate and House of Representatives: + +A year of peace and general prosperity to this nation has passed since the +last assembling of Congress. We have, through a kind Providence, been +blessed with abundant crops, and have been spared from complications and +war with foreign nations. In our midst comparative harmony has been +restored. It is to be regretted, however, that a free exercise of the +elective franchise has by violence and intimidation been denied to citizens +in exceptional cases in several of the States lately in rebellion, and the +verdict of the people has thereby been reversed. The States of Virginia, +Mississippi, and Texas have been restored to representation in our national +councils. Georgia, the only State now without representation, may +confidently be expected to take her place there also at the beginning of +the new year, and then, let us hope, will be completed the work of +reconstruction. With an acquiescence on the part of the whole people in the +national obligation to pay the public debt created as the price of our +Union, the pensions to our disabled soldiers and sailors and their widows +and orphans, and in the changes to the Constitution which have been made +necessary by a great rebellion, there is no reason why we should not +advance in material prosperity and happiness as no other nation ever did +after so protracted and devastating a war. + +Soon after the existing war broke out in Europe the protection of the +United States minister in Paris was invoked in favor of North Germans +domiciled in French territory. Instructions were issued to grant the +protection. This has been followed by an extension of American protection +to citizens of Saxony, Hesse and Saxe-Coburg, Gotha, Colombia, Portugal, +Uruguay, the Dominican Republic, Ecuador, Chile, Paraguay, and Venezuela in +Paris. The charge was an onerous one, requiring constant and severe labor, +as well as the exercise of patience, prudence, and good judgment. It has +been performed to the entire satisfaction of this Government, and, as I am +officially informed, equally so to the satisfaction of the Government of +North Germany. + +As soon as I learned that a republic had been proclaimed at Paris and that +the people of France had acquiesced in the change, the minister of the +United States was directed by telegraph to recognize it and to tender my +congratulations and those of the people of the United States. The +reestablishment in France of a system of government disconnected with the +dynastic traditions of Europe appeared to be a proper subject for the +felicitations of Americans. Should the present struggle result in attaching +the hearts of the French to our simpler forms of representative government, +it will be a subject of still further satisfaction to our people. While we +make no effort to impose our institutions upon the inhabitants of other +countries, and while we adhere to our traditional neutrality in civil +contests elsewhere, we can not be indifferent to the spread of American +political ideas in a great and highly civilized country like France. + +We were asked by the new Government to use our good offices, jointly with +those of European powers, in the interests of peace. Answer was made that +the established policy and the true interests of the United States forbade +them to interfere in European questions jointly with European powers. I +ascertained, informally and unofficially, that the Government of North +Germany was not then disposed to listen to such representations from any +power, and though earnestly wishing to see the blessings of peace restored +to the belligerents, with all of whom the United States are on terms of +friendship, I declined on the part of this Government to take a step which +could only result in injury to our true interests without advancing the +object for which our intervention was invoked. Should the time come when +the action of the United States can hasten the return of peace by a single +hour, that action will be heartily taken. I deemed it prudent, in view of +the number of persons of German and French birth living in the United +States, to issue, soon after official notice of a state of war had been +received from both belligerents, a proclamation defining the duties of the +United States as a neutral and the obligations of persons residing within +their territory to observe their laws and the laws of nations. This +proclamation was followed by others, as circumstances seemed to call for +them. The people, thus acquainted in advance of their duties and +obligations, have assisted in preventing violations of the neutrality of +the United States. + +It is not understood that the condition of the insurrection in Cuba has +materially changed since the close of the last session of Congress. In an +early stage of the contest the authorities of Spain inaugurated a system of +arbitrary arrests, of close confinement, and of military trial and +execution of persons suspected of complicity with the insurgents, and of +summary embargo of their properties, and sequestration of their revenues by +executive warrant. Such proceedings, so far as they affected the persons or +property of citizens of the United States, were in violation of the +provisions of the treaty of 1795 between the United States and Spain. + +Representations of injuries resulting to several persons claiming to be +citizens of the United States by reason of such violations were made to the +Spanish Government. From April, 1869, to June last the Spanish minister at +Washington had been clothed with a limited power to aid in redressing such +wrongs. That power was found to be withdrawn, "in view," as it was said, +"of the favorable situation in which the island of Cuba" then "was," which, +however, did not lead to a revocation or suspension of the extraordinary +and arbitrary functions exercised by the executive power in Cuba, and we +were obliged to make our complaints at Madrid. In the negotiations thus +opened, and still pending there, the United States only claimed that for +the future the rights secured to their citizens by treaty should be +respected in Cuba, and that as to the past a joint tribunal should be +established in the United States with full jurisdiction over all such +claims. Before such an impartial tribunal each claimant would be required +to prove his case. On the other hand, Spain would be at liberty to traverse +every material fact, and thus complete equity would be done. A case which +at one time threatened seriously to affect the relations between the United +States and Spain has already been disposed of in this way. The claim of the +owners of the Colonel Lloyd Aspinwall for the illegal seizure and detention +of that vessel was referred to arbitration by mutual consent, and has +resulted in an award to the United States, for the owners, of the sum of +$19,702.50 in gold. Another and long-pending claim of like nature, that of +the whaleship Canada, has been disposed of by friendly arbitrament during +the present year. It was referred, by the joint consent of Brazil and the +United States, to the decision of Sir Edward Thornton, Her Britannic +Majesty's minister at Washington, who kindly undertook the laborious task +of examining the voluminous mass of correspondence and testimony submitted +by the two Governments, and awarded to the United States the sum of +$100,740.09 in gold, which has since been paid by the Imperial Government. +These recent examples show that the mode which the United States have +proposed to Spain for adjusting the pending claims is just and feasible, +and that it may be agreed to by either nation without dishonor. It is to be +hoped that this moderate demand may be acceded to by Spain without further +delay. Should the pending negotiations, unfortunately and unexpectedly, be +without result, it will then become my duty to communicate that fact to +Congress and invite its action on the subject. + +The long-deferred peace conference between Spain and the allied South +American Republics has been inaugurated in Washington under the auspices of +the United States. Pursuant to the recommendation contained in the +resolution of the House of Representatives of the 17th of December, 1866, +the executive department of the Government offered its friendly offices for +the promotion of peace and harmony between Spain and the allied Republics. +Hesitations and obstacles occurred to the acceptance of the offer. +Ultimately, however, a conference was arranged, and was opened in this city +on the 29th of October last, at which I authorized the Secretary of State +to preside. It was attended by the ministers of Spain, Peru, Chile, and +Ecuador. In consequence of the absence of a representative from Bolivia, +the conference was adjourned until the attendance of a plenipotentiary from +that Republic could be secured or other measures could be adopted toward +compassing its objects. + +The allied and other Republics of Spanish origin on this continent may see +in this fact a new proof of our sincere interest in their welfare, of our +desire to see them blessed with good governments, capable of maintaining +order and of preserving their respective territorial integrity, and of our +sincere wish to extend our own commercial and social relations with them. +The time is not probably far distant when, in the natural course of events, +the European political connection with this continent will cease. Our +policy should be shaped, in view of this probability, so as to ally the +commercial interests of the Spanish American States more closely to our +own, and thus give the United States all the preeminence and all the +advantage which Mr. Monroe, Mr. Adams, and Mr. Clay contemplated when they +proposed to join in the congress of Panama. + +During the last session of Congress a treaty for the annexation of the +Republic of San Domingo to the United States failed to receive the +requisite two-thirds vote of the Senate. I was thoroughly convinced then +that the best interests of this country, commercially and materially, +demanded its ratification. Time has only confirmed me in this view. I now +firmly believe that the moment it is known that the United States have +entirely abandoned the project of accepting as a part of its territory the +island of San Domingo a free port will be negotiated for by European +nations in the Bay of Samana. A large commercial city will spring up, to +which we will be tributary without receiving corresponding benefits, and +then will be seen the folly of our rejecting so great a prize. The +Government of San Domingo has voluntarily sought this annexation. It is a +weak power, numbering probably less than 120,000 souls, and yet possessing +one of the richest territories under the sun, capable of supporting a +population of 10,000,000 people in luxury. The people of San Domingo are +not capable of maintaining themselves in their present condition, and must +look for outside support. They yearn for the protection of our free +institutions and laws, our progress and civilization. Shall we refuse +them? + +The acquisition of San Domingo is desirable because of its geographical +position. It commands the entrance to the Caribbean Sea and the Isthmus +transit of commerce. It possesses the richest soil, best and most capacious +harbors, most salubrious climate, and the most valuable products of the +forests, mine, and soil of any of the West India Islands. Its possession by +us will in a few years build up a coastwise commerce of immense magnitude, +which will go far toward restoring to us our lost merchant marine. It will +give to us those articles which we consume so largely and do not produce, +thus equalizing our exports and imports. In case of foreign war it will +give us command of all the islands referred to, and thus prevent an enemy +from ever again possessing himself of rendezvous upon our very coast. At +present our coast trade between the States bordering on the Atlantic and +those bordering on the Gulf of Mexico is cut into by the Bahamas and the +Antilies. Twice we must, as it were, pass through foreign countries to get +by sea from Georgia to the west coast of Florida. + +San Domingo, with a stable government, under which her immense resources +can be developed, will give remunerative wages to tens of thousands of +laborers not now upon the island. This labor will take advantage of every +available means of transportation to abandon the adjacent islands and seek +the blessings of freedom and its sequence--each inhabitant receiving the +reward of his own labor. Porto Rico and Cuba will have to abolish slavery, +as a measure of self-preservation, to retain their laborers. + +San Domingo will become a large consumer of the products of Northern farms +and manufactories. The cheap rate at which her citizens can be furnished +with food, tools, and machinery will make it necessary that contiguous +islands should have the same advantages in order to compete in the +production of sugar, coffee, tobacco, tropical fruits, etc. This will open +to us a still wider market for our products. The production of our own +supply of these articles will cut off more than one hundred millions of our +annual imports, besides largely increasing our exports. With such a picture +it is easy to see how our large debt abroad is ultimately to be +extinguished. With a balance of trade against us (including interest on +bonds held by foreigners and money spent by our citizens traveling in +foreign lands) equal to the entire yield of the precious metals in this +country, it is not so easy to see how this result is to be otherwise +accomplished. + +The acquisition of San Domingo is an adherence to the "Monroe doctrine;" it +is a measure of national protection; it is asserting our just claim to a +controlling influence over the great commercial traffic soon to flow from +west to east by way of the Isthmus of Darien; it is to build up our +merchant marine; it is to furnish new markets for the products of our +farms, shops, and manufactories; it is to make slavery insupportable in +Cuba and Porto Rico at once, and ultimately so in Brazil; it is to settle +the unhappy condition of Cuba and end an exterminating conflict; it is to +provide honest means of paying our honest debts without overtaxing the +people; it is to furnish our citizens with the necessaries of everyday life +at cheaper rates than ever before; and it is, in fine, a rapid stride +toward that greatness which the intelligence, industry, and enterprise of +the citizens of the United States entitle this country to assume among +nations. + +In view of the importance of this question, I earnestly urge upon Congress +early action expressive of its views as to the best means of acquiring San +Domingo. My suggestion is that by joint resolution of the two Houses of +Congress the Executive be authorized to appoint a commission to negotiate a +treaty with the authorities of San Domingo for the acquisition of that +island, and that an appropriation be made to defray the expenses of such a +commission. The question may then be determined, either by the action of +the Senate upon the treaty or the joint action of the two Houses of +Congress upon a resolution of annexation, as in the case of the acquisition +of Texas. So convinced am I of the advantages to flow from the acquisition +of San Domingo, and of the great disadvantages--I might almost say +calamities--to flow from nonacquisition, that I believe the subject has +only to be investigated to be approved. + +It is to be regretted that our representations in regard to the injurious +effects, especially upon the revenue of the United States, of the policy of +the Mexican Government in exempting from impost duties a large tract of its +territory on our borders have not only been fruitless, but that it is even +proposed in that country to extend the limits within which the privilege +adverted to has hitherto been enjoyed. The expediency of taking into your +serious consideration proper measures for countervailing the policy +referred to will, it is presumed, engage your earnest attention. + +It is the obvious interest, especially of neighboring nations, to provide +against impunity to those who may have committed high crimes within their +borders and who may have sought refuge abroad. For this purpose extradition +treaties have been concluded with several of the Central American +Republics, and others are in progress. + +The sense of Congress is desired, as early as may be convenient, upon the +proceedings of the commission on claims against Venezuela, as communicated +in my messages of March 16, 1869, March 1, 1870, and March 31, 1870. It has +not been deemed advisable to distribute any of the money which has been +received from that Government until Congress shall have acted on the +subject. + +The massacres of French and Russian residents at Tien-Tsin, under +circumstances of great barbarity, was supposed by some to have been +premeditated, and to indicate a purpose among the populace to exterminate +foreigners in the Chinese Empire. The evidence fails to establish such a +supposition, but shows a complicity between the local authorities and the +mob. The Government at Peking, however, seems to have been disposed to +fulfill its treaty obligations so far as it was able to do so. +Unfortunately, the news of the war between the German States and France +reached China soon after the massacre. It would appear that the popular +mind became possessed with the idea that this contest, extending to Chinese +waters, would neutralize the Christian influence and power, and that the +time was coming when the superstitious masses might expel all foreigners +and restore mandarin influence. Anticipating trouble from this cause, I +invited France and North Germany to make an authorized suspension of +hostilities in the East (where they were temporarily suspended by act of +the commanders), and to act together for the future protection in China of +the lives and properties of Americans and Europeans. + +Since the adjournment of Congress the ratifications of the treaty with +Great Britain for abolishing the mixed courts for the suppression of the +slave trade have been exchanged. It is believed that the slave trade is now +confined to the eastern coast of Africa, whence the slaves are taken to +Arabian markets. + +The ratifications of the naturalization convention between Great Britain +and the United States have also been exchanged during the recess, and thus +a long-standing dispute between the two Governments has been settled in +accordance with the principles always contended for by the United States. + +In April last, while engaged in locating a military reservation near +Pembina, a corps of engineers discovered that the commonly received +boundary line between the United States and the British possessions at that +place is about 4,700 feet south of the true position of the forty-ninth +parallel, and that the line, when run on what is now supposed to be the +true position of that parallel, would leave the fort of the Hudsons Bay +Company at Pembina within the territory of the United States. This +information being communicated to the British Government, I was requested +to consent, and did consent, that the British occupation of the fort of the +Hudsons Bay Company should continue for the present. I deem it important, +however, that this part of the boundary line should be definitely fixed by +a joint commission of the two Governments, and I submit herewith estimates +of the expense of such a commission on the part of the United States and +recommend that an appropriation be made for that purpose. The land boundary +has already been fixed and marked from the summit of the Rocky Mountains to +the Georgian Bay. It should now be in like manner marked from the Lake of +the Woods to the summit of the Rocky Mountains. + +I regret to say that no conclusion has been reached for the adjustment of +the claims against Great Britain growing out of the course adopted by that +Government during the rebellion. The cabinet of London, so far as its views +have been expressed, does not appear to be willing to concede that Her +Majesty's Government was guilty of any negligence, or did or permitted any +act during the war by which the United States has just cause of complaint. +Our firm and unalterable convictions are directly the reverse. I therefore +recommend to Congress to authorize the appointment of a commission to take +proof of the amount and the ownership of these several claims, on notice to +the representative of Her Majesty at Washington, and that authority be +given for the settlement of these claims by the United States, so that the +Government shall have the ownership of the private claims, as well as the +responsible control of all the demands against Great Britain. It can not be +necessary to add that whenever Her Majesty's Government shall entertain a +desire for a full and friendly adjustment of these claims the United States +will enter upon their consideration with an earnest desire for a conclusion +consistent with the honor and dignity of both nations. + +The course pursued by the Canadian authorities toward the fishermen of the +United States during the past season has not been marked by a friendly +feeling. By the first article of the convention of 1818 between Great +Britain and the United States it was agreed that the inhabitants of the +United States should have forever, in common with British subjects, the +right of taking fish in certain waters therein defined. In the waters not +included in the limits named in the convention (within 3 miles of parts of +the British coast) it has been the custom for many years to give to +intruding fishermen of the United States a reasonable warning of their +violation of the technical rights of Great Britain. The Imperial Government +is understood to have delegated the whole or a share of its jurisdiction or +control of these inshore fishing grounds to the colonial authority known as +the Dominion of Canada, and this semi-independent but irresponsible agent +has exercised its delegated powers in an unfriendly way. Vessels have been +seized without notice or warning, in violation of the custom previously +prevailing, and have been taken into the colonial ports, their voyages +broken up, and the vessels condemned. There is reason to believe that this +unfriendly and vexatious treatment was designed to bear harshly upon the +hardy fishermen of the United States, with a view to political effect upon +this Government. The statutes of the Dominion of Canada assume a still +broader and more untenable jurisdiction over the vessels of the United +States. They authorize officers or persons to bring vessels hovering within +3 marine miles of any of the coasts, bays, creeks, or harbors of Canada +into port, to search the cargo, to examine the master on oath touching the +cargo and voyage, and to inflict upon him a heavy pecuniary penalty if true +answers are not given; and if such a vessel is found "preparing to fish" +within 3 marine miles of any of such coasts, bays, creeks, or harbors +without a license, or after the expiration of the period named in the last +license granted to it, they provide that the vessel, with her tackle, etc., +shall be forfeited. It is not known that any condemnations have been made +under this statute. Should the authorities of Canada attempt to enforce it, +it will become my duty to take such steps as may be necessary to protect +the rights of the citizens of the United States. + +It has been claimed by Her Majesty's officers that the fishing vessels of +the United States have no right to enter the open ports of the British +possessions in North America, except for the purposes of shelter and +repairing damages, of purchasing wood and obtaining water; that they have +no right to enter at the British custom-houses or to trade there except in +the purchase of wood and water, and that they must depart within +twenty-four hours after notice to leave. It is not known that any seizure +of a fishing vessel carrying the flag of the United States has been made +under this claim. So far as the claim is founded on an alleged construction +of he convention of 1818, it can not be acquiesced in by the United States. +It is hoped that it will not be insisted on by Her Majesty's Government. + +During the conferences which preceded the negotiation of the convention of +1818 the British commissioners proposed to expressly exclude the fishermen +of the United States from "the privilege of carrying on trade with any of +His Britannic Majesty's subjects residing within the limits assigned for +their use;" and also that it should not be "lawful for the vessels of the +United States engaged in said fishery to have on board any goods, wares, or +merchandise whatever, except such as may be necessary for the prosecution +of their voyages to and from the said fishing grounds: and any vessel of +the United States which shall contravene this regulation may be seized, +condemned, and confiscated, with her cargo." + +This proposition, which is identical with the construction now put upon the +language of the convention, was emphatically rejected by the American +commissioners, and thereupon was abandoned by the British +plenipotentiaries, and Article I, as it stands in the convention, was +substituted. + +If, however, it be said that this claim is founded on provincial or +colonial statutes, and not upon the convention, this Government can not but +regard them as unfriendly, and in contravention of the spirit, if not of +the letter, of the treaty, for the faithful execution of which the Imperial +Government is alone responsible. + +Anticipating that an attempt may possibly be made by the Canadian +authorities in the coming season to repeat their unneighborly acts toward +our fishermen, I recommend you to confer upon the Executive the power to +suspend by proclamation the operation of the laws authorizing the transit +of goods, wares, and merchandise in bond across the territory of the United +States to Canada, and, further, should such an extreme measure become +necessary, to suspend the operation of any laws whereby the vessels of the +Dominion of Canada are permitted to enter the waters of the United States. + +A like unfriendly disposition has been manifested on the part of Canada in +the maintenance of a claim of right to exclude the citizens of the United +States from the navigation of the St. Lawrence. This river constitutes a +natural outlet to the ocean for eight States, with an aggregate population +of about 17,600,000 inhabitants, and with an aggregate tonnage of 661,367 +tons upon the waters which discharge into it. The foreign commerce of our +ports on these waters is open to British competition, and the major part of +it is done in British bottoms. + +If the American seamen be excluded from this natural avenue to the ocean, +the monopoly of the direct commerce of the lake ports with the Atlantic +would be in foreign hands, their vessels on transatlantic voyages having an +access to our lake ports which would be denied to American vessels on +similar voyages. To state such a proposition is to refute its justice. + +During the Administration of Mr. John Quincy Adams Mr. Clay unanswerably +demonstrated the natural right of the citizens of the United States to the +navigation of this river, claiming that the act of the congress of Vienna +in opening the Rhine and other rivers to all nations showed the judgment of +European jurists and statesmen that the inhabitants of a country through +which a navigable river passes have a natural right to enjoy the navigation +of that river to and into the sea, even though passing through the +territories of another power. This right does not exclude the coequal right +of the sovereign possessing the territory through which the river debouches +into the sea to make such regulations relative to the police of the +navigation as may be reasonably necessary; but those regulations should be +framed in a liberal spirit of comity, and should not impose needless +burdens upon the commerce which has the right of transit. It has been found +in practice more advantageous to arrange these regulations by mutual +agreement. The United States are ready to make any reasonable arrangement +as to the police of the St. Lawrence which may be suggested by Great +Britain. + +If the claim made by Mr. Clay was just when the population of States +bordering on the shores of the Lakes was only 3,400,000, it now derives +greater force and equity from the increased population, wealth, production, +and tonnage of the States on the Canadian frontier. Since Mr. Clay advanced +his argument in behalf of our right the principle for which he contended +has been frequently, and by various nations, recognized by law or by +treaty, and has been extended to several other great rivers. By the treaty +concluded at Mayence in 1831 the Rhine was declared free from the point +where it is first navigable into the sea. By the convention between Spain +and Portugal concluded in 1835 the navigation of the Douro throughout its +whole extent was made free for the subjects of both Crowns. In 1853 the +Argentine Confederation by treaty threw open the free navigation of the +Parana and the Uruguay to the merchant vessels of all nations. In 1856 the +Crimean War was closed by a treaty which provided for the free navigation +of the Danube. In 1858 Bolivia by treaty declared that it regarded the +rivers Amazon and La Plata, in accordance with fixed principles of national +law, as highways or channels opened by nature for the commerce of all +nations. In 1859 the Paraguay was made free by treaty, and in December, +1866, the Emperor of Brazil by imperial decree declared the Amazon to be +open to the frontier of Brazil to the merchant ships of all nations. The +greatest living British authority on this subject, while asserting the +abstract right of the British claim, says: It seems difficult to deny that +Great Britain may ground her refusal upon strict law, but it is equally +difficult to deny, first, that in so doing she exercises harshly an extreme +and hard law; secondly, that her conduct with respect to the navigation of +the St. Lawrence is in glaring and discreditable inconsistency with her +conduct with respect to the navigation of the Mississippi. On the ground +that she possessed a small domain in which the Mississippi took its rise, +she insisted on the right to navigate the entire volume of its waters. On +the ground that she possesses both banks of the St. Lawrence, where it +disembogues itself into the sea, she denies to the United States the right +of navigation, though about one-half of the waters of Lakes Ontario. Erie, +Huron, and Superior, and the whole of Lake Michigan, through which the +river flows, are the property of the United States. The whole nation is +interested in securing cheap transportation from the agricultural States of +the West to the Atlantic Seaboard. To the citizens of those States it +secures a greater return for their labor; to the inhabitants of the +seaboard it affords cheaper food; to the nation, an increase in the annual +surplus of wealth. It is hoped that the Government of Great Britain will +see the justice of abandoning the narrow and inconsistent claim to which +her Canadian Provinces have urged her adherence. + +Our depressed commerce is a subject to which I called your special +attention at the last session, and suggested that we will in the future +have to look more to the countries south of us, and to China and Japan, for +its revival. Our representatives to all these Governments have exerted +their influence to encourage trade between the United States and the +countries to which they are accredited. But the fact exists that the +carrying is done almost entirely in foreign bottoms, and while this state +of affairs exists we can not control our due share of the commerce of the +world; that between the Pacific States and China and Japan is about all the +carrying trade now conducted in American vessels. I would recommend a +liberal policy toward that line of American steamers--one that will insure +its success, and even increased usefulness. + +The cost of building iron vessels, the only ones that can compete with +foreign ships in the carrying trade, is so much greater in the United +States than in foreign countries that without some assistance from the +Government they can not be successfully built here. There will be several +propositions laid before Congress in the course of the present session +looking to a remedy for this evil. Even if it should be at some cost to the +National Treasury, I hope such encouragement will be given as will secure +American shipping on the high seas and American shipbuilding at home. + +The condition of the archives at the Department of State calls for the +early action of Congress. The building now rented by that Department is a +frail structure, at an inconvenient distance from the Executive Mansion and +from the other Departments, is ill adapted to the purpose for which it is +used, has not capacity to accommodate the archives, and is not fireproof. +Its remote situation, its slender construction, and the absence of a supply +of water in the neighborhood leave but little hope of safety for either the +building or its contents in case of the accident of a fire. Its destruction +would involve the loss of the rolls containing the original acts and +resolutions of Congress, of the historic records of the Revolution and of +the Confederation, of the whole series of diplomatic and consular archives +since the adoption of the Constitution, and of the many other valuable +records and papers left with that Department when it was the principal +depository of the governmental archives. I recommend an appropriation for +the construction of a building for the Department of State. + +I recommend to your consideration the propriety of transferring to the +Department of the Interior, to which they seem more appropriately to +belong, all powers and duties in relation to the Territories with which the +Department of State is now charged by law or usage; and from the Interior +Department to the War Department the Pension Bureau, so far as it regulates +the payment of soldiers' pensions. I would further recommend that the +payment of naval pensions be transferred to one of the bureaus of the Navy +Department. + +The estimates for the expenses of the Government for the next fiscal year +are $18,244,346.01 less than for the current one, but exceed the +appropriations for the present year for the same items $8,972,127.56. In +this estimate, however, is included $22,338,278.37 for public works +heretofore begun under Congressional provision, and of which only so much +is asked as Congress may choose to give. The appropriation for the same +works for the present fiscal year was $11,984,518.08. + +The average value of gold, as compared with national currency, for the +whole of the year 1869 was about 134, and for eleven months of 1870 the +same relative value has been about 115. The approach to a specie basis is +very gratifying, but the fact can not be denied that the instability of the +value of our currency is prejudicial to our prosperity, and tends to keep +up prices, to the detriment of trade. The evils of a depreciated and +fluctuating currency are so great that now, when the premium on gold has +fallen so much, it would seem that the time has arrived when by wise and +prudent legislation Congress should look to a policy which would place our +currency at par with gold at no distant day. + +The tax collected from the people has been reduced more than $80,000,000 +per annum. By steadiness in our present course there is no reason why in a +few short years the national tax gatherer may not disappear from the door +of the citizen almost entirely. With the revenue stamp dispensed by +postmasters in every community, a tax upon liquors of all sorts and tobacco +in all its forms, and by a wise adjustment of the tariff, which will put a +duty only upon those articles which we could dispense with, known as +luxuries, and on those which we use more of than we produce, revenue enough +may be raised after a few years of peace and consequent reduction of +indebtedness to fulfill all our obligations. A further reduction of +expenses, in addition to a reduction of interest account, may be relied on +to make this practicable. Revenue reform, if it means this, has my hearty +support. If it implies a collection of all the revenue for the support of +the Government, for the payment of principal and interest of the public +debt, pensions, etc., by directly taxing the people, then I am against +revenue reform, and confidently believe the people are with me. If it means +failure to provide the necessary means to defray all the expenses of +Government, and thereby repudiation of the public debt and pensions, then I +am still more opposed to such kind of revenue reform. Revenue reform has +not been defined by any of its advocates to my knowledge, but seems to be +accepted as something which is to supply every man's wants without any cost +or effort on his part. + +A true revenue reform can not be made in a day, but must be the work of +national legislation and of time. As soon as the revenue can be dispensed +with, all duty should be removed from coffee, tea and other articles of +universal use not produced by ourselves. The necessities of the country +compel us to collect revenue from our imports. An army of assessors and +collectors is not a pleasant sight to the citizen, but that of a tariff for +revenue is necessary. Such a tariff, so far as it acts as an encouragement +to home production, affords employment to labor at living wages, in +contrast to the pauper labor of the Old World, and also in the development +of home resources. + +Under the act of Congress of the 15th day of July, 1870, the Army has +gradually been reduced, so that on the 1st day of January, 1871, the number +of commissioned officers and men will not exceed the number contemplated by +that law. + +The War Department building is an old structure, not fireproof, and +entirely inadequate in dimensions to our present wants. Many thousands of +dollars are now paid annually for rent of private buildings to accommodate +the various bureaus of the Department. I recommend an appropriation for a +new War Department building, suited to the present and growing wants of the +nation. + +The report of the Secretary of War shows a very satisfactory reduction in +the expenses of the Army for the last fiscal year. For details you are +referred to his accompanying report. + +The expenses of the Navy for the whole of the last year--i.e., from +December 1, 1869, the date of the last report--are less than $19,000,000, +or about $1,000,000 less than they were the previous year. The expenses +since the commencement of this fiscal year--i.e., since July 1--show for +the five months a decrease of over $2,400,000 from those of the +corresponding months last year. The estimates for the current year were +$28,205,671.37. Those for next year are $20,683,317, with $955,100 +additional for necessary permanent improvements. These estimates are made +closely for the mere maintenance of the naval establishment as now is, +without much in the nature of permanent improvement. The appropriations +made for the last and current years were evidently intended by Congress, +and are sufficient only, to keep the Navy on its present footing by the +repairing and refitting of our old ships. + +This policy must, of course, gradually but surely destroy the Navy, and it +is in itself far from economical, as each year that it is pursued the +necessity for mere repairs in ships and navy-yards becomes more imperative +and more costly, and our current expenses are annually increased for the +mere repair of ships, many of which must soon become unsafe and useless. I +hope during the present session of Congress to be able to submit to it a +plan by which naval vessels can be built and repairs made with great saving +upon the present cost. + +It can hardly be wise statesmanship in a Government which represents a +country with over 5,000 miles of coast line on both oceans, exclusive of +Alaska, and containing 40,000,000 progressive people, with relations of +every nature with almost every foreign country, to rest with such +inadequate means of enforcing any foreign policy, either of protection or +redress. Separated by the ocean from the nations of the Eastern Continent, +our Navy is our only means of direct protection to our citizens abroad or +for the enforcement of any foreign policy. + +The accompanying report of the Postmaster-General shows a most satisfactory +working of that Department. With the adoption of the recommendations +contained therein, particularly those relating to a reform in the franking +privilege and the adoption of the "correspondence cards," a self-sustaining +postal system may speedily be looked for, and at no distant day a further +reduction of the rate of postage be attained. + +I recommend authorization by Congress to the Postmaster-General and +Attorney-General to issue all commissions to officials appointed through +their respective Departments. At present these commissions, where +appointments are Presidential, are issued by the State Department. The law +in all the Departments of Government, except those of the Post-Office and +of Justice, authorizes each to issue its own commissions. + +Always favoring practical reforms, I respectfully call your attention to +one abuse of long standing which I would like to see remedied by this +Congress. It is a reform in the civil service of the country. I would have +it go beyond the mere fixing of the tenure of office of clerks and +employees who do not require "the advice and consent of the Senate" to make +their appointments complete. I would have it govern, not the tenure, but +the manner of making all appointments. There is no duty which so much +embarrasses the Executive and heads of Departments as that of appointments, +nor is there any such arduous and thankless labor imposed on Senators and +Representatives as that of finding places for constituents. The present +system does not secure the best men, and often not even fit men, for public +place. The elevation and purification of the civil service of the +Government will be hailed with approval by the whole people of the United +States. + +Reform in the management of Indian affairs has received the special +attention of the Administration from its inauguration to the present day. +The experiment of making it a missionary work was tried with a few agencies +given to the denomination of Friends, and has been found to work most +advantageously. All agencies and superintendencies not so disposed of were +given to officers of the Army. The act of Congress reducing the Army +renders army officers ineligible for civil positions. Indian agencies being +civil offices, I determined to give all the agencies to such religious +denominations as had heretofore established missionaries among the Indians, +and perhaps to some other denominations who would undertake the work on the +same terms--i.e., as a missionary work. The societies selected are allowed +to name their own agents, subject to the approval of the Executive, and are +expected to watch over them and aid them as missionaries, to Christianize +and civilize the Indian, and to train him in the arts of peace. The +Government watches over the official acts of these agents, and requires of +them as strict an accountability as if they were appointed in any other +manner. I entertain the confident hope that the policy now pursued will in +a few years bring all the Indians upon reservations, where they will live +in houses, and have schoolhouses and churches, and will be pursuing +peaceful and self-sustaining avocations, and where they may be visited by +the law-abiding white man with the same impunity that he now visits the +civilized white settlements. I call your special attention to the report of +the Commissioner of Indian Affairs for full information on this subject. + +During the last fiscal year 8,095,413 acres of public land were disposed +of. Of this quantity 3,698,910.05 acres were taken under the homestead law +and 2,159,515.81 acres sold for cash. The remainder was located with +military warrants, college or Indian scrip, or applied in satisfaction of +grants to railroads or for other public uses. The entries under the +homestead law during the last year covered 961,545 acres more than those +during the preceding year. Surveys have been vigorously prosecuted to the +full extent of the means applicable to the purpose. The quantity of land in +market will amply supply the present demand. The claim of the settler under +the homestead or the preemption laws is not, however, limited to lands +subject to sale at private entry. Any unappropriated surveyed public land +may, to a limited amount, be acquired under the former laws if the party +entitled to enter under them will comply with the requirements they +prescribe in regard to the residence and cultivation. The actual settler's +preference right of purchase is even broader, and extends to lands which +were unsurveyed at the time of his settlement. His right was formerly +confined within much narrower limits, and at one period of our history was +conferred only by special statutes. They were enacted from time to time to +legalize what was then regarded as an unauthorized intrusion upon the +national domain. The opinion that the public lands should be regarded +chiefly as a source of revenue is no longer maintained. The rapid +settlement and successful cultivation of them are now justly considered of +more importance to our well-being than is the fund which the sale of them +would produce. The remarkable growth and prosperity of our new States and +Territories attest the wisdom of the legislation which invites the tiller +of the soil to secure a permanent home on terms within the reach of all. +The pioneer who incurs the dangers and privations of a frontier life, and +thus aids in laying the foundation of new commonwealths, renders a signal +service to his country, and is entitled to its special favor and +protection. These laws secure that object and largely promote the general +welfare. They should therefore be cherished as a permanent feature of our +land system. + +Good faith requires us to give full effect to existing grants. The +time-honored and beneficent policy of setting apart certain sections of +public land for educational purposes in the new States should be continued. +When ample provision shall have been made for these objects, I submit as a +question worthy of serious consideration whether the residue of our +national domain should not be wholly disposed of under the provisions the +homestead and preemption laws. + +In addition to the swamp and overflowed lands granted to the States in +which they are situated, the lands taken under the agricultural-college +acts and for internal-improvement purposes under the act of September, +1841, and the acts supplemental thereto, there had been conveyed up to the +close of the last fiscal year, by patent or other equivalent title, to +States and corporations 27,836,257.63 acres for railways, canals, and wagon +roads. It is estimated that an additional quantity of 174,735,523 acres is +still due under grants for like uses. The policy of thus aiding the States +in building works of internal improvement was inaugurated more than forty +years since in the grants to Indiana and Illinois, to aid those States in +opening canals to connect the waters of the Wabash with those of Lake Erie +and the waters of the Illinois with those of Lake Michigan. It was +followed, with some modifications, in the grant to Illinois of alternate +sections of public land within certain limits of the Illinois Central +Railway. Fourteen States and sundry corporations have received similar +subsidies in connection with railways completed or in process of +construction. As the reserved sections are rated at the double minimum, the +sale of them at the enhanced price has thus in many instances indemnified +the Treasury for the granted lands. The construction of some of these +thoroughfares has undoubtedly given a vigorous impulse to the development +of our resources and the settlement of the more distant portions of the +country. It may, however, be well insisted that much of our legislation in +this regard has been characterized by indiscriminate and profuse +liberality. The United States should not loan their credit in aid of any +enterprise undertaken by States or corporations, nor grant lands in any +instance, unless the projected work is of acknowledged national importance. +I am strongly inclined to the opinion that it is inexpedient and +unnecessary to bestow subsidies of either description; but should Congress +determine otherwise I earnestly recommend that the right of settlers and of +the public be more effectually secured and protected by appropriate +legislation. + +During the year ending September 30, 1870, there were filed in the Patent +Office 19,411 applications for patents, 3,374 caveats, and 160 applications +for the extension of patents. Thirteen thousand six hundred and twenty-two +patents, including reissues and designs, were issued, 1,010 extended, and +1,089 allowed, but not issued by reason of the nonpayment of the final +fees. The receipts of the office during the year were $136,304.29 in excess +of its expenditures. + +The work of the Census Bureau has been energetically prosecuted. The +preliminary report, containing much information of special value and +interest, will be ready for delivery during the present session. The +remaining volumes will be completed with all the dispatch consistent with +perfect accuracy in arranging and classifying the returns. We shall thus at +no distant day be furnished with an authentic record of our condition and +resources. It will, I doubt not, attest the growing prosperity of the +country, although during the decade which has just closed it was so +severely tried by the great war waged to maintain its integrity and to +secure and perpetuate our free institutions. + +During the last fiscal year the sum paid to pensioners, including the cost +of disbursement, was $27,780,811.11, and 1,758 bounty-land warrants were +issued. At its close 198,686 names were on the pension rolls. + +The labors of the Pension Office have been directed to the severe scrutiny +of the evidence submitted in favor of new claims and to the discovery of +fictitious claims which have been heretofore allowed. The appropriation for +the employment of special agents for the investigation of frauds has been +judiciously used, and the results obtained have been of unquestionable +benefit to the service. + +The subjects of education and agriculture are of great interest to the +success of our republican institutions, happiness, and grandeur as a +nation. In the interest of one a bureau has been established in the +Interior Department--the Bureau of Education; and in the interest of the +other, a separate Department, that of Agriculture. I believe great general +good is to flow from the operations of both these Bureaus if properly +fostered. I can not commend to your careful consideration too highly the +reports of the Commissioners of Education and of Agriculture, nor urge too +strongly such liberal legislation as to secure their efficiency. + +In conclusion I would sum up the policy of the Administration to be a +thorough enforcement of every law; a faithful collection of every tax +provided for; economy in the disbursement of the same; a prompt payment of +every debt of the nation; a reduction of taxes as rapidly as the +requirements of the country will admit; reductions of taxation and tariff, +to be so arranged as to afford the greatest relief to the greatest number; +honest and fair dealings with all other peoples, to the end that war, with +all its blighting consequences, may be avoided, but without surrendering +any right or obligation due to us; a reform in the treatment of Indians and +in the whole civil service of the country; and, finally, in securing a +pure, untrammeled ballot, where every man entitled to cast a vote may do +so, just once at each election, without fear of molestation or proscription +on account of his political faith, nativity, of color. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 4, 1871 + +To the Senate and House of Representatives: + +In addressing my third annual message to the law-making branch of the +Government it is gratifying to be able to state that during the past year +success has generally attended the effort to execute all laws found upon +the statute books. The policy has been not to inquire into the wisdom of +laws already enacted, but to learn their spirit and intent and to enforce +them accordingly. + +The past year has, under a wise Providence, been one of general prosperity +to the nation. It has, however, been attended with more than usual +chastisements in the loss of life and property by storm and fire. These +disasters have served to call forth the best elements of human nature in +our country and to develop a friendship for us on the part of foreign +nations which goes far toward alleviating the distresses occasioned by +these calamities. The benevolent, who have so generously shared their means +with the victims of these misfortunes, will reap their reward in the +consciousness of having performed a noble act and in receiving the grateful +thanks of men, women, and children whose sufferings they have relieved. + +The relations of the United States with foreign powers continue to be +friendly. The year has been an eventful one in witnessing two great +nations, speaking one language and having one lineage, settling by peaceful +arbitration disputes of long standing and liable at any time to bring those +nations into bloody and costly conflict. An example has thus been set +which, if successful in its final issue, may be followed by other civilized +nations, and finally be the means of returning to productive industry +millions of men now maintained to settle the disputes of nations by the +bayonet and the broadside. + +I transmit herewith a copy of the treaty alluded to, which has been +concluded since the adjournment of Congress with Her Britannic Majesty, and +a copy of the protocols of the conferences of the commissioners by whom it +was negotiated. This treaty provides methods for adjusting the questions +pending between the two nations. + +Various questions are to be adjusted by arbitration. I recommend Congress +at an early day to make the necessary provision for the tribunal at Geneva +and for the several commissioners on the part of the United States called +for by the treaty. + +His Majesty the King of Italy, the President of the Swiss Confederation, +and His Majesty the Emperor of Brazil have each consented, on the joint +request of the two powers, to name an arbiter for the tribunal at Geneva. I +have caused my thanks to be suitably expressed for the readiness with which +the joint request has been complied with, by the appointment of gentlemen +of eminence and learning to these important positions. + +His Majesty the Emperor of Germany has been pleased to comply with the +joint request of the two Governments, and has consented to act as the +arbitrator of the disputed water boundary between the United States and +Great Britain. + +The contracting parties in the treaty have undertaken to regard as between +themselves certain principles of public law, for which the United States +have contended from the commencement of their history. They have also +agreed to bring those principles to the knowledge of the other maritime +powers and to invite them to accede to them. Negotiations are going on as +to the form of the note by which the invitation is to be extended to the +other powers. + +I recommend the legislation necessary on the part of the United States to +bring into operation the articles of the treaty relating to the fisheries +and to the other matters touching the relations of the United States toward +the British North American possessions, to become operative so soon as the +proper legislation shall be had on the part of Great Britain and its +possessions. It is much to be desired that this legislation may become +operative before the fishermen of the United States begin to make their +arrangements for the coming season. + +I have addressed a communication, of which a copy is transmitted herewith, +to the governors of New York, Pennsylvania, Ohio, Indiana, Michigan, +Illinois, and Wisconsin, urging upon the governments of those States, +respectively, the necessary action on their part to carry into effect the +object of the article of the treaty which contemplates the use of the +canals, on either side, connected with the navigation of the lakes and +rivers forming the boundary, on terms of equality, by the inhabitants of +both countries. It is hoped that the importance of the object and the +benefits to flow therefrom will secure the speedy approval and legislative +sanction of the States concerned. + +I renew the recommendation for an appropriation for determining the true +position of the forty-ninth parallel of latitude where it forms the +boundary between the United States and the British North American +possessions, between the Lake of the Woods and the summit of the Rocky +Mountains. The early action of Congress on this recommendation would put it +in the power of the War Department to place a force in the field during the +next summer. + +The resumption of diplomatic relations between France and Germany has +enabled me to give directions for the withdrawal of the protection extended +to Germans in France by the diplomatic and consular representatives of the +United States in that country. It is just to add that the delicate duty of +this protection has been performed by the minister and the consul-general +at Paris, and the various consuls in France under the supervision of the +latter, with great kindness as well as with prudence and tact. Their course +has received the commendation of the German Government, and has wounded no +susceptibility of the French. + +The Government of the Emperor of Germany continues to manifest a friendly +feeling toward the United States, and a desire to harmonize with the +moderate and just policy which this Government maintains in its relations +with Asiatic powers, as well as with the South American Republics. I have +given assurances that the friendly feelings of that Government are fully +shared by the United States. + +The ratifications of the consular and naturalization conventions with the +Austro-Hungarian Empire have been exchanged. + +I have been officially informed of the annexation of the States of the +Church to the Kingdom of Italy, and the removal of the capital of that +Kingdom to Rome. In conformity with the established policy of the United +States, I have recognized this change. The ratifications of the new treaty +of commerce between the United States and Italy have been exchanged. The +two powers have agreed in this treaty that private property at sea shall be +exempt from capture in case of war between the two powers. The United +States have spared no opportunity of incorporating this rule into the +obligation of nations. + +The Forty-first Congress, at its third session, made an appropriation for +the organization of a mixed commission for adjudicating upon the claims of +citizens of the United States against Spain growing out of the insurrection +in Cuba. That commission has since been organized. I transmit herewith the +correspondence relating to its formation and its jurisdiction. It is to be +hoped that this commission will afford the claimants a complete remedy for +their injuries. + +It has been made the agreeable duty of the United States to preside over a +conference at Washington between the plenipotentiaries of Spain and the +allied South American Republics, which has resulted in an armistice, with +the reasonable assurance of a permanent peace. + +The intimate friendly relations which have so long existed between the +United States and Russia continue undisturbed. The visit of the third son +of the Emperor is a proof that there is no desire on the part of his +Government to diminish the cordiality of those relations. The hospitable +reception which has been given to the Grand Duke is a proof that on our +side we share the wishes of that Government. The inexcusable course of the +Russian minister at Washington rendered it necessary to ask his recall and +to decline to longer receive that functionary as a diplomatic +representative. It was impossible, with self-respect or with a just regard +to the dignity of the country, to permit Mr. Catacazy to continue to hold +intercourse with this Government after his personal abuse of Government +officials, and during his persistent interferences, through various means, +with the relations between the United States and other powers. In +accordance with my wishes, this Government has been relieved of further +intercourse with Mr. Catacazy, and the management of the affairs of the +imperial legation has passed into the hands of a gentleman entirely +unobjectionable. + +With Japan we continue to maintain intimate relations. The cabinet of the +Mikado has since the close of the last session of Congress selected +citizens of the United States to serve in offices of importance in several +departments of Government. I have reason to think that this selection is +due to an appreciation of the disinterestedness of the policy which the +United States have pursued toward Japan. It is our desire to continue to +maintain this disinterested and just policy with China as well as Japan. +The correspondence transmitted herewith shows that there is no disposition +on the part of this Government to swerve from its established course. + +Prompted by a desire to put an end to the barbarous treatment of our +shipwrecked sailors on the Korean coast, I instructed our minister at +Peking to endeavor to conclude a convention with Korea for securing the +safety and humane treatment of such mariners. + +Admiral Rodgers was instructed to accompany him with a sufficient force to +protect him in case of need. + +A small surveying party sent out, on reaching the coast was treacherously +attacked at a disadvantage. Ample opportunity was given for explanation and +apology for the insult. Neither came. A force was then landed. After an +arduous march over a rugged and difficult country, the forts from which the +outrages had been committed were reduced by a gallant assault and were +destroyed. Having thus punished the criminals, and having vindicated the +honor of the flag, the expedition returned, finding it impracticable under +the circumstances to conclude the desired convention. I respectfully refer +to the correspondence relating thereto, herewith submitted, and leave the +subject for such action as Congress may see fit to take. + +The Republic of Mexico has not yet repealed the very objectionable laws +establishing what is known as the "free zone" on the frontier of the United +States. It is hoped that this may yet be done, and also that more stringent +measures may be taken by that Republic for restraining lawless persons on +its frontiers. I hope that Mexico by its own action will soon relieve this +Government of the difficulties experienced from these causes. + +Our relations with the various Republics of Central and South America +continue, with one exception, to be cordial and friendly. + +I recommend some action by Congress regarding the overdue installments +under the award of the Venezuelan Claims Commission of 1866. The internal +dissensions of this Government present no justification for the absence of +effort to meet their solemn treaty obligations. + +The ratification of an extradition treaty with Nicaragua has been +exchanged. + +It is a subject for congratulation that the great Empire of Brazil has +taken the initiatory step toward the abolition of slavery. Our relations +with that Empire, always cordial, will naturally be made more so by this +act. It is not too much to hope that the Government of Brazil may hereafter +find it for its interest, as well as intrinsically right, to advance toward +entire emancipation more rapidly than the present act contemplates. + +The true prosperity and greatness of a nation is to be found in the +elevation and education of its laborers. + +It is a subject for regret that the reforms in this direction which were +voluntarily promised by the statesmen of Spain have not been carried out in +its West India colonies. The laws and regulations for the apparent +abolition of slavery in Cuba and Porto Rico leave most of the laborers in +bondage, with no hope of release until their lives become a burden to their +employers. + +I desire to direct your attention to the fact that citizens of the United +States, or persons claiming to be citizens of the United States, are large +holders in foreign lands of this species of property, forbidden by the +fundamental law of their alleged country. I recommend to Congress to +provide by stringent legislation a suitable remedy against the holding, +owning or dealing in slaves, or being interested in slave property, in +foreign lands, either as owners, hirers, or mortgagors, by citizens of the +United States. + +It is to be regretted that the disturbed condition of the island of Cuba +continues to be a source of annoyance and of anxiety. The existence of a +protracted struggle in such close proximity to our own territory, without +apparent prospect of an early termination, can not be other than an object +of concern to a people who, while abstaining from interference in the +affairs of other powers, naturally desire to see every country in the +undisturbed enjoyment of peace, liberty, and the blessings of free +institutions. + +Our naval commanders in Cuban waters have been instructed, in case it +should become necessary, to spare no effort to protect the lives and +property of bona fide American citizens and to maintain the dignity of the +flag. + +It is hoped that all pending questions with Spain growing out of the +affairs in Cuba may be adjusted in the spirit of peace and conciliation +which has hitherto guided the two powers in their treatment of such +questions. + +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, I earnestly recommend that an appropriation be made to +support at least four American youths in each of those countries, to serve +as a part of the official family of our ministers there. Our +representatives would not even then be placed upon an equality with the +representatives of Great Britain and of some other powers. As now situated, +our representatives in Japan and China have to depend for interpreters and +translators upon natives of those countries who know our language +imperfectly, or procure for the occasion the services of employees in +foreign business houses or the interpreters to other foreign ministers. + +I would also recommend liberal measures for the purpose of supporting the +American lines of steamers now plying between San Francisco and Japan and +China, and the Australian line--almost our only remaining lines of ocean +steamers--and of increasing their services. + +The national debt has been reduced to the extent of $86,057, 126.80 during +the year, and by the negotiation of national bonds at a lower rate of +interest the interest on the public debt has been so far diminished that +now the sum to be raised for the interest account is nearly $17,000,000 +less than on the 1st of March, 1869. It was highly desirable that this +rapid diminution should take place, both to strengthen the credit of the +country and to convince its citizens of their entire ability to meet every +dollar of liability without bankrupting them. But in view of the +accomplishment of these desirable ends: of the rapid development of the +resources of the country; its increasing ability to meet large demands, and +the amount already paid, it is not desirable that the present resources of +the country should continue to be taxed in order to continue this rapid +payment. I therefore recommend a modification of both the tariff and +internal-tax law. I recommend that all taxes from internal sources be +abolished, except those collected from spirituous, vinous, and malt +liquors, tobacco in its various forms, and from stamps. + +In readjusting the tariff I suggest that a careful estimate be made of the +amount of surplus revenue collected under the present laws, after providing +for the current expenses of the Government, the interest count, and a +sinking fund, and that this surplus be reduced in such a manner as to +afford the greatest relief to the greatest number. There are many articles +not produced at home, but which enter largely into general consumption +through articles which are manufactured at home, such as medicines +compounded, etc., etc., from which very little revenue is derived, but +which enter into general use. All such articles I recommend to be placed on +the "free list." Should a further reduction prove advisable, I would then +recommend that it be made upon those articles which can best bear it +without disturbing home production or reducing the wages of American +labor. + +I have not entered into figures, because to do so would be to repeat what +will be laid before you in the report of the Secretary of the Treasury. The +present laws for collecting revenue pay collectors of customs small +salaries, but provide for moieties (shares in all seizures), which, at +principal ports of entry particularly, raise the compensation of those +officials to a large sum. It has always seemed to me as if this system must +at times work perniciously. It holds out an inducement to dishonest men, +should such get possession of those offices, to be lax in their scrutiny of +goods entered, to enable them finally to make large seizures. Your +attention is respectfully invited to this subject. + +Continued fluctuations in the value of gold, as compared with the national +currency, has a most damaging effect upon the increase and development of +the country, in keeping up prices of all articles necessary in everyday +life. It fosters a spirit of gambling, prejudicial alike to national morals +and the national finances. If the question can be met as to how to get a +fixed value to our currency, that value constantly and uniformly +approaching par with specie, a very desirable object will be gained. + +For the operations of the Army in the past year, the expense of maintaining +it, the estimate for the ensuing year, and for continuing seacoast and +other improvements conducted under the supervision of the War Department, I +refer you to the accompanying report of the Secretary of War. + +I call your attention to the provisions of the act of Congress approved +March 3, 1869, which discontinues promotions in the staff corps of the Army +until provided for by law. I recommend that the number of officers in each +grade in the staff corps be fixed, and that whenever the number in any one +grade falls below the number so fixed, that the vacancy may be filled by +promotion from the grade below. I also recommend that when the office of +chief of a corps becomes vacant the place may be filled by selection from +the corps in which the vacancy exists. + +The report of the Secretary of the Navy shows an improvement in the number +and efficiency of the naval force, without material increase in the expense +of supporting it. This is due to the policy which has been adopted, and is +being extended as fast as our material will admit, of using smaller vessels +as cruisers on the several stations. By this means we have been enabled to +occupy at once a larger extent of cruising grounds, to visit more +frequently the ports where the presence of our flag is desirable, and +generally to discharge more efficiently the appropriate duties of the Navy +in time of peace, without exceeding the number of men or the expenditure +authorized by law. + +During the past year the Navy has, in addition to its regular service, +supplied the men and officers for the vessels of the Coast Survey, and has +completed the surveys authorized by Congress of the isthmuses of Darien and +Tehuantepec, and, under like authority, has sent out an expedition, +completely furnished and equipped, to explore the unknown ocean of the +north. + +The suggestions of the report as to the necessity for increasing and +improving the materiel of the Navy, and the plan recommended for reducing +the personnel of the service to a peace standard, by the gradual abolition +of certain grades of officers, the reduction of others, and the employment +of some in the service of the commercial marine, are well considered and +deserve the thoughtful attention of Congress. + +I also recommend that all promotions in the Navy above the rank of captain +be by selection instead of by seniority. This course will secure in the +higher grades greater efficiency and hold out an incentive to young +officers to improve themselves in the knowledge of their profession. + +The present cost of maintaining the Navy, its cost compared with that of +the preceding year, and the estimates for the ensuing year are contained in +the accompanying report of the Secretary of the Navy. + +The enlarged receipts of the Post-Office Department, as shown by the +accompanying report of the Postmaster-General, exhibit a gratifying +increase in that branch of the public service. It is the index of the +growth of education and of the prosperity of the people, two elements +highly conducive to the vigor and stability of republics. With a vast +territory like ours, much of it sparsely populated, but all requiring the +services of the mail, it is not at present to be expected that this +Department can be made self-sustaining. But a gradual approach to this end +from year to year is confidently relied on, and the day is not far distant +when the Post-Office Department of the Government will prove a much greater +blessing to the whole people than it is now. + +The suggestions of the Postmaster-General for improvements in the +Department presided over by him are earnestly recommended to you, special +attention. Especially do I recommend favorable consideration of the plan +for uniting the telegraphic system of the United States with the postal +system. It is believed that by such a course the cost of telegraphing could +be much reduced, and the service as well, if not better, rendered. It would +secure the further advantage of extending the telegraph through portions of +the country where private enterprise will not construct it. Commerce, +trade, and, above all, the efforts to bring a people widely separated into +a community of interest are always benefited by a rapid intercommunication. +Education, the groundwork of republican institutions, is encouraged by +increasing the facilities to gather speedy news from all parts of the +country. The desire to reap the benefit of such improvements will stimulate +education. I refer you to the report of the Postmaster-General for full +details of the operations of last year and for comparative statements of +results with former years. + +There has been imposed upon the executive branch of the Government the +execution of the act of Congress approved April 20, 1871, and commonly +known as the Kuklux law, in a portion of the State of South Carolina. The +necessity of the course pursued will be demonstrated by the report of the +Committee to Investigate Southern Outrages. Under the provisions of the +above act I issued a proclamation calling the attention of the people of +the United States to the same, and declaring my reluctance to exercise any +of the extraordinary powers thereby conferred upon me, except in case of +imperative necessity, but making known my purpose to exercise such powers +whenever it should become necessary to do so for the purpose of securing to +all citizens of the United States the peaceful enjoyment of the rights +guaranteed to them by the Constitution and the laws. + +After the passage of this law information was received from time to time +that combinations of the character referred to in this law existed and were +powerful in many parts of the Southern States, particularly in certain +counties in the State of South Carolina. + +Careful investigation was made, and it was ascertained that in nine +counties of that State such combinations were active and powerful, +embracing a sufficient portion of the citizens to control the local +authority, and having, among other things, the object of depriving the +emancipated class of the substantial benefits of freedom and of preventing +the free political action of those citizens who did not sympathize with +their own views. Among their operations were frequent scourgings and +occasional assassinations, generally perpetrated at night by disguised +persons, the victims in almost all cases being citizens of different +political sentiments from their own or freed persons who had shown a +disposition to claim equal rights with other citizens. Thousands of +inoffensive and well disposed citizens were the sufferers by this lawless +violence, + +Thereupon, on the 12th of October, 1871, a proclamation was issued, in +terms of the law, calling upon the members of those combinations to +disperse within five days and to deliver to the marshal or military +officers of the United States all arms, ammunition, uniforms, disguises, +and other means and implements used by them for carrying out their unlawful +purposes. + +This warning not having been heeded, on the 17th of October another +proclamation was issued, suspending the privileges of the writ of habeas +corpus in nine counties in that State. + +Direction was given that within the counties so designated persons +supposed, upon creditable information, to be members of such unlawful +combinations should be arrested by the military forces of the United States +and delivered to the marshal, to be dealt with according to law. In two of +said counties, York and Spartanburg, many arrests have been made. At the +last account the number of persons thus arrested was 168. Several hundred, +whose criminality was ascertained to be of an inferior degree, were +released for the present. These have generally made confessions of their +guilt. + +Great caution has been exercised in making these arrests, and, +notwithstanding the large number, it is believed that no innocent person is +now in custody. The prisoners will be held for regular trial in the +judicial tribunals of the United States. + +As soon as it appeared that the authorities of the United States were about +to take vigorous measures to enforce the law, many persons absconded, and +there is good ground for supposing that all of such persons have violated +the law. A full report of what has been done under this law will be +submitted to Congress by the Attorney-General. + +In Utah there still remains a remnant of barbarism, repugnant to +civilization, to decency, and to the laws of the United States. Territorial +officers, however, have been found who are willing to perform their duty in +a spirit of equity and with a due sense of the necessity of sustaining the +majesty of the law. Neither polygamy nor any other violation of existing +statutes will be permitted within the territory of the United States. It is +not with the religion of the self-styled Saints that we are now dealing, +but with their practices. They will be protected in the worship of God +according to the dictates of their consciences, but they will not be +permitted to violate the laws under the cloak of religion. + +It may be advisable for Congress to consider what, in the execution of the +laws against polygamy, is to be the status of plural wives and their +offspring. The propriety of Congress passing an enabling act authorizing +the Territorial legislature of Utah to legitimize all children born prior +to a time fixed in the act might be justified by its humanity to these +innocent children. This is a suggestion only, and not a recommendation. + +The policy pursued toward the Indians has resulted favorably, so far as can +be judged from the limited time during which it has been in operation. +Through the exertions of the various societies of Christians to whom has +been intrusted the execution of the policy, and the board of commissioners +authorized by the law of April 10, 1869, many tribes of Indians have been +induced to settle upon reservations, to cultivate the soil, to perform +productive labor of various kinds, and to partially accept civilization. +They are being cared for in such a way, it is hoped, as to induce those +still pursuing their old habits of life to embrace the only opportunity +which is left them to avoid extermination. + +I recommend liberal appropriations to carry out the Indian peace policy, +not only because it is humane, Christian like, and economical, but because +it is right. + +I recommend to your favorable consideration also the policy of granting a +Territorial government to the Indians in the Indian Territory west of +Arkansas and Missouri and south of Kansas. In doing so every right +guaranteed to the Indian by treaty should be secured. Such a course might +in time be the means of collecting most of the Indians now between the +Missouri and the Pacific and south of the British possessions into one +Territory or one State. The Secretary of the Interior has treated upon this +subject at length, and I commend to you his suggestions. + +I renew my recommendation that the public lands be regarded as a heritage +to our children, to be disposed of only as required for occupation and to +actual settlers. Those already granted have been in great part disposed of +in such a way as to secure access to the balance by the hardy settler who +may wish to avail himself of them, but caution should be exercised even in +attaining so desirable an object. + +Educational interest may well be served by the grant of the proceeds of the +sale of public lands to settlers. I do not wish to be understood as +recommending in the least degree a curtailment of what is being done by the +General Government for the encouragement of education. + +The report of the Secretary of the Interior submitted with this will give +you all the information collected and prepared for publication in regard to +the census taken during the year 1870; the operations of the Bureau of +Education for the year; the Patent Office; the Pension Office; the Land +Office, and the Indian Bureau. + +The report of the Commissioner of Agriculture gives the operations of his +Department for the year. As agriculture is the groundwork of our +prosperity, too much importance can not be attached to the labors of this +Department. It is in the hands of an able head, with able assistants, all +zealously devoted to introducing into the agricultural productions of the +nation all useful products adapted to any of the various climates and soils +of our vast territory, and to giving all useful information as to the +method of cultivation, the plants, cereals, and other products adapted to +particular localities. Quietly but surely the Agricultural Bureau is +working a great national good, and if liberally supported the more widely +its influence will be extended and the less dependent we shall be upon the +products of foreign countries. + +The subject of compensation to the heads of bureaus and officials holding +positions of responsibility, and requiring ability and character to fill +properly, is one to which your attention is invited. But few of the +officials receive a compensation equal to the respectable support of a +family, while their duties are such as to involve millions of interest. In +private life services demand compensation equal to the services rendered; a +wise economy would dictate the same rule in the Government service. + +I have not given the estimates for the support of Government for the +ensuing year, nor the comparative statement between the expenditures for +the year just passed and the one just preceding, because all these figures +are contained in the accompanying reports or in those presented directly to +Congress. These estimates have my approval. + +More than six years having elapsed since the last hostile gun was fired +between the armies then arrayed against each other--one for the +perpetuation, the other for the destruction, of the Union--it may well be +considered whether it is not now time that the disabilities imposed by the +fourteenth amendment should be removed. That amendment does not exclude the +ballot, but only imposes the disability to hold offices upon certain +classes. When the purity of the ballot is secure, majorities are sure to +elect officers reflecting the views of the majority. I do not see the +advantage or propriety of excluding men from office merely because they +were before the rebellion of standing and character sufficient to be +elected to positions requiring them to take oaths to support the +Constitution, and admitting to eligibility those entertaining precisely the +same views, but of less standing in their communities. It may be said that +the former violated an oath, while the latter did not; the latter did not +have it in their power to do so. If they had taken this oath, it can not be +doubted they would have broken it as did the former class. If there are any +great criminals, distinguished above all others for the part they took in +opposition to the Government, they might, in the judgment of Congress, be +excluded from such an amnesty. + +This subject is submitted for your careful consideration. + +The condition of the Southern States is, unhappily, not such as all true +patriotic citizens would like to see. Social ostracism for opinion's sake, +personal violence or threats toward persons entertaining political views +opposed to those entertained by the majority of the old citizens, prevents +immigration and the flow of much-needed capital into the States lately in +rebellion. It will be a happy condition of the country when the old +citizens of these States will take an interest in public affairs, +promulgate ideas honestly entertained, vote for men representing their +views, and tolerate the same freedom of expression and ballot in those +entertaining different political convictions. + +Under the provisions of the act of Congress approved February 21, 1871, a +Territorial government was organized in the District of Columbia. Its +results have thus far fully realized the expectations of its advocates. +Under the direction of the Territorial officers, a system of improvements +has been inaugurated by means of which Washington is rapidly becoming a +city worthy of the nation's capital. The citizens of the District having +voluntarily taxed themselves to a large amount for the purpose of +contributing to the adornment of the seat of Government, I recommend +liberal appropriations on the part of Congress, in order that the +Government may bear its just share of the expense of carrying out a +judicious system of improvements. + +By the great fire in Chicago the most important of the Government buildings +in that city were consumed. Those burned had already become inadequate to +the wants of the Government in that growing city, and, looking to the near +future, were totally inadequate. I recommend, therefore, that an +appropriation be made immediately to purchase the remainder of the square +on which the burned buildings stood, provided it can be purchased at a fair +valuation, or provided that the legislature of Illinois will pass a law +authorizing its condemnation for Government purposes; and also an +appropriation of as much money as can properly be expended toward the +erection of new buildings during this fiscal year. + +The number of immigrants ignorant of our laws, habits, etc., coming into +our country annually has become so great and the impositions practiced upon +them so numerous and flagrant that I suggest Congressional action for their +protection. It seems to me a fair subject of legislation by Congress. I can +not now state as fully as I desire the nature of the complaints made by +immigrants of the treatment they receive, but will endeavor to do so during +the session of Congress, particularly if the subject should receive your +attention. + +It has been the aim of the Administration to enforce honesty and efficiency +in all public offices. Every public servant who has violated the trust +placed in him has been proceeded against with all the rigor of the law. If +bad men have secured places, it has been the fault of the system +established by law and custom for making appointments, or the fault of +those who recommend for Government positions persons not sufficiently well +known to them personally, or who give letters indorsing the characters of +office seekers without a proper sense of the grave responsibility which +such a course devolves upon them. A civil-service reform which can correct +this abuse is much desired. In mercantile pursuits the business man who +gives a letter of recommendation to a friend to enable him to obtain credit +from a stranger is regarded as morally responsible for the integrity of his +friend and his ability to meet his obligations. A reformatory law which +would enforce this principle against all indorsers of persons for public +place would insure great caution in making recommendations. A salutary +lesson has been taught the careless and the dishonest public servant in the +great number of prosecutions and convictions of the last two years. + +It is gratifying to notice the favorable change which is taking place +throughout the country in bringing to punishment those who have proven +recreant to the trusts confided to them and in elevating to public office +none but those who possess the confidence of the honest and the virtuous, +who, it will always be found, comprise the majority of the community in +which they live. + +In my message to Congress one year ago I urgently recommended a reform in +the civil service of the country. In conformity with that recommendation +Congress, in the ninth section of "An act making appropriations for sundry +civil expenses of the Government, and for other purposes," approved March +3, 1871, gave the necessary authority to the Executive to inaugurate a +civil-service reform, and placed upon him the responsibility of doing so. +Under the authority of said act I convened a board of gentlemen eminently +qualified for the work to devise rules and regulations to effect the needed +reform. Their labors are not yet complete, but it is believed that they +will succeed in devising a plan that can be adopted to the great relief of +the Executive, the heads of Departments, and members of Congress, and which +will redound to the true interest of the public service. At all events, the +experiment shall have a fair trial. + +I have thus hastily summed up the operations of the Government during the +last year, and made such suggestions as occur to me to be proper for your +consideration. I submit them with a confidence that your combined action +will be wise, statesmanlike, and in the best interests of the whole +country. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 2, 1872 + +To the Senate and House of Representatives: + +In transmitting to you this my fourth annual message it is with +thankfulness to the Giver of All Good that as a nation we have been blessed +for the past year with peace at home, peace abroad, and a general +prosperity vouchsafed to but few peoples. + +With the exception of the recent devastating fire which swept from the +earth with a breath, as it were, millions of accumulated wealth in the city +of Boston, there has been no overshadowing calamity within the year to +record. It is gratifying to note how, like their fellow-citizens of the +city of Chicago under similar circumstances a year earlier, the citizens of +Boston are rallying under their misfortunes, and the prospect that their +energy and perseverance will overcome all obstacles and show the same +prosperity soon that they would had no disaster befallen them. Otherwise we +have been free from pestilence, war, and calamities, which often overtake +nations; and, as far as human judgment can penetrate the future, no cause +seems to exist to threaten our present peace. + +When Congress adjourned in June last, a question had been raised by Great +Britain, and was then pending, which for a time seriously imperiled the +settlement by friendly arbitration of the grave differences between this +Government and that of Her Britannic Majesty, which by the treaty of +Washington had been referred to the tribunal of arbitration which had met +at Geneva, in Switzerland. + +The arbitrators, however, disposed of the question which had jeoparded the +whole of the treaty and threatened to involve the two nations in most +unhappy relations toward each other in a manner entirely satisfactory to +this Government and in accordance with the views and the policy which it +had maintained. + +The tribunal, which had convened at Geneva in December, concluded its +laborious session on the 14th day of September last, on which day, having +availed itself of the discretionary power given to it by the treaty to +award a sum in gross, it made its decision, whereby it awarded the sum of +$15,500,000 in gold as the indemnity to be paid by Great Britain to the +United States for the satisfaction of all the claims referred to its +consideration. + +This decision happily disposes of a long-standing difference between the +two Governments, and, in connection with another award, made by the German +Emperor under a reference to him by the same treaty, leaves these two +Governments without a shadow upon the friendly relations which it is my +sincere hope may forever remain equally unclouded. + +The report of the agent of the United States appointed to attend the Geneva +tribunal, accompanied by the protocols of the proceedings of the +arbitrators, the arguments of the counsel of both Governments, the award of +the tribunal, and the opinions given by the several arbitrators, is +transmitted herewith. + +I have caused to be communicated to the heads of the three friendly powers +who complied with the joint request made to them under the treaty the +thanks of this Government for the appointment of arbitrators made by them +respectively, and also my thanks to the eminent personages named by them, +and my appreciation of the dignity, patience, impartiality, and great +ability with which they discharged their arduous and high functions. + +Her Majesty's Government has communicated to me the appreciation by Her +Majesty of the ability and indefatigable industry displayed by Mr. Adams, +the arbitrator named on the part of this Government during the protracted +inquiries and discussions of the tribunal. I cordially unite with Her +Majesty in this appreciation. + +It is due to the agent of the United States before the tribunal to record +my high appreciation of the marked ability, unwearied patience, and the +prudence and discretion with which he has conducted the very responsible +and delicate duties committed to him, as it is also due to the learned and +eminent counsel who attended the tribunal on the part of this Government to +express my sense of the talents and wisdom which they brought to bear in +the attainment of the result so happily reached. + +It will be the province of Congress to provide for the distribution among +those who may be entitled to it of their respective shares of the money to +be paid. Although the sum awarded is not payable until a year from the date +of the award, it is deemed advisable that no time be lost in making a +proper examination of the several cases in which indemnification may be +due. I consequently recommend the creation of a board of commissioners for +the purpose. + +By the thirty-fourth article of the treaty of Washington the respective +claims of the United States and of Great Britain in their construction of +the treaty of the 15th of June, 1846, defining the boundary line between +their respective territories, were submitted to the arbitration and award +of His Majesty the Emperor of Germany, to decide which of those claims is +most in accordance with the true interpretation of the treaty of 1846. + +His Majesty the Emperor of Germany, having been pleased to undertake the +arbitration, has the earnest thanks of this Government and of the people of +the United States for the labor, pains, and care which he has devoted to +the consideration of this long-pending difference. I have caused an +expression of my thanks to be communicated to His Majesty. Mr. Bancroft, +the representative of this Government at Berlin, conducted the case and +prepared the statement on the part of the United States with the ability +that his past services justified the public in expecting at his hands. As a +member of the Cabinet at the date of the treaty which has given rise to the +discussion between the two Governments, as the minister to Great Britain +when the construction now pronounced unfounded was first advanced, and as +the agent and representative of the Government to present the case and to +receive the award, he has been associated with the question in all of its +phases, and in every stage has manifested a patriotic zeal and earnestness +in maintenance of the claim of the United States. He is entitled to much +credit for the success which has attended the submission. + +After a patient investigation of the case and of the statements of each +party, His Majesty the Emperor, on the 21st day of October last, signed his +award in writing, decreeing that the claim of the Government of the United +States, that the boundary line between the territories of Her Britannic +Majesty and the United States should be drawn through the Haro Channel, is +most in accordance with the true interpretation of the treaty concluded on +the 15th of June, 1846, between the Governments of Her Britannic Majesty +and of the United States. + +Copies of the "case" presented on behalf of each Government, and of the +"statement in reply" of each, and a translation of the award, are +transmitted herewith. + +This award confirms the United States in their claim to the important +archipelago of islands lying between the continent and Vancouvers Island, +which for more than twenty-six years (ever since the ratification of the +treaty) Great Britain has contested, and leaves us, for the first time in +the history of the United States as a nation, without a question of +disputed boundary between our territory and the possessions of Great +Britain on this continent. + +It is my grateful duty to acknowledge the prompt, spontaneous action of Her +Majesty's Government in giving effect to the award. In anticipation of any +request from this Government, and before the reception in the United States +of the award signed by the Emperor, Her Majesty had given instructions for +the removal of her troops which had been stationed there and for the +cessation of all exercise or claim of jurisdiction, so as to leave the +United States in the exclusive possession of the lately disputed territory. +I am gratified to be able to announce that the orders for the removal of +the troops have been executed, and that the military joint occupation of +San Juan has ceased. The islands are now in the exclusive possession of the +United States. + +It now becomes necessary to complete the survey and determination of that +portion of the boundary line (through the Haro Channel) upon which the +commission which determined the remaining part of the line were unable to +agree. I recommend the appointment of a commission to act jointly with one +which may be named by Her Majesty for that purpose. + +Experience of the difficulties attending the determination of our admitted +line of boundary, after the occupation of the territory and its settlement +by those owing allegiance to the respective Governments, points to the +importance of establishing, by natural objects or other monuments, the +actual line between the territory acquired by purchase from Russia and the +adjoining possessions of Her Britannic Majesty. The region is now so +sparsely occupied that no conflicting interests of individuals or of +jurisdiction are likely to interfere to the delay or embarrassment of the +actual location of the line. If deferred until population shall enter and +occupy the territory, some trivial contest of neighbors may again array the +two Governments in antagonism. I therefore recommend the appointment of a +commission, to act jointly with one that may be appointed on the part of +Great Britain, to determine the line between our Territory of Alaska and +the conterminous possessions of Great Britain. + +In my last annual message I recommended the legislation necessary on the +part of the United States to bring into operation the articles of the +treaty of Washington of May 8, 1871, relating to the fisheries and to other +matters touching the relations of the United States toward the British +North American possessions, to become operative so soon as the proper +legislation should be had on the part of Great Britain and its +possessions. + +That legislation on the part of Great Britain and its possessions had not +then been had, and during the session of Congress a question was raised +which for the time raised a doubt whether any action by Congress in the +direction indicated would become important. This question has since been +disposed of, and I have received notice that the Imperial Parliament and +the legislatures of the provincial governments have passed laws to carry +the provisions of the treaty on the matters referred to into operation. I +therefore recommend your early adoption of the legislation in the same +direction necessary on the part of this Government. + +The joint commission for determining the boundary line between the United +States and the British possessions between the Lake of the Woods and the +Rocky Mountains has organized and entered upon its work. It is desirable +that the force be increased, in order that the completion of the survey and +determination of the line may be the sooner attained. To this end I +recommend that a sufficient appropriation be made. + +With France, our earliest ally; Russia, the constant and steady friend of +the United States; Germany, with whose Government and people we have so +many causes of friendship and so many common sympathies, and the other +powers of Europe, our relations are maintained on the most friendly terms. + +Since my last annual message the exchange has been made of the +ratifications of a treaty with the Austro-Hungarian Empire relating to +naturalization; also of a treaty with the German Empire respecting consuls +and trade-marks; also of a treaty with Sweden and Norway relating to +naturalization; all of which treaties have been duly proclaimed. + +Congress at its last session having made an appropriation to defray the +expense of commissioners on the part of the United States to the +International Statistical Congress at St. Petersburg, the persons appointed +in that character proceeded to their destination and attended the sessions +of the congress. Their report shall in due season be laid before you. This +congress meets at intervals of about three years, and has held its sessions +in several of the countries of Europe. I submit to your consideration the +propriety of extending an invitation to the congress to hold its next +meeting in the United States. The Centennial Celebration to be held in 1876 +would afford an appropriate occasion for such meeting. + +Preparations are making for the international exposition to be held during +the next year in Vienna, on a scale of very great magnitude. The tendency +of these expositions is in the direction of advanced civilization, and of +the elevation of industry and of labor, and of the increase of human +happiness, as well as of greater intercourse and good will between nations. +As this exposition is to be the first which will have been held in eastern +Europe, it is believed that American inventors and manufacturers will be +ready to avail themselves of the opportunity for the presentation of their +productions if encouraged by proper aid and protection. + +At the last session of Congress authority was given for the appointment of +one or more agents to represent this Government at the exposition. The +authority thus given has been exercised, but, in the absence of any +appropriation, there is danger that the important benefits which the +occasion offers will in a large degree be lost to citizens of the United +States. I commend the subject strongly to your consideration, and recommend +that an adequate appropriation be made for the purpose. + +To further aid American exhibitors at the Vienna Exposition, I would +recommend, in addition to an appropriation of money, that the Secretary of +the Navy be authorized to fit up two naval vessels to transport between our +Atlantic cities and Trieste, or the most convenient port to Vienna, and +back, their articles for exhibition. + +Since your last session the President of the Mexican Republic, +distinguished by his high character and by his services to his country, has +died. His temporary successor has now been elected with great unanimity by +the people a proof of confidence on their part in his patriotism and wisdom +which it is believed will be confirmed by the results of his +administration. It is particularly desirable that nothing should be left +undone by the Government of either Republic to strengthen their relations +as neighbors and friends. + +It is much to be regretted that many lawless acts continue to disturb the +quiet of the settlements on the border between our territory and that of +Mexico, and that complaints of wrongs to American citizens in various parts +of the country are made. The revolutionary condition in which the +neighboring Republic has so long been involved has in some degree +contributed to this disturbance. It is to be hoped that with a more settled +rule of order through the Republic, which may be expected from the present +Government, the acts of which just complaint is made will cease. + +The proceedings of the commission under the convention with Mexico of the +4th of July, 1868, on the subject of claims, have, unfortunately, been +checked by an obstacle, for the removal of which measures have been taken +by the two Governments which it is believed will prove successful. + +The commissioners appointed, pursuant to the joint resolution of Congress +of the 7th of May last, to inquire into depredations on the Texan frontier +have diligently made investigations in that quarter. Their report upon the +subject will be communicated to you. Their researches were necessarily +incomplete, partly on account of the limited appropriation made by +Congress. Mexico, on the part of that Government, has appointed a similar +commission to investigate these outrages. It is not announced officially, +but the press of that country states that the fullest investigation is +desired, and that the cooperation of all parties concerned is invited to +secure that end. I therefore recommend that a special appropriation be made +at the earliest day practicable, to enable the commissioners on the part of +the United States to return to their labors without delay. + +It is with regret that I have again to announce a continuance of the +disturbed condition of the island of Cuba. No advance toward the +pacification of the discontented part of the population has been made. +While the insurrection has gained no advantages and exhibits no more of the +elements of power or of the prospects of ultimate success than were +exhibited a year ago, Spain, on the other hand, has not succeeded in its +repression, and the parties stand apparently in the same relative attitude +which they have occupied for a long time past. + +This contest has lasted now for more than four years. Were its scene at a +distance from our neighborhood, we might be indifferent to its result, +although humanity could not be unmoved by many of its incidents wherever +they might occur. It is, however, at our door. + +I can not doubt that the continued maintenance of slavery in Cuba is among +the strongest inducements to the continuance of this strife. A terrible +wrong is the natural cause of a terrible evil. The abolition of slavery and +the introduction of other reforms in the administration of government in +Cuba could not fail to advance the restoration of peace and order. It is +greatly to be hoped that the present liberal Government of Spain will +voluntarily adopt this view. + +The law of emancipation, which was passed more than two years since, has +remained unexecuted in the absence of regulations for its enforcement. It +was but a feeble step toward emancipation, but it was the recognition of +right, and was hailed as such, and exhibited Spain in harmony with +sentiments of humanity and of justice and in sympathy with the other powers +of the Christian and civilized world. + +Within the past few weeks the regulations for carrying out the law of +emancipation have been announced, giving evidence of the sincerity of +intention of the present Government to carry into effect the law of 1870. I +have not failed to urge the consideration of the wisdom, the policy, and +the justice of a more effective system for the abolition of the great evil +which oppresses a race and continues a bloody and destructive contest close +to our border, as well as the expediency and the justice of conceding +reforms of which the propriety is not questioned. + +Deeply impressed with the conviction that the continuance of slavery is one +of the most active causes of the continuance of the unhappy condition in +Cuba, I regret to believe that citizens of the United States, or those +claiming to be such, are large holders in Cuba of what is there claimed as +property, but which is forbidden and denounced by the laws of the United +States. They are thus, in defiance of the spirit of our own laws, +contributing to the continuance of this distressing and sickening contest. +In my last annual message I referred to this subject, and I again recommend +such legislation as may be proper to denounce, and, if not prevent, at +least to discourage American citizens from holding or dealing in slaves. + +It is gratifying to announce that the ratifications of the convention +concluded under the auspices of this Government between Spain on the one +part and the allied Republics of the Pacific on the other, providing for an +armistice, have been exchanged. A copy of the instrument is herewith +submitted. It is hoped that this may be followed by a permanent peace +between the same parties. + +The differences which at one time threatened the maintenance of peace +between Brazil and the Argentine Republic it is hoped are in the way of +satisfactory adjustment. + +With these States, as with the Republics of Central and of South America, +we continue to maintain the most friendly relations. + +It is with regret, however, I announce that the Government of Venezuela has +made no further payments on account of the awards under the convention of +the 25th of April, 1866. That Republic is understood to be now almost, if +not quite, tranquilized. It is hoped, therefore, that it will lose no time +in providing for the unpaid balance of its debt to the United States, +which, having originated in injuries to our citizens by Venezuelan +authorities, and having been acknowledged, pursuant to a treaty, in the +most solemn form known among nations, would seem to deserve a preference +over debts of a different origin and contracted in a different manner. This +subject is again recommended to the attention of Congress for such action +as may be deemed proper. + +Our treaty relations with Japan remain unchanged. An imposing embassy from +that interesting and progressive nation visited this country during the +year that is passing, but, being unprovided with powers for the signing of +a convention in this country, no conclusion in that direction was reached. +It is hoped, however, that the interchange of opinions which took place +during their stay in this country has led to a mutual appreciation of the +interests which may be promoted when the revision of the existing treaty +shall be undertaken. + +In this connection I renew my recommendation of one year ago, that-- + +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, an appropriation be made to support at least four +American youths in each of those countries, to serve as a part of the +official family of our ministers there. Our representatives would not even +then be placed upon an equality with the representatives of Great Britain +and of some other powers. As now situated, our representatives in Japan and +China have to depend for interpreters and translators upon natives of those +countries, who know our language imperfectly, or procure for the occasion +the services of employees in foreign business houses or the interpreters to +other foreign ministers. + +I renew the recommendation made on a previous occasion, of the transfer to +the Department of the Interior, to which they seem more appropriately to +belong, of all the powers and duties in relation to the Territories with +which the Department of State is now charged by law or by custom. + +Congress from the beginning of the Government has wisely made provision for +the relief of distressed seamen in foreign countries. No similar provision, +however, has hitherto been made for the relief of citizens in distress +abroad other than seamen. It is understood to be customary with other +governments to authorize consuls to extend such relief to their citizens or +subjects in certain cases. A similar authority and an appropriation to +carry it into effect are recommended in the case of citizens of the United +States destitute or sick under such circumstances. It is well known that +such citizens resort to foreign countries in great numbers. Though most of +them are able to bear the expenses incident to locomotion, there are some +who, through accident or otherwise, become penniless, and have no friends +at home able to succor them. Persons in this situation must either perish, +cast themselves upon the charity of foreigners, or be relieved at the +private charge of our own officers, who usually, even with the most +benevolent dispositions, have nothing to spare for such purposes. + +Should the authority and appropriation asked for be granted, care will be +taken so to carry the beneficence of Congress into effect that it shall not +be unnecessarily or unworthily bestowed. TREASURY. + +The moneys received and covered into the Treasury during the fiscal year +ended June 30, 1872, were: + +From customs - $216,370,286.77 + +From sales of public lands - 2,575,714.19 + +From internal revenue - 130,642,177.72 + +From tax on national-bank circulation, etc - 6,523,396.39 + +From Pacific railway companies - 749,861.87 + +From customs fines, etc - 1,136,442.34 + +From fees--consular, patent, lands, etc - 2,284,095.92 + +From miscellaneous - 412,254.71 - + +*** + +State of the Union Address +Ulysses S. Grant +December 1, 1873 + +To the Senate and House of Representatives: + +The year that has passed since the submission of my last message to +Congress has, especially during the latter part of it, been an eventful one +to the country. In the midst of great national prosperity a financial +crisis has occurred that has brought low fortunes of gigantic proportions; +political partisanship has almost ceased to exist, especially in the +agricultural regions; and, finally, the capture upon the high seas of a +vessel bearing our flag has for a time threatened the most serious +consequences, and has agitated the public mind from one end of the country +to the other. But this, happily, now is in the course of satisfactory +adjustment, honorable to both nations concerned. + +The relations of the United States, however, with most of the other powers +continue to be friendly and cordial. With France, Germany, Russia, Italy, +and the minor European powers; with Brazil and most of the South American +Republics, and with Japan, nothing has occurred during the year to demand +special notice. The correspondence between the Department of State and +various diplomatic representatives in or from those countries is +transmitted herewith. + +In executing the will of Congress, as expressed in its joint resolution of +the 14th of February last, and in accordance with the provisions of the +resolution, a number of "practical artisans," of "scientific men," and of +"honorary commissioners" were authorized to attend the exposition at Vienna +as commissioners on the part of the United States. It is believed that we +have obtained the object which Congress had in view when it passed the +joint resolution--"in order to enable the people of the United States to +participate in the advantages of the International Exhibition of the +Products of Agriculture, Manufactures, and the Fine Arts to be held at +Vienna." I take pleasure in adding that the American exhibitors have +received a gratifying number of diplomas and of medals. + +During the exposition a conference was held at Vienna for the purpose of +consultation on the systems prevailing in different countries for the +protection of inventions. I authorized a representative from the Patent +Office to be present at Vienna at the time when this conference was to take +place, in order to aid as far as he might in securing any possible +additional protection to American inventors in Europe. The report of this +agent will be laid before Congress. + +It is my pleasant duty to announce to Congress that the Emperor of China, +on attaining his majority, received the diplomatic representatives of the +Western powers in person. An account of these ceremonies and of the +interesting discussions which preceded them will be found in the documents +transmitted herewith. The accompanying papers show that some advance, +although slight, has been made during the past year toward the suppression +of the infamous Chinese cooly trade. I recommend Congress to inquire +whether additional legislation be not needed on this subject. + +The money awarded to the United States by the tribunal of arbitration at +Geneva was paid by Her Majesty's Government a few days in advance of the +time when it would have become payable according to the terms of the +treaty. In compliance with the provisions of the act of March 3, 1873, it +was at once paid into the Treasury, and used to redeem, so far as it might, +the public debt of the United States; and the amount so redeemed was +invested in a 5 per cent registered bond of the United States for +$15,500,000, which is now held by the Secretary of State, subject to the +future disposition of Congress. + +I renew my recommendation, made at the opening of the last session of +Congress, that a commission be created for the purpose of auditing and +determining the amounts of the several "direct losses growing out of the +destruction of vessels and their cargoes" by the Alabama, the Florida, or +the Shenandoah after leaving Melbourne, for which the sufferers have +received no equivalent or compensation, and of ascertaining the names of +the persons entitled to receive compensation for the same, making the +computations upon the basis indicated by the tribunal of arbitration at +Geneva; and that payment of such losses be authorized to an extent not to +exceed the awards of the tribunal at Geneva. + +By an act approved on the 14th day of February last Congress made provision +for completing, jointly with an officer or commissioner to be named by Her +Britannic Majesty, the determination of so much of the boundary line +between the territory of the United States and the possessions of Great +Britain as was left uncompleted by the commissioners appointed under the +act of Congress of August 11, 1856. Under the provisions of this act the +northwest water boundary of the United States has been determined and +marked in accordance with the award of the Emperor of Germany. A protocol +and a copy of the map upon which the line was thus marked are contained in +the papers submitted herewith. + +I also transmit a copy of the report of the commissioner for marking the +northern boundary between the United States and the British possessions +west of the Lake of the Woods, of the operations of the commission during +the past season. Surveys have been made to a point 497 miles west of the +Lake of the Woods, leaving about 350 miles to be surveyed, the field work +of which can be completed during the next season. + +The mixed commission organized under the provisions of the treaty of +Washington for settling and determining the claims of citizens of either +power against the other arising out of acts committed against their persons +or property during the period between April 13, 1861, and April 9, 1865, +made its final award on the 25th day of September last. It was awarded that +the Government of the United States should pay to the Government of Her +Britannic Majesty, within twelve months from the date of the award, the sum +of $1,929,819 in gold. The commission disallowed or dismissed all other +claims of British subjects against the United States. The amount of the +claims presented by the British Government, but disallowed or dismissed, is +understood to be about $93,000,000. It also disallowed all the claims of +citizens of the United States against Great Britain which were referred to +it. + +I recommend the early passage of an act appropriating the amount necessary +to pay this award against the United States. + +I have caused to be communicated to the Government of the King of Italy the +thanks of this Government for the eminent services rendered by Count Corti +as the third commissioner on this commission. With dignity, learning, and +impartiality he discharged duties requiring great labor and constant +patience, to the satisfaction, I believe, of both Governments. I recommend +legislation to create a special court, to consist of three judges, who +shall be empowered to hear and determine all claims of aliens upon the +United States arising out of acts committed against their persons or +property during the insurrection. The recent reference under the treaty of +Washington was confined to claims of British subjects arising during the +period named in the treaty; but it is understood that there are other +British claims of a similar nature, arising after the 9th of April, 1865, +and it is known that other claims of a like nature are advanced by citizens +or subjects of other powers. It is desirable to have these claims also +examined and disposed of. + +Official information being received from the Dutch Government of a state of +war between the King of the Netherlands and the Sultan of Acheen, the +officers of the United States who were near the seat of the war were +instructed to observe an impartial neutrality. It is believed that they +have done so. + +The joint commission under the convention with Mexico of 1868, having again +been legally prolonged, has resumed its business, which, it is hoped, may +be brought to an early conclusion. The distinguished representative of Her +Britannic Majesty at Washington has kindly consented, with the approval of +his Government, to assume the arduous and responsible duties of umpire in +this commission, and to lend the weight of his character and name to such +decisions as may not receive the acquiescence of both the arbitrators +appointed by the respective Governments. + +The commissioners appointed pursuant to the authority of Congress to +examine into the nature and extent of the forays by trespassers from that +country upon the herds of Texas have made a report, which will be submitted +for your consideration. + +The Venezuelan Government has been apprised of the sense of Congress in +regard to the awards of the joint commission under the convention of 25th +April, 1866, as expressed in the act of the 25th of February last. + +It is apprehended that that Government does not realize the character of +its obligations under that convention. As there is reason to believe, +however, that its hesitancy in recognizing them springs, in part at least, +from real difficulty in discharging them in connection with its obligations +to other governments, the expediency of further forbearance on our part is +believed to be worthy of your consideration. + +The Ottoman Government and that of Egypt have latterly shown a disposition +to relieve foreign consuls of the judicial powers which heretofore they +have exercised in the Turkish dominions, by organizing other tribunals. As +Congress, however, has by law provided for the discharge of judicial +functions by consuls of the United States in that quarter under the treaty +of 1830, I have not felt at liberty formally to accept the proposed change +without the assent of Congress, whose decision upon the subject at as early +a period as may be convenient is earnestly requested. + +I transmit herewith, for the consideration and determination of Congress, +an application of the Republic of Santo Domingo to this Government to +exercise a protectorate over that Republic. + +Since the adjournment of Congress the following treaties with foreign +powers have been proclaimed: A naturalization convention with Denmark; a +convention with Mexico for renewing the Claims Commission; a convention of +friendship, commerce, and extradition with the Orange Free State, and a +naturalization convention with Ecuador. + +I renew the recommendation made in my message of December, 1870, that +Congress authorize the Postmaster-General to issue all commissions to +officials appointed through his Department. + +I invite the earnest attention of Congress to the existing laws of the +United States respecting expatriation and the election of nationality by +individuals. Many citizens of the United States reside permanently abroad +with their families. Under the provisions of the act approved February 10, +1855, the children of such persons are to be deemed and taken to be +citizens of the United States, but the rights of citizenship are not to +descend to persons whose fathers never resided in the United States. + +It thus happens that persons who have never resided within the United +States have been enabled to put forward a pretension to the protection of +the United States against the claim to military service of the government +under whose protection they were born and have been reared. In some cases +even naturalized citizens of the United States have returned to the land of +their birth, with intent to remain there, and their children, the issue of +a marriage contracted there after their return, and who have never been in +the United States, have laid claim to our protection when the lapse of many +years had imposed upon them the duty of military service to the only +government which had ever known them personally. + +Until the year 1868 it was left, embarrassed by conflicting opinions of +courts and of jurists, to determine how far the doctrine of perpetual +allegiance derived from our former colonial relations with Great Britain +was applicable to American citizens. Congress then wisely swept these +doubts away by enacting that--Any declaration, instruction, opinion, +order, or decision of any officer of this Government which denies, +restricts, impairs, or questions the right of expatriation is inconsistent +with the fundamental principles of this Government. But Congress did not +indicate in that statute, nor has it since done so, what acts are to be +deemed to work expatriation. For my own guidance in determining such +questions I required (under the provisions of the Constitution) the opinion +in writing of the principal officer in each of the Executive Departments +upon certain questions relating to this subject. The result satisfies me +that further legislation has become necessary. I therefore commend the +subject to the careful consideration of Congress, and I transmit herewith +copies of the several opinions of the principal officers of the Executive +Departments, together with other correspondence and pertinent information +on the same subject. + +The United States, who led the way in the overthrow of the feudal doctrine +of perpetual allegiance, are among the last to indicate how their own +citizens may elect another nationality. The papers submitted herewith +indicate what is necessary to place us on a par with other leading nations +in liberality of legislation on this international question. We have +already in our treaties assented to the principles which would need to be +embodied in laws intended to accomplish such results. We have agreed that +citizens of the United States may cease to be citizens and may voluntarily +render allegiance to other powers. We have agreed that residence in a +foreign land, without intent to return, shall of itself work expatriation. +We have agreed in some instances upon the length of time necessary for such +continued residence to work a presumption of such intent. I invite Congress +now to mark out and define when and how expatriation can be accomplished; +to regulate by law the condition of American women marrying foreigners; to +fix the status of children born in a foreign country of American parents +residing more or less permanently abroad, and to make rules for determining +such other kindred points as may seem best to Congress. + +In compliance with the request of Congress, I transmitted to the American +minister at Madrid, with instructions to present it to the Spanish +Government, the joint resolution approved on the 3d of March last, +tendering to the people of Spain, in the name and on the behalf of the +American people, the congratulations of Congress upon the efforts to +consolidate in Spain the principles of universal liberty in a republican +form of government. + +The existence of this new Republic was inaugurated by striking the fetters +from the slaves in Porto Rico. This beneficent measure was followed by the +release of several thousand persons illegally held as slaves in Cuba. Next, +the Captain-General of that colony was deprived of the power to set aside +the orders of his superiors at Madrid, which had pertained to the office +since 1825. The sequestered estates of American citizens, which had been +the cause of long and fruitless correspondence, were ordered to be restored +to their owners. All these liberal steps were taken in the face of a +violent opposition directed by the reactionary slave-holders of Havana, who +are vainly striving to stay the march of ideas which has terminated slavery +in Christendom, Cuba only excepted. Unhappily, however, this baneful +influence has thus far succeeded in defeating the efforts of all +liberal-minded men in Spain to abolish slavery in Cuba, and in preventing +the promised reform in that island. The struggle for political supremacy +continues there. + +The proslavery and aristocratic party in Cuba is gradually arraigning +itself in more and more open hostility and defiance of the home government, +while it still maintains a political connection with the Republic in the +peninsula; and although usurping and defying the authority of the home +government whenever such usurpation or defiance tends in the direction of +oppression or of the maintenance of abuses, it is still a power in Madrid, +and is recognized by the Government. Thus an element more dangerous to +continued colonial relations between Cuba and Spain than that which +inspired the insurrection at Yara--an element opposed to granting any +relief from misrule and abuse, with no aspirations after freedom, +commanding no sympathies in generous breasts, aiming to rivet still +stronger the shackles of slavery and oppression--has seized many of the +emblems of power in Cuba, and, under professions of loyalty to the mother +country, is exhausting the resources of the island, and is doing acts which +are at variance with those principles of justice, of liberality, and of +right which give nobility of character to a republic. In the interests of +humanity, of civilization, and of progress, it is to be hoped that this +evil influence may be soon averted. + +The steamer Virginius was on the 26th day of September, 1870, duly +registered at the port of New York as a part of the commercial marine of +the United States. On the 4th of October, 1870, having received the +certificate of her register in the usual legal form, she sailed from the +port of New York and has not since been within the territorial jurisdiction +of the United States. On the 31st day of October last, while sailing under +the flag of the United States on the high seas, she was forcibly seized by +the Spanish gunboat Tornado, and was carried into the port of Santiago de +Cuba, where fifty-three of her passengers and crew were inhumanly, and, so +far at least as relates to those who were citizens of the United States, +without due process of law, put to death. + +It is a well-established principle, asserted by the United States from the +beginning of their national independence, recognized by Great Britain and +other maritime powers, and stated by the Senate in a resolution passed +unanimously on the 16th of June, 1858, that--American vessels on the high +seas in time of peace, bearing the American flag, remain under the +jurisdiction of the country to which they belong, and therefore any +visitation, molestation, or detention of such vessel by force, or by the +exhibition of force, on the part of a foreign power is in derogation of the +sovereignty of the United States. In accordance with this principle, the +restoration of the Virginius and the surrender of the survivors of her +passengers and crew, and a due reparation to the flag, and the punishment +of the authorities who had been guilty of the illegal acts of violence, +were demanded. The Spanish Government has recognized the justice of the +demand, and has arranged for the immediate delivery of the vessel, and for +the surrender of the survivors of the passengers and crew, and for a salute +to the flag, and for proceedings looking to the punishment of those who may +be proved to have been guilty of illegal acts of violence toward citizens +of the United States, and also toward indemnifying those who may be shown +to be entitled to indemnity. A copy of a protocol of a conference between +the Secretary of State and the Spanish minister, in which the terms of this +arrangement were agreed to, is transmitted herewith. + +The correspondence on this subject with the legation of the United States +in Madrid was conducted in cipher and by cable, and needs the verification +of the actual text of the correspondence. It has seemed to me to be due to +the importance of the case not to submit this correspondence until the +accurate text can be received by mail. It is expected shortly, and will be +submitted when received. + +In taking leave of this subject for the present I wish to renew the +expression of my conviction that the existence of African slavery in Cuba +is a principal cause of the lamentable condition of the island. I do not +doubt that Congress shares with me the hope that it will soon be made to +disappear, and that peace and prosperity may follow its abolition. + +The embargoing of American estates in Cuba, cruelty to American citizens +detected in no act of hostility to the Spanish Government, the murdering of +prisoners taken with arms in their hands, and, finally, the capture upon +the high seas of a vessel sailing under the United States flag and bearing +a United States registry have culminated in an outburst of indignation that +has seemed for a time to threaten war. Pending negotiations between the +United States and the Government of Spain on the subject of this capture, I +have authorized the Secretary of the Navy to put our Navy on a war footing, +to the extent, at least, of the entire annual appropriation for that branch +of the service, trusting to Congress and the public opinion of the American +people to justify my action. + +Assuming from the action of the last Congress in appointing a Committee on +Privileges and Elections to prepare and report to this Congress a +constitutional amendment to provide a better method of electing the +President and Vice-President of the United States, and also from the +necessity of such an amendment, that there will be submitted to the State +legislatures for ratification such an improvement in our Constitution, I +suggest two others for your consideration: + +First. To authorize the Executive to approve of so much of any measure +passing the two Houses of Congress as his judgment may dictate, without +approving the whole, the disapproved portion or portions to be subjected to +the same rules as now, to wit, to be referred back to the House in which +the measure or measures originated, and, if passed by a two-thirds vote of +the two Houses, then to become a law without the approval of the President. +I would add to this a provision that there should be no legislation by +Congress during the last twenty-four hours of its sitting, except upon +vetoes, in order to give the Executive an opportunity to examine and +approve or disapprove bills understandingly. + +Second. To provide by amendment that when an extra session of Congress is +convened by Executive proclamation legislation during the continuance of +such extra session shall be confined to such subjects as the Executive may +bring before it from time to time in writing. + +The advantages to be gained by these two amendments are too obvious for me +to comment upon them. One session in each year is provided for by the +Constitution, in which there are no restrictions as to the subjects of +legislation by Congress. If more are required, it is always in the power of +Congress, during their term of office, to provide for sessions at any time. +The first of these amendments would protect the public against the many +abuses and waste of public moneys which creep into appropriation bills and +other important measures passing during the expiring hours of Congress, to +which otherwise due consideration can not be given. + +TREASURY DEPARTMENT. + +The receipts of the Government from all sources for the last fiscal year +were $333,738,204, and expenditures on all accounts $290,345,245, thus +showing an excess of receipts over expenditures of $43,392,959. But it is +not probable that this favorable exhibit will be shown for the present +fiscal year. Indeed, it is very doubtful whether, except with great economy +on the part of Congress in making appropriations and the same economy in +administering the various Departments of Government, the revenues will not +fall short of meeting actual expenses, including interest on the public +debt. + +I commend to Congress such economy, and point out two sources where It +seems to me it might commence, to wit, in the appropriations for public +buildings in the many cities where work has not yet been commenced; in the +appropriations for river and harbor improvement in those localities where +the improvements are of but little benefit to general commerce, and for +fortifications. + +There is a still more fruitful source of expenditure, which I will point +out later in this message. I refer to the easy method of manufacturing +claims for losses incurred in suppressing the late rebellion. + +I would not be understood here as opposing the erection of good, +substantial, and even ornamental buildings by the Government wherever such +buildings are needed. In fact, I approve of the Government owning its own +buildings in all sections of the country, and hope the day is not far +distant when it will not only possess them, but will erect in the capital +suitable residences for all persons who now receive commutation for +quarters or rent at Government expense, and for the Cabinet, thus setting +an example to the States which may induce them to erect buildings for their +Senators. But I would have this work conducted at a time when the revenues +of the country would abundantly justify it. + +The revenues have materially fallen off for the first five months of the +present fiscal year from what they were expected to produce, owing to the +general panic now prevailing, which commenced about the middle of September +last. The full effect of this disaster, if it should not prove a "blessing +in disguise," is yet to be demonstrated. In either event it is your duty to +heed the lesson and to provide by wise and well-considered legislation, as +far as it lies in your power, against its recurrence, and to take advantage +of all benefits that may have accrued. + +My own judgment is that, however much individuals may have suffered, one +long step has been taken toward specie payments; that we can never have +permanent prosperity until a specie basis is reached: and that a specie +basis can not be reached and maintained until our exports, exclusive of +gold, pay for our imports, interest due abroad, and other specie +obligations, or so nearly so as to leave an appreciable accumulation of the +precious metals in the country from the products of our mines. + +The development of the mines of precious metals during the past year and +the prospective development of them for years to come are gratifying in +their results. Could but one-half of the gold extracted from the mines be +retained at home, our advance toward specie payments would be rapid. + +To increase our exports sufficient currency is required to keep all the +industries of the country employed. Without this national as well as +individual bankruptcy must ensue. Undue inflation, on the other hand, while +it might give temporary relief, would only lead to inflation of prices, the +impossibility of competing in our own markets for the products of home +skill and labor, and repeated renewals of present experiences. Elasticity +to our circulating medium, therefore, and just enough of it to transact the +legitimate business of the country and to keep all industries employed, is +what is most to be desired. The exact medium is specie, the recognized +medium of exchange the world over. That obtained, we shall have a currency +of an exact degree of elasticity. If there be too much of it for the +legitimate purposes of trade and commerce, it will flow out of the country. +If too little, the reverse will result. To hold what we have and to +appreciate our currency to that standard is the problem deserving of the +most serious consideration of Congress. + +The experience of the present panic has proven that the currency of the +country, based, as it is, upon the credit of the country, is the best that +has ever been devised. Usually in times of such trials currency has become +worthless, or so much depreciated in value as to inflate the values of all +the necessaries of life as compared with the currency. Everyone holding it +has been anxious to dispose of it on any terms. Now we witness the reverse. +Holders of currency hoard it as they did gold in former experiences of a +like nature. + +It is patent to the most casual observer that much more currency, or money, +is required to transact the legitimate trade of the country during the fall +and winter months, when the vast crops are being removed, than during the +balance of the year. With our present system the amount in the country +remains the same throughout the entire year, resulting in an accumulation +of all the surplus capital of the country in a few centers when not +employed in the moving of crops, tempted there by the offer of interest on +call loans. Interest being paid, this surplus capital must earn this +interest paid with a profit. Being subject to "call," it can not be loaned, +only in part at best, to the merchant or manufacturer for a fixed term. +Hence, no matter how much currency there might be in the country, it would +be absorbed, prices keeping pace with the volume, and panics, stringency, +and disasters would ever be recurring with the autumn. Elasticity in our +monetary system, therefore, is the object to be attained first, and next to +that, as far as possible, a prevention of the use of other people's money +in stock and other species of speculation. To prevent the latter it seems +to me that one great step would be taken by prohibiting the national banks +from paying interest on deposits, by requiring them to hold their reserves +in their own vaults, and by forcing them into resumption, though it would +only be in legal-tender notes. For this purpose I would suggest the +establishment of clearing houses for your consideration. + +To secure the former many plans have been suggested, most, if not all, of +which look to me more like inflation on the one hand, or compelling the +Government, on the other, to pay interest, without corresponding benefits, +upon the surplus funds of the country during the seasons when otherwise +unemployed. + +I submit for your consideration whether this difficulty might not be +overcome by authorizing the Secretary of the Treasury to issue at any time +to national banks of issue any amount of their own notes below a fixed +percentage of their issue (say 40 per cent), upon the banks' depositing +with the Treasurer of the United States an amount of Government bonds equal +to the amount of notes demanded, the banks to forfeit to the Government, +say, 4 per cent of the interest accruing on the bonds so pledged during the +time they remain with the Treasurer as security for the increased +circulation, the bonds so pledged to be redeemable by the banks at their +pleasure, either in whole or in part, by returning their own bills for +cancellation to an amount equal to the face of the bonds withdrawn. I would +further suggest for your consideration the propriety of authorizing +national banks to diminish their standing issue at pleasure, by returning +for cancellation their own bills and withdrawing so many United States +bonds as are pledged for the bills returned. + +In view of the great actual contraction that has taken place in the +currency and the comparative contraction continuously going on, due to the +increase of population, increase of manufactories and all the industries, I +do not believe there is too much of it now for the dullest period of the +year. Indeed, if clearing houses should be established, thus forcing +redemption, it is a question for your consideration whether banking should +not be made free, retaining all the safeguards now required to secure bill +holders. In any modification of the present laws regulating national banks, +as a further step toward preparing for resumption of specie payments, I +invite your attention to a consideration of the propriety of exacting from +them the retention as a part of their reserve either the whole or a part of +the gold interest accruing upon the bonds pledged as security for their +issue. I have not reflected enough on the bearing this might have in +producing a scarcity of coin with which to pay duties on imports to give it +my positive recommendation. But your attention is invited to the subject. + +During the last four years the currency has been contracted, directly, by +the withdrawal of 3 per cent certificates, compound-interest notes, and +"seven-thirty" bonds outstanding on the 4th of March, 1869, all of which +took the place of legal-tenders in the bank reserves to the extent of +$63,000,000. + +During the same period there has been a much larger comparative contraction +of the currency. The population of the country has largely increased. More +than 25,000 miles of railroad have been built, requiring the active use of +capital to operate them. Millions of acres of land have been opened to +cultivation, requiring capital to move the products. Manufactories have +multiplied beyond all precedent in the same period of time, requiring +capital weekly for the payment of wages and for the purchase of material; +and probably the largest of all comparative contraction arises from the +organizing of free labor in the South. Now every laborer there receives his +wages, and, for want of savings banks, the greater part of such wages is +carried in the pocket or hoarded until required for use. + +These suggestions are thrown out for your consideration, without any +recommendation that they shall be adopted literally, but hoping that the +best method may be arrived at to secure such an elasticity of the currency +as will keep employed all the industries of the country and prevent such an +inflation as will put off indefinitely the resumption of specie payments, +an object so devoutly to be wished for by all, and by none more earnestly +than the class of people most directly interested--those who "earn their +bread by the sweat of their brow." The decisions of Congress on this +subject will have the hearty support of the Executive. + +In previous messages I have called attention to the decline in American +shipbuilding and recommended such legislation as would secure to us our +proportion of the carrying trade. Stimulated by high rates and abundance of +freight, the progress for the last year in shipbuilding has been very +satisfactory. There has been an increase of about 3 per cent in the amount +transported in American vessels over the amount of last year. With the +reduced cost of material which has taken place, it may reasonably be hoped +that this progress will be maintained, and even increased. However, as we +pay about $80,000,000 per annum to foreign vessels for the transportation +to a market of our surplus products, thus increasing the balance of trade +against us to this amount, the subject is one worthy of your serious +consideration. + +"Cheap transportation" is a subject that has attracted the attention of +both producers and consumers for the past few years, and has contributed +to, if it has not been the direct cause of, the recent panic and +stringency. + +As Congress, at its last session, appointed a special committee to +investigate this whole subject during the vacation and report at this +session, I have nothing to recommend until their report is read. + +There is one work, however, of a national character, in which the greater +portion of the East and the West, the North and the South, are equally +interested, to which I will invite your attention. + +The State of New York has a canal connecting Lake Erie with tide water on +the Hudson River. The State of Illinois has a similar work connecting Lake +Michigan with navigable water on the Illinois River, thus making water +communication inland between the East and the West and South. These great +artificial water courses are the property of the States through which they +pass, and pay toll to those States. Would it not be wise statesmanship to +pledge these States that if they will open these canals for the passage of +large vessels the General Government will look after and keep in navigable +condition the great public highways with which they connect, to wit, the +Overslaugh on the Hudson, the St. Clair Flats, and the Illinois and +Mississippi rivers? This would be a national work; one of great value to +the producers of the West and South in giving them cheap transportation for +their produce to the seaboard and a market, and to the consumers in the +East in giving them cheaper food, particularly of those articles of food +which do not find a foreign market, and the prices of which, therefore, are +not regulated by foreign demands. The advantages of such a work are too +obvious for argument. I submit the subject to you, therefore, without +further comment. + +In attempting to regain our lost commerce and carrying trade I have +heretofore called attention to the States south of us offering a field +where much might be accomplished. To further this object I suggest that a +small appropriation be made, accompanied with authority for the Secretary +of the Navy to fit out a naval vessel to ascend the Amazon River to the +mouth of the Madeira; thence to explore that river and its tributaries into +Bolivia, and to report to Congress at its next session, or as soon as +practicable, the accessibility of the country by water, its resources, and +the population so reached. Such an exploration would cost but little; it +can do no harm, and may result in establishing a trade of value to both +nations. + +In further connection with the Treasury Department I would recommend a +revision and codification of the tariff laws and the opening of more mints +for coining money, with authority to coin for such nations as may apply. + +WAR DEPARTMENT. + +The attention of Congress is invited to the recommendations contained in +the report of the Secretary of War herewith accompanying. + +The apparent great cost of supporting the Army is fully explained by this +report, and I hope will receive your attention. + +While inviting your general attention to all the recommendations made by +the Secretary of War, there are two which I would especially invite you to +consider: First, the importance of preparing for war in time of peace by +providing proper armament for our seacoast defenses. Proper armament is of +vastly more importance than fortifications. The latter can be supplied very +speedily for temporary purposes when needed; the former can not. The second +is the necessity of reopening promotion in the staff corps of the Army. +Particularly is this necessity felt in the Medical, Pay, and Ordnance +departments. + +At this time it is necessary to employ "contract surgeons" to supply the +necessary medical attendance required by the Army. + +With the present force of the Pay Department it is now difficult to make +the payments to troops provided for by law. Long delays in payments are +productive of desertions and other demoralization, and the law prohibits +the payment of troops by other than regular army paymasters. + +There are now sixteen vacancies in the Ordnance Department, thus leaving +that branch of the service without sufficient officers to conduct the +business of the different arsenals on a large scale if ever required. + +NAVY DEPARTMENT. + +During the past year our Navy has been depleted by the sale of some vessels +no longer fit for naval service and by the condemnation of others not yet +disposed of. This, however, has been more than compensated for by the +repair of six of the old wooden ships and by the building of eight new +sloops of war, authorized by the last Congress. The building of these +latter has occurred at a doubly fortunate time. They are about being +completed at a time when they may possibly be much needed, and the work +upon them has not only given direct employment to thousands of men, but has +no doubt been the means of keeping open establishments for other work at a +time of great financial distress. + +Since the commencement of the last month, however, the distressing +occurrences which have taken place in the waters of the Caribbean Sea, +almost on our very seaboard, while they illustrate most forcibly the +necessity always existing that a nation situated like ours should maintain +in a state of possible efficiency a navy adequate to its responsibilities, +has at the same time demanded that all the effective force we really have +shall be put in immediate readiness for warlike service. This has been and +is being done promptly and effectively, and I am assured that all the +available ships and every authorized man of the American Navy will be ready +for whatever action is required for the safety of our citizens or the +maintenance of our honor. This, of course, will require the expenditure in +a short time of some of the appropriations which were calculated to extend +through the fiscal year, but Congress will, I doubt not, understand and +appreciate the emergency, and will provide adequately not only for the +present preparation, but for the future maintenance of our naval force. The +Secretary of the Navy has during the past year been quietly putting some of +our most effective monitors in condition for service, and thus the exigency +finds us in a much better condition for work than we could possibly have +been without his action. + +POST-OFFICE DEPARTMENT. + +A complete exhibit is presented in the accompanying report of the +postmaster-General of the operations of the Post-Office Department during +the year. The ordinary postal revenues for the fiscal year ended June 30, +1873, amounted to $22,996,741.57, and the expenditures of all kinds to +$29,084,945.67. The increase of revenues over 1872 was $1,081,315.20, and +the increase of expenditures $2,426,753.36. + +Independent of the payments made from special appropriations for mail +steamship lines, the amount drawn from the General Treasury to meet +deficiencies was $5,265,475. The constant and rapid extension of our postal +service, particularly upon railways, and the improved facilities for the +collection, transmission, distribution, and delivery of the mails which are +constantly being provided account for the increased expenditures of this +popular branch of the public service. + +The total number of post-offices in operation on June 30, 1873, was 33,244, +a net increase of 1,381 over the number reported the preceding year. The +number of Presidential offices was 1,363, an increase of 163 during the +year. The total length of railroad mail routes at the close of the year was +63,457 miles, an increase of 5,546 miles over the year 1872. Fifty-nine +railway post-office lines were in operation June 30, 1873, extending over +14,866 miles of railroad routes and performing an aggregate service of +34,925 miles daily. + +The number of letters exchanged with foreign countries was 27,459,185, an +increase of 3,096,685 over the previous year, and the postage thereon +amounted to $2,021,310.86. The total weight of correspondence exchanged in +the mails with European countries exceeded 912 tons, an increase of 92 tons +over the previous year. The total cost of the United States ocean steamship +service, including $725,000 paid from special appropriations to subsidized +lines of mail steamers, was $1,047,271.35. + +New or additional postal conventions have been concluded with Sweden, +Norway, Belgium, Germany, Canada, Newfoundland, and Japan, reducing postage +rates on correspondence exchanged with those countries; and further efforts +have been made to conclude a satisfactory postal convention with France, +but without success. + +I invite the favorable consideration of Congress to the suggestions and +recommendations of the Postmaster-General for an extension of the +free-delivery system in all cities having a population of not less than +10,000; for the prepayment of postage on newspapers and other printed +matter of the second class; for a uniform postage and limit of weight on +miscellaneous matter; for adjusting the compensation of all postmasters not +appointed by the President, by the old method of commissions on the actual +receipts of the office, instead of the present mode of fixing the salary in +advance upon special returns; and especially do I urge favorable action by +Congress on the important recommendations of the Postmaster-General for the +establishment of United States postal savings depositories. + +Your attention is also again called to a consideration of the question of +postal telegraphs and the arguments adduced in support thereof, in the hope +that you may take such action in connection therewith as in your judgment +will most contribute to the best interests of the country. + +DEPARTMENT OF JUSTICE. + +Affairs in Utah require your early and special attention. The Supreme Court +of the United States, in the case of Clinton vs. Englebrecht, decided that +the United States marshal of that Territory could not lawfully summon +jurors for the district courts; and those courts hold that the Territorial +marshal can not lawfully perform that duty, because he is elected by the +legislative assembly, and not appointed as provided for in the act +organizing the Territory. All proceedings at law are practically abolished +by these decisions, and there have been but few or no jury trials in the +district courts of that Territory since the last session of Congress. +Property is left without protection by the courts, and crimes go +unpunished. To prevent anarchy there it is absolutely necessary that +Congress provide the courts with some mode of obtaining jurors, and I +recommend legislation to that end, and also that the probate courts of the +Territory, now assuming to issue writs of injunction and habeas corpus and +to try criminal cases and questions as to land titles, be denied all +jurisdiction not possessed ordinarily by courts of that description. + +I have become impressed with the belief that the act approved March 2, +1867, entitled "An act to establish a uniform system of bankruptcy +throughout the United States," is productive of more evil than good at this +time. Many considerations might be urged for its total repeal, but, if this +is not considered advisable, I think it will not be seriously questioned +that those portions of said act providing for what is called involuntary +bankruptcy operate to increase the financial embarrassments of the country. +Careful and prudent men very often become involved in debt in the +transaction of their business, and though they may possess ample property, +if it could be made available for that purpose, to meet all their +liabilities, yet, on account of the extraordinary scarcity of money, they +may be unable to meet all their pecuniary obligations as they become due, +in consequence of which they are liable to be prostrated in their business +by proceedings in bankruptcy at the instance of unrelenting creditors. +People are now so easily alarmed as to monetary matters that the mere +filing of a petition in bankruptcy by an unfriendly creditor will +necessarily embarrass, and oftentimes accomplish the financial ruin, of a +responsible business man. Those who otherwise might make lawful and just +arrangements to relieve themselves from difficulties produced by the +present stringency in money are prevented by their constant exposure to +attack and disappointment by proceedings against them in bankruptcy, and, +besides, the law is made use of in many cases by obdurate creditors to +frighten or force debtors into a compliance with their wishes and into acts +of injustice to other creditors and to themselves. I recommend that so much +of said act as provides for involuntary bankruptcy on account of the +suspension of payment be repealed. + +Your careful attention is invited to the subject of claims against the +Government and to the facilities afforded by existing laws for their +prosecution. Each of the Departments of State, Treasury, and War has +demands for many millions of dollars upon its files, and they are rapidly +accumulating. To these may be added those now pending before Congress, the +Court of Claims, and the Southern Claims Commission, making in the +aggregate an immense sum. Most of these grow out of the rebellion, and are +intended to indemnify persons on both sides for their losses during the +war; and not a few of them are fabricated and supported by false testimony. +Projects are on foot, it is believed, to induce Congress to provide for new +classes of claims, and to revive old ones through the repeal or +modification of the statute of limitations, by which they are now barred. I +presume these schemes, if proposed, will be received with little favor by +Congress, and I recommend that persons having claims against the United +States cognizable by any tribunal or Department thereof be required to +present them at an early day, and that legislation be directed as far as +practicable to the defeat of unfounded and unjust demands upon the +Government; and I would suggest, as a means of preventing fraud, that +witnesses be called upon to appear in person to testify before those +tribunals having said claims before them for adjudication. Probably the +largest saving to the National Treasury can be secured by timely +legislation on these subjects of any of the economic measures that will be +proposed. + +You will be advised of the operations of the Department of Justice by the +report of the Attorney-General, and I invite your attention to the +amendments of existing laws suggested by him, with the view of reducing the +expenses of that Department. + +DEPARTMENT OF THE INTERIOR. + +The policy inaugurated toward the Indians at the beginning of the last +Administration has been steadily pursued, and, I believe, with beneficial +results. It will be continued with only such modifications as time and +experience may demonstrate as necessary. + +With the encroachment of civilization upon the Indian reservations and +hunting grounds, disturbances have taken place between the Indians and +whites during the past year, and probably will continue to do so until each +race appreciates that the other has rights which must be respected. + +The policy has been to collect the Indians as rapidly as possible on +reservations, and as far as practicable within what is known as the Indian +Territory, and to teach them the arts of civilization and self-support. +Where found off their reservations, and endangering the peace and safety of +the whites, they have been punished, and will continue to be for like +offenses. + +The Indian Territory south of Kansas and west of Arkansas is sufficient in +area and agricultural resources to support all the Indians east of the +Rocky Mountains. In time, no doubt, all of them, except a few who may elect +to make their homes among white people, will be collected there. As a +preparatory step for this consummation, I am now satisfied that a +Territorial form of government should be given them, which will secure the +treaty rights of the original settlers and protect their homesteads from +alienation for a period of twenty years. + +The operations of the Patent Office are growing to such a magnitude and the +accumulation of material is becoming so great that the necessity of more +room is becoming more obvious day by day. I respectfully invite your +attention to the reports of the Secretary of the Interior and Commissioner +of Patents on this subject. + +The business of the General Land Office exhibits a material increase in all +its branches during the last fiscal year. During that time there were +disposed of out of the public lands 13,030,606 acres, being an amount +greater by 1,165,631 acres than was disposed of during the preceding year. +Of the amount disposed of, 1,626,266 acres were sold for cash, 214,940 +acres were located with military land warrants, 3,793,612 acres were taken +for homesteads, 653,446 acres were located with agricultural-college scrip, +6,083,536 acres were certified by railroads, 76,576 acres were granted to +wagon roads, 238,548 acres were approved to States as swamp lands, 138,681 +acres were certified for agricultural colleges, common schools, +universities, and seminaries, 190,775 acres were approved to States for +internal improvements, and 14,222 acres were located with Indian scrip. The +cash receipts during the same time were $3,408,515.50, being $190,415.50 in +excess of the receipts of the previous year. During the year 30,488,132 +acres of public land were surveyed, an increase over the amount surveyed +the previous year of 1,037,193 acres, and, added to the area previously +surveyed, aggregates 616,554,895 acres which have been surveyed, leaving +1,218,443,505 acres of the public land still unsurveyed. + +The increased and steadily increasing facilities for reaching our +unoccupied public domain and for the transportation of surplus products +enlarge the available field for desirable homestead locations, thus +stimulating settlement and extending year by year in a gradually increasing +ratio the area of occupation and cultivation. + +The expressed desire of the representatives of a large colony of citizens +of Russia to emigrate to this country, as is understood, with the consent +of their Government, if certain concessions can be made to enable them to +settle in a compact colony, is of great interest, as going to show the +light in which our institutions are regarded by an industrious, +intelligent, and wealthy people, desirous of enjoying civil and religious +liberty; and the acquisition of so large an immigration of citizens of a +superior class would without doubt be of substantial benefit to the +country. I invite attention to the suggestion of the Secretary of the +Interior in this behalf. + +There was paid during the last fiscal year for pensions, including the +expense of disbursement, $29,185,289.62, being an amount less by +$984,050.98 than was expended for the same purpose the preceding year. +Although this statement of expenditures would indicate a material reduction +in amount compared with the preceding year, it is believed that the changes +in the pension laws at the last session of Congress will absorb that amount +the current year. At the close of the last fiscal year there were on the +pension rolls 99,804 invalid military pensioners and 112,088 widows, +orphans, and dependent relatives of deceased soldiers, making a total of +that class of 211,892; 18,266 survivors of the War of 1812 and 5,058 widows +of soldiers of that war pensioned under the act of Congress of February 14, +1871, making a total of that class of 23,319; 1,480 invalid navy pensioners +and 1,770 widows, orphans, and dependent relatives of deceased officers, +sailors, and marines of the Navy, making a total of navy pensioners of +3,200, and a grand total of pensioners of 311 classes of 238,411, showing a +net increase during the last fiscal year of 6,182. During the last year the +names of 16,405 pensioners were added to the rolls, and 10,223 names were +dropped therefrom for various causes. + +The system adopted for the detection of frauds against the Government in +the matter of pensions has been productive of satisfactory results, but +legislation is needed to provide, if possible, against the perpetration of +such frauds in future. + +The evidently increasing interest in the cause of education is a most +encouraging feature in the general progress and prosperity of the country, +and the Bureau of Education is earnest in its efforts to give proper +direction to the new appliances and increased facilities which are being +offered to aid the educators of the country in their great work. + +The Ninth Census has been completed, the report thereof published and +distributed, and the working force of the Bureau disbanded. The Secretary +of the Interior renews his recommendation for a census to be taken in 1875, +to which subject the attention of Congress is invited. The original +suggestion in that behalf has met with the general approval of the country; +and even if it be not deemed advisable at present to provide for a regular +quinquennial census, a census taken in 1875, the report of which could be +completed and published before the one hundredth anniversary of our +national independence, would be especially interesting and valuable, as +showing the progress of the country during the first century of our +national existence. It is believed, however, that a regular census every +five years would be of substantial benefit to the country, inasmuch as our +growth hitherto has been so rapid that the results of the decennial census +are necessarily unreliable as a basis of estimates for the latter years of +a decennial period. + +DISTRICT OF COLUMBIA. + +Under the very efficient management of the governor and the board of public +works of this District the city of Washington is rapidly assuming the +appearance of a capital of which the nation may well be proud. From being a +most unsightly place three years ago, disagreeable to pass through in +summer in consequence of the dust arising from unpaved streets, and almost +impassable in the winter from the mud, it is now one of the most sightly +cities in the country, and can boast of being the best paved. + +The work has been done systematically, the plans, grades, location of +sewers, water and gas mains being determined upon before the work was +commenced, thus securing permanency when completed. I question whether so +much has ever been accomplished before in any American city for the same +expenditures. The Government having large reservations in the city, and the +nation at large having an interest in their capital, I recommend a liberal +policy toward the District of Columbia, and that the Government should bear +its just share of the expense of these improvements. Every citizen visiting +the capital feels a pride in its growing beauty, and that he too is part +owner in the investments made here. + +I would suggest to Congress the propriety of promoting the establishment in +this District of an institution of learning, or university of the highest +class, by the donation of lands. There is no place better suited for such +an institution than the national capital. There is no other place in which +every citizen is so directly interested. + +CIVIL-SERVICE REFORM. + +In three successive messages to Congress I have called attention to the +subject of "civil-service reform." + +Action has been taken so far as to authorize the appointment of a board to +devise rules governing methods of making appointments and promotions, but +there never has been any action making these rules, or any rules, binding, +or even entitled to observance, where persons desire the appointment of a +friend or the removal of an official who may be disagreeable to them. + +To have any rules effective they must have the acquiescence of Congress as +well as of the Executive. I commend, therefore, the subject to your +attention, and suggest that a special committee of Congress might confer +with the Civil-Service Board during the present session for the purpose of +devising such rules as can be maintained, and which will secure the +services of honest and capable officials, and which will also protect them +in a degree of independence while in office. + +Proper rules will protect Congress, as well as the Executive, from much +needless persecution, and will prove of great value to the public at +large. + +I would recommend for your favorable consideration the passage of an +enabling act for the admission of Colorado as a State in the Union. It +possesses all the elements of a prosperous State, agricultural and mineral, +and, I believe, has a population now to justify such admission. In +connection with this I would also recommend the encouragement of a canal +for purposes of irrigation from the eastern slope of the Rocky Mountains to +the Missouri River. As a rule I am opposed to further donations of public +lands for internal improvements owned and controlled by private +corporations, but in this instance I would make an exception. Between the +Missouri River and the Rocky Mountains there is an arid belt of public land +from 300 to 500 miles in width, perfectly valueless for the occupation of +man, for the want of sufficient rain to secure the growth of any product. +An irrigating canal would make productive a belt as wide as the supply of +water could be made to spread over across this entire country, and would +secure a cordon of settlements connecting the present population of the +mountain and mining regions with that of the older States. All the land +reclaimed would be clear gain. If alternate sections are retained by the +Government, I would suggest that the retained sections be thrown open to +entry under the homestead laws, or sold to actual settlers for a very low +price. + +I renew my previous recommendation to Congress for general amnesty. The +number engaged in the late rebellion yet laboring under disabilities is +very small, but enough to keep up a constant irritation. No possible danger +can accrue to the Government by restoring them to eligibility to hold +office. + +I suggest for your consideration the enactment of a law to better secure +the civil rights which freedom should secure, but has not effectually +secured, to the enfranchised slave. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 7, 1874 + +To the Senate and House of Representatives: + +Since the convening of Congress one year ago the nation has undergone a +prostration in business and industries such as has not been witnessed with +us for many years. Speculation as to the causes for this prostration might +be indulged in without profit, because as many theories would be advanced +as there would be independent writers--those who expressed their own views +without borrowing--upon the subject. Without indulging in theories as to +the cause of this prostration, therefore, I will call your attention only +to the fact, and to some plain questions as to which it would seem there +should be no disagreement. + +During this prostration two essential elements of prosperity have been most +abundant--labor and capital. Both have been largely unemployed. Where +security has been undoubted, capital has been attainable at very moderate +rates. Where labor has been wanted, it has been found in abundance, at +cheap rates compared with what--of necessaries and comforts of life--could +be purchased with the wages demanded. Two great elements of prosperity, +therefore, have not been denied us. A third might be added: Our soil and +climate are unequaled, within the limits of any contiguous territory under +one nationality, for its variety of products to feed and clothe a people +and in the amount of surplus to spare to feed less favored peoples. +Therefore, with these facts in view, it seems to me that wise +statesmanship, at this session of Congress, would dictate legislation +ignoring the past; directing in proper channels these great elements of +prosperity to any people. Debt, debt abroad, is the only element that can, +with always a sound currency, enter into our affairs to cause any continued +depression in the industries and prosperity of our people. + +A great conflict for national existence made necessary, for temporary +purposes, the raising of large sums of money from whatever source +attainable. It made it necessary, in the wisdom of Congress--and I do not +doubt their wisdom in the premises, regarding the necessity of the +times--to devise a system of national currency which it proved to be +impossible to keep on a par with the recognized currency of the civilized +world. This begot a spirit of speculation involving an extravagance and +luxury not required for the happiness or prosperity of a people, and +involving, both directly and indirectly, foreign indebtedness. The +currency, being of fluctuating value, and therefore unsafe to hold for +legitimate transactions requiring money, became a subject of speculation +within itself. These two causes, however, have involved us in a foreign +indebtedness, contracted in good faith by borrower and lender, which should +be paid in coin, and according to the bond agreed upon when the debt was +contracted--gold or its equivalent. The good faith of the Government can +not be violated toward creditors without national disgrace. But our +commerce should be encouraged; American shipbuilding and carrying capacity +increased; foreign markets sought for products of the soil and +manufactories, to the end that we may be able to pay these debts. Where a +new market can be created for the sale of our products, either of the soil, +the mine, or the manufactory, a new means is discovered of utilizing our +idle capital and labor to the advantage of the whole people. But, in my +judgment, the first step toward accomplishing this object is to secure a +currency of fixed, stable value; a currency good wherever civilization +reigns; one which, if it becomes superabundant with one people, will find a +market with some other; a currency which has as its basis the labor +necessary to produce it, which will give to it its value. Gold and silver +are now the recognized medium of exchange the civilized world over, and to +this we should return with the least practicable delay. In view of the +pledges of the American Congress when our present legal-tender system was +adopted, and debt contracted, there should be no delay--certainly no +unnecessary delay--in fixing by legislation a method by which we will +return to specie. To the accomplishment of this end I invite your special +attention. I believe firmly that there can be no prosperous and permanent +revival of business and industries until a policy is adopted--with +legislation to carry it out--looking to a return to a specie basis. It is +easy to conceive that the debtor and speculative classes may think it of +value to them to make so-called money abundant until they can throw a +portion of their burdens upon others. But even these, I believe, would be +disappointed in the result if a course should be pursued which will keep in +doubt the value of the legal-tender medium of exchange. A revival of +productive industry is needed by all classes; by none more than the holders +of property, of whatever sort, with debts to liquidate from realization +upon its sale. But admitting that these two classes of citizens are to be +benefited by expansion, would it be honest to give it? Would not the +general loss be too great to justify such relief? Would it not be just as +honest and prudent to authorize each debtor to issue his own legal-tenders +to the extent of his liabilities? Than to do this, would it not be safer, +for fear of overissues by unscrupulous creditors, to say that all debt +obligations are obliterated in the United States, and now we commence anew, +each possessing all he has at the time free from incumbrance? These +propositions are too absurd to be entertained for a moment by thinking or +honest people. Yet every delay in preparation for final resumption partakes +of this dishonesty, and is only less in degree as the hope is held out that +a convenient season will at last arrive for the good work of redeeming our +pledges to commence. It will never come, in my opinion, except by positive +action by Congress, or by national disasters which will destroy, for a time +at least, the credit of the individual and the State at large. A sound +currency might be reached by total bankruptcy and discredit of the +integrity of the nation and of individuals. I believe it is in the power of +Congress at this session to devise such legislation as will renew +confidence, revive all the industries, start us on a career of prosperity +to last for many years and to save the credit of the nation and of the +people. Steps toward the return to a specie basis are the great requisites +to this devoutly to be sought for end. There are others which I may touch +upon hereafter. + +A nation dealing in a currency below that of specie in value labors under +two great disadvantages: First, having no use for the world's acknowledged +medium of exchange, gold and silver, these are driven out of the country +because there is no need for their use; second, the medium of exchange in +use being of a fluctuating value--for, after all, it is only worth just +what it will purchase of gold and silver, metals having an intrinsic value +just in proportion to the honest labor it takes to produce them--a larger +margin must be allowed for profit by the manufacturer and producer. It is +months from the date of production to the date of realization. Interest +upon capital must be charged, and risk of fluctuation in the value of that +which is to be received in payment added. Hence high prices, acting as a +protection to the foreign producer, who receives nothing in exchange for +the products of his skill and labor except a currency good, at a stable +value, the world over It seems to me that nothing is clearer than that the +greater part of the burden of existing prostration, for the want of a sound +financial system, falls upon the working man, who must after all produce +the wealth, and the salaried man, who superintends and conducts business. +The burden falls upon them in two ways--by the deprivation of employment +and by the decreased purchasing power of their salaries. It is the duty of +Congress to devise the method of correcting the evils which are +acknowledged to exist, and not mine. But I will venture to suggest two or +three things which seem to me as absolutely necessary to a return to specie +payments, the first great requisite in a return to prosperity. The +legal-tender clause to the law authorizing the issue of currency by the +National Government should be repealed, to take effect as to all contracts +entered into after a day fixed in the repealing act--not to apply, however, +to payments of salaries by Government, or for other expenditures now +provided by law to be paid in currency, in the interval pending between +repeal and final resumption. Provision should be made by which the +Secretary of the Treasury can obtain gold as it may become necessary from +time to time from the date when specie redemption commences. To this might +and should be added a revenue sufficiently in excess of expenses to insure +an accumulation of gold in the Treasury to sustain permanent redemption. + +I commend this subject to your careful consideration, believing that a +favorable solution is attainable, and if reached by this Congress that the +present and future generations will ever gratefully remember it as their +deliverer from a thraldom of evil and disgrace. + +With resumption, free banking may be authorized with safety, giving the +same full protection to bill holders which they have under existing laws. +Indeed, I would regard free banking as essential. It would give proper +elasticity to the currency. As more currency should be required for the +transaction of legitimate business, new banks would be started, and in turn +banks would wind up their business when it was found that there was a +superabundance of currency. The experience and judgment of the people can +best decide just how much currency is required for the transaction of the +business of the country. It is unsafe to leave the settlement of this +question to Congress, the Secretary of the Treasury, or the Executive. +Congress should make the regulation under which banks may exist, but should +not make banking a monopoly by limiting the amount of redeemable paper +currency that shall be authorized. Such importance do I attach to this +subject, and so earnestly do I commend it to your attention, that I give it +prominence by introducing it at the beginning of this message. + +During the past year nothing has occurred to disturb the general friendly +and cordial relations of the United States with other powers. + +The correspondence submitted herewith between this Government and its +diplomatic representatives, as also with the representatives of other +countries, shows a satisfactory condition of all questions between the +United States and the most of those countries, and with few exceptions, to +which reference is hereafter made, the absence of any points of difference +to be adjusted. + +The notice directed by the resolution of Congress of June 17, 1874, to be +given to terminate the convention of July 17, 1858, between the United +States and Belgium has been given, and the treaty will accordingly +terminate on the 1st day of July, 1875. This convention secured to certain +Belgian vessels entering the ports of the United States exceptional +privileges which are not accorded to our own vessels. Other features of the +convention have proved satisfactory, and have tended to the cultivation of +mutually beneficial commercial intercourse and friendly relations between +the two countries. I hope that negotiations which have been invited will +result in the celebration of another treaty which may tend to the interests +of both countries. + +Our relations with China continue to be friendly. During the past year the +fear of hostilities between China and Japan, growing out of the landing of +an armed force upon the island of Formosa by the latter, has occasioned +uneasiness. It is earnestly hoped, however, that the difficulties arising +from this cause will be adjusted, and that the advance of civilization in +these Empires may not be retarded by a state of war. In consequence of the +part taken by certain citizens of the United States in this expedition, our +representatives in those countries have been instructed to impress upon the +Governments of China and Japan the firm intention of this country to +maintain strict neutrality in the event of hostilities, and to carefully +prevent any infraction of law on the part of our citizens. + +In connection with this subject I call the attention of Congress to a +generally conceded fact--that the great proportion of the Chinese +immigrants who come to our shores do not come voluntarily, to make their +homes with us and their labor productive of general prosperity, but come +under contracts with headmen, who own them almost absolutely. In a worse +form does this apply to Chinese women. Hardly a perceptible percentage of +them perform any honorable labor, but they are brought for shameful +purposes, to the disgrace of the communities where settled and to the great +demoralization of the youth of those localities. If this evil practice can +be legislated against, it will be my pleasure as well as duty to enforce +any regulation to secure so desirable an end. + +It is hoped that negotiations between the Government of Japan and the +treaty powers, looking to the further opening of the Empire and to the +removal of various restrictions upon trade and travel, may soon produce the +results desired, which can not fail to inure to the benefit of all the +parties. Having on previous occasions submitted to the consideration of +Congress the propriety of the release of the Japanese Government from the +further payment of the indemnity under the convention of October 22, 1864, +and as no action had been taken thereon, it became my duty to regard the +obligations of the convention as in force; and as the other powers +interested had received their portion of the indemnity in full, the +minister of the United States in Japan has, in behalf of this Government, +received the remainder of the amount due to the United States under the +convention of Simonosaki. I submit the propriety of applying the income of +a part, if not of the whole, of this fund to the education in the Japanese +language of a number of young men to be under obligations to serve the +Government for a specified time as interpreters at the legation and the +consulates in Japan. A limited number of Japanese youths might at the same +time be educated in our own vernacular, and mutual benefits would result to +both Governments. The importance of having our own citizens, competent and +familiar with the language of Japan, to act as interpreters and in other +capacities connected with the legation and the consulates in that country +can not readily be overestimated. + +The amount awarded to the Government of Great Britain by the mixed +commission organized under the provisions of the treaty of Washington in +settlement of the claims of British subjects arising from acts committed +between April 13, 1861, and April 9, 1865, became payable, under the terms +of the treaty, within the past year, and was paid upon the 21st day of +September, 1874. In this connection I renew my recommendation, made at the +opening of the last session of Congress, that a special court be created to +hear and determine all claims of aliens against the United States arising +from acts committed against their persons or property during the +insurrection. It appears equitable that opportunity should be offered to +citizens of other states to present their claims, as well as to those +British subjects whose claims were not admissible under the late +commission, to the early decision of some competent tribunal. To this end I +recommend the necessary legislation to organize a court to dispose of all +claims of aliens of the nature referred to in an equitable and satisfactory +manner, and to relieve Congress and the Departments from the consideration +of these questions. + +The legislation necessary to extend to the colony of Newfoundland certain +articles of the treaty of Washington of the 8th day of May, 1871, having +been had, a protocol to that effect was signed in behalf of the United +States and of Great Britain on the 28th day of May last, and was duly +proclaimed on the following day. A copy of the proclamation is submitted +herewith. + +A copy of the report of the commissioner appointed under the act of March +19, 1872, for surveying and marking the boundary between the United States +and the British possessions from the Lake of the Woods to the summit of the +Rocky Mountains is herewith transmitted. I am happy to announce that the +field work of the commission has been completed, and the entire line from +the northwest corner of the Lake of the Woods to the summit of the Rocky +Mountains has been run and marked upon the surface of the earth. It is +believed that the amount remaining unexpended of the appropriation made at +the last session of Congress will be sufficient to complete the office +work. I recommend that the authority of Congress be given to the use of the +unexpended balance of the appropriation in the completion of the work of +the commission in making its report and preparing the necessary maps. + +The court known as the Court of Commissioners of Alabama Claims, created by +an act of Congress of the last session, has organized and commenced its +work, and it is to be hoped that the claims admissible under the provisions +of the act may be speedily ascertained and paid. + +It has been deemed advisable to exercise the discretion conferred upon the +Executive at the last session by accepting the conditions required by the +Government of Turkey for the privilege of allowing citizens of the United +States to hold real estate in the former country, and by assenting to a +certain change in the jurisdiction of courts in the latter. A copy of the +proclamation upon these subjects is herewith communicated. + +There has been no material change in our relations with the independent +States of this hemisphere which were formerly under the dominion of Spain. +Marauding on the frontiers between Mexico and Texas still frequently takes +place, despite the vigilance of the civil and military authorities in that +quarter. The difficulty of checking such trespasses along the course of a +river of such length as the Rio Grande, and so often fordable, is obvious. +It is hoped that the efforts of this Government will be seconded by those +of Mexico to the effectual suppression of these acts of wrong. + +From a report upon the condition of the business before the American and +Mexican Joint Claims Commission, made by the agent on the part of the +United States, and dated October 28, 1874, it appears that of the 1,017 +claims filed on the part of citizens of the United States, 483 had been +finally decided and 75 were in the hands of the umpire, leaving 462 to be +disposed of; and of the 998 claims filed against the United States, 726 had +been finally decided, I was before the umpire, and 271 remained to be +disposed of. Since the date of such report other claims have been disposed +of, reducing somewhat the number still pending; and others have been passed +upon by the arbitrators. It has become apparent, in view of these figures +and of the fact that the work devolving on the umpire is particularly +laborious, that the commission will be unable to dispose of the entire +number of claims pending prior to the 1st day of February, 1875--the date +fixed for its expiration. Negotiations are pending looking to the securing +of the results of the decisions which have been reached and to a further +extension of the commission for a limited time, which it is confidently +hoped will suffice to bring all the business now before it to a final +close. + +The strife in the Argentine Republic is to be deplored, both on account of +the parties thereto and from the probable effects on the interests of those +engaged in the trade to that quarter, of whom the United States are among +the principal. As yet, so far as I am aware, there has been no violation of +our neutrality rights, which, as well as our duties in that respect, it +shall be my endeavor to maintain and observe. + +It is with regret I announce that no further payment has been received from +the Government of Venezuela on account of awards in favor of citizens of +the United States. Hopes have been entertained that if that Republic could +escape both foreign and civil war for a few years its great natural +resources would enable it to honor its obligations. Though it is now +understood to be at peace with other countries, a serious insurrection is +reported to be in progress in an important region of that Republic. This +may be taken advantage of as another reason to delay the payment of the +dues of our citizens. + +The deplorable strife in Cuba continues without any marked change in the +relative advantages of the contending forces. The insurrection continues, +but Spain has gained no superiority. Six years of strife give to the +insurrection a significance which can not be denied. Its duration and the +tenacity of its adherence, together with the absence of manifested power of +suppression on the part of Spain, can not be controverted, and may make +some positive steps on the part of other powers a matter of self-necessity. +I had confidently hoped at this time to be able to announce the arrangement +of some of the important questions between this Government and that of +Spain, but the negotiations have been protracted. The unhappy intestine +dissensions of Spain command our profound sympathy, and must be accepted as +perhaps a cause of some delay. An early settlement, in part at least, of +the questions between the Governments is hoped. In the meantime, awaiting +the results of immediately pending negotiations, I defer a further and +fuller communication on the subject of the relations of this country and +Spain. + +I have again to call the attention of Congress to the unsatisfactory +condition of the existing laws with reference to expatriation and the +election of nationality. Formerly, amid conflicting opinions and decisions, +it was difficult to exactly determine how far the doctrine of perpetual +allegiance was applicable to citizens of the United States. Congress by the +act of the 27th of July, 1868, asserted the abstract right of expatriation +as a fundamental principle of this Government. Notwithstanding such +assertion and the necessity of frequent application of the principle, no +legislation has been had defining what acts or formalities shall work +expatriation or when a citizen shall be deemed to have renounced or to have +lost his citizenship. The importance of such definition is obvious. The +representatives of the United States in foreign countries are continually +called upon to lend their aid and the protection of the United States to +persons concerning the good faith or the reality of whose citizenship there +is at least great question. In some cases the provisions of the treaties +furnish some guide; in others it seems left to the person claiming the +benefits of citizenship, while living in a foreign country, contributing in +no manner to the performance of the duties of a citizen of the United +States, and without intention at any time to return and undertake those +duties, to use the claims to citizenship of the United States simply as a +shield from the performance of the obligations of a citizen elsewhere. + +The status of children born of American parents residing in a foreign +country, of American women who have married aliens, of American citizens +residing abroad where such question is not regulated by treaty, are all +sources of frequent difficulty and discussion. Legislation on these and +similar questions, and particularly defining when and under what +circumstances expatriation can be accomplished or is to be presumed, is +especially needed. In this connection I earnestly call the attention of +Congress to the difficulties arising from fraudulent naturalization. The +United States wisely, freely, and liberally offers its citizenship to all +who may come in good faith to reside within its limits on their complying +with certain prescribed reasonable and simple formalities and conditions. +Among the highest duties of the Government is that to afford firm, +sufficient, and equal protection to all its citizens, whether native born +or naturalized. Care should be taken that a right carrying with it such +support from the Government should not be fraudulently obtained, and should +be bestowed only upon full proof of a compliance with the law; and yet +frequent instances are brought to the attention of the Government of +illegal and fraudulent naturalization and of the unauthorized use of +certificates thus improperly obtained. In some cases the fraudulent +character of the naturalization has appeared upon the face of the +certificate itself; in others examination discloses that the holder had not +complied with the law, and in others certificates have been obtained where +the persons holding them not only were not entitled to be naturalized, but +had not even been within the United States at the time of the pretended +naturalization. Instances of each of these classes of fraud are discovered +at our legations, where the certificates of naturalization are presented +either for the purpose of obtaining passports or in demanding the +protection of the legation. When the fraud is apparent on the face of such +certificates, they are taken up by the representatives of the Government +and forwarded to the Department of State. But even then the record of the +court in which the fraudulent naturalization occurred remains, and +duplicate certificates are readily obtainable. Upon the presentation of +these for the issue of passports or in demanding protection of the +Government, the fraud sometimes escapes notice, and such certificates are +not infrequently used in transactions of business to the deception and +injury of innocent parties. Without placing any additional obstacles in the +way of the obtainment of citizenship by the worthy and well-intentioned +foreigner who comes in good faith to cast his lot with ours, I earnestly +recommend further legislation to punish fraudulent naturalization and to +secure the ready cancellation of the record of every naturalization made in +fraud. + +Since my last annual message the exchange has been made of the ratification +of treaties of extradition with Belgium, Ecuador, Peru, and Salvador; also +of a treaty of commerce and navigation with Peru, and one of commerce and +consular privileges with Salvador; all of which have been duly proclaimed, +as has also a declaration with Russia with reference to trade-marks. + +The report of the Secretary of the Treasury, which by law is made directly +to Congress, and forms no part of this message, will show the receipts and +expenditures of the Government for the last fiscal year, the amount +received from each source of revenue, and the amount paid out for each of +the Departments of Government. It will be observed from this report that +the amount of receipts over expenditures has been but $2,344,882.30 for the +fiscal year ending June 30, 1874, and that for the current fiscal year the +estimated receipts over expenditures will not much exceed $9,000,000. In +view of the large national debt existing and the obligation to add 1 per +cent per annum to the sinking fund, a sum amounting now to over $34,000,000 +per annum, I submit whether revenues should not be increased or +expenditures diminished to reach this amount of surplus. Not to provide for +the sinking fund is a partial failure to comply with the contracts and +obligations of the Government. At the last session of Congress a very +considerable reduction was made in rates of taxation and in the number of +articles submitted to taxation; the question may well be asked, whether or +not, in some instances, unwisely. In connection with this subject, too, I +venture the opinion that the means of collecting the revenue, especially +from imports, have been so embarrassed by legislation as to make it +questionable whether or not large amounts are not lost by failure to +collect, to the direct loss of the Treasury and to the prejudice of the +interests of honest importers and taxpayers. + +The Secretary of the Treasury in his report favors legislation looking to +an early return to specie payments, thus supporting views previously +expressed in this message. He also recommends economy in appropriations; +calls attention to the loss of revenue from repealing the tax on tea and +coffee, without benefit to the consumer; recommends an increase of 10 cents +a gallon on whisky, and, further, that no modification be made in the +banking and currency bill passed at the last session of Congress, unless +modification should become necessary by reason of the adoption of measures +for returning to specie payments. In these recommendations I cordially +join. + +I would suggest to Congress the propriety of readjusting the tariff so as +to increase the revenue, and at the same time decrease the number of +articles upon which duties are levied. Those articles which enter into our +manufactures and are not produced at home, it seems to me, should be +entered free. Those articles of manufacture which we produce a constituent +part of, but do not produce the whole, that part which we do not produce +should enter free also. I will instance fine wool, dyes, etc. These +articles must be imported to form a part of the manufacture of the higher +grades of woolen goods. Chemicals used as dyes, compounded in medicines, +and used in various ways in manufactures come under this class. The +introduction free of duty of such wools as we do not produce would +stimulate the manufacture of goods requiring the use of those we do +produce, and therefore would be a benefit to home production. There are +many articles entering into "home manufactures" which we do not produce +ourselves the tariff upon which increases the cost of producing the +manufactured article. All corrections in this regard are in the direction +of bringing labor and capital in harmony with each other and of supplying +one of the elements of prosperity so much needed. + +The report of the Secretary of War herewith attached, and forming a part of +this message, gives all the information concerning the operations, wants, +and necessities of the Army, and contains many suggestions and +recommendations which I commend to your special attention. + +There is no class of Government employees who are harder worked than the +Army--officers and men; none who perform their tasks more cheerfully and +efficiently and under circumstances of greater privations and hardships. + +Legislation is desirable to render more efficient this branch of the public +service. All the recommendations of the Secretary of War I regard as +judicious, and I especially commend to your attention the following: The +consolidation of Government arsenals; the restoration of mileage to +officers traveling under orders; the exemption of money received from the +sale of subsistence stores from being covered into the Treasury; the use of +appropriations for the purchase of subsistence stores without waiting for +the beginning of the fiscal year for which the appropriation is made; for +additional appropriations for the collection of torpedo material; for +increased appropriations for the manufacture of arms; for relieving the +various States from indebtedness for arms charged to them during the +rebellion; for dropping officers from the rolls of the Army without trial +for the offense of drawing pay more than once for the same period; for the +discouragement of the plan to pay soldiers by cheek, and for the +establishment of a professorship of rhetoric and English literature at West +Point. The reasons for these recommendations are obvious, and are set forth +sufficiently in the reports attached. I also recommend that the status of +the staff corps of the Army be fixed, where this has not already been done, +so that promotions may be made and vacancies filled as they occur in each +grade when reduced below the number to be fixed by law. The necessity for +such legislation is specially felt now in the Pay Department. The number of +officers in that department is below the number adequate to the performance +of the duties required of them by law. + +The efficiency of the Navy has been largely increased during the last year. +Under the impulse of the foreign complications which threatened us at the +commencement of the last session of Congress, most of our efficient wooden +ships were put in condition for immediate service, and the repairs of our +ironclad fleet were pushed with the utmost vigor. The result is that most +of these are now in an effective state and need only to be manned and put +in commission to go at once into service. + +Some of the new sloops authorized by Congress are already in commission, +and most of the remainder are launched and wait only the completion of +their machinery to enable them to take their places as part of our +effective force. + +Two iron torpedo ships have been completed during the last year, and four +of our large double-turreted ironclads are now undergoing repairs. When +these are finished, everything that is useful of our Navy, as now +authorized, will be in condition for service, and with the advance in the +science of torpedo warfare the American Navy, comparatively small as it is, +will be found at any time powerful for the purposes of a peaceful nation. + +Much has been accomplished during the year in aid of science and to +increase the sum of general knowledge and further the interests of commerce +and civilization. Extensive and much-needed soundings have been made for +hydrographic purposes and to fix the proper routes of ocean telegraphs. +Further surveys of the great Isthmus have been undertaken and completed, +and two vessels of the Navy are now employed, in conjunction with those of +England, France, Germany, and Russia, in observations connected with the +transit of Venus, so useful and interesting to the scientific world. + +The estimates for this branch of the public service do not differ +materially from those of last year, those for the general support of the +service being somewhat less and those for permanent improvements at the +various stations rather larger than the corresponding estimate made a year +ago. The regular maintenance and a steady increase in the efficiency of +this most important arm in proportion to the growth of our maritime +intercourse and interests is recommended to the attention of Congress. + +The use of the Navy in time of peace might be further utilized by a direct +authorization of the employment of naval vessels in explorations and +surveys of the supposed navigable waters of other nationalities on this +continent, especially the tributaries of the two great rivers of South +America, the Orinoco and the Amazon. Nothing prevents, under existing laws, +such exploration, except that expenditures must be made in such expeditions +beyond those usually provided for in the appropriations. The field +designated is unquestionably one of interest and one capable of large +development of commercial interests--advantageous to the peoples reached +and to those who may establish relations with them. + +Education of the people entitled to exercise the right of franchise I +regard essential to general prosperity everywhere, and especially so in +republics, where birth, education, or previous condition does not enter +into account in giving suffrage. Next to the public school, the post-office +is the great agent of education over our vast territory. The rapidity with +which new sections are being settled, thus increasing the carrying of mails +in a more rapid ratio than the increase of receipts, is not alarming. The +report of the Postmaster-General herewith attached shows that there was an +increase of revenue in his Department in 1873 over the previous year of +$1,674,411, and an increase of cost of carrying the mails and paying +employees of $3,041,468.91. The report of the Postmaster-General gives +interesting statistics of his Department, and compares them with the +corresponding statistics of a year ago, showing a growth in every branch of +the Department. + +A postal convention has been concluded with New South Wales, an exchange of +postal cards established with Switzerland, and the negotiations pending for +several years past with France have been terminated in a convention with +that country, which went into effect last August. + +An international postal congress was convened in Berne, Switzerland, in +September last, at which the United States was represented by an officer of +the Post-Office Department of much experience and of qualification for the +position. A convention for the establishment of an international postal +union was agreed upon and signed by the delegates of the countries +represented, subject to the approval of the proper authorities of those +countries. + +I respectfully direct your attention to the report of the +Postmaster-General and to his suggestions in regard to an equitable +adjustment of the question of compensation to railroads for carrying the +mails. + +Your attention will be drawn to the unsettled condition of affairs in some +of the Southern States. + +On the 14th of September last the governor of Louisiana called upon me, as +provided by the Constitution and laws of the United States, to aid in +suppressing domestic violence in that State. This call was made in view of +a proclamation issued on that day by D. B. Penn, claiming that he was +elected lieutenant-governor in 1872, and calling upon the militia of the +State to arm, assemble, and drive from power the usurpers, as he designated +the officers of the State government. On the next day I issued my +proclamation commanding the insurgents to disperse within five days from +the date thereof, and subsequently learned that on that day they had taken +forcible possession of the statehouse. Steps were taken by me to support +the existing and recognized State government, but before the expiration of +the five days the insurrectionary movement was practically abandoned, and +the officers of the State government, with some minor exceptions, resumed +their powers and duties. Considering that the present State administration +of Louisiana has been the only government in that State for nearly two +years; that it has been tacitly acknowledged and acquiesced in as such by +Congress, and more than once expressly recognized by me, I regarded it as +my clear duty, when legally called upon for that purpose, to prevent its +overthrow by an armed mob under pretense of fraud and irregularity in the +election of 1872. I have heretofore called the attention of Congress to +this subject, stating that on account of the frauds and forgeries committed +at said election, and because it appears that the returns thereof were +never legally canvassed, it was impossible to tell thereby who were chosen; +but from the best sources of information at my command I have always +believed that the present State officers received a majority of the legal +votes actually cast at that election. I repeat what I said in my special +message of February 23, 1873, that in the event of no action by Congress I +must continue to recognize the government heretofore recognized by me. + +I regret to say that with preparations for the late election decided +indications appeared in some localities in the Southern States of a +determination, by acts of violence and intimidation, to deprive citizens of +the freedom of the ballot because of their political opinions. Bands of +men, masked and armed, made their appearance; White Leagues and other +societies were formed; large quantities of arms and ammunition were +imported and distributed to these organizations; military drills, with +menacing demonstrations, were held, and with all these murders enough were +committed to spread terror among those whose political action was to be +suppressed, if possible, by these intolerant and criminal proceedings. In +some places colored laborers were compelled to vote according to the wishes +of their employers, under threats of discharge if they acted otherwise; and +there are too many instances in which, when these threats were disregarded, +they were remorselessly executed by those who made them. I understand that +the fifteenth amendment to the Constitution was made to prevent this and a +like state of things, and the act of May 31, 1870, with amendments, was +passed to enforce its provisions, the object of both being to guarantee to +all citizens the right to vote and to protect them in the free enjoyment of +that right. Enjoined by the Constitution "to take care that the laws be +faithfully executed," and convinced by undoubted evidence that violations +of said act had been committed and that a widespread and flagrant disregard +of it was contemplated, the proper officers were instructed to prosecute +the offenders, and troops were stationed at convenient points to aid these +officers, if necessary, in the performance of their official duties. +Complaints are made of this interference by Federal authority; but if said +amendment and act do not provide for such interference under the +circumstances as above stated, then they are without meaning, force, or +effect, and the whole scheme of colored enfranchisement is worse than +mockery and little better than a crime. Possibly Congress may find it due +to truth and justice to ascertain, by means of a committee, whether the +alleged wrongs to colored citizens for political purposes are real or the +reports thereof were manufactured for the occasion. + +The whole number of troops in the States of Louisiana, Alabama, Georgia, +Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, +Mississippi, Maryland, and Virginia at the time of the election was 4,082. +This embraces the garrisons of all the forts from the Delaware to the Gulf +of Mexico. + +Another trouble has arisen in Arkansas. Article 13 of the constitution of +that State (which was adopted in 1868, and upon the approval of which by +Congress the State was restored to representation as one of the States of +the Union) provides in effect that before any amendments proposed to this +constitution shall become a part thereof they shall be passed by two +successive assemblies and then submitted to and ratified by a majority of +the electors of the State voting thereon. On the 11th of May, 1874, the +governor convened an extra session of the general assembly of the State, +which on the 18th of the same month passed an act providing for a +convention to frame a new constitution. Pursuant to this act, and at an +election held on the 30th of June, 1874, the convention was approved, and +delegates were chosen thereto, who assembled on the 14th of last July and +framed a new constitution, the schedule of which provided for the election +of an entire new set of State officers in a manner contrary to the then +existing election laws of the State. On the 13th of October, 1874, this +constitution, as therein provided, was submitted to the people for their +approval or rejection, and according to the election returns was approved +by a large majority of those qualified to vote thereon; and at the same +election persons were chosen to fill all the State, county, and township +offices. The governor elected in 1872 for the term of four years turned +over his office to the governor chosen under the new constitution, +whereupon the lieutenant-governor, also elected in 1872 for a term of four +years, claiming to act as governor, and alleging that said proceedings by +which the new constitution was made and a new set of officers elected were +unconstitutional, illegal, and void, called upon me, as provided in section +4, Article IV, of the Constitution, to protect the State against domestic +violence. As Congress is now investigating the political affairs of +Arkansas, I have declined to interfere. + +The whole subject of Executive interference with the affairs of a State is +repugnant to public opinion, to the feelings of those who, from their +official capacity, must be used in such interposition, and to him or those +who must direct. Unless most clearly on the side of law, such interference +becomes a crime; with the law to support it, it is condemned without a +heating. I desire, therefore, that all necessity for Executive direction in +local affairs may become unnecessary and obsolete. I invite the attention, +not of Congress, but of the people of the United States, to the causes and +effects of these unhappy questions. Is there not a disposition on one side +to magnify wrongs and outrages, and on the other side to belittle them or +justify them? If public opinion could be directed to a correct survey of +what is and to rebuking wrong and aiding the proper authorities in +punishing it, a better state of feeling would be inculcated, and the sooner +we would have that peace which would leave the States free indeed to +regulate their own domestic affairs. I believe on the part of our citizens +of the Southern States--the better part of them--there is a disposition to +be law abiding, and to do no violence either to individuals or to the laws +existing. But do they do right in ignoring the existence of violence and +bloodshed in resistance to constituted authority? I sympathize with their +prostrate condition, and would do all in my power to relieve them, +acknowledging that in some instances they have had most trying governments +to live under, and very oppressive ones in the way of taxation for nominal +improvements, not giving benefits equal to the hardships imposed. But can +they proclaim themselves entirely irresponsible for this condition? They +can not. Violence has been rampant in some localities, and has either been +justified or denied by those who could have prevented it. The theory is +even raised that there is to be no further interference on the part of the +General Government to protect citizens within a State where the State +authorities fail to give protection. This is a great mistake. While I +remain Executive all the laws of Congress and the provisions of the +Constitution, including the recent amendments added thereto, will be +enforced with rigor, but with regret that they should have added one jot or +tittle to Executive duties or powers. Let there be fairness in the +discussion of Southern questions, the advocates of both or all political +parties giving honest, truthful reports of occurrences, condemning the +wrong and upholding the tight, and soon all will be well. Under existing +conditions the negro votes the Republican ticket because he knows his +friends are of that party. Many a good citizen votes the opposite, not +because he agrees with the great principles of state which separate +parties, but because, generally, he is opposed to negro rule. This is a +most delusive cry. Treat the negro as a citizen and a voter, as he is and +must remain, and soon parties will be divided, not on the color line, but +on principle. Then we shall have no complaint of sectional interference. + +The report of the Attorney-General contains valuable recommendations +relating to the administration of justice in the courts of the United +States, to which I invite your attention. + +I respectfully suggest to Congress the propriety of increasing the number +of judicial districts in the United States to eleven (the present number +being nine) and the creation of two additional judgeships. The territory to +be traversed by the circuit judges is so great and the business of the +courts so steadily increasing that it is growing more and more impossible +for them to keep up with the business requiring their attention. Whether +this would involve the necessity of adding two more justices of the Supreme +Court to the present number I submit to the judgment of Congress. + +The attention of Congress is invited to the report of the Secretary of the +Interior and to the legislation asked for by him. The domestic interests of +the people are more intimately connected with this Department than with +either of the other Departments of Government. Its duties have been added +to from time to time until they have become so onerous that without the +most perfect system and order it will be impossible for any Secretary of +the Interior to keep trace of all official transactions having his sanction +and done in his name, and for which he is held personally responsible. + +The policy adopted for the management of Indian affairs, known as the peace +policy, has been adhered to with most beneficial results. It is confidently +hoped that a few years more will relieve our frontiers from danger of +Indian depredations. + +I commend the recommendation of the Secretary for the extension of the +homestead laws to the Indians and for some sort of Territorial government +for the Indian Territory. A great majority of the Indians occupying this +Territory are believed yet to be incapable of maintaining their rights +against the more civilized and enlightened white man. Any Territorial form +of government given them, therefore, should protect them in their homes and +property for a period of at least twenty years, and before its final +adoption should be ratified by a majority of those affected. + +The report of the Secretary of the Interior herewith attached gives much +interesting statistical information, which I abstain from giving an +abstract of, but refer you to the report itself. + +The act of Congress providing the oath which pensioners must subscribe to +before drawing their pensions cuts off from this bounty a few survivors of +the War of 1812 residing in the Southern States. I recommend the +restoration of this bounty to all such. The number of persons whose names +would thus be restored to the list of pensioners is not large. They are all +old persons, who could have taken no part in the rebellion, and the +services for which they were awarded pensions were in defense of the whole +country. + +The report of the Commissioner of Agriculture herewith contains suggestions +of much interest to the general public, and refers to the sly approaching +Centennial and the part his Department is ready to take in it. I feel that +the nation at large is interested in having this exposition a success, and +commend to Congress such action as will secure a greater general interest +in it. Already many foreign nations have signified their intention to be +represented at it, and it may be expected that every civilized nation will +be represented. + +The rules adopted to improve the civil service of the Government have been +adhered to as closely as has been practicable with the opposition with +which they meet. The effect, I believe, has been beneficial on the whole, +and has tended to the elevation of the service. But it is impracticable to +maintain them without direct and positive support of Congress. Generally +the support which this reform receives is from those who give it their +support only to find fault when the rules are apparently departed from. +Removals from office without preferring charges against parties removed are +frequently cited as departures from the rules adopted, and the retention of +those against whom charges are made by irresponsible persons and without +good grounds is also often condemned as a violation of them. Under these +circumstances, therefore, I announce that if Congress adjourns without +positive legislation on the subject of "civil-service reform" I will regard +such action as a disapproval of the system, and will abandon it, except so +far as to require examinations for certain appointees, to determine their +fitness. Competitive examinations will be abandoned. + +The gentlemen who have given their services, without compensation, as +members of the board to devise rules and regulations for the government of +the civil service of the country have shown much zeal and earnestness in +their work, and to them, as well as to myself, it will be a source of +mortification if it is to be thrown away. But I repeat that it is +impossible to carry this system to a successful issue without general +approval and assistance and positive law to support it. + +I have stated that three elements of prosperity to the nation--capital, +labor, skilled and unskilled, and products of the soil--still remain with +us. To direct the employment of these is a problem deserving the most +serious attention of Congress. If employment can be given to all the labor +offering itself, prosperity necessarily follows. I have expressed the +opinion, and repeat it, that the first requisite to the accomplishment of +this end is the substitution of a sound currency in place of one of a +fluctuating value. This secured, there are many interests that might be +fostered to the great profit of both labor and capital. How to induce +capital to employ labor is the question. The subject of cheap +transportation has occupied the attention of Congress. Much new light on +this question will without doubt be given by the committee appointed by the +last Congress to investigate and report upon this subject. + +A revival of shipbuilding, and particularly of iron steamship building, is +of vast importance to our national prosperity. The United States is now +paying over $100,000,000 per annum for freights and passage on foreign +ships--to be carried abroad and expended in the employment and support of +other peoples--beyond a fair percentage of what should go to foreign +vessels, estimating on the tonnage and travel of each respectively. It is +to be regretted that this disparity in the carrying trade exists, and to +correct it I would be willing to see a great departure from the usual +course of Government in supporting what might usually be termed private +enterprise. I would not suggest as a remedy direct subsidy to American +steamship lines, but I would suggest the direct offer of ample compensation +for carrying the mails between Atlantic Seaboard cities and the Continent +on American-owned and American-built steamers, and would extend this +liberality to vessels carrying the mails to South American States and to +Central America and Mexico, and would pursue the same policy from our +Pacific seaports to foreign seaports on the Pacific. It might be demanded +that vessels built for this service should come up to a standard fixed by +legislation in tonnage, speed, and all other qualities, looking to the +possibility of Government requiring them at some time for war purposes. The +right also of taking possession of them in such emergency should be +guarded. + +I offer these suggestions, believing them worthy of consideration, in all +seriousness, affecting all sections and all interests alike. If anything +better can be done to direct the country into a course of general +prosperity, no one will be more ready than I to second the plan. + +Forwarded herewith will be found the report of the commissioners appointed +under an act of Congress approved June 20, 1874, to wind up the affairs of +the District government. It will be seen from the report that the net debt +of the District of Columbia, less securities on hand and available, is: + +Bonded debt issued prior to July 1, 1874 - - $8,883,940.93 + +3.65 bonds, act of Congress June 20, 1874 - - 2,088,168.73 + +Certificates of the board of audit - - 4,770,558.45 + +- - + +*** + +State of the Union Address +Ulysses S. Grant +December 7, 1875 + +To the Senate and House of Representatives: + +In submitting my seventh annual message to Congress, in this centennial +year of our national existence as a free and independent people, it affords +me great pleasure to recur to the advancement that has been made from the +time of the colonies, one hundred years ago. We were then a people +numbering only 3,000,000. Now we number more than 40,000,000. Then +industries were confined almost exclusively to the tillage of the soil. Now +manufactories absorb much of the labor of the country. + +Our liberties remain unimpaired; the bondmen have been freed from slavery; +we have become possessed of the respect, if not the friendship, of all +civilized nations. Our progress has been great in all the arts--in science, +agriculture, commerce, navigation, mining, mechanics, law, medicine, etc.; +and in general education the progress is likewise encouraging. Our thirteen +States have become thirty-eight, including Colorado (which has taken the +initiatory steps to become a State), and eight Territories, including the +Indian Territory and Alaska, and excluding Colorado, making a territory +extending from the Atlantic to the Pacific. On the south we have extended +to the Gulf of Mexico, and in the west from the Mississippi to the +Pacific. + +One hundred years ago the cotton gin, the steamship, the railroad, the +telegraph, the reaping, sewing, and modern printing machines, and numerous +other inventions of scarcely less value to our business and happiness were +entirely unknown. + +In 1776 manufactories scarcely existed even in name in all this vast +territory. In 1870 more than 2,000,000 persons were employed in +manufactories, producing more than $2,100,000,000 of products in amount +annually, nearly equal to our national debt. From nearly the whole of the +population of 1776 being engaged in the one occupation of agriculture, in +1870 so numerous and diversified had become the occupation of our people +that less than 6,000,000 out of more than 40,000,000 were so engaged. The +extraordinary effect produced in our country by a resort to diversified +occupations has built a market for the products of fertile lands distant +from the seaboard and the markets of the world. + +The American system of locating various and extensive manufactories next to +the plow and the pasture, and adding connecting railroads and steamboats, +has produced in our distant interior country a result noticeable by the +intelligent portions of all commercial nations. The ingenuity and skill of +American mechanics have been demonstrated at home and abroad in a manner +most flattering to their pride. But for the extraordinary genius and +ability of our mechanics, the achievements of our agriculturists, +manufacturers, and transporters throughout the country would have been +impossible of attainment. + +The progress of the miner has also been great. Of coal our production has +small; now many millions of tons are mined annually. So with iron, which +formed scarcely an appreciable part of our products half a century ago, we +now produce more than the world consumed at the beginning of our national +existence. Lead, zinc, and copper, from being articles of import, we may +expect to be large exporters of in the near future. The development of gold +and silver mines in the United States and Territories has not only been +remarkable, but has had a large influence upon the business of all +commercial nations. Our merchants in the last hundred years have had a +success and have established a reputation for enterprise, sagacity, +progress, and integrity unsurpassed by peoples of older nationalities. This +"good name" is not confined to their homes, but goes out upon every sea and +into every port where commerce enters. With equal pride we can point to our +progress in all of the learned professions. + +As we are now about to enter upon our second centennial--commenting our +manhood as a nation--it is well to look back upon the past and study what +will be best to preserve and advance our future greatness From the fall of +Adam for his transgression to the present day no nation has ever been free +from threatened danger to its prosperity and happiness. We should look to +the dangers threatening us, and remedy them so far as lies in our power. We +are a republic whereof one man is as good as another before the law. Under +such a form of government it is of the greatest importance that all should +be possessed of education and intelligence enough to cast a vote with a +right understanding of its meaning. A large association of ignorant men can +not for any considerable period oppose a successful resistance to tyranny +and oppression from the educated few, but will inevitably sink into +acquiescence to the will of intelligence, whether directed by the demagogue +or by priestcraft. Hence the education of the masses becomes of the first +necessity for the preservation of our institutions. They are worth +preserving, because they have secured the greatest good to the greatest +proportion of the population of any form of government yet devised. All +other forms of government approach it just in proportion to the general +diffusion of education and independence of thought and action. As the +primary step, therefore, to our advancement in all that has marked our +progress in the past century, I suggest for your earnest consideration, and +most earnestly recommend it, that a constitutional amendment be submitted +to the legislatures of the several States for ratification, making it the +duty of each of the several States to establish and forever maintain free +public schools adequate to the education of all the children in the +rudimentary branches within their respective limits, irrespective of sex, +color, birthplace, or religions; forbidding the teaching in said schools of +religious, atheistic, or pagan tenets; and prohibiting the granting of any +school funds or school taxes, or any part thereof, either by legislative, +municipal, or other authority, for the benefit or in aid, directly or +indirectly, of any religious sect or denomination, or in aid or for the +benefit of any other object of any nature or kind whatever. + +In connection with this important question I would also call your attention +to the importance of correcting an evil that, if permitted to continue, +will probably lead to great trouble in our land before the close of the +nineteenth century. It is the accumulation of vast amounts of untaxed +church property. + +In 1850, I believe, the church property of the United States which paid no +tax, municipal or State, amounted to about $83,000,000. In 1860 the amount +had doubled; in 1875 it is about $1,000,000,000. By 1900, without check, it +is safe to say this property will reach a sum exceeding $3,000,000,000. So +vast a sum, receiving all the protection and benefits of Government without +bearing its proportion of the burdens and expenses of the same, will not be +looked upon acquiescently by those who have to pay the taxes. In a growing +country, where real estate enhances so rapidly with time as in the United +States, there is scarcely a limit to the wealth that may be acquired by +corporations, religious or otherwise, if allowed to retain real estate +without taxation. The contemplation of so vast a property as here alluded +to, without taxation, may lead to sequestration without constitutional +authority and through blood. + +I would suggest the taxation of all property equally, whether church or +corporation, exempting only the last resting place of the dead and +possibly, with proper restrictions, church edifices. + +Our relations with most of the foreign powers continue on a satisfactory +and friendly footing. + +Increased intercourse, the extension of commerce, and the cultivation of +mutual interests have steadily improved our relations with the large +majority of the powers of the world, rendering practicable the peaceful +solution of questions which from time to time necessarily arise, leaving +few which demand extended or particular notice. + +The correspondence of the Department of State with our diplomatic +representatives abroad is transmitted herewith. + +I am happy to announce the passage of an act by the General Cortes of +Portugal, proclaimed since the adjournment of Congress, for the abolition +of servitude in the Portuguese colonies. It is to be hoped that such +legislation may be another step toward the great consummation to be +reached, when no man shall be permitted, directly or indirectly, under any +guise, excuse, or form of law, to hold his fellow-man in bondage. I am of +opinion also that it is the duty of the United States, as contributing +toward that end, and required by the spirit of the age in which we live, to +provide by suitable legislation that no citizen of the United States shall +hold slaves as property in any other country or be interested therein. + +Chile has made reparation in the case of the whale ship Good Return, seized +without sufficient cause upward of forty years ago. Though she had hitherto +denied her accountability, the denial was never acquiesced in by this +Government, and the justice of the claim has been so earnestly contended +for that it has been gratifying that she should have at last acknowledged +it. + +The arbitrator in the case of the United States steamer Montijo, for the +seizure and detention of which the Government of the United States of +Colombia was held accountable, has decided in favor of the claim. This +decision has settled a question which had been pending for several years, +and which, while it continued open, might more or less disturb the good +understanding which it is desirable should be maintained between the two +Republics. + +A reciprocity treaty with the King of the Hawaiian Islands was concluded +some months since. As it contains a stipulation that it shall not take +effect until Congress shall enact the proper legislation for that purpose, +copies of the instrument are herewith submitted, in order that, if such +should be the pleasure of Congress, the necessary legislation upon the +subject may be adopted. + +In March last an arrangement was made, through Mr. Cushing, our minister in +Madrid, with the Spanish Government for the payment by the latter to the +United States of the sum of $80,000 in coin, for the purpose of the relief +of the families or persons of the ship's company and certain passengers of +the Virginius. This sum was to have been paid in three installments at two +months each. It is due to the Spanish Government that I should state that +the payments were fully and spontaneously anticipated by that Government, +and that the whole amount was paid within but a few days more than two +months from the date of the agreement, a copy of which is herewith +transmitted. In pursuance of the terms of the adjustment, I have directed +the distribution of the amount among the parties entitled thereto, +including the ship's company and such of the passengers as were American +citizens. Payments are made accordingly, on the application by the parties +entitled thereto. + +The past year has furnished no evidence of an approaching termination of +the ruinous conflict which has been raging for seven years in the +neighboring island of Cuba. The same disregard of the laws of civilized +warfare and of the just demands of humanity which has heretofore called +forth expressions of condemnation from the nations of Christendom has +continued to blacken the sad scene. Desolation, ruin, and pillage are +pervading the rich fields of one of the most fertile and productive regions +of the earth, and the incendiary's torch, firing plantations and valuable +factories and buildings, is the agent marking the alternate advance or +retreat of contending parties. + +The protracted continuance of this strife seriously affects the interests +of all commercial nations, but those of the United States more than others, +by reason of close proximity, its larger trade and intercourse with Cuba, +and the frequent and intimate personal and social relations which have +grown up between its citizens and those of the island. Moreover, the +property of our citizens in Cuba is large, and is rendered insecure and +depreciated in value and in capacity of production by the continuance of +the strife and the unnatural mode of its conduct. The same is true, +differing only in degree, with respect to the interests and people of other +nations; and the absence of any reasonable assurance of a near termination +of the conflict must of necessity soon compel the States thus suffering to +consider what the interests of their own people and their duty toward +themselves may demand. + +I have hoped that Spain would be enabled to establish peace in her colony, +to afford security to the property and the interests of our citizens, and +allow legitimate scope to trade and commerce and the natural productions of +the island. Because of this hope, and from an extreme reluctance to +interfere in the most remote manner in the affairs of another and a +friendly nation, especially of one whose sympathy and friendship in the +struggling infancy of our own existence must ever be remembered with +gratitude, I have patiently and anxiously waited the progress of events. +Our own civil conflict is too recent for us not to consider the +difficulties which surround a government distracted by a dynastic rebellion +at home at the same time that it has to cope with a separate insurrection +in a distant colony. But whatever causes may have produced the situation +which so grievously affects our interests, it exists, with all its +attendant evils operating directly upon this country and its people. Thus +far all the efforts of Spain have proved abortive, and time has marked no +improvement in the situation. The armed bands of either side now occupy +nearly the same ground as in the past, with the difference, from time to +time, of more lives sacrificed, more property destroyed, and wider extents +of fertile and productive fields and more and more of valuable property +constantly wantonly sacrificed to the incendiary's torch. + +In contests of this nature, where a considerable body of people who have +attempted to free themselves of the control of the superior government have +reached such point in occupation of territory, in power, and in general +organization as to constitute in fact a body politic; having a government +in substance as well as in name; possessed of the elements of stability and +equipped with the machinery for the administration of internal policy and +the execution of its laws; prepared and able to administer justice at home, +as well as in its dealings with other powers, it is within the province of +those other powers to recognize its existence as a new and independent +nation. In such cases other nations simply deal with an actually existing +condition of things, and recognize as one of the powers of the earth that +body politic which, possessing the necessary elements, has in fact become a +new power. In a word, the creation of a new state is a fact. + +To establish the condition of things essential to the recognition of this +fact there must be a people occupying a known territory, united under some +known and defined form of government, acknowledged by those subject +thereto, in which the functions of government are administered by usual +methods, competent to mete out justice to citizens and strangers, to afford +remedies for public and for private wrongs, and able to assume the +correlative international obligations and capable of performing the +corresponding international duties resulting from its acquisition of the +rights of sovereignty. A power should exist complete in its organization, +ready to take and able to maintain its place among the nations of the +earth. + +While conscious that the insurrection in Cuba has shown a strength and +endurance which make it at least doubtful whether it be in the power of +Spain to subdue it, it seems unquestionable that no such civil organization +exists which may be recognized as an independent government capable of +performing its international obligations and entitled to be treated as one +of the powers of the earth. A recognition under such circumstances would be +inconsistent with the facts, and would compel the power granting it soon to +support by force the government to which it had really given its only claim +of existence. In my judgment the United States should adhere to the policy +and the principles which have heretofore been its sure and safe guides in +like contests between revolted colonies and their mother country, and, +acting only upon the clearest evidence, should avoid any possibility of +suspicion or of imputation. + +A recognition of the independence of Cuba being, in my opinion, +impracticable and indefensible, the question which next presents itself is +that of the recognition of belligerent rights in the parties to the +contest. + +In a former message to Congress I had occasion to consider this question, +and reached the conclusion that the conflict in Cuba, dreadful and +devastating as were its incidents, did not rise to the fearful dignity of +war. Regarding it now, after this lapse of time, I am unable to see that +any notable success or any marked or real advance on the part of the +insurgents has essentially changed the character of the contest. It has +acquired greater age, but not greater or more formidable proportions. It is +possible that the acts of foreign powers, and even acts of Spain herself, +of this very nature, might be pointed to in defense of such recognition. +But now, as in its past history, the United States should carefully avoid +the false lights which might lead it into the mazes of doubtful law and of +questionable propriety, and adhere rigidly and sternly to the rule, which +has been its guide, of doing only that which is right and honest and of +good report. The question of according or of withholding rights of +belligerency must be judged in every case in view of the particular +attending facts. Unless justified by necessity, it is always, and justly, +regarded as an unfriendly act and a gratuitous demonstration of moral +support to the rebellion. It is necessary, and it is required, when the +interests and rights of another government or of its people are so far +affected by a pending civil conflict as to require a definition of its +relations to the parties thereto. But this conflict must be one which will +be recognized in the sense of international law as war. Belligerence, too, +is a fact. The mere existence of contending armed bodies and their +occasional conflicts do not constitute war in the sense referred to. +Applying to the existing condition of affairs in Cuba the tests recognized +by publicists and writers on international law, and which have been +observed by nations of dignity, honesty, and power when free from sensitive +or selfish and unworthy motives, I fail to find in the insurrection the +existence of such a substantial political organization, real, palpable, and +manifest to the world, having the forms and capable of the ordinary +functions of government toward its own people and to other states, with +courts for the administration of justice, with a local habitation, +possessing such organization of force, such material, such occupation of +territory, as to take the contest out of the category of a mere rebellious +insurrection or occasional skirmishes and place it on the terrible footing +of war, to which a recognition of belligerency would aim to elevate it. The +contest, moreover, is solely on land; the insurrection has not possessed +itself of a single seaport whence it may send forth its flag, nor has it +any means of communication with foreign powers except through the military +lines of its adversaries. No apprehension of any of those sudden and +difficult complications which a war upon the ocean is apt to precipitate +upon the vessels, both commercial and national, and upon the consular +officers of other powers calls for the definition of their relations to the +parties to the contest. Considered as a question of expediency, I regard +the accordance of belligerent rights still to be as unwise and premature as +I regard it to be, at present, indefensible as a measure of right. Such +recognition entails upon the country according the rights which flow from +it difficult and complicated duties, and requires the exaction from the +contending parties of the strict observance of their rights and +obligations; it confers the right of search upon the high seas by vessels +of both parties; it would subject the carrying of arms and munitions of +war, which now may be transported freely and without interruption in the +vessels of the United States, to detention and to possible seizure; it +would give rise to countless vexatious questions, would release the parent +Government from responsibility for acts done by the insurgents, and would +invest Spain with the right to exercise the supervision recognized by our +treaty of 1795 over our commerce on the high seas, a very large part of +which, in its traffic between the Atlantic and the Gulf States and between +all of them and the States on the Pacific, passes through the waters which +wash the shores of Cuba. The exercise of this supervision could scarce fail +to lead, if not to abuses, certainly to collisions perilous to the peaceful +relations of the two States. There can be little doubt to what result such +supervision would before long draw this nation. It would be unworthy of the +United States to inaugurate the possibilities of such result by measures of +questionable right or expediency or by any indirection. Apart from any +question of theoretical right, I am satisfied that while the accordance of +belligerent rights to the insurgents in Cuba might give them a hope and an +inducement to protract the struggle, it would be but a delusive hope, and +would not remove the evils which this Government and its people are +experiencing, but would draw the United States into complications which it +has waited long and already suffered much to avoid. The recognition of +independence or of belligerency being thus, in my judgment, equally +inadmissible, it remains to consider what course shall be adopted should +the conflict not soon be brought to an end by acts of the parties +themselves, and should the evils which result therefrom, affecting all +nations, and particularly the United States, continue. In such event I am +of opinion that other nations will be compelled to assume the +responsibility which devolves upon them, and to seriously consider the only +remaining measures possible--mediation and intervention, Owing, perhaps, to +the large expanse of water separating the island from the peninsula, the +want of harmony and of personal sympathy between the inhabitants of the +colony and those sent thither to rule them, and want of adaptation of the +ancient colonial system of Europe to the present times and to the ideas +which the events of the past century have developed, the contending parties +appear to have within themselves no depository of common confidence to +suggest wisdom when passion and excitement have their sway and to assume +the part of peacemaker. In this view in the earlier days of the contest the +good offices of the United States as a mediator were tendered in good +faith, without any selfish purpose, in the interest of humanity and in +sincere friendship for both parties, but were at the time declined by +Spain, with the declaration, nevertheless, that at a future time they would +be indispensable. No intimation has been received that in the opinion of +Spain that time has been reached. And yet the strife continues, with all +its dread horrors and all its injuries to the interests of the United +States and of other nations. Each party seems quite capable of working +great injury and damage to the other, as well as to all the relations and +interests dependent on the existence of peace in the island; but they seem +incapable of reaching any adjustment, and both have thus far failed of +achieving any success whereby one party shall possess and control the +island to the exclusion of the other. Under these circumstances the agency +of others, either by mediation or by intervention, seems to be the only +alternative which must, sooner or later, be invoked for the termination of +the strife. At the same time, while thus impressed I do not at this time +recommend the adoption of any measure of intervention. I shall be ready at +all times, and as the equal friend of both parties, to respond to a +suggestion that the good offices of the United States will be acceptable to +aid in bringing about a peace honorable to both. It is due to Spain, so far +as this Government is concerned, that the agency of a third power, to which +I have adverted, shall be adopted only as a last expedient. Had it been the +desire of the United States to interfere in the affairs of Cuba, repeated +opportunities for so doing have been presented within the last few years; +but we have remained passive, and have performed our whole duty and all +international obligations to Spain with friendship, fairness, and fidelity, +and with a spirit of patience and forbearance which negatives every +possible suggestion of desire to interfere or to add to the difficulties +with which she has been surrounded. + +The Government of Spain has recently submitted to our minister at Madrid +certain proposals which it is hoped may be found to be the basis, if not +the actual submission, of terms to meet the requirements of the particular +griefs of which this Government has felt itself entitled to complain. These +proposals have not yet reached me in their full text. On their arrival they +will be taken into careful examination, and may, I hope, lead to a +satisfactory adjustment of the questions to which they refer and remove the +possibility of future occurrences such as have given rise to our just +complaints. + +It is understood also that renewed efforts are being made to introduce +reforms in the internal administration of the island. Persuaded, however, +that a proper regard for the interests of the United States and of its +citizens entitles it to relief from the strain to which it has been +subjected by the difficulties of the questions and the wrongs and losses +which arise from the contest in Cuba, and that the interests of humanity +itself demand the cessation of the strife before the whole island shall be +laid waste and larger sacrifices of life be made, I shall feel it my duty, +should my hopes of a satisfactory adjustment and of the early restoration +of peace and the removal of future causes of complaint be, unhappily, +disappointed, to make a further communication to Congress at some period +not far remote, and during the present session, recommending what may then +seem to me to be necessary. + +The free zone, so called, several years since established by the Mexican +Government in certain of the States of that Republic adjacent to our +frontier, remains in full operation. It has always been materially +injurious to honest traffic, for it operates as an incentive to traders in +Mexico to supply without customs charges the wants of inhabitants on this +side of the line, and prevents the same wants from being supplied by +merchants of the United States, thereby to a considerable extent defrauding +our revenue and checking honest commercial enterprise. + +Depredations by armed bands from Mexico on the people of Texas near the +frontier continue. Though the main object of these incursions is robbery, +they frequently result in the murder of unarmed and peaceably disposed +persons, and in some instances even the United States post-offices and mail +communications have been attacked. Renewed remonstrances upon this subject +have been addressed to the Mexican Government, but without much apparent +effect. The military force of this Government disposable for service in +that quarter is quite inadequate to effectually guard the line, even at +those points where the incursions are usually made. An experiment of an +armed vessel on the Rio Grande for that purpose is on trial, and it is +hoped that, if not thwarted by the shallowness of the river and other +natural obstacles, it may materially contribute to the protection of the +herdsmen of Texas. + +The proceedings of the joint commission under the convention between the +United States and Mexico of the 4th of July, 1868, on the subject of +claims, will soon be brought to a close. The result of those proceedings +will then be communicated to Congress. + +I am happy to announce that the Government of Venezuela has, upon further +consideration, practically abandoned its objection to pay to the United +States that share of its revenue which some years since it allotted toward +the extinguishment of the claims of foreigners generally. In thus +reconsidering its determination that Government has shown a just sense of +self-respect which can not fail to reflect credit upon it in the eyes of +all disinterested persons elsewhere. It is to be regretted, however, that +its payments on account of claims of citizens of the United States are +still so meager in amount, and that the stipulations of the treaty in +regard to the sums to be paid and the periods when those payments were to +take place should have been so signally disregarded. + +Since my last annual message the exchange has been made of the ratification +of a treaty of commerce and navigation with Belgium, and of conventions +with the Mexican Republic for the further extension of the joint commission +respecting claims; with the Hawaiian Islands for commercial reciprocity, +and with the Ottoman Empire for extradition; all of which have been duly +proclaimed. + +The Court of Commissioners of Alabama Claims has prosecuted its important +duties very assiduously and very satisfactorily. It convened and was +organized on the 22d day of July, 1874, and by the terms of the act under +which it was created was to exist for one year from that date. The act +provided, however, that should it be found impracticable to complete the +work of the court before the expiration of the year the President might by +proclamation extend the time of its duration to a period not more than six +months beyond the expiration of the one year. + +Having received satisfactory evidence that it would be impracticable to +complete the work within the time originally fixed, I issued a proclamation +(a copy of which is presented herewith) extending the time of duration of +the court for a period of six months from and after the 22d day of July +last. + +A report made through the clerk of the court (communicated herewith) shows +the condition of the calendar on the 1st of November last and the large +amount of work which has been accomplished. One thousand three hundred and +eighty-two claims have been presented, of which 682 had been disposed of at +the date of the report. I am informed that 170 cases were decided during +the month of November. Arguments are being made and decisions given in the +remaining cases with all the dispatch consistent with the proper +consideration of the questions submitted. Many of these claims are in +behalf of mariners, or depend on the evidence of mariners, whose absence +has delayed the taking or the return of the necessary evidence. + +It is represented to me that it will be impracticable for the court to +finally dispose of all the cases before it within the present limit of its +duration. Justice to the parties claimant, who have been at large expense +in preparing their claims and obtaining the evidence in their support, +suggests a short extension, to enable the court to dispose of all of the +claims which have been presented. + +I recommend the legislation which may be deemed proper to enable the court +to complete the work before it. + +I recommend that some suitable provision be made, by the creation of a +special court or by conferring the necessary jurisdiction upon some +appropriate tribunal, for the consideration and determination of the claims +of aliens against the Government of the United States which have arisen +within some reasonable limitation of time, or which may hereafter arise, +excluding all claims barred by treaty provisions or otherwise. It has been +found impossible to give proper consideration to these claims by the +Executive Departments of the Government. Such a tribunal would afford an +opportunity to aliens other than British subjects to present their claims +on account of acts committed against their persons or property during the +rebellion, as also to those subjects of Great Britain whose claims, having +arisen subsequent to the 9th day of April, 1865, could not be presented to +the late commission organized pursuant to the provisions of the treaty of +Washington. + +The electric telegraph has become an essential and indispensable agent in +the transmission of business and social messages. Its operation on land, +and within the limit of particular states, is necessarily under the control +of the jurisdiction within which it operates. The lines on the high seas, +however, are not subject to the particular control of any one government. + +In 1869 a concession was granted by the French Government to a company +which proposed to lay a cable from the shores of France to the United +States. At that time there was a telegraphic connection between the United +States and the continent of Europe (through the possessions of Great +Britain at either end of the line), under the control of an association +which had, at large outlay of capital and at great risk, demonstrated the +practicability of maintaining such means of communication. The cost of +correspondence by this agency was great, possibly not too large at the time +for a proper remuneration for so hazardous and so costly an enterprise. It +was, however, a heavy charge upon a means of communication which the +progress in the social and commercial intercourse of the world found to be +a necessity, and the obtaining of this French concession showed that other +capital than that already invested was ready to enter into competition, +with assurance of adequate return for their outlay. Impressed with the +conviction that the interests, not only of the people of the United States, +but of the world at large, demanded, or would demand, the multiplication of +such means of communication between separated continents, I was desirous +that the proposed connection should be made; but certain provisions of this +concession were deemed by me to be objectionable, particularly one which +gave for a long term of years the exclusive right of telegraphic +communication by submarine cable between the shores of France and the +United States. I could not concede that any power should claim the right to +land a cable on the shores of the United States and at the same time deny +to the United States, or to its citizens or grantees, an equal fight to +land a cable on its shores. The right to control the conditions for the +laying of a cable within the jurisdictional waters of the United States, to +connect our shores with those of any foreign state, pertains exclusively to +the Government of the United States, under such limitations and conditions +as Congress may impose. In the absence of legislation by Congress I was +unwilling, on the one hand, to yield to a foreign state the right to say +that its grantees might land on our shores while it denied a similar right +to our people to land on its shores, and, on the other hand, I was +reluctant to deny to the great interests of the world and of civilization +the facilities of such communication as were proposed. I therefore withheld +any resistance to the landing of the cable on condition that the offensive +monopoly feature of the concession be abandoned, and that the right of any +cable which may be established by authority of this Government to land upon +French territory and to connect with French land lines and enjoy all the +necessary facilities or privileges incident to the use thereof upon as +favorable terms as any other company be conceded. As the result thereof the +company in question renounced the exclusive privilege, and the +representative of France was informed that, understanding this +relinquishment to be construed as granting the entire reciprocity and equal +facilities which had been demanded, the opposition to the landing of the +cable was withdrawn. The cable, under this French concession, was landed in +the month of July, 1869, and has been an efficient and valuable agent of +communication between this country and the other continent. It soon passed +under the control, however, of those who had the management of the cable +connecting Great Britain with this continent, and thus whatever benefit to +the public might have ensued from competition between the two lines was +lost, leaving only the greater facilities of an additional line and the +additional security in case of accident to one of them. But these increased +facilities and this additional security, together with the control of the +combined capital of the two companies, gave also greater power to prevent +the future construction of other lines and to limit the control of +telegraphic communication between the two continents to those possessing +the lines already laid. Within a few months past a cable has been laid, +known as the United States Direct Cable Company, connecting the United +States directly with Great Britain. As soon as this cable was reported to +be laid and in working order the rates of the then existing consolidated +companies were greatly reduced. Soon, however, a break was announced in +this new cable, and immediately the rates of the other line, which had been +reduced, were again raised. This cable being now repaired, the rates appear +not to be reduced by either line from those formerly charged by the +consolidated companies. + +There is reason to believe that large amounts of capital, both at home and +abroad, are ready to seek profitable investment in the advancement of this +useful and most civilizing means of intercourse and correspondence. They +await, however, the assurance of the means and conditions on which they may +safely be made tributary to the general good. + +As these cable telegraph lines connect separate states, there are questions +as to their organization and control which probably can be best, if not +solely, settled by conventions between the respective states. In the +absence, however, of international conventions on the subject, municipal +legislation may secure many points which appear to me important, if not +indispensable for the protection of the public against the extortions which +may result from a monopoly of the right of operating cable telegrams or +from a combination between several lines: + +I. No line should be allowed to land on the shores of the United States +under the concession from another power which does not admit the right of +any other line or lines, formed in the United States, to land and freely +connect with and operate through its land lines. + +II. No line should be allowed to land on the shores of the United States +which is not, by treaty stipulation with the government from whose shores +it proceeds, or by prohibition in its charter, or otherwise to the +satisfaction of this Government, prohibited from consolidating or +amalgamating with any other cable telegraph line, or combining therewith +for the purpose of regulating and maintaining the cost of telegraphing. + +III. All lines should be bound to give precedence in the transmission of +the official messages of the governments of the two countries between which +it may be laid. + +IV. A power should be reserved to the two governments, either conjointly or +to each, as regards the messages dispatched from its shores, to fix a limit +to the charges to be demanded for the transmission of messages. + +I present this subject to the earnest consideration of Congress. + +In the meantime, and unless Congress otherwise direct, I shall not oppose +the landing of any telegraphic cable which complies with and assents to the +points above enumerated, but will feel it my duty to prevent the landing of +any which does not conform to the first and second points as stated, and +which will not stipulate to concede to this Government the precedence in +the transmission of its official messages and will not enter into a +satisfactory arrangement with regard to its charges. + +Among the pressing and important subjects to which, in my opinion, the +attention of Congress should be directed are those relating to fraudulent +naturalization and expatriation. + +The United States, with great liberality, offers its citizenship to all who +in good faith comply with the requirements of law. These requirements are +as simple and upon as favorable terms to the emigrant as the high privilege +to which he is admitted can or should permit. I do not propose any +additional requirements to those which the law now demands; but the very +simplicity and the want of unnecessary formality in our law have made +fraudulent naturalization not infrequent, to the discredit and injury of +all honest citizens, whether native or naturalized. Cases of this character +are continually being brought to the notice of the Government by our +representatives abroad, and also those of persons resident in other +countries, most frequently those who, if they have remained in this country +long enough to entitle them to become naturalized, have generally not much +overpassed that period, and have returned to the country of their origin, +where they reside, avoiding all duties to the United States by their +absence, and claiming to be exempt from all duties to the country of their +nativity and of their residence by reason of their alleged naturalization. +It is due to this Government itself and to the great mass of the +naturalized citizens who entirely, both in name and in fact, become +citizens of the United States that the high privilege of citizenship of the +United States should not be held by fraud or in derogation of the laws and +of the good name of every honest citizen. On many occasions it has been +brought to the knowledge of the Government that certificates of +naturalization are held and protection or interference claimed by parties +who admit that not only they were not within the United States at the time +of the pretended naturalization, but that they have never resided in the +United States; in others the certificate and record of the court show on +their face that the person claiming to be naturalized had not resided the +required time in the United States; in others it is admitted upon +examination that the requirements of law have not been complied with; in +some cases, even, such certificates have been matter of purchase. These are +not isolated cases, arising at rare intervals, but of common occurrence, +and which are reported from all quarters of the globe. Such occurrences can +not, and do not, fail to reflect upon the Government and injure all honest +citizens. Such a fraud being discovered, however, there is no practicable +means within the control of the Government by which the record of +naturalization can be vacated; and should the certificate be taken up, as +it usually is, by the diplomatic and consular representatives of the +Government to whom it may have been presented, there is nothing to prevent +the person claiming to have been naturalized from obtaining a new +certificate from the court in place of that which has been taken from him. + +The evil has become so great and of such frequent occurrence that I can not +too earnestly recommend that some effective measures be adopted to provide +a proper remedy and means for the vacating of any record thus fraudulently +made, and of punishing the guilty parties to the transaction. + +In this connection I refer also to the question of expatriation and the +election of nationality. + +The United States was foremost in upholding the right of expatriation, and +was principally instrumental in overthrowing the doctrine of perpetual +allegiance. Congress has declared the right of expatriation to be a natural +and inherent right of all people; but while many other nations have enacted +laws providing what formalities shall be necessary to work a change of +allegiance, the United States has enacted no provisions of law and has in +no respect marked out how and when expatriation may be accomplished by its +citizens. Instances are brought to the attention of the Government where +citizens of the United States, either naturalized or native born, have +formally become citizens or subjects of foreign powers, but who, +nevertheless, in the absence of any provisions of legislation on this +question, when involved in difficulties or when it seems to be their +interest, claim to be citizens of the United States and demand the +intervention of a Government which they have long since abandoned and to +which for years they have rendered no service nor held themselves in any +way amenable. + +In other cases naturalized citizens, immediately after naturalization, have +returned to their native country; have become engaged in business; have +accepted offices or pursuits inconsistent with American citizenship, and +evidence no intent to return to the United States until called upon to +discharge some duty to the country where they are residing, when at once +they assert their citizenship and call upon the representatives of the +Government to aid them in their unjust pretensions. It is but justice to +all bona fide citizens that no doubt should exist on such questions, and +that Congress should determine by enactment of law how expatriation may be +accomplished and change of citizenship be established. + +I also invite your attention to the necessity of regulating by law the +status of American women who may marry foreigners, and of defining more +fully that of children born in a foreign country of American parents who +may reside abroad; and also of some further provision regulating or giving +legal effect to marriages of American citizens contracted in foreign +countries. The correspondence submitted herewith shows a few of the +constantly occurring questions on these points presented to the +consideration of the Government. There are few subjects to engage the +attention of Congress on which more delicate relations or more important +interests are dependent. + +In the month of July last the building erected for the Department of State +was taken possession of and occupied by that Department. I am happy to +announce that the archives and valuable papers of the Government in the +custody of that Department are now safely deposited and properly cared +for. + +The report of the Secretary of the Treasury shows the receipts from customs +for the fiscal year ending June 30, 1874, to have been $163,103,833.69, and +for the fiscal year ending June 30, 1875, to have been $157,267,722.35, a +decrease for the last fiscal year of $5,936,111.34. Receipts from internal +revenue for the year ending the 30th of June, 1874, were $102,409,784.90, +and for the year ending June 30, 1875, $110,007,493.58; increase, +$7,597,708.68. + +The report also shows a complete history of the workings of the Department +for the last year, and contains recommendations for reforms and for +legislation which I concur in, but can not comment on so fully as I should +like to do if space would permit, but will confine myself to a few +suggestions which I look upon as vital to the best interests of the whole +people--coming within the purview of "Treasury;" I mean specie resumption. +Too much stress can not be laid upon this question, and I hope Congress may +be induced, at the earliest day practicable, to insure the consummation of +the act of the last Congress, at its last session, to bring about specie +resumption "on and after the 1st of January, 1879," at furthest. It would +be a great blessing if this could be consummated even at an earlier day. + +Nothing seems to me more certain than that a full, healthy, and permanent +reaction can not take place in favor of the industries and financial +welfare of the country until we return to a measure of values recognized +throughout the civilized world. While we use a currency not equivalent to +this standard the world's recognized standard, specie, becomes a commodity +like the products of the soil, the surplus seeking a market wherever there +is a demand for it. + +Under our present system we should want none, nor would we have any, were +it not that customs dues must be paid in coin and because of the pledge to +pay interest on the public debt in coin. The yield of precious metals would +flow out for the purchase of foreign productions and the United States +"hewers of wood and drawers of water," because of wiser legislation on the +subject of finance by the nations with whom we have dealings. I am not +prepared to say that I can suggest the best legislation to secure the end +most heartily recommended. It will be a source of great gratification to me +to be able to approve any measure of Congress looking effectively toward +securing "resumption." + +Unlimited inflation would probably bring about specie payments more +speedily than any legislation looking to redemption of the legal-tenders in +coin; but it would be at the expense of honor. The legal-tenders would have +no value beyond settling present liabilities, or, properly speaking, +repudiating them. They would buy nothing after debts were all settled. + +There are a few measures which seem to me important in this connection and +which I commend to your earnest consideration: + +A repeal of so much of the legal-tender act as makes these notes receivable +for debts contracted after a date to be fixed in the act itself, say not +later than the 1st of January, 1877. We should then have quotations at real +values, not fictitious ones. Gold would no longer be at a premium, but +currency at a discount. A healthy reaction would set in at once, and with +it a desire to make the currency equal to what it purports to be. The +merchants, manufacturers, and tradesmen of every calling could do business +on a fair margin of profit, the money to be received having an unvarying +value. Laborers and all classes who work for stipulated pay or salary would +receive more for their income, because extra profits would no longer be +charged by the capitalists to compensate for the risk of a downward +fluctuation in the value of the currency. + +Second. That the Secretary of the Treasury be authorized to redeem, say, +not to exceed $2,000,000 monthly of legal-tender notes, by issuing in their +stead a long bond, bearing interest at the rate of 3.65 per cent per annum, +of denominations ranging from $50 up to $1,000 each. This would in time +reduce the legal-tender notes to a volume that could be kept afloat without +demanding redemption in large sums suddenly. + +Third. That additional power be given to the Secretary of the Treasury to +accumulate gold for final redemption, either by increasing revenue, +curtailing expenses, or both (it is preferable to do both); and I recommend +that reduction of expenditures be made wherever it can be done without +impairing Government obligations or crippling the due execution thereof. +One measure for increasing the revenue--and the only one I think of--is the +restoration of the duty on tea and coffee. These duties would add probably +$18,000,000 to the present amount received from imports, and would in no +way increase the prices paid for those articles by the consumers. + +These articles are the products of countries collecting revenue from +exports, and as we, the largest consumers, reduce the duties they +proportionately increase them. With this addition to the revenue, many +duties now collected, and which give but an insignificant return for the +cost of collection, might be remitted, and to the direct advantage of +consumers at home. + +I would mention those articles which enter into manufactures of all sorts. +All duty paid upon such articles goes directly to the cost of the article +when manufactured here, and must be paid for by the consumers. These duties +not only come from the consumers at home, but act as a protection to +foreign manufacturers of the same completed articles in our own and distant +markets. + +I will suggest or mention another subject bearing upon the problem of "how +to enable the Secretary of the Treasury to accumulate balances." It is to +devise some better method of verifying claims against the Government than +at present exists through the Court of Claims, especially those claims +growing out of the late war. Nothing is more certain than that a very large +percentage of the amounts passed and paid are either wholly fraudulent or +are far in excess of the real losses sustained. The large amount of losses +proven--on good testimony according to existing laws, by affidavits of +fictitious or unscrupulous persons--to have been sustained on small farms +and plantations are not only far beyond the possible yield of those places +for any one year, but, as everyone knows who has had experience in tilling +the soil and who has visited the scenes of these spoliations, are in many +instances more than the individual claimants were ever worth, including +their personal and real estate. + +The report of the Attorney-General, which will be submitted to Congress at +an early day, will contain a detailed history of awards made and of claim +pending of the class here referred to. + +The report of the Secretary of War, accompanying this message, gives a +detailed account of Army operations for the year just passed, expenses for +maintenance, etc., with recommendations for legislation to which I +respectfully invite your attention. To some of these I invite special +attention: + +First. The necessity of making $300,000 of the appropriation for the +Subsistence Department available before the beginning of the next fiscal +year. Without this provision troops at points distant from supply +production must either go without food or existing laws must be violated. +It is not attended with cost to the Treasury. + +Second. His recommendation for the enactment of a system of annuities for +the families of deceased officers by voluntary deductions from the monthly +pay of officers. This again is not attended with burden upon the Treasury, +and would for the future relieve much distress which every old army officer +has witnessed in the past--of officers dying suddenly or being killed, +leaving families without even the means of reaching their friends, if +fortunate enough to have friends to aid them. + +Third. The repeal of the law abolishing mileage, and a return to the old +system. + +Fourth. The trial with torpedoes under the Corps of Engineers, and +appropriation for the same. Should war ever occur between the United States +and any maritime power, torpedoes will be among if not the most effective +and cheapest auxiliary for the defense of harbors, and also in aggressive +operations, that we can have. Hence it is advisable to learn by experiment +their best construction and application, as well as effect. + +Fifth. A permanent organization for the Signal-Service Corps. This service +has now become a necessity of peace as well as war, under the advancement +made by the present able management. + +Sixth. A renewal of the appropriation for compiling the official records of +the war, etc. + +The condition of our Navy at this time is a subject of satisfaction. It +does not contain, it is true, any of the powerful cruising ironclads which +make so much of the maritime strength of some other nations, but neither +our continental situation nor our foreign policy requires that we should +have a large number of ships of this character, while this situation and +the nature of our ports combine to make those of other nations little +dangerous to us under any circumstances. + +Our Navy does contain, however, a considerable number of ironclads of the +monitor class, which, though not properly cruisers, are powerful and +effective for harbor defense and for operations near our own shores. Of +these all the single-turreted ones, fifteen in number, have been +substantially rebuilt, their rotten wooden beams replaced with iron, their +hulls strengthened, and their engines and machinery thoroughly repaired, so +that they are now in the most efficient condition and ready for sea as soon +as they can be manned and put in commission. + +The five double-turreted ironclads belonging to our Navy, by far the most +powerful of our ships for fighting purposes, are also in hand undergoing +complete repairs, and could be ready for sea in periods varying from four +to six months. With these completed according to the present design and our +two iron torpedo boats now ready, our ironclad fleet will be, for the +purposes of defense at home, equal to any force that can readily be brought +against it. + +Of our wooden navy also cruisers of various sizes, to the number of about +forty, including those now in commission, are in the Atlantic, and could be +ready for duty as fast as men could be enlisted for those not already in +commission. Of these, one-third are in effect new ships, and though some of +the remainder need considerable repairs to their boilers and machinery, +they all are, or can readily be made, effective. + +This constitutes a fleet of more than fifty war ships, of which fifteen are +ironclad, now in hand on the Atlantic coast. The Navy has been brought to +this condition by a judicious and practical application of what could be +spared from the current appropriations of the last few years and from that +made to meet the possible emergency of two years ago. It has been done +quietly, without proclamation or display, and though it has necessarily +straitened the Department in its ordinary expenditure, and, as far as the +ironclads are concerned, has added nothing to the cruising force of the +Navy, yet the result is not the less satisfactory because it is to be found +in a great increase of real rather than apparent force. The expenses +incurred in the maintenance of an effective naval force in all its branches +are necessarily large, but such force is essential to our position, +relations, and character, and affects seriously the weight of our +principles and policy throughout the whole sphere of national +responsibilities. + +The estimates for the regular support of this branch of the service for the +next year amount to a little less in the aggregate than those made for the +current year; but some additional appropriations are asked for objects not +included in the ordinary maintenance of the Navy, but believed to be of +pressing importance at this time. It would, in my opinion, be wise at once +to afford sufficient means for the immediate completion of the five +double-turreted monitors now undergoing repairs, which must otherwise +advance slowly, and only as money can be spared from current expenses. +Supplemented by these, our Navy, armed with the destructive weapons of +modern warfare, manned by our seamen, and in charge of our instructed +officers, will present a force powerful for the home purposes of a +responsible though peaceful nation. + +The report of the Postmaster-General herewith transmitted gives a full +history of the workings of the Department for the year just past. It will +be observed that the deficiency to be supplied from the General Treasury is +increased over the amount required for the preceding year. In a country so +vast in area as the United States, with large portions sparsely settled, it +must be expected that this important service will be more or less a burden +upon the Treasury for many years to come. But there is no branch of the +public service which interests the whole people more than that of cheap and +rapid transmission of the mails to every inhabited part of our territory. +Next to the free school, the post-office is the great educator of the +people, and it may well receive the support of the General Government. + +The subsidy of $150,000 per annum given to vessels of the United States for +carrying the mails between New York and Rio de Janeiro having ceased on the +30th day of September last, we are without direct mail facilities with the +South American States. This is greatly to be regretted, and I do not +hesitate to recommend the authorization of a renewal of that contract, and +also that the service may be increased from monthly to semi-monthly trips. +The commercial advantages to be gained by a direct line of American +steamers to the South American States will far outweigh the expense of the +service. + +By act of Congress approved March 3, 1875, almost all matter, whether +properly mail matter or not, may be sent any distance through the mails, in +packages not exceeding 4 pounds in weight, for the sum of 16 cents per +pound. So far as the transmission of real mail matter goes, this would seem +entirely proper; but I suggest that the law be so amended as to exclude +from the mails merchandise of all descriptions, and limit this +transportation to articles enumerated, and which may be classed as mail +matter proper. + +The discovery of gold in the Black Hills, a portion of the Sioux +Reservation, has had the effect to induce a large emigration of miners to +that point. Thus far the effort to protect the treaty rights of the Indians +to that section has been successful, but the next year will certainly +witness a large increase of such emigration. The negotiations for the +relinquishment of the gold fields having failed, it will be necessary for +Congress to adopt some measures to relieve the embarrassment growing out of +the causes named. The Secretary of the Interior suggests that the supplies +now appropriated for the sustenance of that people, being no longer +obligatory under the treaty of 1868, but simply a gratuity, may be issued +or withheld at his discretion. + +The condition of the Indian Territory, to which I have referred in several +of my former annual messages, remains practically unchanged. The Secretary +of the Interior has taken measures to obtain a full report of the condition +of that Territory, and will make it the subject of a special report at an +early day. It may then be necessary to make some further recommendation in +regard to legislation for the government of that Territory. + +The steady growth and increase of the business of the Patent Office +indicates in some measure the progress of the industrial activity of the +country. The receipts of the office are in excess of its expenditures, and +the office generally is in a prosperous and satisfactory condition. + +The report of the General Land Office shows that there were 2,459,601 acres +less disposed of during this than during the last year. More than one-half +of this decrease was in lands disposed of under the homestead and +timber-culture laws. The cause of this decrease is supposed to be found in +the grasshopper scourge and the droughts which prevailed so extensively in +some of the frontier States and Territories during that time as to +discourage and deter entries by actual settlers. The cash receipts were +less by $690,322.23 than during the preceding year. + +The entire surveyed area of the public domain is 680,253,094 acres, of +which 26,077,531 acres were surveyed during the past year, leaving +1,154,471,762 acres still unsurveyed. + +The report of the Commissioner presents many interesting suggestions in +regard to the management and disposition of the public domain and the +modification of existing laws, the apparent importance of which should +insure for them the careful consideration of Congress. + +The number of pensioners still continues to decrease, the highest number +having been reached during the year ending June 30, 1873. During the last +year 11,557 names were added to the rolls, and 12,977 were dropped +therefrom, showing a net decrease of 1,420. But while the number of +pensioners has decreased, the annual amount due on the pension rolls has +increased $44,733.13. This is caused by the greatly increased average rate +of pensions, which, by the liberal legislation of Congress, has increased +from $90.26 in 1872 to $103.91 in 1875 to each invalid pensioner, an +increase in the average rate of 15 per cent in the three years. During the +year ending June 30, 1875, there was paid on account of pensions, including +the expenses of disbursement, $29,683,116, being $910,632 less than was +paid the preceding year. This reduction in amount of expenditures was +produced by the decrease in the amount of arrearages due on allowed claims +and on pensions the rate of which was increased by the legislation of the +preceding session of Congress. At the close of the last fiscal year there +were on the pension rolls 234,821 persons, of whom 210,363 were army +pensioners, 105,478 being invalids and 104,885 widows and dependent +relatives; 3,420 were navy pensioners, of whom 1,636 were invalids and +1,784 widows and dependent relatives; 21,038 were pensioners of the War of +1812, 15,875 of whom were survivors and 5,163 were widows. + +It is estimated that $29,535,000 will be required for the payment of +pensions for the next fiscal year, an amount $965,000 less than the +estimate for the present year. + +The geological explorations have been prosecuted with energy during the +year, covering an area of about 40,000 square miles in the Territories of +Colorado, Utah, and New Mexico, developing the agricultural and mineral +resources and furnishing interesting scientific and topographical details +of that region. + +The method for the treatment of the Indians adopted at the beginning of my +first term has been steadily pursued, and with satisfactory and encouraging +results. It has been productive of evident improvement in the condition of +that race, and will be continued, with only such modifications as further +experience may indicate to be necessary. + +The board heretofore appointed to take charge of the articles and materials +pertaining to the War, the Navy, the Treasury, the Interior, and the +Post-Office Departments, and the Department of Agriculture, the Smithsonian +Institution, and the Commission of Food Fishes, to be contributed, under +the legislation of last session, to the international exhibition to be held +at Philadelphia during the centennial year 1876, has been diligent in the +discharge of the duties which have devolved upon it; and the preparations +so far made with the means at command give assurance that the governmental +contribution will be made one of the marked characteristics of the +exhibition. The board has observed commendable economy in the matter of the +erection of a building for the governmental exhibit, the expense of which +it is estimated will not exceed, say, $80,000. This amount has been +withdrawn, under the law, from the appropriations of five of the principal +Departments, which leaves some of those Departments without sufficient +means to render their respective practical exhibits complete and +satisfactory. The exhibition being an international one, and the Government +being a voluntary contributor, it is my opinion that its contribution +should be of a character, in quality and extent, to sustain the dignity and +credit of so distinguished a contributor. The advantages to the country of +a creditable display are, in an international point of view, of the first +importance, while an indifferent or uncreditable participation by the +Government would be humiliating to the patriotic feelings of our people +themselves. I commend the estimates of the board for the necessary +additional appropriations to the favorable consideration of Congress. + +The powers of Europe almost without exception, many of the South American +States, and even the more distant Eastern powers have manifested their +friendly sentiments toward the United States and the interest of the world +in our progress by taking steps to join with us in celebrating the +centennial of the nation, and I strongly recommend that a more national +importance be given to this exhibition by such legislation and by such +appropriation as will insure its success. Its value in bringing to our +shores innumerable useful works of art and skill, the commingling of the +citizens of foreign countries and our own, and the interchange of ideas and +manufactures will far exceed any pecuniary outlay we may make. + +I transmit herewith the report of the Commissioner of Agriculture, together +with the reports of the Commissioners, the board of audit, and the board of +health of the District of Columbia, to all of which I invite your +attention. + +The Bureau of Agriculture has accomplished much in disseminating useful +knowledge to the agriculturist, and also in introducing new and useful +productions adapted to our soil and climate, and is worthy of the continued +encouragement of the Government. + +The report of the Commissioner of Education, which accompanies the report +of the Secretary of the Interior, shows a gratifying progress in +educational matters. + +In nearly every annual message that I have had the honor of transmitting to +Congress I have called attention to the anomalous, not to say scandalous, +condition of affairs existing in the Territory of Utah, and have asked for +definite legislation to correct it. That polygamy should exist in a free, +enlightened, and Christian country, without the power to punish so flagrant +a crime against decency and morality, seems preposterous. True, there is no +law to sustain this unnatural vice; but what is needed is a law to punish +it as a crime, and at the same time to fix the status of the innocent +children, the offspring of this system, and of the possibly innocent plural +wives. But as an institution polygamy should be banished from the land. + +While this is being done I invite the attention of Congress to another, +though perhaps no less an evil--the importation of Chinese women, but few +of whom are brought to our shores to pursue honorable or useful +occupations. + +Observations while visiting the Territories of Wyoming, Utah, and Colorado +during the past autumn convinced me that existing laws regulating the +disposition of public lands, timber, etc., and probably the mining laws +themselves, are very defective and should be carefully amended, and at an +early day. Territory where cultivation of the soil can only be followed by +irrigation, and where irrigation is not practicable the lands can only be +used as pasturage, and this only where stock can reach water (to quench its +thirst), can not be governed by the same laws as to entries as lands every +acre of which is an independent estate by itself. + +Land must be held in larger quantities to justify the expense of conducting +water upon it to make it fruitful, or to justify utilizing it as pasturage. +The timber in most of the Territories is principally confined to the +mountain regions, which are held for entry in small quantities only, and as +mineral lands. The timber is the property of the United States, for the +disposal of which there is now no adequate law. The settler must become a +consumer of this timber, whether he lives upon the plain or engages in +working the mines. Hence every man becomes either a trespasser himself or +knowingly a patron of trespassers. + +My opportunities for observation were not sufficient to justify me in +recommending specific legislation on these subjects, but I do recommend +that a joint committee of the two Houses of Congress, sufficiently large to +be divided into subcommittees, be organized to visit all the mining States +and Territories during the coming summer, and that the committee shall +report to Congress at the next session such laws or amendments to laws as +it may deem necessary to secure the best interests of the Government and +the people of these Territories, who are doing so much for their +development. + +I am sure the citizens occupying the territory described do not wish to be +trespassers, nor will they be if legal ways are provided for them to become +owners of these actual necessities of their position. + +As this will be the last annual message which I shall have the honor of +transmitting to Congress before my successor is chosen, I will repeat or +recapitulate the questions which I deem of vital importance which may be +legislated upon and settled at this session: + +First. That the States shall be required to afford the opportunity of a +good common-school education to every child within their limits. + +Second. No sectarian tenets shall ever be taught in any school supported in +whole or in part by the State, nation, or by the proceeds of any tax levied +upon any community. Make education compulsory so far as to deprive all +persons who can not read and write from becoming voters after the year +1890, disfranchising none, however, on grounds of illiteracy who may be +voters at the time this amendment takes effect. + +Third. Declare church and state forever separate and distinct, but each +free within their proper spheres; and that all church property shall bear +its own proportion of taxation. + +Fourth. Drive out licensed immorality, such as polygamy and the importation +of women for illegitimate purposes. To recur again to the centennial year, +it would seem as though now, as we are about to begin the second century of +our national existence, would be a most fitting time for these reforms. + +Fifth. Enact such laws as will insure a speedy return to a sound currency, +such as will command the respect of the world. + +Believing that these views will commend themselves to the great majority of +the right-thinking and patriotic citizens of the United States, I submit +the rest to Congress. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 5, 1876 + +To the Senate and House of Representatives: + +In submitting my eighth and last annual message to Congress it seems proper +that I should refer to and in some degree recapitulate the events and +official acts of the past eight years. + +It was my fortune, or misfortune, to be called to the office of Chief +Executive without any previous political training. From the age of 17 I had +never even witnessed the excitement attending a Presidential campaign but +twice antecedent to my own candidacy, and at but one of them was I eligible +as a voter. + +Under such circumstances it is but reasonable to suppose that errors of +judgment must have occurred. Even had they not, differences of opinion +between the Executive, bound by an oath to the strict performance of his +duties, and writers and debaters must have arisen. It is not necessarily +evidence of blunder on the part of the Executive because there are these +differences of views. Mistakes have been made, as all can see and I admit, +but it seems to me oftener in the selections made of the assistants +appointed to aid in carrying out the various duties of administering the +Government--in nearly every case selected without a personal acquaintance +with the appointee, but upon recommendations of the representatives chosen +directly by the people. It is impossible, where so many trusts are to be +allotted, that the right parties should be chosen in every instance. +History shows that no Administration from the time of Washington to the +present has been free from these mistakes. But I leave comparisons to +history, claiming only that I have acted in every instance from a +conscientious desire to do what was right, constitutional, within the law, +and for the very best interests of the whole people. Failures have been +errors of judgment, not of intent. + +My civil career commenced, too, at a most critical and difficult time. Less +than four years before, the country had emerged from a conflict such as no +other nation had ever survived. Nearly one-half of the States had revolted +against the Government, and of those remaining faithful to the Union a +large percentage of the population sympathized with the rebellion and made +an "enemy in the rear" almost as dangerous as the more honorable enemy in +the front. The latter committed errors of judgment, but they maintained +them openly and courageously; the former received the protection of the +Government they would see destroyed, and reaped all the pecuniary advantage +to be gained out of the then existing state of affairs, many of them by +obtaining contracts and by swindling the Government in the delivery of +their goods. + +Immediately on the cessation of hostilities the then noble President, who +had carried the country so far through its perils, fell a martyr to his +patriotism at the hands of an assassin. + +The intervening time to my first inauguration was filled up with wranglings +between Congress and the new Executive as to the best mode of +"reconstruction," or, to speak plainly, as to whether the control of the +Government should be thrown immediately into the hands of those who had so +recently and persistently tried to destroy it, or whether the victors +should continue to have an equal voice with them in this control. +Reconstruction, as finally agreed upon, means this and only this, except +that the late slave was enfranchised, giving an increase, as was supposed, +to the Union-loving and Union-supporting votes. If free in the full sense +of the word, they would not disappoint this expectation. Hence at the +beginning of my first Administration the work of reconstruction, much +embarrassed by the long delay, virtually commenced. It was the work of the +legislative branch of the Government. My province was wholly in approving +their acts, which I did most heartily, urging the legislatures of States +that had not yet done so to ratify the fifteenth amendment to the +Constitution. The country was laboring under an enormous debt, contracted +in the suppression of rebellion, and taxation was so oppressive as to +discourage production. Another danger also threatened us--a foreign war. +The last difficulty had to be adjusted and was adjusted without a war and +in a manner highly honorable to all parties concerned. Taxes have been +reduced within the last seven years nearly $300,000,000, and the national +debt has been reduced in the same time over $435,000,000. By refunding the +6 per cent bonded debt for bonds bearing 5 and 4 1/2 per cent interest, +respectively, the annual interest has been reduced from over $130,000,000 +in 1869 to but little over $100,000,000 in 1876. The balance of trade has +been changed from over $130,000,000 against the United States in 1869 to +more than $120,000,000 in our favor in 1876. + +It is confidently believed that the balance of trade in favor of the United +States will increase, not diminish, and that the pledge of Congress to +resume specie payments in 1879 will be easily accomplished, even in the +absence of much-desired further legislation on the subject. + +A policy has been adopted toward the Indian tribes inhabiting a large +portion of the territory of the United States which has been humane and has +substantially ended Indian hostilities in the whole land except in a +portion of Nebraska, and Dakota, Wyoming, and Montana Territories--the +Black Hills region and approaches thereto. Hostilities there have grown out +of the avarice of the white man, who has violated our treaty stipulations +in his search for gold. The question might be asked why the Government has +not enforced obedience to the terms of the treaty prohibiting the +occupation of the Black Hills region by whites. The answer is simple: The +first immigrants to the Black Hills were removed by troops, but rumors of +rich discoveries of gold took into that region increased numbers. Gold has +actually been found in paying quantity, and an effort to remove the miners +would only result in the desertion of the bulk of the troops that might be +sent there to remove them. All difficulty in this matter has, however, been +removed--subject to the approval of Congress--by a treaty ceding the Black +Hills and approaches to settlement by citizens. + +The subject of Indian policy and treatment is so fully set forth by the +Secretary of the Interior and the Commissioner of Indian Affairs, and my +views so fully expressed therein, that I refer to their reports and +recommendations as my own. + +The relations of the United States with foreign powers continue on a +friendly footing. + +Questions have arisen from time to time in the foreign relations of the +Government, but the United States have been happily free during the past +year from the complications and embarrassments which have surrounded some +of the foreign powers. + +The diplomatic correspondence submitted herewith contains information as to +certain of the matters which have occupied the Government. + +The cordiality which attends our relations with the powers of the earth has +been plainly shown by the general participation of foreign nations in the +exhibition which has just closed and by the exertions made by distant +powers to show their interest in and friendly feelings toward the United +States in the commemoration of the centennial of the nation. The Government +and people of the United States have not only fully appreciated this +exhibition of kindly feeling, but it may be justly and fairly expected that +no small benefits will result both to ourselves and other nations from a +better acquaintance, and a better appreciation of our mutual advantages and +mutual wants. + +Congress at its last session saw fit to reduce the amount usually +appropriated for foreign intercourse by withholding appropriations for +representatives of the United States in certain foreign countries and for +certain consular officers, and by reducing the amounts usually appropriated +for certain other diplomatic posts, and thus necessitating a change in the +grade of the representatives. For these reasons, immediately upon the +passage of the bill making appropriations for the diplomatic and consular +service for the present fiscal year, instructions were issued to the +representatives of the United States at Bolivia, Ecuador, and Colombia, and +to the consular officers for whom no appropriation had been made, to close +their respective legations and consulates and cease from the performance of +their duties; and in like manner steps were immediately taken to substitute +charge's d'affaires for ministers resident in Portugal, Denmark, Greece, +Switzerland, and Paraguay. + +While thoroughly impressed with the wisdom of sound economy in the foreign +service, as in other branches of the Government, I can not escape the +conclusion that in some instances the withholding of appropriations will +prove an expensive economy, and that the small retrenchment secured by a +change of grade in certain diplomatic posts is not an adequate +consideration for the loss of influence and importance which will attend +our foreign representatives under this reduction. I am of the opinion that +a reexamination of the subject will cause a change in some instances in the +conclusions reached on these subjects at the last session of Congress. + +The Court of Commissioners of Alabama Claims, whose functions were +continued by an act of the last session of Congress until the 1st day of +January, 1877, has carried on its labors with diligence and general +satisfaction. By a report from the clerk of the court, transmitted +herewith, bearing date November 14, 1876, it appears that within the time +now allowed by law the court will have disposed of all the claims presented +for adjudication. This report also contains a statement of the general +results of the labors of the court to the date thereof. It is a cause of +satisfaction that the method adopted for the satisfaction of the classes of +claims submitted to the court, which are of long standing and justly +entitled to early consideration, should have proved successful and +acceptable. + +It is with satisfaction that I am enabled to state that the work of the +joint commission for determining the boundary line between the United +States and British possessions from the northwest angle of the Lake of the +Woods to the Rocky Mountains, commenced in 1872, has been completed. The +final agreements of the commissioners, with the maps, have been duly +signed, and the work of the commission is complete. + +The fixing of the boundary upon the Pacific coast by the protocol of March +10, 1873, pursuant to the award of the Emperor of Germany by Article XXXIV +of the treaty of Washington, with the termination of the work of this +commission, adjusts and fixes the entire boundary between the United States +and the British possessions, except as to the portion of territory ceded by +Russia to the United States under the treaty of 1867. The work intrusted to +the commissioner and the officers of the Army attached to the commission +has been well and satisfactorily performed. The original of the final +agreement of the commissioners, signed upon the 29th of May, 1876, with the +original official "lists of astronomical stations observed," the original +official "list of monuments marking the international boundary line," and +the maps, records, and general reports relating to the commission, have +been deposited in the Department of State. The official report of the +commissioner on the part of the United States, with the report of the chief +astronomer of the United States, will be submitted to Congress within a +short time. + +I reserve for a separate communication to Congress a statement of the +condition of the questions which lately arose with Great Britain respecting +the surrender of fugitive criminals under the treaty of 1842. + +The Ottoman Government gave notice, under date of January 15, 1874, of its +desire to terminate the treaty of 1862, concerning commerce and navigation, +pursuant to the provisions of the twenty-second article thereof. Under this +notice the treaty terminated upon the 5th day of June, 1876. That +Government has invited negotiations toward the conclusion of a new treaty. + +By the act of Congress of March 23, 1874, the President was authorized, +when he should receive satisfactory information that the Ottoman Government +or that of Egypt had organized new tribunals likely to secure to citizens +of the United States the same impartial justice enjoyed under the exercise +of judicial functions by diplomatic and consular officers of the United +States, to suspend the operation of the act of June 22, 1860, and to accept +for citizens of the United States the jurisdiction of the new tribunals. +Satisfactory information having been received of the organization of such +new tribunals in Egypt, I caused a proclamation to be issued upon the 27th +of March last, suspending the operation of the act of June 22, 1860, in +Egypt, according to the provisions of the act. A copy of the proclamation +accompanies this message. The United States has united with the other +powers in the organization of these courts. It is hoped that the +jurisdictional questions which have arisen may be readily adjusted, and +that this advance in judicial reform may be hindered by no obstacles. + +The necessary legislation to carry into effect the convention respecting +commercial reciprocity concluded with the Hawaiian Islands in 1875 having +been had, the proclamation to carry into effect the convention, as provided +by the act approved August 15, 1876, was duly issued upon the 9th day of +September last. A copy thereof accompanies this message. + +The commotions which have been prevalent in Mexico for some time past, and +which, unhappily, seem to be not yet wholly quieted, have led to complaints +of citizens of the United States of injuries by persons in authority. It is +hoped, however, that these will ultimately be adjusted to the satisfaction +of both Governments. The frontier of the United States in that quarter has +not been exempt from acts of violence by citizens of one Republic on those +of the other. The frequency of these is supposed to be increased and their +adjustment made more difficult by the considerable changes in the course of +the lower part of the Rio Grande River, which river is a part of the +boundary between the two countries. These changes have placed on either +side of that river portions of land which by existing conventions belong to +the jurisdiction of the Government on the opposite side of the river. The +subject of adjustment of this cause of difficulty is under consideration +between the two Republics. + +The Government of the United States of Colombia has paid the award in the +case of the steamer Montijo, seized by authorities of that Government some +years since, and the amount has been transferred to the claimants. + +It is with satisfaction that I am able to announce that the joint +commission for the adjustment of claims between the United States and +Mexico under the convention of 1868, the duration of which has been several +times extended, has brought its labors to a close. From the report of the +agent of the United States, which accompanies the papers transmitted +herewith, it will be seen that within the time limited by the commission +1,017 claims on the part of citizens of the United States against Mexico +were referred to the commission. Of these claims 831 were dismissed or +disallowed, and in 186 cases awards were made in favor of the claimants +against the Mexican Republic, amounting in the aggregate to $4,125,622.20. +Within the same period 998 claims on the part of citizens of the Mexican +Republic against the United States were referred to the commission. Of +these claims 831 were dismissed or disallowed, and in 167 cases awards were +made in favor of the claimants against the United States, amounting in the +aggregate to $150,498.41. + +By the terms of the convention the amount of these awards is to be deducted +from the amount awarded in favor of our citizens against Mexico, and the +balance only to be paid by Mexico to the United States, leaving the United +States to make provision for this proportion of the awards in favor of its +Own citizens. + +I invite your attention to the legislation which will be necessary to +provide for the payment. + +In this connection I am pleased to be able to express the acknowledgments +due to Sir Edward Thornton, the umpire of the commission, who has given to +the consideration of the large number of claims submitted to him much time, +unwearied patience, and that firmness and intelligence which are well known +to belong to the accomplished representative of Great Britain, and which +are likewise recognized by the representative in this country of the +Republic of Mexico. + +Monthly payments of a very small part of the amount due by the Government +of Venezuela to citizens of the United States on account of claims of the +latter against that Government continue to be made with reasonable +punctuality. That Government has proposed to change the system which it has +hitherto pursued in this respect by issuing bonds for part of the amount of +the several claims. The proposition, however, could not, it is supposed, +properly be accepted, at least without the consent of the holders of +certificates of the indebtedness of Venezuela. These are so much dispersed +that it would be difficult, if not impossible, to ascertain their +disposition on the subject. + +In former messages I have called the attention of Congress to the necessity +of legislation with regard to fraudulent naturalization and to the subject +of expatriation and the election of nationality. + +The numbers of persons of foreign birth seeking a home in the United +States, the ease and facility with which the honest emigrant may, after the +lapse of a reasonable time, become possessed of all the privileges of +citizenship of the United States, and the frequent occasions which induce +such adopted citizens to return to the country of their birth render the +subject of naturalization and the safeguards which experience has proved +necessary for the protection of the honest naturalized citizen of paramount +importance. The very simplicity in the requirements of law on this question +affords opportunity for fraud, and the want of uniformity in the +proceedings and records of the various courts and in the forms of the +certificates of naturalization issued affords a constant source of +difficulty. + +I suggest no additional requirements to the acquisition of citizenship +beyond those now existing, but I invite the earnest attention of Congress +to the necessity and wisdom of some provisions regarding uniformity in the +records and certificates, and providing against the frauds which frequently +take place and for the vacating of a record of naturalization obtained in +fraud. + +These provisions are needed in aid and for the protection of the honest +citizen of foreign birth, and for the want of which he is made to suffer +not infrequently. The United States has insisted upon the right of +expatriation, and has obtained, after a long struggle, an admission of the +principle contended for by acquiescence therein on the part of many foreign +powers and by the conclusion of treaties on that subject. It is, however, +but justice to the government to which such naturalized citizens have +formerly owed allegiance, as well as to the United States, that certain +fixed and definite rules should be adopted governing such cases and +providing how expatriation may be accomplished. + +While emigrants in large numbers become citizens of the United States, it +is also true that persons, both native born and naturalized, once citizens +of the United States, either by formal acts or as the effect of a series of +facts and circumstances, abandon their citizenship and cease to be entitled +to the protection of the United States, but continue on convenient +occasions to assert a claim to protection in the absence of provisions on +these questions. + +And in this connection I again invite your attention to the necessity of +legislation concerning the marriages of American citizens contracted +abroad, and concerning the status of American women who may marry +foreigners and of children born of American parents in a foreign country. + +The delicate and complicated questions continually occurring with reference +to naturalization, expatriation, and the status of such persons as I have +above referred to induce me to earnestly direct your attention again to +these subjects. + +In like manner I repeat my recommendation that some means be provided for +the hearing and determination of the just and subsisting claims of aliens +upon the Government of the United States within a reasonable limitation, +and of such as may hereafter arise. While by existing provisions of law the +Court of Claims may in certain cases be resorted to by an alien claimant, +the absence of any general provisions governing all such cases and the want +of a tribunal skilled in the disposition of such cases upon recognized +fixed and settled principles, either provides no remedy in many deserving +cases or compels a consideration of such claims by Congress or the +executive department of the Government. + +It is believed that other governments are in advance of the United States +upon this question, and that the practice now adopted is entirely +unsatisfactory. + +Congress, by an act approved the 3d day of March, 1875, authorized the +inhabitants of the Territory of Colorado to form a State government, with +the name of the State of Colorado, and therein provided for the admission +of said State, when formed, into the Union upon an equal footing with the +original States. + +A constitution having been adopted and ratified by the people of that +State, and the acting governor having certified to me the facts as provided +by said act, together with a copy of such constitution and ordinances as +provided for in the said act, and the provisions of the said act of +Congress having been duly complied with, I issued a proclamation upon the +1st of August, 1876, a copy of which is hereto annexed. + +The report of the Secretary of War shows that the Army has been actively +employed during the year in subduing, at the request of the Indian Bureau, +certain wild bands of the Sioux Indian Nation and in preserving the peace +at the South during the election. The commission constituted under the act +of July 24, 1876, to consider and report on the "whole subject of the +reform and reorganization of the Army" met in August last, and has +collected a large mass of statistics and opinions bearing on the subject +before it. These are now under consideration, and their report is +progressing. I am advised, though, by the president of the commission that +it will be impracticable to comply with the clause of the act requiring the +report to be presented, through me, to Congress on the first day of this +session, as there has not yet been time for that mature deliberation which +the importance of the subject demands. Therefore I ask that the time of +making the report be extended to the 29th day of January, 1877. + +In accordance with the resolution of August 15, 1876, the Army regulations +prepared under the act of March 1, 1875, have not been promulgated, but are +held until after the report of the above-mentioned commission shall have +been received and acted on. + +By the act of August 15, 1876, the cavalry force of the Army was increased +by 2,500 men, with the proviso that they should be discharged on the +expiration of hostilities. Under this authority the cavalry regiments have +been strengthened, and a portion of them are now in the field pursuing the +remnants of the Indians with whom they have been engaged during the +summer. + +The estimates of the War Department are made up on the basis of the number +of men authorized by law, and their requirements as shown by years of +experience, and also with the purpose on the part of the bureau officers to +provide for all contingencies that may arise during the time for which the +estimates are made. Exclusive of engineer estimates (presented in +accordance with acts of Congress calling for surveys and estimates for +improvements at various localities), the estimates now presented are about +six millions in excess of the appropriations for the years 1874-75 and +1875-76. This increase is asked in order to provide for the increased +cavalry force (should their services be necessary), to prosecute +economically work upon important public buildings, to provide for armament +of fortifications and manufacture of small arms, and to replenish the +working stock in the supply departments. The appropriations for these last +named have for the past few years been so limited that the accumulations in +store will be entirely exhausted during the present year, and it will be +necessary to at once begin to replenish them. + +I invite your special attention to the following recommendations of the +Secretary of War: + +First. That the claims under the act of July 4, 1864, for supplies taken by +the Army during the war be removed from the offices of the Quartermaster +and Commissary Generals and transferred to the Southern Claims Commission. +These claims are of precisely similar nature to those now before the +Southern Claims Commission, and the War Department bureaus have not the +clerical force for their examination nor proper machinery for investigating +the loyalty of the claimants. + +Second. That Congress sanction the scheme of an annuity fund for the +benefit of the families of deceased officers, and that it also provide for +the permanent organization of the Signal Service, both of which were +recommended in my last annual message. + +Third. That the manufacturing operations of the Ordnance Department be +concentrated at three arsenals and an armory, and that the remaining +arsenals be sold and the proceeds applied to this object by the Ordnance +Department. + +The appropriations for river and harbor improvements for the current year +were $5,015,000. With my approval, the Secretary of War directed that of +this amount $2,000,000 should be expended, and no new works should be begun +and none prosecuted which were not of national importance. Subsequently +this amount was increased to $2,237,600, and the works are now progressing +on this basis. + +The improvement of the South Pass of the Mississippi River, under James B. +Eads and his associates, is progressing favorably. At the present time +there is a channel of 20.3 feet in depth between the jetties at the mouth +of the pass and 18.5 feet at the head of the pass. Neither channel, +however, has the width required before payments can be made by the United +States. A commission of engineer officers is now examining these works, and +their reports will be presented as soon as received. + +The report of the Secretary of the Navy shows that branch of the service to +be in condition as effective as it is possible to keep it with the means +and authority given the Department. It is, of course, not possible to rival +the costly and progressive establishments of great European powers with the +old material of our Navy, to which no increase has been authorized since +the war, except the eight small cruisers built to supply the place of +others which had gone to decay. Yet the most has been done that was +possible with the means at command; and by substantially rebuilding some of +our old ships with durable material and completely repairing and refitting +our monitor fleet the Navy has been gradually so brought up that, though it +does not maintain its relative position among the progressive navies of the +world, it is now in a condition more powerful and effective than it ever +has been in time of peace. + +The complete repairs of our five heavy ironclads are only delayed on +account of the inadequacy of the appropriations made last year for the +working bureaus of the Department, which were actually less in amount than +those made before the war, notwithstanding the greatly enhanced price of +labor and materials and the increase in the cost of the naval service +growing out of the universal use and great expense of steam machinery. The +money necessary for these repairs should be provided at once, that they may +be completed without further unnecessary delay and expense. + +When this is done, all the strength that there is in our Navy will be +developed and useful to its full capacity, and it will be powerful for +purposes of defense, and also for offensive action, should the necessity +for that arise within a reasonable distance from our shores. + +The fact that our Navy is not more modern and powerful than it is has been +made a cause of complaint against the Secretary of the Navy by persons who +at the same time criticise and complain of his endeavors to bring the Navy +that we have to its best and most efficient condition; but the good sense +of the country will understand that it is really due to his practical +action that we have at this time any effective naval force at command. + +The report of the Postmaster-General shows the excess of expenditures +(excluding expenditures on account of previous years) over receipts for the +fiscal year ended June 30, 1876, to be $4,151,988.66. + +Estimated expenditures for the fiscal year ending June 30, 1878, are +$36,723,432.43. + +Estimated revenue for same period is $30,645,165, leaving estimated excess +of expenditure, to be appropriated as a deficiency, of $6,078,267.43. + +The Postmaster-General, like his predecessor, is convinced that a change in +the basis of adjusting the salaries of postmasters of the fourth class is +necessary for the good of the service as well as for the interests of the +Government, and urgently recommends that the compensation of the class of +postmasters above mentioned be based upon the business of their respective +offices, as ascertained from the sworn returns to the Auditor of stamps +canceled. + +A few postmasters in the Southern States have expressed great apprehension +of their personal safety on account of their connection with the postal +service, and have specially requested that their reports of apprehended +danger should not be made public lest it should result in the loss of their +lives. But no positive testimony of interference has been submitted, except +in the case of a mail messenger at Spartanburg, in South Carolina, who +reported that he had been violently driven away while in charge of the +mails on account of his political affiliations. An assistant superintendent +of the Railway Mail Service investigated this case and reported that the +messenger had disappeared from his post, leaving his work to be performed +by a substitute. The Postmaster-General thinks this case is sufficiently +suggestive to justify him in recommending that a more severe punishment +should be provided for the offense of assaulting any person in charge of +the mails or of retarding or otherwise obstructing them by threats of +personal injury. + +"A very gratifying result is presented in the fact that the deficiency of +this Department during the last fiscal year was reduced to $4,081,790.18, +as against $6,169,938.88 of the preceding year. The difference can be +traced to the large increase in its ordinary receipts (which greatly exceed +the estimates therefor) and a slight decrease in its expenditures." + +The ordinary receipts of the Post-Office Department for the past seven +fiscal years have increased at an average of over 8 per cent per annum, +while the increase of expenditures for the same period has been but about +5.50 per cent per annum, and the decrease of deficiency in the revenues has +been at the rate of nearly 2 per cent per annum. + +The report of the Commissioner of Agriculture accompanying this message +will be found one of great interest, marking, as it does, the great +progress of the last century in the variety of products of the soil; +increased knowledge and skill in the labor of producing, saving, and +manipulating the same to prepare them for the use of man; in the +improvements in machinery to aid the agriculturist in his labors, and in a +knowledge of those scientific subjects necessary to a thorough system of +economy in agricultural production, namely, chemistry, botany, entomology, +etc. A study of this report by those interested in agriculture and deriving +their support from it will find it of value in pointing out those articles +which are raised in greater quantity than the needs of the world require, +and must sell, therefore, for less than the cost of production, and those +which command a profit over cost of production because there is not an +overproduction. + +I call special attention to the need of the Department for a new gallery +for the reception of the exhibits returned from the Centennial Exhibition, +including the exhibits donated by very many foreign nations, and to the +recommendations of the Commissioner of Agriculture generally. + +The reports of the District Commissioners and the board of health are just +received--too late to read them and to make recommendations thereon--and +are herewith submitted. + +The international exhibition held in Philadelphia this year, in +commemoration of the one hundredth anniversary of American independence, +has proven a great success, and will, no doubt, be of enduring advantage to +the country. It has shown the great progress in the arts, sciences, and +mechanical skill made in a single century, and demonstrated that we are but +little behind older nations in any one branch, while in some we scarcely +have a rival. It has served, too, not only to bring peoples and products of +skill and labor from all parts of the world together, but in bringing +together people from all sections of our own country, which must prove a +great benefit in the information imparted and pride of country engendered. + +It has been suggested by scientists interested in and connected with the +Smithsonian Institution, in a communication herewith, that the Government +exhibit be removed to the capital and a suitable building be erected or +purchased for its accommodation as a permanent exhibit. I earnestly +recommend this; and believing that Congress would second this view, I +directed that all Government exhibits at the Centennial Exhibition should +remain where they are, except such as might be injured by remaining in a +building not intended as a protection in inclement weather, or such as may +be wanted by the Department furnishing them, until the question of +permanent exhibition is acted on. + +Although the moneys appropriated by Congress to enable the participation of +the several Executive Departments in the International Exhibition of 1876 +were not sufficient to carry out the undertaking to the full extent at +first contemplated, it gives me pleasure to refer to the very efficient and +creditable manner in which the board appointed from these several +Departments to provide an exhibition on the part of the Government have +discharged their duties with the funds placed at their command. Without a +precedent to guide them in the preparation of such a display, the success +of their labors was amply attested by the sustained attention which the +contents of the Government building attracted during the period of the +exhibition from both foreign and native visitors. + +I am strongly impressed with the value of the collection made by the +Government for the purposes of the exhibition, illustrating, as it does, +the mineral resources of the country, the statistical and practical +evidences of our growth as a nation, and the uses of the mechanical arts +and the applications of applied science in the administration of the +affairs of Government. + +Many nations have voluntarily contributed their exhibits to the United +States to increase the interest in any permanent exhibition Congress may +provide for. For this act of generosity they should receive the thanks of +the people, and I respectfully suggest that a resolution of Congress to +that effect be adopted. + +The attention of Congress can not be too earnestly called to the necessity +of throwing some greater safeguard over the method of choosing and +declaring the election of a President. Under the present system there seems +to be no provided remedy for contesting the election in any one State. The +remedy is partially, no doubt, in the enlightenment of electors. The +compulsory support of the free school and the disfranchisement of all who +can not read and write the English language, after a fixed probation, would +meet my hearty approval. I would not make this apply, however, to those +already voters, but I would to all becoming so after the expiration of the +probation fixed upon. Foreigners coming to this country to become citizens, +who are educated in their own language, should acquire the requisite +knowledge of ours during the necessary residence to obtain naturalization. +If they did not take interest enough in our language to acquire sufficient +knowledge of it to enable them to study the institutions and laws of the +country intelligently, I would not confer upon them the right to make such +laws nor to select those who do. + +I append to this message, for convenient reference, a synopsis of +administrative events and of all recommendations to Congress made by me +during the last seven years. Time may show some of these recommendations +not to have been wisely conceived, but I believe the larger part will do no +discredit to the Administration. One of these recommendations met with the +united opposition of one political party in the Senate and with a strong +opposition from the other, namely, the treaty for the annexation of Santo +Domingo to the United States, to which I will specially refer, maintaining, +as I do, that if my views had been concurred in the country would be in a +more prosperous condition to-day, both politically and financially. + +Santo Domingo is fertile, and upon its soil may be grown just those +tropical products of which the United States use so much, and which are +produced or prepared for market now by slave labor almost exclusively, +namely, sugar, coffee, dyewoods, mahogany, tropical fruits, tobacco, etc. +About 75 per cent of the exports of Cuba are consumed in the United States. +A large percentage of the exports of Brazil also find the same market. +These are paid for almost exclusively in coin, legislation, particularly in +Cuba, being unfavorable to a mutual exchange of the products of each +country. Flour shipped from the Mississippi River to Havana can pass by the +very entrance to the city on its way to a port in Spain, there pay a duty +fixed upon articles to be reexported, transferred to a Spanish vessel and +brought back almost to the point of starting, paying a second duty, and +still leave a profit over what would be received by direct shipment. All +that is produced in Cuba could be produced in Santo Domingo. Being a part +of the United States, commerce between the island and mainland would be +free. There would be no export duties on her shipments nor import duties on +those coming here. There would be no import duties upon the supplies, +machinery, etc., going from the States. The effect that would have been +produced upon Cuban commerce, with these advantages to a rival, is +observable at a glance. The Cuban question would have been settled long ago +in favor of "free Cuba." Hundreds of American vessels would now be +advantageously used in transporting the valuable woods and other products +of the soil of the island to a market and in carrying supplies and +emigrants to it. The island is but sparsely settled, while it has an area +sufficient for the profitable employment of several millions of people. The +soil would have soon fallen into the hands of United States capitalists. +The products are so valuable in commerce that emigration there would have +been encouraged; the emancipated race of the South would have found there a +congenial home, where their civil rights would not be disputed and where +their labor would be so much sought after that the poorest among them could +have found the means to go. Thus in cases of great oppression and cruelty, +such as has been practiced upon them in many places within the last eleven +years, whole communities would have sought refuge in Santo Domingo. I do +not suppose the whole race would have gone, nor is it desirable that they +should go. Their labor is desirable--indispensable almost--where they now +are. But the possession of this territory would have left the negro "master +of the situation," by enabling him to demand his rights at home on pain of +finding them elsewhere. + +I do not present these views now as a recommendation for a renewal of the +subject of annexation, but I do refer to it to vindicate my previous action +in regard to it. + +With the present term of Congress my official life terminates. It is not +probable that public affairs will ever again receive attention from me +further than as a citizen of the Republic, always taking a deep interest in +the honor, integrity, and prosperity of the whole land. + +U. S. GRANT + + + + + + + + + + +End of Project Gutenberg's State of the Union Addresses, by Ulysses S. 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GRANT *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Ulysses S. Grant in this eBook: + December 6, 1869 + December 5, 1870 + December 4, 1871 + December 2, 1872 + December 1, 1873 + December 7, 1874 + December 7, 1875 + December 5, 1876 + + + +*** + +State of the Union Address +Ulysses S. Grant +December 6, 1869 + +To the Senate and House of Representatives: + +In coming before you for the first time as Chief Magistrate of this great +nation, it is with gratitude to the Giver of All Good for the many benefits +we enjoy. We are blessed with peace at home, and are without entangling +alliances abroad to forebode trouble; with a territory unsurpassed in +fertility, of an area equal to the abundant support of 500,000,000 people, +and abounding in every variety of useful mineral in quantity sufficient to +supply the world for generations; with exuberant crops; with a variety of +climate adapted to the production of every species of earth's riches and +suited to the habits, tastes, and requirements of every living thing; with +a population of 40,000,000 free people, all speaking one language; with +facilities for every mortal to acquire an education; with institutions +closing to none the avenues to fame or any blessing of fortune that may be +coveted; with freedom of the pulpit, the press, and the school; with a +revenue flowing into the National Treasury beyond the requirements of the +Government. Happily, harmony is being rapidly restored within our own +borders. Manufactures hitherto unknown in our country are springing up in +all sections, producing a degree of national independence unequaled by that +of any other power. + +These blessings and countless others are intrusted to your care and mine +for safe-keeping for the brief period of our tenure of office. In a short +time we must, each of us, return to the ranks of the people, who have +conferred upon us our honors, and account to them for our stewardship. I +earnestly desire that neither you nor I may be condemned by a free and +enlightened constituency nor by our own consciences. + +Emerging from a rebellion of gigantic magnitude, aided, as it was, by the +sympathies and assistance of nations with which we were at peace, eleven +States of the Union were, four years ago, left without legal State +governments. A national debt had been contracted; American commerce was +almost driven from the seas; the industry of one-half of the country had +been taken from the control of the capitalist and placed where all labor +rightfully belongs--in the keeping of the laborer. The work of restoring +State governments loyal to the Union, of protecting and fostering free +labor, and providing means for paying the interest on the public debt has +received ample attention from Congress. Although your efforts have not met +with the success in all particulars that might have been desired, yet on +the whole they have been more successful than could have been reasonably +anticipated. + +Seven States which passed ordinances of secession have been fully restored +to their places in the Union. The eighth (Georgia) held an election at +which she ratified her constitution, republican in form, elected a +governor, Members of Congress, a State legislature, and all other officers +required. The governor was duly installed, and the legislature met and +performed all the acts then required of them by the reconstruction acts of +Congress. Subsequently, however, in violation of the constitution which +they had just ratified (as since decided by the supreme court of the +State), they unseated the colored members of the legislature and admitted +to seats some members who are disqualified by the third clause of the +fourteenth amendment to the Constitution--an article which they themselves +had contributed to ratify. Under these circumstances I would submit to you +whether it would not be wise, without delay, to enact a law authorizing the +governor of Georgia to convene the members originally elected to the +legislature, requiring each member to take the oath prescribed by the +reconstruction acts, and none to be admitted who are ineligible under the +third clause of the fourteenth amendment. + +The freedmen, under the protection which they have received, are making +rapid progress in learning, and no complaints are heard of lack of industry +on their part where they receive fair remuneration for their labor. The +means provided for paying the interest on the public debt, with all other +expenses of Government, are more than ample. The loss of our commerce is +the only result of the late rebellion which has not received sufficient +attention from you. To this subject I call your earnest attention. I will +not now suggest plans by which this object may be effected, but will, if +necessary, make it the subject of a special message during the session of +Congress. + +At the March term Congress by joint resolution authorized the Executive to +order elections in the States of Virginia, Mississippi, and Texas, to +submit to them the constitutions which each had previously, in convention, +framed, and submit the constitutions, either entire or in separate parts, +to be voted upon, at the discretion of the Executive. Under this authority +elections were called. In Virginia the election took place on the 6th of +July, 1869. The governor and lieutenant-governor elected have been +installed. The legislature met and did all required by this resolution and +by all the reconstruction acts of Congress, and abstained from all doubtful +authority. I recommend that her Senators and Representatives be promptly +admitted to their seats, and that the State be fully restored to its place +in the family of States. Elections were called in Mississippi and Texas, to +commence on the 30th of November, 1869, and to last two days in Mississippi +and four days in Texas. The elections have taken place, but the result is +not known. It is to be hoped that the acts of the legislatures of these +States, when they meet, will be such as to receive your approval, and thus +close the work of reconstruction. + +Among the evils growing out of the rebellion, and not yet referred to, is +that of an irredeemable currency. It is an evil which I hope will receive +your most earnest attention. It is a duty, and one of the highest duties, +of Government to secure to the citizen a medium of exchange of fixed, +unvarying value. This implies a return to a specie basis, and no substitute +for it can be devised. It should be commenced now and reached at the +earliest practicable moment consistent with a fair regard to the interests +of the debtor class. Immediate resumption, if practicable, would not be +desirable. It would compel the debtor class to pay, beyond their contracts, +the premium on gold at the date of their purchase and would bring +bankruptcy and ruin to thousands. Fluctuation, however, in the paper value +of the measure of all values (gold) is detrimental to the interests of +trade. It makes the man of business an involuntary gambler, for in all +sales where future payment is to be made both parties speculate as to what +will be the value of the currency to be paid and received. I earnestly +recommend to you, then, such legislation as will insure a gradual return to +specie payments and put an immediate stop to fluctuations in the value of +currency. + +The methods to secure the former of these results are as numerous as are +the speculators on political economy. To secure the latter I see but one +way, and that is to authorize the Treasury to redeem its own paper, at a +fixed price, whenever presented, and to withhold from circulation all +currency so redeemed until sold again for gold. + +The vast resources of the nation, both developed and undeveloped, ought to +make our credit the best on earth. With a less burden of taxation than the +citizen has endured for six years past, the entire public debt could be +paid in ten years. But it is not desirable that the people should be taxed +to pay it in that time. Year by year the ability to pay increases in a +rapid ratio. But the burden of interest ought to be reduced as rapidly as +can be done without the violation of contract. The public debt is +represented in great part by bonds having from five to twenty and from ten +to forty years to run, bearing interest at the rate of 6 per cent and 5 per +cent, respectively. It is optional with the Government to pay these bonds +at any period after the expiration of the least time mentioned upon their +face. The time has already expired when a great part of them may be taken +up, and is rapidly approaching when all may be. It is believed that all +which are now due may be replaced by bonds bearing a rate of interest not +exceeding 4 1/2 per cent, and as rapidly as the remainder become due that +they may be replaced in the same way. To accomplish this it may be +necessary to authorize the interest to be paid at either of three or four +of the money centers of Europe, or by any assistant treasurer of the United +States, at the option of the holder of the bond. I suggest this subject for +the consideration of Congress, and also, simultaneously with this, the +propriety of redeeming our currency, as before suggested, at its market +value at the time the law goes into effect, increasing the rate at which +currency shall be bought and sold from day to day or week to week, at the +same rate of interest as Government pays upon its bonds. + +The subjects of tariff and internal taxation will necessarily receive your +attention. The revenues of the country are greater than the requirements, +and may with safety be reduced. But as the funding of the debt in a 4 or a +4 1/2 per cent loan would reduce annual current expenses largely, thus, +after funding, justifying a greater reduction of taxation than would be now +expedient, I suggest postponement of this question until the next meeting +of Congress. + +It may be advisable to modify taxation and tariff in instances where unjust +or burdensome discriminations are made by the present laws, but a general +revision of the laws regulating this subject I recommend the postponement +of for the present. I also suggest the renewal of the tax on incomes, but +at a reduced rate, say of 3 per cent, and this tax to expire in three +years. + +With the funding of the national debt, as here suggested, I feel safe in +saying that taxes and the revenue from imports may be reduced safely from +sixty to eighty millions per annum at once, and may be still further +reduced from year to year, as the resources of the country are developed. + +The report of the Secretary of the Treasury shows the receipts of the +Government for the fiscal year ending June 30, 1869, to be $370,943,747, +and the expenditures, including interest, bounties, etc., to be +$321,490,597. The estimates for the ensuing year are more favorable to the +Government, and will no doubt show a much larger decrease of the public +debt. + +The receipts in the Treasury beyond expenditures have exceeded the amount +necessary to place to the credit of the sinking fund, as provided by law. +To lock up the surplus in the Treasury and withhold it from circulation +would lead to such a contraction of the currency as to cripple trade and +seriously affect the prosperity of the country. Under these circumstances +the Secretary of the Treasury and myself heartily concurred in the +propriety of using all the surplus currency in the Treasury in the purchase +of Government bonds, thus reducing the interest-bearing indebtedness of the +country, and of submitting to Congress the question of the disposition to +be made of the bonds so purchased. The bonds now held by the Treasury +amount to about seventy-five millions, including those belonging to the +sinking fund. I recommend that the whole be placed to the credit of the +sinking fund. + +Your attention is respectfully invited to the recommendations of the +Secretary of the Treasury for the creation of the office of commissioner of +customs revenue; for the increase of salaries to certain classes of +officials; the substitution of increased national-bank circulation to +replace the outstanding 3 per cent certificates; and most especially to his +recommendation for the repeal of laws allowing shares of fines, penalties, +forfeitures, etc., to officers of the Government or to informers. + +The office of Commissioner of Internal Revenue is one of the most arduous +and responsible under the Government. It falls but little, if any, short of +a Cabinet position in its importance and responsibilities. I would ask for +it, therefore, such legislation as in your judgment will place the office +upon a footing of dignity commensurate with its importance and with the +character and qualifications of the class of men required to fill it +properly. + +As the United States is the freest of all nations, so, too, its people +sympathize with all people struggling for liberty and self-government; but +while so sympathizing it is due to our honor that we should abstain from +enforcing our views upon unwilling nations and from taking an interested +part, without invitation, in the quarrels between different nations or +between governments and their subjects. Our course should always be in +conformity with strict justice and law, international and local. Such has +been the policy of the Administration in dealing with these questions. For +more than a year a valuable province of Spain, and a near neighbor of ours, +in whom all our people can not but feel a deep interest, has been +struggling for independence and freedom. The people and Government of the +United States entertain the same warm feelings and sympathies for the +people of Cuba in their pending struggle that they manifested throughout +the previous struggles between Spain and her former colonies in behalf of +the latter. But the contest has at no time assumed the conditions which +amount to a war in the sense of international law, or which would show the +existence of a de facto political organization of the insurgents sufficient +to justify a recognition of belligerency. + +The principle is maintained, however, that this nation is its own judge +when to accord the rights of belligerency, either to a people struggling to +free themselves from a government they believe to be oppressive or to +independent nations at war with each other. + +The United States have no disposition to interfere with the existing +relations of Spain to her colonial possessions on this continent. They +believe that in due time Spain and other European powers will find their +interest in terminating those relations and establishing their present +dependencies as independent powers--members of the family of nations. These +dependencies are no longer regarded as subject to transfer from one +European power to another. When the present relation of colonies ceases, +they are to become independent powers, exercising the right of choice and +of self-control in the determination of their future condition and +relations with other powers. + +The United States, in order to put a stop to bloodshed in Cuba, and in the +interest of a neighboring people, proposed their good offices to bring the +existing contest to a termination. The offer, not being accepted by Spain +on a basis which we believed could be received by Cuba, was withdrawn. It +is hoped that the good offices of the United States may yet prove +advantageous for the settlement of this unhappy strife. Meanwhile a number +of illegal expeditions against Cuba have been broken up. It has been the +endeavor of the Administration to execute the neutrality laws in good +faith, no matter how unpleasant the task, made so by the sufferings we have +endured from lack of like good faith toward us by other nations. + +On the 26th of March last the United States schooner Lizzie Major was +arrested on the high seas by a Spanish frigate, and two passengers taken +from it and carried as prisoners to Cuba. Representations of these facts +were made to the Spanish Government as soon as official information of them +reached Washington. The two passengers were set at liberty, and the Spanish +Government assured the United States that the captain of the frigate in +making the capture had acted without law, that he had been reprimanded for +the irregularity of his conduct, and that the Spanish authorities in Cuba +would not sanction any act that could violate the rights or treat with +disrespect the sovereignty of this nation. + +The question of the seizure of the brig Mary Lowell at one of the Bahama +Islands by Spanish authorities is now the subject of correspondence between +this Government and those of Spain and Great Britain. + +The Captain-General of Cuba about May last issued a proclamation +authorizing search to be made of vessels on the high seas. Immediate +remonstrance was made against this, whereupon the Captain-General issued a +new proclamation limiting the right of search to vessels of the United +States so far as authorized under the treaty of 1795. This proclamation, +however, was immediately withdrawn. + +I have always felt that the most intimate relations should be cultivated +between the Republic of the United States and all independent nations on +this continent. It may be well worth considering whether new treaties +between us and them may not be profitably entered into, to secure more +intimate relations--friendly, commercial, and otherwise. + +The subject of an interoceanic canal to connect the Atlantic and Pacific +oceans through the Isthmus of Darien is one in which commerce is greatly +interested. Instructions have been given to our minister to the Republic of +the United States of Colombia to endeavor to obtain authority for a survey +by this Government, in order to determine the practicability of such an +undertaking, and a charter for the right of way to build, by private +enterprise, such a work, if the survey proves it to be practicable. + +In order to comply with the agreement of the United States as to a mixed +commission at Lima for the adjustment of claims, it became necessary to +send a commissioner and secretary to Lima in August last. No appropriation +having been made by Congress for this purpose, it is now asked that one be +made covering the past and future expenses of the commission. + +The good offices of the United States to bring about a peace between Spain +and the South American Republics with which she is at war having been +accepted by Spain, Peru, and Chile, a congress has been invited to be held +in Washington during the present winter. + +A grant has been given to Europeans of an exclusive right of transit over +the territory of Nicaragua, to which Costa Rico has given its assent, +which, it is alleged, conflicts with vested rights of citizens of the +United States. The Department of State has now this subject under +consideration. + +The minister of Peru having made representations that there was a state of +war between Peru and Spain, and that Spain was constructing, in and near +New York, thirty gunboats, which might be used by Spain in such a way as to +relieve the naval force at Cuba, so as to operate against Peru, orders were +given to prevent their departure. No further steps having been taken by the +representative of the Peruvian Government to prevent the departure of these +vessels, and I not feeling authorized to detain the property of a nation +with which we are at peace on a mere Executive order, the matter has been +referred to the courts to decide. + +The conduct of the war between the allies and the Republic of Paraguay has +made the intercourse with that country so difficult that it has been deemed +advisable to withdraw our representative from there. + +Toward the close of the last Administration a convention was signed at +London for the settlement of all outstanding claims between Great Britain +and the United States, which failed to receive the advice and consent of +the Senate to its ratification. The time and the circumstances attending +the negotiation of that treaty were unfavorable to its acceptance by the +people of the United States, and its provisions were wholly inadequate for +the settlement of the grave wrongs that bad been sustained by this +Government, as well as by its citizens. The injuries resulting to the +United States by reason of the course adopted by Great Britain during our +late civil war--in the increased rates of insurance; in the diminution of +exports and imports, and other obstructions to domestic industry and +production; in its effect upon the foreign commerce of the country; in the +decrease and transfer to Great Britain of our commercial marine; in the +prolongation of the war and the increased cost (both in treasure and in +lives) of its suppression could not be adjusted and satisfied as ordinary +commercial claims, which continually arise between commercial nations; and +yet the convention treated them simply as such ordinary claims, from which +they differ more widely in the gravity of their character than in the +magnitude of their amount, great even as is that difference. Not a word was +found in the treaty, and not an inference could be drawn from it, to remove +the sense of the unfriendliness of the course of Great Britain in our +struggle for existence, which had so deeply and universally impressed +itself upon the people of this country. + +Believing that a convention thus misconceived in its scope and inadequate +in its provisions would not have produced the hearty, cordial settlement of +pending questions, which alone is consistent with the relations which I +desire to have firmly established between the United States and Great +Britain, I regarded the action of the Senate in rejecting the treaty to +have been wisely taken in the interest of peace and as a necessary step in +the direction of a perfect and cordial friendship between the two +countries. A sensitive people, conscious of their power, are more at ease +under a great wrong wholly unatoned than under the restraint of a +settlement which satisfies neither their ideas of justice nor their grave +sense of the grievance they have sustained. The rejection of the treaty was +followed by a state of public feeling on both sides which I thought not +favorable to an immediate attempt at renewed negotiations. I accordingly so +instructed the minister of the United States to Great Britain, and found +that my views in this regard were shared by Her Majesty's ministers. I hope +that the time may soon arrive when the two Governments can approach the +solution of this momentous question with an appreciation of what is due to +the rights, dignity, and honor of each, and with the determination not only +to remove the causes of complaint in the past, but to lay the foundation of +a broad principle of public law which will prevent future differences and +tend to firm and continued peace and friendship. + +This is now the only grave question which the United States has with any +foreign nation. + +The question of renewing a treaty for reciprocal trade between the United +States and the British Provinces on this continent has not been favorably +considered by the Administration. The advantages of such a treaty would be +wholly in favor of the British producer. Except, possibly, a few engaged in +the trade between the two sections, no citizen of the United States would +be benefited by reciprocity. Our internal taxation would prove a protection +to the British producer almost equal to the protection which our +manufacturers now receive from the tariff. Some arrangement, however, for +the regulation of commercial intercourse between the United States and the +Dominion of Canada may be desirable. + +The commission for adjusting the claims of the "Hudsons Bay and Puget Sound +Agricultural Company" upon the United States has terminated its labors. The +award of $650,000 has been made and all rights and titles of the company on +the territory of the United States have been extinguished. Deeds for the +property of the company have been delivered. An appropriation by Congress +to meet this sum is asked. + +The commissioners for determining the northwestern land boundary between +the United States and the British possessions under the treaty of 1856 have +completed their labors, and the commission has been dissolved. + +In conformity with the recommendation of Congress, a proposition was early +made to the British Government to abolish the mixed courts created under +the treaty of April 7, 1862, for the suppression of the slave trade. The +subject is still under negotiation. + +It having come to my knowledge that a corporate company, organized under +British laws, proposed to land upon the shores of the United States and to +operate there a submarine cable, under a concession from His Majesty the +Emperor of the French of an exclusive right for twenty years of telegraphic +communication between the shores of France and the United States, with the +very objectionable feature of subjecting all messages conveyed thereby to +the scrutiny and control of the French Government, I caused the French and +British legations at Washington to be made acquainted with the probable +policy of Congress on this subject, as foreshadowed by the bill which +passed the Senate in March last. This drew from the representatives of the +company an agreement to accept as the basis of their operations the +provisions of that bill, or of such other enactment on the subject as might +be passed during the approaching session of Congress; also, to use their +influence to secure from the French Government a modification of their +concession, so as to permit the landing upon French soil of any cable +belonging to any company incorporated by the authority of the United States +or of any State in the Union, and, on their part, not to oppose the +establishment of any such cable. In consideration of this agreement I +directed the withdrawal of all opposition by the United States authorities +to the landing of the cable and to the working of it until the meeting of +Congress. I regret to say that there has been no modification made in the +company's concession, nor, so far as I can learn, have they attempted to +secure one. Their concession excludes the capital and the citizens of the +United States from competition upon the shores of France. I recommend +legislation to protect the rights of citizens of the United States, as well +as the dignity and sovereignty of the nation, against such an assumption. I +shall also endeavor to secure, by negotiation, an abandonment of the +principle of monopolies in ocean telegraphic cables. Copies of this +correspondence are herewith furnished. + +The unsettled political condition of other countries, less fortunate than +our own, sometimes induces their citizens to come to the United States for +the sole purpose of becoming naturalized. Having secured this, they return +to their native country and reside there, without disclosing their change +of allegiance. They accept official positions of trust or honor, which can +only be held by citizens of their native land; they journey under passports +describing them as such citizens; and it is only when civil discord, after +perhaps years of quiet, threatens their persons or their property, or when +their native state drafts them into its military service, that the fact of +their change of allegiance is made known. They reside permanently away from +the United States, they contribute nothing to its revenues, they avoid the +duties of its citizenship, and they only make themselves known by a claim +of protection. I have directed the diplomatic and consular officers of the +United States to scrutinize carefully all such claims for protection. The +citizen of the United States, whether native or adopted, who discharges his +duty to his country, is entitled to its complete protection. While I have a +voice in the direction of affairs I shall not consent to imperil this +sacred right by conferring it upon fictitious or fraudulent claimants. + +On the accession of the present Administration it was found that the +minister for North Germany had made propositions for the negotiation of a +convention for the protection of emigrant passengers, to which no response +had been given. It was concluded that to be effectual all the maritime +powers engaged in the trade should join in such a measure. Invitations have +been extended to the cabinets of London, Paris, Florence, Berlin, Brussels, +The Hague, Copenhagen, and Stockholm to empower their representatives at +Washington to simultaneously enter into negotiations and to conclude with +the United States conventions identical in form, making uniform regulations +as to the construction of the parts of vessels to be devoted to the use of +emigrant passengers, as to the quality and quantity of food, as to the +medical treatment of the sick, and as to the rules to be observed during +the voyage, in order to secure ventilation, to promote health, to prevent +intrusion, and to protect the females; and providing for the establishment +of tribunals in the several countries for enforcing such regulations by +summary process. + +Your attention is respectfully called to the law regulating the tariff on +Russian hemp, and to the question whether to fix the charges on Russian +hemp higher than they are fixed upon manila is not a violation of our +treaty with Russia placing her products upon the same footing with those of +the most favored nations. + +Our manufactures are increasing with wonderful rapidity under the +encouragement which they now receive. With the improvements in machinery +already effected, and still increasing, causing machinery to take the place +of skilled labor to a large extent, our imports of many articles must fall +off largely within a very few years. Fortunately, too, manufactures are not +confined to a few localities, as formerly, and it is to be hoped will +become more and more diffused, making the interest in them equal in all +sections. They give employment and support to hundreds of thousands of +people at home, and retain with us the means which otherwise would be +shipped abroad. The extension of railroads in Europe and the East is +bringing into competition with our agricultural products like products of +other countries. Self-interest, if not self-preservation, therefore +dictates caution against disturbing any industrial interest of the country. +It teaches us also the necessity of looking to other markets for the sale +of our surplus. Our neighbors south of us and China and Japan, should +receive our special attention. It will be the endeavor of the +Administration to cultivate such relations with all these nations as to +entitle us to their confidence and make it their interest, as well as ours, +to establish better commercial relations. + +Through the agency of a more enlightened policy than that heretofore +pursued toward China, largely due to the sagacity and efforts of one of our +own distinguished citizens, the world is about to commence largely +increased relations with that populous and hitherto exclusive nation. As +the United States have been the initiators in this new policy, so they +should be the most earnest in showing their good faith in making it a +success. In this connection I advise such legislation as will forever +preclude the enslavement of the Chinese upon our soil under the name of +coolies, and also prevent American vessels from engaging in the +transportation of coolies to any country tolerating the system. I also +recommend that the mission to China be raised to one of the first class. + +On my assuming the responsible duties of Chief Magistrate of the United +States it was with the conviction that three things were essential to its +peace, prosperity, and fullest development. First among these is strict +integrity in fulfilling all our obligations; second, to secure protection +to the person and property of the citizen of the United States in each and +every portion of our common country, wherever he may choose to move, +without reference to original nationality, religion, color, or politics, +demanding of him only obedience to the laws and proper respect for the +rights of others; third, union of all the States, with equal rights, +indestructible by any constitutional means. + +To secure the first of these, Congress has taken two essential steps: +First, in declaring by joint resolution that the public debt shall be paid, +principal and interest, in coin; and, second, by providing the means for +paying. Providing the means, however, could not secure the object desired +without a proper administration of the laws for the collection of the +revenues and an economical disbursement of them. To this subject the +Administration has most earnestly addressed itself, with results, I hope, +satisfactory to the country. There has been no hesitation in changing +officials in order to secure an efficient execution of the laws, sometimes, +too, when, in a mere party view, undesirable political results were likely +to follow; nor any hesitation in sustaining efficient officials against +remonstrances wholly political. + +It may be well to mention here the embarrassment possible to arise from +leaving on the statute books the so-called "tenure-of-office acts," and to +earnestly recommend their total repeal. It could not have been the +intention of the framers of the Constitution, when providing that +appointments made by the President should receive the consent of the +Senate, that the latter should have the power to retain in office persons +placed there by Federal appointment against the will of the President. The +law is inconsistent with a faithful and efficient administration of the +Government. What faith can an Executive put in officials forced upon him, +and those, too, whom he has suspended for reason? How will such officials +be likely to serve an Administration which they know does not trust them? + +For the second requisite to our growth and prosperity time and a firm but +humane administration of existing laws (amended from time to time as they +may prove ineffective or prove harsh and unnecessary) are probably all that +are required. + +The third can not be attained by special legislation, but must be regarded +as fixed by the Constitution itself and gradually acquiesced in by force of +public opinion. + +From the foundation of the Government to the present the management of the +original inhabitants of this continent--the Indians--has been a subject of +embarrassment and expense, and has been attended with continuous robberies, +murders, and wars. From my own experience upon the frontiers and in Indian +countries, I do not hold either legislation or the conduct of the whites +who come most in contact with the Indian blameless for these hostilities. +The past, however, can not be undone, and the question must be met as we +now find it. I have attempted a new policy toward these wards of the nation +(they can not be regarded in any other light than as wards), with fair +results so far as tried, and which I hope will be attended ultimately with +great success. The Society of Friends is well known as having succeeded in +living in peace with the Indians in the early settlement of Pennsylvania, +while their white neighbors of other sects in other sections were +constantly embroiled. They are also known for their opposition to all +strife, violence, and war, and are generally noted for their strict +integrity and fair dealings. These considerations induced me to give the +management of a few reservations of Indians to them and to throw the burden +of the selection of agents upon the society itself. The result has proven +most satisfactory. It will be found more fully set forth in the report of +the Commissioner of Indian Affairs. For superintendents and Indian agents +not on the reservations, officers of the Army were selected. The reasons +for this are numerous. Where Indian agents are sent, there, or near there, +troops must be sent also. The agent and the commander of troops are +independent of each other, and are subject to orders from different +Departments of the Government. The army officer holds a position for life; +the agent, one at the will of the President. The former is personally +interested in living in harmony with the Indian and in establishing a +permanent peace, to the end that some portion of his life may be spent +within the limits of civilized society; the latter has no such personal +interest. Another reason is an economic one; and still another, the hold +which the Government has upon a life officer to secure a faithful discharge +of duties in carrying out a given policy. + +The building of railroads, and the access thereby given to all the +agricultural and mineral regions of the country, is rapidly bringing +civilized settlements into contact with all the tribes of Indians. No +matter what ought to be the relations between such settlements and the +aborigines, the fact is they do not harmonize well, and one or the other +has to give way in the end. A system which looks to the extinction of a +race is too horrible for a nation to adopt without entailing upon itself +the wrath of all Christendom and engendering in the citizen a disregard for +human life and the rights of others, dangerous to society. I see no +substitute for such a system, except in placing all the Indians on large +reservations, as rapidly as it can be done, and giving them absolute +protection there. As soon as they are fitted for it they should be induced +to take their lands in severalty and to set up Territorial governments for +their own protection. For full details on this subject I call your special +attention to the reports of the Secretary of the Interior and the +Commissioner of Indian Affairs. + +The report of the Secretary of War shows the expenditures of the War +Department for the year ending June 30, 1869, to be $80,644,042, of which +$23,882,310 was disbursed in the payment of debts contracted during the +war, and is not chargeable to current army expenses. His estimate of +$34,531,031 for the expenses of the Army for the next fiscal year is as low +as it is believed can be relied on. The estimates of bureau officers have +been carefully scrutinized, and reduced wherever it has been deemed +practicable. If, however, the condition of the country should be such by +the beginning of the next fiscal year as to admit of a greater +concentration of troops, the appropriation asked for will not be expended. + +The appropriations estimated for river and harbor improvements and for +fortifications are submitted separately. Whatever amount Congress may deem +proper to appropriate for these purposes will be expended. + +The recommendation of the General of the Army that appropriations be made +for the forts at Boston. Portland, New York, Philadelphia, New Orleans, and +San Francisco, if for no other, is concurred in. I also ask your special +attention to the recommendation of the general commanding the Military +Division of the Pacific for the sale of the seal islands of St. Paul and +St. George, Alaska Territory, and suggest that it either be complied with +or that legislation be had for the protection of the seal fisheries from +which a revenue should be derived. + +The report of the Secretary of War contains a synopsis of the reports of +the heads of bureaus, of the commanders of military divisions, and of the +districts of Virginia, Mississippi, and Texas, and the report of the +General of the Army in full. The recommendations therein contained have +been well considered, and are submitted for your action. I, however, call +special attention to the recommendation of the Chief of Ordnance for the +sale of arsenals and lands no longer of use to the Government; also, to the +recommendation of the Secretary of War that the act of 3d March, 1869, +prohibiting promotions and appointments in the staff corps of the Army, be +repealed. The extent of country to be garrisoned and the number of military +posts to be occupied is the same with a reduced Army as with a large one. +The number of staff officers required is more dependent upon the latter +than the former condition. + +The report of the Secretary of the Navy accompanying this shows the +condition of the Navy when this Administration came into office and the +changes made since. Strenuous efforts have been made to place as many +vessels "in commission," or render them fit for service if required, as +possible, and to substitute the sail for steam while cruising, thus +materially reducing the expenses of the Navy and adding greatly to its +efficiency. Looking to our future, I recommend a liberal, though not +extravagant, policy toward this branch of the public service. + +The report of the Postmaster-General furnishes a clear and comprehensive +exhibit of the operations of the postal service and of the financial +condition of the Post-Office Department. The ordinary postal revenues for +the year ending the 30th of June, 1869, amounted to $18,344,510, and the +expenditures to $23,698,131, showing an excess of expenditures over +receipts of $5,353,620. The excess of expenditures over receipts for the +previous year amounted to $6,437,992. The increase of revenues for 1869 +over those of 1868 was $2,051,909, and the increase of expenditures was +$967,538. The increased revenue in 1869 exceeded the increased revenue in +1868 by $996,336, and the increased expenditure in 1869 was $2,527,570 less +than the increased expenditure in 1868, showing by comparison this +gratifying feature of improvement, that while the increase of expenditures +over the increase of receipts in 1868 was $2,439,535, the increase of +receipts over the increase of expenditures in 1869 was $1,084,371. + +Your attention is respectfully called to the recommendations made by the +Postmaster-General for authority to change the rate of compensation to the +main trunk railroad lines for their services in carrying the mails; for +having post-route maps executed; for reorganizing and increasing the +efficiency of the special-agency service; for increase of the mail service +on the Pacific, and for establishing mail service, under the flag of the +Union, on the Atlantic; and most especially do I call your attention to his +recommendation for the total abolition of the franking privilege. This is +an abuse from which no one receives a commensurate advantage; it reduces +the receipts for postal service from 25 to 30 per cent and largely +increases the service to be performed. The method by which postage should +be paid upon public matter is set forth fully in the report of the +Postmaster-General. + +The report of the Secretary of the Interior shows that the quantity of +public lands disposed of during the year ending the 30th of June, 1869, was +7,666,152 acres, exceeding that of the preceding year by 1,010,409 acres. +Of this amount 2,899,544 acres were sold for cash and 2,737,365 acres +entered under the homestead laws. The remainder was granted to aid in the +construction of works of internal improvement, approved to the States as +swamp land, and located with warrants and scrip. The cash receipts from all +sources were $4,472,886, exceeding those of the preceding year $2,840,140. + +During the last fiscal year 23,196 names were added to the pension rolls +and 4,876 dropped therefrom, leaving at its close 187,963. The amount paid +to pensioners, including the compensation of disbursing agents, was +$28,422,884, an increase of $4,411,902 on that of the previous year. The +munificence of Congress has been conspicuously manifested in its +legislation for the soldiers and sailors who suffered in the recent +struggle to maintain "that unity of government which makes us one people." +The additions to the pension rolls of each successive year since the +conclusion of hostilities result in a great degree from the repeated +amendments of the act of the 14th of July, 1862, which extended its +provisions to cases not falling within its original scope. The large outlay +which is thus occasioned is further increased by the more liberal allowance +bestowed since that date upon those who in the line of duty were wholly or +permanently disabled. Public opinion has given an emphatic sanction to +these measures of Congress, and it will be conceded that no part of our +public burden is more cheerfully borne than that which is imposed by this +branch of the service. It necessitates for the next fiscal year, in +addition to the amount justly chargeable to the naval pension fund, an +appropriation of $30,000,000. + +During the year ending the 30th of September, 1869, the Patent Office +issued 13,762 patents, and its receipts were $686,389, being $213,926 more +than the expenditures. + +Messages and Papers of the Presidents, Ulysses S. Grant, vol. 6, p.3995 + +I would respectfully call your attention to the recommendation of the +Secretary of the Interior for uniting the duties of supervising the +education of freedmen with the other duties devolving upon the Commissioner +of Education. + +If it is the desire of Congress to make the census which must be taken +during the year 1870 more complete and perfect than heretofore, I would +suggest early action upon any plan that may be agreed upon. As Congress at +the last session appointed a committee to take into consideration such +measures as might be deemed proper in reference to the census and report a +plan, I desist from saying more. + +I recommend to your favorable consideration the claims of the Agricultural +Bureau for liberal appropriations. In a country so diversified in climate +and soil as ours, and with a population so largely dependent upon +agriculture, the benefits that can be conferred by properly fostering this +Bureau are incalculable. + +I desire respectfully to call the attention of Congress to the inadequate +salaries of a number of the most important offices of the Government. In +this message I will not enumerate them, but will specify only the justices +of the Supreme Court. No change has been made in their salaries for fifteen +years. Within that time the labors of the court have largely increased and +the expenses of living have at least doubled. During the same time Congress +has twice found it necessary to increase largely the compensation of its +own members, and the duty which it owes to another department of the +Government deserves, and will undoubtedly receive, its due consideration. + +There are many subjects not alluded to in this message which might with +propriety be introduced, but I abstain, believing that your patriotism and +statesmanship will suggest the topics and the legislation most conducive to +the interests of the whole people. On my part I promise a rigid adherence +to the laws and their strict enforcement. U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 5, 1870 + +To the Senate and House of Representatives: + +A year of peace and general prosperity to this nation has passed since the +last assembling of Congress. We have, through a kind Providence, been +blessed with abundant crops, and have been spared from complications and +war with foreign nations. In our midst comparative harmony has been +restored. It is to be regretted, however, that a free exercise of the +elective franchise has by violence and intimidation been denied to citizens +in exceptional cases in several of the States lately in rebellion, and the +verdict of the people has thereby been reversed. The States of Virginia, +Mississippi, and Texas have been restored to representation in our national +councils. Georgia, the only State now without representation, may +confidently be expected to take her place there also at the beginning of +the new year, and then, let us hope, will be completed the work of +reconstruction. With an acquiescence on the part of the whole people in the +national obligation to pay the public debt created as the price of our +Union, the pensions to our disabled soldiers and sailors and their widows +and orphans, and in the changes to the Constitution which have been made +necessary by a great rebellion, there is no reason why we should not +advance in material prosperity and happiness as no other nation ever did +after so protracted and devastating a war. + +Soon after the existing war broke out in Europe the protection of the +United States minister in Paris was invoked in favor of North Germans +domiciled in French territory. Instructions were issued to grant the +protection. This has been followed by an extension of American protection +to citizens of Saxony, Hesse and Saxe-Coburg, Gotha, Colombia, Portugal, +Uruguay, the Dominican Republic, Ecuador, Chile, Paraguay, and Venezuela in +Paris. The charge was an onerous one, requiring constant and severe labor, +as well as the exercise of patience, prudence, and good judgment. It has +been performed to the entire satisfaction of this Government, and, as I am +officially informed, equally so to the satisfaction of the Government of +North Germany. + +As soon as I learned that a republic had been proclaimed at Paris and that +the people of France had acquiesced in the change, the minister of the +United States was directed by telegraph to recognize it and to tender my +congratulations and those of the people of the United States. The +reestablishment in France of a system of government disconnected with the +dynastic traditions of Europe appeared to be a proper subject for the +felicitations of Americans. Should the present struggle result in attaching +the hearts of the French to our simpler forms of representative government, +it will be a subject of still further satisfaction to our people. While we +make no effort to impose our institutions upon the inhabitants of other +countries, and while we adhere to our traditional neutrality in civil +contests elsewhere, we can not be indifferent to the spread of American +political ideas in a great and highly civilized country like France. + +We were asked by the new Government to use our good offices, jointly with +those of European powers, in the interests of peace. Answer was made that +the established policy and the true interests of the United States forbade +them to interfere in European questions jointly with European powers. I +ascertained, informally and unofficially, that the Government of North +Germany was not then disposed to listen to such representations from any +power, and though earnestly wishing to see the blessings of peace restored +to the belligerents, with all of whom the United States are on terms of +friendship, I declined on the part of this Government to take a step which +could only result in injury to our true interests without advancing the +object for which our intervention was invoked. Should the time come when +the action of the United States can hasten the return of peace by a single +hour, that action will be heartily taken. I deemed it prudent, in view of +the number of persons of German and French birth living in the United +States, to issue, soon after official notice of a state of war had been +received from both belligerents, a proclamation defining the duties of the +United States as a neutral and the obligations of persons residing within +their territory to observe their laws and the laws of nations. This +proclamation was followed by others, as circumstances seemed to call for +them. The people, thus acquainted in advance of their duties and +obligations, have assisted in preventing violations of the neutrality of +the United States. + +It is not understood that the condition of the insurrection in Cuba has +materially changed since the close of the last session of Congress. In an +early stage of the contest the authorities of Spain inaugurated a system of +arbitrary arrests, of close confinement, and of military trial and +execution of persons suspected of complicity with the insurgents, and of +summary embargo of their properties, and sequestration of their revenues by +executive warrant. Such proceedings, so far as they affected the persons or +property of citizens of the United States, were in violation of the +provisions of the treaty of 1795 between the United States and Spain. + +Representations of injuries resulting to several persons claiming to be +citizens of the United States by reason of such violations were made to the +Spanish Government. From April, 1869, to June last the Spanish minister at +Washington had been clothed with a limited power to aid in redressing such +wrongs. That power was found to be withdrawn, "in view," as it was said, +"of the favorable situation in which the island of Cuba" then "was," which, +however, did not lead to a revocation or suspension of the extraordinary +and arbitrary functions exercised by the executive power in Cuba, and we +were obliged to make our complaints at Madrid. In the negotiations thus +opened, and still pending there, the United States only claimed that for +the future the rights secured to their citizens by treaty should be +respected in Cuba, and that as to the past a joint tribunal should be +established in the United States with full jurisdiction over all such +claims. Before such an impartial tribunal each claimant would be required +to prove his case. On the other hand, Spain would be at liberty to traverse +every material fact, and thus complete equity would be done. A case which +at one time threatened seriously to affect the relations between the United +States and Spain has already been disposed of in this way. The claim of the +owners of the Colonel Lloyd Aspinwall for the illegal seizure and detention +of that vessel was referred to arbitration by mutual consent, and has +resulted in an award to the United States, for the owners, of the sum of +$19,702.50 in gold. Another and long-pending claim of like nature, that of +the whaleship Canada, has been disposed of by friendly arbitrament during +the present year. It was referred, by the joint consent of Brazil and the +United States, to the decision of Sir Edward Thornton, Her Britannic +Majesty's minister at Washington, who kindly undertook the laborious task +of examining the voluminous mass of correspondence and testimony submitted +by the two Governments, and awarded to the United States the sum of +$100,740.09 in gold, which has since been paid by the Imperial Government. +These recent examples show that the mode which the United States have +proposed to Spain for adjusting the pending claims is just and feasible, +and that it may be agreed to by either nation without dishonor. It is to be +hoped that this moderate demand may be acceded to by Spain without further +delay. Should the pending negotiations, unfortunately and unexpectedly, be +without result, it will then become my duty to communicate that fact to +Congress and invite its action on the subject. + +The long-deferred peace conference between Spain and the allied South +American Republics has been inaugurated in Washington under the auspices of +the United States. Pursuant to the recommendation contained in the +resolution of the House of Representatives of the 17th of December, 1866, +the executive department of the Government offered its friendly offices for +the promotion of peace and harmony between Spain and the allied Republics. +Hesitations and obstacles occurred to the acceptance of the offer. +Ultimately, however, a conference was arranged, and was opened in this city +on the 29th of October last, at which I authorized the Secretary of State +to preside. It was attended by the ministers of Spain, Peru, Chile, and +Ecuador. In consequence of the absence of a representative from Bolivia, +the conference was adjourned until the attendance of a plenipotentiary from +that Republic could be secured or other measures could be adopted toward +compassing its objects. + +The allied and other Republics of Spanish origin on this continent may see +in this fact a new proof of our sincere interest in their welfare, of our +desire to see them blessed with good governments, capable of maintaining +order and of preserving their respective territorial integrity, and of our +sincere wish to extend our own commercial and social relations with them. +The time is not probably far distant when, in the natural course of events, +the European political connection with this continent will cease. Our +policy should be shaped, in view of this probability, so as to ally the +commercial interests of the Spanish American States more closely to our +own, and thus give the United States all the preeminence and all the +advantage which Mr. Monroe, Mr. Adams, and Mr. Clay contemplated when they +proposed to join in the congress of Panama. + +During the last session of Congress a treaty for the annexation of the +Republic of San Domingo to the United States failed to receive the +requisite two-thirds vote of the Senate. I was thoroughly convinced then +that the best interests of this country, commercially and materially, +demanded its ratification. Time has only confirmed me in this view. I now +firmly believe that the moment it is known that the United States have +entirely abandoned the project of accepting as a part of its territory the +island of San Domingo a free port will be negotiated for by European +nations in the Bay of Samana. A large commercial city will spring up, to +which we will be tributary without receiving corresponding benefits, and +then will be seen the folly of our rejecting so great a prize. The +Government of San Domingo has voluntarily sought this annexation. It is a +weak power, numbering probably less than 120,000 souls, and yet possessing +one of the richest territories under the sun, capable of supporting a +population of 10,000,000 people in luxury. The people of San Domingo are +not capable of maintaining themselves in their present condition, and must +look for outside support. They yearn for the protection of our free +institutions and laws, our progress and civilization. Shall we refuse +them? + +The acquisition of San Domingo is desirable because of its geographical +position. It commands the entrance to the Caribbean Sea and the Isthmus +transit of commerce. It possesses the richest soil, best and most capacious +harbors, most salubrious climate, and the most valuable products of the +forests, mine, and soil of any of the West India Islands. Its possession by +us will in a few years build up a coastwise commerce of immense magnitude, +which will go far toward restoring to us our lost merchant marine. It will +give to us those articles which we consume so largely and do not produce, +thus equalizing our exports and imports. In case of foreign war it will +give us command of all the islands referred to, and thus prevent an enemy +from ever again possessing himself of rendezvous upon our very coast. At +present our coast trade between the States bordering on the Atlantic and +those bordering on the Gulf of Mexico is cut into by the Bahamas and the +Antilies. Twice we must, as it were, pass through foreign countries to get +by sea from Georgia to the west coast of Florida. + +San Domingo, with a stable government, under which her immense resources +can be developed, will give remunerative wages to tens of thousands of +laborers not now upon the island. This labor will take advantage of every +available means of transportation to abandon the adjacent islands and seek +the blessings of freedom and its sequence--each inhabitant receiving the +reward of his own labor. Porto Rico and Cuba will have to abolish slavery, +as a measure of self-preservation, to retain their laborers. + +San Domingo will become a large consumer of the products of Northern farms +and manufactories. The cheap rate at which her citizens can be furnished +with food, tools, and machinery will make it necessary that contiguous +islands should have the same advantages in order to compete in the +production of sugar, coffee, tobacco, tropical fruits, etc. This will open +to us a still wider market for our products. The production of our own +supply of these articles will cut off more than one hundred millions of our +annual imports, besides largely increasing our exports. With such a picture +it is easy to see how our large debt abroad is ultimately to be +extinguished. With a balance of trade against us (including interest on +bonds held by foreigners and money spent by our citizens traveling in +foreign lands) equal to the entire yield of the precious metals in this +country, it is not so easy to see how this result is to be otherwise +accomplished. + +The acquisition of San Domingo is an adherence to the "Monroe doctrine;" it +is a measure of national protection; it is asserting our just claim to a +controlling influence over the great commercial traffic soon to flow from +west to east by way of the Isthmus of Darien; it is to build up our +merchant marine; it is to furnish new markets for the products of our +farms, shops, and manufactories; it is to make slavery insupportable in +Cuba and Porto Rico at once, and ultimately so in Brazil; it is to settle +the unhappy condition of Cuba and end an exterminating conflict; it is to +provide honest means of paying our honest debts without overtaxing the +people; it is to furnish our citizens with the necessaries of everyday life +at cheaper rates than ever before; and it is, in fine, a rapid stride +toward that greatness which the intelligence, industry, and enterprise of +the citizens of the United States entitle this country to assume among +nations. + +In view of the importance of this question, I earnestly urge upon Congress +early action expressive of its views as to the best means of acquiring San +Domingo. My suggestion is that by joint resolution of the two Houses of +Congress the Executive be authorized to appoint a commission to negotiate a +treaty with the authorities of San Domingo for the acquisition of that +island, and that an appropriation be made to defray the expenses of such a +commission. The question may then be determined, either by the action of +the Senate upon the treaty or the joint action of the two Houses of +Congress upon a resolution of annexation, as in the case of the acquisition +of Texas. So convinced am I of the advantages to flow from the acquisition +of San Domingo, and of the great disadvantages--I might almost say +calamities--to flow from nonacquisition, that I believe the subject has +only to be investigated to be approved. + +It is to be regretted that our representations in regard to the injurious +effects, especially upon the revenue of the United States, of the policy of +the Mexican Government in exempting from impost duties a large tract of its +territory on our borders have not only been fruitless, but that it is even +proposed in that country to extend the limits within which the privilege +adverted to has hitherto been enjoyed. The expediency of taking into your +serious consideration proper measures for countervailing the policy +referred to will, it is presumed, engage your earnest attention. + +It is the obvious interest, especially of neighboring nations, to provide +against impunity to those who may have committed high crimes within their +borders and who may have sought refuge abroad. For this purpose extradition +treaties have been concluded with several of the Central American +Republics, and others are in progress. + +The sense of Congress is desired, as early as may be convenient, upon the +proceedings of the commission on claims against Venezuela, as communicated +in my messages of March 16, 1869, March 1, 1870, and March 31, 1870. It has +not been deemed advisable to distribute any of the money which has been +received from that Government until Congress shall have acted on the +subject. + +The massacres of French and Russian residents at Tien-Tsin, under +circumstances of great barbarity, was supposed by some to have been +premeditated, and to indicate a purpose among the populace to exterminate +foreigners in the Chinese Empire. The evidence fails to establish such a +supposition, but shows a complicity between the local authorities and the +mob. The Government at Peking, however, seems to have been disposed to +fulfill its treaty obligations so far as it was able to do so. +Unfortunately, the news of the war between the German States and France +reached China soon after the massacre. It would appear that the popular +mind became possessed with the idea that this contest, extending to Chinese +waters, would neutralize the Christian influence and power, and that the +time was coming when the superstitious masses might expel all foreigners +and restore mandarin influence. Anticipating trouble from this cause, I +invited France and North Germany to make an authorized suspension of +hostilities in the East (where they were temporarily suspended by act of +the commanders), and to act together for the future protection in China of +the lives and properties of Americans and Europeans. + +Since the adjournment of Congress the ratifications of the treaty with +Great Britain for abolishing the mixed courts for the suppression of the +slave trade have been exchanged. It is believed that the slave trade is now +confined to the eastern coast of Africa, whence the slaves are taken to +Arabian markets. + +The ratifications of the naturalization convention between Great Britain +and the United States have also been exchanged during the recess, and thus +a long-standing dispute between the two Governments has been settled in +accordance with the principles always contended for by the United States. + +In April last, while engaged in locating a military reservation near +Pembina, a corps of engineers discovered that the commonly received +boundary line between the United States and the British possessions at that +place is about 4,700 feet south of the true position of the forty-ninth +parallel, and that the line, when run on what is now supposed to be the +true position of that parallel, would leave the fort of the Hudsons Bay +Company at Pembina within the territory of the United States. This +information being communicated to the British Government, I was requested +to consent, and did consent, that the British occupation of the fort of the +Hudsons Bay Company should continue for the present. I deem it important, +however, that this part of the boundary line should be definitely fixed by +a joint commission of the two Governments, and I submit herewith estimates +of the expense of such a commission on the part of the United States and +recommend that an appropriation be made for that purpose. The land boundary +has already been fixed and marked from the summit of the Rocky Mountains to +the Georgian Bay. It should now be in like manner marked from the Lake of +the Woods to the summit of the Rocky Mountains. + +I regret to say that no conclusion has been reached for the adjustment of +the claims against Great Britain growing out of the course adopted by that +Government during the rebellion. The cabinet of London, so far as its views +have been expressed, does not appear to be willing to concede that Her +Majesty's Government was guilty of any negligence, or did or permitted any +act during the war by which the United States has just cause of complaint. +Our firm and unalterable convictions are directly the reverse. I therefore +recommend to Congress to authorize the appointment of a commission to take +proof of the amount and the ownership of these several claims, on notice to +the representative of Her Majesty at Washington, and that authority be +given for the settlement of these claims by the United States, so that the +Government shall have the ownership of the private claims, as well as the +responsible control of all the demands against Great Britain. It can not be +necessary to add that whenever Her Majesty's Government shall entertain a +desire for a full and friendly adjustment of these claims the United States +will enter upon their consideration with an earnest desire for a conclusion +consistent with the honor and dignity of both nations. + +The course pursued by the Canadian authorities toward the fishermen of the +United States during the past season has not been marked by a friendly +feeling. By the first article of the convention of 1818 between Great +Britain and the United States it was agreed that the inhabitants of the +United States should have forever, in common with British subjects, the +right of taking fish in certain waters therein defined. In the waters not +included in the limits named in the convention (within 3 miles of parts of +the British coast) it has been the custom for many years to give to +intruding fishermen of the United States a reasonable warning of their +violation of the technical rights of Great Britain. The Imperial Government +is understood to have delegated the whole or a share of its jurisdiction or +control of these inshore fishing grounds to the colonial authority known as +the Dominion of Canada, and this semi-independent but irresponsible agent +has exercised its delegated powers in an unfriendly way. Vessels have been +seized without notice or warning, in violation of the custom previously +prevailing, and have been taken into the colonial ports, their voyages +broken up, and the vessels condemned. There is reason to believe that this +unfriendly and vexatious treatment was designed to bear harshly upon the +hardy fishermen of the United States, with a view to political effect upon +this Government. The statutes of the Dominion of Canada assume a still +broader and more untenable jurisdiction over the vessels of the United +States. They authorize officers or persons to bring vessels hovering within +3 marine miles of any of the coasts, bays, creeks, or harbors of Canada +into port, to search the cargo, to examine the master on oath touching the +cargo and voyage, and to inflict upon him a heavy pecuniary penalty if true +answers are not given; and if such a vessel is found "preparing to fish" +within 3 marine miles of any of such coasts, bays, creeks, or harbors +without a license, or after the expiration of the period named in the last +license granted to it, they provide that the vessel, with her tackle, etc., +shall be forfeited. It is not known that any condemnations have been made +under this statute. Should the authorities of Canada attempt to enforce it, +it will become my duty to take such steps as may be necessary to protect +the rights of the citizens of the United States. + +It has been claimed by Her Majesty's officers that the fishing vessels of +the United States have no right to enter the open ports of the British +possessions in North America, except for the purposes of shelter and +repairing damages, of purchasing wood and obtaining water; that they have +no right to enter at the British custom-houses or to trade there except in +the purchase of wood and water, and that they must depart within +twenty-four hours after notice to leave. It is not known that any seizure +of a fishing vessel carrying the flag of the United States has been made +under this claim. So far as the claim is founded on an alleged construction +of he convention of 1818, it can not be acquiesced in by the United States. +It is hoped that it will not be insisted on by Her Majesty's Government. + +During the conferences which preceded the negotiation of the convention of +1818 the British commissioners proposed to expressly exclude the fishermen +of the United States from "the privilege of carrying on trade with any of +His Britannic Majesty's subjects residing within the limits assigned for +their use;" and also that it should not be "lawful for the vessels of the +United States engaged in said fishery to have on board any goods, wares, or +merchandise whatever, except such as may be necessary for the prosecution +of their voyages to and from the said fishing grounds: and any vessel of +the United States which shall contravene this regulation may be seized, +condemned, and confiscated, with her cargo." + +This proposition, which is identical with the construction now put upon the +language of the convention, was emphatically rejected by the American +commissioners, and thereupon was abandoned by the British +plenipotentiaries, and Article I, as it stands in the convention, was +substituted. + +If, however, it be said that this claim is founded on provincial or +colonial statutes, and not upon the convention, this Government can not but +regard them as unfriendly, and in contravention of the spirit, if not of +the letter, of the treaty, for the faithful execution of which the Imperial +Government is alone responsible. + +Anticipating that an attempt may possibly be made by the Canadian +authorities in the coming season to repeat their unneighborly acts toward +our fishermen, I recommend you to confer upon the Executive the power to +suspend by proclamation the operation of the laws authorizing the transit +of goods, wares, and merchandise in bond across the territory of the United +States to Canada, and, further, should such an extreme measure become +necessary, to suspend the operation of any laws whereby the vessels of the +Dominion of Canada are permitted to enter the waters of the United States. + +A like unfriendly disposition has been manifested on the part of Canada in +the maintenance of a claim of right to exclude the citizens of the United +States from the navigation of the St. Lawrence. This river constitutes a +natural outlet to the ocean for eight States, with an aggregate population +of about 17,600,000 inhabitants, and with an aggregate tonnage of 661,367 +tons upon the waters which discharge into it. The foreign commerce of our +ports on these waters is open to British competition, and the major part of +it is done in British bottoms. + +If the American seamen be excluded from this natural avenue to the ocean, +the monopoly of the direct commerce of the lake ports with the Atlantic +would be in foreign hands, their vessels on transatlantic voyages having an +access to our lake ports which would be denied to American vessels on +similar voyages. To state such a proposition is to refute its justice. + +During the Administration of Mr. John Quincy Adams Mr. Clay unanswerably +demonstrated the natural right of the citizens of the United States to the +navigation of this river, claiming that the act of the congress of Vienna +in opening the Rhine and other rivers to all nations showed the judgment of +European jurists and statesmen that the inhabitants of a country through +which a navigable river passes have a natural right to enjoy the navigation +of that river to and into the sea, even though passing through the +territories of another power. This right does not exclude the coequal right +of the sovereign possessing the territory through which the river debouches +into the sea to make such regulations relative to the police of the +navigation as may be reasonably necessary; but those regulations should be +framed in a liberal spirit of comity, and should not impose needless +burdens upon the commerce which has the right of transit. It has been found +in practice more advantageous to arrange these regulations by mutual +agreement. The United States are ready to make any reasonable arrangement +as to the police of the St. Lawrence which may be suggested by Great +Britain. + +If the claim made by Mr. Clay was just when the population of States +bordering on the shores of the Lakes was only 3,400,000, it now derives +greater force and equity from the increased population, wealth, production, +and tonnage of the States on the Canadian frontier. Since Mr. Clay advanced +his argument in behalf of our right the principle for which he contended +has been frequently, and by various nations, recognized by law or by +treaty, and has been extended to several other great rivers. By the treaty +concluded at Mayence in 1831 the Rhine was declared free from the point +where it is first navigable into the sea. By the convention between Spain +and Portugal concluded in 1835 the navigation of the Douro throughout its +whole extent was made free for the subjects of both Crowns. In 1853 the +Argentine Confederation by treaty threw open the free navigation of the +Parana and the Uruguay to the merchant vessels of all nations. In 1856 the +Crimean War was closed by a treaty which provided for the free navigation +of the Danube. In 1858 Bolivia by treaty declared that it regarded the +rivers Amazon and La Plata, in accordance with fixed principles of national +law, as highways or channels opened by nature for the commerce of all +nations. In 1859 the Paraguay was made free by treaty, and in December, +1866, the Emperor of Brazil by imperial decree declared the Amazon to be +open to the frontier of Brazil to the merchant ships of all nations. The +greatest living British authority on this subject, while asserting the +abstract right of the British claim, says: It seems difficult to deny that +Great Britain may ground her refusal upon strict law, but it is equally +difficult to deny, first, that in so doing she exercises harshly an extreme +and hard law; secondly, that her conduct with respect to the navigation of +the St. Lawrence is in glaring and discreditable inconsistency with her +conduct with respect to the navigation of the Mississippi. On the ground +that she possessed a small domain in which the Mississippi took its rise, +she insisted on the right to navigate the entire volume of its waters. On +the ground that she possesses both banks of the St. Lawrence, where it +disembogues itself into the sea, she denies to the United States the right +of navigation, though about one-half of the waters of Lakes Ontario. Erie, +Huron, and Superior, and the whole of Lake Michigan, through which the +river flows, are the property of the United States. The whole nation is +interested in securing cheap transportation from the agricultural States of +the West to the Atlantic Seaboard. To the citizens of those States it +secures a greater return for their labor; to the inhabitants of the +seaboard it affords cheaper food; to the nation, an increase in the annual +surplus of wealth. It is hoped that the Government of Great Britain will +see the justice of abandoning the narrow and inconsistent claim to which +her Canadian Provinces have urged her adherence. + +Our depressed commerce is a subject to which I called your special +attention at the last session, and suggested that we will in the future +have to look more to the countries south of us, and to China and Japan, for +its revival. Our representatives to all these Governments have exerted +their influence to encourage trade between the United States and the +countries to which they are accredited. But the fact exists that the +carrying is done almost entirely in foreign bottoms, and while this state +of affairs exists we can not control our due share of the commerce of the +world; that between the Pacific States and China and Japan is about all the +carrying trade now conducted in American vessels. I would recommend a +liberal policy toward that line of American steamers--one that will insure +its success, and even increased usefulness. + +The cost of building iron vessels, the only ones that can compete with +foreign ships in the carrying trade, is so much greater in the United +States than in foreign countries that without some assistance from the +Government they can not be successfully built here. There will be several +propositions laid before Congress in the course of the present session +looking to a remedy for this evil. Even if it should be at some cost to the +National Treasury, I hope such encouragement will be given as will secure +American shipping on the high seas and American shipbuilding at home. + +The condition of the archives at the Department of State calls for the +early action of Congress. The building now rented by that Department is a +frail structure, at an inconvenient distance from the Executive Mansion and +from the other Departments, is ill adapted to the purpose for which it is +used, has not capacity to accommodate the archives, and is not fireproof. +Its remote situation, its slender construction, and the absence of a supply +of water in the neighborhood leave but little hope of safety for either the +building or its contents in case of the accident of a fire. Its destruction +would involve the loss of the rolls containing the original acts and +resolutions of Congress, of the historic records of the Revolution and of +the Confederation, of the whole series of diplomatic and consular archives +since the adoption of the Constitution, and of the many other valuable +records and papers left with that Department when it was the principal +depository of the governmental archives. I recommend an appropriation for +the construction of a building for the Department of State. + +I recommend to your consideration the propriety of transferring to the +Department of the Interior, to which they seem more appropriately to +belong, all powers and duties in relation to the Territories with which the +Department of State is now charged by law or usage; and from the Interior +Department to the War Department the Pension Bureau, so far as it regulates +the payment of soldiers' pensions. I would further recommend that the +payment of naval pensions be transferred to one of the bureaus of the Navy +Department. + +The estimates for the expenses of the Government for the next fiscal year +are $18,244,346.01 less than for the current one, but exceed the +appropriations for the present year for the same items $8,972,127.56. In +this estimate, however, is included $22,338,278.37 for public works +heretofore begun under Congressional provision, and of which only so much +is asked as Congress may choose to give. The appropriation for the same +works for the present fiscal year was $11,984,518.08. + +The average value of gold, as compared with national currency, for the +whole of the year 1869 was about 134, and for eleven months of 1870 the +same relative value has been about 115. The approach to a specie basis is +very gratifying, but the fact can not be denied that the instability of the +value of our currency is prejudicial to our prosperity, and tends to keep +up prices, to the detriment of trade. The evils of a depreciated and +fluctuating currency are so great that now, when the premium on gold has +fallen so much, it would seem that the time has arrived when by wise and +prudent legislation Congress should look to a policy which would place our +currency at par with gold at no distant day. + +The tax collected from the people has been reduced more than $80,000,000 +per annum. By steadiness in our present course there is no reason why in a +few short years the national tax gatherer may not disappear from the door +of the citizen almost entirely. With the revenue stamp dispensed by +postmasters in every community, a tax upon liquors of all sorts and tobacco +in all its forms, and by a wise adjustment of the tariff, which will put a +duty only upon those articles which we could dispense with, known as +luxuries, and on those which we use more of than we produce, revenue enough +may be raised after a few years of peace and consequent reduction of +indebtedness to fulfill all our obligations. A further reduction of +expenses, in addition to a reduction of interest account, may be relied on +to make this practicable. Revenue reform, if it means this, has my hearty +support. If it implies a collection of all the revenue for the support of +the Government, for the payment of principal and interest of the public +debt, pensions, etc., by directly taxing the people, then I am against +revenue reform, and confidently believe the people are with me. If it means +failure to provide the necessary means to defray all the expenses of +Government, and thereby repudiation of the public debt and pensions, then I +am still more opposed to such kind of revenue reform. Revenue reform has +not been defined by any of its advocates to my knowledge, but seems to be +accepted as something which is to supply every man's wants without any cost +or effort on his part. + +A true revenue reform can not be made in a day, but must be the work of +national legislation and of time. As soon as the revenue can be dispensed +with, all duty should be removed from coffee, tea and other articles of +universal use not produced by ourselves. The necessities of the country +compel us to collect revenue from our imports. An army of assessors and +collectors is not a pleasant sight to the citizen, but that of a tariff for +revenue is necessary. Such a tariff, so far as it acts as an encouragement +to home production, affords employment to labor at living wages, in +contrast to the pauper labor of the Old World, and also in the development +of home resources. + +Under the act of Congress of the 15th day of July, 1870, the Army has +gradually been reduced, so that on the 1st day of January, 1871, the number +of commissioned officers and men will not exceed the number contemplated by +that law. + +The War Department building is an old structure, not fireproof, and +entirely inadequate in dimensions to our present wants. Many thousands of +dollars are now paid annually for rent of private buildings to accommodate +the various bureaus of the Department. I recommend an appropriation for a +new War Department building, suited to the present and growing wants of the +nation. + +The report of the Secretary of War shows a very satisfactory reduction in +the expenses of the Army for the last fiscal year. For details you are +referred to his accompanying report. + +The expenses of the Navy for the whole of the last year--i.e.., from +December 1, 1869, the date of the last report--are less than $19,000,000, +or about $1,000,000 less than they were the previous year. The expenses +since the commencement of this fiscal year--i.e.., since July 1--show for +the five months a decrease of over $2,400,000 from those of the +corresponding months last year. The estimates for the current year were +$28,205,671.37. Those for next year are $20,683,317, with $955,100 +additional for necessary permanent improvements. These estimates are made +closely for the mere maintenance of the naval establishment as now is, +without much in the nature of permanent improvement. The appropriations +made for the last and current years were evidently intended by Congress, +and are sufficient only, to keep the Navy on its present footing by the +repairing and refitting of our old ships. + +This policy must, of course, gradually but surely destroy the Navy, and it +is in itself far from economical, as each year that it is pursued the +necessity for mere repairs in ships and navy-yards becomes more imperative +and more costly, and our current expenses are annually increased for the +mere repair of ships, many of which must soon become unsafe and useless. I +hope during the present session of Congress to be able to submit to it a +plan by which naval vessels can be built and repairs made with great saving +upon the present cost. + +It can hardly be wise statesmanship in a Government which represents a +country with over 5,000 miles of coast line on both oceans, exclusive of +Alaska, and containing 40,000,000 progressive people, with relations of +every nature with almost every foreign country, to rest with such +inadequate means of enforcing any foreign policy, either of protection or +redress. Separated by the ocean from the nations of the Eastern Continent, +our Navy is our only means of direct protection to our citizens abroad or +for the enforcement of any foreign policy. + +The accompanying report of the Postmaster-General shows a most satisfactory +working of that Department. With the adoption of the recommendations +contained therein, particularly those relating to a reform in the franking +privilege and the adoption of the "correspondence cards," a self-sustaining +postal system may speedily be looked for, and at no distant day a further +reduction of the rate of postage be attained. + +I recommend authorization by Congress to the Postmaster-General and +Attorney-General to issue all commissions to officials appointed through +their respective Departments. At present these commissions, where +appointments are Presidential, are issued by the State Department. The law +in all the Departments of Government, except those of the Post-Office and +of Justice, authorizes each to issue its own commissions. + +Always favoring practical reforms, I respectfully call your attention to +one abuse of long standing which I would like to see remedied by this +Congress. It is a reform in the civil service of the country. I would have +it go beyond the mere fixing of the tenure of office of clerks and +employees who do not require "the advice and consent of the Senate" to make +their appointments complete. I would have it govern, not the tenure, but +the manner of making all appointments. There is no duty which so much +embarrasses the Executive and heads of Departments as that of appointments, +nor is there any such arduous and thankless labor imposed on Senators and +Representatives as that of finding places for constituents. The present +system does not secure the best men, and often not even fit men, for public +place. The elevation and purification of the civil service of the +Government will be hailed with approval by the whole people of the United +States. + +Reform in the management of Indian affairs has received the special +attention of the Administration from its inauguration to the present day. +The experiment of making it a missionary work was tried with a few agencies +given to the denomination of Friends, and has been found to work most +advantageously. All agencies and superintendencies not so disposed of were +given to officers of the Army. The act of Congress reducing the Army +renders army officers ineligible for civil positions. Indian agencies being +civil offices, I determined to give all the agencies to such religious +denominations as had heretofore established missionaries among the Indians, +and perhaps to some other denominations who would undertake the work on the +same terms--i.e., as a missionary work. The societies selected are allowed +to name their own agents, subject to the approval of the Executive, and are +expected to watch over them and aid them as missionaries, to Christianize +and civilize the Indian, and to train him in the arts of peace. The +Government watches over the official acts of these agents, and requires of +them as strict an accountability as if they were appointed in any other +manner. I entertain the confident hope that the policy now pursued will in +a few years bring all the Indians upon reservations, where they will live +in houses, and have schoolhouses and churches, and will be pursuing +peaceful and self-sustaining avocations, and where they may be visited by +the law-abiding white man with the same impunity that he now visits the +civilized white settlements. I call your special attention to the report of +the Commissioner of Indian Affairs for full information on this subject. + +During the last fiscal year 8,095,413 acres of public land were disposed +of. Of this quantity 3,698,910.05 acres were taken under the homestead law +and 2,159,515.81 acres sold for cash. The remainder was located with +military warrants, college or Indian scrip, or applied in satisfaction of +grants to railroads or for other public uses. The entries under the +homestead law during the last year covered 961,545 acres more than those +during the preceding year. Surveys have been vigorously prosecuted to the +full extent of the means applicable to the purpose. The quantity of land in +market will amply supply the present demand. The claim of the settler under +the homestead or the preemption laws is not, however, limited to lands +subject to sale at private entry. Any unappropriated surveyed public land +may, to a limited amount, be acquired under the former laws if the party +entitled to enter under them will comply with the requirements they +prescribe in regard to the residence and cultivation. The actual settler's +preference right of purchase is even broader, and extends to lands which +were unsurveyed at the time of his settlement. His right was formerly +confined within much narrower limits, and at one period of our history was +conferred only by special statutes. They were enacted from time to time to +legalize what was then regarded as an unauthorized intrusion upon the +national domain. The opinion that the public lands should be regarded +chiefly as a source of revenue is no longer maintained. The rapid +settlement and successful cultivation of them are now justly considered of +more importance to our well-being than is the fund which the sale of them +would produce. The remarkable growth and prosperity of our new States and +Territories attest the wisdom of the legislation which invites the tiller +of the soil to secure a permanent home on terms within the reach of all. +The pioneer who incurs the dangers and privations of a frontier life, and +thus aids in laying the foundation of new commonwealths, renders a signal +service to his country, and is entitled to its special favor and +protection. These laws secure that object and largely promote the general +welfare. They should therefore be cherished as a permanent feature of our +land system. + +Good faith requires us to give full effect to existing grants. The +time-honored and beneficent policy of setting apart certain sections of +public land for educational purposes in the new States should be continued. +When ample provision shall have been made for these objects, I submit as a +question worthy of serious consideration whether the residue of our +national domain should not be wholly disposed of under the provisions the +homestead and preemption laws. + +In addition to the swamp and overflowed lands granted to the States in +which they are situated, the lands taken under the agricultural-college +acts and for internal-improvement purposes under the act of September, +1841, and the acts supplemental thereto, there had been conveyed up to the +close of the last fiscal year, by patent or other equivalent title, to +States and corporations 27,836,257.63 acres for railways, canals, and wagon +roads. It is estimated that an additional quantity of 174,735,523 acres is +still due under grants for like uses. The policy of thus aiding the States +in building works of internal improvement was inaugurated more than forty +years since in the grants to Indiana and Illinois, to aid those States in +opening canals to connect the waters of the Wabash with those of Lake Erie +and the waters of the Illinois with those of Lake Michigan. It was +followed, with some modifications, in the grant to Illinois of alternate +sections of public land within certain limits of the Illinois Central +Railway. Fourteen States and sundry corporations have received similar +subsidies in connection with railways completed or in process of +construction. As the reserved sections are rated at the double minimum, the +sale of them at the enhanced price has thus in many instances indemnified +the Treasury for the granted lands. The construction of some of these +thoroughfares has undoubtedly given a vigorous impulse to the development +of our resources and the settlement of the more distant portions of the +country. It may, however, be well insisted that much of our legislation in +this regard has been characterized by indiscriminate and profuse +liberality. The United States should not loan their credit in aid of any +enterprise undertaken by States or corporations, nor grant lands in any +instance, unless the projected work is of acknowledged national importance. +I am strongly inclined to the opinion that it is inexpedient and +unnecessary to bestow subsidies of either description; but should Congress +determine otherwise I earnestly recommend that the right of settlers and of +the public be more effectually secured and protected by appropriate +legislation. + +During the year ending September 30, 1870, there were filed in the Patent +Office 19,411 applications for patents, 3,374 caveats, and 160 applications +for the extension of patents. Thirteen thousand six hundred and twenty-two +patents, including reissues and designs, were issued, 1,010 extended, and +1,089 allowed, but not issued by reason of the nonpayment of the final +fees. The receipts of the office during the year were $136,304.29 in excess +of its expenditures. + +The work of the Census Bureau has been energetically prosecuted. The +preliminary report, containing much information of special value and +interest, will be ready for delivery during the present session. The +remaining volumes will be completed with all the dispatch consistent with +perfect accuracy in arranging and classifying the returns. We shall thus at +no distant day be furnished with an authentic record of our condition and +resources. It will, I doubt not, attest the growing prosperity of the +country, although during the decade which has just closed it was so +severely tried by the great war waged to maintain its integrity and to +secure and perpetuate our free institutions. + +During the last fiscal year the sum paid to pensioners, including the cost +of disbursement, was $27,780,811.11, and 1,758 bounty-land warrants were +issued. At its close 198,686 names were on the pension rolls. + +The labors of the Pension Office have been directed to the severe scrutiny +of the evidence submitted in favor of new claims and to the discovery of +fictitious claims which have been heretofore allowed. The appropriation for +the employment of special agents for the investigation of frauds has been +judiciously used, and the results obtained have been of unquestionable +benefit to the service. + +The subjects of education and agriculture are of great interest to the +success of our republican institutions, happiness, and grandeur as a +nation. In the interest of one a bureau has been established in the +Interior Department--the Bureau of Education; and in the interest of the +other, a separate Department, that of Agriculture. I believe great general +good is to flow from the operations of both these Bureaus if properly +fostered. I can not commend to your careful consideration too highly the +reports of the Commissioners of Education and of Agriculture, nor urge too +strongly such liberal legislation as to secure their efficiency. + +In conclusion I would sum up the policy of the Administration to be a +thorough enforcement of every law; a faithful collection of every tax +provided for; economy in the disbursement of the same; a prompt payment of +every debt of the nation; a reduction of taxes as rapidly as the +requirements of the country will admit; reductions of taxation and tariff, +to be so arranged as to afford the greatest relief to the greatest number; +honest and fair dealings with all other peoples, to the end that war, with +all its blighting consequences, may be avoided, but without surrendering +any right or obligation due to us; a reform in the treatment of Indians and +in the whole civil service of the country; and, finally, in securing a +pure, untrammeled ballot, where every man entitled to cast a vote may do +so, just once at each election, without fear of molestation or proscription +on account of his political faith, nativity, of color. U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 4, 1871 + +To the Senate and House of Representatives: + +In addressing my third annual message to the law-making branch of the +Government it is gratifying to be able to state that during the past year +success has generally attended the effort to execute all laws found upon +the statute books. The policy has been not to inquire into the wisdom of +laws already enacted, but to learn their spirit and intent and to enforce +them accordingly. + +The past year has, under a wise Providence, been one of general prosperity +to the nation. It has, however, been attended with more than usual +chastisements in the loss of life and property by storm and fire. These +disasters have served to call forth the best elements of human nature in +our country and to develop a friendship for us on the part of foreign +nations which goes far toward alleviating the distresses occasioned by +these calamities. The benevolent, who have so generously shared their means +with the victims of these misfortunes, will reap their reward in the +consciousness of having performed a noble act and in receiving the grateful +thanks of men, women, and children whose sufferings they have relieved. + +The relations of the United States with foreign powers continue to be +friendly. The year has been an eventful one in witnessing two great +nations, speaking one language and having one lineage, settling by peaceful +arbitration disputes of long standing and liable at any time to bring those +nations into bloody and costly conflict. An example has thus been set +which, if successful in its final issue, may be followed by other civilized +nations, and finally be the means of returning to productive industry +millions of men now maintained to settle the disputes of nations by the +bayonet and the broadside. + +I transmit herewith a copy of the treaty alluded to, which has been +concluded since the adjournment of Congress with Her Britannic Majesty, and +a copy of the protocols of the conferences of the commissioners by whom it +was negotiated. This treaty provides methods for adjusting the questions +pending between the two nations. + +Various questions are to be adjusted by arbitration. I recommend Congress +at an early day to make the necessary provision for the tribunal at Geneva +and for the several commissioners on the part of the United States called +for by the treaty. + +His Majesty the King of Italy, the President of the Swiss Confederation, +and His Majesty the Emperor of Brazil have each consented, on the joint +request of the two powers, to name an arbiter for the tribunal at Geneva. I +have caused my thanks to be suitably expressed for the readiness with which +the joint request has been complied with, by the appointment of gentlemen +of eminence and learning to these important positions. + +His Majesty the Emperor of Germany has been pleased to comply with the +joint request of the two Governments, and has consented to act as the +arbitrator of the disputed water boundary between the United States and +Great Britain. + +The contracting parties in the treaty have undertaken to regard as between +themselves certain principles of public law, for which the United States +have contended from the commencement of their history. They have also +agreed to bring those principles to the knowledge of the other maritime +powers and to invite them to accede to them. Negotiations are going on as +to the form of the note by which the invitation is to be extended to the +other powers. + +I recommend the legislation necessary on the part of the United States to +bring into operation the articles of the treaty relating to the fisheries +and to the other matters touching the relations of the United States toward +the British North American possessions, to become operative so soon as the +proper legislation shall be had on the part of Great Britain and its +possessions. It is much to be desired that this legislation may become +operative before the fishermen of the United States begin to make their +arrangements for the coming season. + +I have addressed a communication, of which a copy is transmitted herewith, +to the governors of New York, Pennsylvania, Ohio, Indiana, Michigan, +Illinois, and Wisconsin, urging upon the governments of those States, +respectively, the necessary action on their part to carry into effect the +object of the article of the treaty which contemplates the use of the +canals, on either side, connected with the navigation of the lakes and +rivers forming the boundary, on terms of equality, by the inhabitants of +both countries. It is hoped that the importance of the object and the +benefits to flow therefrom will secure the speedy approval and legislative +sanction of the States concerned. + +I renew the recommendation for an appropriation for determining the true +position of the forty-ninth parallel of latitude where it forms the +boundary between the United States and the British North American +possessions, between the Lake of the Woods and the summit of the Rocky +Mountains. The early action of Congress on this recommendation would put it +in the power of the War Department to place a force in the field during the +next summer. + +The resumption of diplomatic relations between France and Germany has +enabled me to give directions for the withdrawal of the protection extended +to Germans in France by the diplomatic and consular representatives of the +United States in that country. It is just to add that the delicate duty of +this protection has been performed by the minister and the consul-general +at Paris, and the various consuls in France under the supervision of the +latter, with great kindness as well as with prudence and tact. Their course +has received the commendation of the German Government, and has wounded no +susceptibility of the French. + +The Government of the Emperor of Germany continues to manifest a friendly +feeling toward the United States, and a desire to harmonize with the +moderate and just policy which this Government maintains in its relations +with Asiatic powers, as well as with the South American Republics. I have +given assurances that the friendly feelings of that Government are fully +shared by the United States. + +The ratifications of the consular and naturalization conventions with the +Austro-Hungarian Empire have been exchanged. + +I have been officially informed of the annexation of the States of the +Church to the Kingdom of Italy, and the removal of the capital of that +Kingdom to Rome. In conformity with the established policy of the United +States, I have recognized this change. The ratifications of the new treaty +of commerce between the United States and Italy have been exchanged. The +two powers have agreed in this treaty that private property at sea shall be +exempt from capture in case of war between the two powers. The United +States have spared no opportunity of incorporating this rule into the +obligation of nations. + +The Forty-first Congress, at its third session, made an appropriation for +the organization of a mixed commission for adjudicating upon the claims of +citizens of the United States against Spain growing out of the insurrection +in Cuba. That commission has since been organized. I transmit herewith the +correspondence relating to its formation and its jurisdiction. It is to be +hoped that this commission will afford the claimants a complete remedy for +their injuries. + +It has been made the agreeable duty of the United States to preside over a +conference at Washington between the plenipotentiaries of Spain and the +allied South American Republics, which has resulted in an armistice, with +the reasonable assurance of a permanent peace. + +The intimate friendly relations which have so long existed between the +United States and Russia continue undisturbed. The visit of the third son +of the Emperor is a proof that there is no desire on the part of his +Government to diminish the cordiality of those relations. The hospitable +reception which has been given to the Grand Duke is a proof that on our +side we share the wishes of that Government. The inexcusable course of the +Russian minister at Washington rendered it necessary to ask his recall and +to decline to longer receive that functionary as a diplomatic +representative. It was impossible, with self-respect or with a just regard +to the dignity of the country, to permit Mr. Catacazy to continue to hold +intercourse with this Government after his personal abuse of Government +officials, and during his persistent interferences, through various means, +with the relations between the United States and other powers. In +accordance with my wishes, this Government has been relieved of further +intercourse with Mr. Catacazy, and the management of the affairs of the +imperial legation has passed into the hands of a gentleman entirely +unobjectionable. + +With Japan we continue to maintain intimate relations. The cabinet of the +Mikado has since the close of the last session of Congress selected +citizens of the United States to serve in offices of importance in several +departments of Government. I have reason to think that this selection is +due to an appreciation of the disinterestedness of the policy which the +United States have pursued toward Japan. It is our desire to continue to +maintain this disinterested and just policy with China as well as Japan. +The correspondence transmitted herewith shows that there is no disposition +on the part of this Government to swerve from its established course. + +Prompted by a desire to put an end to the barbarous treatment of our +shipwrecked sailors on the Korean coast, I instructed our minister at +Peking to endeavor to conclude a convention with Korea for securing the +safety and humane treatment of such mariners. + +Admiral Rodgers was instructed to accompany him with a sufficient force to +protect him in case of need. + +A small surveying party sent out, on reaching the coast was treacherously +attacked at a disadvantage. Ample opportunity was given for explanation and +apology for the insult. Neither came. A force was then landed. After an +arduous march over a rugged and difficult country, the forts from which the +outrages had been committed were reduced by a gallant assault and were +destroyed. Having thus punished the criminals, and having vindicated the +honor of the flag, the expedition returned, finding it impracticable under +the circumstances to conclude the desired convention. I respectfully refer +to the correspondence relating thereto, herewith submitted, and leave the +subject for such action as Congress may see fit to take. + +The Republic of Mexico has not yet repealed the very objectionable laws +establishing what is known as the "free zone" on the frontier of the United +States. It is hoped that this may yet be done, and also that more stringent +measures may be taken by that Republic for restraining lawless persons on +its frontiers. I hope that Mexico by its own action will soon relieve this +Government of the difficulties experienced from these causes. + +Our relations with the various Republics of Central and South America +continue, with one exception, to be cordial and friendly. + +I recommend some action by Congress regarding the overdue installments +under the award of the Venezuelan Claims Commission of 1866. The internal +dissensions of this Government present no justification for the absence of +effort to meet their solemn treaty obligations. + +The ratification of an extradition treaty with Nicaragua has been +exchanged. + +It is a subject for congratulation that the great Empire of Brazil has +taken the initiatory step toward the abolition of slavery. Our relations +with that Empire, always cordial, will naturally be made more so by this +act. It is not too much to hope that the Government of Brazil may hereafter +find it for its interest, as well as intrinsically right, to advance toward +entire emancipation more rapidly than the present act contemplates. + +The true prosperity and greatness of a nation is to be found in the +elevation and education of its laborers. + +It is a subject for regret that the reforms in this direction which were +voluntarily promised by the statesmen of Spain have not been carried out in +its West India colonies. The laws and regulations for the apparent +abolition of slavery in Cuba and Porto Rico leave most of the laborers in +bondage, with no hope of release until their lives become a burden to their +employers. + +I desire to direct your attention to the fact that citizens of the United +States, or persons claiming to be citizens of the United States, are large +holders in foreign lands of this species of property, forbidden by the +fundamental law of their alleged country. I recommend to Congress to +provide by stringent legislation a suitable remedy against the holding, +owning or dealing in slaves, or being interested in slave property, in +foreign lands, either as owners, hirers, or mortgagors, by citizens of the +United States. + +It is to be regretted that the disturbed condition of the island of Cuba +continues to be a source of annoyance and of anxiety. The existence of a +protracted struggle in such close proximity to our own territory, without +apparent prospect of an early termination, can not be other than an object +of concern to a people who, while abstaining from interference in the +affairs of other powers, naturally desire to see every country in the +undisturbed enjoyment of peace, liberty, and the blessings of free +institutions. + +Our naval commanders in Cuban waters have been instructed, in case it +should become necessary, to spare no effort to protect the lives and +property of bona fide American citizens and to maintain the dignity of the +flag. + +It is hoped that all pending questions with Spain growing out of the +affairs in Cuba may be adjusted in the spirit of peace and conciliation +which has hitherto guided the two powers in their treatment of such +questions. + +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, I earnestly recommend that an appropriation be made to +support at least four American youths in each of those countries, to serve +as a part of the official family of our ministers there. Our +representatives would not even then be placed upon an equality with the +representatives of Great Britain and of some other powers. As now situated, +our representatives in Japan and China have to depend for interpreters and +translators upon natives of those countries who know our language +imperfectly, or procure for the occasion the services of employees in +foreign business houses or the interpreters to other foreign ministers. + +I would also recommend liberal measures for the purpose of supporting the +American lines of steamers now plying between San Francisco and Japan and +China, and the Australian line--almost our only remaining lines of ocean +steamers--and of increasing their services. + +The national debt has been reduced to the extent of $86,057, 126.80 during +the year, and by the negotiation of national bonds at a lower rate of +interest the interest on the public debt has been so far diminished that +now the sum to be raised for the interest account is nearly $17,000,000 +less than on the 1st of March, 1869. It was highly desirable that this +rapid diminution should take place, both to strengthen the credit of the +country and to convince its citizens of their entire ability to meet every +dollar of liability without bankrupting them. But in view of the +accomplishment of these desirable ends: of the rapid development of the +resources of the country; its increasing ability to meet large demands, and +the amount already paid, it is not desirable that the present resources of +the country should continue to be taxed in order to continue this rapid +payment. I therefore recommend a modification of both the tariff and +internal-tax law. I recommend that all taxes from internal sources be +abolished, except those collected from spirituous, vinous, and malt +liquors, tobacco in its various forms, and from stamps. + +In readjusting the tariff I suggest that a careful estimate be made of the +amount of surplus revenue collected under the present laws, after providing +for the current expenses of the Government, the interest count, and a +sinking fund, and that this surplus be reduced in such a manner as to +afford the greatest relief to the greatest number. There are many articles +not produced at home, but which enter largely into general consumption +through articles which are manufactured at home, such as medicines +compounded, etc., etc., from which very little revenue is derived, but +which enter into general use. All such articles I recommend to be placed on +the "free list." Should a further reduction prove advisable, I would then +recommend that it be made upon those articles which can best bear it +without disturbing home production or reducing the wages of American +labor. + +I have not entered into figures, because to do so would be to repeat what +will be laid before you in the report of the Secretary of the Treasury. The +present laws for collecting revenue pay collectors of customs small +salaries, but provide for moieties (shares in all seizures), which, at +principal ports of entry particularly, raise the compensation of those +officials to a large sum. It has always seemed to me as if this system must +at times work perniciously. It holds out an inducement to dishonest men, +should such get possession of those offices, to be lax in their scrutiny of +goods entered, to enable them finally to make large seizures. Your +attention is respectfully invited to this subject. + +Continued fluctuations in the value of gold, as compared with the national +currency, has a most damaging effect upon the increase and development of +the country, in keeping up prices of all articles necessary in everyday +life. It fosters a spirit of gambling, prejudicial alike to national morals +and the national finances. If the question can be met as to how to get a +fixed value to our currency, that value constantly and uniformly +approaching par with specie, a very desirable object will be gained. + +For the operations of the Army in the past year, the expense of maintaining +it, the estimate for the ensuing year, and for continuing seacoast and +other improvements conducted under the supervision of the War Department, I +refer you to the accompanying report of the Secretary of War. + +I call your attention to the provisions of the act of Congress approved +March 3, 1869, which discontinues promotions in the staff corps of the Army +until provided for by law. I recommend that the number of officers in each +grade in the staff corps be fixed, and that whenever the number in any one +grade falls below the number so fixed, that the vacancy may be filled by +promotion from the grade below. I also recommend that when the office of +chief of a corps becomes vacant the place may be filled by selection from +the corps in which the vacancy exists. + +The report of the Secretary of the Navy shows an improvement in the number +and efficiency of the naval force, without material increase in the expense +of supporting it. This is due to the policy which has been adopted, and is +being extended as fast as our material will admit, of using smaller vessels +as cruisers on the several stations. By this means we have been enabled to +occupy at once a larger extent of cruising grounds, to visit more +frequently the ports where the presence of our flag is desirable, and +generally to discharge more efficiently the appropriate duties of the Navy +in time of peace, without exceeding the number of men or the expenditure +authorized by law. + +During the past year the Navy has, in addition to its regular service, +supplied the men and officers for the vessels of the Coast Survey, and has +completed the surveys authorized by Congress of the isthmuses of Darien and +Tehuantepec, and, under like authority, has sent out an expedition, +completely furnished and equipped, to explore the unknown ocean of the +north. + +The suggestions of the report as to the necessity for increasing and +improving the materiel of the Navy, and the plan recommended for reducing +the personnel of the service to a peace standard, by the gradual abolition +of certain grades of officers, the reduction of others, and the employment +of some in the service of the commercial marine, are well considered and +deserve the thoughtful attention of Congress. + +I also recommend that all promotions in the Navy above the rank of captain +be by selection instead of by seniority. This course will secure in the +higher grades greater efficiency and hold out an incentive to young +officers to improve themselves in the knowledge of their profession. + +The present cost of maintaining the Navy, its cost compared with that of +the preceding year, and the estimates for the ensuing year are contained in +the accompanying report of the Secretary of the Navy. + +The enlarged receipts of the Post-Office Department, as shown by the +accompanying report of the Postmaster-General, exhibit a gratifying +increase in that branch of the public service. It is the index of the +growth of education and of the prosperity of the people, two elements +highly conducive to the vigor and stability of republics. With a vast +territory like ours, much of it sparsely populated, but all requiring the +services of the mail, it is not at present to be expected that this +Department can be made self-sustaining. But a gradual approach to this end +from year to year is confidently relied on, and the day is not far distant +when the Post-Office Department of the Government will prove a much greater +blessing to the whole people than it is now. + +The suggestions of the Postmaster-General for improvements in the +Department presided over by him are earnestly recommended to you, special +attention. Especially do I recommend favorable consideration of the plan +for uniting the telegraphic system of the United States with the postal +system. It is believed that by such a course the cost of telegraphing could +be much reduced, and the service as well, if not better, rendered. It would +secure the further advantage of extending the telegraph through portions of +the country where private enterprise will not construct it. Commerce, +trade, and, above all, the efforts to bring a people widely separated into +a community of interest are always benefited by a rapid intercommunication. +Education, the groundwork of republican institutions, is encouraged by +increasing the facilities to gather speedy news from all parts of the +country. The desire to reap the benefit of such improvements will stimulate +education. I refer you to the report of the Postmaster-General for full +details of the operations of last year and for comparative statements of +results with former years. + +There has been imposed upon the executive branch of the Government the +execution of the act of Congress approved April 20, 1871, and commonly +known as the Kuklux law, in a portion of the State of South Carolina. The +necessity of the course pursued will be demonstrated by the report of the +Committee to Investigate Southern Outrages. Under the provisions of the +above act I issued a proclamation calling the attention of the people of +the United States to the same, and declaring my reluctance to exercise any +of the extraordinary powers thereby conferred upon me, except in case of +imperative necessity, but making known my purpose to exercise such powers +whenever it should become necessary to do so for the purpose of securing to +all citizens of the United States the peaceful enjoyment of the rights +guaranteed to them by the Constitution and the laws. + +After the passage of this law information was received from time to time +that combinations of the character referred to in this law existed and were +powerful in many parts of the Southern States, particularly in certain +counties in the State of South Carolina. + +Careful investigation was made, and it was ascertained that in nine +counties of that State such combinations were active and powerful, +embracing a sufficient portion of the citizens to control the local +authority, and having, among other things, the object of depriving the +emancipated class of the substantial benefits of freedom and of preventing +the free political action of those citizens who did not sympathize with +their own views. Among their operations were frequent scourgings and +occasional assassinations, generally perpetrated at night by disguised +persons, the victims in almost all cases being citizens of different +political sentiments from their own or freed persons who had shown a +disposition to claim equal rights with other citizens. Thousands of +inoffensive and well disposed citizens were the sufferers by this lawless +violence, + +Thereupon, on the 12th of October, 1871, a proclamation was issued, in +terms of the law, calling upon the members of those combinations to +disperse within five days and to deliver to the marshal or military +officers of the United States all arms, ammunition, uniforms, disguises, +and other means and implements used by them for carrying out their unlawful +purposes. + +This warning not having been heeded, on the 17th of October another +proclamation was issued, suspending the privileges of the writ of habeas +corpus in nine counties in that State. + +Direction was given that within the counties so designated persons +supposed, upon creditable information, to be members of such unlawful +combinations should be arrested by the military forces of the United States +and delivered to the marshal, to be dealt with according to law. In two of +said counties, York and Spartanburg, many arrests have been made. At the +last account the number of persons thus arrested was 168. Several hundred, +whose criminality was ascertained to be of an inferior degree, were +released for the present. These have generally made confessions of their +guilt. + +Great caution has been exercised in making these arrests, and, +notwithstanding the large number, it is believed that no innocent person is +now in custody. The prisoners will be held for regular trial in the +judicial tribunals of the United States. + +As soon as it appeared that the authorities of the United States were about +to take vigorous measures to enforce the law, many persons absconded, and +there is good ground for supposing that all of such persons have violated +the law. A full report of what has been done under this law will be +submitted to Congress by the Attorney-General. + +In Utah there still remains a remnant of barbarism, repugnant to +civilization, to decency, and to the laws of the United States. Territorial +officers, however, have been found who are willing to perform their duty in +a spirit of equity and with a due sense of the necessity of sustaining the +majesty of the law. Neither polygamy nor any other violation of existing +statutes will be permitted within the territory of the United States. It is +not with the religion of the self-styled Saints that we are now dealing, +but with their practices. They will be protected in the worship of God +according to the dictates of their consciences, but they will not be +permitted to violate the laws under the cloak of religion. + +It may be advisable for Congress to consider what, in the execution of the +laws against polygamy, is to be the status of plural wives and their +offspring. The propriety of Congress passing an enabling act authorizing +the Territorial legislature of Utah to legitimize all children born prior +to a time fixed in the act might be justified by its humanity to these +innocent children. This is a suggestion only, and not a recommendation. + +The policy pursued toward the Indians has resulted favorably, so far as can +be judged from the limited time during which it has been in operation. +Through the exertions of the various societies of Christians to whom has +been intrusted the execution of the policy, and the board of commissioners +authorized by the law of April 10, 1869, many tribes of Indians have been +induced to settle upon reservations, to cultivate the soil, to perform +productive labor of various kinds, and to partially accept civilization. +They are being cared for in such a way, it is hoped, as to induce those +still pursuing their old habits of life to embrace the only opportunity +which is left them to avoid extermination. + +I recommend liberal appropriations to carry out the Indian peace policy, +not only because it is humane, Christian like, and economical, but because +it is right. + +I recommend to your favorable consideration also the policy of granting a +Territorial government to the Indians in the Indian Territory west of +Arkansas and Missouri and south of Kansas. In doing so every right +guaranteed to the Indian by treaty should be secured. Such a course might +in time be the means of collecting most of the Indians now between the +Missouri and the Pacific and south of the British possessions into one +Territory or one State. The Secretary of the Interior has treated upon this +subject at length, and I commend to you his suggestions. + +I renew my recommendation that the public lands be regarded as a heritage +to our children, to be disposed of only as required for occupation and to +actual settlers. Those already granted have been in great part disposed of +in such a way as to secure access to the balance by the hardy settler who +may wish to avail himself of them, but caution should be exercised even in +attaining so desirable an object. + +Educational interest may well be served by the grant of the proceeds of the +sale of public lands to settlers. I do not wish to be understood as +recommending in the least degree a curtailment of what is being done by the +General Government for the encouragement of education. + +The report of the Secretary of the Interior submitted with this will give +you all the information collected and prepared for publication in regard to +the census taken during the year 1870; the operations of the Bureau of +Education for the year; the Patent Office; the Pension Office; the Land +Office, and the Indian Bureau. + +The report of the Commissioner of Agriculture gives the operations of his +Department for the year. As agriculture is the groundwork of our +prosperity, too much importance can not be attached to the labors of this +Department. It is in the hands of an able head, with able assistants, all +zealously devoted to introducing into the agricultural productions of the +nation all useful products adapted to any of the various climates and soils +of our vast territory, and to giving all useful information as to the +method of cultivation, the plants, cereals, and other products adapted to +particular localities. Quietly but surely the Agricultural Bureau is +working a great national good, and if liberally supported the more widely +its influence will be extended and the less dependent we shall be upon the +products of foreign countries. + +The subject of compensation to the heads of bureaus and officials holding +positions of responsibility, and requiring ability and character to fill +properly, is one to which your attention is invited. But few of the +officials receive a compensation equal to the respectable support of a +family, while their duties are such as to involve millions of interest. In +private life services demand compensation equal to the services rendered; a +wise economy would dictate the same rule in the Government service. + +I have not given the estimates for the support of Government for the +ensuing year, nor the comparative statement between the expenditures for +the year just passed and the one just preceding, because all these figures +are contained in the accompanying reports or in those presented directly to +Congress. These estimates have my approval. + +More than six years having elapsed since the last hostile gun was fired +between the armies then arrayed against each other--one for the +perpetuation, the other for the destruction, of the Union--it may well be +considered whether it is not now time that the disabilities imposed by the +fourteenth amendment should be removed. That amendment does not exclude the +ballot, but only imposes the disability to hold offices upon certain +classes. When the purity of the ballot is secure, majorities are sure to +elect officers reflecting the views of the majority. I do not see the +advantage or propriety of excluding men from office merely because they +were before the rebellion of standing and character sufficient to be +elected to positions requiring them to take oaths to support the +Constitution, and admitting to eligibility those entertaining precisely the +same views, but of less standing in their communities. It may be said that +the former violated an oath, while the latter did not; the latter did not +have it in their power to do so. If they had taken this oath, it can not be +doubted they would have broken it as did the former class. If there are any +great criminals, distinguished above all others for the part they took in +opposition to the Government, they might, in the judgment of Congress, be +excluded from such an amnesty. + +This subject is submitted for your careful consideration. + +The condition of the Southern States is, unhappily, not such as all true +patriotic citizens would like to see. Social ostracism for opinion's sake, +personal violence or threats toward persons entertaining political views +opposed to those entertained by the majority of the old citizens, prevents +immigration and the flow of much-needed capital into the States lately in +rebellion. It will be a happy condition of the country when the old +citizens of these States will take an interest in public affairs, +promulgate ideas honestly entertained, vote for men representing their +views, and tolerate the same freedom of expression and ballot in those +entertaining different political convictions. + +Under the provisions of the act of Congress approved February 21, 1871, a +Territorial government was organized in the District of Columbia. Its +results have thus far fully realized the expectations of its advocates. +Under the direction of the Territorial officers, a system of improvements +has been inaugurated by means of which Washington is rapidly becoming a +city worthy of the nation's capital. The citizens of the District having +voluntarily taxed themselves to a large amount for the purpose of +contributing to the adornment of the seat of Government, I recommend +liberal appropriations on the part of Congress, in order that the +Government may bear its just share of the expense of carrying out a +judicious system of improvements. + +By the great fire in Chicago the most important of the Government buildings +in that city were consumed. Those burned had already become inadequate to +the wants of the Government in that growing city, and, looking to the near +future, were totally inadequate. I recommend, therefore, that an +appropriation be made immediately to purchase the remainder of the square +on which the burned buildings stood, provided it can be purchased at a fair +valuation, or provided that the legislature of Illinois will pass a law +authorizing its condemnation for Government purposes; and also an +appropriation of as much money as can properly be expended toward the +erection of new buildings during this fiscal year. + +The number of immigrants ignorant of our laws, habits, etc., coming into +our country annually has become so great and the impositions practiced upon +them so numerous and flagrant that I suggest Congressional action for their +protection. It seems to me a fair subject of legislation by Congress. I can +not now state as fully as I desire the nature of the complaints made by +immigrants of the treatment they receive, but will endeavor to do so during +the session of Congress, particularly if the subject should receive your +attention. + +It has been the aim of the Administration to enforce honesty and efficiency +in all public offices. Every public servant who has violated the trust +placed in him has been proceeded against with all the rigor of the law. If +bad men have secured places, it has been the fault of the system +established by law and custom for making appointments, or the fault of +those who recommend for Government positions persons not sufficiently well +known to them personally, or who give letters indorsing the characters of +office seekers without a proper sense of the grave responsibility which +such a course devolves upon them. A civil-service reform which can correct +this abuse is much desired. In mercantile pursuits the business man who +gives a letter of recommendation to a friend to enable him to obtain credit +from a stranger is regarded as morally responsible for the integrity of his +friend and his ability to meet his obligations. A reformatory law which +would enforce this principle against all indorsers of persons for public +place would insure great caution in making recommendations. A salutary +lesson has been taught the careless and the dishonest public servant in the +great number of prosecutions and convictions of the last two years. + +It is gratifying to notice the favorable change which is taking place +throughout the country in bringing to punishment those who have proven +recreant to the trusts confided to them and in elevating to public office +none but those who possess the confidence of the honest and the virtuous, +who, it will always be found, comprise the majority of the community in +which they live. + +In my message to Congress one year ago I urgently recommended a reform in +the civil service of the country. In conformity with that recommendation +Congress, in the ninth section of "An act making appropriations for sundry +civil expenses of the Government, and for other purposes," approved March +3, 1871, gave the necessary authority to the Executive to inaugurate a +civil-service reform, and placed upon him the responsibility of doing so. +Under the authority of said act I convened a board of gentlemen eminently +qualified for the work to devise rules and regulations to effect the needed +reform. Their labors are not yet complete, but it is believed that they +will succeed in devising a plan that can be adopted to the great relief of +the Executive, the heads of Departments, and members of Congress, and which +will redound to the true interest of the public service. At all events, the +experiment shall have a fair trial. + +I have thus hastily summed up the operations of the Government during the +last year, and made such suggestions as occur to me to be proper for your +consideration. I submit them with a confidence that your combined action +will be wise, statesmanlike, and in the best interests of the whole +country. U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 2, 1872 + +To the Senate and House of Representatives: + +In transmitting to you this my fourth annual message it is with +thankfulness to the Giver of All Good that as a nation we have been blessed +for the past year with peace at home, peace abroad, and a general +prosperity vouchsafed to but few peoples. + +With the exception of the recent devastating fire which swept from the +earth with a breath, as it were, millions of accumulated wealth in the city +of Boston, there has been no overshadowing calamity within the year to +record. It is gratifying to note how, like their fellow-citizens of the +city of Chicago under similar circumstances a year earlier, the citizens of +Boston are rallying under their misfortunes, and the prospect that their +energy and perseverance will overcome all obstacles and show the same +prosperity soon that they would had no disaster befallen them. Otherwise we +have been free from pestilence, war, and calamities, which often overtake +nations; and, as far as human judgment can penetrate the future, no cause +seems to exist to threaten our present peace. + +When Congress adjourned in June last, a question had been raised by Great +Britain, and was then pending, which for a time seriously imperiled the +settlement by friendly arbitration of the grave differences between this +Government and that of Her Britannic Majesty, which by the treaty of +Washington had been referred to the tribunal of arbitration which had met +at Geneva, in Switzerland. + +The arbitrators, however, disposed of the question which had jeoparded the +whole of the treaty and threatened to involve the two nations in most +unhappy relations toward each other in a manner entirely satisfactory to +this Government and in accordance with the views and the policy which it +had maintained. + +The tribunal, which had convened at Geneva in December, concluded its +laborious session on the 14th day of September last, on which day, having +availed itself of the discretionary power given to it by the treaty to +award a sum in gross, it made its decision, whereby it awarded the sum of +$15,500,000 in gold as the indemnity to be paid by Great Britain to the +United States for the satisfaction of all the claims referred to its +consideration. + +This decision happily disposes of a long-standing difference between the +two Governments, and, in connection with another award, made by the German +Emperor under a reference to him by the same treaty, leaves these two +Governments without a shadow upon the friendly relations which it is my +sincere hope may forever remain equally unclouded. + +The report of the agent of the United States appointed to attend the Geneva +tribunal, accompanied by the protocols of the proceedings of the +arbitrators, the arguments of the counsel of both Governments, the award of +the tribunal, and the opinions given by the several arbitrators, is +transmitted herewith. + +I have caused to be communicated to the heads of the three friendly powers +who complied with the joint request made to them under the treaty the +thanks of this Government for the appointment of arbitrators made by them +respectively, and also my thanks to the eminent personages named by them, +and my appreciation of the dignity, patience, impartiality, and great +ability with which they discharged their arduous and high functions. + +Her Majesty's Government has communicated to me the appreciation by Her +Majesty of the ability and indefatigable industry displayed by Mr. Adams, +the arbitrator named on the part of this Government during the protracted +inquiries and discussions of the tribunal. I cordially unite with Her +Majesty in this appreciation. + +It is due to the agent of the United States before the tribunal to record +my high appreciation of the marked ability, unwearied patience, and the +prudence and discretion with which he has conducted the very responsible +and delicate duties committed to him, as it is also due to the learned and +eminent counsel who attended the tribunal on the part of this Government to +express my sense of the talents and wisdom which they brought to bear in +the attainment of the result so happily reached. + +It will be the province of Congress to provide for the distribution among +those who may be entitled to it of their respective shares of the money to +be paid. Although the sum awarded is not payable until a year from the date +of the award, it is deemed advisable that no time be lost in making a +proper examination of the several cases in which indemnification may be +due. I consequently recommend the creation of a board of commissioners for +the purpose. + +By the thirty-fourth article of the treaty of Washington the respective +claims of the United States and of Great Britain' in their construction of +the treaty of the 15th of June, 1846, defining the boundary line between +their respective territories, were submitted to the arbitration and award +of His Majesty the Emperor of Germany, to decide which of those claims is +most in accordance with the true interpretation of the treaty of 1846. + +His Majesty the Emperor of Germany, having been pleased to undertake the +arbitration, has the earnest thanks of this Government and of the people of +the United States for the labor, pains, and care which he has devoted to +the consideration of this long-pending difference. I have caused an +expression of my thanks to be communicated to His Majesty. Mr. Bancroft, +the representative of this Government at Berlin, conducted the case and +prepared the statement on the part of the United States with the ability +that his past services justified the public in expecting at his hands. As a +member of the Cabinet at the date of the treaty which has given rise to the +discussion between the two Governments, as the minister to Great Britain +when the construction now pronounced unfounded was first advanced, and as +the agent and representative of the Government to present the case and to +receive the award, he has been associated with the question in all of its +phases, and in every stage has manifested a patriotic zeal and earnestness +in maintenance of the claim of the United States. He is entitled to much +credit for the success which has attended the submission. + +After a patient investigation of the case and of the statements of each +party, His Majesty the Emperor, on the 21st day of October last, signed his +award in writing, decreeing that the claim of the Government of the United +States, that the boundary line between the territories of Her Britannic +Majesty and the United States should be drawn through the Haro Channel, is +most in accordance with the true interpretation of the treaty concluded on +the 15th of June, 1846, between the Governments of Her Britannic Majesty +and of the United States. + +Copies of the "case" presented on behalf of each Government, and of the +"statement in reply" of each, and a translation of the award, are +transmitted herewith. + +This award confirms the United States in their claim to the important +archipelago of islands lying between the continent and Vancouvers Island, +which for more than twenty-six years (ever since the ratification of the +treaty) Great Britain has contested, and leaves us, for the first time in +the history of the United States as a nation, without a question of +disputed boundary between our territory and the possessions of Great +Britain on this continent. + +It is my grateful duty to acknowledge the prompt, spontaneous action of Her +Majesty's Government in giving effect to the award. In anticipation of any +request from this Government, and before the reception in the United States +of the award signed by the Emperor, Her Majesty had given instructions for +the removal of her troops which had been stationed there and for the +cessation of all exercise or claim of jurisdiction, so as to leave the +United States in the exclusive possession of the lately disputed territory. +I am gratified to be able to announce that the orders for the removal of +the troops have been executed, and that the military joint occupation of +San Juan has ceased. The islands are now in the exclusive possession of the +United States. + +It now becomes necessary to complete the survey and determination of that +portion of the boundary line (through the Haro Channel) upon which the +commission which determined the remaining part of the line were unable to +agree. I recommend the appointment of a commission to act jointly with one +which may be named by Her Majesty for that purpose. + +Experience of the difficulties attending the determination of our admitted +line of boundary, after the occupation of the territory and its settlement +by those owing allegiance to the respective Governments, points to the +importance of establishing, by natural objects or other monuments, the +actual line between the territory acquired by purchase from Russia and the +adjoining possessions of Her Britannic Majesty. The region is now so +sparsely occupied that no conflicting interests of individuals or of +jurisdiction are likely to interfere to the delay or embarrassment of the +actual location of the line. If deferred until population shall enter and +occupy the territory, some trivial contest of neighbors may again array the +two Governments in antagonism. I therefore recommend the appointment of a +commission, to act jointly with one that may be appointed on the part of +Great Britain, to determine the line between our Territory of Alaska and +the conterminous possessions of Great Britain. + +In my last annual message I recommended the legislation necessary on the +part of the United States to bring into operation the articles of the +treaty of Washington of May 8, 1871, relating to the fisheries and to other +matters touching the relations of the United States toward the British +North American possessions, to become operative so soon as the proper +legislation should be had on the part of Great Britain and its +possessions. + +That legislation on the part of Great Britain and its possessions had not +then been had, and during the session of Congress a question was raised +which for the time raised a doubt whether any action by Congress in the +direction indicated would become important. This question has since been +disposed of, and I have received notice that the Imperial Parliament and +the legislatures of the provincial governments have passed laws to carry +the provisions of the treaty on the matters referred to into operation. I +therefore recommend your early adoption of the legislation in the same +direction necessary on the part of this Government. + +The joint commission for determining the boundary line between the United +States and the British possessions between the Lake of the Woods and the +Rocky Mountains has organized and entered upon its work. It is desirable +that the force be increased, in order that the completion of the survey and +determination of the line may be the sooner attained. To this end I +recommend that a sufficient appropriation be made. + +With France, our earliest ally; Russia, the constant and steady friend of +the United States; Germany, with whose Government and people we have so +many causes of friendship and so many common sympathies, and the other +powers of Europe, our relations are maintained on the most friendly terms. + +Since my last annual message the exchange has been made of the +ratifications of a treaty with the Austro-Hungarian Empire relating to +naturalization; also of a treaty with the German Empire respecting consuls +and trade-marks; also of a treaty with Sweden and Norway relating to +naturalization; all of which treaties have been duly proclaimed. + +Congress at its last session having made an appropriation to defray the +expense of commissioners on the part of the United States to the +International Statistical Congress at St. Petersburg, the persons appointed +in that character proceeded to their destination and attended the sessions +of the congress. Their report shall in due season be laid before you. This +congress meets at intervals of about three years, and has held its sessions +in several of the countries of Europe. I submit to your consideration the +propriety of extending an invitation to the congress to hold its next +meeting in the United States. The Centennial Celebration to be held in 1876 +would afford an appropriate occasion for such meeting. + +Preparations are making for the international exposition to be held during +the next year in Vienna, on a scale of very great magnitude. The tendency +of these expositions is in the direction of advanced civilization, and of +the elevation of industry and of labor, and of the increase of human +happiness, as well as of greater intercourse and good will between nations. +As this exposition is to be the first which will have been held in eastern +Europe, it is believed that American inventors and manufacturers will be +ready to avail themselves of the opportunity for the presentation of their +productions if encouraged by proper aid and protection. + +At the last session of Congress authority was given for the appointment of +one or more agents to represent this Government at the exposition. The +authority thus given has been exercised, but, in the absence of any +appropriation, there is danger that the important benefits which the +occasion offers will in a large degree be lost to citizens of the United +States. I commend the subject strongly to your consideration, and recommend +that an adequate appropriation be made for the purpose. + +To further aid American exhibitors at the Vienna Exposition, I would +recommend, in addition to an appropriation of money, that the Secretary of +the Navy be authorized to fit up two naval vessels to transport between our +Atlantic cities and Trieste, or the most convenient port to Vienna, and +back, their articles for exhibition. + +Since your last session the President of the Mexican Republic, +distinguished by his high character and by his services to his country, has +died. His temporary successor has now been elected with great unanimity by +the people a proof of confidence on their part in his patriotism and wisdom +which it is believed will be confirmed by the results of his +administration. It is particularly desirable that nothing should be left +undone by the Government of either Republic to strengthen their relations +as neighbors and friends. + +It is much to be regretted that many lawless acts continue to disturb the +quiet of the settlements on the border between our territory and that of +Mexico, and that complaints of wrongs to American citizens in various parts +of the country are made. The revolutionary condition in which the +neighboring Republic has so long been involved has in some degree +contributed to this disturbance. It is to be hoped that with a more settled +rule of order through the Republic, which may be expected from the present +Government, the acts of which just complaint is made will cease. + +The proceedings of the commission under the convention with Mexico of the +4th of July, 1868, on the subject of claims, have, unfortunately, been +checked by an obstacle, for the removal of which measures have been taken +by the two Governments which it is believed will prove successful. + +The commissioners appointed, pursuant to the joint resolution of Congress +of the 7th of May last, to inquire into depredations on the Texan frontier +have diligently made investigations in that quarter. Their report upon the +subject will be communicated to you. Their researches were necessarily +incomplete, partly on account of the limited appropriation made by +Congress. Mexico, on the part of that Government, has appointed a similar +commission to investigate these outrages. It is not announced officially, +but the press of that country states that the fullest investigation is +desired, and that the cooperation of all parties concerned is invited to +secure that end. I therefore recommend that a special appropriation be made +at the earliest day practicable, to enable the commissioners on the part of +the United States to return to their labors without delay. + +It is with regret that I have again to announce a continuance of the +disturbed condition of the island of Cuba. No advance toward the +pacification of the discontented part of the population has been made. +While the insurrection has gained no advantages and exhibits no more of the +elements of power or of the prospects of ultimate success than were +exhibited a year ago, Spain, on the other hand, has not succeeded in its +repression, and the parties stand apparently in the same relative attitude +which they have occupied for a long time past. + +This contest has lasted now for more than four years. Were its scene at a +distance from our neighborhood, we might be indifferent to its result, +although humanity could not be unmoved by many of its incidents wherever +they might occur. It is, however, at our door. + +I can not doubt that the continued maintenance of slavery in Cuba is among +the strongest inducements to the continuance of this strife. A terrible +wrong is the natural cause of a terrible evil. The abolition of slavery and +the introduction of other reforms in the administration of government in +Cuba could not fail to advance the restoration of peace and order. It is +greatly to be hoped that the present liberal Government of Spain will +voluntarily adopt this view. + +The law of emancipation, which was passed more than two years since, has +remained unexecuted in the absence of regulations for its enforcement. It +was but a feeble step toward emancipation, but it was the recognition of +right, and was hailed as such, and exhibited Spain in harmony with +sentiments of humanity and of justice and in sympathy with the other powers +of the Christian and civilized world. + +Within the past few weeks the regulations for carrying out the law of +emancipation have been announced, giving evidence of the sincerity of +intention of the present Government to carry into effect the law of 1870. I +have not failed to urge the consideration of the wisdom, the policy, and +the justice of a more effective system for the abolition of the great evil +which oppresses a race and continues a bloody and destructive contest close +to our border, as well as the expediency and the justice of conceding +reforms of which the propriety is not questioned. + +Deeply impressed with the conviction that the continuance of slavery is one +of the most active causes of the continuance of the unhappy condition in +Cuba, I regret to believe that citizens of the United States, or those +claiming to be such, are large holders in Cuba of what is there claimed as +property, but which is forbidden and denounced by the laws of the United +States. They are thus, in defiance of the spirit of our own laws, +contributing to the continuance of this distressing and sickening contest. +In my last annual message I referred to this subject, and I again recommend +such legislation as may be proper to denounce, and, if not prevent, at +least to discourage American citizens from holding or dealing in slaves. + +It is gratifying to announce that the ratifications of the convention +concluded under the auspices of this Government between Spain on the one +part and the allied Republics of the Pacific on the other, providing for an +armistice, have been exchanged. A copy of the instrument is herewith +submitted. It is hoped that this may be followed by a permanent peace +between the same parties. + +The differences which at one time threatened the maintenance of peace +between Brazil and the Argentine Republic it is hoped are in the way of +satisfactory adjustment. + +With these States, as with the Republics of Central and of South America, +we continue to maintain the most friendly relations. + +It is with regret, however, I announce that the Government of Venezuela has +made no further payments on account of the awards under the convention of +the 25th of April, 1866. That Republic is understood to be now almost, if +not quite, tranquilized. It is hoped, therefore, that it will lose no time +in providing for the unpaid balance of its debt to the United States, +which, having originated in injuries to our citizens by Venezuelan +authorities, and having been acknowledged, pursuant to a treaty, in the +most solemn form known among nations, would seem to deserve a preference +over debts of a different origin and contracted in a different manner. This +subject is again recommended to the attention of Congress for such action +as may be deemed proper. + +Our treaty relations with Japan remain unchanged. An imposing embassy from +that interesting and progressive nation visited this country during the +year that is passing, but, being unprovided with powers for the signing of +a convention in this country, no conclusion in that direction was reached. +It is hoped, however, that the interchange of opinions which took place +during their stay in this country has led to a mutual appreciation of the +interests which may be promoted when the revision of the existing treaty +shall be undertaken. + +In this connection I renew my recommendation of one year ago, that-- + +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, an appropriation be made to support at least four +American youths in each of those countries, to serve as a part of the +official family of our ministers there. Our representatives would not even +then be placed upon an equality with the representatives of Great Britain +and of some other powers. As now situated, our representatives in Japan and +China have to depend for interpreters and translators upon natives of those +countries, who know our language imperfectly, or procure for the occasion +the services of employees in foreign business houses or the interpreters to +other foreign ministers. + +I renew the recommendation made on a previous occasion, of the transfer to +the Department of the Interior, to which they seem more appropriately to +belong, of all the powers and duties in relation to the Territories with +which the Department of State is now charged by law or by custom. + +Congress from the beginning of the Government has wisely made provision for +the relief of distressed seamen in foreign countries. No similar provision, +however, has hitherto been made for the relief of citizens in distress +abroad other than seamen. It is understood to be customary with other +governments to authorize consuls to extend such relief to their citizens or +subjects in certain cases. A similar authority and an appropriation to +carry it into effect are recommended in the case of citizens of the United +States destitute or sick under such circumstances. It is well known that +such citizens resort to foreign countries in great numbers. Though most of +them are able to bear the expenses incident to locomotion, there are some +who, through accident or otherwise, become penniless, and have no friends +at home able to succor them. Persons in this situation must either perish, +cast themselves upon the charity of foreigners, or be relieved at the +private charge of our own officers, who usually, even with the most +benevolent dispositions, have nothing to spare for such purposes. + +Should the authority and appropriation asked for be granted, care will be +taken so to carry the beneficence of Congress into effect that it shall not +be unnecessarily or unworthily bestowed. TREASURY. + +The moneys received and covered into the Treasury during the fiscal year +ended June 30, 1872, were: + +From customs - $216,370,286.77 + +From sales of public lands - 2,575,714.19 + +From internal revenue - 130,642,177.72 + +From tax on national-bank circulation, etc - 6,523,396.39 + +From Pacific railway companies - 749,861.87 + +From customs fines, etc - 1,136,442.34 + +From fees--consular, patent, lands, etc - 2,284,095.92 + +From miscellaneous - 412,254.71 - + +*** + +State of the Union Address +Ulysses S. Grant +December 1, 1873 + +To the Senate and House of Representatives: + +The year that has passed since the submission of my last message to +Congress has, especially during the latter part of it, been an eventful one +to the country. In the midst of great national prosperity a financial +crisis has occurred that has brought low fortunes of gigantic proportions; +political partisanship has almost ceased to exist, especially in the +agricultural regions; and, finally, the capture upon the high seas of a +vessel bearing our flag has for a time threatened the most serious +consequences, and has agitated the public mind from one end of the country +to the other. But this, happily, now is in the course of satisfactory +adjustment, honorable to both nations concerned. + +The relations of the United States, however, with most of the other powers +continue to be friendly and cordial. With France, Germany, Russia, Italy, +and the minor European powers; with Brazil and most of the South American +Republics, and with Japan, nothing has occurred during the year to demand +special notice. The correspondence between the Department of State and +various diplomatic representatives in or from those countries is +transmitted herewith. + +In executing the will of Congress, as expressed in its joint resolution of +the 14th of February last, and in accordance with the provisions of the +resolution, a number of "practical artisans," of "scientific men," and of +"honorary commissioners" were authorized to attend the exposition at Vienna +as commissioners on the part of the United States. It is believed that we +have obtained the object which Congress had in view when it passed the +joint resolution--" in order to enable the people of the United States to +participate in the advantages of the International Exhibition of the +Products of Agriculture, Manufactures, and the Fine Arts to be held at +Vienna." I take pleasure in adding that the American exhibitors have +received a gratifying number of diplomas and of medals. + +During the exposition a conference was held at Vienna for the purpose of +consultation on the systems prevailing in different countries for the +protection of inventions. I authorized a representative from the Patent +Office to be present at Vienna at the time when this conference was to take +place, in order to aid as far as he might in securing any possible +additional protection to American inventors in Europe. The report of this +agent will be laid before Congress. + +It is my pleasant duty to announce to Congress that the Emperor of China, +on attaining his majority, received the diplomatic representatives of the +Western powers in person. An account of these ceremonies and of the +interesting discussions which preceded them will be found in the documents +transmitted herewith. The accompanying papers show that some advance, +although slight, has been made during the past year toward the suppression +of the infamous Chinese cooly trade. I recommend Congress to inquire +whether additional legislation be not needed on this subject. + +The money awarded to the United States by the tribunal of arbitration at +Geneva was paid by Her Majesty's Government a few days in advance of the +time when it would have become payable according to the terms of the +treaty. In compliance with the provisions of the act of March 3, 1873, it +was at once paid into the Treasury, and used to redeem, so far as it might, +the public debt of the United States; and the amount so redeemed was +invested in a 5 per cent registered bond of the United States for +$15,500,000, which is now held by the Secretary of State, subject to the +future disposition of Congress. + +I renew my recommendation, made at the opening of the last session of +Congress, that a commission be created for the purpose of auditing and +determining the amounts of the several "direct losses growing out of the +destruction of vessels and their cargoes" by the Alabama, the Florida, or +the Shenandoah after leaving Melbourne, for which the sufferers have +received no equivalent or compensation, and of ascertaining the names of +the persons entitled to receive compensation for the same, making the +computations upon the basis indicated by the tribunal of arbitration at +Geneva; and that payment of such losses be authorized to an extent not to +exceed the awards of the tribunal at Geneva. + +By an act approved on the 14th day of February last Congress made provision +for completing, jointly with an officer or commissioner to be named by Her +Britannic Majesty, the determination of so much of the boundary line +between the territory of the United States and the possessions of Great +Britain as was left uncompleted by the commissioners appointed under the +act of Congress of August 11, 1856. Under the provisions of this act the +northwest water boundary of the United States has been determined and +marked in accordance with the award of the Emperor of Germany. A protocol +and a copy of the map upon which the line was thus marked are contained in +the papers submitted herewith. + +I also transmit a copy of the report of the commissioner for marking the +northern boundary between the United States and the British possessions +west of the Lake of the Woods, of the operations of the commission during +the past season. Surveys have been made to a point 497 miles west of the +Lake of the Woods, leaving about 350 miles to be surveyed, the field work +of which can be completed during the next season. + +The mixed commission organized under the provisions of the treaty of +Washington for settling and determining the claims of citizens of either +power against the other arising out of acts committed against their persons +or property during the period between April 13, 1861, and April 9, 1865, +made its final award on the 25th day of September last. It was awarded that +the Government of the United States should pay to the Government of Her +Britannic Majesty, within twelve months from the date of the award, the sum +of $1,929,819 in gold. The commission disallowed or dismissed all other +claims of British subjects against the United States. The amount of the +claims presented by the British Government, but disallowed or dismissed, is +understood to be about $93,000,000. It also disallowed all the claims of +citizens of the United States against Great Britain which were referred to +it. + +I recommend the early passage of an act appropriating the amount necessary +to pay this award against the United States. + +I have caused to be communicated to the Government of the King of Italy the +thanks of this Government for the eminent services rendered by Count Corti +as the third commissioner on this commission. With dignity, learning, and +impartiality he discharged duties requiring great labor and constant +patience, to the satisfaction, I believe, of both Governments. I recommend +legislation to create a special court, to consist of three judges, who +shall be empowered to hear and determine all claims of aliens upon the +United States arising out of acts committed against their persons or +property during the insurrection. The recent reference under the treaty of +Washington was confined to claims of British subjects arising during the +period named in the treaty; but it is understood that there are other +British claims of a similar nature, arising after the 9th of April, 1865, +and it is known that other claims of a like nature are advanced by citizens +or subjects of other powers. It is desirable to have these claims also +examined and disposed of. + +Official information being received from the Dutch Government of a state of +war between the King of the Netherlands and the Sultan of Acheen, the +officers of the United States who were near the seat of the war were +instructed to observe an impartial neutrality. It is believed that they +have done so. + +The joint commission under the convention with Mexico of 1868, having again +been legally prolonged, has resumed its business, which, it is hoped, may +be brought to an early conclusion. The distinguished representative of Her +Britannic Majesty at Washington has kindly consented, with the approval of +his Government, to assume the arduous and responsible duties of umpire in +this commission, and to lend the weight of his character and name to such +decisions as may not receive the acquiescence of both the arbitrators +appointed by the respective Governments. + +The commissioners appointed pursuant to the authority of Congress to +examine into the nature and extent of the forays by trespassers from that +country upon the herds of Texas have made a report, which will be submitted +for your consideration. + +The Venezuelan Government has been apprised of the sense of Congress in +regard to the awards of the joint commission under the convention of 25th +April, 1866, as expressed in the act of the 25th of February last. + +It is apprehended that that Government does not realize the character of +its obligations under that convention. As there is reason to believe, +however, that its hesitancy in recognizing them springs, in part at least, +from real difficulty in discharging them in connection with its obligations +to other governments, the expediency of further forbearance on our part is +believed to be worthy of your consideration. + +The Ottoman Government and that of Egypt have latterly shown a disposition +to relieve foreign consuls of the judicial powers which heretofore they +have exercised in the Turkish dominions, by organizing other tribunals. As +Congress, however, has by law provided for the discharge of judicial +functions by consuls of the United States in that quarter under the treaty +of 1830, I have not felt at liberty formally to accept the proposed change +without the assent of Congress, whose decision upon the subject at as early +a period as may be convenient is earnestly requested. + +I transmit herewith, for the consideration and determination of Congress, +an application of the Republic of Santo Domingo to this Government to +exercise a protectorate over that Republic. + +Since the adjournment of Congress the following treaties with foreign +powers have been proclaimed: A naturalization convention with Denmark; a +convention with Mexico for renewing the Claims Commission; a convention of +friendship, commerce, and extradition with the Orange Free State, and a +naturalization convention with Ecuador. + +I renew the recommendation made in my message of December, 1870, that +Congress authorize the Postmaster-General to issue all commissions to +officials appointed through his Department. + +I invite the earnest attention of Congress to the existing laws of the +United States respecting expatriation and the election of nationality by +individuals. Many citizens of the United States reside permanently abroad +with their families. Under the provisions of the act approved February 10, +1855, the children of such persons are to be deemed and taken to be +citizens of the United States, but the rights of citizenship are not to +descend to persons whose fathers never resided in the United States. + +It thus happens that persons who have never resided within the United +States have been enabled to put forward a pretension to the protection of +the United States against the claim to military service of the government +under whose protection they were born and have been reared. In some cases +even naturalized citizens of the United States have returned to the land of +their birth, with intent to remain there, and their children, the issue of +a marriage contracted there after their return, and who have never been in +the United States, have laid claim to our protection when the lapse of many +years had imposed upon them the duty of military service to the only +government which had ever known them personally. + +Until the year 1868 it was left, embarrassed by conflicting opinions of +courts and of jurists, to determine how far the doctrine of perpetual +allegiance derived from our former colonial relations with Great Britain +was applicable to American citizens. Congress then wisely swept these +doubts away by enacting that-- Any declaration, instruction, opinion, +order, or decision of any officer of this Government which denies, +restricts, impairs, or questions the right of expatriation is inconsistent +with the fundamental principles of this Government. But Congress did not +indicate in that statute, nor has it since done so, what acts are to be +deemed to work expatriation. For my own guidance in determining such +questions I required (under the provisions of the Constitution) the opinion +in writing of the principal officer in each of the Executive Departments +upon certain questions relating to this subject. The result satisfies me +that further legislation has become necessary. I therefore commend the +subject to the careful consideration of Congress, and I transmit herewith +copies of the several opinions of the principal officers of the Executive +Departments, together with other correspondence and pertinent information +on the same subject. + +The United States, who led the way in the overthrow of the feudal doctrine +of perpetual allegiance, are among the last to indicate how their own +citizens may elect another nationality. The papers submitted herewith +indicate what is necessary to place us on a par with other leading nations +in liberality of legislation on this international question. We have +already in our treaties assented to the principles which would need to be +embodied in laws intended to accomplish such results. We have agreed that +citizens of the United States may cease to be citizens and may voluntarily +render allegiance to other powers. We have agreed that residence in a +foreign land, without intent to return, shall of itself work expatriation. +We have agreed in some instances upon the length of time necessary for such +continued residence to work a presumption of such intent. I invite Congress +now to mark out and define when and how expatriation can be accomplished; +to regulate by law the condition of American women marrying foreigners; to +fix the status of children born in a foreign country of American parents +residing more or less permanently abroad, and to make rules for determining +such other kindred points as may seem best to Congress. + +In compliance with the request of Congress, I transmitted to the American +minister at Madrid, with instructions to present it to the Spanish +Government, the joint resolution approved on the 3d of March last, +tendering to the people of Spain, in the name and on the behalf of the +American people, the congratulations of Congress upon the efforts to +consolidate in Spain the principles of universal liberty in a republican +form of government. + +The existence of this new Republic was inaugurated by striking the fetters +from the slaves in Porto Rico. This beneficent measure was followed by the +release of several thousand persons illegally held as slaves in Cuba. Next, +the Captain-General of that colony was deprived of the power to set aside +the orders of his superiors at Madrid, which had pertained to the office +since 1825. The sequestered estates of American citizens, which had been +the cause of long and fruitless correspondence, were ordered to be restored +to their owners. All these liberal steps were taken in the face of a +violent opposition directed by the reactionary slave-holders of Havana, who +are vainly striving to stay the march of ideas which has terminated slavery +in Christendom, Cuba only excepted. Unhappily, however, this baneful +influence has thus far succeeded in defeating the efforts of all +liberal-minded men in Spain to abolish slavery in Cuba, and in preventing +the promised reform in that island. The struggle for political supremacy +continues there. + +The proslavery and aristocratic party in Cuba is gradually arraigning +itself in more and more open hostility and defiance of the home government, +while it still maintains a political connection with the Republic in the +peninsula; and although usurping and defying the authority of the home +government whenever such usurpation or defiance tends in the direction of +oppression or of the maintenance of abuses, it is still a power in Madrid, +and is recognized by the Government. Thus an element more dangerous to +continued colonial relations between Cuba and Spain than that which +inspired the insurrection at Yara--an element opposed to granting any +relief from misrule and abuse, with no aspirations after freedom, +commanding no sympathies in generous breasts, aiming to rivet still +stronger the shackles of slavery and oppression--has seized many of the +emblems of power in Cuba, and, under professions of loyalty to the mother +country, is exhausting the resources of the island, and is doing acts which +are at variance with those principles of justice, of liberality, and of +right which give nobility of character to a republic. In the interests of +humanity, of civilization, and of progress, it is to be hoped that this +evil influence may be soon averted. + +The steamer Virginius was on the 26th day of September, 1870, duly +registered at the port of New York as a part of the commercial marine of +the United States. On the 4th of October, 1870, having received the +certificate of her register in the usual legal form, she sailed from the +port of New York and has not since been within the territorial jurisdiction +of the United States. On the 31st day of October last, while sailing under +the flag of the United States on the high seas, she was forcibly seized by +the Spanish gunboat Tornado, and was carried into the port of Santiago de +Cuba, where fifty-three of her passengers and crew were inhumanly, and, so +far at least as relates to those who were citizens of the United States, +without due process of law, put to death. + +It is a well-established principle, asserted by the United States from the +beginning of their national independence, recognized by Great Britain and +other maritime powers, and stated by the Senate in a resolution passed +unanimously on the 16th of June, 1858, that-- American vessels on the high +seas in time of peace, bearing the American flag, remain under the +jurisdiction of the country to which they belong, and therefore any +visitation, molestation, or detention of such vessel by force, or by the +exhibition of force, on the part of a foreign power is in derogation of the +sovereignty of the United States. In accordance with this principle, the +restoration of the Virginius and the surrender of the survivors of her +passengers and crew, and a due reparation to the flag, and the punishment +of the authorities who had been guilty of the illegal acts of violence, +were demanded. The Spanish Government has recognized the justice of the +demand, and has arranged for the immediate delivery of the vessel, and for +the surrender of the survivors of the passengers and crew, and for a salute +to the flag, and for proceedings looking to the punishment of those who may +be proved to have been guilty of illegal acts of violence toward citizens +of the United States, and also toward indemnifying those who may be shown +to be entitled to indemnity. A copy of a protocol of a conference between +the Secretary of State and the Spanish minister, in which the terms of this +arrangement were agreed to, is transmitted herewith. + +The correspondence on this subject with the legation of the United States +in Madrid was conducted in cipher and by cable, and needs the verification +of the actual text of the correspondence. It has seemed to me to be due to +the importance of the case not to submit this correspondence until the +accurate text can be received by mail. It is expected shortly, and will be +submitted when received. + +In taking leave of this subject for the present I wish to renew the +expression of my conviction that the existence of African slavery in Cuba +is a principal cause of the lamentable condition of the island. I do not +doubt that Congress shares with me the hope that it will soon be made to +disappear, and that peace and prosperity may follow its abolition. + +The embargoing of American estates in Cuba, cruelty to American citizens +detected in no act of hostility to the Spanish Government, the murdering of +prisoners taken with arms in their hands, and, finally, the capture upon +the high seas of a vessel sailing under the United States flag and bearing +a United States registry have culminated in an outburst of indignation that +has seemed for a time to threaten war. Pending negotiations between the +United States and the Government of Spain on the subject of this capture, I +have authorized the Secretary of the Navy to put our Navy on a war footing, +to the extent, at least, of the entire annual appropriation for that branch +of the service, trusting to Congress and the public opinion of the American +people to justify my action. + +Assuming from the action of the last Congress in appointing a Committee on +Privileges and Elections to prepare and report to this Congress a +constitutional amendment to provide a better method of electing the +President and Vice-President of the United States, and also from the +necessity of such an amendment, that there will be submitted to the State +legislatures for ratification such an improvement in our Constitution, I +suggest two others for your consideration: + +First. To authorize the Executive to approve of so much of any measure +passing the two Houses of Congress as his judgment may dictate, without +approving the whole, the disapproved portion or portions to be subjected to +the same rules as now, to wit, to be referred back to the House in which +the measure or measures originated, and, if passed by a two-thirds vote of +the two Houses, then to become a law without the approval of the President. +I would add to this a provision that there should be no legislation by +Congress during the last twenty-four hours of its sitting, except upon +vetoes, in order to give the Executive an opportunity to examine and +approve or disapprove bills understandingly. + +Second. To provide by amendment that when an extra session of Congress is +convened by Executive proclamation legislation during the continuance of +such extra session shall be confined to such subjects as the Executive may +bring before it from time to time in writing. + +The advantages to be gained by these two amendments are too obvious for me +to comment upon them. One session in each year is provided for by the +Constitution, in which there are no restrictions as to the subjects of +legislation by Congress. If more are required, it is always in the power of +Congress, during their term of office, to provide for sessions at any time. +The first of these amendments would protect the public against the many +abuses and waste of public moneys which creep into appropriation bills and +other important measures passing during the expiring hours of Congress, to +which otherwise due consideration can not be given. + +TREASURY DEPARTMENT. + +The receipts of the Government from all sources for the last fiscal year +were $333,738,204, and expenditures on all accounts $290,345,245, thus +showing an excess of receipts over expenditures of $43,392,959. But it is +not probable that this favorable exhibit will be shown for the present +fiscal year. Indeed, it is very doubtful whether, except with great economy +on the part of Congress in making appropriations and the same economy in +administering the various Departments of Government, the revenues will not +fall short of meeting actual expenses, including interest on the public +debt. + +I commend to Congress such economy, and point out two sources where It +seems to me it might commence, to wit, in the appropriations for public +buildings in the many cities where work has not yet been commenced; in the +appropriations for river and harbor improvement in those localities where +the improvements are of but little benefit to general commerce, and for +fortifications. + +There is a still more fruitful source of expenditure, which I will point +out later in this message. I refer to the easy method of manufacturing +claims for losses incurred in suppressing the late rebellion. + +I would not be understood here as opposing the erection of good, +substantial, and even ornamental buildings by the Government wherever such +buildings are needed. In fact, I approve of the Government owning its own +buildings in all sections of the country, and hope the day is not far +distant when it will not only possess them, but will erect in the capital +suitable residences for all persons who now receive commutation for +quarters or rent at Government expense, and for the Cabinet, thus setting +an example to the States which may induce them to erect buildings for their +Senators. But I would have this work conducted at a time when the revenues +of the country would abundantly justify it. + +The revenues have materially fallen off for the first five months of the +present fiscal year from what they were expected to produce, owing to the +general panic now prevailing, which commenced about the middle of September +last. The full effect of this disaster, if it should not prove a "blessing +in disguise," is yet to be demonstrated. In either event it is your duty to +heed the lesson and to provide by wise and well-considered legislation, as +far as it lies in your power, against its recurrence, and to take advantage +of all benefits that may have accrued. + +My own judgment is that, however much individuals may have suffered, one +long step has been taken toward specie payments; that we can never have +permanent prosperity until a specie basis is reached: and that a specie +basis can not be reached and maintained until our exports, exclusive of +gold, pay for our imports, interest due abroad, and other specie +obligations, or so nearly so as to leave an appreciable accumulation of the +precious metals in the country from the products of our mines. + +The development of the mines of precious metals during the past year and +the prospective development of them for years to come are gratifying in +their results. Could but one-half of the gold extracted from the mines be +retained at home, our advance toward specie payments would be rapid. + +To increase our exports sufficient currency is required to keep all the +industries of the country employed. Without this national as well as +individual bankruptcy must ensue. Undue inflation, on the other hand, while +it might give temporary relief, would only lead to inflation of prices, the +impossibility of competing in our own markets for the products of home +skill and labor, and repeated renewals of present experiences. Elasticity +to our circulating medium, therefore, and just enough of it to transact the +legitimate business of the country and to keep all industries employed, is +what is most to be desired. The exact medium is specie, the recognized +medium of exchange the world over. That obtained, we shall have a currency +of an exact degree of elasticity. If there be too much of it for the +legitimate purposes of trade and commerce, it will flow out of the country. +If too little, the reverse will result. To hold what we have and to +appreciate our currency to that standard is the problem deserving of the +most serious consideration of Congress. + +The experience of the present panic has proven that the currency of the +country, based, as it is, upon the credit of the country, is the best that +has ever been devised. Usually in times of such trials currency has become +worthless, or so much depreciated in value as to inflate the values of all +the necessaries of life as compared with the currency. Everyone holding it +has been anxious to dispose of it on any terms. Now we witness the reverse. +Holders of currency hoard it as they did gold in former experiences of a +like nature. + +It is patent to the most casual observer that much more currency, or money, +is required to transact the legitimate trade of the country during the fall +and winter months, when the vast crops are being removed, than during the +balance of the year. With our present system the amount in the country +remains the same throughout the entire year, resulting in an accumulation +of all the surplus capital of the country in a few centers when not +employed in the moving of crops, tempted there by the offer of interest on +call loans. Interest being paid, this surplus capital must earn this +interest paid with a profit. Being subject to "call," it can not be loaned, +only in part at best, to the merchant or manufacturer for a fixed term. +Hence, no matter how much currency there might be in the country, it would +be absorbed, prices keeping pace with the volume, and panics, stringency, +and disasters would ever be recurring with the autumn. Elasticity in our +monetary system, therefore, is the object to be attained first, and next to +that, as far as possible, a prevention of the use of other people's money +in stock and other species of speculation. To prevent the latter it seems +to me that one great step would be taken by prohibiting the national banks +from paying interest on deposits, by requiring them to hold their reserves +in their own vaults, and by forcing them into resumption, though it would +only be in legal-tender notes. For this purpose I would suggest the +establishment of clearing houses for your consideration. + +To secure the former many plans have been suggested, most, if not all, of +which look to me more like inflation on the one hand, or compelling the +Government, on the other, to pay interest, without corresponding benefits, +upon the surplus funds of the country during the seasons when otherwise +unemployed. + +I submit for your consideration whether this difficulty might not be +overcome by authorizing the Secretary of the Treasury to issue at any time +to national banks of issue any amount of their own notes below a fixed +percentage of their issue (say 40 per cent), upon the banks' depositing +with the Treasurer of the United States an amount of Government bonds equal +to the amount of notes demanded, the banks to forfeit to the Government, +say, 4 per cent of the interest accruing on the bonds so pledged during the +time they remain with the Treasurer as security for the increased +circulation, the bonds so pledged to be redeemable by the banks at their +pleasure, either in whole or in part, by returning their own bills for +cancellation to an amount equal to the face of the bonds withdrawn. I would +further suggest for your consideration the propriety of authorizing +national banks to diminish their standing issue at pleasure, by returning +for cancellation their own bills and withdrawing so many United States +bonds as are pledged for the bills returned. + +In view of the great actual contraction that has taken place in the +currency and the comparative contraction continuously going on, due to the +increase of population, increase of manufactories and all the industries, I +do not believe there is too much of it now for the dullest period of the +year. Indeed, if clearing houses should be established, thus forcing +redemption, it is a question for your consideration whether banking should +not be made free, retaining all the safeguards now required to secure bill +holders. In any modification of the present laws regulating national banks, +as a further step toward preparing for resumption of specie payments, I +invite your attention to a consideration of the propriety of exacting from +them the retention as a part of their reserve either the whole or a part of +the gold interest accruing upon the bonds pledged as security for their +issue. I have not reflected enough on the bearing this might have in +producing a scarcity of coin with which to pay duties on imports to give it +my positive recommendation. But your attention is invited to the subject. + +During the last four years the currency has been contracted, directly, by +the withdrawal of 3 per cent certificates, compound-interest notes, and +"seven-thirty" bonds outstanding on the 4th of March, 1869, all of which +took the place of legal-tenders in the bank reserves to the extent of +$63,000,000. + +During the same period there has been a much larger comparative contraction +of the currency. The population of the country has largely increased. More +than 25,000 miles of railroad have been built, requiring the active use of +capital to operate them. Millions of acres of land have been opened to +cultivation, requiring capital to move the products. Manufactories have +multiplied beyond all precedent in the same period of time, requiring +capital weekly for the payment of wages and for the purchase of material; +and probably the largest of all comparative contraction arises from the +organizing of free labor in the South. Now every laborer there receives his +wages, and, for want of savings banks, the greater part of such wages is +carried in the pocket or hoarded until required for use. + +These suggestions are thrown out for your consideration, without any +recommendation that they shall be adopted literally, but hoping that the +best method may be arrived at to secure such an elasticity of the currency +as will keep employed all the industries of the country and prevent such an +inflation as will put off indefinitely the resumption of specie payments, +an object so devoutly to be wished for by all, and by none more earnestly +than the class of people most directly interested--those who "earn their +bread by the sweat of their brow." The decisions of Congress on this +subject will have the hearty support of the Executive. + +In previous messages I have called attention to the decline in American +shipbuilding and recommended such legislation as would secure to us our +proportion of the carrying trade. Stimulated by high rates and abundance of +freight, the progress for the last year in shipbuilding has been very +satisfactory. There has been an increase of about 3 per cent in the amount +transported in American vessels over the amount of last year. With the +reduced cost of material which has taken place, it may reasonably be hoped +that this progress will be maintained, and even increased. However, as we +pay about $80,000,000 per annum to foreign vessels for the transportation +to a market of our surplus products, thus increasing the balance of trade +against us to this amount, the subject is one worthy of your serious +consideration. + +"Cheap transportation" is a subject that has attracted the attention of +both producers and consumers for the past few years, and has contributed +to, if it has not been the direct cause of, the recent panic and +stringency. + +As Congress, at its last session, appointed a special committee to +investigate this whole subject during the vacation and report at this +session, I have nothing to recommend until their report is read. + +There is one work, however, of a national character, in which the greater +portion of the East and the West, the North and the South, are equally +interested, to which I will invite your attention. + +The State of New York has a canal connecting Lake Erie with tide water on +the Hudson River. The State of Illinois has a similar work connecting Lake +Michigan with navigable water on the Illinois River, thus making water +communication inland between the East and the West and South. These great +artificial water courses are the property of the States through which they +pass, and pay toll to those States. Would it not be wise statesmanship to +pledge these States that if they will open these canals for the passage of +large vessels the General Government will look after and keep in navigable +condition the great public highways with which they connect, to wit, the +Overslaugh on the Hudson, the St. Clair Flats, and the Illinois and +Mississippi rivers? This would be a national work; one of great value to +the producers of the West and South in giving them cheap transportation for +their produce to the seaboard and a market, and to the consumers in the +East in giving them cheaper food, particularly of those articles of food +which do not find a foreign market, and the prices of which, therefore, are +not regulated by foreign demands. The advantages of such a work are too +obvious for argument. I submit the subject to you, therefore, without +further comment. + +In attempting to regain our lost commerce and carrying trade I have +heretofore called attention to the States south of us offering a field +where much might be accomplished. To further this object I suggest that a +small appropriation be made, accompanied with authority for the Secretary +of the Navy to fit out a naval vessel to ascend the Amazon River to the +mouth of the Madeira; thence to explore that river and its tributaries into +Bolivia, and to report to Congress at its next session, or as soon as +practicable, the accessibility of the country by water, its resources, and +the population so reached. Such an exploration would cost but little; it +can do no harm, and may result in establishing a trade of value to both +nations. + +In further connection with the Treasury Department I would recommend a +revision and codification of the tariff laws and the opening of more mints +for coining money, with authority to coin for such nations as may apply. + +WAR DEPARTMENT. + +The attention of Congress is invited to the recommendations contained in +the report of the Secretary of War herewith accompanying. + +The apparent great cost of supporting the Army is fully explained by this +report, and I hope will receive your attention. + +While inviting your general attention to all the recommendations made by +the Secretary of War, there are two which I would especially invite you to +consider: First, the importance of preparing for war in time of peace by +providing proper armament for our seacoast defenses. Proper armament is of +vastly more importance than fortifications. The latter can be supplied very +speedily for temporary purposes when needed; the former can not. The second +is the necessity of reopening promotion in the staff corps of the Army. +Particularly is this necessity felt in the Medical, Pay, and Ordnance +departments. + +At this time it is necessary to employ "contract surgeons" to supply the +necessary medical attendance required by the Army. + +With the present force of the Pay Department it is now difficult to make +the payments to troops provided for by law. Long delays in payments are +productive of desertions and other demoralization, and the law prohibits +the payment of troops by other than regular army paymasters. + +There are now sixteen vacancies in the Ordnance Department, thus leaving +that branch of the service without sufficient officers to conduct the +business of the different arsenals on a large scale if ever required. + +NAVY DEPARTMENT. + +During the past year our Navy has been depleted by the sale of some vessels +no longer fit for naval service and by the condemnation of others not yet +disposed of. This, however, has been more than compensated for by the +repair of six of the old wooden ships and by the building of eight new +sloops of war, authorized by the last Congress. The building of these +latter has occurred at a doubly fortunate time. They are about being +completed at a time when they may possibly be much needed, and the work +upon them has not only given direct employment to thousands of men, but has +no doubt been the means of keeping open establishments for other work at a +time of great financial distress. + +Since the commencement of the last month, however, the distressing +occurrences which have taken place in the waters of the Caribbean Sea, +almost on our very seaboard, while they illustrate most forcibly the +necessity always existing that a nation situated like ours should maintain +in a state of possible efficiency a navy adequate to its responsibilities, +has at the same time demanded that all the effective force we really have +shall be put in immediate readiness for warlike service. This has been and +is being done promptly and effectively, and I am assured that all the +available ships and every authorized man of the American Navy will be ready +for whatever action is required for the safety of our citizens or the +maintenance of our honor. This, of course, will require the expenditure in +a short time of some of the appropriations which were calculated to extend +through the fiscal year, but Congress will, I doubt not, understand and +appreciate the emergency, and will provide adequately not only for the +present preparation, but for the future maintenance of our naval force. The +Secretary of the Navy has during the past year been quietly putting some of +our most effective monitors in condition for service, and thus the exigency +finds us in a much better condition for work than we could possibly have +been without his action. + +POST-OFFICE DEPARTMENT. + +A complete exhibit is presented in the accompanying report of the +postmaster-General of the operations of the Post-Office Department during +the year. The ordinary postal revenues for the fiscal year ended June 30, +1873, amounted to $22,996,741.57, and the expenditures of all kinds to +$29,084,945.67. The increase of revenues over 1872 was $1,081,315.20, and +the increase of expenditures $2,426,753.36. + +Independent of the payments made from special appropriations for mail +steamship lines, the amount drawn from the General Treasury to meet +deficiencies was $5,265,475. The constant and rapid extension of our postal +service, particularly upon railways, and the improved facilities for the +collection, transmission, distribution, and delivery of the mails which are +constantly being provided account for the increased expenditures of this +popular branch of the public service. + +The total number of post-offices in operation on June 30, 1873, was 33,244, +a net increase of 1,381 over the number reported the preceding year. The +number of Presidential offices was 1,363, an increase of 163 during the +year. The total length of railroad mail routes at the close of the year was +63,457 miles, an increase of 5,546 miles over the year 1872. Fifty-nine +railway post-office lines were in operation June 30, 1873, extending over +14,866 miles of railroad routes and performing an aggregate service of +34,925 miles daily. + +The number of letters exchanged with foreign countries was 27,459,185, an +increase of 3,096,685 over the previous year, and the postage thereon +amounted to $2,021,310.86. The total weight of correspondence exchanged in +the mails with European countries exceeded 912 tons, an increase of 92 tons +over the previous year. The total cost of the United States ocean steamship +service, including $725,000 paid from special appropriations to subsidized +lines of mail steamers, was $1,047,271.35. + +New or additional postal conventions have been concluded with Sweden, +Norway, Belgium, Germany, Canada, Newfoundland, and Japan, reducing postage +rates on correspondence exchanged with those countries; and further efforts +have been made to conclude a satisfactory postal convention with France, +but without success. + +I invite the favorable consideration of Congress to the suggestions and +recommendations of the Postmaster-General for an extension of the +free-delivery system in all cities having a population of not less than +10,000; for the prepayment of postage on newspapers and other printed +matter of the second class; for a uniform postage and limit of weight on +miscellaneous matter; for adjusting the compensation of all postmasters not +appointed by the President, by the old method of commissions on the actual +receipts of the office, instead of the present mode of fixing the salary in +advance upon special returns; and especially do I urge favorable action by +Congress on the important recommendations of the Postmaster-General for the +establishment of United States postal savings depositories. + +Your attention is also again called to a consideration of the question of +postal telegraphs and the arguments adduced in support thereof, in the hope +that you may take such action in connection therewith as in your judgment +will most contribute to the best interests of the country. + +DEPARTMENT OF JUSTICE. + +Affairs in Utah require your early and special attention. The Supreme Court +of the United States, in the case of Clinton vs. Englebrecht, decided that +the United States marshal of that Territory could not lawfully summon +jurors for the district courts; and those courts hold that the Territorial +marshal can not lawfully perform that duty, because he is elected by the +legislative assembly, and not appointed as provided for in the act +organizing the Territory. All proceedings at law are practically abolished +by these decisions, and there have been but few or no jury trials in the +district courts of that Territory since the last session of Congress. +Property is left without protection by the courts, and crimes go +unpunished. To prevent anarchy there it is absolutely necessary that +Congress provide the courts with some mode of obtaining jurors, and I +recommend legislation to that end, and also that the probate courts of the +Territory, now assuming to issue writs of injunction and habeas corpus and +to try criminal cases and questions as to land titles, be denied all +jurisdiction not possessed ordinarily by courts of that description. + +I have become impressed with the belief that the act approved March 2, +1867, entitled "An act to establish a uniform system of bankruptcy +throughout the United States," is productive of more evil than good at this +time. Many considerations might be urged for its total repeal, but, if this +is not considered advisable, I think it will not be seriously questioned +that those portions of said act providing for what is called involuntary +bankruptcy operate to increase the financial embarrassments of the country. +Careful and prudent men very often become involved in debt in the +transaction of their business, and though they may possess ample property, +if it could be made available for that purpose, to meet all their +liabilities, yet, on account of the extraordinary scarcity of money, they +may be unable to meet all their pecuniary obligations as they become due, +in consequence of which they are liable to be prostrated in their business +by proceedings in bankruptcy at the instance of unrelenting creditors. +People are now so easily alarmed as to monetary matters that the mere +filing of a petition in bankruptcy by an unfriendly creditor will +necessarily embarrass, and oftentimes accomplish the financial ruin, of a +responsible business man. Those who otherwise might make lawful and just +arrangements to relieve themselves from difficulties produced by the +present stringency in money are prevented by their constant exposure to +attack and disappointment by proceedings against them in bankruptcy, and, +besides, the law is made use of in many cases by obdurate creditors to +frighten or force debtors into a compliance with their wishes and into acts +of injustice to other creditors and to themselves. I recommend that so much +of said act as provides for involuntary bankruptcy on account of the +suspension of payment be repealed. + +Your careful attention is invited to the subject of claims against the +Government and to the facilities afforded by existing laws for their +prosecution. Each of the Departments of State, Treasury, and War has +demands for many millions of dollars upon its files, and they are rapidly +accumulating. To these may be added those now pending before Congress, the +Court of Claims, and the Southern Claims Commission, making in the +aggregate an immense sum. Most of these grow out of the rebellion, and are +intended to indemnify persons on both sides for their losses during the +war; and not a few of them are fabricated and supported by false testimony. +Projects are on foot, it is believed, to induce Congress to provide for new +classes of claims, and to revive old ones through the repeal or +modification of the statute of limitations, by which they are now barred. I +presume these schemes, if proposed, will be received with little favor by +Congress, and I recommend that persons having claims against the United +States cognizable by any tribunal or Department thereof be required to +present them at an early day, and that legislation be directed as far as +practicable to the defeat of unfounded and unjust demands upon the +Government; and I would suggest, as a means of preventing fraud, that +witnesses be called upon to appear in person to testify before those +tribunals having said claims before them for adjudication. Probably the +largest saving to the National Treasury can be secured by timely +legislation on these subjects of any of the economic measures that will be +proposed. + +You will be advised of the operations of the Department of Justice by the +report of the Attorney-General, and I invite your attention to the +amendments of existing laws suggested by him, with the view of reducing the +expenses of that Department. + +DEPARTMENT OF THE INTERIOR. + +The policy inaugurated toward the Indians at the beginning of the last +Administration has been steadily pursued, and, I believe, with beneficial +results. It will be continued with only such modifications as time and +experience may demonstrate as necessary. + +With the encroachment of civilization upon the Indian reservations and +hunting grounds, disturbances have taken place between the Indians and +whites during the past year, and probably will continue to do so until each +race appreciates that the other has rights which must be respected. + +The policy has been to collect the Indians as rapidly as possible on +reservations, and as far as practicable within what is known as the Indian +Territory, and to teach them the arts of civilization and self-support. +Where found off their reservations, and endangering the peace and safety of +the whites, they have been punished, and will continue to be for like +offenses. + +The Indian Territory south of Kansas and west of Arkansas is sufficient in +area and agricultural resources to support all the Indians east of the +Rocky Mountains. In time, no doubt, all of them, except a few who may elect +to make their homes among white people, will be collected there. As a +preparatory step for this consummation, I am now satisfied that a +Territorial form of government should be given them, which will secure the +treaty rights of the original settlers and protect their homesteads from +alienation for a period of twenty years. + +The operations of the Patent Office are growing to such a magnitude and the +accumulation of material is becoming so great that the necessity of more +room is becoming more obvious day by day. I respectfully invite your +attention to the reports of the Secretary of the Interior and Commissioner +of Patents on this subject. + +The business of the General Land Office exhibits a material increase in all +its branches during the last fiscal year. During that time there were +disposed of out of the public lands 13,030,606 acres, being an amount +greater by 1,165,631 acres than was disposed of during the preceding year. +Of the amount disposed of, 1,626,266 acres were sold for cash, 214,940 +acres were located with military land warrants, 3,793,612 acres were taken +for homesteads, 653,446 acres were located with agricultural-college scrip, +6,083,536 acres were certified by railroads, 76,576 acres were granted to +wagon roads, 238,548 acres were approved to States as swamp lands, 138,681 +acres were certified for agricultural colleges, common schools, +universities, and seminaries, 190,775 acres were approved to States for +internal improvements, and 14,222 acres were located with Indian scrip. The +cash receipts during the same time were $3,408,515.50, being $190,415.50 in +excess of the receipts of the previous year. During the year 30,488,132 +acres of public land were surveyed, an increase over the amount surveyed +the previous year of 1,037,193 acres, and, added to the area previously +surveyed, aggregates 616,554,895 acres which have been surveyed, leaving +1,218,443,505 acres of the public land still unsurveyed. + +The increased and steadily increasing facilities for reaching our +unoccupied public domain and for the transportation of surplus products +enlarge the available field for desirable homestead locations, thus +stimulating settlement and extending year by year in a gradually increasing +ratio the area of occupation and cultivation. + +The expressed desire of the representatives of a large colony of citizens +of Russia to emigrate to this country, as is understood, with the consent +of their Government, if certain concessions can be made to enable them to +settle in a compact colony, is of great interest, as going to show the +light in which our institutions are regarded by an industrious, +intelligent, and wealthy people, desirous of enjoying civil and religious +liberty; and the acquisition of so large an immigration of citizens of a +superior class would without doubt be of substantial benefit to the +country. I invite attention to the suggestion of the Secretary of the +Interior in this behalf. + +There was paid during the last fiscal year for pensions, including the +expense of disbursement, $29,185,289.62, being an amount less by +$984,050.98 than was expended for the same purpose the preceding year. +Although this statement of expenditures would indicate a material reduction +in amount compared with the preceding year, it is believed that the changes +in the pension laws at the last session of Congress will absorb that amount +the current year. At the close of the last fiscal year there were on the +pension rolls 99,804 invalid military pensioners and 112,088 widows, +orphans, and dependent relatives of deceased soldiers, making a total of +that class of 211,892; 18,266 survivors of the War of 1812 and 5,058 widows +of soldiers of that war pensioned under the act of Congress of February 14, +1871, making a total of that class of 23,319; 1,480 invalid navy pensioners +and 1,770 widows, orphans, and dependent relatives of deceased officers, +sailors, and marines of the Navy, making a total of navy pensioners of +3,200, and a grand total of pensioners of 311 classes of 238,411, showing a +net increase during the last fiscal year of 6,182. During the last year the +names of 16,405 pensioners were added to the rolls, and 10,223 names were +dropped therefrom for various causes. + +The system adopted for the detection of frauds against the Government in +the matter of pensions has been productive of satisfactory results, but +legislation is needed to provide, if possible, against the perpetration of +such frauds in future. + +The evidently increasing interest in the cause of education is a most +encouraging feature in the general progress and prosperity of the country, +and the Bureau of Education is earnest in its efforts to give proper +direction to the new appliances and increased facilities which are being +offered to aid the educators of the country in their great work. + +The Ninth Census has been completed, the report thereof published and +distributed, and the working force of the Bureau disbanded. The Secretary +of the Interior renews his recommendation for a census to be taken in 1875, +to which subject the attention of Congress is invited. The original +suggestion in that behalf has met with the general approval of the country; +and even if it be not deemed advisable at present to provide for a regular +quinquennial census, a census taken in 1875, the report of which could be +completed and published before the one hundredth anniversary of our +national independence, would be especially interesting and valuable, as +showing the progress of the country during the first century of our +national existence. It is believed, however, that a regular census every +five years would be of substantial benefit to the country, inasmuch as our +growth hitherto has been so rapid that the results of the decennial census +are necessarily unreliable as a basis of estimates for the latter years of +a decennial period. + +DISTRICT OF COLUMBIA. + +Under the very efficient management of the governor and the board of public +works of this District the city of Washington is rapidly assuming the +appearance of a capital of which the nation may well be proud. From being a +most unsightly place three years ago, disagreeable to pass through in +summer in consequence of the dust arising from unpaved streets, and almost +impassable in the winter from the mud, it is now one of the most sightly +cities in the country, and can boast of being the best paved. + +The work has been done systematically, the plans, grades, location of +sewers, water and gas mains being determined upon before the work was +commenced, thus securing permanency when completed. I question whether so +much has ever been accomplished before in any American city for the same +expenditures. The Government having large reservations in the city, and the +nation at large having an interest in their capital, I recommend a liberal +policy toward the District of Columbia, and that the Government should bear +its just share of the expense of these improvements. Every citizen visiting +the capital feels a pride in its growing beauty, and that he too is part +owner in the investments made here. + +I would suggest to Congress the propriety of promoting the establishment in +this District of an institution of learning, or university of the highest +class, by the donation of lands. There is no place better suited for such +an institution than the national capital. There is no other place in which +every citizen is so directly interested. + +CIVIL-SERVICE REFORM. + +In three successive messages to Congress I have called attention to the +subject of "civil-service reform." + +Action has been taken so far as to authorize the appointment of a board to +devise rules governing methods of making appointments and promotions, but +there never has been any action making these rules, or any rules, binding, +or even entitled to observance, where persons desire the appointment of a +friend or the removal of an official who may be disagreeable to them. + +To have any rules effective they must have the acquiescence of Congress as +well as of the Executive. I commend, therefore, the subject to your +attention, and suggest that a special committee of Congress might confer +with the Civil-Service Board during the present session for the purpose of +devising such rules as can be maintained, and which will secure the +services of honest and capable officials, and which will also protect them +in a degree of independence while in office. + +Proper rules will protect Congress, as well as the Executive, from much +needless persecution, and will prove of great value to the public at +large. + +I would recommend for your favorable consideration the passage of an +enabling act for the admission of Colorado as a State in the Union. It +possesses all the elements of a prosperous State, agricultural and mineral, +and, I believe, has a population now to justify such admission. In +connection with this I would also recommend the encouragement of a canal +for purposes of irrigation from the eastern slope of the Rocky Mountains to +the Missouri River. As a rule I am opposed to further donations of public +lands for internal improvements owned and controlled by private +corporations, but in this instance I would make an exception. Between the +Missouri River and the Rocky Mountains there is an arid belt of public land +from 300 to 500 miles in width, perfectly valueless for the occupation of +man, for the want of sufficient rain to secure the growth of any product. +An irrigating canal would make productive a belt as wide as the supply of +water could be made to spread over across this entire country, and would +secure a cordon of settlements connecting the present population of the +mountain and mining regions with that of the older States. All the land +reclaimed would be clear gain. If alternate sections are retained by the +Government, I would suggest that the retained sections be thrown open to +entry under the homestead laws, or sold to actual settlers for a very low +price. + +I renew my previous recommendation to Congress for general amnesty. The +number engaged in the late rebellion yet laboring under disabilities is +very small, but enough to keep up a constant irritation. No possible danger +can accrue to the Government by restoring them to eligibility to hold +office. + +I suggest for your consideration the enactment of a law to better secure +the civil rights which freedom should secure, but has not effectually +secured, to the enfranchised slave. U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 7, 1874 + +To the Senate and House of Representatives: + +Since the convening of Congress one year ago the nation has undergone a +prostration in business and industries such as has not been witnessed with +us for many years. Speculation as to the causes for this prostration might +be indulged in without profit, because as many theories would be advanced +as there would be independent writers--those who expressed their own views +without borrowing--upon the subject. Without indulging in theories as to +the cause of this prostration, therefore, I will call your attention only +to the fact, and to some plain questions as to which it would seem there +should be no disagreement. + +During this prostration two essential elements of prosperity have been most +abundant--labor and capital. Both have been largely unemployed. Where +security has been undoubted, capital has been attainable at very moderate +rates. Where labor has been wanted, it has been found in abundance, at +cheap rates compared with what--of necessaries and comforts of life--could +be purchased with the wages demanded. Two great elements of prosperity, +therefore, have not been denied us. A third might be added: Our soil and +climate are unequaled, within the limits of any contiguous territory under +one nationality, for its variety of products to feed and clothe a people +and in the amount of surplus to spare to feed less favored peoples. +Therefore, with these facts in view, it seems to me that wise +statesmanship, at this session of Congress, would dictate legislation +ignoring the past; directing in proper channels these great elements of +prosperity to any people. Debt, debt abroad, is the only element that can, +with always a sound currency, enter into our affairs to cause any continued +depression in the industries and prosperity of our people. + +A great conflict for national existence made necessary, for temporary +purposes, the raising of large sums of money from whatever source +attainable. It made it necessary, in the wisdom of Congress--and I do not +doubt their wisdom in the premises, regarding the necessity of the +times--to devise a system of national currency which it proved to be +impossible to keep on a par with the recognized currency of the civilized +world. This begot a spirit of speculation involving an extravagance and +luxury not required for the happiness or prosperity of a people, and +involving, both directly and indirectly, foreign indebtedness. The +currency, being of fluctuating value, and therefore unsafe to hold for +legitimate transactions requiring money, became a subject of speculation +within itself. These two causes, however, have involved us in a foreign +indebtedness, contracted in good faith by borrower and lender, which should +be paid in coin, and according to the bond agreed upon when the debt was +contracted--gold or its equivalent. The good faith of the Government can +not be violated toward creditors without national disgrace. But our +commerce should be encouraged; American shipbuilding and carrying capacity +increased; foreign markets sought for products of the soil and +manufactories, to the end that we may be able to pay these debts. Where a +new market can be created for the sale of our products, either of the soil, +the mine, or the manufactory, a new means is discovered of utilizing our +idle capital and labor to the advantage of the whole people. But, in my +judgment, the first step toward accomplishing this object is to secure a +currency of fixed, stable value; a currency good wherever civilization +reigns; one which, if it becomes superabundant with one people, will find a +market with some other; a currency which has as its basis the labor +necessary to produce it, which will give to it its value. Gold and silver +are now the recognized medium of exchange the civilized world over, and to +this we should return with the least practicable delay. In view of the +pledges of the American Congress when our present legal-tender system was +adopted, and debt contracted, there should be no delay--certainly no +unnecessary delay--in fixing by legislation a method by which we will +return to specie. To the accomplishment of this end I invite your special +attention. I believe firmly that there can be no prosperous and permanent +revival of business and industries until a policy is adopted--with +legislation to carry it out--looking to a return to a specie basis. It is +easy to conceive that the debtor and speculative classes may think it of +value to them to make so-called money abundant until they can throw a +portion of their burdens upon others. But even these, I believe, would be +disappointed in the result if a course should be pursued which will keep in +doubt the value of the legal-tender medium of exchange. A revival of +productive industry is needed by all classes; by none more than the holders +of property, of whatever sort, with debts to liquidate from realization +upon its sale. But admitting that these two classes of citizens are to be +benefited by expansion, would it be honest to give it? Would not the +general loss be too great to justify such relief? Would it not be just as +honest and prudent to authorize each debtor to issue his own legal-tenders +to the extent of his liabilities? Than to do this, would it not be safer, +for fear of overissues by unscrupulous creditors, to say that all debt +obligations are obliterated in the United States, and now we commence anew, +each possessing all he has at the time free from incumbrance? These +propositions are too absurd to be entertained for a moment by thinking or +honest people. Yet every delay in preparation for final resumption partakes +of this dishonesty, and is only less in degree as the hope is held out that +a convenient season will at last arrive for the good work of redeeming our +pledges to commence. It will never come, in my opinion, except by positive +action by Congress, or by national disasters which will destroy, for a time +at least, the credit of the individual and the State at large. A sound +currency might be reached by total bankruptcy and discredit of the +integrity of the nation and of individuals. I believe it is in the power of +Congress at this session to devise such legislation as will renew +confidence, revive all the industries, start us on a career of prosperity +to last for many years and to save the credit of the nation and of the +people. Steps toward the return to a specie basis are the great requisites +to this devoutly to be sought for end. There are others which I may touch +upon hereafter. + +A nation dealing in a currency below that of specie in value labors under +two great disadvantages: First, having no use for the world's acknowledged +medium of exchange, gold and silver, these are driven out of the country +because there is no need for their use; second, the medium of exchange in +use being of a fluctuating value--for, after all, it is only worth just +what it will purchase of gold and silver, metals having an intrinsic value +just in proportion to the honest labor it takes to produce them--a larger +margin must be allowed for profit by the manufacturer and producer. It is +months from the date of production to the date of realization. Interest +upon capital must be charged, and risk of fluctuation in the value of that +which is to be received in payment added. Hence high prices, acting as a +protection to the foreign producer, who receives nothing in exchange for +the products of his skill and labor except a currency good, at a stable +value, the world over It seems to me that nothing is clearer than that the +greater part of the burden of existing prostration, for the want of a sound +financial system, falls upon the working man, who must after all produce +the wealth, and the salaried man, who superintends and conducts business. +The burden falls upon them in two ways--by the deprivation of employment +and by the decreased purchasing power of their salaries. It is the duty of +Congress to devise the method of correcting the evils which are +acknowledged to exist, and not mine. But I will venture to suggest two or +three things which seem to me as absolutely necessary to a return to specie +payments, the first great requisite in a return to prosperity. The +legal-tender clause to the law authorizing the issue of currency by the +National Government should be repealed, to take effect as to all contracts +entered into after a day fixed in the repealing act--not to apply, however, +to payments of salaries by Government, or for other expenditures now +provided by law to be paid in currency, in the interval pending between +repeal and final resumption. Provision should be made by which the +Secretary of the Treasury can obtain gold as it may become necessary from +time to time from the date when specie redemption commences. To this might +and should be added a revenue sufficiently in excess of expenses to insure +an accumulation of gold in the Treasury to sustain permanent redemption. + +I commend this subject to your careful consideration, believing that a +favorable solution is attainable, and if reached by this Congress that the +present and future generations will ever gratefully remember it as their +deliverer from a thraldom of evil and disgrace. + +With resumption, free banking may be authorized with safety, giving the +same full protection to bill holders which they have under existing laws. +Indeed, I would regard free banking as essential. It would give proper +elasticity to the currency. As more currency should be required for the +transaction of legitimate business, new banks would be started, and in turn +banks would wind up their business when it was found that there was a +superabundance of currency. The experience and judgment of the people can +best decide just how much currency is required for the transaction of the +business of the country. It is unsafe to leave the settlement of this +question to Congress, the Secretary of the Treasury, or the Executive. +Congress should make the regulation under which banks may exist, but should +not make banking a monopoly by limiting the amount of redeemable paper +currency that shall be authorized. Such importance do I attach to this +subject, and so earnestly do I commend it to your attention, that I give it +prominence by introducing it at the beginning of this message. + +During the past year nothing has occurred to disturb the general friendly +and cordial relations of the United States with other powers. + +The correspondence submitted herewith between this Government and its +diplomatic representatives, as also with the representatives of other +countries, shows a satisfactory condition of all questions between the +United States and the most of those countries, and with few exceptions, to +which reference is hereafter made, the absence of any points of difference +to be adjusted. + +The notice directed by the resolution of Congress of June 17, 1874, to be +given to terminate the convention of July 17, 1858, between the United +States and Belgium has been given, and the treaty will accordingly +terminate on the 1st day of July, 1875. This convention secured to certain +Belgian vessels entering the ports of the United States exceptional +privileges which are not accorded to our own vessels. Other features of the +convention have proved satisfactory, and have tended to the cultivation of +mutually beneficial commercial intercourse and friendly relations between +the two countries. I hope that negotiations which have been invited will +result in the celebration of another treaty which may tend to the interests +of both countries. + +Our relations with China continue to be friendly. During the past year the +fear of hostilities between China and Japan, growing out of the landing of +an armed force upon the island of Formosa by the latter, has occasioned +uneasiness. It is earnestly hoped, however, that the difficulties arising +from this cause will be adjusted, and that the advance of civilization in +these Empires may not be retarded by a state of war. In consequence of the +part taken by certain citizens of the United States in this expedition, our +representatives in those countries have been instructed to impress upon the +Governments of China and Japan the firm intention of this country to +maintain strict neutrality in the event of hostilities, and to carefully +prevent any infraction of law on the part of our citizens. + +In connection with this subject I call the attention of Congress to a +generally conceded fact--that the great proportion of the Chinese +immigrants who come to our shores do not come voluntarily, to make their +homes with us and their labor productive of general prosperity, but come +under contracts with headmen, who own them almost absolutely. In a worse +form does this apply to Chinese women. Hardly a perceptible percentage of +them perform any honorable labor, but they are brought for shameful +purposes, to the disgrace of the communities where settled and to the great +demoralization of the youth of those localities. If this evil practice can +be legislated against, it will be my pleasure as well as duty to enforce +any regulation to secure so desirable an end. + +It is hoped that negotiations between the Government of Japan and the +treaty powers, looking to the further opening of the Empire and to the +removal of various restrictions upon trade and travel, may soon produce the +results desired, which can not fail to inure to the benefit of all the +parties. Having on previous occasions submitted to the consideration of +Congress the propriety of the release of the Japanese Government from the +further payment of the indemnity under the convention of October 22, 1864, +and as no action had been taken thereon, it became my duty to regard the +obligations of the convention as in force; and as the other powers +interested had received their portion of the indemnity in full, the +minister of the United States in Japan has, in behalf of this Government, +received the remainder of the amount due to the United States under the +convention of Simonosaki. I submit the propriety of applying the income of +a part, if not of the whole, of this fund to the education in the Japanese +language of a number of young men to be under obligations to serve the +Government for a specified time as interpreters at the legation and the +consulates in Japan. A limited number of Japanese youths might at the same +time be educated in our own vernacular, and mutual benefits would result to +both Governments. The importance of having our own citizens, competent and +familiar with the language of Japan, to act as interpreters and in other +capacities connected with the legation and the consulates in that country +can not readily be overestimated. + +The amount awarded to the Government of Great Britain by the mixed +commission organized under the provisions of the treaty of Washington in +settlement of the claims of British subjects arising from acts committed +between April 13, 1861, and April 9, 1865, became payable, under the terms +of the treaty, within the past year, and was paid upon the 21st day of +September, 1874. In this connection I renew my recommendation, made at the +opening of the last session of Congress, that a special court be created to +hear and determine all claims of aliens against the United States arising +from acts committed against their persons or property during the +insurrection. It appears equitable that opportunity should be offered to +citizens of other states to present their claims, as well as to those +British subjects whose claims were not admissible under the late +commission, to the early decision of some competent tribunal. To this end I +recommend the necessary legislation to organize a court to dispose of all +claims of aliens of the nature referred to in an equitable and satisfactory +manner, and to relieve Congress and the Departments from the consideration +of these questions. + +The legislation necessary to extend to the colony of Newfoundland certain +articles of the treaty of Washington of the 8th day of May, 1871, having +been had, a protocol to that effect was signed in behalf of the United +States and of Great Britain on the 28th day of May last, and was duly +proclaimed on the following day. A copy of the proclamation is submitted +herewith. + +A copy of the report of the commissioner appointed under the act of March +19, 1872, for surveying and marking the boundary between the United States +and the British possessions from the Lake of the Woods to the summit of the +Rocky Mountains is herewith transmitted. I am happy to announce that the +field work of the commission has been completed, and the entire line from +the northwest corner of the Lake of the Woods to the summit of the Rocky +Mountains has been run and marked upon the surface of the earth. It is +believed that the amount remaining unexpended of the appropriation made at +the last session of Congress will be sufficient to complete the office +work. I recommend that the authority of Congress be given to the use of the +unexpended balance of the appropriation in the completion of the work of +the commission in making its report and preparing the necessary maps. + +The court known as the Court of Commissioners of Alabama Claims, created by +an act of Congress of the last session, has organized and commenced its +work, and it is to be hoped that the claims admissible under the provisions +of the act may be speedily ascertained and paid. + +It has been deemed advisable to exercise the discretion conferred upon the +Executive at the last session by accepting the conditions required by the +Government of Turkey for the privilege of allowing citizens of the United +States to hold real estate in the former country, and by assenting to a +certain change in the jurisdiction of courts in the latter. A copy of the +proclamation upon these subjects is herewith communicated. + +There has been no material change in our relations with the independent +States of this hemisphere which were formerly under the dominion of Spain. +Marauding on the frontiers between Mexico and Texas still frequently takes +place, despite the vigilance of the civil and military authorities in that +quarter. The difficulty of checking such trespasses along the course of a +river of such length as the Rio Grande, and so often fordable, is obvious. +It is hoped that the efforts of this Government will be seconded by those +of Mexico to the effectual suppression of these acts of wrong. + +From a report upon the condition of the business before the American and +Mexican Joint Claims Commission, made by the agent on the part of the +United States, and dated October 28, 1874, it appears that of the 1,017 +claims filed on the part of citizens of the United States, 483 had been +finally decided and 75 were in the hands of the umpire, leaving 462 to be +disposed of; and of the 998 claims filed against the United States, 726 had +been finally decided, I was before the umpire, and 271 remained to be +disposed of. Since the date of such report other claims have been disposed +of, reducing somewhat the number still pending; and others have been passed +upon by the arbitrators. It has become apparent, in view of these figures +and of the fact that the work devolving on the umpire is particularly +laborious, that the commission will be unable to dispose of the entire +number of claims pending prior to the 1st day of February, 1875--the date +fixed for its expiration. Negotiations are pending looking to the securing +of the results of the decisions which have been reached and to a further +extension of the commission for a limited time, which it is confidently +hoped will suffice to bring all the business now before it to a final +close. + +The strife in the Argentine Republic is to be deplored, both on account of +the parties thereto and from the probable effects on the interests of those +engaged in the trade to that quarter, of whom the United States are among +the principal. As yet, so far as I am aware, there has been no violation of +our neutrality rights, which, as well as our duties in that respect, it +shall be my endeavor to maintain and observe. + +It is with regret I announce that no further payment has been received from +the Government of Venezuela on account of awards in favor of citizens of +the United States. Hopes have been entertained that if that Republic could +escape both foreign and civil war for a few years its great natural +resources would enable it to honor its obligations. Though it is now +understood to be at peace with other countries, a serious insurrection is +reported to be in progress in an important region of that Republic. This +may be taken advantage of as another reason to delay the payment of the +dues of our citizens. + +The deplorable strife in Cuba continues without any marked change in the +relative advantages of the contending forces. The insurrection continues, +but Spain has gained no superiority. Six years of strife give to the +insurrection a significance which can not be denied. Its duration and the +tenacity of its adherence, together with the absence of manifested power of +suppression on the part of Spain, can not be controverted, and may make +some positive steps on the part of other powers a matter of self-necessity. +I had confidently hoped at this time to be able to announce the arrangement +of some of the important questions between this Government and that of +Spain, but the negotiations have been protracted. The unhappy intestine +dissensions of Spain command our profound sympathy, and must be accepted as +perhaps a cause of some delay. An early settlement, in part at least, of +the questions between the Governments is hoped. In the meantime, awaiting +the results of immediately pending negotiations, I defer a further and +fuller communication on the subject of the relations of this country and +Spain. + +I have again to call the attention of Congress to the unsatisfactory +condition of the existing laws with reference to expatriation and the +election of nationality. Formerly, amid conflicting opinions and decisions, +it was difficult to exactly determine how far the doctrine of perpetual +allegiance was applicable to citizens of the United States. Congress by the +act of the 27th of July, 1868, asserted the abstract right of expatriation +as a fundamental principle of this Government. Notwithstanding such +assertion and the necessity of frequent application of the principle, no +legislation has been had defining what acts or formalities shall work +expatriation or when a citizen shall be deemed to have renounced or to have +lost his citizenship. The importance of such definition is obvious. The +representatives of the United States in foreign countries are continually +called upon to lend their aid and the protection of the United States to +persons concerning the good faith or the reality of whose citizenship there +is at least great question. In some cases the provisions of the treaties +furnish some guide; in others it seems left to the person claiming the +benefits of citizenship, while living in a foreign country, contributing in +no manner to the performance of the duties of a citizen of the United +States, and without intention at any time to return and undertake those +duties, to use the claims to citizenship of the United States simply as a +shield from the performance of the obligations of a citizen elsewhere. + +The status of children born of American parents residing in a foreign +country, of American women who have married aliens, of American citizens +residing abroad where such question is not regulated by treaty, are all +sources of frequent difficulty and discussion. Legislation on these and +similar questions, and particularly defining when and under what +circumstances expatriation can be accomplished or is to be presumed, is +especially needed. In this connection I earnestly call the attention of +Congress to the difficulties arising from fraudulent naturalization. The +United States wisely, freely, and liberally offers its citizenship to all +who may come in good faith to reside within its limits on their complying +with certain prescribed reasonable and simple formalities and conditions. +Among the highest duties of the Government is that to afford firm, +sufficient, and equal protection to all its citizens, whether native born +or naturalized. Care should be taken that a right carrying with it such +support from the Government should not be fraudulently obtained, and should +be bestowed only upon full proof of a compliance with the law; and yet +frequent instances are brought to the attention of the Government of +illegal and fraudulent naturalization and of the unauthorized use of +certificates thus improperly obtained. In some cases the fraudulent +character of the naturalization has appeared upon the face of the +certificate itself; in others examination discloses that the holder had not +complied with the law, and in others certificates have been obtained where +the persons holding them not only were not entitled to be naturalized, but +had not even been within the United States at the time of the pretended +naturalization. Instances of each of these classes of fraud are discovered +at our legations, where the certificates of naturalization are presented +either for the purpose of obtaining passports or in demanding the +protection of the legation. When the fraud is apparent on the face of such +certificates, they are taken up by the representatives of the Government +and forwarded to the Department of State. But even then the record of the +court in which the fraudulent naturalization occurred remains, and +duplicate certificates are readily obtainable. Upon the presentation of +these for the issue of passports or in demanding protection of the +Government, the fraud sometimes escapes notice, and such certificates are +not infrequently used in transactions of business to the deception and +injury of innocent parties. Without placing any additional obstacles in the +way of the obtainment of citizenship by the worthy and well-intentioned +foreigner who comes in good faith to cast his lot with ours, I earnestly +recommend further legislation to punish fraudulent naturalization and to +secure the ready cancellation of the record of every naturalization made in +fraud. + +Since my last annual message the exchange has been made of the ratification +of treaties of extradition with Belgium, Ecuador, Peru, and Salvador; also +of a treaty of commerce and navigation with Peru, and one of commerce and +consular privileges with Salvador; all of which have been duly proclaimed, +as has also a declaration with Russia with reference to trade-marks. + +The report of the Secretary of the Treasury, which by law is made directly +to Congress, and forms no part of this message, will show the receipts and +expenditures of the Government for the last fiscal year, the amount +received from each source of revenue, and the amount paid out for each of +the Departments of Government. It will be observed from this report that +the amount of receipts over expenditures has been but $2,344,882.30 for the +fiscal year ending June 30, 1874, and that for the current fiscal year the +estimated receipts over expenditures will not much exceed $9,000,000. In +view of the large national debt existing and the obligation to add 1 per +cent per annum to the sinking fund, a sum amounting now to over $34,000,000 +per annum, I submit whether revenues should not be increased or +expenditures diminished to reach this amount of surplus. Not to provide for +the sinking fund is a partial failure to comply with the contracts and +obligations of the Government. At the last session of Congress a very +considerable reduction was made in rates of taxation and in the number of +articles submitted to taxation; the question may well be asked, whether or +not, in some instances, unwisely. In connection with this subject, too, I +venture the opinion that the means of collecting the revenue, especially +from imports, have been so embarrassed by legislation as to make it +questionable whether or not large amounts are not lost by failure to +collect, to the direct loss of the Treasury and to the prejudice of the +interests of honest importers and taxpayers. + +The Secretary of the Treasury in his report favors legislation looking to +an early return to specie payments, thus supporting views previously +expressed in this message. He also recommends economy in appropriations; +calls attention to the loss of revenue from repealing the tax on tea and +coffee, without benefit to the consumer; recommends an increase of 10 cents +a gallon on whisky, and, further, that no modification be made in the +banking and currency bill passed at the last session of Congress, unless +modification should become necessary by reason of the adoption of measures +for returning to specie payments. In these recommendations I cordially +join. + +I would suggest to Congress the propriety of readjusting the tariff so as +to increase the revenue, and at the same time decrease the number of +articles upon which duties are levied. Those articles which enter into our +manufactures and are not produced at home, it seems to me, should be +entered free. Those articles of manufacture which we produce a constituent +part of, but do not produce the whole, that part which we do not produce +should enter free also. I will instance fine wool, dyes, etc. These +articles must be imported to form a part of the manufacture of the higher +grades of woolen goods. Chemicals used as dyes, compounded in medicines, +and used in various ways in manufactures come under this class. The +introduction free of duty of such wools as we do not produce would +stimulate the manufacture of goods requiring the use of those we do +produce, and therefore would be a benefit to home production. There are +many articles entering into "home manufactures" which we do not produce +ourselves the tariff upon which increases the cost of producing the +manufactured article. All corrections in this regard are in the direction +of bringing labor and capital in harmony with each other and of supplying +one of the elements of prosperity so much needed. + +The report of the Secretary of War herewith attached, and forming a part of +this message, gives all the information concerning the operations, wants, +and necessities of the Army, and contains many suggestions and +recommendations which I commend to your special attention. + +There is no class of Government employees who are harder worked than the +Army--officers and men; none who perform their tasks more cheerfully and +efficiently and under circumstances of greater privations and hardships. + +Legislation is desirable to render more efficient this branch of the public +service. All the recommendations of the Secretary of War I regard as +judicious, and I especially commend to your attention the following: The +consolidation of Government arsenals; the restoration of mileage to +officers traveling under orders; the exemption of money received from the +sale of subsistence stores from being covered into the Treasury; the use of +appropriations for the purchase of subsistence stores without waiting for +the beginning of the fiscal year for which the appropriation is made; for +additional appropriations for the collection of torpedo material; for +increased appropriations for the manufacture of arms; for relieving the +various States from indebtedness for arms charged to them during the +rebellion; for dropping officers from the rolls of the Army without trial +for the offense of drawing pay more than once for the same period; for the +discouragement of the plan to pay soldiers by cheek, and for the +establishment of a professorship of rhetoric and English literature at West +Point. The reasons for these recommendations are obvious, and are set forth +sufficiently in the reports attached. I also recommend that the status of +the staff corps of the Army be fixed, where this has not already been done, +so that promotions may be made and vacancies filled as they occur in each +grade when reduced below the number to be fixed by law. The necessity for +such legislation is specially felt now in the Pay Department. The number of +officers in that department is below the number adequate to the performance +of the duties required of them by law. + +The efficiency of the Navy has been largely increased during the last year. +Under the impulse of the foreign complications which threatened us at the +commencement of the last session of Congress, most of our efficient wooden +ships were put in condition for immediate service, and the repairs of our +ironclad fleet were pushed with the utmost vigor. The result is that most +of these are now in an effective state and need only to be manned and put +in commission to go at once into service. + +Some of the new sloops authorized by Congress are already in commission, +and most of the remainder are launched and wait only the completion of +their machinery to enable them to take their places as part of our +effective force. + +Two iron torpedo ships have been completed during the last year, and four +of our large double-turreted ironclads are now undergoing repairs. When +these are finished, everything that is useful of our Navy, as now +authorized, will be in condition for service, and with the advance in the +science of torpedo warfare the American Navy, comparatively small as it is, +will be found at any time powerful for the purposes of a peaceful nation. + +Much has been accomplished during the year in aid of science and to +increase the sum of general knowledge and further the interests of commerce +and civilization. Extensive and much-needed soundings have been made for +hydrographic purposes and to fix the proper routes of ocean telegraphs. +Further surveys of the great Isthmus have been undertaken and completed, +and two vessels of the Navy are now employed, in conjunction with those of +England, France, Germany, and Russia, in observations connected with the +transit of Venus, so useful and interesting to the scientific world. + +The estimates for this branch of the public service do not differ +materially from those of last year, those for the general support of the +service being somewhat less and those for permanent improvements at the +various stations rather larger than the corresponding estimate made a year +ago. The regular maintenance and a steady increase in the efficiency of +this most important arm in proportion to the growth of our maritime +intercourse and interests is recommended to the attention of Congress. + +The use of the Navy in time of peace might be further utilized by a direct +authorization of the employment of naval vessels in explorations and +surveys of the supposed navigable waters of other nationalities on this +continent, especially the tributaries of the two great rivers of South +America, the Orinoco and the Amazon. Nothing prevents, under existing laws, +such exploration, except that expenditures must be made in such expeditions +beyond those usually provided for in the appropriations. The field +designated is unquestionably one of interest and one capable of large +development of commercial interests--advantageous to the peoples reached +and to those who may establish relations with them. + +Education of the people entitled to exercise the right of franchise I +regard essential to general prosperity everywhere, and especially so in +republics, where birth, education, or previous condition does not enter +into account in giving suffrage. Next to the public school, the post-office +is the great agent of education over our vast territory. The rapidity with +which new sections are being settled, thus increasing the carrying of mails +in a more rapid ratio than the increase of receipts, is not alarming. The +report of the Postmaster-General herewith attached shows that there was an +increase of revenue in his Department in 1873 over the previous year of +$1,674,411, and an increase of cost of carrying the mails and paying +employees of $3,041,468.91. The report of the Postmaster-General gives +interesting statistics of his Department, and compares them with the +corresponding statistics of a year ago, showing a growth in every branch of +the Department. + +A postal convention has been concluded with New South Wales, an exchange of +postal cards established with Switzerland, and the negotiations pending for +several years past with France have been terminated in a convention with +that country, which went into effect last August. + +An international postal congress was convened in Berne, Switzerland, in +September last, at which the United States was represented by an officer of +the Post-Office Department of much experience and of qualification for the +position. A convention for the establishment of an international postal +union was agreed upon and signed by the delegates of the countries +represented, subject to the approval of the proper authorities of those +countries. + +I respectfully direct your attention to the report of the +Postmaster-General and to his suggestions in regard to an equitable +adjustment of the question of compensation to railroads for carrying the +mails. + +Your attention will be drawn to the unsettled condition of affairs in some +of the Southern States. + +On the 14th of September last the governor of Louisiana called upon me, as +provided by the Constitution and laws of the United States, to aid in +suppressing domestic violence in that State. This call was made in view of +a proclamation issued on that day by D. B. Penn, claiming that he was +elected lieutenant-governor in 1872, and calling upon the militia of the +State to arm, assemble, and drive from power the usurpers, as he designated +the officers of the State government. On the next day I issued my +proclamation commanding the insurgents to disperse within five days from +the date thereof, and subsequently learned that on that day they had taken +forcible possession of the statehouse. Steps were taken by me to support +the existing and recognized State government, but before the expiration of +the five days the insurrectionary movement was practically abandoned, and +the officers of the State government, with some minor exceptions, resumed +their powers and duties. Considering that the present State administration +of Louisiana has been the only government in that State for nearly two +years; that it has been tacitly acknowledged and acquiesced in as such by +Congress, and more than once expressly recognized by me, I regarded it as +my clear duty, when legally called upon for that purpose, to prevent its +overthrow by an armed mob under pretense of fraud and irregularity in the +election of 1872. I have heretofore called the attention of Congress to +this subject, stating that on account of the frauds and forgeries committed +at said election, and because it appears that the returns thereof were +never legally canvassed, it was impossible to tell thereby who were chosen; +but from the best sources of information at my command I have always +believed that the present State officers received a majority of the legal +votes actually cast at that election. I repeat what I said in my special +message of February 23, 1873, that in the event of no action by Congress I +must continue to recognize the government heretofore recognized by me. + +I regret to say that with preparations for the late election decided +indications appeared in some localities in the Southern States of a +determination, by acts of violence and intimidation, to deprive citizens of +the freedom of the ballot because of their political opinions. Bands of +men, masked and armed, made their appearance; White Leagues and other +societies were formed; large quantities of arms and ammunition were +imported and distributed to these organizations; military drills, with +menacing demonstrations, were held, and with all these murders enough were +committed to spread terror among those whose political action was to be +suppressed, if possible, by these intolerant and criminal proceedings. In +some places colored laborers were compelled to vote according to the wishes +of their employers, under threats of discharge if they acted otherwise; and +there are too many instances in which, when these threats were disregarded, +they were remorselessly executed by those who made them. I understand that +the fifteenth amendment to the Constitution was made to prevent this and a +like state of things, and the act of May 31, 1870, with amendments, was +passed to enforce its provisions, the object of both being to guarantee to +all citizens the right to vote and to protect them in the free enjoyment of +that right. Enjoined by the Constitution "to take care that the laws be +faithfully executed," and convinced by undoubted evidence that violations +of said act had been committed and that a widespread and flagrant disregard +of it was contemplated, the proper officers were instructed to prosecute +the offenders, and troops were stationed at convenient points to aid these +officers, if necessary, in the performance of their official duties. +Complaints are made of this interference by Federal authority; but if said +amendment and act do not provide for such interference under the +circumstances as above stated, then they are without meaning, force, or +effect, and the whole scheme of colored enfranchisement is worse than +mockery and little better than a crime. Possibly Congress may find it due +to truth and justice to ascertain, by means of a committee, whether the +alleged wrongs to colored citizens for political purposes are real or the +reports thereof were manufactured for the occasion. + +The whole number of troops in the States of Louisiana, Alabama, Georgia, +Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, +Mississippi, Maryland, and Virginia at the time of the election was 4,082. +This embraces the garrisons of all the forts from the Delaware to the Gulf +of Mexico. + +Another trouble has arisen in Arkansas. Article 13 of the constitution of +that State (which was adopted in 1868, and upon the approval of which by +Congress the State was restored to representation as one of the States of +the Union) provides in effect that before any amendments proposed to this +constitution shall become a part thereof they shall be passed by two +successive assemblies and then submitted to and ratified by a majority of +the electors of the State voting thereon. On the 11th of May, 1874, the +governor convened an extra session of the general assembly of the State, +which on the 18th of the same month passed an act providing for a +convention to frame a new constitution. Pursuant to this act, and at an +election held on the 30th of June, 1874, the convention was approved, and +delegates were chosen thereto, who assembled on the 14th of last July and +framed a new constitution, the schedule of which provided for the election +of an entire new set of State officers in a manner contrary to the then +existing election laws of the State. On the 13th of October, 1874, this +constitution, as therein provided, was submitted to the people for their +approval or rejection, and according to the election returns was approved +by a large majority of those qualified to vote thereon; and at the same +election persons were chosen to fill all the State, county, and township +offices. The governor elected in 1872 for the term of four years turned +over his office to the governor chosen under the new constitution, +whereupon the lieutenant-governor, also elected in 1872 for a term of four +years, claiming to act as governor, and alleging that said proceedings by +which the new constitution was made and a new set of officers elected were +unconstitutional, illegal, and void, called upon me, as provided in section +4, Article IV, of the Constitution, to protect the State against domestic +violence. As Congress is now investigating the political affairs of +Arkansas, I have declined to interfere. + +The whole subject of Executive interference with the affairs of a State is +repugnant to public opinion, to the feelings of those who, from their +official capacity, must be used in such interposition, and to him or those +who must direct. Unless most clearly on the side of law, such interference +becomes a crime; with the law to support it, it is condemned without a +heating. I desire, therefore, that all necessity for Executive direction in +local affairs may become unnecessary and obsolete. I invite the attention, +not of Congress, but of the people of the United States, to the causes and +effects of these unhappy questions. Is there not a disposition on one side +to magnify wrongs and outrages, and on the other side to belittle them or +justify them? If public opinion could be directed to a correct survey of +what is and to rebuking wrong and aiding the proper authorities in +punishing it, a better state of feeling would be inculcated, and the sooner +we would have that peace which would leave the States free indeed to +regulate their own domestic affairs. I believe on the part of our citizens +of the Southern States--the better part of them--there is a disposition to +be law abiding, and to do no violence either to individuals or to the laws +existing. But do they do right in ignoring the existence of violence and +bloodshed in resistance to constituted authority? I sympathize with their +prostrate condition, and would do all in my power to relieve them, +acknowledging that in some instances they have had most trying governments +to live under, and very oppressive ones in the way of taxation for nominal +improvements, not giving benefits equal to the hardships imposed. But can +they proclaim themselves entirely irresponsible for this condition? They +can not. Violence has been rampant in some localities, and has either been +justified or denied by those who could have prevented it. The theory is +even raised that there is to be no further interference on the part of the +General Government to protect citizens within a State where the State +authorities fail to give protection. This is a great mistake. While I +remain Executive all the laws of Congress and the provisions of the +Constitution, including the recent amendments added thereto, will be +enforced with rigor, but with regret that they should have added one jot or +tittle to Executive duties or powers. Let there be fairness in the +discussion of Southern questions, the advocates of both or all political +parties giving honest, truthful reports of occurrences, condemning the +wrong and upholding the tight, and soon all will be well. Under existing +conditions the negro votes the Republican ticket because he knows his +friends are of that party. Many a good citizen votes the opposite, not +because he agrees with the great principles of state which separate +parties, but because, generally, he is opposed to negro rule. This is a +most delusive cry. Treat the negro as a citizen and a voter, as he is and +must remain, and soon parties will be divided, not on the color line, but +on principle. Then we shall have no complaint of sectional interference. + +The report of the Attorney-General contains valuable recommendations +relating to the administration of justice in the courts of the United +States, to which I invite your attention. + +I respectfully suggest to Congress the propriety of increasing the number +of judicial districts in the United States to eleven (the present number +being nine) and the creation of two additional judgeships. The territory to +be traversed by the circuit judges is so great and the business of the +courts so steadily increasing that it is growing more and more impossible +for them to keep up with the business requiring their attention. Whether +this would involve the necessity of adding two more justices of the Supreme +Court to the present number I submit to the judgment of Congress. + +The attention of Congress is invited to the report of the Secretary of the +Interior and to the legislation asked for by him. The domestic interests of +the people are more intimately connected with this Department than with +either of the other Departments of Government. Its duties have been added +to from time to time until they have become so onerous that without the +most perfect system and order it will be impossible for any Secretary of +the Interior to keep trace of all official transactions having his sanction +and done in his name, and for which he is held personally responsible. + +The policy adopted for the management of Indian affairs, known as the peace +policy, has been adhered to with most beneficial results. It is confidently +hoped that a few years more will relieve our frontiers from danger of +Indian depredations. + +I commend the recommendation of the Secretary for the extension of the +homestead laws to the Indians and for some sort of Territorial government +for the Indian Territory. A great majority of the Indians occupying this +Territory are believed yet to be incapable of maintaining their rights +against the more civilized and enlightened white man. Any Territorial form +of government given them, therefore, should protect them in their homes and +property for a period of at least twenty years, and before its final +adoption should be ratified by a majority of those affected. + +The report of the Secretary of the Interior herewith attached gives much +interesting statistical information, which I abstain from giving an +abstract of, but refer you to the report itself. + +The act of Congress providing the oath which pensioners must subscribe to +before drawing their pensions cuts off from this bounty a few survivors of +the War of 1812 residing in the Southern States. I recommend the +restoration of this bounty to all such. The number of persons whose names +would thus be restored to the list of pensioners is not large. They are all +old persons, who could have taken no part in the rebellion, and the +services for which they were awarded pensions were in defense of the whole +country. + +The report of the Commissioner of Agriculture herewith contains suggestions +of much interest to the general public, and refers to the sly approaching +Centennial and the part his Department is ready to take in it. I feel that +the nation at large is interested in having this exposition a success, and +commend to Congress such action as will secure a greater general interest +in it. Already many foreign nations have signified their intention to be +represented at it, and it may be expected that every civilized nation will +be represented. + +The rules adopted to improve the civil service of the Government have been +adhered to as closely as has been practicable with the opposition with +which they meet. The effect, I believe, has been beneficial on the whole, +and has tended to the elevation of the service. But it is impracticable to +maintain them without direct and positive support of Congress. Generally +the support which this reform receives is from those who give it their +support only to find fault when the rules are apparently departed from. +Removals from office without preferring charges against parties removed are +frequently cited as departures from the rules adopted, and the retention of +those against whom charges are made by irresponsible persons and without +good grounds is also often condemned as a violation of them. Under these +circumstances, therefore, I announce that if Congress adjourns without +positive legislation on the subject of "civil-service reform" I will regard +such action as a disapproval of the system, and will abandon it, except so +far as to require examinations for certain appointees, to determine their +fitness. Competitive examinations will be abandoned. + +The gentlemen who have given their services, without compensation, as +members of the board to devise rules and regulations for the government of +the civil service of the country have shown much zeal and earnestness in +their work, and to them, as well as to myself, it will be a source of +mortification if it is to be thrown away. But I repeat that it is +impossible to carry this system to a successful issue without general +approval and assistance and positive law to support it. + +I have stated that three elements of prosperity to the nation--capital, +labor, skilled and unskilled, and products of the soil--still remain with +us. To direct the employment of these is a problem deserving the most +serious attention of Congress. If employment can be given to all the labor +offering itself, prosperity necessarily follows. I have expressed the +opinion, and repeat it, that the first requisite to the accomplishment of +this end is the substitution of a sound currency in place of one of a +fluctuating value. This secured, there are many interests that might be +fostered to the great profit of both labor and capital. How to induce +capital to employ labor is the question. The subject of cheap +transportation has occupied the attention of Congress. Much new light on +this question will without doubt be given by the committee appointed by the +last Congress to investigate and report upon this subject. + +A revival of shipbuilding, and particularly of iron steamship building, is +of vast importance to our national prosperity. The United States is now +paying over $100,000,000 per annum for freights and passage on foreign +ships--to be carried abroad and expended in the employment and support of +other peoples--beyond a fair percentage of what should go to foreign +vessels, estimating on the tonnage and travel of each respectively. It is +to be regretted that this disparity in the carrying trade exists, and to +correct it I would be willing to see a great departure from the usual +course of Government in supporting what might usually be termed private +enterprise. I would not suggest as a remedy direct subsidy to American +steamship lines, but I would suggest the direct offer of ample compensation +for carrying the mails between Atlantic Seaboard cities and the Continent +on American-owned and American-built steamers, and would extend this +liberality to vessels carrying the mails to South American States and to +Central America and Mexico, and would pursue the same policy from our +Pacific seaports to foreign seaports on the Pacific. It might be demanded +that vessels built for this service should come up to a standard fixed by +legislation in tonnage, speed, and all other qualities, looking to the +possibility of Government requiring them at some time for war purposes. The +right also of taking possession of them in such emergency should be +guarded. + +I offer these suggestions, believing them worthy of consideration, in all +seriousness, affecting all sections and all interests alike. If anything +better can be done to direct the country into a course of general +prosperity, no one will be more ready than I to second the plan. + +Forwarded herewith will be found the report of the commissioners appointed +under an act of Congress approved June 20, 1874, to wind up the affairs of +the District government. It will be seen from the report that the net debt +of the District of Columbia, less securities on hand and available, is: + +Bonded debt issued prior to July 1, 1874 - - $8,883,940.93 + +3.65 bonds, act of Congress June 20, 1874 - - 2,088,168.73 + +Certificates of the board of audit - - 4,770,558.45 + +- - + +*** + +State of the Union Address +Ulysses S. Grant +December 7, 1875 + +To the Senate and House of Representatives: + +In submitting my seventh annual message to Congress, in this centennial +year of our national existence as a free and independent people, it affords +me great pleasure to recur to the advancement that has been made from the +time of the colonies, one hundred years ago. We were then a people +numbering only 3,000,000. Now we number more than 40,000,000. Then +industries were confined almost exclusively to the tillage of the soil. Now +manufactories absorb much of the labor of the country. + +Our liberties remain unimpaired; the bondmen have been freed from slavery; +we have become possessed of the respect, if not the friendship, of all +civilized nations. Our progress has been great in all the arts--in science, +agriculture, commerce, navigation, mining, mechanics, law, medicine, etc.; +and in general education the progress is likewise encouraging. Our thirteen +States have become thirty-eight, including Colorado (which has taken the +initiatory steps to become a State), and eight Territories, including the +Indian Territory and Alaska, and excluding Colorado, making a territory +extending from the Atlantic to the Pacific. On the south we have extended +to the Gulf of Mexico, and in the west from the Mississippi to the +Pacific. + +One hundred years ago the cotton gin, the steamship, the railroad, the +telegraph, the reaping, sewing, and modern printing machines, and numerous +other inventions of scarcely less value to our business and happiness were +entirely unknown. + +In 1776 manufactories scarcely existed even in name in all this vast +territory. In 1870 more than 2,000,000 persons were employed in +manufactories, producing more than $2,100,000,000 of products in amount +annually, nearly equal to our national debt. From nearly the whole of the +population of 1776 being engaged in the one occupation of agriculture, in +1870 so numerous and diversified had become the occupation of our people +that less than 6,000,000 out of more than 40,000,000 were so engaged. The +extraordinary effect produced in our country by a resort to diversified +occupations has built a market for the products of fertile lands distant +from the seaboard and the markets of the world. + +The American system of locating various and extensive manufactories next to +the plow and the pasture, and adding connecting railroads and steamboats, +has produced in our distant interior country a result noticeable by the +intelligent portions all all commercial nations. The ingenuity and skill of +American mechanics have been demonstrated at home and abroad in a manner +most flattering to their pride. But for the extraordinary genius and +ability of our mechanics, the achievements of our agriculturists, +manufacturers, and transporters throughout the country would have been +impossible of attainment. + +The progress of the miner has also been great. Of coal our production has +small; now many millions of tons are mined annually. So with iron, which +formed scarcely an appreciable part of our products half a century ago, we +now produce more than the world consumed at the beginning of our national +existence. Lead, zinc, and copper, from being articles of import, we may +expect to be large exporters of in the near future. The development of gold +and silver mines in the United States and Territories has not only been +remarkable, but has had a large influence upon the business of all +commercial nations. Our merchants in the last hundred years have had a +success and have established a reputation for enterprise, sagacity, +progress, and integrity unsurpassed by peoples of older nationalities. This +"good name" is not confined to their homes, but goes out upon every sea and +into every port where commerce enters. With equal pride we can point to our +progress in all of the learned professions. + +As we are now about to enter upon our second centennial--commenting our +manhood as a nation--it is well to look back upon the past and study what +will be best to preserve and advance our future greatness From the fall of +Adam for his transgression to the present day no nation has ever been free +from threatened danger to its prosperity and happiness. We should look to +the dangers threatening us, and remedy them so far as lies in our power. We +are a republic whereof one man is as good as another before the law. Under +such a form of government it is of the greatest importance that all should +be possessed of education and intelligence enough to cast a vote with a +right understanding of its meaning. A large association of ignorant men can +not for any considerable period oppose a successful resistance to tyranny +and oppression from the educated few, but will inevitably sink into +acquiescence to the will of intelligence, whether directed by the demagogue +or by priestcraft. Hence the education of the masses becomes of the first +necessity for the preservation of our institutions. They are worth +preserving, because they have secured the greatest good to the greatest +proportion of the population of any form of government yet devised. All +other forms of government approach it just in proportion to the general +diffusion of education and independence of thought and action. As the +primary step, therefore, to our advancement in all that has marked our +progress in the past century, I suggest for your earnest consideration, and +most earnestly recommend it, that a constitutional amendment be submitted +to the legislatures of the several States for ratification, making it the +duty of each of the several States to establish and forever maintain free +public schools adequate to the education of all the children in the +rudimentary branches within their respective limits, irrespective of sex, +color, birthplace, or religions; forbidding the teaching in said schools of +religious, atheistic, or pagan tenets; and prohibiting the granting of any +school funds or school taxes, or any part thereof, either by legislative, +municipal, or other authority, for the benefit or in aid, directly or +indirectly, of any religious sect or denomination, or in aid or for the +benefit of any other object of any nature or kind whatever. + +In connection with this important question I would also call your attention +to the importance of correcting an evil that, if permitted to continue, +will probably lead to great trouble in our land before the close of the +nineteenth century. It is the accumulation of vast amounts of untaxed +church property. + +In 1850, I believe, the church property of the United States which paid no +tax, municipal or State, amounted to about $83,000,000. In 1860 the amount +had doubled; in 1875 it is about $1,000,000,000. By 1900, without check, it +is safe to say this property will reach a sum exceeding $3,000,000,000. So +vast a sum, receiving all the protection and benefits of Government without +bearing its proportion of the burdens and expenses of the same, will not be +looked upon acquiescently by those who have to pay the taxes. In a growing +country, where real estate enhances so rapidly with time as in the United +States, there is scarcely a limit to the wealth that may be acquired by +corporations, religious or otherwise, if allowed to retain real estate +without taxation. The contemplation of so vast a property as here alluded +to, without taxation, may lead to sequestration without constitutional +authority and through blood. + +I would suggest the taxation of all property equally, whether church or +corporation, exempting only the last resting place of the dead and +possibly, with proper restrictions, church edifices. + +Our relations with most of the foreign powers continue on a satisfactory +and friendly footing. + +Increased intercourse, the extension of commerce, and the cultivation of +mutual interests have steadily improved our relations with the large +majority of the powers of the world, rendering practicable the peaceful +solution of questions which from time to time necessarily arise, leaving +few which demand extended or particular notice. + +The correspondence of the Department of State with our diplomatic +representatives abroad is transmitted herewith. + +I am happy to announce the passage of an act by the General Cortes of +Portugal, proclaimed since the adjournment of Congress, for the abolition +of servitude in the Portuguese colonies. It is to be hoped that such +legislation may be another step toward the great consummation to be +reached, when no man shall be permitted, directly or indirectly, under any +guise, excuse, or form of law, to hold his fellow-man in bondage. I am of +opinion also that it is the duty of the United States, as contributing +toward that end, and required by the spirit of the age in which we live, to +provide by suitable legislation that no citizen of the United States shall +hold slaves as property in any other country or be interested therein. + +Chile has made reparation in the case of the whale ship Good Return, seized +without sufficient cause upward of forty years ago. Though she had hitherto +denied her accountability, the denial was never acquiesced in by this +Government, and the justice of the claim has been so earnestly contended +for that it has been gratifying that she should have at last acknowledged +it. + +The arbitrator in the case of the United States steamer Montijo, for the +seizure and detention of which the Government of the United States of +Colombia was held accountable, has decided in favor of the claim. This +decision has settled a question which had been pending for several years, +and which, while it continued open, might more or less disturb the good +understanding which it is desirable should be maintained between the two +Republics. + +A reciprocity treaty with the King of the Hawaiian Islands was concluded +some months since. As it contains a stipulation that it shall not take +effect until Congress shall enact the proper legislation for that purpose, +copies of the instrument are herewith submitted, in order that, if such +should be the pleasure of Congress, the necessary legislation upon the +subject may be adopted. + +In March last an arrangement was made, through Mr. Cushing, our minister in +Madrid, with the Spanish Government for the payment by the latter to the +United States of the sum of $80,000 in coin, for the purpose of the relief +of the families or persons of the ship's company and certain passengers of +the Virginius. This sum was to have been paid in three installments at two +months each. It is due to the Spanish Government that I should state that +the payments were fully and spontaneously anticipated by that Government, +and that the whole amount was paid within but a few days more than two +months from the date of the agreement, a copy of which is herewith +transmitted. In pursuance of the terms of the adjustment, I have directed +the distribution of the amount among the parties entitled thereto, +including the ship's company and such of the passengers as were American +citizens. Payments are made accordingly, on the application by the parties +entitled thereto. + +The past year has furnished no evidence of an approaching termination of +the ruinous conflict which has been raging for seven years in the +neighboring island of Cuba. The same disregard of the laws of civilized +warfare and of the just demands of humanity which has heretofore called +forth expressions of condemnation from the nations of Christendom has +continued to blacken the sad scene. Desolation, ruin, and pillage are +pervading the rich fields of one of the most fertile and productive regions +of the earth, and the incendiary's torch, firing plantations and valuable +factories and buildings, is the agent marking the alternate advance or +retreat of contending parties. + +The protracted continuance of this strife seriously affects the interests +of all commercial nations, but those of the United States more than others, +by reason of close proximity, its larger trade and intercourse with Cuba, +and the frequent and intimate personal and social relations which have +grown up between its citizens and those of the island. Moreover, the +property of our citizens in Cuba is large, and is rendered insecure and +depreciated in value and in capacity of production by the continuance of +the strife and the unnatural mode of its conduct. The same is true, +differing only in degree, with respect to the interests and people of other +nations; and the absence of any reasonable assurance of a near termination +of the conflict must of necessity soon compel the States thus suffering to +consider what the interests of their own people and their duty toward +themselves may demand. + +I have hoped that Spain would be enabled to establish peace in her colony, +to afford security to the property and the interests of our citizens, and +allow legitimate scope to trade and commerce and the natural productions of +the island. Because of this hope, and from an extreme reluctance to +interfere in the most remote manner in the affairs of another and a +friendly nation, especially of one whose sympathy and friendship in the +struggling infancy of our own existence must ever be remembered with +gratitude, I have patiently and anxiously waited the progress of events. +Our own civil conflict is too recent for us not to consider the +difficulties which surround a government distracted by a dynastic rebellion +at home at the same time that it has to cope with a separate insurrection +in a distant colony. But whatever causes may have produced the situation +which so grievously affects our interests, it exists, with all its +attendant evils operating directly upon this country and its people. Thus +far all the efforts of Spain have proved abortive, and time has marked no +improvement in the situation. The armed bands of either side now occupy +nearly the same ground as in the past, with the difference, from time to +time, of more lives sacrificed, more property destroyed, and wider extents +of fertile and productive fields and more and more of valuable property +constantly wantonly sacrificed to the incendiary's torch. + +In contests of this nature, where a considerable body of people who have +attempted to free themselves of the control of the superior government have +reached such point in occupation of territory, in power, and in general +organization as to constitute in fact a body politic; having a government +in substance as well as in name; possessed of the elements of stability and +equipped with the machinery for the administration of internal policy and +the execution of its laws; prepared and able to administer justice at home, +as well as in its dealings with other powers, it is within the province of +those other powers to recognize its existence as a new and independent +nation. In such cases other nations simply deal with an actually existing +condition of things, and recognize as one of the powers of the earth that +body politic which, possessing the necessary elements, has in fact become a +new power. In a word, the creation of a new state is a fact. + +To establish the condition of things essential to the recognition of this +fact there must be a people occupying a known territory, united under some +known and defined form of government, acknowledged by those subject +thereto, in which the functions of government are administered by usual +methods, competent to mete out justice to citizens and strangers, to afford +remedies for public and for private wrongs, and able to assume the +correlative international obligations and capable of performing the +corresponding international duties resulting from its acquisition of the +rights of sovereignty. A power should exist complete in its organization, +ready to take and able to maintain its place among the nations of the +earth. + +While conscious that the insurrection in Cuba has shown a strength and +endurance which make it at least doubtful whether it be in the power of +Spain to subdue it, it seems unquestionable that no such civil organization +exists which may be recognized as an independent government capable of +performing its international obligations and entitled to be treated as one +of the powers of the earth. A recognition under such circumstances would be +inconsistent with the facts, and would compel the power granting it soon to +support by force the government to which it had really given its only claim +of existence. In my judgment the United States should adhere to the policy +and the principles which have heretofore been its sure and safe guides in +like contests between revolted colonies and their mother country, and, +acting only upon the clearest evidence, should avoid any possibility of +suspicion or of imputation. + +A recognition of the independence of Cuba being, in my opinion, +impracticable and indefensible, the question which next presents itself is +that of the recognition of belligerent rights in the parties to the +contest. + +In a former message to Congress I had occasion to consider this question, +and reached the conclusion that the conflict in Cuba, dreadful and +devastating as were its incidents, did not rise to the fearful dignity of +war. Regarding it now, after this lapse of time, I am unable to see that +any notable success or any marked or real advance on the part of the +insurgents has essentially changed the character of the contest. It has +acquired greater age, but not greater or more formidable proportions. It is +possible that the acts of foreign powers, and even acts of Spain herself, +of this very nature, might be pointed to in defense of such recognition. +But now, as in its past history, the United States should carefully avoid +the false lights which might lead it into the mazes of doubtful law and of +questionable propriety, and adhere rigidly and sternly to the rule, which +has been its guide, of doing only that which is right and honest and of +good report. The question of according or of withholding rights of +belligerency must be judged in every case in view of the particular +attending facts. Unless justified by necessity, it is always, and justly, +regarded as an unfriendly act and a gratuitous demonstration of moral +support to the rebellion. It is necessary, and it is required, when the +interests and rights of another government or of its people are so far +affected by a pending civil conflict as to require a definition of its +relations to the parties thereto. But this conflict must be one which will +be recognized in the sense of international law as war. Belligerence, too, +is a fact. The mere existence of contending armed bodies and their +occasional conflicts do not constitute war in the sense referred to. +Applying to the existing condition of affairs in Cuba the tests recognized +by publicists and writers on international law, and which have been +observed by nations of dignity, honesty, and power when free from sensitive +or selfish and unworthy motives, I fail to find in the insurrection the +existence of such a substantial political organization, real, palpable, and +manifest to the world, having the forms and capable of the ordinary +functions of government toward its own people and to other states, with +courts for the administration of justice, with a local habitation, +possessing such organization of force, such material, such occupation of +territory, as to take the contest out of the category of a mere rebellious +insurrection or occasional skirmishes and place it on the terrible footing +of war, to which a recognition of belligerency would aim to elevate it. The +contest, moreover, is solely on land; the insurrection has not possessed +itself of a single seaport whence it may send forth its flag, nor has it +any means of communication with foreign powers except through the military +lines of its adversaries. No apprehension of any of those sudden and +difficult complications which a war upon the ocean is apt to precipitate +upon the vessels, both commercial and national, and upon the consular +officers of other powers calls for the definition of their relations to the +parties to the contest. Considered as a question of expediency, I regard +the accordance of belligerent rights still to be as unwise and premature as +I regard it to be, at present, indefensible as a measure of right. Such +recognition entails upon the country according the rights which flow from +it difficult and complicated duties, and requires the exaction from the +contending parties of the strict observance of their rights and +obligations; it confers the right of search upon the high seas by vessels +of both parties; it would subject the carrying of arms and munitions of +war, which now may be transported freely and without interruption in the +vessels of the United States, to detention and to possible seizure; it +would give rise to countless vexatious questions, would release the parent +Government from responsibility for acts done by the insurgents, and would +invest Spain with the right to exercise the supervision recognized by our +treaty of 1795 over our commerce on the high seas, a very large part of +which, in its traffic between the Atlantic and the Gulf States and between +all of them and the States on the Pacific, passes through the waters which +wash the shores of Cuba. The exercise of this supervision could scarce fail +to lead, if not to abuses, certainly to collisions perilous to the peaceful +relations of the two States. There can be little doubt to what result such +supervision would before long draw this nation. It would be unworthy of the +United States to inaugurate the possibilities of such result by measures of +questionable right or expediency or by any indirection. Apart from any +question of theoretical right, I am satisfied that while the accordance of +belligerent rights to the insurgents in Cuba might give them a hope and an +inducement to protract the struggle, it would be but a delusive hope, and +would not remove the evils which this Government and its people are +experiencing, but would draw the United States into complications which it +has waited long and already suffered much to avoid. The recognition of +independence or of belligerency being thus, in my judgment, equally +inadmissible, it remains to consider what course shall be adopted should +the conflict not soon be brought to an end by acts of the parties +themselves, and should the evils which result therefrom, affecting all +nations, and particularly the United States, continue. In such event I am +of opinion that other nations will be compelled to assume the +responsibility which devolves upon them, and to seriously consider the only +remaining measures possible--mediation and intervention, Owing, perhaps, to +the large expanse of water separating the island from the peninsula, the +want of harmony and of personal sympathy between the inhabitants of the +colony and those sent thither to rule them, and want of adaptation of the +ancient colonial system of Europe to the present times and to the ideas +which the events of the past century have developed, the contending parties +appear to have within themselves no depository of common confidence to +suggest wisdom when passion and excitement have their sway and to assume +the part of peacemaker. In this view in the earlier days of the contest the +good offices of the United States as a mediator were tendered in good +faith, without any selfish purpose, in the interest of humanity and in +sincere friendship for both parties, but were at the time declined by +Spain, with the declaration, nevertheless, that at a future time they would +be indispensable. No intimation has been received that in the opinion of +Spain that time has been reached. And yet the strife continues, with all +its dread horrors and all its injuries to the interests of the United +States and of other nations. Each party seems quite capable of working +great injury and damage to the other, as well as to all the relations and +interests dependent on the existence of peace in the island; but they seem +incapable of reaching any adjustment, and both have thus far failed of +achieving any success whereby one party shall possess and control the +island to the exclusion of the other. Under these circumstances the agency +of others, either by mediation or by intervention, seems to be the only +alternative which must, sooner or later, be invoked for the termination of +the strife. At the same time, while thus impressed I do not at this time +recommend the adoption of any measure of intervention. I shall be ready at +all times, and as the equal friend of both parties, to respond to a +suggestion that the good offices of the United States will be acceptable to +aid in bringing about a peace honorable to both. It is due to Spain, so far +as this Government is concerned, that the agency of a third power, to which +I have adverted, shall be adopted only as a last expedient. Had it been the +desire of the United States to interfere in the affairs of Cuba, repeated +opportunities for so doing have been presented within the last few years; +but we have remained passive, and have performed our whole duty and all +international obligations to Spain with friendship, fairness, and fidelity, +and with a spirit of patience and forbearance which negatives every +possible suggestion of desire to interfere or to add to the difficulties +with which she has been surrounded. + +The Government of Spain has recently submitted to our minister at Madrid +certain proposals which it is hoped may be found to be the basis, if not +the actual submission, of terms to meet the requirements of the particular +griefs of which this Government has felt itself entitled to complain. These +proposals have not yet reached me in their full text. On their arrival they +will be taken into careful examination, and may, I hope, lead to a +satisfactory adjustment of the questions to which they refer and remove the +possibility of future occurrences such as have given rise to our just +complaints. + +It is understood also that renewed efforts are being made to introduce +reforms in the internal administration of the island. Persuaded, however, +that a proper regard for the interests of the United States and of its +citizens entitles it to relief from the strain to which it has been +subjected by the difficulties of the questions and the wrongs and losses +which arise from the contest in Cuba, and that the interests of humanity +itself demand the cessation of the strife before the whole island shall be +laid waste and larger sacrifices of life be made, I shall feel it my duty, +should my hopes of a satisfactory adjustment and of the early restoration +of peace and the removal of future causes of complaint be, unhappily, +disappointed, to make a further communication to Congress at some period +not far remote, and during the present session, recommending what may then +seem to me to be necessary. + +The free zone, so called, several years since established by the Mexican +Government in certain of the States of that Republic adjacent to our +frontier, remains in full operation. It has always been materially +injurious to honest traffic, for it operates as an incentive to traders in +Mexico to supply without customs charges the wants of inhabitants on this +side of the line, and prevents the same wants from being supplied by +merchants of the United States, thereby to a considerable extent defrauding +our revenue and checking honest commercial enterprise. + +Depredations by armed bands from Mexico on the people of Texas near the +frontier continue. Though the main object of these incursions is robbery, +they frequently result in the murder of unarmed and peaceably disposed +persons, and in some instances even the United States post-offices and mail +communications have been attacked. Renewed remonstrances upon this subject +have been addressed to the Mexican Government, but without much apparent +effect. The military force of this Government disposable for service in +that quarter is quite inadequate to effectually guard the line, even at +those points where the incursions are usually made. An experiment of an +armed vessel on the Rio Grande for that purpose is on trial, and it is +hoped that, if not thwarted by the shallowness of the river and other +natural obstacles, it may materially contribute to the protection of the +herdsmen of Texas. + +The proceedings of the joint commission under the convention between the +United States and Mexico of the 4th of July, 1868, on the subject of +claims, will soon be brought to a close. The result of those proceedings +will then be communicated to Congress. + +I am happy to announce that the Government of Venezuela has, upon further +consideration, practically abandoned its objection to pay to the United +States that share of its revenue which some years since it allotted toward +the extinguishment of the claims of foreigners generally. In thus +reconsidering its determination that Government has shown a just sense of +self-respect which can not fail to reflect credit upon it in the eyes of +all disinterested persons elsewhere. It is to be regretted, however, that +its payments on account of claims of citizens of the United States are +still so meager in amount, and that the stipulations of the treaty in +regard to the sums to be paid and the periods when those payments were to +take place should have been so signally disregarded. + +Since my last annual message the exchange has been made of the ratification +of a treaty of commerce and navigation with Belgium, and of conventions +with the Mexican Republic for the further extension of the joint commission +respecting claims; with the Hawaiian Islands for commercial reciprocity, +and with the Ottoman Empire for extradition; all of which have been duly +proclaimed. + +The Court of Commissioners of Alabama Claims has prosecuted its important +duties very assiduously and very satisfactorily. It convened and was +organized on the 22d day of July, 1874, and by the terms of the act under +which it was created was to exist for one year from that date. The act +provided, however, that should it be found impracticable to complete the +work of the court before the expiration of the year the President might by +proclamation extend the time of its duration to a period not more than six +months beyond the expiration of the one year. + +Having received satisfactory evidence that it would be impracticable to +complete the work within the time originally fixed, I issued a proclamation +(a copy of which is presented herewith) extending the time of duration of +the court for a period of six months from and after the 22d day of July +last. + +A report made through the clerk of the court (communicated herewith) shows +the condition of the calendar on the 1st of November last and the large +amount of work which has been accomplished. One thousand three hundred and +eighty-two claims have been presented, of which 682 had been disposed of at +the date of the report. I am informed that 170 cases were decided during +the month of November. Arguments are being made and decisions given in the +remaining cases with all the dispatch consistent with the proper +consideration of the questions submitted. Many of these claims are in +behalf of mariners, or depend on the evidence of mariners, whose absence +has delayed the taking or the return of the necessary evidence. + +It is represented to me that it will be impracticable for the court to +finally dispose of all the cases before it within the present limit of its +duration. Justice to the parties claimant, who have been at large expense +in preparing their claims and obtaining the evidence in their support, +suggests a short extension, to enable the court to dispose of all of the +claims which have been presented. + +I recommend the legislation which may be deemed proper to enable the court +to complete the work before it. + +I recommend that some suitable provision be made, by the creation of a +special court or by conferring the necessary jurisdiction upon some +appropriate tribunal, for the consideration and determination of the claims +of aliens against the Government of the United States which have arisen +within some reasonable limitation of time, or which may hereafter arise, +excluding all claims barred by treaty provisions or otherwise. It has been +found impossible to give proper consideration to these claims by the +Executive Departments of the Government. Such a tribunal would afford an +opportunity to aliens other than British subjects to present their claims +on account of acts committed against their persons or property during the +rebellion, as also to those subjects of Great Britain whose claims, having +arisen subsequent to the 9th day of April, 1865, could not be presented to +the late commission organized pursuant to the provisions of the treaty of +Washington. + +The electric telegraph has become an essential and indispensable agent in +the transmission of business and social messages. Its operation on land, +and within the limit of particular states, is necessarily under the control +of the jurisdiction within which it operates. The lines on the high seas, +however, are not subject to the particular control of any one government. + +In 1869 a concession was granted by the French Government to a company +which proposed to lay a cable from the shores of France to the United +States. At that time there was a telegraphic connection between the United +States and the continent of Europe (through the possessions of Great +Britain at either end of the line), under the control of an association +which had, at large outlay of capital and at great risk, demonstrated the +practicability of maintaining such means of communication. The cost of +correspondence by this agency was great, possibly not too large at the time +for a proper remuneration for so hazardous and so costly an enterprise. It +was, however, a heavy charge upon a means of communication which the +progress in the social and commercial intercourse of the world found to be +a necessity, and the obtaining of this French concession showed that other +capital than that already invested was ready to enter into competition, +with assurance of adequate return for their outlay. Impressed with the +conviction that the interests, not only of the people of the United States, +but of the world at large, demanded, or would demand, the multiplication of +such means of communication between separated continents, I was desirous +that the proposed connection should be made; but certain provisions of this +concession were deemed by me to be objectionable, particularly one which +gave for a long term of years the exclusive right of telegraphic +communication by submarine cable between the shores of France and the +United States. I could not concede that any power should claim the right to +land a cable on the shores of the United States and at the same time deny +to the United States, or to its citizens or grantees, an equal fight to +land a cable on its shores. The right to control the conditions for the +laying of a cable within the jurisdictional waters of the United States, to +connect our shores with those of any foreign state, pertains exclusively to +the Government of the United States, under such limitations and conditions +as Congress may impose. In the absence of legislation by Congress I was +unwilling, on the one hand, to yield to a foreign state the right to say +that its grantees might land on our shores while it denied a similar right +to our people to land on its shores, and, on the other hand, I was +reluctant to deny to the great interests of the world and of civilization +the facilities of such communication as were proposed. I therefore withheld +any resistance to the landing of the cable on condition that the offensive +monopoly feature of the concession be abandoned, and that the right of any +cable which may be established by authority of this Government to land upon +French territory and to connect with French land lines and enjoy all the +necessary facilities or privileges incident to the use thereof upon as +favorable terms as any other company be conceded. As the result thereof the +company in question renounced the exclusive privilege, and the +representative of France was informed that, understanding this +relinquishment to be construed as granting the entire reciprocity and equal +facilities which had been demanded, the opposition to the landing of the +cable was withdrawn. The cable, under this French concession, was landed in +the month of July, 1869, and has been an efficient and valuable agent of +communication between this country and the other continent. It soon passed +under the control, however, of those who had the management of the cable +connecting Great Britain with this continent, and thus whatever benefit to +the public might have ensued from competition between the two lines was +lost, leaving only the greater facilities of an additional line and the +additional security in case of accident to one of them. But these increased +facilities and this additional security, together with the control of the +combined capital of the two companies, gave also greater power to prevent +the future construction of other lines and to limit the control of +telegraphic communication between the two continents to those possessing +the lines already laid. Within a few months past a cable has been laid, +known as the United States Direct Cable Company, connecting the United +States directly with Great Britain. As soon as this cable was reported to +be laid and in working order the rates of the then existing consolidated +companies were greatly reduced. Soon, however, a break was announced in +this new cable, and immediately the rates of the other line, which had been +reduced, were again raised. This cable being now repaired, the rates appear +not to be reduced by either line from those formerly charged by the +consolidated companies. + +There is reason to believe that large amounts of capital, both at home and +abroad, are ready to seek profitable investment in the advancement of this +useful and most civilizing means of intercourse and correspondence. They +await, however, the assurance of the means and conditions on which they may +safely be made tributary to the general good. + +As these cable telegraph lines connect separate states, there are questions +as to their organization and control which probably can be best, if not +solely, settled by conventions between the respective states. In the +absence, however, of international conventions on the subject, municipal +legislation may secure many points which appear to me important, if not +indispensable for the protection of the public against the extortions which +may result from a monopoly of the right of operating cable telegrams or +from a combination between several lines: + +I. No line should be allowed to land on the shores of the United States +under the concession from another power which does not admit the right of +any other line or lines, formed in the United States, to land and freely +connect with and operate through its land lines. + +II. No line should be allowed to land on the shores of the United States +which is not, by treaty stipulation with the government from whose shores +it proceeds, or by prohibition in its charter, or otherwise to the +satisfaction of this Government, prohibited from consolidating or +amalgamating with any other cable telegraph line, or combining therewith +for the purpose of regulating and maintaining the cost of telegraphing. + +III. All lines should be bound to give precedence in the transmission of +the official messages of the governments of the two countries between which +it may be laid. + +IV. A power should be reserved to the two governments, either conjointly or +to each, as regards the messages dispatched from its shores, to fix a limit +to the charges to be demanded for the transmission of messages. + +I present this subject to the earnest consideration of Congress. + +In the meantime, and unless Congress otherwise direct, I shall not oppose +the landing of any telegraphic cable which complies with and assents to the +points above enumerated, but will feel it my duty to prevent the landing of +any which does not conform to the first and second points as stated, and +which will not stipulate to concede to this Government the precedence in +the transmission of its official messages and will not enter into a +satisfactory arrangement with regard to its charges. + +Among the pressing and important subjects to which, in my opinion, the +attention of Congress should be directed are those relating to fraudulent +naturalization and expatriation. + +The United States, with great liberality, offers its citizenship to all who +in good faith comply with the requirements of law. These requirements are +as simple and upon as favorable terms to the emigrant as the high privilege +to which he is admitted can or should permit. I do not propose any +additional requirements to those which the law now demands; but the very +simplicity and the want of unnecessary formality in our law have made +fraudulent naturalization not infrequent, to the discredit and injury of +all honest citizens, whether native or naturalized. Cases of this character +are continually being brought to the notice of the Government by our +representatives abroad, and also those of persons resident in other +countries, most frequently those who, if they have remained in this country +long enough to entitle them to become naturalized, have generally not much +overpassed that period, and have returned to the country of their origin, +where they reside, avoiding all duties to the United States by their +absence, and claiming to be exempt from all duties to the country of their +nativity and of their residence by reason of their alleged naturalization. +It is due to this Government itself and to the great mass of the +naturalized citizens who entirely, both in name and in fact, become +citizens of the United States that the high privilege of citizenship of the +United States should not be held by fraud or in derogation of the laws and +of the good name of every honest citizen. On many occasions it has been +brought to the knowledge of the Government that certificates of +naturalization are held and protection or interference claimed by parties +who admit that not only they were not within the United States at the time +of the pretended naturalization, but that they have never resided in the +United States; in others the certificate and record of the court show on +their face that the person claiming to be naturalized had not resided the +required time in the United States; in others it is admitted upon +examination that the requirements of law have not been complied with; in +some eases, even, such certificates have been matter of purchase. These are +not isolated eases, arising at rare intervals, but of common occurrence, +and which are reported from all quarters of the globe. Such occurrences can +not, and do not, fail to reflect upon the Government and injure all honest +citizens. Such a fraud being discovered, however, there is no practicable +means within the control of the Government by which the record of +naturalization can be vacated; and should the certificate be taken up, as +it usually is, by the diplomatic and consular representatives of the +Government to whom it may have been presented, there is nothing to prevent +the person claiming to have been naturalized from obtaining a new +certificate from the court in place of that which has been taken from him. + +The evil has become so great and of such frequent occurrence that I can not +too earnestly recommend that some effective measures be adopted to provide +a proper remedy and means for the vacating of any record thus fraudulently +made, and of punishing the guilty parties to the transaction. + +In this connection I refer also to the question of expatriation and the +election of nationality. + +The United States was foremost in upholding the right of expatriation, and +was principally instrumental in overthrowing the doctrine of perpetual +allegiance. Congress has declared the right of expatriation to be a natural +and inherent right of all people; but while many other nations have enacted +laws providing what formalities shall be necessary to work a change of +allegiance, the United States has enacted no provisions of law and has in +no respect marked out how and when expatriation may be accomplished by its +citizens. Instances are brought to the attention of the Government where +citizens of the United States, either naturalized or native born, have +formally become citizens or subjects of foreign powers, but who, +nevertheless, in the absence of any provisions of legislation on this +question, when involved in difficulties or when it seems to be their +interest, claim to be citizens of the United States and demand the +intervention of a Government which they have long since abandoned and to +which for years they have rendered no service nor held themselves in any +way amenable. + +In other cases naturalized citizens, immediately after naturalization, have +returned to their native country; have become engaged in business; have +accepted offices or pursuits inconsistent with American citizenship, and +evidence no intent to return to the United States until called upon to +discharge some duty to the country where they are residing, when at once +they assert their citizenship and call upon the representatives of the +Government to aid them in their unjust pretensions. It is but justice to +all bona fide citizens that no doubt should exist on such questions, and +that Congress should determine by enactment of law how expatriation may be +accomplished and change of citizenship be established. + +I also invite your attention to the necessity of regulating by law the +status of American women who may marry foreigners, and of defining more +fully that of children born in a foreign country of American parents who +may reside abroad; and also of some further provision regulating or giving +legal effect to marriages of American citizens contracted in foreign +countries. The correspondence submitted herewith shows a few of the +constantly occurring questions on these points presented to the +consideration of the Government. There are few subjects to engage the +attention of Congress on which more delicate relations or more important +interests are dependent. + +In the month of July last the building erected for the Department of State +was taken possession of and occupied by that Department. I am happy to +announce that the archives and valuable papers of the Government in the +custody of that Department are now safely deposited and properly cared +for. + +The report of the Secretary of the Treasury shows the receipts from customs +for the fiscal year ending June 30, 1874, to have been $163,103,833.69, and +for the fiscal year ending June 30, 1875, to have been $157,267,722.35, a +decrease for the last fiscal year of $5,936,111.34. Receipts from internal +revenue for the year ending the 30th of June, 1874, were $102,409,784.90, +and for the year ending June 30, 1875, $110,007,493.58; increase, +$7,597,708.68. + +The report also shows a complete history of the workings of the Department +for the last year, and contains recommendations for reforms and for +legislation which I concur in, but can not comment on so fully as I should +like to do if space would permit, but will confine myself to a few +suggestions which I look upon as vital to the best interests of the whole +people--coming within the purview of "Treasury;" I mean specie resumption. +Too much stress can not be laid upon this question, and I hope Congress may +be induced, at the earliest day practicable, to insure the consummation of +the act of the last Congress, at its last session, to bring about specie +resumption "on and after the 1st of January, 1879," at furthest. It would +be a great blessing if this could be consummated even at an earlier day. + +Nothing seems to me more certain than that a full, healthy, and permanent +reaction can not take place in favor of the industries and financial +welfare of the country until we return to a measure of values recognized +throughout the civilized world. While we use a currency not equivalent to +this standard the world's recognized standard, specie, becomes a commodity +like the products of the soil, the surplus seeking a market wherever there +is a demand for it. + +Under our present system we should want none, nor would we have any, were +it not that customs dues must be paid in coin and because of the pledge to +pay interest on the public debt in coin. The yield of precious metals would +flow out for the purchase of foreign productions and the United States +"hewers of wood and drawers of water," because of wiser legislation on the +subject of finance by the nations with whom we have dealings. I am not +prepared to say that I can suggest the best legislation to secure the end +most heartily recommended. It will be a source of great gratification to me +to be able to approve any measure of Congress looking effectively toward +securing "resumption." + +Unlimited inflation would probably bring about specie payments more +speedily than any legislation looking to redemption of the legal-tenders in +coin; but it would be at the expense of honor. The legal-tenders would have +no value beyond settling present liabilities, or, properly speaking, +repudiating them. They would buy nothing after debts were all settled. + +There are a few measures which seem to me important in this connection and +which I commend to your earnest consideration: + +A repeal of so much of the legal-tender act as makes these notes receivable +for debts contracted after a date to be fixed in the act itself, say not +later than the 1st of January, 1877. We should then have quotations at real +values, not fictitious ones. Gold would no longer be at a premium, but +currency at a discount. A healthy reaction would set in at once, and with +it a desire to make the currency equal to what it purports to be. The +merchants, manufacturers, and tradesmen of every calling could do business +on a fair margin of profit, the money to be received having an unvarying +value. Laborers and all classes who work for stipulated pay or salary would +receive more for their income, because extra profits would no longer be +charged by the capitalists to compensate for the risk of a downward +fluctuation in the value of the currency. + +Second. That the Secretary of the Treasury be authorized to redeem, say, +not to exceed $2,000,000 monthly of legal-tender notes, by issuing in their +stead a long bond, bearing interest at the rate of 3.65 per cent per annum, +of denominations ranging from $50 up to $1,000 each. This would in time +reduce the legal-tender notes to a volume that could be kept afloat without +demanding redemption in large sums suddenly. + +Third. That additional power be given to the Secretary of the Treasury to +accumulate gold for final redemption, either by increasing revenue, +curtailing expenses, or both (it is preferable to do both); and I recommend +that reduction of expenditures be made wherever it can be done without +impairing Government obligations or crippling the due execution thereof. +One measure for increasing the revenue--and the only one I think of--is the +restoration of the duty on tea and coffee. These duties would add probably +$18,000,000 to the present amount received from imports, and would in no +way increase the prices paid for those articles by the consumers. + +These articles are the products of countries collecting revenue from +exports, and as we, the largest consumers, reduce the duties they +proportionately increase them. With this addition to the revenue, many +duties now collected, and which give but an insignificant return for the +cost of collection, might be remitted, and to the direct advantage of +consumers at home. + +I would mention those articles which enter into manufactures of all sorts. +All duty paid upon such articles goes directly to the cost of the article +when manufactured here, and must be paid for by the consumers. These duties +not only come from the consumers at home, but act as a protection to +foreign manufacturers of the same completed articles in our own and distant +markets. + +I will suggest or mention another subject bearing upon the problem of "how +to enable the Secretary of the Treasury to accumulate balances." It is to +devise some better method of verifying claims against the Government than +at present exists through the Court of Claims, especially those claims +growing out of the late war. Nothing is more certain than that a very large +percentage of the amounts passed and paid are either wholly fraudulent or +are far in excess of the real losses sustained. The large amount of losses +proven--on good testimony according to existing laws, by affidavits of +fictitious or unscrupulous persons--to have been sustained on small farms +and plantations are not only far beyond the possible yield of those places +for any one year, but, as everyone knows who has had experience in tilling +the soil and who has visited the scenes of these spoliations, are in many +instances more than the individual claimants were ever worth, including +their personal and real estate. + +The report of the Attorney-General, which will be submitted to Congress at +an early day, will contain a detailed history of awards made and of claim +pending of the class here referred to. + +The report of the Secretary of War, accompanying this message, gives a +detailed account of Army operations for the year just passed, expenses for +maintenance, etc., with recommendations for legislation to which I +respectfully invite your attention. To some of these I invite special +attention: + +First. The necessity of making $300,000 of the appropriation for the +Subsistence Department available before the beginning of the next fiscal +year. Without this provision troops at points distant from supply +production must either go without food or existing laws must be violated. +It is not attended with cost to the Treasury. + +Second. His recommendation for the enactment of a system of annuities for +the families of deceased officers by voluntary deductions from the monthly +pay of officers. This again is not attended with burden upon the Treasury, +and would for the future relieve much distress which every old army officer +has witnessed in the past--of officers dying suddenly or being killed, +leaving families without even the means of reaching their friends, if +fortunate enough to have friends to aid them. + +Third. The repeal of the law abolishing mileage, and a return to the old +system. + +Fourth. The trial with torpedoes under the Corps of Engineers, and +appropriation for the same. Should war ever occur between the United States +and any maritime power, torpedoes will be among if not the most effective +and cheapest auxiliary for the defense of harbors, and also in aggressive +operations, that we can have. Hence it is advisable to learn by experiment +their best construction and application, as well as effect. + +Fifth. A permanent organization for the Signal-Service Corps. This service +has now become a necessity of peace as well as war, under the advancement +made by the present able management. + +Sixth. A renewal of the appropriation for compiling the official records of +the war, etc. + +The condition of our Navy at this time is a subject of satisfaction. It +does not contain, it is true, any of the powerful cruising ironclads which +make so much of the maritime strength of some other nations, but neither +our continental situation nor our foreign policy requires that we should +have a large number of ships of this character, while this situation and +the nature of our ports combine to make those of other nations little +dangerous to us under any circumstances. + +Our Navy does contain, however, a considerable number of ironclads of the +monitor class, which, though not properly cruisers, are powerful and +effective for harbor defense and for operations near our own shores. Of +these all the single-turreted ones, fifteen in number, have been +substantially rebuilt, their rotten wooden beams replaced with iron, their +hulls strengthened, and their engines and machinery thoroughly repaired, so +that they are now in the most efficient condition and ready for sea as soon +as they can be manned and put in commission. + +The five double-turreted ironclads belonging to our Navy, by far the most +powerful of our ships for fighting purposes, are also in hand undergoing +complete repairs, and could be ready for sea in periods varying from four +to six months. With these completed according to the present design and our +two iron torpedo boats now ready, our ironclad fleet will be, for the +purposes of defense at home, equal to any force that can readily be brought +against it. + +Of our wooden navy also cruisers of various sizes, to the number of about +forty, including those now in commission, are in the Atlantic, and could be +ready for duty as fast as men could be enlisted for those not already in +commission. Of these, one-third are in effect new ships, and though some of +the remainder need considerable repairs to their boilers and machinery, +they all are, or can readily be made, effective. + +This constitutes a fleet of more than fifty war ships, of which fifteen are +ironclad, now in hand on the Atlantic coast. The Navy has been brought to +this condition by a judicious and practical application of what could be +spared from the current appropriations of the last few years and from that +made to meet the possible emergency of two years ago. It has been done +quietly, without proclamation or display, and though it has necessarily +straitened the Department in its ordinary expenditure, and, as far as the +ironclads are concerned, has added nothing to the cruising force of the +Navy, yet the result is not the less satisfactory because it is to be found +in a great increase of real rather than apparent force. The expenses +incurred in the maintenance of an effective naval force in all its branches +are necessarily large, but such force is essential to our position, +relations, and character, and affects seriously the weight of our +principles and policy throughout the whole sphere of national +responsibilities. + +The estimates for the regular support of this branch of the service for the +next year amount to a little less in the aggregate than those made for the +current year; but some additional appropriations are asked for objects not +included in the ordinary maintenance of the Navy, but believed to be of +pressing importance at this time. It would, in my opinion, be wise at once +to afford sufficient means for the immediate completion of the five +double-turreted monitors now undergoing repairs, which must otherwise +advance slowly, and only as money can be spared from current expenses. +Supplemented by these, our Navy, armed with the destructive weapons of +modern warfare, manned by our seamen, and in charge of our instructed +officers, will present a force powerful for the home purposes of a +responsible though peaceful nation. + +The report of the Postmaster-General herewith transmitted gives a full +history of the workings of the Department for the year just past. It will +be observed that the deficiency to be supplied from the General Treasury is +increased over the amount required for the preceding year. In a country so +vast in area as the United States, with large portions sparsely settled, it +must be expected that this important service will be more or less a burden +upon the Treasury for many years to come. But there is no branch of the +public service which interests the whole people more than that of cheap and +rapid transmission of the mails to every inhabited part of our territory. +Next to the free school, the post-office is the great educator of the +people, and it may well receive the support of the General Government. + +The subsidy of $150,000 per annum given to vessels of the United States for +carrying the mails between New York and Rio de Janeiro having ceased on the +30th day of September last, we are without direct mail facilities with the +South American States. This is greatly to be regretted, and I do not +hesitate to recommend the authorization of a renewal of that contract, and +also that the service may be increased from monthly to semi-monthly trips. +The commercial advantages to be gained by a direct line of American +steamers to the South American States will far outweigh the expense of the +service. + +By act of Congress approved March 3, 1875, almost all matter, whether +properly mail matter or not, may be sent any distance through the mails, in +packages not exceeding 4 pounds in weight, for the sum of 16 cents per +pound. So far as the transmission of real mail matter goes, this would seem +entirely proper; but I suggest that the law be so amended as to exclude +from the mails merchandise of all descriptions, and limit this +transportation to articles enumerated, and which may be classed as mail +matter proper. + +The discovery of gold in the Black Hills, a portion of the Sioux +Reservation, has had the effect to induce a large emigration of miners to +that point. Thus far the effort to protect the treaty rights of the Indians +to that section has been successful, but the next year will certainly +witness a large increase of such emigration. The negotiations for the +relinquishment of the gold fields having failed, it will be necessary for +Congress to adopt some measures to relieve the embarrassment growing out of +the causes named. The Secretary of the Interior suggests that the supplies +now appropriated for the sustenance of that people, being no longer +obligatory under the treaty of 1868, but simply a gratuity, may be issued +or withheld at his discretion. + +The condition of the Indian Territory, to which I have referred in several +of my former annual messages, remains practically unchanged. The Secretary +of the Interior has taken measures to obtain a full report of the condition +of that Territory, and will make it the subject of a special report at an +early day. It may then be necessary to make some further recommendation in +regard to legislation for the government of that Territory. + +The steady growth and increase of the business of the Patent Office +indicates in some measure the progress of the industrial activity of the +country. The receipts of the office are in excess of its expenditures, and +the office generally is in a prosperous and satisfactory condition. + +The report of the General Land Office shows that there were 2,459,601 acres +less disposed of during this than during the last year. More than one-half +of this decrease was in lands disposed of under the homestead and +timber-culture laws. The cause of this decrease is supposed to be found in +the grasshopper scourge and the droughts which prevailed so extensively in +some of the frontier States and Territories during that time as to +discourage and deter entries by actual settlers. The cash receipts were +less by $690,322.23 than during the preceding year. + +The entire surveyed area of the public domain is 680,253,094 acres, of +which 26,077,531 acres were surveyed during the past year, leaving +1,154,471,762 acres still unsurveyed. + +The report of the Commissioner presents many interesting suggestions in +regard to the management and disposition of the public domain and the +modification of existing laws, the apparent importance of which should +insure for them the careful consideration of Congress. + +The number of pensioners still continues to decrease, the highest number +having been reached during the year ending June 30, 1873. During the last +year 11,557 names were added to the rolls, and 12,977 were dropped +therefrom, showing a net decrease of 1,420. But while the number of +pensioners has decreased, the annual amount due on the pension rolls has +increased $44,733.13. This is caused by the greatly increased average rate +of pensions, which, by the liberal legislation of Congress, has increased +from $90.26 in 1872 to $103.91 in 1875 to each invalid pensioner, an +increase in the average rate of 15 per cent in the three years. During the +year ending June 30, 1875, there was paid on account of pensions, including +the expenses of disbursement, $29,683,116, being $910,632 less than was +paid the preceding year. This reduction in amount of expenditures was +produced by the decrease in the amount of arrearages due on allowed claims +and on pensions the rate of which was increased by the legislation of the +preceding session of Congress. At the close of the last fiscal year there +were on the pension rolls 234,821 persons, of whom 210,363 were army +pensioners, 105,478 being invalids and 104,885 widows and dependent +relatives; 3,420 were navy pensioners, of whom 1,636 were invalids and +1,784 widows and dependent relatives; 21,038 were pensioners of the War of +1812, 15,875 of whom were survivors and 5,163 were widows. + +It is estimated that $29,535,000 will be required for the payment of +pensions for the next fiscal year, an amount $965,000 less than the +estimate for the present year. + +The geological explorations have been prosecuted with energy during the +year, covering an area of about 40,000 square miles in the Territories of +Colorado, Utah, and New Mexico, developing the agricultural and mineral +resources and furnishing interesting scientific and topographical details +of that region. + +The method for the treatment of the Indians adopted at the beginning of my +first term has been steadily pursued, and with satisfactory and encouraging +results. It has been productive of evident improvement in the condition of +that race, and will be continued, with only such modifications as further +experience may indicate to be necessary. + +The board heretofore appointed to take charge of the articles and materials +pertaining to the War, the Navy, the Treasury, the Interior, and the +Post-Office Departments, and the Department of Agriculture, the Smithsonian +Institution, and the Commission of Food Fishes, to be contributed, under +the legislation of last session, to the international exhibition to be held +at Philadelphia during the centennial year 1876, has been diligent in the +discharge of the duties which have devolved upon it; and the preparations +so far made with the means at command give assurance that the governmental +contribution will be made one of the marked characteristics of the +exhibition. The board has observed commendable economy in the matter of the +erection of a building for the governmental exhibit, the expense of which +it is estimated will not exceed, say, $80,000. This amount has been +withdrawn, under the law, from the appropriations of five of the principal +Departments, which leaves some of those Departments without sufficient +means to render their respective practical exhibits complete and +satisfactory. The exhibition being an international one, and the Government +being a voluntary contributor, it is my opinion that its contribution +should be of a character, in quality and extent, to sustain the dignity and +credit of so distinguished a contributor. The advantages to the country of +a creditable display are, in an international point of view, of the first +importance, while an indifferent or uncreditable participation by the +Government would be humiliating to the patriotic feelings of our people +themselves. I commend the estimates of the board for the necessary +additional appropriations to the favorable consideration of Congress. + +The powers of Europe almost without exception, many of the South American +States, and even the more distant Eastern powers have manifested their +friendly sentiments toward the United States and the interest of the world +in our progress by taking steps to join with us in celebrating the +centennial of the nation, and I strongly recommend that a more national +importance be given to this exhibition by such legislation and by such +appropriation as will insure its success. Its value in bringing to our +shores innumerable useful works of art and skill, the commingling of the +citizens of foreign countries and our own, and the interchange of ideas and +manufactures will far exceed any pecuniary outlay we may make. + +I transmit herewith the report of the Commissioner of Agriculture, together +with the reports of the Commissioners, the board of audit, and the board of +health of the District of Columbia, to all of which I invite your +attention. + +The Bureau of Agriculture has accomplished much in disseminating useful +knowledge to the agriculturist, and also in introducing new and useful +productions adapted to our soil and climate, and is worthy of the continued +encouragement of the Government. + +The report of the Commissioner of Education, which accompanies the report +of the Secretary of the Interior, shows a gratifying progress in +educational matters. + +In nearly every annual message that I have had the honor of transmitting to +Congress I have called attention to the anomalous, not to say scandalous, +condition of affairs existing in the Territory of Utah, and have asked for +definite legislation to correct it. That polygamy should exist in a free, +enlightened, and Christian country, without the power to punish so flagrant +a crime against decency and morality, seems preposterous. True, there is no +law to sustain this unnatural vice; but what is needed is a law to punish +it as a crime, and at the same time to fix the status of the innocent +children, the offspring of this system, and of the possibly innocent plural +wives. But as an institution polygamy should be banished from the land. + +While this is being done I invite the attention of Congress to another, +though perhaps no less an evil--the importation of Chinese women, but few +of whom are brought to our shores to pursue honorable or useful +occupations. + +Observations while visiting the Territories of Wyoming, Utah, and Colorado +during the past autumn convinced me that existing laws regulating the +disposition of public lands, timber, etc., and probably the mining laws +themselves, are very defective and should be carefully amended, and at an +early day. Territory where cultivation of the soil can only be followed by +irrigation, and where irrigation is not practicable the lands can only be +used as pasturage, and this only where stock can reach water (to quench its +thirst), can not be governed by the same laws as to entries as lands every +acre of which is an independent estate by itself. + +Land must be held in larger quantities to justify the expense of conducting +water upon it to make it fruitful, or to justify utilizing it as pasturage. +The timber in most of the Territories is principally confined to the +mountain regions, which are held for entry in small quantities only, and as +mineral lands. The timber is the property of the United States, for the +disposal of which there is now no adequate law. The settler must become a +consumer of this timber, whether he lives upon the plain or engages in +working the mines. Hence every man becomes either a trespasser himself or +knowingly a patron of trespassers. + +My opportunities for observation were not sufficient to justify me in +recommending specific legislation on these subjects, but I do recommend +that a joint committee of the two Houses of Congress, sufficiently large to +be divided into subcommittees, be organized to visit all the mining States +and Territories during the coming summer, and that the committee shall +report to Congress at the next session such laws or amendments to laws as +it may deem necessary to secure the best interests of the Government and +the people of these Territories, who are doing so much for their +development. + +I am sure the citizens occupying the territory described do not wish to be +trespassers, nor will they be if legal ways are provided for them to become +owners of these actual necessities of their position. + +As this will be the last annual message which I shall have the honor of +transmitting to Congress before my successor is chosen, I will repeat or +recapitulate the questions which I deem of vital importance which may be +legislated upon and settled at this session: + +First. That the States shall be required to afford the opportunity of a +good common-school education to every child within their limits. + +Second. No sectarian tenets shall ever be taught in any school supported in +whole or in part by the State, nation, or by the proceeds of any tax levied +upon any community. Make education compulsory so far as to deprive all +persons who can not read and write from becoming voters after the year +1890, disfranchising none, however, on grounds of illiteracy who may be +voters at the time this amendment takes effect. + +Third. Declare church and state forever separate and distinct, but each +free within their proper spheres; and that all church property shall bear +its own proportion of taxation. + +Fourth. Drive out licensed immorality, such as polygamy and the importation +of women for illegitimate purposes. To recur again to the centennial year, +it would seem as though now, as we are about to begin the second century of +our national existence, would be a most fitting time for these reforms. + +Fifth. Enact such laws as will insure a speedy return to a sound currency, +such as will command the respect of the world. + +Believing that these views will commend themselves to the great majority of +the right-thinking and patriotic citizens of the United States, I submit +the rest to Congress. U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 5, 1876 + +To the Senate and House of Representatives: + +In submitting my eighth and last annual message to Congress it seems proper +that I should refer to and in some degree recapitulate the events and +official acts of the past eight years. + +It was my fortune, or misfortune, to be called to the office of Chief +Executive without any previous political training. From the age of 17 I had +never even witnessed the excitement attending a Presidential campaign but +twice antecedent to my own candidacy, and at but one of them was I eligible +as a voter. + +Under such circumstances it is but reasonable to suppose that errors of +judgment must have occurred. Even had they not, differences of opinion +between the Executive, bound by an oath to the strict performance of his +duties, and writers and debaters must have arisen. It is not necessarily +evidence of blunder on the part of the Executive because there are these +differences of views. Mistakes have been made, as all can see and I admit, +but it seems to me oftener in the selections made of the assistants +appointed to aid in carrying out the various duties of administering the +Government--in nearly every case selected without a personal acquaintance +with the appointee, but upon recommendations of the representatives chosen +directly by the people. It is impossible, where so many trusts are to be +allotted, that the right parties should be chosen in every instance. +History shows that no Administration from the time of Washington to the +present has been free from these mistakes. But I leave comparisons to +history, claiming only that I have acted in every instance from a +conscientious desire to do what was right, constitutional, within the law, +and for the very best interests of the whole people. Failures have been +errors of judgment, not of intent. + +My civil career commenced, too, at a most critical and difficult time. Less +than four years before, the country had emerged from a conflict such as no +other nation had ever survived. Nearly one-half of the States had revolted +against the Government, and of those remaining faithful to the Union a +large percentage of the population sympathized with the rebellion and made +an "enemy in the rear" almost as dangerous as the more honorable enemy in +the front. The latter committed errors of judgment, but they maintained +them openly and courageously; the former received the protection of the +Government they would see destroyed, and reaped all the pecuniary advantage +to be gained out of the then existing state of affairs, many of them by +obtaining contracts and by swindling the Government in the delivery of +their goods. + +Immediately on the cessation of hostilities the then noble President, who +had carried the country so far through its perils, fell a martyr to his +patriotism at the hands of an assassin. + +The intervening time to my first inauguration was filled up with wranglings +between Congress and the new Executive as to the best mode of +"reconstruction," or, to speak plainly, as to whether the control of the +Government should be thrown immediately into the hands of those who had so +recently and persistently tried to destroy it, or whether the victors +should continue to have an equal voice with them in this control. +Reconstruction, as finally agreed upon, means this and only this, except +that the late slave was enfranchised, giving an increase, as was supposed, +to the Union-loving and Union-supporting votes. If free in the full sense +of the word, they would not disappoint this expectation. Hence at the +beginning of my first Administration the work of reconstruction, much +embarrassed by the long delay, virtually commenced. It was the work of the +legislative branch of the Government. My province was wholly in approving +their acts, which I did most heartily, urging the legislatures of States +that had not yet done so to ratify the fifteenth amendment to the +Constitution. The country was laboring under an enormous debt, contracted +in the suppression of rebellion, and taxation was so oppressive as to +discourage production. Another danger also threatened us--a foreign war. +The last difficulty had to be adjusted and was adjusted without a war and +in a manner highly honorable to all parties concerned. Taxes have been +reduced within the last seven years nearly $300,000,000, and the national +debt has been reduced in the same time over $435,000,000. By refunding the +6 per cent bonded debt for bonds bearing 5 and 4 1/2 per cent interest, +respectively, the annual interest has been reduced from over $130,000,000 +in 1869 to but little over $100,000,000 in 1876. The balance of trade has +been changed from over $130,000,000 against the United States in 1869 to +more than $120,000,000 in our favor in 1876. + +It is confidently believed that the balance of trade in favor of the United +States will increase, not diminish, and that the pledge of Congress to +resume specie payments in 1879 will be easily accomplished, even in the +absence of much-desired further legislation on the subject. + +A policy has been adopted toward the Indian tribes inhabiting a large +portion of the territory of the United States which has been humane and has +substantially ended Indian hostilities in the whole land except in a +portion of Nebraska, and Dakota, Wyoming, and Montana Territories--the +Black Hills region and approaches thereto. Hostilities there have grown out +of the avarice of the white man, who has violated our treaty stipulations +in his search for gold. The question might be asked why the Government has +not enforced obedience to the terms of the treaty prohibiting the +occupation of the Black Hills region by whites. The answer is simple: The +first immigrants to the Black Hills were removed by troops, but rumors of +rich discoveries of gold took into that region increased numbers. Gold has +actually been found in paying quantity, and an effort to remove the miners +would only result in the desertion of the bulk of the troops that might be +sent there to remove them. All difficulty in this matter has, however, been +removed--subject to the approval of Congress--by a treaty ceding the Black +Hills and approaches to settlement by citizens. + +The subject of Indian policy and treatment is so fully set forth by the +Secretary of the Interior and the Commissioner of Indian Affairs, and my +views so fully expressed therein, that I refer to their reports and +recommendations as my own. + +The relations of the United States with foreign powers continue on a +friendly footing. + +Questions have arisen from time to time in the foreign relations of the +Government, but the United States have been happily free during the past +year from the complications and embarrassments which have surrounded some +of the foreign powers. + +The diplomatic correspondence submitted herewith contains information as to +certain of the matters which have occupied the Government. + +The cordiality which attends our relations with the powers of the earth has +been plainly shown by the general participation of foreign nations in the +exhibition which has just closed and by the exertions made by distant +powers to show their interest in and friendly feelings toward the United +States in the commemoration of the centennial of the nation. The Government +and people of the United States have not only fully appreciated this +exhibition of kindly feeling, but it may be justly and fairly expected that +no small benefits will result both to ourselves and other nations from a +better acquaintance, and a better appreciation of our mutual advantages and +mutual wants. + +Congress at its last session saw fit to reduce the amount usually +appropriated for foreign intercourse by withholding appropriations for +representatives of the United States in certain foreign countries and for +certain consular officers, and by reducing the amounts usually appropriated +for certain other diplomatic posts, and thus necessitating a change in the +grade of the representatives. For these reasons, immediately upon the +passage of the bill making appropriations for the diplomatic and consular +service for the present fiscal year, instructions were issued to the +representatives of the United States at Bolivia, Ecuador, and Colombia, and +to the consular officers for whom no appropriation had been made, to close +their respective legations and consulates and cease from the performance of +their duties; and in like manner steps were immediately taken to substitute +charge's d'affaires for ministers resident in Portugal, Denmark, Greece, +Switzerland, and Paraguay. + +While thoroughly impressed with the wisdom of sound economy in the foreign +service, as in other branches of the Government, I can not escape the +conclusion that in some instances the withholding of appropriations will +prove an expensive economy, and that the small retrenchment secured by a +change of grade in certain diplomatic posts is not an adequate +consideration for the loss of influence and importance which will attend +our foreign representatives under this reduction. I am of the opinion that +a reexamination of the subject will cause a change in some instances in the +conclusions reached on these subjects at the last session of Congress. + +The Court of Commissioners of Alabama Claims, whose functions were +continued by an act of the last session of Congress until the 1st day of +January, 1877, has carried on its labors with diligence and general +satisfaction. By a report from the clerk of the court, transmitted +herewith, bearing date November 14, 1876, it appears that within the time +now allowed by law the court will have disposed of all the claims presented +for adjudication. This report also contains a statement of the general +results of the labors of the court to the date thereof. It is a cause of +satisfaction that the method adopted for the satisfaction of the classes of +claims submitted to the court, which are of long standing and justly +entitled to early consideration, should have proved successful and +acceptable. + +It is with satisfaction that I am enabled to state that the work of the +joint commission for determining the boundary line between the United +States and British possessions from the northwest angle of the Lake of the +Woods to the Rocky Mountains, commenced in 1872, has been completed. The +final agreements of the commissioners, with the maps, have been duly +signed, and the work of the commission is complete. + +The fixing of the boundary upon the Pacific coast by the protocol of March +10, 1873, pursuant to the award of the Emperor of Germany by Article XXXIV +of the treaty of Washington, with the termination of the work of this +commission, adjusts and fixes the entire boundary between the United States +and the British possessions, except as to the portion of territory ceded by +Russia to the United States under the treaty of 1867. The work intrusted to +the commissioner and the officers of the Army attached to the commission +has been well and satisfactorily performed. The original of the final +agreement of the commissioners, signed upon the 29th of May, 1876, with the +original official "lists of astronomical stations observed," the original +official "list of monuments marking the international boundary line," and +the maps, records, and general reports relating to the commission, have +been deposited in the Department of State. The official report of the +commissioner on the part of the United States, with the report of the chief +astronomer of the United States, will be submitted to Congress within a +short time. + +I reserve for a separate communication to Congress a statement of the +condition of the questions which lately arose with Great Britain respecting +the surrender of fugitive criminals under the treaty of 1842. + +The Ottoman Government gave notice, under date of January 15, 1874, of its +desire to terminate the treaty of 1862, concerning commerce and navigation, +pursuant to the provisions of the twenty-second article thereof. Under this +notice the treaty terminated upon the 5th day of June, 1876. That +Government has invited negotiations toward the conclusion of a new treaty. + +By the act of Congress of March 23, 1874, the President was authorized, +when he should receive satisfactory information that the Ottoman Government +or that of Egypt had organized new tribunals likely to secure to citizens +of the United States the same impartial justice enjoyed under the exercise +of judicial functions by diplomatic and consular officers of the United +States, to suspend the operation of the act of June 22, 1860, and to accept +for citizens of the United States the jurisdiction of the new tribunals. +Satisfactory information having been received of the organization of such +new tribunals in Egypt, I caused a proclamation to be issued upon the 27th +of March last, suspending the operation of the act of June 22, 1860, in +Egypt, according to the provisions of the act. A copy of the proclamation +accompanies this message. The United States has united with the other +powers in the organization of these courts. It is hoped that the +jurisdictional questions which have arisen may be readily adjusted, and +that this advance in judicial reform may be hindered by no obstacles. + +The necessary legislation to carry into effect the convention respecting +commercial reciprocity concluded with the Hawaiian Islands in 1875 having +been had, the proclamation to carry into effect the convention, as provided +by the act approved August 15, 1876, was duly issued upon the 9th day of +September last. A copy thereof accompanies this message. + +The commotions which have been prevalent in Mexico for some time past, and +which, unhappily, seem to be not yet wholly quieted, have led to complaints +of citizens of the United States of injuries by persons in authority. It is +hoped, however, that these will ultimately be adjusted to the satisfaction +of both Governments. The frontier of the United States in that quarter has +not been exempt from acts of violence by citizens of one Republic on those +of the other. The frequency of these is supposed to be increased and their +adjustment made more difficult by the considerable changes in the course of +the lower part of the Rio Grande River, which river is a part of the +boundary between the two countries. These changes have placed on either +side of that river portions of land which by existing conventions belong to +the jurisdiction of the Government on the opposite side of the river. The +subject of adjustment of this cause of difficulty is under consideration +between the two Republics. + +The Government of the United States of Colombia has paid the award in the +case of the steamer Montijo, seized by authorities of that Government some +years since, and the amount has been transferred to the claimants. + +It is with satisfaction that I am able to announce that the joint +commission for the adjustment of claims between the United States and +Mexico under the convention of 1868, the duration of which has been several +times extended, has brought its labors to a close. From the report of the +agent of the United States, which accompanies the papers transmitted +herewith, it will be seen that within the time limited by the commission +1,017 claims on the part of citizens of the United States against Mexico +were referred to the commission. Of these claims 831 were dismissed or +disallowed, and in 186 cases awards were made in favor of the claimants +against the Mexican Republic, amounting in the aggregate to $4,125,622.20. +Within the same period 998 claims on the part of citizens of the Mexican +Republic against the United States were referred to the commission. Of +these claims 831 were dismissed or disallowed, and in 167 cases awards were +made in favor of the claimants against the United States, amounting in the +aggregate to $150,498.41. + +By the terms of the convention the amount of these awards is to be deducted +from the amount awarded in favor of our citizens against Mexico, and the +balance only to be paid by Mexico to the United States, leaving the United +States to make provision for this proportion of the awards in favor of its +Own citizens. + +I invite your attention to the legislation which will be necessary to +provide for the payment. + +In this connection I am pleased to be able to express the acknowledgments +due to Sir Edward Thornton, the umpire of the commission, who has given to +the consideration of the large number of claims submitted to him much time, +unwearied patience, and that firmness and intelligence which are well known +to belong to the accomplished representative of Great Britain, and which +are likewise recognized by the representative in this country of the +Republic of Mexico. + +Monthly payments of a very small part of the amount due by the Government +of Venezuela to citizens of the United States on account of claims of the +latter against that Government continue to be made with reasonable +punctuality. That Government has proposed to change the system which it has +hitherto pursued in this respect by issuing bonds for part of the amount of +the several claims. The proposition, however, could not, it is supposed, +properly be accepted, at least without the consent of the holders of +certificates of the indebtedness of Venezuela. These are so much dispersed +that it would be difficult, if not impossible, to ascertain their +disposition on the subject. + +In former messages I have called the attention of Congress to the necessity +of legislation with regard to fraudulent naturalization and to the subject +of expatriation and the election of nationality. + +The numbers of persons of foreign birth seeking a home in the United +States, the ease and facility with which the honest emigrant may, after the +lapse of a reasonable time, become possessed of all the privileges of +citizenship of the United States, and the frequent occasions which induce +such adopted citizens to return to the country of their birth render the +subject of naturalization and the safeguards which experience has proved +necessary for the protection of the honest naturalized citizen of paramount +importance. The very simplicity in the requirements of law on this question +affords opportunity for fraud, and the want of uniformity in the +proceedings and records of the various courts and in the forms of the +certificates of naturalization issued affords a constant source of +difficulty. + +I suggest no additional requirements to the acquisition of citizenship +beyond those now existing, but I invite the earnest attention of Congress +to the necessity and wisdom of some provisions regarding uniformity in the +records and certificates, and providing against the frauds which frequently +take place and for the vacating of a record of naturalization obtained in +fraud. + +These provisions are needed in aid and for the protection of the honest +citizen of foreign birth, and for the want of which he is made to suffer +not infrequently. The United States has insisted upon the right of +expatriation, and has obtained, after a long struggle, an admission of the +principle contended for by acquiescence therein on the part of many foreign +powers and by the conclusion of treaties on that subject. It is, however, +but justice to the government to which such naturalized citizens have +formerly owed allegiance, as well as to the United States, that certain +fixed and definite rules should be adopted governing such cases and +providing how expatriation may be accomplished. + +While emigrants in large numbers become citizens of the United States, it +is also true that persons, both native born and naturalized, once citizens +of the United States, either by formal acts or as the effect of a series of +facts and circumstances, abandon their citizenship and cease to be entitled +to the protection of the United States, but continue on convenient +occasions to assert a claim to protection in the absence of provisions on +these questions. + +And in this connection I again invite your attention to the necessity of +legislation concerning the marriages of American citizens contracted +abroad, and concerning the status of American women who may marry +foreigners and of children born of American parents in a foreign country. + +The delicate and complicated questions continually occurring with reference +to naturalization, expatriation, and the status of such persons as I have +above referred to induce me to earnestly direct your attention again to +these subjects. + +In like manner I repeat my recommendation that some means be provided for +the hearing and determination of the just and subsisting claims of aliens +upon the Government of the United States within a reasonable limitation, +and of such as may hereafter arise. While by existing provisions of law the +Court of Claims may in certain cases be resorted to by an alien claimant, +the absence of any general provisions governing all such cases and the want +of a tribunal skilled in the disposition of such cases upon recognized +fixed and settled principles, either provides no remedy in many deserving +cases or compels a consideration of such claims by Congress or the +executive department of the Government. + +It is believed that other governments are in advance of the United States +upon this question, and that the practice now adopted is entirely +unsatisfactory. + +Congress, by an act approved the 3d day of March, 1875, authorized the +inhabitants of the Territory of Colorado to form a State government, with +the name of the State of Colorado, and therein provided for the admission +of said State, when formed, into the Union upon an equal footing with the +original States. + +A constitution having been adopted and ratified by the people of that +State, and the acting governor having certified to me the facts as provided +by said act, together with a copy of such constitution and ordinances as +provided for in the said act, and the provisions of the said act of +Congress having been duly complied with, I issued a proclamation upon the +1st of August, 1876, a copy of which is hereto annexed. + +The report of the Secretary of War shows that the Army has been actively +employed during the year in subduing, at the request of the Indian Bureau, +certain wild bands of the Sioux Indian Nation and in preserving the peace +at the South during the election. The commission constituted under the act +of July 24, 1876, to consider and report on the "whole subject of the +reform and reorganization of the Army" met in August last, and has +collected a large mass of statistics and opinions bearing on the subject +before it. These are now under consideration, and their report is +progressing. I am advised, though, by the president of the commission that +it will be impracticable to comply with the clause of the act requiring the +report to be presented, through me, to Congress on the first day of this +session, as there has not yet been time for that mature deliberation which +the importance of the subject demands. Therefore I ask that the time of +making the report be extended to the 29th day of January, 1877. + +In accordance with the resolution of August 15, 1876, the Army regulations +prepared under the act of March 1, 1875, have not been promulgated, but are +held until after the report of the above-mentioned commission shall have +been received and acted on. + +By the act of August 15, 1876, the cavalry force of the Army was increased +by 2,500 men, with the proviso that they should be discharged on the +expiration of hostilities. Under this authority the cavalry regiments have +been strengthened, and a portion of them are now in the field pursuing the +remnants of the Indians with whom they have been engaged during the +summer. + +The estimates of the War Department are made up on the basis of the number +of men authorized by law, and their requirements as shown by years of +experience, and also with the purpose on the part of the bureau officers to +provide for all contingencies that may arise during the time for which the +estimates are made. Exclusive of engineer estimates (presented in +accordance with acts of Congress calling for surveys and estimates for +improvements at various localities), the estimates now presented are about +six millions in excess of the appropriations for the years 1874-75 and +1875-76. This increase is asked in order to provide for the increased +cavalry force (should their services be necessary), to prosecute +economically work upon important public buildings, to provide for armament +of fortifications and manufacture of small arms, and to replenish the +working stock in the supply departments. The appropriations for these last +named have for the past few years been so limited that the accumulations in +store will be entirely exhausted during the present year, and it will be +necessary to at once begin to replenish them. + +I invite your special attention to the following recommendations of the +Secretary of War: + +First. That the claims under the act of July 4, 1864, for supplies taken by +the Army during the war be removed from the offices of the Quartermaster +and Commissary Generals and transferred to the Southern Claims Commission. +These claims are of precisely similar nature to those now before the +Southern Claims Commission, and the War Department bureaus have not the +clerical force for their examination nor proper machinery for investigating +the loyalty of the claimants. + +Second. That Congress sanction the scheme of an annuity fund for the +benefit of the families of deceased officers, and that it also provide for +the permanent organization of the Signal Service, both of which were +recommended in my last annual message. + +Third. That the manufacturing operations of the Ordnance Department be +concentrated at three arsenals and an armory, and that the remaining +arsenals be sold and the proceeds applied to this object by the Ordnance +Department. + +The appropriations for river and harbor improvements for the current year +were $5,015,000. With my approval, the Secretary of War directed that of +this amount $2,000,000 should be expended, and no new works should be begun +and none prosecuted which were not of national importance. Subsequently +this amount was increased to $2,237,600, and the works are now progressing +on this basis. + +The improvement of the South Pass of the Mississippi River, under James B. +Eads and his associates, is progressing favorably. At the present time +there is a channel of 20.3 feet in depth between the jetties at the mouth +of the pass and 18.5 feet at the head of the pass. Neither channel, +however, has the width required before payments can be made by the United +States. A commission of engineer officers is now examining these works, and +their reports will be presented as soon as received. + +The report of the Secretary of the Navy shows that branch of the service to +be in condition as effective as it is possible to keep it with the means +and authority given the Department. It is, of course, not possible to rival +the costly and progressive establishments of great European powers with the +old material of our Navy, to which no increase has been authorized since +the war, except the eight small cruisers built to supply the place of +others which had gone to decay. Yet the most has been done that was +possible with the means at command; and by substantially rebuilding some of +our old ships with durable material and completely repairing and refitting +our monitor fleet the Navy has been gradually so brought up that, though it +does not maintain its relative position among the progressive navies of the +world, it is now in a condition more powerful and effective than it ever +has been in time of peace. + +The complete repairs of our five heavy ironclads are only delayed on +account of the inadequacy of the appropriations made last year for the +working bureaus of the Department, which were actually less in amount than +those made before the war, notwithstanding the greatly enhanced price of +labor and materials and the increase in the cost of the naval service +growing out of the universal use and great expense of steam machinery. The +money necessary for these repairs should be provided at once, that they may +be completed without further unnecessary delay and expense. + +When this is done, all the strength that there is in our Navy will be +developed and useful to its full capacity, and it will be powerful for +purposes of defense, and also for offensive action, should the necessity +for that arise within a reasonable distance from our shores. + +The fact that our Navy is not more modern and powerful than it is has been +made a cause of complaint against the Secretary of the Navy by persons who +at the same time criticise and complain of his endeavors to bring the Navy +that we have to its best and most efficient condition; but the good sense +of the country will understand that it is really due to his practical +action that we have at this time any effective naval force at command. + +The report of the Postmaster-General shows the excess of expenditures +(excluding expenditures on account of previous years) over receipts for the +fiscal year ended June 30, 1876, to be $4,151,988.66. + +Estimated expenditures for the fiscal year ending June 30, 1878, are +$36,723,432.43. + +Estimated revenue for same period is $30,645,165, leaving estimated excess +of expenditure, to be appropriated as a deficiency, of $6,078,267.43. + +The Postmaster-General, like his predecessor, is convinced that a change in +the basis of adjusting the salaries of postmasters of the fourth class is +necessary for the good of the service as well as for the interests of the +Government, and urgently recommends that the compensation of the class of +postmasters above mentioned be based upon the business of their respective +offices, as ascertained from the sworn returns to the Auditor of stamps +canceled. + +A few postmasters in the Southern States have expressed great apprehension +of their personal safety on account of their connection with the postal +service, and have specially requested that their reports of apprehended +danger should not be made public lest it should result in the loss of their +lives. But no positive testimony of interference has been submitted, except +in the case of a mail messenger at Spartanburg, in South Carolina, who +reported that he had been violently driven away while in charge of the +mails on account of his political affiliations. An assistant superintendent +of the Railway Mail Service investigated this case and reported that the +messenger had disappeared from his post, leaving his work to be performed +by a substitute. The Postmaster-General thinks this case is sufficiently +suggestive to justify him in recommending that a more severe punishment +should be provided for the offense of assaulting any person in charge of +the mails or of retarding or otherwise obstructing them by threats of +personal injury. + +"A very gratifying result is presented in the fact that the deficiency of +this Department during the last fiscal year was reduced to $4,081,790.18, +as against $6,169,938.88 of the preceding year. The difference can be +traced to the large increase in its ordinary receipts (which greatly exceed +the estimates therefor) and a slight decrease in its expenditures." + +The ordinary receipts of the Post-Office Department for the past seven +fiscal years have increased at an average of over 8 per cent per annum, +while the increase of expenditures for the same period has been but about +5.50 per cent per annum, and the decrease of deficiency in the revenues has +been at the rate of nearly 2 per cent per annum. + +The report of the Commissioner of Agriculture accompanying this message +will be found one of great interest, marking, as it does, the great +progress of the last century in the variety of products of the soil; +increased knowledge and skill in the labor of producing, saving, and +manipulating the same to prepare them for the use of man; in the +improvements in machinery to aid the agriculturist in his labors, and in a +knowledge of those scientific subjects necessary to a thorough system of +economy in agricultural production, namely, chemistry, botany, entomology, +etc. A study of this report by those interested in agriculture and deriving +their support from it will find it of value in pointing out those articles +which are raised in greater quantity than the needs of the world require, +and must sell, therefore, for less than the cost of production, and those +which command a profit over cost of production because there is not an +overproduction. + +I call special attention to the need of the Department for a new gallery +for the reception of the exhibits returned from the Centennial Exhibition, +including the exhibits donated by very many foreign nations, and to the +recommendations of the Commissioner of Agriculture generally. + +The reports of the District Commissioners and the board of health are just +received--too late to read them and to make recommendations thereon--and +are herewith submitted. + +The international exhibition held in Philadelphia this year, in +commemoration of the one hundredth anniversary of American independence, +has proven a great success, and will, no doubt, be of enduring advantage to +the country. It has shown the great progress in the arts, sciences, and +mechanical skill made in a single century, and demonstrated that we are but +little behind older nations in any one branch, while in some we scarcely +have a rival. It has served, too, not only to bring peoples and products of +skill and labor from all parts of the world together, but in bringing +together people from all sections of our own country, which must prove a +great benefit in the information imparted and pride of country engendered. + +It has been suggested by scientists interested in and connected with the +Smithsonian Institution, in a communication herewith, that the Government +exhibit be removed to the capital and a suitable building be erected or +purchased for its accommodation as a permanent exhibit. I earnestly +recommend this; and believing that Congress would second this view, I +directed that all Government exhibits at the Centennial Exhibition should +remain where they are, except such as might be injured by remaining in a +building not intended as a protection in inclement weather, or such as may +be wanted by the Department furnishing them, until the question of +permanent exhibition is acted on. + +Although the moneys appropriated by Congress to enable the participation of +the several Executive Departments in the International Exhibition of 1876 +were not sufficient to carry out the undertaking to the full extent at +first contemplated, it gives me pleasure to refer to the very efficient and +creditable manner in which the board appointed from these several +Departments to provide an exhibition on the part of the Government have +discharged their duties with the funds placed at their command. Without a +precedent to guide them in the preparation of such a display, the success +of their labors was amply attested by the sustained attention which the +contents of the Government building attracted during the period of the +exhibition from both foreign and native visitors. + +I am strongly impressed with the value of the collection made by the +Government for the purposes of the exhibition, illustrating, as it does, +the mineral resources of the country, the statistical and practical +evidences of our growth as a nation, and the uses of the mechanical arts +and the applications of applied science in the administration of the +affairs of Government. + +Many nations have voluntarily contributed their exhibits to the United +States to increase the interest in any permanent exhibition Congress may +provide for. For this act of generosity they should receive the thanks of +the people, and I respectfully suggest that a resolution of Congress to +that effect be adopted. + +The attention of Congress can not be too earnestly called to the necessity +of throwing some greater safeguard over the method of choosing and +declaring the election of a President. Under the present system there seems +to be no provided remedy for contesting the election in any one State. The +remedy is partially, no doubt, in the enlightenment of electors. The +compulsory support of the free school and the disfranchisement of all who +can not read and write the English language, after a fixed probation, would +meet my hearty approval. I would not make this apply, however, to those +already voters, but I would to all becoming so after the expiration of the +probation fixed upon. Foreigners coming to this country to become citizens, +who are educated in their own language, should acquire the requisite +knowledge of ours during the necessary residence to obtain naturalization. +If they did not take interest enough in our language to acquire sufficient +knowledge of it to enable them to study the institutions and laws of the +country intelligently, I would not confer upon them the right to make such +laws nor to select those who do. + +I append to this message, for convenient reference, a synopsis of +administrative events and of all recommendations to Congress made by me +during the last seven years. Time may show some of these recommendations +not to have been wisely conceived, but I believe the larger part will do no +discredit to the Administration. One of these recommendations met with the +united opposition of one political party in the Senate and with a strong +opposition from the other, namely, the treaty for the annexation of Santo +Domingo to the United States, to which I will specially refer, maintaining, +as I do, that if my views had been concurred in the country would be in a +more prosperous condition to-day, both politically and financially. + +Santo Domingo is fertile, and upon its soil may be grown just those +tropical products of which the United States use so much, and which are +produced or prepared for market now by slave labor almost exclusively, +namely, sugar, coffee, dyewoods, mahogany, tropical fruits, tobacco, etc. +About 75 per cent of the exports of Cuba are consumed in the United States. +A large percentage of the exports of Brazil also find the same market. +These are paid for almost exclusively in coin, legislation, particularly in +Cuba, being unfavorable to a mutual exchange of the products of each +country. Flour shipped from the Mississippi River to Havana can pass by the +very entrance to the city on its way to a port in Spain, there pay a duty +fixed upon articles to be reexported, transferred to a Spanish vessel and +brought back almost to the point of starting, paying a second duty, and +still leave a profit over what would be received by direct shipment. All +that is produced in Cuba could be produced in Santo Domingo. Being a part +of the United States, commerce between the island and mainland would be +free. There would be no export duties on her shipments nor import duties on +those coming here. There would be no import duties upon the supplies, +machinery, etc., going from the States. The effect that would have been +produced upon Cuban commerce, with these advantages to a rival, is +observable at a glance. The Cuban question would have been settled long ago +in favor of "free Cuba." Hundreds of American vessels would now be +advantageously used in transporting the valuable woods and other products +of the soil of the island to a market and in carrying supplies and +emigrants to it. The island is but sparsely settled, while it has an area +sufficient for the profitable employment of several millions of people. The +soil would have soon fallen into the hands of United States capitalists. +The products are so valuable in commerce that emigration there would have +been encouraged; the emancipated race of the South would have found there a +congenial home, where their civil rights would not be disputed and where +their labor would be so much sought after that the poorest among them could +have found the means to go. Thus in cases of great oppression and cruelty, +such as has been practiced upon them in many places within the last eleven +years, whole communities would have sought refuge in Santo Domingo. I do +not suppose the whole race would have gone, nor is it desirable that they +should go. Their labor is desirable--indispensable almost--where they now +are. But the possession of this territory would have left the negro "master +of the situation," by enabling him to demand his rights at home on pain of +finding them elsewhere. + +I do not present these views now as a recommendation for a renewal of the +subject of annexation, but I do refer to it to vindicate my previous action +in regard to it. + +With the present term of Congress my official life terminates. It is not +probable that public affairs will ever again receive attention from me +further than as a citizen of the Republic, always taking a deep interest in +the honor, integrity, and prosperity of the whole land. U. S. GRANT + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY ULYSSES S. 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Please do not remove it. Do not change or edit the +header without written permission. + +Please read the "legal small print," and other information about the +eBook and Project Gutenberg at the bottom of this file. Included is +important information about your specific rights and restrictions in +how the file may be used. You can also find out about how to make a +donation to Project Gutenberg, and how to get involved. + + +**Welcome To The World of Free Plain Vanilla Electronic Texts** + +**eBooks Readable By Both Humans and By Computers, Since 1971** + +*****These eBooks Were Prepared By Thousands of Volunteers!***** + + +Title: State of the Union Addresses of Ulysses S. Grant + +Author: Ulysses S. Grant + +Release Date: February, 2004 [EBook #5026] +[Yes, we are more than one year ahead of schedule] +[This file was first posted on April 11, 2002] +[Date last updated: December 16, 2004] + +Edition: 11 + +Language: English + +Character set encoding: ASCII + +*** START OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY ULYSSES S. GRANT *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Ulysses S. Grant in this eBook: + December 6, 1869 + December 5, 1870 + December 4, 1871 + December 2, 1872 + December 1, 1873 + December 7, 1874 + December 7, 1875 + December 5, 1876 + + + +*** + +State of the Union Address +Ulysses S. Grant +December 6, 1869 + +To the Senate and House of Representatives: + +In coming before you for the first time as Chief Magistrate of this great +nation, it is with gratitude to the Giver of All Good for the many benefits +we enjoy. We are blessed with peace at home, and are without entangling +alliances abroad to forebode trouble; with a territory unsurpassed in +fertility, of an area equal to the abundant support of 500,000,000 people, +and abounding in every variety of useful mineral in quantity sufficient to +supply the world for generations; with exuberant crops; with a variety of +climate adapted to the production of every species of earth's riches and +suited to the habits, tastes, and requirements of every living thing; with +a population of 40,000,000 free people, all speaking one language; with +facilities for every mortal to acquire an education; with institutions +closing to none the avenues to fame or any blessing of fortune that may be +coveted; with freedom of the pulpit, the press, and the school; with a +revenue flowing into the National Treasury beyond the requirements of the +Government. Happily, harmony is being rapidly restored within our own +borders. Manufactures hitherto unknown in our country are springing up in +all sections, producing a degree of national independence unequaled by that +of any other power. + +These blessings and countless others are intrusted to your care and mine +for safe-keeping for the brief period of our tenure of office. In a short +time we must, each of us, return to the ranks of the people, who have +conferred upon us our honors, and account to them for our stewardship. I +earnestly desire that neither you nor I may be condemned by a free and +enlightened constituency nor by our own consciences. + +Emerging from a rebellion of gigantic magnitude, aided, as it was, by the +sympathies and assistance of nations with which we were at peace, eleven +States of the Union were, four years ago, left without legal State +governments. A national debt had been contracted; American commerce was +almost driven from the seas; the industry of one-half of the country had +been taken from the control of the capitalist and placed where all labor +rightfully belongs--in the keeping of the laborer. The work of restoring +State governments loyal to the Union, of protecting and fostering free +labor, and providing means for paying the interest on the public debt has +received ample attention from Congress. Although your efforts have not met +with the success in all particulars that might have been desired, yet on +the whole they have been more successful than could have been reasonably +anticipated. + +Seven States which passed ordinances of secession have been fully restored +to their places in the Union. The eighth (Georgia) held an election at +which she ratified her constitution, republican in form, elected a +governor, Members of Congress, a State legislature, and all other officers +required. The governor was duly installed, and the legislature met and +performed all the acts then required of them by the reconstruction acts of +Congress. Subsequently, however, in violation of the constitution which +they had just ratified (as since decided by the supreme court of the +State), they unseated the colored members of the legislature and admitted +to seats some members who are disqualified by the third clause of the +fourteenth amendment to the Constitution--an article which they themselves +had contributed to ratify. Under these circumstances I would submit to you +whether it would not be wise, without delay, to enact a law authorizing the +governor of Georgia to convene the members originally elected to the +legislature, requiring each member to take the oath prescribed by the +reconstruction acts, and none to be admitted who are ineligible under the +third clause of the fourteenth amendment. + +The freedmen, under the protection which they have received, are making +rapid progress in learning, and no complaints are heard of lack of industry +on their part where they receive fair remuneration for their labor. The +means provided for paying the interest on the public debt, with all other +expenses of Government, are more than ample. The loss of our commerce is +the only result of the late rebellion which has not received sufficient +attention from you. To this subject I call your earnest attention. I will +not now suggest plans by which this object may be effected, but will, if +necessary, make it the subject of a special message during the session of +Congress. + +At the March term Congress by joint resolution authorized the Executive to +order elections in the States of Virginia, Mississippi, and Texas, to +submit to them the constitutions which each had previously, in convention, +framed, and submit the constitutions, either entire or in separate parts, +to be voted upon, at the discretion of the Executive. Under this authority +elections were called. In Virginia the election took place on the 6th of +July, 1869. The governor and lieutenant-governor elected have been +installed. The legislature met and did all required by this resolution and +by all the reconstruction acts of Congress, and abstained from all doubtful +authority. I recommend that her Senators and Representatives be promptly +admitted to their seats, and that the State be fully restored to its place +in the family of States. Elections were called in Mississippi and Texas, to +commence on the 30th of November, 1869, and to last two days in Mississippi +and four days in Texas. The elections have taken place, but the result is +not known. It is to be hoped that the acts of the legislatures of these +States, when they meet, will be such as to receive your approval, and thus +close the work of reconstruction. + +Among the evils growing out of the rebellion, and not yet referred to, is +that of an irredeemable currency. It is an evil which I hope will receive +your most earnest attention. It is a duty, and one of the highest duties, +of Government to secure to the citizen a medium of exchange of fixed, +unvarying value. This implies a return to a specie basis, and no substitute +for it can be devised. It should be commenced now and reached at the +earliest practicable moment consistent with a fair regard to the interests +of the debtor class. Immediate resumption, if practicable, would not be +desirable. It would compel the debtor class to pay, beyond their contracts, +the premium on gold at the date of their purchase and would bring +bankruptcy and ruin to thousands. Fluctuation, however, in the paper value +of the measure of all values (gold) is detrimental to the interests of +trade. It makes the man of business an involuntary gambler, for in all +sales where future payment is to be made both parties speculate as to what +will be the value of the currency to be paid and received. I earnestly +recommend to you, then, such legislation as will insure a gradual return to +specie payments and put an immediate stop to fluctuations in the value of +currency. + +The methods to secure the former of these results are as numerous as are +the speculators on political economy. To secure the latter I see but one +way, and that is to authorize the Treasury to redeem its own paper, at a +fixed price, whenever presented, and to withhold from circulation all +currency so redeemed until sold again for gold. + +The vast resources of the nation, both developed and undeveloped, ought to +make our credit the best on earth. With a less burden of taxation than the +citizen has endured for six years past, the entire public debt could be +paid in ten years. But it is not desirable that the people should be taxed +to pay it in that time. Year by year the ability to pay increases in a +rapid ratio. But the burden of interest ought to be reduced as rapidly as +can be done without the violation of contract. The public debt is +represented in great part by bonds having from five to twenty and from ten +to forty years to run, bearing interest at the rate of 6 per cent and 5 per +cent, respectively. It is optional with the Government to pay these bonds +at any period after the expiration of the least time mentioned upon their +face. The time has already expired when a great part of them may be taken +up, and is rapidly approaching when all may be. It is believed that all +which are now due may be replaced by bonds bearing a rate of interest not +exceeding 4 1/2 per cent, and as rapidly as the remainder become due that +they may be replaced in the same way. To accomplish this it may be +necessary to authorize the interest to be paid at either of three or four +of the money centers of Europe, or by any assistant treasurer of the United +States, at the option of the holder of the bond. I suggest this subject for +the consideration of Congress, and also, simultaneously with this, the +propriety of redeeming our currency, as before suggested, at its market +value at the time the law goes into effect, increasing the rate at which +currency shall be bought and sold from day to day or week to week, at the +same rate of interest as Government pays upon its bonds. + +The subjects of tariff and internal taxation will necessarily receive your +attention. The revenues of the country are greater than the requirements, +and may with safety be reduced. But as the funding of the debt in a 4 or a +4 1/2 per cent loan would reduce annual current expenses largely, thus, +after funding, justifying a greater reduction of taxation than would be now +expedient, I suggest postponement of this question until the next meeting +of Congress. + +It may be advisable to modify taxation and tariff in instances where unjust +or burdensome discriminations are made by the present laws, but a general +revision of the laws regulating this subject I recommend the postponement +of for the present. I also suggest the renewal of the tax on incomes, but +at a reduced rate, say of 3 per cent, and this tax to expire in three +years. + +With the funding of the national debt, as here suggested, I feel safe in +saying that taxes and the revenue from imports may be reduced safely from +sixty to eighty millions per annum at once, and may be still further +reduced from year to year, as the resources of the country are developed. + +The report of the Secretary of the Treasury shows the receipts of the +Government for the fiscal year ending June 30, 1869, to be $370,943,747, +and the expenditures, including interest, bounties, etc., to be +$321,490,597. The estimates for the ensuing year are more favorable to the +Government, and will no doubt show a much larger decrease of the public +debt. + +The receipts in the Treasury beyond expenditures have exceeded the amount +necessary to place to the credit of the sinking fund, as provided by law. +To lock up the surplus in the Treasury and withhold it from circulation +would lead to such a contraction of the currency as to cripple trade and +seriously affect the prosperity of the country. Under these circumstances +the Secretary of the Treasury and myself heartily concurred in the +propriety of using all the surplus currency in the Treasury in the purchase +of Government bonds, thus reducing the interest-bearing indebtedness of the +country, and of submitting to Congress the question of the disposition to +be made of the bonds so purchased. The bonds now held by the Treasury +amount to about seventy-five millions, including those belonging to the +sinking fund. I recommend that the whole be placed to the credit of the +sinking fund. + +Your attention is respectfully invited to the recommendations of the +Secretary of the Treasury for the creation of the office of commissioner of +customs revenue; for the increase of salaries to certain classes of +officials; the substitution of increased national-bank circulation to +replace the outstanding 3 per cent certificates; and most especially to his +recommendation for the repeal of laws allowing shares of fines, penalties, +forfeitures, etc., to officers of the Government or to informers. + +The office of Commissioner of Internal Revenue is one of the most arduous +and responsible under the Government. It falls but little, if any, short of +a Cabinet position in its importance and responsibilities. I would ask for +it, therefore, such legislation as in your judgment will place the office +upon a footing of dignity commensurate with its importance and with the +character and qualifications of the class of men required to fill it +properly. + +As the United States is the freest of all nations, so, too, its people +sympathize with all people struggling for liberty and self-government; but +while so sympathizing it is due to our honor that we should abstain from +enforcing our views upon unwilling nations and from taking an interested +part, without invitation, in the quarrels between different nations or +between governments and their subjects. Our course should always be in +conformity with strict justice and law, international and local. Such has +been the policy of the Administration in dealing with these questions. For +more than a year a valuable province of Spain, and a near neighbor of ours, +in whom all our people can not but feel a deep interest, has been +struggling for independence and freedom. The people and Government of the +United States entertain the same warm feelings and sympathies for the +people of Cuba in their pending struggle that they manifested throughout +the previous struggles between Spain and her former colonies in behalf of +the latter. But the contest has at no time assumed the conditions which +amount to a war in the sense of international law, or which would show the +existence of a de facto political organization of the insurgents sufficient +to justify a recognition of belligerency. + +The principle is maintained, however, that this nation is its own judge +when to accord the rights of belligerency, either to a people struggling to +free themselves from a government they believe to be oppressive or to +independent nations at war with each other. + +The United States have no disposition to interfere with the existing +relations of Spain to her colonial possessions on this continent. They +believe that in due time Spain and other European powers will find their +interest in terminating those relations and establishing their present +dependencies as independent powers--members of the family of nations. These +dependencies are no longer regarded as subject to transfer from one +European power to another. When the present relation of colonies ceases, +they are to become independent powers, exercising the right of choice and +of self-control in the determination of their future condition and +relations with other powers. + +The United States, in order to put a stop to bloodshed in Cuba, and in the +interest of a neighboring people, proposed their good offices to bring the +existing contest to a termination. The offer, not being accepted by Spain +on a basis which we believed could be received by Cuba, was withdrawn. It +is hoped that the good offices of the United States may yet prove +advantageous for the settlement of this unhappy strife. Meanwhile a number +of illegal expeditions against Cuba have been broken up. It has been the +endeavor of the Administration to execute the neutrality laws in good +faith, no matter how unpleasant the task, made so by the sufferings we have +endured from lack of like good faith toward us by other nations. + +On the 26th of March last the United States schooner Lizzie Major was +arrested on the high seas by a Spanish frigate, and two passengers taken +from it and carried as prisoners to Cuba. Representations of these facts +were made to the Spanish Government as soon as official information of them +reached Washington. The two passengers were set at liberty, and the Spanish +Government assured the United States that the captain of the frigate in +making the capture had acted without law, that he had been reprimanded for +the irregularity of his conduct, and that the Spanish authorities in Cuba +would not sanction any act that could violate the rights or treat with +disrespect the sovereignty of this nation. + +The question of the seizure of the brig Mary Lowell at one of the Bahama +Islands by Spanish authorities is now the subject of correspondence between +this Government and those of Spain and Great Britain. + +The Captain-General of Cuba about May last issued a proclamation +authorizing search to be made of vessels on the high seas. Immediate +remonstrance was made against this, whereupon the Captain-General issued a +new proclamation limiting the right of search to vessels of the United +States so far as authorized under the treaty of 1795. This proclamation, +however, was immediately withdrawn. + +I have always felt that the most intimate relations should be cultivated +between the Republic of the United States and all independent nations on +this continent. It may be well worth considering whether new treaties +between us and them may not be profitably entered into, to secure more +intimate relations--friendly, commercial, and otherwise. + +The subject of an interoceanic canal to connect the Atlantic and Pacific +oceans through the Isthmus of Darien is one in which commerce is greatly +interested. Instructions have been given to our minister to the Republic of +the United States of Colombia to endeavor to obtain authority for a survey +by this Government, in order to determine the practicability of such an +undertaking, and a charter for the right of way to build, by private +enterprise, such a work, if the survey proves it to be practicable. + +In order to comply with the agreement of the United States as to a mixed +commission at Lima for the adjustment of claims, it became necessary to +send a commissioner and secretary to Lima in August last. No appropriation +having been made by Congress for this purpose, it is now asked that one be +made covering the past and future expenses of the commission. + +The good offices of the United States to bring about a peace between Spain +and the South American Republics with which she is at war having been +accepted by Spain, Peru, and Chile, a congress has been invited to be held +in Washington during the present winter. + +A grant has been given to Europeans of an exclusive right of transit over +the territory of Nicaragua, to which Costa Rico has given its assent, +which, it is alleged, conflicts with vested rights of citizens of the +United States. The Department of State has now this subject under +consideration. + +The minister of Peru having made representations that there was a state of +war between Peru and Spain, and that Spain was constructing, in and near +New York, thirty gunboats, which might be used by Spain in such a way as to +relieve the naval force at Cuba, so as to operate against Peru, orders were +given to prevent their departure. No further steps having been taken by the +representative of the Peruvian Government to prevent the departure of these +vessels, and I not feeling authorized to detain the property of a nation +with which we are at peace on a mere Executive order, the matter has been +referred to the courts to decide. + +The conduct of the war between the allies and the Republic of Paraguay has +made the intercourse with that country so difficult that it has been deemed +advisable to withdraw our representative from there. + +Toward the close of the last Administration a convention was signed at +London for the settlement of all outstanding claims between Great Britain +and the United States, which failed to receive the advice and consent of +the Senate to its ratification. The time and the circumstances attending +the negotiation of that treaty were unfavorable to its acceptance by the +people of the United States, and its provisions were wholly inadequate for +the settlement of the grave wrongs that had been sustained by this +Government, as well as by its citizens. The injuries resulting to the +United States by reason of the course adopted by Great Britain during our +late civil war--in the increased rates of insurance; in the diminution of +exports and imports, and other obstructions to domestic industry and +production; in its effect upon the foreign commerce of the country; in the +decrease and transfer to Great Britain of our commercial marine; in the +prolongation of the war and the increased cost (both in treasure and in +lives) of its suppression could not be adjusted and satisfied as ordinary +commercial claims, which continually arise between commercial nations; and +yet the convention treated them simply as such ordinary claims, from which +they differ more widely in the gravity of their character than in the +magnitude of their amount, great even as is that difference. Not a word was +found in the treaty, and not an inference could be drawn from it, to remove +the sense of the unfriendliness of the course of Great Britain in our +struggle for existence, which had so deeply and universally impressed +itself upon the people of this country. + +Believing that a convention thus misconceived in its scope and inadequate +in its provisions would not have produced the hearty, cordial settlement of +pending questions, which alone is consistent with the relations which I +desire to have firmly established between the United States and Great +Britain, I regarded the action of the Senate in rejecting the treaty to +have been wisely taken in the interest of peace and as a necessary step in +the direction of a perfect and cordial friendship between the two +countries. A sensitive people, conscious of their power, are more at ease +under a great wrong wholly unatoned than under the restraint of a +settlement which satisfies neither their ideas of justice nor their grave +sense of the grievance they have sustained. The rejection of the treaty was +followed by a state of public feeling on both sides which I thought not +favorable to an immediate attempt at renewed negotiations. I accordingly so +instructed the minister of the United States to Great Britain, and found +that my views in this regard were shared by Her Majesty's ministers. I hope +that the time may soon arrive when the two Governments can approach the +solution of this momentous question with an appreciation of what is due to +the rights, dignity, and honor of each, and with the determination not only +to remove the causes of complaint in the past, but to lay the foundation of +a broad principle of public law which will prevent future differences and +tend to firm and continued peace and friendship. + +This is now the only grave question which the United States has with any +foreign nation. + +The question of renewing a treaty for reciprocal trade between the United +States and the British Provinces on this continent has not been favorably +considered by the Administration. The advantages of such a treaty would be +wholly in favor of the British producer. Except, possibly, a few engaged in +the trade between the two sections, no citizen of the United States would +be benefited by reciprocity. Our internal taxation would prove a protection +to the British producer almost equal to the protection which our +manufacturers now receive from the tariff. Some arrangement, however, for +the regulation of commercial intercourse between the United States and the +Dominion of Canada may be desirable. + +The commission for adjusting the claims of the "Hudsons Bay and Puget Sound +Agricultural Company" upon the United States has terminated its labors. The +award of $650,000 has been made and all rights and titles of the company on +the territory of the United States have been extinguished. Deeds for the +property of the company have been delivered. An appropriation by Congress +to meet this sum is asked. + +The commissioners for determining the northwestern land boundary between +the United States and the British possessions under the treaty of 1856 have +completed their labors, and the commission has been dissolved. + +In conformity with the recommendation of Congress, a proposition was early +made to the British Government to abolish the mixed courts created under +the treaty of April 7, 1862, for the suppression of the slave trade. The +subject is still under negotiation. + +It having come to my knowledge that a corporate company, organized under +British laws, proposed to land upon the shores of the United States and to +operate there a submarine cable, under a concession from His Majesty the +Emperor of the French of an exclusive right for twenty years of telegraphic +communication between the shores of France and the United States, with the +very objectionable feature of subjecting all messages conveyed thereby to +the scrutiny and control of the French Government, I caused the French and +British legations at Washington to be made acquainted with the probable +policy of Congress on this subject, as foreshadowed by the bill which +passed the Senate in March last. This drew from the representatives of the +company an agreement to accept as the basis of their operations the +provisions of that bill, or of such other enactment on the subject as might +be passed during the approaching session of Congress; also, to use their +influence to secure from the French Government a modification of their +concession, so as to permit the landing upon French soil of any cable +belonging to any company incorporated by the authority of the United States +or of any State in the Union, and, on their part, not to oppose the +establishment of any such cable. In consideration of this agreement I +directed the withdrawal of all opposition by the United States authorities +to the landing of the cable and to the working of it until the meeting of +Congress. I regret to say that there has been no modification made in the +company's concession, nor, so far as I can learn, have they attempted to +secure one. Their concession excludes the capital and the citizens of the +United States from competition upon the shores of France. I recommend +legislation to protect the rights of citizens of the United States, as well +as the dignity and sovereignty of the nation, against such an assumption. I +shall also endeavor to secure, by negotiation, an abandonment of the +principle of monopolies in ocean telegraphic cables. Copies of this +correspondence are herewith furnished. + +The unsettled political condition of other countries, less fortunate than +our own, sometimes induces their citizens to come to the United States for +the sole purpose of becoming naturalized. Having secured this, they return +to their native country and reside there, without disclosing their change +of allegiance. They accept official positions of trust or honor, which can +only be held by citizens of their native land; they journey under passports +describing them as such citizens; and it is only when civil discord, after +perhaps years of quiet, threatens their persons or their property, or when +their native state drafts them into its military service, that the fact of +their change of allegiance is made known. They reside permanently away from +the United States, they contribute nothing to its revenues, they avoid the +duties of its citizenship, and they only make themselves known by a claim +of protection. I have directed the diplomatic and consular officers of the +United States to scrutinize carefully all such claims for protection. The +citizen of the United States, whether native or adopted, who discharges his +duty to his country, is entitled to its complete protection. While I have a +voice in the direction of affairs I shall not consent to imperil this +sacred right by conferring it upon fictitious or fraudulent claimants. + +On the accession of the present Administration it was found that the +minister for North Germany had made propositions for the negotiation of a +convention for the protection of emigrant passengers, to which no response +had been given. It was concluded that to be effectual all the maritime +powers engaged in the trade should join in such a measure. Invitations have +been extended to the cabinets of London, Paris, Florence, Berlin, Brussels, +The Hague, Copenhagen, and Stockholm to empower their representatives at +Washington to simultaneously enter into negotiations and to conclude with +the United States conventions identical in form, making uniform regulations +as to the construction of the parts of vessels to be devoted to the use of +emigrant passengers, as to the quality and quantity of food, as to the +medical treatment of the sick, and as to the rules to be observed during +the voyage, in order to secure ventilation, to promote health, to prevent +intrusion, and to protect the females; and providing for the establishment +of tribunals in the several countries for enforcing such regulations by +summary process. + +Your attention is respectfully called to the law regulating the tariff on +Russian hemp, and to the question whether to fix the charges on Russian +hemp higher than they are fixed upon manila is not a violation of our +treaty with Russia placing her products upon the same footing with those of +the most favored nations. + +Our manufactures are increasing with wonderful rapidity under the +encouragement which they now receive. With the improvements in machinery +already effected, and still increasing, causing machinery to take the place +of skilled labor to a large extent, our imports of many articles must fall +off largely within a very few years. Fortunately, too, manufactures are not +confined to a few localities, as formerly, and it is to be hoped will +become more and more diffused, making the interest in them equal in all +sections. They give employment and support to hundreds of thousands of +people at home, and retain with us the means which otherwise would be +shipped abroad. The extension of railroads in Europe and the East is +bringing into competition with our agricultural products like products of +other countries. Self-interest, if not self-preservation, therefore +dictates caution against disturbing any industrial interest of the country. +It teaches us also the necessity of looking to other markets for the sale +of our surplus. Our neighbors south of us and China and Japan, should +receive our special attention. It will be the endeavor of the +Administration to cultivate such relations with all these nations as to +entitle us to their confidence and make it their interest, as well as ours, +to establish better commercial relations. + +Through the agency of a more enlightened policy than that heretofore +pursued toward China, largely due to the sagacity and efforts of one of our +own distinguished citizens, the world is about to commence largely +increased relations with that populous and hitherto exclusive nation. As +the United States have been the initiators in this new policy, so they +should be the most earnest in showing their good faith in making it a +success. In this connection I advise such legislation as will forever +preclude the enslavement of the Chinese upon our soil under the name of +coolies, and also prevent American vessels from engaging in the +transportation of coolies to any country tolerating the system. I also +recommend that the mission to China be raised to one of the first class. + +On my assuming the responsible duties of Chief Magistrate of the United +States it was with the conviction that three things were essential to its +peace, prosperity, and fullest development. First among these is strict +integrity in fulfilling all our obligations; second, to secure protection +to the person and property of the citizen of the United States in each and +every portion of our common country, wherever he may choose to move, +without reference to original nationality, religion, color, or politics, +demanding of him only obedience to the laws and proper respect for the +rights of others; third, union of all the States, with equal rights, +indestructible by any constitutional means. + +To secure the first of these, Congress has taken two essential steps: +First, in declaring by joint resolution that the public debt shall be paid, +principal and interest, in coin; and, second, by providing the means for +paying. Providing the means, however, could not secure the object desired +without a proper administration of the laws for the collection of the +revenues and an economical disbursement of them. To this subject the +Administration has most earnestly addressed itself, with results, I hope, +satisfactory to the country. There has been no hesitation in changing +officials in order to secure an efficient execution of the laws, sometimes, +too, when, in a mere party view, undesirable political results were likely +to follow; nor any hesitation in sustaining efficient officials against +remonstrances wholly political. + +It may be well to mention here the embarrassment possible to arise from +leaving on the statute books the so-called "tenure-of-office acts," and to +earnestly recommend their total repeal. It could not have been the +intention of the framers of the Constitution, when providing that +appointments made by the President should receive the consent of the +Senate, that the latter should have the power to retain in office persons +placed there by Federal appointment against the will of the President. The +law is inconsistent with a faithful and efficient administration of the +Government. What faith can an Executive put in officials forced upon him, +and those, too, whom he has suspended for reason? How will such officials +be likely to serve an Administration which they know does not trust them? + +For the second requisite to our growth and prosperity time and a firm but +humane administration of existing laws (amended from time to time as they +may prove ineffective or prove harsh and unnecessary) are probably all that +are required. + +The third can not be attained by special legislation, but must be regarded +as fixed by the Constitution itself and gradually acquiesced in by force of +public opinion. + +From the foundation of the Government to the present the management of the +original inhabitants of this continent--the Indians--has been a subject of +embarrassment and expense, and has been attended with continuous robberies, +murders, and wars. From my own experience upon the frontiers and in Indian +countries, I do not hold either legislation or the conduct of the whites +who come most in contact with the Indian blameless for these hostilities. +The past, however, can not be undone, and the question must be met as we +now find it. I have attempted a new policy toward these wards of the nation +(they can not be regarded in any other light than as wards), with fair +results so far as tried, and which I hope will be attended ultimately with +great success. The Society of Friends is well known as having succeeded in +living in peace with the Indians in the early settlement of Pennsylvania, +while their white neighbors of other sects in other sections were +constantly embroiled. They are also known for their opposition to all +strife, violence, and war, and are generally noted for their strict +integrity and fair dealings. These considerations induced me to give the +management of a few reservations of Indians to them and to throw the burden +of the selection of agents upon the society itself. The result has proven +most satisfactory. It will be found more fully set forth in the report of +the Commissioner of Indian Affairs. For superintendents and Indian agents +not on the reservations, officers of the Army were selected. The reasons +for this are numerous. Where Indian agents are sent, there, or near there, +troops must be sent also. The agent and the commander of troops are +independent of each other, and are subject to orders from different +Departments of the Government. The army officer holds a position for life; +the agent, one at the will of the President. The former is personally +interested in living in harmony with the Indian and in establishing a +permanent peace, to the end that some portion of his life may be spent +within the limits of civilized society; the latter has no such personal +interest. Another reason is an economic one; and still another, the hold +which the Government has upon a life officer to secure a faithful discharge +of duties in carrying out a given policy. + +The building of railroads, and the access thereby given to all the +agricultural and mineral regions of the country, is rapidly bringing +civilized settlements into contact with all the tribes of Indians. No +matter what ought to be the relations between such settlements and the +aborigines, the fact is they do not harmonize well, and one or the other +has to give way in the end. A system which looks to the extinction of a +race is too horrible for a nation to adopt without entailing upon itself +the wrath of all Christendom and engendering in the citizen a disregard for +human life and the rights of others, dangerous to society. I see no +substitute for such a system, except in placing all the Indians on large +reservations, as rapidly as it can be done, and giving them absolute +protection there. As soon as they are fitted for it they should be induced +to take their lands in severalty and to set up Territorial governments for +their own protection. For full details on this subject I call your special +attention to the reports of the Secretary of the Interior and the +Commissioner of Indian Affairs. + +The report of the Secretary of War shows the expenditures of the War +Department for the year ending June 30, 1869, to be $80,644,042, of which +$23,882,310 was disbursed in the payment of debts contracted during the +war, and is not chargeable to current army expenses. His estimate of +$34,531,031 for the expenses of the Army for the next fiscal year is as low +as it is believed can be relied on. The estimates of bureau officers have +been carefully scrutinized, and reduced wherever it has been deemed +practicable. If, however, the condition of the country should be such by +the beginning of the next fiscal year as to admit of a greater +concentration of troops, the appropriation asked for will not be expended. + +The appropriations estimated for river and harbor improvements and for +fortifications are submitted separately. Whatever amount Congress may deem +proper to appropriate for these purposes will be expended. + +The recommendation of the General of the Army that appropriations be made +for the forts at Boston. Portland, New York, Philadelphia, New Orleans, and +San Francisco, if for no other, is concurred in. I also ask your special +attention to the recommendation of the general commanding the Military +Division of the Pacific for the sale of the seal islands of St. Paul and +St. George, Alaska Territory, and suggest that it either be complied with +or that legislation be had for the protection of the seal fisheries from +which a revenue should be derived. + +The report of the Secretary of War contains a synopsis of the reports of +the heads of bureaus, of the commanders of military divisions, and of the +districts of Virginia, Mississippi, and Texas, and the report of the +General of the Army in full. The recommendations therein contained have +been well considered, and are submitted for your action. I, however, call +special attention to the recommendation of the Chief of Ordnance for the +sale of arsenals and lands no longer of use to the Government; also, to the +recommendation of the Secretary of War that the act of 3d March, 1869, +prohibiting promotions and appointments in the staff corps of the Army, be +repealed. The extent of country to be garrisoned and the number of military +posts to be occupied is the same with a reduced Army as with a large one. +The number of staff officers required is more dependent upon the latter +than the former condition. + +The report of the Secretary of the Navy accompanying this shows the +condition of the Navy when this Administration came into office and the +changes made since. Strenuous efforts have been made to place as many +vessels "in commission," or render them fit for service if required, as +possible, and to substitute the sail for steam while cruising, thus +materially reducing the expenses of the Navy and adding greatly to its +efficiency. Looking to our future, I recommend a liberal, though not +extravagant, policy toward this branch of the public service. + +The report of the Postmaster-General furnishes a clear and comprehensive +exhibit of the operations of the postal service and of the financial +condition of the Post-Office Department. The ordinary postal revenues for +the year ending the 30th of June, 1869, amounted to $18,344,510, and the +expenditures to $23,698,131, showing an excess of expenditures over +receipts of $5,353,620. The excess of expenditures over receipts for the +previous year amounted to $6,437,992. The increase of revenues for 1869 +over those of 1868 was $2,051,909, and the increase of expenditures was +$967,538. The increased revenue in 1869 exceeded the increased revenue in +1868 by $996,336, and the increased expenditure in 1869 was $2,527,570 less +than the increased expenditure in 1868, showing by comparison this +gratifying feature of improvement, that while the increase of expenditures +over the increase of receipts in 1868 was $2,439,535, the increase of +receipts over the increase of expenditures in 1869 was $1,084,371. + +Your attention is respectfully called to the recommendations made by the +Postmaster-General for authority to change the rate of compensation to the +main trunk railroad lines for their services in carrying the mails; for +having post-route maps executed; for reorganizing and increasing the +efficiency of the special-agency service; for increase of the mail service +on the Pacific, and for establishing mail service, under the flag of the +Union, on the Atlantic; and most especially do I call your attention to his +recommendation for the total abolition of the franking privilege. This is +an abuse from which no one receives a commensurate advantage; it reduces +the receipts for postal service from 25 to 30 per cent and largely +increases the service to be performed. The method by which postage should +be paid upon public matter is set forth fully in the report of the +Postmaster-General. + +The report of the Secretary of the Interior shows that the quantity of +public lands disposed of during the year ending the 30th of June, 1869, was +7,666,152 acres, exceeding that of the preceding year by 1,010,409 acres. +Of this amount 2,899,544 acres were sold for cash and 2,737,365 acres +entered under the homestead laws. The remainder was granted to aid in the +construction of works of internal improvement, approved to the States as +swamp land, and located with warrants and scrip. The cash receipts from all +sources were $4,472,886, exceeding those of the preceding year $2,840,140. + +During the last fiscal year 23,196 names were added to the pension rolls +and 4,876 dropped therefrom, leaving at its close 187,963. The amount paid +to pensioners, including the compensation of disbursing agents, was +$28,422,884, an increase of $4,411,902 on that of the previous year. The +munificence of Congress has been conspicuously manifested in its +legislation for the soldiers and sailors who suffered in the recent +struggle to maintain "that unity of government which makes us one people." +The additions to the pension rolls of each successive year since the +conclusion of hostilities result in a great degree from the repeated +amendments of the act of the 14th of July, 1862, which extended its +provisions to cases not falling within its original scope. The large outlay +which is thus occasioned is further increased by the more liberal allowance +bestowed since that date upon those who in the line of duty were wholly or +permanently disabled. Public opinion has given an emphatic sanction to +these measures of Congress, and it will be conceded that no part of our +public burden is more cheerfully borne than that which is imposed by this +branch of the service. It necessitates for the next fiscal year, in +addition to the amount justly chargeable to the naval pension fund, an +appropriation of $30,000,000. + +During the year ending the 30th of September, 1869, the Patent Office +issued 13,762 patents, and its receipts were $686,389, being $213,926 more +than the expenditures. + +Messages and Papers of the Presidents, Ulysses S. Grant, vol. 6, p.3995 + +I would respectfully call your attention to the recommendation of the +Secretary of the Interior for uniting the duties of supervising the +education of freedmen with the other duties devolving upon the Commissioner +of Education. + +If it is the desire of Congress to make the census which must be taken +during the year 1870 more complete and perfect than heretofore, I would +suggest early action upon any plan that may be agreed upon. As Congress at +the last session appointed a committee to take into consideration such +measures as might be deemed proper in reference to the census and report a +plan, I desist from saying more. + +I recommend to your favorable consideration the claims of the Agricultural +Bureau for liberal appropriations. In a country so diversified in climate +and soil as ours, and with a population so largely dependent upon +agriculture, the benefits that can be conferred by properly fostering this +Bureau are incalculable. + +I desire respectfully to call the attention of Congress to the inadequate +salaries of a number of the most important offices of the Government. In +this message I will not enumerate them, but will specify only the justices +of the Supreme Court. No change has been made in their salaries for fifteen +years. Within that time the labors of the court have largely increased and +the expenses of living have at least doubled. During the same time Congress +has twice found it necessary to increase largely the compensation of its +own members, and the duty which it owes to another department of the +Government deserves, and will undoubtedly receive, its due consideration. + +There are many subjects not alluded to in this message which might with +propriety be introduced, but I abstain, believing that your patriotism and +statesmanship will suggest the topics and the legislation most conducive to +the interests of the whole people. On my part I promise a rigid adherence +to the laws and their strict enforcement. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 5, 1870 + +To the Senate and House of Representatives: + +A year of peace and general prosperity to this nation has passed since the +last assembling of Congress. We have, through a kind Providence, been +blessed with abundant crops, and have been spared from complications and +war with foreign nations. In our midst comparative harmony has been +restored. It is to be regretted, however, that a free exercise of the +elective franchise has by violence and intimidation been denied to citizens +in exceptional cases in several of the States lately in rebellion, and the +verdict of the people has thereby been reversed. The States of Virginia, +Mississippi, and Texas have been restored to representation in our national +councils. Georgia, the only State now without representation, may +confidently be expected to take her place there also at the beginning of +the new year, and then, let us hope, will be completed the work of +reconstruction. With an acquiescence on the part of the whole people in the +national obligation to pay the public debt created as the price of our +Union, the pensions to our disabled soldiers and sailors and their widows +and orphans, and in the changes to the Constitution which have been made +necessary by a great rebellion, there is no reason why we should not +advance in material prosperity and happiness as no other nation ever did +after so protracted and devastating a war. + +Soon after the existing war broke out in Europe the protection of the +United States minister in Paris was invoked in favor of North Germans +domiciled in French territory. Instructions were issued to grant the +protection. This has been followed by an extension of American protection +to citizens of Saxony, Hesse and Saxe-Coburg, Gotha, Colombia, Portugal, +Uruguay, the Dominican Republic, Ecuador, Chile, Paraguay, and Venezuela in +Paris. The charge was an onerous one, requiring constant and severe labor, +as well as the exercise of patience, prudence, and good judgment. It has +been performed to the entire satisfaction of this Government, and, as I am +officially informed, equally so to the satisfaction of the Government of +North Germany. + +As soon as I learned that a republic had been proclaimed at Paris and that +the people of France had acquiesced in the change, the minister of the +United States was directed by telegraph to recognize it and to tender my +congratulations and those of the people of the United States. The +reestablishment in France of a system of government disconnected with the +dynastic traditions of Europe appeared to be a proper subject for the +felicitations of Americans. Should the present struggle result in attaching +the hearts of the French to our simpler forms of representative government, +it will be a subject of still further satisfaction to our people. While we +make no effort to impose our institutions upon the inhabitants of other +countries, and while we adhere to our traditional neutrality in civil +contests elsewhere, we can not be indifferent to the spread of American +political ideas in a great and highly civilized country like France. + +We were asked by the new Government to use our good offices, jointly with +those of European powers, in the interests of peace. Answer was made that +the established policy and the true interests of the United States forbade +them to interfere in European questions jointly with European powers. I +ascertained, informally and unofficially, that the Government of North +Germany was not then disposed to listen to such representations from any +power, and though earnestly wishing to see the blessings of peace restored +to the belligerents, with all of whom the United States are on terms of +friendship, I declined on the part of this Government to take a step which +could only result in injury to our true interests without advancing the +object for which our intervention was invoked. Should the time come when +the action of the United States can hasten the return of peace by a single +hour, that action will be heartily taken. I deemed it prudent, in view of +the number of persons of German and French birth living in the United +States, to issue, soon after official notice of a state of war had been +received from both belligerents, a proclamation defining the duties of the +United States as a neutral and the obligations of persons residing within +their territory to observe their laws and the laws of nations. This +proclamation was followed by others, as circumstances seemed to call for +them. The people, thus acquainted in advance of their duties and +obligations, have assisted in preventing violations of the neutrality of +the United States. + +It is not understood that the condition of the insurrection in Cuba has +materially changed since the close of the last session of Congress. In an +early stage of the contest the authorities of Spain inaugurated a system of +arbitrary arrests, of close confinement, and of military trial and +execution of persons suspected of complicity with the insurgents, and of +summary embargo of their properties, and sequestration of their revenues by +executive warrant. Such proceedings, so far as they affected the persons or +property of citizens of the United States, were in violation of the +provisions of the treaty of 1795 between the United States and Spain. + +Representations of injuries resulting to several persons claiming to be +citizens of the United States by reason of such violations were made to the +Spanish Government. From April, 1869, to June last the Spanish minister at +Washington had been clothed with a limited power to aid in redressing such +wrongs. That power was found to be withdrawn, "in view," as it was said, +"of the favorable situation in which the island of Cuba" then "was," which, +however, did not lead to a revocation or suspension of the extraordinary +and arbitrary functions exercised by the executive power in Cuba, and we +were obliged to make our complaints at Madrid. In the negotiations thus +opened, and still pending there, the United States only claimed that for +the future the rights secured to their citizens by treaty should be +respected in Cuba, and that as to the past a joint tribunal should be +established in the United States with full jurisdiction over all such +claims. Before such an impartial tribunal each claimant would be required +to prove his case. On the other hand, Spain would be at liberty to traverse +every material fact, and thus complete equity would be done. A case which +at one time threatened seriously to affect the relations between the United +States and Spain has already been disposed of in this way. The claim of the +owners of the Colonel Lloyd Aspinwall for the illegal seizure and detention +of that vessel was referred to arbitration by mutual consent, and has +resulted in an award to the United States, for the owners, of the sum of +$19,702.50 in gold. Another and long-pending claim of like nature, that of +the whaleship Canada, has been disposed of by friendly arbitrament during +the present year. It was referred, by the joint consent of Brazil and the +United States, to the decision of Sir Edward Thornton, Her Britannic +Majesty's minister at Washington, who kindly undertook the laborious task +of examining the voluminous mass of correspondence and testimony submitted +by the two Governments, and awarded to the United States the sum of +$100,740.09 in gold, which has since been paid by the Imperial Government. +These recent examples show that the mode which the United States have +proposed to Spain for adjusting the pending claims is just and feasible, +and that it may be agreed to by either nation without dishonor. It is to be +hoped that this moderate demand may be acceded to by Spain without further +delay. Should the pending negotiations, unfortunately and unexpectedly, be +without result, it will then become my duty to communicate that fact to +Congress and invite its action on the subject. + +The long-deferred peace conference between Spain and the allied South +American Republics has been inaugurated in Washington under the auspices of +the United States. Pursuant to the recommendation contained in the +resolution of the House of Representatives of the 17th of December, 1866, +the executive department of the Government offered its friendly offices for +the promotion of peace and harmony between Spain and the allied Republics. +Hesitations and obstacles occurred to the acceptance of the offer. +Ultimately, however, a conference was arranged, and was opened in this city +on the 29th of October last, at which I authorized the Secretary of State +to preside. It was attended by the ministers of Spain, Peru, Chile, and +Ecuador. In consequence of the absence of a representative from Bolivia, +the conference was adjourned until the attendance of a plenipotentiary from +that Republic could be secured or other measures could be adopted toward +compassing its objects. + +The allied and other Republics of Spanish origin on this continent may see +in this fact a new proof of our sincere interest in their welfare, of our +desire to see them blessed with good governments, capable of maintaining +order and of preserving their respective territorial integrity, and of our +sincere wish to extend our own commercial and social relations with them. +The time is not probably far distant when, in the natural course of events, +the European political connection with this continent will cease. Our +policy should be shaped, in view of this probability, so as to ally the +commercial interests of the Spanish American States more closely to our +own, and thus give the United States all the preeminence and all the +advantage which Mr. Monroe, Mr. Adams, and Mr. Clay contemplated when they +proposed to join in the congress of Panama. + +During the last session of Congress a treaty for the annexation of the +Republic of San Domingo to the United States failed to receive the +requisite two-thirds vote of the Senate. I was thoroughly convinced then +that the best interests of this country, commercially and materially, +demanded its ratification. Time has only confirmed me in this view. I now +firmly believe that the moment it is known that the United States have +entirely abandoned the project of accepting as a part of its territory the +island of San Domingo a free port will be negotiated for by European +nations in the Bay of Samana. A large commercial city will spring up, to +which we will be tributary without receiving corresponding benefits, and +then will be seen the folly of our rejecting so great a prize. The +Government of San Domingo has voluntarily sought this annexation. It is a +weak power, numbering probably less than 120,000 souls, and yet possessing +one of the richest territories under the sun, capable of supporting a +population of 10,000,000 people in luxury. The people of San Domingo are +not capable of maintaining themselves in their present condition, and must +look for outside support. They yearn for the protection of our free +institutions and laws, our progress and civilization. Shall we refuse +them? + +The acquisition of San Domingo is desirable because of its geographical +position. It commands the entrance to the Caribbean Sea and the Isthmus +transit of commerce. It possesses the richest soil, best and most capacious +harbors, most salubrious climate, and the most valuable products of the +forests, mine, and soil of any of the West India Islands. Its possession by +us will in a few years build up a coastwise commerce of immense magnitude, +which will go far toward restoring to us our lost merchant marine. It will +give to us those articles which we consume so largely and do not produce, +thus equalizing our exports and imports. In case of foreign war it will +give us command of all the islands referred to, and thus prevent an enemy +from ever again possessing himself of rendezvous upon our very coast. At +present our coast trade between the States bordering on the Atlantic and +those bordering on the Gulf of Mexico is cut into by the Bahamas and the +Antilies. Twice we must, as it were, pass through foreign countries to get +by sea from Georgia to the west coast of Florida. + +San Domingo, with a stable government, under which her immense resources +can be developed, will give remunerative wages to tens of thousands of +laborers not now upon the island. This labor will take advantage of every +available means of transportation to abandon the adjacent islands and seek +the blessings of freedom and its sequence--each inhabitant receiving the +reward of his own labor. Porto Rico and Cuba will have to abolish slavery, +as a measure of self-preservation, to retain their laborers. + +San Domingo will become a large consumer of the products of Northern farms +and manufactories. The cheap rate at which her citizens can be furnished +with food, tools, and machinery will make it necessary that contiguous +islands should have the same advantages in order to compete in the +production of sugar, coffee, tobacco, tropical fruits, etc. This will open +to us a still wider market for our products. The production of our own +supply of these articles will cut off more than one hundred millions of our +annual imports, besides largely increasing our exports. With such a picture +it is easy to see how our large debt abroad is ultimately to be +extinguished. With a balance of trade against us (including interest on +bonds held by foreigners and money spent by our citizens traveling in +foreign lands) equal to the entire yield of the precious metals in this +country, it is not so easy to see how this result is to be otherwise +accomplished. + +The acquisition of San Domingo is an adherence to the "Monroe doctrine;" it +is a measure of national protection; it is asserting our just claim to a +controlling influence over the great commercial traffic soon to flow from +west to east by way of the Isthmus of Darien; it is to build up our +merchant marine; it is to furnish new markets for the products of our +farms, shops, and manufactories; it is to make slavery insupportable in +Cuba and Porto Rico at once, and ultimately so in Brazil; it is to settle +the unhappy condition of Cuba and end an exterminating conflict; it is to +provide honest means of paying our honest debts without overtaxing the +people; it is to furnish our citizens with the necessaries of everyday life +at cheaper rates than ever before; and it is, in fine, a rapid stride +toward that greatness which the intelligence, industry, and enterprise of +the citizens of the United States entitle this country to assume among +nations. + +In view of the importance of this question, I earnestly urge upon Congress +early action expressive of its views as to the best means of acquiring San +Domingo. My suggestion is that by joint resolution of the two Houses of +Congress the Executive be authorized to appoint a commission to negotiate a +treaty with the authorities of San Domingo for the acquisition of that +island, and that an appropriation be made to defray the expenses of such a +commission. The question may then be determined, either by the action of +the Senate upon the treaty or the joint action of the two Houses of +Congress upon a resolution of annexation, as in the case of the acquisition +of Texas. So convinced am I of the advantages to flow from the acquisition +of San Domingo, and of the great disadvantages--I might almost say +calamities--to flow from nonacquisition, that I believe the subject has +only to be investigated to be approved. + +It is to be regretted that our representations in regard to the injurious +effects, especially upon the revenue of the United States, of the policy of +the Mexican Government in exempting from impost duties a large tract of its +territory on our borders have not only been fruitless, but that it is even +proposed in that country to extend the limits within which the privilege +adverted to has hitherto been enjoyed. The expediency of taking into your +serious consideration proper measures for countervailing the policy +referred to will, it is presumed, engage your earnest attention. + +It is the obvious interest, especially of neighboring nations, to provide +against impunity to those who may have committed high crimes within their +borders and who may have sought refuge abroad. For this purpose extradition +treaties have been concluded with several of the Central American +Republics, and others are in progress. + +The sense of Congress is desired, as early as may be convenient, upon the +proceedings of the commission on claims against Venezuela, as communicated +in my messages of March 16, 1869, March 1, 1870, and March 31, 1870. It has +not been deemed advisable to distribute any of the money which has been +received from that Government until Congress shall have acted on the +subject. + +The massacres of French and Russian residents at Tien-Tsin, under +circumstances of great barbarity, was supposed by some to have been +premeditated, and to indicate a purpose among the populace to exterminate +foreigners in the Chinese Empire. The evidence fails to establish such a +supposition, but shows a complicity between the local authorities and the +mob. The Government at Peking, however, seems to have been disposed to +fulfill its treaty obligations so far as it was able to do so. +Unfortunately, the news of the war between the German States and France +reached China soon after the massacre. It would appear that the popular +mind became possessed with the idea that this contest, extending to Chinese +waters, would neutralize the Christian influence and power, and that the +time was coming when the superstitious masses might expel all foreigners +and restore mandarin influence. Anticipating trouble from this cause, I +invited France and North Germany to make an authorized suspension of +hostilities in the East (where they were temporarily suspended by act of +the commanders), and to act together for the future protection in China of +the lives and properties of Americans and Europeans. + +Since the adjournment of Congress the ratifications of the treaty with +Great Britain for abolishing the mixed courts for the suppression of the +slave trade have been exchanged. It is believed that the slave trade is now +confined to the eastern coast of Africa, whence the slaves are taken to +Arabian markets. + +The ratifications of the naturalization convention between Great Britain +and the United States have also been exchanged during the recess, and thus +a long-standing dispute between the two Governments has been settled in +accordance with the principles always contended for by the United States. + +In April last, while engaged in locating a military reservation near +Pembina, a corps of engineers discovered that the commonly received +boundary line between the United States and the British possessions at that +place is about 4,700 feet south of the true position of the forty-ninth +parallel, and that the line, when run on what is now supposed to be the +true position of that parallel, would leave the fort of the Hudsons Bay +Company at Pembina within the territory of the United States. This +information being communicated to the British Government, I was requested +to consent, and did consent, that the British occupation of the fort of the +Hudsons Bay Company should continue for the present. I deem it important, +however, that this part of the boundary line should be definitely fixed by +a joint commission of the two Governments, and I submit herewith estimates +of the expense of such a commission on the part of the United States and +recommend that an appropriation be made for that purpose. The land boundary +has already been fixed and marked from the summit of the Rocky Mountains to +the Georgian Bay. It should now be in like manner marked from the Lake of +the Woods to the summit of the Rocky Mountains. + +I regret to say that no conclusion has been reached for the adjustment of +the claims against Great Britain growing out of the course adopted by that +Government during the rebellion. The cabinet of London, so far as its views +have been expressed, does not appear to be willing to concede that Her +Majesty's Government was guilty of any negligence, or did or permitted any +act during the war by which the United States has just cause of complaint. +Our firm and unalterable convictions are directly the reverse. I therefore +recommend to Congress to authorize the appointment of a commission to take +proof of the amount and the ownership of these several claims, on notice to +the representative of Her Majesty at Washington, and that authority be +given for the settlement of these claims by the United States, so that the +Government shall have the ownership of the private claims, as well as the +responsible control of all the demands against Great Britain. It can not be +necessary to add that whenever Her Majesty's Government shall entertain a +desire for a full and friendly adjustment of these claims the United States +will enter upon their consideration with an earnest desire for a conclusion +consistent with the honor and dignity of both nations. + +The course pursued by the Canadian authorities toward the fishermen of the +United States during the past season has not been marked by a friendly +feeling. By the first article of the convention of 1818 between Great +Britain and the United States it was agreed that the inhabitants of the +United States should have forever, in common with British subjects, the +right of taking fish in certain waters therein defined. In the waters not +included in the limits named in the convention (within 3 miles of parts of +the British coast) it has been the custom for many years to give to +intruding fishermen of the United States a reasonable warning of their +violation of the technical rights of Great Britain. The Imperial Government +is understood to have delegated the whole or a share of its jurisdiction or +control of these inshore fishing grounds to the colonial authority known as +the Dominion of Canada, and this semi-independent but irresponsible agent +has exercised its delegated powers in an unfriendly way. Vessels have been +seized without notice or warning, in violation of the custom previously +prevailing, and have been taken into the colonial ports, their voyages +broken up, and the vessels condemned. There is reason to believe that this +unfriendly and vexatious treatment was designed to bear harshly upon the +hardy fishermen of the United States, with a view to political effect upon +this Government. The statutes of the Dominion of Canada assume a still +broader and more untenable jurisdiction over the vessels of the United +States. They authorize officers or persons to bring vessels hovering within +3 marine miles of any of the coasts, bays, creeks, or harbors of Canada +into port, to search the cargo, to examine the master on oath touching the +cargo and voyage, and to inflict upon him a heavy pecuniary penalty if true +answers are not given; and if such a vessel is found "preparing to fish" +within 3 marine miles of any of such coasts, bays, creeks, or harbors +without a license, or after the expiration of the period named in the last +license granted to it, they provide that the vessel, with her tackle, etc., +shall be forfeited. It is not known that any condemnations have been made +under this statute. Should the authorities of Canada attempt to enforce it, +it will become my duty to take such steps as may be necessary to protect +the rights of the citizens of the United States. + +It has been claimed by Her Majesty's officers that the fishing vessels of +the United States have no right to enter the open ports of the British +possessions in North America, except for the purposes of shelter and +repairing damages, of purchasing wood and obtaining water; that they have +no right to enter at the British custom-houses or to trade there except in +the purchase of wood and water, and that they must depart within +twenty-four hours after notice to leave. It is not known that any seizure +of a fishing vessel carrying the flag of the United States has been made +under this claim. So far as the claim is founded on an alleged construction +of he convention of 1818, it can not be acquiesced in by the United States. +It is hoped that it will not be insisted on by Her Majesty's Government. + +During the conferences which preceded the negotiation of the convention of +1818 the British commissioners proposed to expressly exclude the fishermen +of the United States from "the privilege of carrying on trade with any of +His Britannic Majesty's subjects residing within the limits assigned for +their use;" and also that it should not be "lawful for the vessels of the +United States engaged in said fishery to have on board any goods, wares, or +merchandise whatever, except such as may be necessary for the prosecution +of their voyages to and from the said fishing grounds: and any vessel of +the United States which shall contravene this regulation may be seized, +condemned, and confiscated, with her cargo." + +This proposition, which is identical with the construction now put upon the +language of the convention, was emphatically rejected by the American +commissioners, and thereupon was abandoned by the British +plenipotentiaries, and Article I, as it stands in the convention, was +substituted. + +If, however, it be said that this claim is founded on provincial or +colonial statutes, and not upon the convention, this Government can not but +regard them as unfriendly, and in contravention of the spirit, if not of +the letter, of the treaty, for the faithful execution of which the Imperial +Government is alone responsible. + +Anticipating that an attempt may possibly be made by the Canadian +authorities in the coming season to repeat their unneighborly acts toward +our fishermen, I recommend you to confer upon the Executive the power to +suspend by proclamation the operation of the laws authorizing the transit +of goods, wares, and merchandise in bond across the territory of the United +States to Canada, and, further, should such an extreme measure become +necessary, to suspend the operation of any laws whereby the vessels of the +Dominion of Canada are permitted to enter the waters of the United States. + +A like unfriendly disposition has been manifested on the part of Canada in +the maintenance of a claim of right to exclude the citizens of the United +States from the navigation of the St. Lawrence. This river constitutes a +natural outlet to the ocean for eight States, with an aggregate population +of about 17,600,000 inhabitants, and with an aggregate tonnage of 661,367 +tons upon the waters which discharge into it. The foreign commerce of our +ports on these waters is open to British competition, and the major part of +it is done in British bottoms. + +If the American seamen be excluded from this natural avenue to the ocean, +the monopoly of the direct commerce of the lake ports with the Atlantic +would be in foreign hands, their vessels on transatlantic voyages having an +access to our lake ports which would be denied to American vessels on +similar voyages. To state such a proposition is to refute its justice. + +During the Administration of Mr. John Quincy Adams Mr. Clay unanswerably +demonstrated the natural right of the citizens of the United States to the +navigation of this river, claiming that the act of the congress of Vienna +in opening the Rhine and other rivers to all nations showed the judgment of +European jurists and statesmen that the inhabitants of a country through +which a navigable river passes have a natural right to enjoy the navigation +of that river to and into the sea, even though passing through the +territories of another power. This right does not exclude the coequal right +of the sovereign possessing the territory through which the river debouches +into the sea to make such regulations relative to the police of the +navigation as may be reasonably necessary; but those regulations should be +framed in a liberal spirit of comity, and should not impose needless +burdens upon the commerce which has the right of transit. It has been found +in practice more advantageous to arrange these regulations by mutual +agreement. The United States are ready to make any reasonable arrangement +as to the police of the St. Lawrence which may be suggested by Great +Britain. + +If the claim made by Mr. Clay was just when the population of States +bordering on the shores of the Lakes was only 3,400,000, it now derives +greater force and equity from the increased population, wealth, production, +and tonnage of the States on the Canadian frontier. Since Mr. Clay advanced +his argument in behalf of our right the principle for which he contended +has been frequently, and by various nations, recognized by law or by +treaty, and has been extended to several other great rivers. By the treaty +concluded at Mayence in 1831 the Rhine was declared free from the point +where it is first navigable into the sea. By the convention between Spain +and Portugal concluded in 1835 the navigation of the Douro throughout its +whole extent was made free for the subjects of both Crowns. In 1853 the +Argentine Confederation by treaty threw open the free navigation of the +Parana and the Uruguay to the merchant vessels of all nations. In 1856 the +Crimean War was closed by a treaty which provided for the free navigation +of the Danube. In 1858 Bolivia by treaty declared that it regarded the +rivers Amazon and La Plata, in accordance with fixed principles of national +law, as highways or channels opened by nature for the commerce of all +nations. In 1859 the Paraguay was made free by treaty, and in December, +1866, the Emperor of Brazil by imperial decree declared the Amazon to be +open to the frontier of Brazil to the merchant ships of all nations. The +greatest living British authority on this subject, while asserting the +abstract right of the British claim, says: It seems difficult to deny that +Great Britain may ground her refusal upon strict law, but it is equally +difficult to deny, first, that in so doing she exercises harshly an extreme +and hard law; secondly, that her conduct with respect to the navigation of +the St. Lawrence is in glaring and discreditable inconsistency with her +conduct with respect to the navigation of the Mississippi. On the ground +that she possessed a small domain in which the Mississippi took its rise, +she insisted on the right to navigate the entire volume of its waters. On +the ground that she possesses both banks of the St. Lawrence, where it +disembogues itself into the sea, she denies to the United States the right +of navigation, though about one-half of the waters of Lakes Ontario. Erie, +Huron, and Superior, and the whole of Lake Michigan, through which the +river flows, are the property of the United States. The whole nation is +interested in securing cheap transportation from the agricultural States of +the West to the Atlantic Seaboard. To the citizens of those States it +secures a greater return for their labor; to the inhabitants of the +seaboard it affords cheaper food; to the nation, an increase in the annual +surplus of wealth. It is hoped that the Government of Great Britain will +see the justice of abandoning the narrow and inconsistent claim to which +her Canadian Provinces have urged her adherence. + +Our depressed commerce is a subject to which I called your special +attention at the last session, and suggested that we will in the future +have to look more to the countries south of us, and to China and Japan, for +its revival. Our representatives to all these Governments have exerted +their influence to encourage trade between the United States and the +countries to which they are accredited. But the fact exists that the +carrying is done almost entirely in foreign bottoms, and while this state +of affairs exists we can not control our due share of the commerce of the +world; that between the Pacific States and China and Japan is about all the +carrying trade now conducted in American vessels. I would recommend a +liberal policy toward that line of American steamers--one that will insure +its success, and even increased usefulness. + +The cost of building iron vessels, the only ones that can compete with +foreign ships in the carrying trade, is so much greater in the United +States than in foreign countries that without some assistance from the +Government they can not be successfully built here. There will be several +propositions laid before Congress in the course of the present session +looking to a remedy for this evil. Even if it should be at some cost to the +National Treasury, I hope such encouragement will be given as will secure +American shipping on the high seas and American shipbuilding at home. + +The condition of the archives at the Department of State calls for the +early action of Congress. The building now rented by that Department is a +frail structure, at an inconvenient distance from the Executive Mansion and +from the other Departments, is ill adapted to the purpose for which it is +used, has not capacity to accommodate the archives, and is not fireproof. +Its remote situation, its slender construction, and the absence of a supply +of water in the neighborhood leave but little hope of safety for either the +building or its contents in case of the accident of a fire. Its destruction +would involve the loss of the rolls containing the original acts and +resolutions of Congress, of the historic records of the Revolution and of +the Confederation, of the whole series of diplomatic and consular archives +since the adoption of the Constitution, and of the many other valuable +records and papers left with that Department when it was the principal +depository of the governmental archives. I recommend an appropriation for +the construction of a building for the Department of State. + +I recommend to your consideration the propriety of transferring to the +Department of the Interior, to which they seem more appropriately to +belong, all powers and duties in relation to the Territories with which the +Department of State is now charged by law or usage; and from the Interior +Department to the War Department the Pension Bureau, so far as it regulates +the payment of soldiers' pensions. I would further recommend that the +payment of naval pensions be transferred to one of the bureaus of the Navy +Department. + +The estimates for the expenses of the Government for the next fiscal year +are $18,244,346.01 less than for the current one, but exceed the +appropriations for the present year for the same items $8,972,127.56. In +this estimate, however, is included $22,338,278.37 for public works +heretofore begun under Congressional provision, and of which only so much +is asked as Congress may choose to give. The appropriation for the same +works for the present fiscal year was $11,984,518.08. + +The average value of gold, as compared with national currency, for the +whole of the year 1869 was about 134, and for eleven months of 1870 the +same relative value has been about 115. The approach to a specie basis is +very gratifying, but the fact can not be denied that the instability of the +value of our currency is prejudicial to our prosperity, and tends to keep +up prices, to the detriment of trade. The evils of a depreciated and +fluctuating currency are so great that now, when the premium on gold has +fallen so much, it would seem that the time has arrived when by wise and +prudent legislation Congress should look to a policy which would place our +currency at par with gold at no distant day. + +The tax collected from the people has been reduced more than $80,000,000 +per annum. By steadiness in our present course there is no reason why in a +few short years the national tax gatherer may not disappear from the door +of the citizen almost entirely. With the revenue stamp dispensed by +postmasters in every community, a tax upon liquors of all sorts and tobacco +in all its forms, and by a wise adjustment of the tariff, which will put a +duty only upon those articles which we could dispense with, known as +luxuries, and on those which we use more of than we produce, revenue enough +may be raised after a few years of peace and consequent reduction of +indebtedness to fulfill all our obligations. A further reduction of +expenses, in addition to a reduction of interest account, may be relied on +to make this practicable. Revenue reform, if it means this, has my hearty +support. If it implies a collection of all the revenue for the support of +the Government, for the payment of principal and interest of the public +debt, pensions, etc., by directly taxing the people, then I am against +revenue reform, and confidently believe the people are with me. If it means +failure to provide the necessary means to defray all the expenses of +Government, and thereby repudiation of the public debt and pensions, then I +am still more opposed to such kind of revenue reform. Revenue reform has +not been defined by any of its advocates to my knowledge, but seems to be +accepted as something which is to supply every man's wants without any cost +or effort on his part. + +A true revenue reform can not be made in a day, but must be the work of +national legislation and of time. As soon as the revenue can be dispensed +with, all duty should be removed from coffee, tea and other articles of +universal use not produced by ourselves. The necessities of the country +compel us to collect revenue from our imports. An army of assessors and +collectors is not a pleasant sight to the citizen, but that of a tariff for +revenue is necessary. Such a tariff, so far as it acts as an encouragement +to home production, affords employment to labor at living wages, in +contrast to the pauper labor of the Old World, and also in the development +of home resources. + +Under the act of Congress of the 15th day of July, 1870, the Army has +gradually been reduced, so that on the 1st day of January, 1871, the number +of commissioned officers and men will not exceed the number contemplated by +that law. + +The War Department building is an old structure, not fireproof, and +entirely inadequate in dimensions to our present wants. Many thousands of +dollars are now paid annually for rent of private buildings to accommodate +the various bureaus of the Department. I recommend an appropriation for a +new War Department building, suited to the present and growing wants of the +nation. + +The report of the Secretary of War shows a very satisfactory reduction in +the expenses of the Army for the last fiscal year. For details you are +referred to his accompanying report. + +The expenses of the Navy for the whole of the last year--i.e., from +December 1, 1869, the date of the last report--are less than $19,000,000, +or about $1,000,000 less than they were the previous year. The expenses +since the commencement of this fiscal year--i.e., since July 1--show for +the five months a decrease of over $2,400,000 from those of the +corresponding months last year. The estimates for the current year were +$28,205,671.37. Those for next year are $20,683,317, with $955,100 +additional for necessary permanent improvements. These estimates are made +closely for the mere maintenance of the naval establishment as now is, +without much in the nature of permanent improvement. The appropriations +made for the last and current years were evidently intended by Congress, +and are sufficient only, to keep the Navy on its present footing by the +repairing and refitting of our old ships. + +This policy must, of course, gradually but surely destroy the Navy, and it +is in itself far from economical, as each year that it is pursued the +necessity for mere repairs in ships and navy-yards becomes more imperative +and more costly, and our current expenses are annually increased for the +mere repair of ships, many of which must soon become unsafe and useless. I +hope during the present session of Congress to be able to submit to it a +plan by which naval vessels can be built and repairs made with great saving +upon the present cost. + +It can hardly be wise statesmanship in a Government which represents a +country with over 5,000 miles of coast line on both oceans, exclusive of +Alaska, and containing 40,000,000 progressive people, with relations of +every nature with almost every foreign country, to rest with such +inadequate means of enforcing any foreign policy, either of protection or +redress. Separated by the ocean from the nations of the Eastern Continent, +our Navy is our only means of direct protection to our citizens abroad or +for the enforcement of any foreign policy. + +The accompanying report of the Postmaster-General shows a most satisfactory +working of that Department. With the adoption of the recommendations +contained therein, particularly those relating to a reform in the franking +privilege and the adoption of the "correspondence cards," a self-sustaining +postal system may speedily be looked for, and at no distant day a further +reduction of the rate of postage be attained. + +I recommend authorization by Congress to the Postmaster-General and +Attorney-General to issue all commissions to officials appointed through +their respective Departments. At present these commissions, where +appointments are Presidential, are issued by the State Department. The law +in all the Departments of Government, except those of the Post-Office and +of Justice, authorizes each to issue its own commissions. + +Always favoring practical reforms, I respectfully call your attention to +one abuse of long standing which I would like to see remedied by this +Congress. It is a reform in the civil service of the country. I would have +it go beyond the mere fixing of the tenure of office of clerks and +employees who do not require "the advice and consent of the Senate" to make +their appointments complete. I would have it govern, not the tenure, but +the manner of making all appointments. There is no duty which so much +embarrasses the Executive and heads of Departments as that of appointments, +nor is there any such arduous and thankless labor imposed on Senators and +Representatives as that of finding places for constituents. The present +system does not secure the best men, and often not even fit men, for public +place. The elevation and purification of the civil service of the +Government will be hailed with approval by the whole people of the United +States. + +Reform in the management of Indian affairs has received the special +attention of the Administration from its inauguration to the present day. +The experiment of making it a missionary work was tried with a few agencies +given to the denomination of Friends, and has been found to work most +advantageously. All agencies and superintendencies not so disposed of were +given to officers of the Army. The act of Congress reducing the Army +renders army officers ineligible for civil positions. Indian agencies being +civil offices, I determined to give all the agencies to such religious +denominations as had heretofore established missionaries among the Indians, +and perhaps to some other denominations who would undertake the work on the +same terms--i.e., as a missionary work. The societies selected are allowed +to name their own agents, subject to the approval of the Executive, and are +expected to watch over them and aid them as missionaries, to Christianize +and civilize the Indian, and to train him in the arts of peace. The +Government watches over the official acts of these agents, and requires of +them as strict an accountability as if they were appointed in any other +manner. I entertain the confident hope that the policy now pursued will in +a few years bring all the Indians upon reservations, where they will live +in houses, and have schoolhouses and churches, and will be pursuing +peaceful and self-sustaining avocations, and where they may be visited by +the law-abiding white man with the same impunity that he now visits the +civilized white settlements. I call your special attention to the report of +the Commissioner of Indian Affairs for full information on this subject. + +During the last fiscal year 8,095,413 acres of public land were disposed +of. Of this quantity 3,698,910.05 acres were taken under the homestead law +and 2,159,515.81 acres sold for cash. The remainder was located with +military warrants, college or Indian scrip, or applied in satisfaction of +grants to railroads or for other public uses. The entries under the +homestead law during the last year covered 961,545 acres more than those +during the preceding year. Surveys have been vigorously prosecuted to the +full extent of the means applicable to the purpose. The quantity of land in +market will amply supply the present demand. The claim of the settler under +the homestead or the preemption laws is not, however, limited to lands +subject to sale at private entry. Any unappropriated surveyed public land +may, to a limited amount, be acquired under the former laws if the party +entitled to enter under them will comply with the requirements they +prescribe in regard to the residence and cultivation. The actual settler's +preference right of purchase is even broader, and extends to lands which +were unsurveyed at the time of his settlement. His right was formerly +confined within much narrower limits, and at one period of our history was +conferred only by special statutes. They were enacted from time to time to +legalize what was then regarded as an unauthorized intrusion upon the +national domain. The opinion that the public lands should be regarded +chiefly as a source of revenue is no longer maintained. The rapid +settlement and successful cultivation of them are now justly considered of +more importance to our well-being than is the fund which the sale of them +would produce. The remarkable growth and prosperity of our new States and +Territories attest the wisdom of the legislation which invites the tiller +of the soil to secure a permanent home on terms within the reach of all. +The pioneer who incurs the dangers and privations of a frontier life, and +thus aids in laying the foundation of new commonwealths, renders a signal +service to his country, and is entitled to its special favor and +protection. These laws secure that object and largely promote the general +welfare. They should therefore be cherished as a permanent feature of our +land system. + +Good faith requires us to give full effect to existing grants. The +time-honored and beneficent policy of setting apart certain sections of +public land for educational purposes in the new States should be continued. +When ample provision shall have been made for these objects, I submit as a +question worthy of serious consideration whether the residue of our +national domain should not be wholly disposed of under the provisions the +homestead and preemption laws. + +In addition to the swamp and overflowed lands granted to the States in +which they are situated, the lands taken under the agricultural-college +acts and for internal-improvement purposes under the act of September, +1841, and the acts supplemental thereto, there had been conveyed up to the +close of the last fiscal year, by patent or other equivalent title, to +States and corporations 27,836,257.63 acres for railways, canals, and wagon +roads. It is estimated that an additional quantity of 174,735,523 acres is +still due under grants for like uses. The policy of thus aiding the States +in building works of internal improvement was inaugurated more than forty +years since in the grants to Indiana and Illinois, to aid those States in +opening canals to connect the waters of the Wabash with those of Lake Erie +and the waters of the Illinois with those of Lake Michigan. It was +followed, with some modifications, in the grant to Illinois of alternate +sections of public land within certain limits of the Illinois Central +Railway. Fourteen States and sundry corporations have received similar +subsidies in connection with railways completed or in process of +construction. As the reserved sections are rated at the double minimum, the +sale of them at the enhanced price has thus in many instances indemnified +the Treasury for the granted lands. The construction of some of these +thoroughfares has undoubtedly given a vigorous impulse to the development +of our resources and the settlement of the more distant portions of the +country. It may, however, be well insisted that much of our legislation in +this regard has been characterized by indiscriminate and profuse +liberality. The United States should not loan their credit in aid of any +enterprise undertaken by States or corporations, nor grant lands in any +instance, unless the projected work is of acknowledged national importance. +I am strongly inclined to the opinion that it is inexpedient and +unnecessary to bestow subsidies of either description; but should Congress +determine otherwise I earnestly recommend that the right of settlers and of +the public be more effectually secured and protected by appropriate +legislation. + +During the year ending September 30, 1870, there were filed in the Patent +Office 19,411 applications for patents, 3,374 caveats, and 160 applications +for the extension of patents. Thirteen thousand six hundred and twenty-two +patents, including reissues and designs, were issued, 1,010 extended, and +1,089 allowed, but not issued by reason of the nonpayment of the final +fees. The receipts of the office during the year were $136,304.29 in excess +of its expenditures. + +The work of the Census Bureau has been energetically prosecuted. The +preliminary report, containing much information of special value and +interest, will be ready for delivery during the present session. The +remaining volumes will be completed with all the dispatch consistent with +perfect accuracy in arranging and classifying the returns. We shall thus at +no distant day be furnished with an authentic record of our condition and +resources. It will, I doubt not, attest the growing prosperity of the +country, although during the decade which has just closed it was so +severely tried by the great war waged to maintain its integrity and to +secure and perpetuate our free institutions. + +During the last fiscal year the sum paid to pensioners, including the cost +of disbursement, was $27,780,811.11, and 1,758 bounty-land warrants were +issued. At its close 198,686 names were on the pension rolls. + +The labors of the Pension Office have been directed to the severe scrutiny +of the evidence submitted in favor of new claims and to the discovery of +fictitious claims which have been heretofore allowed. The appropriation for +the employment of special agents for the investigation of frauds has been +judiciously used, and the results obtained have been of unquestionable +benefit to the service. + +The subjects of education and agriculture are of great interest to the +success of our republican institutions, happiness, and grandeur as a +nation. In the interest of one a bureau has been established in the +Interior Department--the Bureau of Education; and in the interest of the +other, a separate Department, that of Agriculture. I believe great general +good is to flow from the operations of both these Bureaus if properly +fostered. I can not commend to your careful consideration too highly the +reports of the Commissioners of Education and of Agriculture, nor urge too +strongly such liberal legislation as to secure their efficiency. + +In conclusion I would sum up the policy of the Administration to be a +thorough enforcement of every law; a faithful collection of every tax +provided for; economy in the disbursement of the same; a prompt payment of +every debt of the nation; a reduction of taxes as rapidly as the +requirements of the country will admit; reductions of taxation and tariff, +to be so arranged as to afford the greatest relief to the greatest number; +honest and fair dealings with all other peoples, to the end that war, with +all its blighting consequences, may be avoided, but without surrendering +any right or obligation due to us; a reform in the treatment of Indians and +in the whole civil service of the country; and, finally, in securing a +pure, untrammeled ballot, where every man entitled to cast a vote may do +so, just once at each election, without fear of molestation or proscription +on account of his political faith, nativity, of color. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 4, 1871 + +To the Senate and House of Representatives: + +In addressing my third annual message to the law-making branch of the +Government it is gratifying to be able to state that during the past year +success has generally attended the effort to execute all laws found upon +the statute books. The policy has been not to inquire into the wisdom of +laws already enacted, but to learn their spirit and intent and to enforce +them accordingly. + +The past year has, under a wise Providence, been one of general prosperity +to the nation. It has, however, been attended with more than usual +chastisements in the loss of life and property by storm and fire. These +disasters have served to call forth the best elements of human nature in +our country and to develop a friendship for us on the part of foreign +nations which goes far toward alleviating the distresses occasioned by +these calamities. The benevolent, who have so generously shared their means +with the victims of these misfortunes, will reap their reward in the +consciousness of having performed a noble act and in receiving the grateful +thanks of men, women, and children whose sufferings they have relieved. + +The relations of the United States with foreign powers continue to be +friendly. The year has been an eventful one in witnessing two great +nations, speaking one language and having one lineage, settling by peaceful +arbitration disputes of long standing and liable at any time to bring those +nations into bloody and costly conflict. An example has thus been set +which, if successful in its final issue, may be followed by other civilized +nations, and finally be the means of returning to productive industry +millions of men now maintained to settle the disputes of nations by the +bayonet and the broadside. + +I transmit herewith a copy of the treaty alluded to, which has been +concluded since the adjournment of Congress with Her Britannic Majesty, and +a copy of the protocols of the conferences of the commissioners by whom it +was negotiated. This treaty provides methods for adjusting the questions +pending between the two nations. + +Various questions are to be adjusted by arbitration. I recommend Congress +at an early day to make the necessary provision for the tribunal at Geneva +and for the several commissioners on the part of the United States called +for by the treaty. + +His Majesty the King of Italy, the President of the Swiss Confederation, +and His Majesty the Emperor of Brazil have each consented, on the joint +request of the two powers, to name an arbiter for the tribunal at Geneva. I +have caused my thanks to be suitably expressed for the readiness with which +the joint request has been complied with, by the appointment of gentlemen +of eminence and learning to these important positions. + +His Majesty the Emperor of Germany has been pleased to comply with the +joint request of the two Governments, and has consented to act as the +arbitrator of the disputed water boundary between the United States and +Great Britain. + +The contracting parties in the treaty have undertaken to regard as between +themselves certain principles of public law, for which the United States +have contended from the commencement of their history. They have also +agreed to bring those principles to the knowledge of the other maritime +powers and to invite them to accede to them. Negotiations are going on as +to the form of the note by which the invitation is to be extended to the +other powers. + +I recommend the legislation necessary on the part of the United States to +bring into operation the articles of the treaty relating to the fisheries +and to the other matters touching the relations of the United States toward +the British North American possessions, to become operative so soon as the +proper legislation shall be had on the part of Great Britain and its +possessions. It is much to be desired that this legislation may become +operative before the fishermen of the United States begin to make their +arrangements for the coming season. + +I have addressed a communication, of which a copy is transmitted herewith, +to the governors of New York, Pennsylvania, Ohio, Indiana, Michigan, +Illinois, and Wisconsin, urging upon the governments of those States, +respectively, the necessary action on their part to carry into effect the +object of the article of the treaty which contemplates the use of the +canals, on either side, connected with the navigation of the lakes and +rivers forming the boundary, on terms of equality, by the inhabitants of +both countries. It is hoped that the importance of the object and the +benefits to flow therefrom will secure the speedy approval and legislative +sanction of the States concerned. + +I renew the recommendation for an appropriation for determining the true +position of the forty-ninth parallel of latitude where it forms the +boundary between the United States and the British North American +possessions, between the Lake of the Woods and the summit of the Rocky +Mountains. The early action of Congress on this recommendation would put it +in the power of the War Department to place a force in the field during the +next summer. + +The resumption of diplomatic relations between France and Germany has +enabled me to give directions for the withdrawal of the protection extended +to Germans in France by the diplomatic and consular representatives of the +United States in that country. It is just to add that the delicate duty of +this protection has been performed by the minister and the consul-general +at Paris, and the various consuls in France under the supervision of the +latter, with great kindness as well as with prudence and tact. Their course +has received the commendation of the German Government, and has wounded no +susceptibility of the French. + +The Government of the Emperor of Germany continues to manifest a friendly +feeling toward the United States, and a desire to harmonize with the +moderate and just policy which this Government maintains in its relations +with Asiatic powers, as well as with the South American Republics. I have +given assurances that the friendly feelings of that Government are fully +shared by the United States. + +The ratifications of the consular and naturalization conventions with the +Austro-Hungarian Empire have been exchanged. + +I have been officially informed of the annexation of the States of the +Church to the Kingdom of Italy, and the removal of the capital of that +Kingdom to Rome. In conformity with the established policy of the United +States, I have recognized this change. The ratifications of the new treaty +of commerce between the United States and Italy have been exchanged. The +two powers have agreed in this treaty that private property at sea shall be +exempt from capture in case of war between the two powers. The United +States have spared no opportunity of incorporating this rule into the +obligation of nations. + +The Forty-first Congress, at its third session, made an appropriation for +the organization of a mixed commission for adjudicating upon the claims of +citizens of the United States against Spain growing out of the insurrection +in Cuba. That commission has since been organized. I transmit herewith the +correspondence relating to its formation and its jurisdiction. It is to be +hoped that this commission will afford the claimants a complete remedy for +their injuries. + +It has been made the agreeable duty of the United States to preside over a +conference at Washington between the plenipotentiaries of Spain and the +allied South American Republics, which has resulted in an armistice, with +the reasonable assurance of a permanent peace. + +The intimate friendly relations which have so long existed between the +United States and Russia continue undisturbed. The visit of the third son +of the Emperor is a proof that there is no desire on the part of his +Government to diminish the cordiality of those relations. The hospitable +reception which has been given to the Grand Duke is a proof that on our +side we share the wishes of that Government. The inexcusable course of the +Russian minister at Washington rendered it necessary to ask his recall and +to decline to longer receive that functionary as a diplomatic +representative. It was impossible, with self-respect or with a just regard +to the dignity of the country, to permit Mr. Catacazy to continue to hold +intercourse with this Government after his personal abuse of Government +officials, and during his persistent interferences, through various means, +with the relations between the United States and other powers. In +accordance with my wishes, this Government has been relieved of further +intercourse with Mr. Catacazy, and the management of the affairs of the +imperial legation has passed into the hands of a gentleman entirely +unobjectionable. + +With Japan we continue to maintain intimate relations. The cabinet of the +Mikado has since the close of the last session of Congress selected +citizens of the United States to serve in offices of importance in several +departments of Government. I have reason to think that this selection is +due to an appreciation of the disinterestedness of the policy which the +United States have pursued toward Japan. It is our desire to continue to +maintain this disinterested and just policy with China as well as Japan. +The correspondence transmitted herewith shows that there is no disposition +on the part of this Government to swerve from its established course. + +Prompted by a desire to put an end to the barbarous treatment of our +shipwrecked sailors on the Korean coast, I instructed our minister at +Peking to endeavor to conclude a convention with Korea for securing the +safety and humane treatment of such mariners. + +Admiral Rodgers was instructed to accompany him with a sufficient force to +protect him in case of need. + +A small surveying party sent out, on reaching the coast was treacherously +attacked at a disadvantage. Ample opportunity was given for explanation and +apology for the insult. Neither came. A force was then landed. After an +arduous march over a rugged and difficult country, the forts from which the +outrages had been committed were reduced by a gallant assault and were +destroyed. Having thus punished the criminals, and having vindicated the +honor of the flag, the expedition returned, finding it impracticable under +the circumstances to conclude the desired convention. I respectfully refer +to the correspondence relating thereto, herewith submitted, and leave the +subject for such action as Congress may see fit to take. + +The Republic of Mexico has not yet repealed the very objectionable laws +establishing what is known as the "free zone" on the frontier of the United +States. It is hoped that this may yet be done, and also that more stringent +measures may be taken by that Republic for restraining lawless persons on +its frontiers. I hope that Mexico by its own action will soon relieve this +Government of the difficulties experienced from these causes. + +Our relations with the various Republics of Central and South America +continue, with one exception, to be cordial and friendly. + +I recommend some action by Congress regarding the overdue installments +under the award of the Venezuelan Claims Commission of 1866. The internal +dissensions of this Government present no justification for the absence of +effort to meet their solemn treaty obligations. + +The ratification of an extradition treaty with Nicaragua has been +exchanged. + +It is a subject for congratulation that the great Empire of Brazil has +taken the initiatory step toward the abolition of slavery. Our relations +with that Empire, always cordial, will naturally be made more so by this +act. It is not too much to hope that the Government of Brazil may hereafter +find it for its interest, as well as intrinsically right, to advance toward +entire emancipation more rapidly than the present act contemplates. + +The true prosperity and greatness of a nation is to be found in the +elevation and education of its laborers. + +It is a subject for regret that the reforms in this direction which were +voluntarily promised by the statesmen of Spain have not been carried out in +its West India colonies. The laws and regulations for the apparent +abolition of slavery in Cuba and Porto Rico leave most of the laborers in +bondage, with no hope of release until their lives become a burden to their +employers. + +I desire to direct your attention to the fact that citizens of the United +States, or persons claiming to be citizens of the United States, are large +holders in foreign lands of this species of property, forbidden by the +fundamental law of their alleged country. I recommend to Congress to +provide by stringent legislation a suitable remedy against the holding, +owning or dealing in slaves, or being interested in slave property, in +foreign lands, either as owners, hirers, or mortgagors, by citizens of the +United States. + +It is to be regretted that the disturbed condition of the island of Cuba +continues to be a source of annoyance and of anxiety. The existence of a +protracted struggle in such close proximity to our own territory, without +apparent prospect of an early termination, can not be other than an object +of concern to a people who, while abstaining from interference in the +affairs of other powers, naturally desire to see every country in the +undisturbed enjoyment of peace, liberty, and the blessings of free +institutions. + +Our naval commanders in Cuban waters have been instructed, in case it +should become necessary, to spare no effort to protect the lives and +property of bona fide American citizens and to maintain the dignity of the +flag. + +It is hoped that all pending questions with Spain growing out of the +affairs in Cuba may be adjusted in the spirit of peace and conciliation +which has hitherto guided the two powers in their treatment of such +questions. + +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, I earnestly recommend that an appropriation be made to +support at least four American youths in each of those countries, to serve +as a part of the official family of our ministers there. Our +representatives would not even then be placed upon an equality with the +representatives of Great Britain and of some other powers. As now situated, +our representatives in Japan and China have to depend for interpreters and +translators upon natives of those countries who know our language +imperfectly, or procure for the occasion the services of employees in +foreign business houses or the interpreters to other foreign ministers. + +I would also recommend liberal measures for the purpose of supporting the +American lines of steamers now plying between San Francisco and Japan and +China, and the Australian line--almost our only remaining lines of ocean +steamers--and of increasing their services. + +The national debt has been reduced to the extent of $86,057, 126.80 during +the year, and by the negotiation of national bonds at a lower rate of +interest the interest on the public debt has been so far diminished that +now the sum to be raised for the interest account is nearly $17,000,000 +less than on the 1st of March, 1869. It was highly desirable that this +rapid diminution should take place, both to strengthen the credit of the +country and to convince its citizens of their entire ability to meet every +dollar of liability without bankrupting them. But in view of the +accomplishment of these desirable ends: of the rapid development of the +resources of the country; its increasing ability to meet large demands, and +the amount already paid, it is not desirable that the present resources of +the country should continue to be taxed in order to continue this rapid +payment. I therefore recommend a modification of both the tariff and +internal-tax law. I recommend that all taxes from internal sources be +abolished, except those collected from spirituous, vinous, and malt +liquors, tobacco in its various forms, and from stamps. + +In readjusting the tariff I suggest that a careful estimate be made of the +amount of surplus revenue collected under the present laws, after providing +for the current expenses of the Government, the interest count, and a +sinking fund, and that this surplus be reduced in such a manner as to +afford the greatest relief to the greatest number. There are many articles +not produced at home, but which enter largely into general consumption +through articles which are manufactured at home, such as medicines +compounded, etc., etc., from which very little revenue is derived, but +which enter into general use. All such articles I recommend to be placed on +the "free list." Should a further reduction prove advisable, I would then +recommend that it be made upon those articles which can best bear it +without disturbing home production or reducing the wages of American +labor. + +I have not entered into figures, because to do so would be to repeat what +will be laid before you in the report of the Secretary of the Treasury. The +present laws for collecting revenue pay collectors of customs small +salaries, but provide for moieties (shares in all seizures), which, at +principal ports of entry particularly, raise the compensation of those +officials to a large sum. It has always seemed to me as if this system must +at times work perniciously. It holds out an inducement to dishonest men, +should such get possession of those offices, to be lax in their scrutiny of +goods entered, to enable them finally to make large seizures. Your +attention is respectfully invited to this subject. + +Continued fluctuations in the value of gold, as compared with the national +currency, has a most damaging effect upon the increase and development of +the country, in keeping up prices of all articles necessary in everyday +life. It fosters a spirit of gambling, prejudicial alike to national morals +and the national finances. If the question can be met as to how to get a +fixed value to our currency, that value constantly and uniformly +approaching par with specie, a very desirable object will be gained. + +For the operations of the Army in the past year, the expense of maintaining +it, the estimate for the ensuing year, and for continuing seacoast and +other improvements conducted under the supervision of the War Department, I +refer you to the accompanying report of the Secretary of War. + +I call your attention to the provisions of the act of Congress approved +March 3, 1869, which discontinues promotions in the staff corps of the Army +until provided for by law. I recommend that the number of officers in each +grade in the staff corps be fixed, and that whenever the number in any one +grade falls below the number so fixed, that the vacancy may be filled by +promotion from the grade below. I also recommend that when the office of +chief of a corps becomes vacant the place may be filled by selection from +the corps in which the vacancy exists. + +The report of the Secretary of the Navy shows an improvement in the number +and efficiency of the naval force, without material increase in the expense +of supporting it. This is due to the policy which has been adopted, and is +being extended as fast as our material will admit, of using smaller vessels +as cruisers on the several stations. By this means we have been enabled to +occupy at once a larger extent of cruising grounds, to visit more +frequently the ports where the presence of our flag is desirable, and +generally to discharge more efficiently the appropriate duties of the Navy +in time of peace, without exceeding the number of men or the expenditure +authorized by law. + +During the past year the Navy has, in addition to its regular service, +supplied the men and officers for the vessels of the Coast Survey, and has +completed the surveys authorized by Congress of the isthmuses of Darien and +Tehuantepec, and, under like authority, has sent out an expedition, +completely furnished and equipped, to explore the unknown ocean of the +north. + +The suggestions of the report as to the necessity for increasing and +improving the materiel of the Navy, and the plan recommended for reducing +the personnel of the service to a peace standard, by the gradual abolition +of certain grades of officers, the reduction of others, and the employment +of some in the service of the commercial marine, are well considered and +deserve the thoughtful attention of Congress. + +I also recommend that all promotions in the Navy above the rank of captain +be by selection instead of by seniority. This course will secure in the +higher grades greater efficiency and hold out an incentive to young +officers to improve themselves in the knowledge of their profession. + +The present cost of maintaining the Navy, its cost compared with that of +the preceding year, and the estimates for the ensuing year are contained in +the accompanying report of the Secretary of the Navy. + +The enlarged receipts of the Post-Office Department, as shown by the +accompanying report of the Postmaster-General, exhibit a gratifying +increase in that branch of the public service. It is the index of the +growth of education and of the prosperity of the people, two elements +highly conducive to the vigor and stability of republics. With a vast +territory like ours, much of it sparsely populated, but all requiring the +services of the mail, it is not at present to be expected that this +Department can be made self-sustaining. But a gradual approach to this end +from year to year is confidently relied on, and the day is not far distant +when the Post-Office Department of the Government will prove a much greater +blessing to the whole people than it is now. + +The suggestions of the Postmaster-General for improvements in the +Department presided over by him are earnestly recommended to you, special +attention. Especially do I recommend favorable consideration of the plan +for uniting the telegraphic system of the United States with the postal +system. It is believed that by such a course the cost of telegraphing could +be much reduced, and the service as well, if not better, rendered. It would +secure the further advantage of extending the telegraph through portions of +the country where private enterprise will not construct it. Commerce, +trade, and, above all, the efforts to bring a people widely separated into +a community of interest are always benefited by a rapid intercommunication. +Education, the groundwork of republican institutions, is encouraged by +increasing the facilities to gather speedy news from all parts of the +country. The desire to reap the benefit of such improvements will stimulate +education. I refer you to the report of the Postmaster-General for full +details of the operations of last year and for comparative statements of +results with former years. + +There has been imposed upon the executive branch of the Government the +execution of the act of Congress approved April 20, 1871, and commonly +known as the Kuklux law, in a portion of the State of South Carolina. The +necessity of the course pursued will be demonstrated by the report of the +Committee to Investigate Southern Outrages. Under the provisions of the +above act I issued a proclamation calling the attention of the people of +the United States to the same, and declaring my reluctance to exercise any +of the extraordinary powers thereby conferred upon me, except in case of +imperative necessity, but making known my purpose to exercise such powers +whenever it should become necessary to do so for the purpose of securing to +all citizens of the United States the peaceful enjoyment of the rights +guaranteed to them by the Constitution and the laws. + +After the passage of this law information was received from time to time +that combinations of the character referred to in this law existed and were +powerful in many parts of the Southern States, particularly in certain +counties in the State of South Carolina. + +Careful investigation was made, and it was ascertained that in nine +counties of that State such combinations were active and powerful, +embracing a sufficient portion of the citizens to control the local +authority, and having, among other things, the object of depriving the +emancipated class of the substantial benefits of freedom and of preventing +the free political action of those citizens who did not sympathize with +their own views. Among their operations were frequent scourgings and +occasional assassinations, generally perpetrated at night by disguised +persons, the victims in almost all cases being citizens of different +political sentiments from their own or freed persons who had shown a +disposition to claim equal rights with other citizens. Thousands of +inoffensive and well disposed citizens were the sufferers by this lawless +violence, + +Thereupon, on the 12th of October, 1871, a proclamation was issued, in +terms of the law, calling upon the members of those combinations to +disperse within five days and to deliver to the marshal or military +officers of the United States all arms, ammunition, uniforms, disguises, +and other means and implements used by them for carrying out their unlawful +purposes. + +This warning not having been heeded, on the 17th of October another +proclamation was issued, suspending the privileges of the writ of habeas +corpus in nine counties in that State. + +Direction was given that within the counties so designated persons +supposed, upon creditable information, to be members of such unlawful +combinations should be arrested by the military forces of the United States +and delivered to the marshal, to be dealt with according to law. In two of +said counties, York and Spartanburg, many arrests have been made. At the +last account the number of persons thus arrested was 168. Several hundred, +whose criminality was ascertained to be of an inferior degree, were +released for the present. These have generally made confessions of their +guilt. + +Great caution has been exercised in making these arrests, and, +notwithstanding the large number, it is believed that no innocent person is +now in custody. The prisoners will be held for regular trial in the +judicial tribunals of the United States. + +As soon as it appeared that the authorities of the United States were about +to take vigorous measures to enforce the law, many persons absconded, and +there is good ground for supposing that all of such persons have violated +the law. A full report of what has been done under this law will be +submitted to Congress by the Attorney-General. + +In Utah there still remains a remnant of barbarism, repugnant to +civilization, to decency, and to the laws of the United States. Territorial +officers, however, have been found who are willing to perform their duty in +a spirit of equity and with a due sense of the necessity of sustaining the +majesty of the law. Neither polygamy nor any other violation of existing +statutes will be permitted within the territory of the United States. It is +not with the religion of the self-styled Saints that we are now dealing, +but with their practices. They will be protected in the worship of God +according to the dictates of their consciences, but they will not be +permitted to violate the laws under the cloak of religion. + +It may be advisable for Congress to consider what, in the execution of the +laws against polygamy, is to be the status of plural wives and their +offspring. The propriety of Congress passing an enabling act authorizing +the Territorial legislature of Utah to legitimize all children born prior +to a time fixed in the act might be justified by its humanity to these +innocent children. This is a suggestion only, and not a recommendation. + +The policy pursued toward the Indians has resulted favorably, so far as can +be judged from the limited time during which it has been in operation. +Through the exertions of the various societies of Christians to whom has +been intrusted the execution of the policy, and the board of commissioners +authorized by the law of April 10, 1869, many tribes of Indians have been +induced to settle upon reservations, to cultivate the soil, to perform +productive labor of various kinds, and to partially accept civilization. +They are being cared for in such a way, it is hoped, as to induce those +still pursuing their old habits of life to embrace the only opportunity +which is left them to avoid extermination. + +I recommend liberal appropriations to carry out the Indian peace policy, +not only because it is humane, Christian like, and economical, but because +it is right. + +I recommend to your favorable consideration also the policy of granting a +Territorial government to the Indians in the Indian Territory west of +Arkansas and Missouri and south of Kansas. In doing so every right +guaranteed to the Indian by treaty should be secured. Such a course might +in time be the means of collecting most of the Indians now between the +Missouri and the Pacific and south of the British possessions into one +Territory or one State. The Secretary of the Interior has treated upon this +subject at length, and I commend to you his suggestions. + +I renew my recommendation that the public lands be regarded as a heritage +to our children, to be disposed of only as required for occupation and to +actual settlers. Those already granted have been in great part disposed of +in such a way as to secure access to the balance by the hardy settler who +may wish to avail himself of them, but caution should be exercised even in +attaining so desirable an object. + +Educational interest may well be served by the grant of the proceeds of the +sale of public lands to settlers. I do not wish to be understood as +recommending in the least degree a curtailment of what is being done by the +General Government for the encouragement of education. + +The report of the Secretary of the Interior submitted with this will give +you all the information collected and prepared for publication in regard to +the census taken during the year 1870; the operations of the Bureau of +Education for the year; the Patent Office; the Pension Office; the Land +Office, and the Indian Bureau. + +The report of the Commissioner of Agriculture gives the operations of his +Department for the year. As agriculture is the groundwork of our +prosperity, too much importance can not be attached to the labors of this +Department. It is in the hands of an able head, with able assistants, all +zealously devoted to introducing into the agricultural productions of the +nation all useful products adapted to any of the various climates and soils +of our vast territory, and to giving all useful information as to the +method of cultivation, the plants, cereals, and other products adapted to +particular localities. Quietly but surely the Agricultural Bureau is +working a great national good, and if liberally supported the more widely +its influence will be extended and the less dependent we shall be upon the +products of foreign countries. + +The subject of compensation to the heads of bureaus and officials holding +positions of responsibility, and requiring ability and character to fill +properly, is one to which your attention is invited. But few of the +officials receive a compensation equal to the respectable support of a +family, while their duties are such as to involve millions of interest. In +private life services demand compensation equal to the services rendered; a +wise economy would dictate the same rule in the Government service. + +I have not given the estimates for the support of Government for the +ensuing year, nor the comparative statement between the expenditures for +the year just passed and the one just preceding, because all these figures +are contained in the accompanying reports or in those presented directly to +Congress. These estimates have my approval. + +More than six years having elapsed since the last hostile gun was fired +between the armies then arrayed against each other--one for the +perpetuation, the other for the destruction, of the Union--it may well be +considered whether it is not now time that the disabilities imposed by the +fourteenth amendment should be removed. That amendment does not exclude the +ballot, but only imposes the disability to hold offices upon certain +classes. When the purity of the ballot is secure, majorities are sure to +elect officers reflecting the views of the majority. I do not see the +advantage or propriety of excluding men from office merely because they +were before the rebellion of standing and character sufficient to be +elected to positions requiring them to take oaths to support the +Constitution, and admitting to eligibility those entertaining precisely the +same views, but of less standing in their communities. It may be said that +the former violated an oath, while the latter did not; the latter did not +have it in their power to do so. If they had taken this oath, it can not be +doubted they would have broken it as did the former class. If there are any +great criminals, distinguished above all others for the part they took in +opposition to the Government, they might, in the judgment of Congress, be +excluded from such an amnesty. + +This subject is submitted for your careful consideration. + +The condition of the Southern States is, unhappily, not such as all true +patriotic citizens would like to see. Social ostracism for opinion's sake, +personal violence or threats toward persons entertaining political views +opposed to those entertained by the majority of the old citizens, prevents +immigration and the flow of much-needed capital into the States lately in +rebellion. It will be a happy condition of the country when the old +citizens of these States will take an interest in public affairs, +promulgate ideas honestly entertained, vote for men representing their +views, and tolerate the same freedom of expression and ballot in those +entertaining different political convictions. + +Under the provisions of the act of Congress approved February 21, 1871, a +Territorial government was organized in the District of Columbia. Its +results have thus far fully realized the expectations of its advocates. +Under the direction of the Territorial officers, a system of improvements +has been inaugurated by means of which Washington is rapidly becoming a +city worthy of the nation's capital. The citizens of the District having +voluntarily taxed themselves to a large amount for the purpose of +contributing to the adornment of the seat of Government, I recommend +liberal appropriations on the part of Congress, in order that the +Government may bear its just share of the expense of carrying out a +judicious system of improvements. + +By the great fire in Chicago the most important of the Government buildings +in that city were consumed. Those burned had already become inadequate to +the wants of the Government in that growing city, and, looking to the near +future, were totally inadequate. I recommend, therefore, that an +appropriation be made immediately to purchase the remainder of the square +on which the burned buildings stood, provided it can be purchased at a fair +valuation, or provided that the legislature of Illinois will pass a law +authorizing its condemnation for Government purposes; and also an +appropriation of as much money as can properly be expended toward the +erection of new buildings during this fiscal year. + +The number of immigrants ignorant of our laws, habits, etc., coming into +our country annually has become so great and the impositions practiced upon +them so numerous and flagrant that I suggest Congressional action for their +protection. It seems to me a fair subject of legislation by Congress. I can +not now state as fully as I desire the nature of the complaints made by +immigrants of the treatment they receive, but will endeavor to do so during +the session of Congress, particularly if the subject should receive your +attention. + +It has been the aim of the Administration to enforce honesty and efficiency +in all public offices. Every public servant who has violated the trust +placed in him has been proceeded against with all the rigor of the law. If +bad men have secured places, it has been the fault of the system +established by law and custom for making appointments, or the fault of +those who recommend for Government positions persons not sufficiently well +known to them personally, or who give letters indorsing the characters of +office seekers without a proper sense of the grave responsibility which +such a course devolves upon them. A civil-service reform which can correct +this abuse is much desired. In mercantile pursuits the business man who +gives a letter of recommendation to a friend to enable him to obtain credit +from a stranger is regarded as morally responsible for the integrity of his +friend and his ability to meet his obligations. A reformatory law which +would enforce this principle against all indorsers of persons for public +place would insure great caution in making recommendations. A salutary +lesson has been taught the careless and the dishonest public servant in the +great number of prosecutions and convictions of the last two years. + +It is gratifying to notice the favorable change which is taking place +throughout the country in bringing to punishment those who have proven +recreant to the trusts confided to them and in elevating to public office +none but those who possess the confidence of the honest and the virtuous, +who, it will always be found, comprise the majority of the community in +which they live. + +In my message to Congress one year ago I urgently recommended a reform in +the civil service of the country. In conformity with that recommendation +Congress, in the ninth section of "An act making appropriations for sundry +civil expenses of the Government, and for other purposes," approved March +3, 1871, gave the necessary authority to the Executive to inaugurate a +civil-service reform, and placed upon him the responsibility of doing so. +Under the authority of said act I convened a board of gentlemen eminently +qualified for the work to devise rules and regulations to effect the needed +reform. Their labors are not yet complete, but it is believed that they +will succeed in devising a plan that can be adopted to the great relief of +the Executive, the heads of Departments, and members of Congress, and which +will redound to the true interest of the public service. At all events, the +experiment shall have a fair trial. + +I have thus hastily summed up the operations of the Government during the +last year, and made such suggestions as occur to me to be proper for your +consideration. I submit them with a confidence that your combined action +will be wise, statesmanlike, and in the best interests of the whole +country. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 2, 1872 + +To the Senate and House of Representatives: + +In transmitting to you this my fourth annual message it is with +thankfulness to the Giver of All Good that as a nation we have been blessed +for the past year with peace at home, peace abroad, and a general +prosperity vouchsafed to but few peoples. + +With the exception of the recent devastating fire which swept from the +earth with a breath, as it were, millions of accumulated wealth in the city +of Boston, there has been no overshadowing calamity within the year to +record. It is gratifying to note how, like their fellow-citizens of the +city of Chicago under similar circumstances a year earlier, the citizens of +Boston are rallying under their misfortunes, and the prospect that their +energy and perseverance will overcome all obstacles and show the same +prosperity soon that they would had no disaster befallen them. Otherwise we +have been free from pestilence, war, and calamities, which often overtake +nations; and, as far as human judgment can penetrate the future, no cause +seems to exist to threaten our present peace. + +When Congress adjourned in June last, a question had been raised by Great +Britain, and was then pending, which for a time seriously imperiled the +settlement by friendly arbitration of the grave differences between this +Government and that of Her Britannic Majesty, which by the treaty of +Washington had been referred to the tribunal of arbitration which had met +at Geneva, in Switzerland. + +The arbitrators, however, disposed of the question which had jeoparded the +whole of the treaty and threatened to involve the two nations in most +unhappy relations toward each other in a manner entirely satisfactory to +this Government and in accordance with the views and the policy which it +had maintained. + +The tribunal, which had convened at Geneva in December, concluded its +laborious session on the 14th day of September last, on which day, having +availed itself of the discretionary power given to it by the treaty to +award a sum in gross, it made its decision, whereby it awarded the sum of +$15,500,000 in gold as the indemnity to be paid by Great Britain to the +United States for the satisfaction of all the claims referred to its +consideration. + +This decision happily disposes of a long-standing difference between the +two Governments, and, in connection with another award, made by the German +Emperor under a reference to him by the same treaty, leaves these two +Governments without a shadow upon the friendly relations which it is my +sincere hope may forever remain equally unclouded. + +The report of the agent of the United States appointed to attend the Geneva +tribunal, accompanied by the protocols of the proceedings of the +arbitrators, the arguments of the counsel of both Governments, the award of +the tribunal, and the opinions given by the several arbitrators, is +transmitted herewith. + +I have caused to be communicated to the heads of the three friendly powers +who complied with the joint request made to them under the treaty the +thanks of this Government for the appointment of arbitrators made by them +respectively, and also my thanks to the eminent personages named by them, +and my appreciation of the dignity, patience, impartiality, and great +ability with which they discharged their arduous and high functions. + +Her Majesty's Government has communicated to me the appreciation by Her +Majesty of the ability and indefatigable industry displayed by Mr. Adams, +the arbitrator named on the part of this Government during the protracted +inquiries and discussions of the tribunal. I cordially unite with Her +Majesty in this appreciation. + +It is due to the agent of the United States before the tribunal to record +my high appreciation of the marked ability, unwearied patience, and the +prudence and discretion with which he has conducted the very responsible +and delicate duties committed to him, as it is also due to the learned and +eminent counsel who attended the tribunal on the part of this Government to +express my sense of the talents and wisdom which they brought to bear in +the attainment of the result so happily reached. + +It will be the province of Congress to provide for the distribution among +those who may be entitled to it of their respective shares of the money to +be paid. Although the sum awarded is not payable until a year from the date +of the award, it is deemed advisable that no time be lost in making a +proper examination of the several cases in which indemnification may be +due. I consequently recommend the creation of a board of commissioners for +the purpose. + +By the thirty-fourth article of the treaty of Washington the respective +claims of the United States and of Great Britain in their construction of +the treaty of the 15th of June, 1846, defining the boundary line between +their respective territories, were submitted to the arbitration and award +of His Majesty the Emperor of Germany, to decide which of those claims is +most in accordance with the true interpretation of the treaty of 1846. + +His Majesty the Emperor of Germany, having been pleased to undertake the +arbitration, has the earnest thanks of this Government and of the people of +the United States for the labor, pains, and care which he has devoted to +the consideration of this long-pending difference. I have caused an +expression of my thanks to be communicated to His Majesty. Mr. Bancroft, +the representative of this Government at Berlin, conducted the case and +prepared the statement on the part of the United States with the ability +that his past services justified the public in expecting at his hands. As a +member of the Cabinet at the date of the treaty which has given rise to the +discussion between the two Governments, as the minister to Great Britain +when the construction now pronounced unfounded was first advanced, and as +the agent and representative of the Government to present the case and to +receive the award, he has been associated with the question in all of its +phases, and in every stage has manifested a patriotic zeal and earnestness +in maintenance of the claim of the United States. He is entitled to much +credit for the success which has attended the submission. + +After a patient investigation of the case and of the statements of each +party, His Majesty the Emperor, on the 21st day of October last, signed his +award in writing, decreeing that the claim of the Government of the United +States, that the boundary line between the territories of Her Britannic +Majesty and the United States should be drawn through the Haro Channel, is +most in accordance with the true interpretation of the treaty concluded on +the 15th of June, 1846, between the Governments of Her Britannic Majesty +and of the United States. + +Copies of the "case" presented on behalf of each Government, and of the +"statement in reply" of each, and a translation of the award, are +transmitted herewith. + +This award confirms the United States in their claim to the important +archipelago of islands lying between the continent and Vancouvers Island, +which for more than twenty-six years (ever since the ratification of the +treaty) Great Britain has contested, and leaves us, for the first time in +the history of the United States as a nation, without a question of +disputed boundary between our territory and the possessions of Great +Britain on this continent. + +It is my grateful duty to acknowledge the prompt, spontaneous action of Her +Majesty's Government in giving effect to the award. In anticipation of any +request from this Government, and before the reception in the United States +of the award signed by the Emperor, Her Majesty had given instructions for +the removal of her troops which had been stationed there and for the +cessation of all exercise or claim of jurisdiction, so as to leave the +United States in the exclusive possession of the lately disputed territory. +I am gratified to be able to announce that the orders for the removal of +the troops have been executed, and that the military joint occupation of +San Juan has ceased. The islands are now in the exclusive possession of the +United States. + +It now becomes necessary to complete the survey and determination of that +portion of the boundary line (through the Haro Channel) upon which the +commission which determined the remaining part of the line were unable to +agree. I recommend the appointment of a commission to act jointly with one +which may be named by Her Majesty for that purpose. + +Experience of the difficulties attending the determination of our admitted +line of boundary, after the occupation of the territory and its settlement +by those owing allegiance to the respective Governments, points to the +importance of establishing, by natural objects or other monuments, the +actual line between the territory acquired by purchase from Russia and the +adjoining possessions of Her Britannic Majesty. The region is now so +sparsely occupied that no conflicting interests of individuals or of +jurisdiction are likely to interfere to the delay or embarrassment of the +actual location of the line. If deferred until population shall enter and +occupy the territory, some trivial contest of neighbors may again array the +two Governments in antagonism. I therefore recommend the appointment of a +commission, to act jointly with one that may be appointed on the part of +Great Britain, to determine the line between our Territory of Alaska and +the conterminous possessions of Great Britain. + +In my last annual message I recommended the legislation necessary on the +part of the United States to bring into operation the articles of the +treaty of Washington of May 8, 1871, relating to the fisheries and to other +matters touching the relations of the United States toward the British +North American possessions, to become operative so soon as the proper +legislation should be had on the part of Great Britain and its +possessions. + +That legislation on the part of Great Britain and its possessions had not +then been had, and during the session of Congress a question was raised +which for the time raised a doubt whether any action by Congress in the +direction indicated would become important. This question has since been +disposed of, and I have received notice that the Imperial Parliament and +the legislatures of the provincial governments have passed laws to carry +the provisions of the treaty on the matters referred to into operation. I +therefore recommend your early adoption of the legislation in the same +direction necessary on the part of this Government. + +The joint commission for determining the boundary line between the United +States and the British possessions between the Lake of the Woods and the +Rocky Mountains has organized and entered upon its work. It is desirable +that the force be increased, in order that the completion of the survey and +determination of the line may be the sooner attained. To this end I +recommend that a sufficient appropriation be made. + +With France, our earliest ally; Russia, the constant and steady friend of +the United States; Germany, with whose Government and people we have so +many causes of friendship and so many common sympathies, and the other +powers of Europe, our relations are maintained on the most friendly terms. + +Since my last annual message the exchange has been made of the +ratifications of a treaty with the Austro-Hungarian Empire relating to +naturalization; also of a treaty with the German Empire respecting consuls +and trade-marks; also of a treaty with Sweden and Norway relating to +naturalization; all of which treaties have been duly proclaimed. + +Congress at its last session having made an appropriation to defray the +expense of commissioners on the part of the United States to the +International Statistical Congress at St. Petersburg, the persons appointed +in that character proceeded to their destination and attended the sessions +of the congress. Their report shall in due season be laid before you. This +congress meets at intervals of about three years, and has held its sessions +in several of the countries of Europe. I submit to your consideration the +propriety of extending an invitation to the congress to hold its next +meeting in the United States. The Centennial Celebration to be held in 1876 +would afford an appropriate occasion for such meeting. + +Preparations are making for the international exposition to be held during +the next year in Vienna, on a scale of very great magnitude. The tendency +of these expositions is in the direction of advanced civilization, and of +the elevation of industry and of labor, and of the increase of human +happiness, as well as of greater intercourse and good will between nations. +As this exposition is to be the first which will have been held in eastern +Europe, it is believed that American inventors and manufacturers will be +ready to avail themselves of the opportunity for the presentation of their +productions if encouraged by proper aid and protection. + +At the last session of Congress authority was given for the appointment of +one or more agents to represent this Government at the exposition. The +authority thus given has been exercised, but, in the absence of any +appropriation, there is danger that the important benefits which the +occasion offers will in a large degree be lost to citizens of the United +States. I commend the subject strongly to your consideration, and recommend +that an adequate appropriation be made for the purpose. + +To further aid American exhibitors at the Vienna Exposition, I would +recommend, in addition to an appropriation of money, that the Secretary of +the Navy be authorized to fit up two naval vessels to transport between our +Atlantic cities and Trieste, or the most convenient port to Vienna, and +back, their articles for exhibition. + +Since your last session the President of the Mexican Republic, +distinguished by his high character and by his services to his country, has +died. His temporary successor has now been elected with great unanimity by +the people a proof of confidence on their part in his patriotism and wisdom +which it is believed will be confirmed by the results of his +administration. It is particularly desirable that nothing should be left +undone by the Government of either Republic to strengthen their relations +as neighbors and friends. + +It is much to be regretted that many lawless acts continue to disturb the +quiet of the settlements on the border between our territory and that of +Mexico, and that complaints of wrongs to American citizens in various parts +of the country are made. The revolutionary condition in which the +neighboring Republic has so long been involved has in some degree +contributed to this disturbance. It is to be hoped that with a more settled +rule of order through the Republic, which may be expected from the present +Government, the acts of which just complaint is made will cease. + +The proceedings of the commission under the convention with Mexico of the +4th of July, 1868, on the subject of claims, have, unfortunately, been +checked by an obstacle, for the removal of which measures have been taken +by the two Governments which it is believed will prove successful. + +The commissioners appointed, pursuant to the joint resolution of Congress +of the 7th of May last, to inquire into depredations on the Texan frontier +have diligently made investigations in that quarter. Their report upon the +subject will be communicated to you. Their researches were necessarily +incomplete, partly on account of the limited appropriation made by +Congress. Mexico, on the part of that Government, has appointed a similar +commission to investigate these outrages. It is not announced officially, +but the press of that country states that the fullest investigation is +desired, and that the cooperation of all parties concerned is invited to +secure that end. I therefore recommend that a special appropriation be made +at the earliest day practicable, to enable the commissioners on the part of +the United States to return to their labors without delay. + +It is with regret that I have again to announce a continuance of the +disturbed condition of the island of Cuba. No advance toward the +pacification of the discontented part of the population has been made. +While the insurrection has gained no advantages and exhibits no more of the +elements of power or of the prospects of ultimate success than were +exhibited a year ago, Spain, on the other hand, has not succeeded in its +repression, and the parties stand apparently in the same relative attitude +which they have occupied for a long time past. + +This contest has lasted now for more than four years. Were its scene at a +distance from our neighborhood, we might be indifferent to its result, +although humanity could not be unmoved by many of its incidents wherever +they might occur. It is, however, at our door. + +I can not doubt that the continued maintenance of slavery in Cuba is among +the strongest inducements to the continuance of this strife. A terrible +wrong is the natural cause of a terrible evil. The abolition of slavery and +the introduction of other reforms in the administration of government in +Cuba could not fail to advance the restoration of peace and order. It is +greatly to be hoped that the present liberal Government of Spain will +voluntarily adopt this view. + +The law of emancipation, which was passed more than two years since, has +remained unexecuted in the absence of regulations for its enforcement. It +was but a feeble step toward emancipation, but it was the recognition of +right, and was hailed as such, and exhibited Spain in harmony with +sentiments of humanity and of justice and in sympathy with the other powers +of the Christian and civilized world. + +Within the past few weeks the regulations for carrying out the law of +emancipation have been announced, giving evidence of the sincerity of +intention of the present Government to carry into effect the law of 1870. I +have not failed to urge the consideration of the wisdom, the policy, and +the justice of a more effective system for the abolition of the great evil +which oppresses a race and continues a bloody and destructive contest close +to our border, as well as the expediency and the justice of conceding +reforms of which the propriety is not questioned. + +Deeply impressed with the conviction that the continuance of slavery is one +of the most active causes of the continuance of the unhappy condition in +Cuba, I regret to believe that citizens of the United States, or those +claiming to be such, are large holders in Cuba of what is there claimed as +property, but which is forbidden and denounced by the laws of the United +States. They are thus, in defiance of the spirit of our own laws, +contributing to the continuance of this distressing and sickening contest. +In my last annual message I referred to this subject, and I again recommend +such legislation as may be proper to denounce, and, if not prevent, at +least to discourage American citizens from holding or dealing in slaves. + +It is gratifying to announce that the ratifications of the convention +concluded under the auspices of this Government between Spain on the one +part and the allied Republics of the Pacific on the other, providing for an +armistice, have been exchanged. A copy of the instrument is herewith +submitted. It is hoped that this may be followed by a permanent peace +between the same parties. + +The differences which at one time threatened the maintenance of peace +between Brazil and the Argentine Republic it is hoped are in the way of +satisfactory adjustment. + +With these States, as with the Republics of Central and of South America, +we continue to maintain the most friendly relations. + +It is with regret, however, I announce that the Government of Venezuela has +made no further payments on account of the awards under the convention of +the 25th of April, 1866. That Republic is understood to be now almost, if +not quite, tranquilized. It is hoped, therefore, that it will lose no time +in providing for the unpaid balance of its debt to the United States, +which, having originated in injuries to our citizens by Venezuelan +authorities, and having been acknowledged, pursuant to a treaty, in the +most solemn form known among nations, would seem to deserve a preference +over debts of a different origin and contracted in a different manner. This +subject is again recommended to the attention of Congress for such action +as may be deemed proper. + +Our treaty relations with Japan remain unchanged. An imposing embassy from +that interesting and progressive nation visited this country during the +year that is passing, but, being unprovided with powers for the signing of +a convention in this country, no conclusion in that direction was reached. +It is hoped, however, that the interchange of opinions which took place +during their stay in this country has led to a mutual appreciation of the +interests which may be promoted when the revision of the existing treaty +shall be undertaken. + +In this connection I renew my recommendation of one year ago, that-- + +To give importance to and to add to the efficiency of our diplomatic +relations with Japan and China, and to further aid in retaining the good +opinion of those peoples, and to secure to the United States its share of +the commerce destined to flow between those nations and the balance of the +commercial world, an appropriation be made to support at least four +American youths in each of those countries, to serve as a part of the +official family of our ministers there. Our representatives would not even +then be placed upon an equality with the representatives of Great Britain +and of some other powers. As now situated, our representatives in Japan and +China have to depend for interpreters and translators upon natives of those +countries, who know our language imperfectly, or procure for the occasion +the services of employees in foreign business houses or the interpreters to +other foreign ministers. + +I renew the recommendation made on a previous occasion, of the transfer to +the Department of the Interior, to which they seem more appropriately to +belong, of all the powers and duties in relation to the Territories with +which the Department of State is now charged by law or by custom. + +Congress from the beginning of the Government has wisely made provision for +the relief of distressed seamen in foreign countries. No similar provision, +however, has hitherto been made for the relief of citizens in distress +abroad other than seamen. It is understood to be customary with other +governments to authorize consuls to extend such relief to their citizens or +subjects in certain cases. A similar authority and an appropriation to +carry it into effect are recommended in the case of citizens of the United +States destitute or sick under such circumstances. It is well known that +such citizens resort to foreign countries in great numbers. Though most of +them are able to bear the expenses incident to locomotion, there are some +who, through accident or otherwise, become penniless, and have no friends +at home able to succor them. Persons in this situation must either perish, +cast themselves upon the charity of foreigners, or be relieved at the +private charge of our own officers, who usually, even with the most +benevolent dispositions, have nothing to spare for such purposes. + +Should the authority and appropriation asked for be granted, care will be +taken so to carry the beneficence of Congress into effect that it shall not +be unnecessarily or unworthily bestowed. TREASURY. + +The moneys received and covered into the Treasury during the fiscal year +ended June 30, 1872, were: + +From customs - $216,370,286.77 + +From sales of public lands - 2,575,714.19 + +From internal revenue - 130,642,177.72 + +From tax on national-bank circulation, etc - 6,523,396.39 + +From Pacific railway companies - 749,861.87 + +From customs fines, etc - 1,136,442.34 + +From fees--consular, patent, lands, etc - 2,284,095.92 + +From miscellaneous - 412,254.71 - + +*** + +State of the Union Address +Ulysses S. Grant +December 1, 1873 + +To the Senate and House of Representatives: + +The year that has passed since the submission of my last message to +Congress has, especially during the latter part of it, been an eventful one +to the country. In the midst of great national prosperity a financial +crisis has occurred that has brought low fortunes of gigantic proportions; +political partisanship has almost ceased to exist, especially in the +agricultural regions; and, finally, the capture upon the high seas of a +vessel bearing our flag has for a time threatened the most serious +consequences, and has agitated the public mind from one end of the country +to the other. But this, happily, now is in the course of satisfactory +adjustment, honorable to both nations concerned. + +The relations of the United States, however, with most of the other powers +continue to be friendly and cordial. With France, Germany, Russia, Italy, +and the minor European powers; with Brazil and most of the South American +Republics, and with Japan, nothing has occurred during the year to demand +special notice. The correspondence between the Department of State and +various diplomatic representatives in or from those countries is +transmitted herewith. + +In executing the will of Congress, as expressed in its joint resolution of +the 14th of February last, and in accordance with the provisions of the +resolution, a number of "practical artisans," of "scientific men," and of +"honorary commissioners" were authorized to attend the exposition at Vienna +as commissioners on the part of the United States. It is believed that we +have obtained the object which Congress had in view when it passed the +joint resolution--"in order to enable the people of the United States to +participate in the advantages of the International Exhibition of the +Products of Agriculture, Manufactures, and the Fine Arts to be held at +Vienna." I take pleasure in adding that the American exhibitors have +received a gratifying number of diplomas and of medals. + +During the exposition a conference was held at Vienna for the purpose of +consultation on the systems prevailing in different countries for the +protection of inventions. I authorized a representative from the Patent +Office to be present at Vienna at the time when this conference was to take +place, in order to aid as far as he might in securing any possible +additional protection to American inventors in Europe. The report of this +agent will be laid before Congress. + +It is my pleasant duty to announce to Congress that the Emperor of China, +on attaining his majority, received the diplomatic representatives of the +Western powers in person. An account of these ceremonies and of the +interesting discussions which preceded them will be found in the documents +transmitted herewith. The accompanying papers show that some advance, +although slight, has been made during the past year toward the suppression +of the infamous Chinese cooly trade. I recommend Congress to inquire +whether additional legislation be not needed on this subject. + +The money awarded to the United States by the tribunal of arbitration at +Geneva was paid by Her Majesty's Government a few days in advance of the +time when it would have become payable according to the terms of the +treaty. In compliance with the provisions of the act of March 3, 1873, it +was at once paid into the Treasury, and used to redeem, so far as it might, +the public debt of the United States; and the amount so redeemed was +invested in a 5 per cent registered bond of the United States for +$15,500,000, which is now held by the Secretary of State, subject to the +future disposition of Congress. + +I renew my recommendation, made at the opening of the last session of +Congress, that a commission be created for the purpose of auditing and +determining the amounts of the several "direct losses growing out of the +destruction of vessels and their cargoes" by the Alabama, the Florida, or +the Shenandoah after leaving Melbourne, for which the sufferers have +received no equivalent or compensation, and of ascertaining the names of +the persons entitled to receive compensation for the same, making the +computations upon the basis indicated by the tribunal of arbitration at +Geneva; and that payment of such losses be authorized to an extent not to +exceed the awards of the tribunal at Geneva. + +By an act approved on the 14th day of February last Congress made provision +for completing, jointly with an officer or commissioner to be named by Her +Britannic Majesty, the determination of so much of the boundary line +between the territory of the United States and the possessions of Great +Britain as was left uncompleted by the commissioners appointed under the +act of Congress of August 11, 1856. Under the provisions of this act the +northwest water boundary of the United States has been determined and +marked in accordance with the award of the Emperor of Germany. A protocol +and a copy of the map upon which the line was thus marked are contained in +the papers submitted herewith. + +I also transmit a copy of the report of the commissioner for marking the +northern boundary between the United States and the British possessions +west of the Lake of the Woods, of the operations of the commission during +the past season. Surveys have been made to a point 497 miles west of the +Lake of the Woods, leaving about 350 miles to be surveyed, the field work +of which can be completed during the next season. + +The mixed commission organized under the provisions of the treaty of +Washington for settling and determining the claims of citizens of either +power against the other arising out of acts committed against their persons +or property during the period between April 13, 1861, and April 9, 1865, +made its final award on the 25th day of September last. It was awarded that +the Government of the United States should pay to the Government of Her +Britannic Majesty, within twelve months from the date of the award, the sum +of $1,929,819 in gold. The commission disallowed or dismissed all other +claims of British subjects against the United States. The amount of the +claims presented by the British Government, but disallowed or dismissed, is +understood to be about $93,000,000. It also disallowed all the claims of +citizens of the United States against Great Britain which were referred to +it. + +I recommend the early passage of an act appropriating the amount necessary +to pay this award against the United States. + +I have caused to be communicated to the Government of the King of Italy the +thanks of this Government for the eminent services rendered by Count Corti +as the third commissioner on this commission. With dignity, learning, and +impartiality he discharged duties requiring great labor and constant +patience, to the satisfaction, I believe, of both Governments. I recommend +legislation to create a special court, to consist of three judges, who +shall be empowered to hear and determine all claims of aliens upon the +United States arising out of acts committed against their persons or +property during the insurrection. The recent reference under the treaty of +Washington was confined to claims of British subjects arising during the +period named in the treaty; but it is understood that there are other +British claims of a similar nature, arising after the 9th of April, 1865, +and it is known that other claims of a like nature are advanced by citizens +or subjects of other powers. It is desirable to have these claims also +examined and disposed of. + +Official information being received from the Dutch Government of a state of +war between the King of the Netherlands and the Sultan of Acheen, the +officers of the United States who were near the seat of the war were +instructed to observe an impartial neutrality. It is believed that they +have done so. + +The joint commission under the convention with Mexico of 1868, having again +been legally prolonged, has resumed its business, which, it is hoped, may +be brought to an early conclusion. The distinguished representative of Her +Britannic Majesty at Washington has kindly consented, with the approval of +his Government, to assume the arduous and responsible duties of umpire in +this commission, and to lend the weight of his character and name to such +decisions as may not receive the acquiescence of both the arbitrators +appointed by the respective Governments. + +The commissioners appointed pursuant to the authority of Congress to +examine into the nature and extent of the forays by trespassers from that +country upon the herds of Texas have made a report, which will be submitted +for your consideration. + +The Venezuelan Government has been apprised of the sense of Congress in +regard to the awards of the joint commission under the convention of 25th +April, 1866, as expressed in the act of the 25th of February last. + +It is apprehended that that Government does not realize the character of +its obligations under that convention. As there is reason to believe, +however, that its hesitancy in recognizing them springs, in part at least, +from real difficulty in discharging them in connection with its obligations +to other governments, the expediency of further forbearance on our part is +believed to be worthy of your consideration. + +The Ottoman Government and that of Egypt have latterly shown a disposition +to relieve foreign consuls of the judicial powers which heretofore they +have exercised in the Turkish dominions, by organizing other tribunals. As +Congress, however, has by law provided for the discharge of judicial +functions by consuls of the United States in that quarter under the treaty +of 1830, I have not felt at liberty formally to accept the proposed change +without the assent of Congress, whose decision upon the subject at as early +a period as may be convenient is earnestly requested. + +I transmit herewith, for the consideration and determination of Congress, +an application of the Republic of Santo Domingo to this Government to +exercise a protectorate over that Republic. + +Since the adjournment of Congress the following treaties with foreign +powers have been proclaimed: A naturalization convention with Denmark; a +convention with Mexico for renewing the Claims Commission; a convention of +friendship, commerce, and extradition with the Orange Free State, and a +naturalization convention with Ecuador. + +I renew the recommendation made in my message of December, 1870, that +Congress authorize the Postmaster-General to issue all commissions to +officials appointed through his Department. + +I invite the earnest attention of Congress to the existing laws of the +United States respecting expatriation and the election of nationality by +individuals. Many citizens of the United States reside permanently abroad +with their families. Under the provisions of the act approved February 10, +1855, the children of such persons are to be deemed and taken to be +citizens of the United States, but the rights of citizenship are not to +descend to persons whose fathers never resided in the United States. + +It thus happens that persons who have never resided within the United +States have been enabled to put forward a pretension to the protection of +the United States against the claim to military service of the government +under whose protection they were born and have been reared. In some cases +even naturalized citizens of the United States have returned to the land of +their birth, with intent to remain there, and their children, the issue of +a marriage contracted there after their return, and who have never been in +the United States, have laid claim to our protection when the lapse of many +years had imposed upon them the duty of military service to the only +government which had ever known them personally. + +Until the year 1868 it was left, embarrassed by conflicting opinions of +courts and of jurists, to determine how far the doctrine of perpetual +allegiance derived from our former colonial relations with Great Britain +was applicable to American citizens. Congress then wisely swept these +doubts away by enacting that--Any declaration, instruction, opinion, +order, or decision of any officer of this Government which denies, +restricts, impairs, or questions the right of expatriation is inconsistent +with the fundamental principles of this Government. But Congress did not +indicate in that statute, nor has it since done so, what acts are to be +deemed to work expatriation. For my own guidance in determining such +questions I required (under the provisions of the Constitution) the opinion +in writing of the principal officer in each of the Executive Departments +upon certain questions relating to this subject. The result satisfies me +that further legislation has become necessary. I therefore commend the +subject to the careful consideration of Congress, and I transmit herewith +copies of the several opinions of the principal officers of the Executive +Departments, together with other correspondence and pertinent information +on the same subject. + +The United States, who led the way in the overthrow of the feudal doctrine +of perpetual allegiance, are among the last to indicate how their own +citizens may elect another nationality. The papers submitted herewith +indicate what is necessary to place us on a par with other leading nations +in liberality of legislation on this international question. We have +already in our treaties assented to the principles which would need to be +embodied in laws intended to accomplish such results. We have agreed that +citizens of the United States may cease to be citizens and may voluntarily +render allegiance to other powers. We have agreed that residence in a +foreign land, without intent to return, shall of itself work expatriation. +We have agreed in some instances upon the length of time necessary for such +continued residence to work a presumption of such intent. I invite Congress +now to mark out and define when and how expatriation can be accomplished; +to regulate by law the condition of American women marrying foreigners; to +fix the status of children born in a foreign country of American parents +residing more or less permanently abroad, and to make rules for determining +such other kindred points as may seem best to Congress. + +In compliance with the request of Congress, I transmitted to the American +minister at Madrid, with instructions to present it to the Spanish +Government, the joint resolution approved on the 3d of March last, +tendering to the people of Spain, in the name and on the behalf of the +American people, the congratulations of Congress upon the efforts to +consolidate in Spain the principles of universal liberty in a republican +form of government. + +The existence of this new Republic was inaugurated by striking the fetters +from the slaves in Porto Rico. This beneficent measure was followed by the +release of several thousand persons illegally held as slaves in Cuba. Next, +the Captain-General of that colony was deprived of the power to set aside +the orders of his superiors at Madrid, which had pertained to the office +since 1825. The sequestered estates of American citizens, which had been +the cause of long and fruitless correspondence, were ordered to be restored +to their owners. All these liberal steps were taken in the face of a +violent opposition directed by the reactionary slave-holders of Havana, who +are vainly striving to stay the march of ideas which has terminated slavery +in Christendom, Cuba only excepted. Unhappily, however, this baneful +influence has thus far succeeded in defeating the efforts of all +liberal-minded men in Spain to abolish slavery in Cuba, and in preventing +the promised reform in that island. The struggle for political supremacy +continues there. + +The proslavery and aristocratic party in Cuba is gradually arraigning +itself in more and more open hostility and defiance of the home government, +while it still maintains a political connection with the Republic in the +peninsula; and although usurping and defying the authority of the home +government whenever such usurpation or defiance tends in the direction of +oppression or of the maintenance of abuses, it is still a power in Madrid, +and is recognized by the Government. Thus an element more dangerous to +continued colonial relations between Cuba and Spain than that which +inspired the insurrection at Yara--an element opposed to granting any +relief from misrule and abuse, with no aspirations after freedom, +commanding no sympathies in generous breasts, aiming to rivet still +stronger the shackles of slavery and oppression--has seized many of the +emblems of power in Cuba, and, under professions of loyalty to the mother +country, is exhausting the resources of the island, and is doing acts which +are at variance with those principles of justice, of liberality, and of +right which give nobility of character to a republic. In the interests of +humanity, of civilization, and of progress, it is to be hoped that this +evil influence may be soon averted. + +The steamer Virginius was on the 26th day of September, 1870, duly +registered at the port of New York as a part of the commercial marine of +the United States. On the 4th of October, 1870, having received the +certificate of her register in the usual legal form, she sailed from the +port of New York and has not since been within the territorial jurisdiction +of the United States. On the 31st day of October last, while sailing under +the flag of the United States on the high seas, she was forcibly seized by +the Spanish gunboat Tornado, and was carried into the port of Santiago de +Cuba, where fifty-three of her passengers and crew were inhumanly, and, so +far at least as relates to those who were citizens of the United States, +without due process of law, put to death. + +It is a well-established principle, asserted by the United States from the +beginning of their national independence, recognized by Great Britain and +other maritime powers, and stated by the Senate in a resolution passed +unanimously on the 16th of June, 1858, that--American vessels on the high +seas in time of peace, bearing the American flag, remain under the +jurisdiction of the country to which they belong, and therefore any +visitation, molestation, or detention of such vessel by force, or by the +exhibition of force, on the part of a foreign power is in derogation of the +sovereignty of the United States. In accordance with this principle, the +restoration of the Virginius and the surrender of the survivors of her +passengers and crew, and a due reparation to the flag, and the punishment +of the authorities who had been guilty of the illegal acts of violence, +were demanded. The Spanish Government has recognized the justice of the +demand, and has arranged for the immediate delivery of the vessel, and for +the surrender of the survivors of the passengers and crew, and for a salute +to the flag, and for proceedings looking to the punishment of those who may +be proved to have been guilty of illegal acts of violence toward citizens +of the United States, and also toward indemnifying those who may be shown +to be entitled to indemnity. A copy of a protocol of a conference between +the Secretary of State and the Spanish minister, in which the terms of this +arrangement were agreed to, is transmitted herewith. + +The correspondence on this subject with the legation of the United States +in Madrid was conducted in cipher and by cable, and needs the verification +of the actual text of the correspondence. It has seemed to me to be due to +the importance of the case not to submit this correspondence until the +accurate text can be received by mail. It is expected shortly, and will be +submitted when received. + +In taking leave of this subject for the present I wish to renew the +expression of my conviction that the existence of African slavery in Cuba +is a principal cause of the lamentable condition of the island. I do not +doubt that Congress shares with me the hope that it will soon be made to +disappear, and that peace and prosperity may follow its abolition. + +The embargoing of American estates in Cuba, cruelty to American citizens +detected in no act of hostility to the Spanish Government, the murdering of +prisoners taken with arms in their hands, and, finally, the capture upon +the high seas of a vessel sailing under the United States flag and bearing +a United States registry have culminated in an outburst of indignation that +has seemed for a time to threaten war. Pending negotiations between the +United States and the Government of Spain on the subject of this capture, I +have authorized the Secretary of the Navy to put our Navy on a war footing, +to the extent, at least, of the entire annual appropriation for that branch +of the service, trusting to Congress and the public opinion of the American +people to justify my action. + +Assuming from the action of the last Congress in appointing a Committee on +Privileges and Elections to prepare and report to this Congress a +constitutional amendment to provide a better method of electing the +President and Vice-President of the United States, and also from the +necessity of such an amendment, that there will be submitted to the State +legislatures for ratification such an improvement in our Constitution, I +suggest two others for your consideration: + +First. To authorize the Executive to approve of so much of any measure +passing the two Houses of Congress as his judgment may dictate, without +approving the whole, the disapproved portion or portions to be subjected to +the same rules as now, to wit, to be referred back to the House in which +the measure or measures originated, and, if passed by a two-thirds vote of +the two Houses, then to become a law without the approval of the President. +I would add to this a provision that there should be no legislation by +Congress during the last twenty-four hours of its sitting, except upon +vetoes, in order to give the Executive an opportunity to examine and +approve or disapprove bills understandingly. + +Second. To provide by amendment that when an extra session of Congress is +convened by Executive proclamation legislation during the continuance of +such extra session shall be confined to such subjects as the Executive may +bring before it from time to time in writing. + +The advantages to be gained by these two amendments are too obvious for me +to comment upon them. One session in each year is provided for by the +Constitution, in which there are no restrictions as to the subjects of +legislation by Congress. If more are required, it is always in the power of +Congress, during their term of office, to provide for sessions at any time. +The first of these amendments would protect the public against the many +abuses and waste of public moneys which creep into appropriation bills and +other important measures passing during the expiring hours of Congress, to +which otherwise due consideration can not be given. + +TREASURY DEPARTMENT. + +The receipts of the Government from all sources for the last fiscal year +were $333,738,204, and expenditures on all accounts $290,345,245, thus +showing an excess of receipts over expenditures of $43,392,959. But it is +not probable that this favorable exhibit will be shown for the present +fiscal year. Indeed, it is very doubtful whether, except with great economy +on the part of Congress in making appropriations and the same economy in +administering the various Departments of Government, the revenues will not +fall short of meeting actual expenses, including interest on the public +debt. + +I commend to Congress such economy, and point out two sources where It +seems to me it might commence, to wit, in the appropriations for public +buildings in the many cities where work has not yet been commenced; in the +appropriations for river and harbor improvement in those localities where +the improvements are of but little benefit to general commerce, and for +fortifications. + +There is a still more fruitful source of expenditure, which I will point +out later in this message. I refer to the easy method of manufacturing +claims for losses incurred in suppressing the late rebellion. + +I would not be understood here as opposing the erection of good, +substantial, and even ornamental buildings by the Government wherever such +buildings are needed. In fact, I approve of the Government owning its own +buildings in all sections of the country, and hope the day is not far +distant when it will not only possess them, but will erect in the capital +suitable residences for all persons who now receive commutation for +quarters or rent at Government expense, and for the Cabinet, thus setting +an example to the States which may induce them to erect buildings for their +Senators. But I would have this work conducted at a time when the revenues +of the country would abundantly justify it. + +The revenues have materially fallen off for the first five months of the +present fiscal year from what they were expected to produce, owing to the +general panic now prevailing, which commenced about the middle of September +last. The full effect of this disaster, if it should not prove a "blessing +in disguise," is yet to be demonstrated. In either event it is your duty to +heed the lesson and to provide by wise and well-considered legislation, as +far as it lies in your power, against its recurrence, and to take advantage +of all benefits that may have accrued. + +My own judgment is that, however much individuals may have suffered, one +long step has been taken toward specie payments; that we can never have +permanent prosperity until a specie basis is reached: and that a specie +basis can not be reached and maintained until our exports, exclusive of +gold, pay for our imports, interest due abroad, and other specie +obligations, or so nearly so as to leave an appreciable accumulation of the +precious metals in the country from the products of our mines. + +The development of the mines of precious metals during the past year and +the prospective development of them for years to come are gratifying in +their results. Could but one-half of the gold extracted from the mines be +retained at home, our advance toward specie payments would be rapid. + +To increase our exports sufficient currency is required to keep all the +industries of the country employed. Without this national as well as +individual bankruptcy must ensue. Undue inflation, on the other hand, while +it might give temporary relief, would only lead to inflation of prices, the +impossibility of competing in our own markets for the products of home +skill and labor, and repeated renewals of present experiences. Elasticity +to our circulating medium, therefore, and just enough of it to transact the +legitimate business of the country and to keep all industries employed, is +what is most to be desired. The exact medium is specie, the recognized +medium of exchange the world over. That obtained, we shall have a currency +of an exact degree of elasticity. If there be too much of it for the +legitimate purposes of trade and commerce, it will flow out of the country. +If too little, the reverse will result. To hold what we have and to +appreciate our currency to that standard is the problem deserving of the +most serious consideration of Congress. + +The experience of the present panic has proven that the currency of the +country, based, as it is, upon the credit of the country, is the best that +has ever been devised. Usually in times of such trials currency has become +worthless, or so much depreciated in value as to inflate the values of all +the necessaries of life as compared with the currency. Everyone holding it +has been anxious to dispose of it on any terms. Now we witness the reverse. +Holders of currency hoard it as they did gold in former experiences of a +like nature. + +It is patent to the most casual observer that much more currency, or money, +is required to transact the legitimate trade of the country during the fall +and winter months, when the vast crops are being removed, than during the +balance of the year. With our present system the amount in the country +remains the same throughout the entire year, resulting in an accumulation +of all the surplus capital of the country in a few centers when not +employed in the moving of crops, tempted there by the offer of interest on +call loans. Interest being paid, this surplus capital must earn this +interest paid with a profit. Being subject to "call," it can not be loaned, +only in part at best, to the merchant or manufacturer for a fixed term. +Hence, no matter how much currency there might be in the country, it would +be absorbed, prices keeping pace with the volume, and panics, stringency, +and disasters would ever be recurring with the autumn. Elasticity in our +monetary system, therefore, is the object to be attained first, and next to +that, as far as possible, a prevention of the use of other people's money +in stock and other species of speculation. To prevent the latter it seems +to me that one great step would be taken by prohibiting the national banks +from paying interest on deposits, by requiring them to hold their reserves +in their own vaults, and by forcing them into resumption, though it would +only be in legal-tender notes. For this purpose I would suggest the +establishment of clearing houses for your consideration. + +To secure the former many plans have been suggested, most, if not all, of +which look to me more like inflation on the one hand, or compelling the +Government, on the other, to pay interest, without corresponding benefits, +upon the surplus funds of the country during the seasons when otherwise +unemployed. + +I submit for your consideration whether this difficulty might not be +overcome by authorizing the Secretary of the Treasury to issue at any time +to national banks of issue any amount of their own notes below a fixed +percentage of their issue (say 40 per cent), upon the banks' depositing +with the Treasurer of the United States an amount of Government bonds equal +to the amount of notes demanded, the banks to forfeit to the Government, +say, 4 per cent of the interest accruing on the bonds so pledged during the +time they remain with the Treasurer as security for the increased +circulation, the bonds so pledged to be redeemable by the banks at their +pleasure, either in whole or in part, by returning their own bills for +cancellation to an amount equal to the face of the bonds withdrawn. I would +further suggest for your consideration the propriety of authorizing +national banks to diminish their standing issue at pleasure, by returning +for cancellation their own bills and withdrawing so many United States +bonds as are pledged for the bills returned. + +In view of the great actual contraction that has taken place in the +currency and the comparative contraction continuously going on, due to the +increase of population, increase of manufactories and all the industries, I +do not believe there is too much of it now for the dullest period of the +year. Indeed, if clearing houses should be established, thus forcing +redemption, it is a question for your consideration whether banking should +not be made free, retaining all the safeguards now required to secure bill +holders. In any modification of the present laws regulating national banks, +as a further step toward preparing for resumption of specie payments, I +invite your attention to a consideration of the propriety of exacting from +them the retention as a part of their reserve either the whole or a part of +the gold interest accruing upon the bonds pledged as security for their +issue. I have not reflected enough on the bearing this might have in +producing a scarcity of coin with which to pay duties on imports to give it +my positive recommendation. But your attention is invited to the subject. + +During the last four years the currency has been contracted, directly, by +the withdrawal of 3 per cent certificates, compound-interest notes, and +"seven-thirty" bonds outstanding on the 4th of March, 1869, all of which +took the place of legal-tenders in the bank reserves to the extent of +$63,000,000. + +During the same period there has been a much larger comparative contraction +of the currency. The population of the country has largely increased. More +than 25,000 miles of railroad have been built, requiring the active use of +capital to operate them. Millions of acres of land have been opened to +cultivation, requiring capital to move the products. Manufactories have +multiplied beyond all precedent in the same period of time, requiring +capital weekly for the payment of wages and for the purchase of material; +and probably the largest of all comparative contraction arises from the +organizing of free labor in the South. Now every laborer there receives his +wages, and, for want of savings banks, the greater part of such wages is +carried in the pocket or hoarded until required for use. + +These suggestions are thrown out for your consideration, without any +recommendation that they shall be adopted literally, but hoping that the +best method may be arrived at to secure such an elasticity of the currency +as will keep employed all the industries of the country and prevent such an +inflation as will put off indefinitely the resumption of specie payments, +an object so devoutly to be wished for by all, and by none more earnestly +than the class of people most directly interested--those who "earn their +bread by the sweat of their brow." The decisions of Congress on this +subject will have the hearty support of the Executive. + +In previous messages I have called attention to the decline in American +shipbuilding and recommended such legislation as would secure to us our +proportion of the carrying trade. Stimulated by high rates and abundance of +freight, the progress for the last year in shipbuilding has been very +satisfactory. There has been an increase of about 3 per cent in the amount +transported in American vessels over the amount of last year. With the +reduced cost of material which has taken place, it may reasonably be hoped +that this progress will be maintained, and even increased. However, as we +pay about $80,000,000 per annum to foreign vessels for the transportation +to a market of our surplus products, thus increasing the balance of trade +against us to this amount, the subject is one worthy of your serious +consideration. + +"Cheap transportation" is a subject that has attracted the attention of +both producers and consumers for the past few years, and has contributed +to, if it has not been the direct cause of, the recent panic and +stringency. + +As Congress, at its last session, appointed a special committee to +investigate this whole subject during the vacation and report at this +session, I have nothing to recommend until their report is read. + +There is one work, however, of a national character, in which the greater +portion of the East and the West, the North and the South, are equally +interested, to which I will invite your attention. + +The State of New York has a canal connecting Lake Erie with tide water on +the Hudson River. The State of Illinois has a similar work connecting Lake +Michigan with navigable water on the Illinois River, thus making water +communication inland between the East and the West and South. These great +artificial water courses are the property of the States through which they +pass, and pay toll to those States. Would it not be wise statesmanship to +pledge these States that if they will open these canals for the passage of +large vessels the General Government will look after and keep in navigable +condition the great public highways with which they connect, to wit, the +Overslaugh on the Hudson, the St. Clair Flats, and the Illinois and +Mississippi rivers? This would be a national work; one of great value to +the producers of the West and South in giving them cheap transportation for +their produce to the seaboard and a market, and to the consumers in the +East in giving them cheaper food, particularly of those articles of food +which do not find a foreign market, and the prices of which, therefore, are +not regulated by foreign demands. The advantages of such a work are too +obvious for argument. I submit the subject to you, therefore, without +further comment. + +In attempting to regain our lost commerce and carrying trade I have +heretofore called attention to the States south of us offering a field +where much might be accomplished. To further this object I suggest that a +small appropriation be made, accompanied with authority for the Secretary +of the Navy to fit out a naval vessel to ascend the Amazon River to the +mouth of the Madeira; thence to explore that river and its tributaries into +Bolivia, and to report to Congress at its next session, or as soon as +practicable, the accessibility of the country by water, its resources, and +the population so reached. Such an exploration would cost but little; it +can do no harm, and may result in establishing a trade of value to both +nations. + +In further connection with the Treasury Department I would recommend a +revision and codification of the tariff laws and the opening of more mints +for coining money, with authority to coin for such nations as may apply. + +WAR DEPARTMENT. + +The attention of Congress is invited to the recommendations contained in +the report of the Secretary of War herewith accompanying. + +The apparent great cost of supporting the Army is fully explained by this +report, and I hope will receive your attention. + +While inviting your general attention to all the recommendations made by +the Secretary of War, there are two which I would especially invite you to +consider: First, the importance of preparing for war in time of peace by +providing proper armament for our seacoast defenses. Proper armament is of +vastly more importance than fortifications. The latter can be supplied very +speedily for temporary purposes when needed; the former can not. The second +is the necessity of reopening promotion in the staff corps of the Army. +Particularly is this necessity felt in the Medical, Pay, and Ordnance +departments. + +At this time it is necessary to employ "contract surgeons" to supply the +necessary medical attendance required by the Army. + +With the present force of the Pay Department it is now difficult to make +the payments to troops provided for by law. Long delays in payments are +productive of desertions and other demoralization, and the law prohibits +the payment of troops by other than regular army paymasters. + +There are now sixteen vacancies in the Ordnance Department, thus leaving +that branch of the service without sufficient officers to conduct the +business of the different arsenals on a large scale if ever required. + +NAVY DEPARTMENT. + +During the past year our Navy has been depleted by the sale of some vessels +no longer fit for naval service and by the condemnation of others not yet +disposed of. This, however, has been more than compensated for by the +repair of six of the old wooden ships and by the building of eight new +sloops of war, authorized by the last Congress. The building of these +latter has occurred at a doubly fortunate time. They are about being +completed at a time when they may possibly be much needed, and the work +upon them has not only given direct employment to thousands of men, but has +no doubt been the means of keeping open establishments for other work at a +time of great financial distress. + +Since the commencement of the last month, however, the distressing +occurrences which have taken place in the waters of the Caribbean Sea, +almost on our very seaboard, while they illustrate most forcibly the +necessity always existing that a nation situated like ours should maintain +in a state of possible efficiency a navy adequate to its responsibilities, +has at the same time demanded that all the effective force we really have +shall be put in immediate readiness for warlike service. This has been and +is being done promptly and effectively, and I am assured that all the +available ships and every authorized man of the American Navy will be ready +for whatever action is required for the safety of our citizens or the +maintenance of our honor. This, of course, will require the expenditure in +a short time of some of the appropriations which were calculated to extend +through the fiscal year, but Congress will, I doubt not, understand and +appreciate the emergency, and will provide adequately not only for the +present preparation, but for the future maintenance of our naval force. The +Secretary of the Navy has during the past year been quietly putting some of +our most effective monitors in condition for service, and thus the exigency +finds us in a much better condition for work than we could possibly have +been without his action. + +POST-OFFICE DEPARTMENT. + +A complete exhibit is presented in the accompanying report of the +postmaster-General of the operations of the Post-Office Department during +the year. The ordinary postal revenues for the fiscal year ended June 30, +1873, amounted to $22,996,741.57, and the expenditures of all kinds to +$29,084,945.67. The increase of revenues over 1872 was $1,081,315.20, and +the increase of expenditures $2,426,753.36. + +Independent of the payments made from special appropriations for mail +steamship lines, the amount drawn from the General Treasury to meet +deficiencies was $5,265,475. The constant and rapid extension of our postal +service, particularly upon railways, and the improved facilities for the +collection, transmission, distribution, and delivery of the mails which are +constantly being provided account for the increased expenditures of this +popular branch of the public service. + +The total number of post-offices in operation on June 30, 1873, was 33,244, +a net increase of 1,381 over the number reported the preceding year. The +number of Presidential offices was 1,363, an increase of 163 during the +year. The total length of railroad mail routes at the close of the year was +63,457 miles, an increase of 5,546 miles over the year 1872. Fifty-nine +railway post-office lines were in operation June 30, 1873, extending over +14,866 miles of railroad routes and performing an aggregate service of +34,925 miles daily. + +The number of letters exchanged with foreign countries was 27,459,185, an +increase of 3,096,685 over the previous year, and the postage thereon +amounted to $2,021,310.86. The total weight of correspondence exchanged in +the mails with European countries exceeded 912 tons, an increase of 92 tons +over the previous year. The total cost of the United States ocean steamship +service, including $725,000 paid from special appropriations to subsidized +lines of mail steamers, was $1,047,271.35. + +New or additional postal conventions have been concluded with Sweden, +Norway, Belgium, Germany, Canada, Newfoundland, and Japan, reducing postage +rates on correspondence exchanged with those countries; and further efforts +have been made to conclude a satisfactory postal convention with France, +but without success. + +I invite the favorable consideration of Congress to the suggestions and +recommendations of the Postmaster-General for an extension of the +free-delivery system in all cities having a population of not less than +10,000; for the prepayment of postage on newspapers and other printed +matter of the second class; for a uniform postage and limit of weight on +miscellaneous matter; for adjusting the compensation of all postmasters not +appointed by the President, by the old method of commissions on the actual +receipts of the office, instead of the present mode of fixing the salary in +advance upon special returns; and especially do I urge favorable action by +Congress on the important recommendations of the Postmaster-General for the +establishment of United States postal savings depositories. + +Your attention is also again called to a consideration of the question of +postal telegraphs and the arguments adduced in support thereof, in the hope +that you may take such action in connection therewith as in your judgment +will most contribute to the best interests of the country. + +DEPARTMENT OF JUSTICE. + +Affairs in Utah require your early and special attention. The Supreme Court +of the United States, in the case of Clinton vs. Englebrecht, decided that +the United States marshal of that Territory could not lawfully summon +jurors for the district courts; and those courts hold that the Territorial +marshal can not lawfully perform that duty, because he is elected by the +legislative assembly, and not appointed as provided for in the act +organizing the Territory. All proceedings at law are practically abolished +by these decisions, and there have been but few or no jury trials in the +district courts of that Territory since the last session of Congress. +Property is left without protection by the courts, and crimes go +unpunished. To prevent anarchy there it is absolutely necessary that +Congress provide the courts with some mode of obtaining jurors, and I +recommend legislation to that end, and also that the probate courts of the +Territory, now assuming to issue writs of injunction and habeas corpus and +to try criminal cases and questions as to land titles, be denied all +jurisdiction not possessed ordinarily by courts of that description. + +I have become impressed with the belief that the act approved March 2, +1867, entitled "An act to establish a uniform system of bankruptcy +throughout the United States," is productive of more evil than good at this +time. Many considerations might be urged for its total repeal, but, if this +is not considered advisable, I think it will not be seriously questioned +that those portions of said act providing for what is called involuntary +bankruptcy operate to increase the financial embarrassments of the country. +Careful and prudent men very often become involved in debt in the +transaction of their business, and though they may possess ample property, +if it could be made available for that purpose, to meet all their +liabilities, yet, on account of the extraordinary scarcity of money, they +may be unable to meet all their pecuniary obligations as they become due, +in consequence of which they are liable to be prostrated in their business +by proceedings in bankruptcy at the instance of unrelenting creditors. +People are now so easily alarmed as to monetary matters that the mere +filing of a petition in bankruptcy by an unfriendly creditor will +necessarily embarrass, and oftentimes accomplish the financial ruin, of a +responsible business man. Those who otherwise might make lawful and just +arrangements to relieve themselves from difficulties produced by the +present stringency in money are prevented by their constant exposure to +attack and disappointment by proceedings against them in bankruptcy, and, +besides, the law is made use of in many cases by obdurate creditors to +frighten or force debtors into a compliance with their wishes and into acts +of injustice to other creditors and to themselves. I recommend that so much +of said act as provides for involuntary bankruptcy on account of the +suspension of payment be repealed. + +Your careful attention is invited to the subject of claims against the +Government and to the facilities afforded by existing laws for their +prosecution. Each of the Departments of State, Treasury, and War has +demands for many millions of dollars upon its files, and they are rapidly +accumulating. To these may be added those now pending before Congress, the +Court of Claims, and the Southern Claims Commission, making in the +aggregate an immense sum. Most of these grow out of the rebellion, and are +intended to indemnify persons on both sides for their losses during the +war; and not a few of them are fabricated and supported by false testimony. +Projects are on foot, it is believed, to induce Congress to provide for new +classes of claims, and to revive old ones through the repeal or +modification of the statute of limitations, by which they are now barred. I +presume these schemes, if proposed, will be received with little favor by +Congress, and I recommend that persons having claims against the United +States cognizable by any tribunal or Department thereof be required to +present them at an early day, and that legislation be directed as far as +practicable to the defeat of unfounded and unjust demands upon the +Government; and I would suggest, as a means of preventing fraud, that +witnesses be called upon to appear in person to testify before those +tribunals having said claims before them for adjudication. Probably the +largest saving to the National Treasury can be secured by timely +legislation on these subjects of any of the economic measures that will be +proposed. + +You will be advised of the operations of the Department of Justice by the +report of the Attorney-General, and I invite your attention to the +amendments of existing laws suggested by him, with the view of reducing the +expenses of that Department. + +DEPARTMENT OF THE INTERIOR. + +The policy inaugurated toward the Indians at the beginning of the last +Administration has been steadily pursued, and, I believe, with beneficial +results. It will be continued with only such modifications as time and +experience may demonstrate as necessary. + +With the encroachment of civilization upon the Indian reservations and +hunting grounds, disturbances have taken place between the Indians and +whites during the past year, and probably will continue to do so until each +race appreciates that the other has rights which must be respected. + +The policy has been to collect the Indians as rapidly as possible on +reservations, and as far as practicable within what is known as the Indian +Territory, and to teach them the arts of civilization and self-support. +Where found off their reservations, and endangering the peace and safety of +the whites, they have been punished, and will continue to be for like +offenses. + +The Indian Territory south of Kansas and west of Arkansas is sufficient in +area and agricultural resources to support all the Indians east of the +Rocky Mountains. In time, no doubt, all of them, except a few who may elect +to make their homes among white people, will be collected there. As a +preparatory step for this consummation, I am now satisfied that a +Territorial form of government should be given them, which will secure the +treaty rights of the original settlers and protect their homesteads from +alienation for a period of twenty years. + +The operations of the Patent Office are growing to such a magnitude and the +accumulation of material is becoming so great that the necessity of more +room is becoming more obvious day by day. I respectfully invite your +attention to the reports of the Secretary of the Interior and Commissioner +of Patents on this subject. + +The business of the General Land Office exhibits a material increase in all +its branches during the last fiscal year. During that time there were +disposed of out of the public lands 13,030,606 acres, being an amount +greater by 1,165,631 acres than was disposed of during the preceding year. +Of the amount disposed of, 1,626,266 acres were sold for cash, 214,940 +acres were located with military land warrants, 3,793,612 acres were taken +for homesteads, 653,446 acres were located with agricultural-college scrip, +6,083,536 acres were certified by railroads, 76,576 acres were granted to +wagon roads, 238,548 acres were approved to States as swamp lands, 138,681 +acres were certified for agricultural colleges, common schools, +universities, and seminaries, 190,775 acres were approved to States for +internal improvements, and 14,222 acres were located with Indian scrip. The +cash receipts during the same time were $3,408,515.50, being $190,415.50 in +excess of the receipts of the previous year. During the year 30,488,132 +acres of public land were surveyed, an increase over the amount surveyed +the previous year of 1,037,193 acres, and, added to the area previously +surveyed, aggregates 616,554,895 acres which have been surveyed, leaving +1,218,443,505 acres of the public land still unsurveyed. + +The increased and steadily increasing facilities for reaching our +unoccupied public domain and for the transportation of surplus products +enlarge the available field for desirable homestead locations, thus +stimulating settlement and extending year by year in a gradually increasing +ratio the area of occupation and cultivation. + +The expressed desire of the representatives of a large colony of citizens +of Russia to emigrate to this country, as is understood, with the consent +of their Government, if certain concessions can be made to enable them to +settle in a compact colony, is of great interest, as going to show the +light in which our institutions are regarded by an industrious, +intelligent, and wealthy people, desirous of enjoying civil and religious +liberty; and the acquisition of so large an immigration of citizens of a +superior class would without doubt be of substantial benefit to the +country. I invite attention to the suggestion of the Secretary of the +Interior in this behalf. + +There was paid during the last fiscal year for pensions, including the +expense of disbursement, $29,185,289.62, being an amount less by +$984,050.98 than was expended for the same purpose the preceding year. +Although this statement of expenditures would indicate a material reduction +in amount compared with the preceding year, it is believed that the changes +in the pension laws at the last session of Congress will absorb that amount +the current year. At the close of the last fiscal year there were on the +pension rolls 99,804 invalid military pensioners and 112,088 widows, +orphans, and dependent relatives of deceased soldiers, making a total of +that class of 211,892; 18,266 survivors of the War of 1812 and 5,058 widows +of soldiers of that war pensioned under the act of Congress of February 14, +1871, making a total of that class of 23,319; 1,480 invalid navy pensioners +and 1,770 widows, orphans, and dependent relatives of deceased officers, +sailors, and marines of the Navy, making a total of navy pensioners of +3,200, and a grand total of pensioners of 311 classes of 238,411, showing a +net increase during the last fiscal year of 6,182. During the last year the +names of 16,405 pensioners were added to the rolls, and 10,223 names were +dropped therefrom for various causes. + +The system adopted for the detection of frauds against the Government in +the matter of pensions has been productive of satisfactory results, but +legislation is needed to provide, if possible, against the perpetration of +such frauds in future. + +The evidently increasing interest in the cause of education is a most +encouraging feature in the general progress and prosperity of the country, +and the Bureau of Education is earnest in its efforts to give proper +direction to the new appliances and increased facilities which are being +offered to aid the educators of the country in their great work. + +The Ninth Census has been completed, the report thereof published and +distributed, and the working force of the Bureau disbanded. The Secretary +of the Interior renews his recommendation for a census to be taken in 1875, +to which subject the attention of Congress is invited. The original +suggestion in that behalf has met with the general approval of the country; +and even if it be not deemed advisable at present to provide for a regular +quinquennial census, a census taken in 1875, the report of which could be +completed and published before the one hundredth anniversary of our +national independence, would be especially interesting and valuable, as +showing the progress of the country during the first century of our +national existence. It is believed, however, that a regular census every +five years would be of substantial benefit to the country, inasmuch as our +growth hitherto has been so rapid that the results of the decennial census +are necessarily unreliable as a basis of estimates for the latter years of +a decennial period. + +DISTRICT OF COLUMBIA. + +Under the very efficient management of the governor and the board of public +works of this District the city of Washington is rapidly assuming the +appearance of a capital of which the nation may well be proud. From being a +most unsightly place three years ago, disagreeable to pass through in +summer in consequence of the dust arising from unpaved streets, and almost +impassable in the winter from the mud, it is now one of the most sightly +cities in the country, and can boast of being the best paved. + +The work has been done systematically, the plans, grades, location of +sewers, water and gas mains being determined upon before the work was +commenced, thus securing permanency when completed. I question whether so +much has ever been accomplished before in any American city for the same +expenditures. The Government having large reservations in the city, and the +nation at large having an interest in their capital, I recommend a liberal +policy toward the District of Columbia, and that the Government should bear +its just share of the expense of these improvements. Every citizen visiting +the capital feels a pride in its growing beauty, and that he too is part +owner in the investments made here. + +I would suggest to Congress the propriety of promoting the establishment in +this District of an institution of learning, or university of the highest +class, by the donation of lands. There is no place better suited for such +an institution than the national capital. There is no other place in which +every citizen is so directly interested. + +CIVIL-SERVICE REFORM. + +In three successive messages to Congress I have called attention to the +subject of "civil-service reform." + +Action has been taken so far as to authorize the appointment of a board to +devise rules governing methods of making appointments and promotions, but +there never has been any action making these rules, or any rules, binding, +or even entitled to observance, where persons desire the appointment of a +friend or the removal of an official who may be disagreeable to them. + +To have any rules effective they must have the acquiescence of Congress as +well as of the Executive. I commend, therefore, the subject to your +attention, and suggest that a special committee of Congress might confer +with the Civil-Service Board during the present session for the purpose of +devising such rules as can be maintained, and which will secure the +services of honest and capable officials, and which will also protect them +in a degree of independence while in office. + +Proper rules will protect Congress, as well as the Executive, from much +needless persecution, and will prove of great value to the public at +large. + +I would recommend for your favorable consideration the passage of an +enabling act for the admission of Colorado as a State in the Union. It +possesses all the elements of a prosperous State, agricultural and mineral, +and, I believe, has a population now to justify such admission. In +connection with this I would also recommend the encouragement of a canal +for purposes of irrigation from the eastern slope of the Rocky Mountains to +the Missouri River. As a rule I am opposed to further donations of public +lands for internal improvements owned and controlled by private +corporations, but in this instance I would make an exception. Between the +Missouri River and the Rocky Mountains there is an arid belt of public land +from 300 to 500 miles in width, perfectly valueless for the occupation of +man, for the want of sufficient rain to secure the growth of any product. +An irrigating canal would make productive a belt as wide as the supply of +water could be made to spread over across this entire country, and would +secure a cordon of settlements connecting the present population of the +mountain and mining regions with that of the older States. All the land +reclaimed would be clear gain. If alternate sections are retained by the +Government, I would suggest that the retained sections be thrown open to +entry under the homestead laws, or sold to actual settlers for a very low +price. + +I renew my previous recommendation to Congress for general amnesty. The +number engaged in the late rebellion yet laboring under disabilities is +very small, but enough to keep up a constant irritation. No possible danger +can accrue to the Government by restoring them to eligibility to hold +office. + +I suggest for your consideration the enactment of a law to better secure +the civil rights which freedom should secure, but has not effectually +secured, to the enfranchised slave. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 7, 1874 + +To the Senate and House of Representatives: + +Since the convening of Congress one year ago the nation has undergone a +prostration in business and industries such as has not been witnessed with +us for many years. Speculation as to the causes for this prostration might +be indulged in without profit, because as many theories would be advanced +as there would be independent writers--those who expressed their own views +without borrowing--upon the subject. Without indulging in theories as to +the cause of this prostration, therefore, I will call your attention only +to the fact, and to some plain questions as to which it would seem there +should be no disagreement. + +During this prostration two essential elements of prosperity have been most +abundant--labor and capital. Both have been largely unemployed. Where +security has been undoubted, capital has been attainable at very moderate +rates. Where labor has been wanted, it has been found in abundance, at +cheap rates compared with what--of necessaries and comforts of life--could +be purchased with the wages demanded. Two great elements of prosperity, +therefore, have not been denied us. A third might be added: Our soil and +climate are unequaled, within the limits of any contiguous territory under +one nationality, for its variety of products to feed and clothe a people +and in the amount of surplus to spare to feed less favored peoples. +Therefore, with these facts in view, it seems to me that wise +statesmanship, at this session of Congress, would dictate legislation +ignoring the past; directing in proper channels these great elements of +prosperity to any people. Debt, debt abroad, is the only element that can, +with always a sound currency, enter into our affairs to cause any continued +depression in the industries and prosperity of our people. + +A great conflict for national existence made necessary, for temporary +purposes, the raising of large sums of money from whatever source +attainable. It made it necessary, in the wisdom of Congress--and I do not +doubt their wisdom in the premises, regarding the necessity of the +times--to devise a system of national currency which it proved to be +impossible to keep on a par with the recognized currency of the civilized +world. This begot a spirit of speculation involving an extravagance and +luxury not required for the happiness or prosperity of a people, and +involving, both directly and indirectly, foreign indebtedness. The +currency, being of fluctuating value, and therefore unsafe to hold for +legitimate transactions requiring money, became a subject of speculation +within itself. These two causes, however, have involved us in a foreign +indebtedness, contracted in good faith by borrower and lender, which should +be paid in coin, and according to the bond agreed upon when the debt was +contracted--gold or its equivalent. The good faith of the Government can +not be violated toward creditors without national disgrace. But our +commerce should be encouraged; American shipbuilding and carrying capacity +increased; foreign markets sought for products of the soil and +manufactories, to the end that we may be able to pay these debts. Where a +new market can be created for the sale of our products, either of the soil, +the mine, or the manufactory, a new means is discovered of utilizing our +idle capital and labor to the advantage of the whole people. But, in my +judgment, the first step toward accomplishing this object is to secure a +currency of fixed, stable value; a currency good wherever civilization +reigns; one which, if it becomes superabundant with one people, will find a +market with some other; a currency which has as its basis the labor +necessary to produce it, which will give to it its value. Gold and silver +are now the recognized medium of exchange the civilized world over, and to +this we should return with the least practicable delay. In view of the +pledges of the American Congress when our present legal-tender system was +adopted, and debt contracted, there should be no delay--certainly no +unnecessary delay--in fixing by legislation a method by which we will +return to specie. To the accomplishment of this end I invite your special +attention. I believe firmly that there can be no prosperous and permanent +revival of business and industries until a policy is adopted--with +legislation to carry it out--looking to a return to a specie basis. It is +easy to conceive that the debtor and speculative classes may think it of +value to them to make so-called money abundant until they can throw a +portion of their burdens upon others. But even these, I believe, would be +disappointed in the result if a course should be pursued which will keep in +doubt the value of the legal-tender medium of exchange. A revival of +productive industry is needed by all classes; by none more than the holders +of property, of whatever sort, with debts to liquidate from realization +upon its sale. But admitting that these two classes of citizens are to be +benefited by expansion, would it be honest to give it? Would not the +general loss be too great to justify such relief? Would it not be just as +honest and prudent to authorize each debtor to issue his own legal-tenders +to the extent of his liabilities? Than to do this, would it not be safer, +for fear of overissues by unscrupulous creditors, to say that all debt +obligations are obliterated in the United States, and now we commence anew, +each possessing all he has at the time free from incumbrance? These +propositions are too absurd to be entertained for a moment by thinking or +honest people. Yet every delay in preparation for final resumption partakes +of this dishonesty, and is only less in degree as the hope is held out that +a convenient season will at last arrive for the good work of redeeming our +pledges to commence. It will never come, in my opinion, except by positive +action by Congress, or by national disasters which will destroy, for a time +at least, the credit of the individual and the State at large. A sound +currency might be reached by total bankruptcy and discredit of the +integrity of the nation and of individuals. I believe it is in the power of +Congress at this session to devise such legislation as will renew +confidence, revive all the industries, start us on a career of prosperity +to last for many years and to save the credit of the nation and of the +people. Steps toward the return to a specie basis are the great requisites +to this devoutly to be sought for end. There are others which I may touch +upon hereafter. + +A nation dealing in a currency below that of specie in value labors under +two great disadvantages: First, having no use for the world's acknowledged +medium of exchange, gold and silver, these are driven out of the country +because there is no need for their use; second, the medium of exchange in +use being of a fluctuating value--for, after all, it is only worth just +what it will purchase of gold and silver, metals having an intrinsic value +just in proportion to the honest labor it takes to produce them--a larger +margin must be allowed for profit by the manufacturer and producer. It is +months from the date of production to the date of realization. Interest +upon capital must be charged, and risk of fluctuation in the value of that +which is to be received in payment added. Hence high prices, acting as a +protection to the foreign producer, who receives nothing in exchange for +the products of his skill and labor except a currency good, at a stable +value, the world over It seems to me that nothing is clearer than that the +greater part of the burden of existing prostration, for the want of a sound +financial system, falls upon the working man, who must after all produce +the wealth, and the salaried man, who superintends and conducts business. +The burden falls upon them in two ways--by the deprivation of employment +and by the decreased purchasing power of their salaries. It is the duty of +Congress to devise the method of correcting the evils which are +acknowledged to exist, and not mine. But I will venture to suggest two or +three things which seem to me as absolutely necessary to a return to specie +payments, the first great requisite in a return to prosperity. The +legal-tender clause to the law authorizing the issue of currency by the +National Government should be repealed, to take effect as to all contracts +entered into after a day fixed in the repealing act--not to apply, however, +to payments of salaries by Government, or for other expenditures now +provided by law to be paid in currency, in the interval pending between +repeal and final resumption. Provision should be made by which the +Secretary of the Treasury can obtain gold as it may become necessary from +time to time from the date when specie redemption commences. To this might +and should be added a revenue sufficiently in excess of expenses to insure +an accumulation of gold in the Treasury to sustain permanent redemption. + +I commend this subject to your careful consideration, believing that a +favorable solution is attainable, and if reached by this Congress that the +present and future generations will ever gratefully remember it as their +deliverer from a thraldom of evil and disgrace. + +With resumption, free banking may be authorized with safety, giving the +same full protection to bill holders which they have under existing laws. +Indeed, I would regard free banking as essential. It would give proper +elasticity to the currency. As more currency should be required for the +transaction of legitimate business, new banks would be started, and in turn +banks would wind up their business when it was found that there was a +superabundance of currency. The experience and judgment of the people can +best decide just how much currency is required for the transaction of the +business of the country. It is unsafe to leave the settlement of this +question to Congress, the Secretary of the Treasury, or the Executive. +Congress should make the regulation under which banks may exist, but should +not make banking a monopoly by limiting the amount of redeemable paper +currency that shall be authorized. Such importance do I attach to this +subject, and so earnestly do I commend it to your attention, that I give it +prominence by introducing it at the beginning of this message. + +During the past year nothing has occurred to disturb the general friendly +and cordial relations of the United States with other powers. + +The correspondence submitted herewith between this Government and its +diplomatic representatives, as also with the representatives of other +countries, shows a satisfactory condition of all questions between the +United States and the most of those countries, and with few exceptions, to +which reference is hereafter made, the absence of any points of difference +to be adjusted. + +The notice directed by the resolution of Congress of June 17, 1874, to be +given to terminate the convention of July 17, 1858, between the United +States and Belgium has been given, and the treaty will accordingly +terminate on the 1st day of July, 1875. This convention secured to certain +Belgian vessels entering the ports of the United States exceptional +privileges which are not accorded to our own vessels. Other features of the +convention have proved satisfactory, and have tended to the cultivation of +mutually beneficial commercial intercourse and friendly relations between +the two countries. I hope that negotiations which have been invited will +result in the celebration of another treaty which may tend to the interests +of both countries. + +Our relations with China continue to be friendly. During the past year the +fear of hostilities between China and Japan, growing out of the landing of +an armed force upon the island of Formosa by the latter, has occasioned +uneasiness. It is earnestly hoped, however, that the difficulties arising +from this cause will be adjusted, and that the advance of civilization in +these Empires may not be retarded by a state of war. In consequence of the +part taken by certain citizens of the United States in this expedition, our +representatives in those countries have been instructed to impress upon the +Governments of China and Japan the firm intention of this country to +maintain strict neutrality in the event of hostilities, and to carefully +prevent any infraction of law on the part of our citizens. + +In connection with this subject I call the attention of Congress to a +generally conceded fact--that the great proportion of the Chinese +immigrants who come to our shores do not come voluntarily, to make their +homes with us and their labor productive of general prosperity, but come +under contracts with headmen, who own them almost absolutely. In a worse +form does this apply to Chinese women. Hardly a perceptible percentage of +them perform any honorable labor, but they are brought for shameful +purposes, to the disgrace of the communities where settled and to the great +demoralization of the youth of those localities. If this evil practice can +be legislated against, it will be my pleasure as well as duty to enforce +any regulation to secure so desirable an end. + +It is hoped that negotiations between the Government of Japan and the +treaty powers, looking to the further opening of the Empire and to the +removal of various restrictions upon trade and travel, may soon produce the +results desired, which can not fail to inure to the benefit of all the +parties. Having on previous occasions submitted to the consideration of +Congress the propriety of the release of the Japanese Government from the +further payment of the indemnity under the convention of October 22, 1864, +and as no action had been taken thereon, it became my duty to regard the +obligations of the convention as in force; and as the other powers +interested had received their portion of the indemnity in full, the +minister of the United States in Japan has, in behalf of this Government, +received the remainder of the amount due to the United States under the +convention of Simonosaki. I submit the propriety of applying the income of +a part, if not of the whole, of this fund to the education in the Japanese +language of a number of young men to be under obligations to serve the +Government for a specified time as interpreters at the legation and the +consulates in Japan. A limited number of Japanese youths might at the same +time be educated in our own vernacular, and mutual benefits would result to +both Governments. The importance of having our own citizens, competent and +familiar with the language of Japan, to act as interpreters and in other +capacities connected with the legation and the consulates in that country +can not readily be overestimated. + +The amount awarded to the Government of Great Britain by the mixed +commission organized under the provisions of the treaty of Washington in +settlement of the claims of British subjects arising from acts committed +between April 13, 1861, and April 9, 1865, became payable, under the terms +of the treaty, within the past year, and was paid upon the 21st day of +September, 1874. In this connection I renew my recommendation, made at the +opening of the last session of Congress, that a special court be created to +hear and determine all claims of aliens against the United States arising +from acts committed against their persons or property during the +insurrection. It appears equitable that opportunity should be offered to +citizens of other states to present their claims, as well as to those +British subjects whose claims were not admissible under the late +commission, to the early decision of some competent tribunal. To this end I +recommend the necessary legislation to organize a court to dispose of all +claims of aliens of the nature referred to in an equitable and satisfactory +manner, and to relieve Congress and the Departments from the consideration +of these questions. + +The legislation necessary to extend to the colony of Newfoundland certain +articles of the treaty of Washington of the 8th day of May, 1871, having +been had, a protocol to that effect was signed in behalf of the United +States and of Great Britain on the 28th day of May last, and was duly +proclaimed on the following day. A copy of the proclamation is submitted +herewith. + +A copy of the report of the commissioner appointed under the act of March +19, 1872, for surveying and marking the boundary between the United States +and the British possessions from the Lake of the Woods to the summit of the +Rocky Mountains is herewith transmitted. I am happy to announce that the +field work of the commission has been completed, and the entire line from +the northwest corner of the Lake of the Woods to the summit of the Rocky +Mountains has been run and marked upon the surface of the earth. It is +believed that the amount remaining unexpended of the appropriation made at +the last session of Congress will be sufficient to complete the office +work. I recommend that the authority of Congress be given to the use of the +unexpended balance of the appropriation in the completion of the work of +the commission in making its report and preparing the necessary maps. + +The court known as the Court of Commissioners of Alabama Claims, created by +an act of Congress of the last session, has organized and commenced its +work, and it is to be hoped that the claims admissible under the provisions +of the act may be speedily ascertained and paid. + +It has been deemed advisable to exercise the discretion conferred upon the +Executive at the last session by accepting the conditions required by the +Government of Turkey for the privilege of allowing citizens of the United +States to hold real estate in the former country, and by assenting to a +certain change in the jurisdiction of courts in the latter. A copy of the +proclamation upon these subjects is herewith communicated. + +There has been no material change in our relations with the independent +States of this hemisphere which were formerly under the dominion of Spain. +Marauding on the frontiers between Mexico and Texas still frequently takes +place, despite the vigilance of the civil and military authorities in that +quarter. The difficulty of checking such trespasses along the course of a +river of such length as the Rio Grande, and so often fordable, is obvious. +It is hoped that the efforts of this Government will be seconded by those +of Mexico to the effectual suppression of these acts of wrong. + +From a report upon the condition of the business before the American and +Mexican Joint Claims Commission, made by the agent on the part of the +United States, and dated October 28, 1874, it appears that of the 1,017 +claims filed on the part of citizens of the United States, 483 had been +finally decided and 75 were in the hands of the umpire, leaving 462 to be +disposed of; and of the 998 claims filed against the United States, 726 had +been finally decided, I was before the umpire, and 271 remained to be +disposed of. Since the date of such report other claims have been disposed +of, reducing somewhat the number still pending; and others have been passed +upon by the arbitrators. It has become apparent, in view of these figures +and of the fact that the work devolving on the umpire is particularly +laborious, that the commission will be unable to dispose of the entire +number of claims pending prior to the 1st day of February, 1875--the date +fixed for its expiration. Negotiations are pending looking to the securing +of the results of the decisions which have been reached and to a further +extension of the commission for a limited time, which it is confidently +hoped will suffice to bring all the business now before it to a final +close. + +The strife in the Argentine Republic is to be deplored, both on account of +the parties thereto and from the probable effects on the interests of those +engaged in the trade to that quarter, of whom the United States are among +the principal. As yet, so far as I am aware, there has been no violation of +our neutrality rights, which, as well as our duties in that respect, it +shall be my endeavor to maintain and observe. + +It is with regret I announce that no further payment has been received from +the Government of Venezuela on account of awards in favor of citizens of +the United States. Hopes have been entertained that if that Republic could +escape both foreign and civil war for a few years its great natural +resources would enable it to honor its obligations. Though it is now +understood to be at peace with other countries, a serious insurrection is +reported to be in progress in an important region of that Republic. This +may be taken advantage of as another reason to delay the payment of the +dues of our citizens. + +The deplorable strife in Cuba continues without any marked change in the +relative advantages of the contending forces. The insurrection continues, +but Spain has gained no superiority. Six years of strife give to the +insurrection a significance which can not be denied. Its duration and the +tenacity of its adherence, together with the absence of manifested power of +suppression on the part of Spain, can not be controverted, and may make +some positive steps on the part of other powers a matter of self-necessity. +I had confidently hoped at this time to be able to announce the arrangement +of some of the important questions between this Government and that of +Spain, but the negotiations have been protracted. The unhappy intestine +dissensions of Spain command our profound sympathy, and must be accepted as +perhaps a cause of some delay. An early settlement, in part at least, of +the questions between the Governments is hoped. In the meantime, awaiting +the results of immediately pending negotiations, I defer a further and +fuller communication on the subject of the relations of this country and +Spain. + +I have again to call the attention of Congress to the unsatisfactory +condition of the existing laws with reference to expatriation and the +election of nationality. Formerly, amid conflicting opinions and decisions, +it was difficult to exactly determine how far the doctrine of perpetual +allegiance was applicable to citizens of the United States. Congress by the +act of the 27th of July, 1868, asserted the abstract right of expatriation +as a fundamental principle of this Government. Notwithstanding such +assertion and the necessity of frequent application of the principle, no +legislation has been had defining what acts or formalities shall work +expatriation or when a citizen shall be deemed to have renounced or to have +lost his citizenship. The importance of such definition is obvious. The +representatives of the United States in foreign countries are continually +called upon to lend their aid and the protection of the United States to +persons concerning the good faith or the reality of whose citizenship there +is at least great question. In some cases the provisions of the treaties +furnish some guide; in others it seems left to the person claiming the +benefits of citizenship, while living in a foreign country, contributing in +no manner to the performance of the duties of a citizen of the United +States, and without intention at any time to return and undertake those +duties, to use the claims to citizenship of the United States simply as a +shield from the performance of the obligations of a citizen elsewhere. + +The status of children born of American parents residing in a foreign +country, of American women who have married aliens, of American citizens +residing abroad where such question is not regulated by treaty, are all +sources of frequent difficulty and discussion. Legislation on these and +similar questions, and particularly defining when and under what +circumstances expatriation can be accomplished or is to be presumed, is +especially needed. In this connection I earnestly call the attention of +Congress to the difficulties arising from fraudulent naturalization. The +United States wisely, freely, and liberally offers its citizenship to all +who may come in good faith to reside within its limits on their complying +with certain prescribed reasonable and simple formalities and conditions. +Among the highest duties of the Government is that to afford firm, +sufficient, and equal protection to all its citizens, whether native born +or naturalized. Care should be taken that a right carrying with it such +support from the Government should not be fraudulently obtained, and should +be bestowed only upon full proof of a compliance with the law; and yet +frequent instances are brought to the attention of the Government of +illegal and fraudulent naturalization and of the unauthorized use of +certificates thus improperly obtained. In some cases the fraudulent +character of the naturalization has appeared upon the face of the +certificate itself; in others examination discloses that the holder had not +complied with the law, and in others certificates have been obtained where +the persons holding them not only were not entitled to be naturalized, but +had not even been within the United States at the time of the pretended +naturalization. Instances of each of these classes of fraud are discovered +at our legations, where the certificates of naturalization are presented +either for the purpose of obtaining passports or in demanding the +protection of the legation. When the fraud is apparent on the face of such +certificates, they are taken up by the representatives of the Government +and forwarded to the Department of State. But even then the record of the +court in which the fraudulent naturalization occurred remains, and +duplicate certificates are readily obtainable. Upon the presentation of +these for the issue of passports or in demanding protection of the +Government, the fraud sometimes escapes notice, and such certificates are +not infrequently used in transactions of business to the deception and +injury of innocent parties. Without placing any additional obstacles in the +way of the obtainment of citizenship by the worthy and well-intentioned +foreigner who comes in good faith to cast his lot with ours, I earnestly +recommend further legislation to punish fraudulent naturalization and to +secure the ready cancellation of the record of every naturalization made in +fraud. + +Since my last annual message the exchange has been made of the ratification +of treaties of extradition with Belgium, Ecuador, Peru, and Salvador; also +of a treaty of commerce and navigation with Peru, and one of commerce and +consular privileges with Salvador; all of which have been duly proclaimed, +as has also a declaration with Russia with reference to trade-marks. + +The report of the Secretary of the Treasury, which by law is made directly +to Congress, and forms no part of this message, will show the receipts and +expenditures of the Government for the last fiscal year, the amount +received from each source of revenue, and the amount paid out for each of +the Departments of Government. It will be observed from this report that +the amount of receipts over expenditures has been but $2,344,882.30 for the +fiscal year ending June 30, 1874, and that for the current fiscal year the +estimated receipts over expenditures will not much exceed $9,000,000. In +view of the large national debt existing and the obligation to add 1 per +cent per annum to the sinking fund, a sum amounting now to over $34,000,000 +per annum, I submit whether revenues should not be increased or +expenditures diminished to reach this amount of surplus. Not to provide for +the sinking fund is a partial failure to comply with the contracts and +obligations of the Government. At the last session of Congress a very +considerable reduction was made in rates of taxation and in the number of +articles submitted to taxation; the question may well be asked, whether or +not, in some instances, unwisely. In connection with this subject, too, I +venture the opinion that the means of collecting the revenue, especially +from imports, have been so embarrassed by legislation as to make it +questionable whether or not large amounts are not lost by failure to +collect, to the direct loss of the Treasury and to the prejudice of the +interests of honest importers and taxpayers. + +The Secretary of the Treasury in his report favors legislation looking to +an early return to specie payments, thus supporting views previously +expressed in this message. He also recommends economy in appropriations; +calls attention to the loss of revenue from repealing the tax on tea and +coffee, without benefit to the consumer; recommends an increase of 10 cents +a gallon on whisky, and, further, that no modification be made in the +banking and currency bill passed at the last session of Congress, unless +modification should become necessary by reason of the adoption of measures +for returning to specie payments. In these recommendations I cordially +join. + +I would suggest to Congress the propriety of readjusting the tariff so as +to increase the revenue, and at the same time decrease the number of +articles upon which duties are levied. Those articles which enter into our +manufactures and are not produced at home, it seems to me, should be +entered free. Those articles of manufacture which we produce a constituent +part of, but do not produce the whole, that part which we do not produce +should enter free also. I will instance fine wool, dyes, etc. These +articles must be imported to form a part of the manufacture of the higher +grades of woolen goods. Chemicals used as dyes, compounded in medicines, +and used in various ways in manufactures come under this class. The +introduction free of duty of such wools as we do not produce would +stimulate the manufacture of goods requiring the use of those we do +produce, and therefore would be a benefit to home production. There are +many articles entering into "home manufactures" which we do not produce +ourselves the tariff upon which increases the cost of producing the +manufactured article. All corrections in this regard are in the direction +of bringing labor and capital in harmony with each other and of supplying +one of the elements of prosperity so much needed. + +The report of the Secretary of War herewith attached, and forming a part of +this message, gives all the information concerning the operations, wants, +and necessities of the Army, and contains many suggestions and +recommendations which I commend to your special attention. + +There is no class of Government employees who are harder worked than the +Army--officers and men; none who perform their tasks more cheerfully and +efficiently and under circumstances of greater privations and hardships. + +Legislation is desirable to render more efficient this branch of the public +service. All the recommendations of the Secretary of War I regard as +judicious, and I especially commend to your attention the following: The +consolidation of Government arsenals; the restoration of mileage to +officers traveling under orders; the exemption of money received from the +sale of subsistence stores from being covered into the Treasury; the use of +appropriations for the purchase of subsistence stores without waiting for +the beginning of the fiscal year for which the appropriation is made; for +additional appropriations for the collection of torpedo material; for +increased appropriations for the manufacture of arms; for relieving the +various States from indebtedness for arms charged to them during the +rebellion; for dropping officers from the rolls of the Army without trial +for the offense of drawing pay more than once for the same period; for the +discouragement of the plan to pay soldiers by cheek, and for the +establishment of a professorship of rhetoric and English literature at West +Point. The reasons for these recommendations are obvious, and are set forth +sufficiently in the reports attached. I also recommend that the status of +the staff corps of the Army be fixed, where this has not already been done, +so that promotions may be made and vacancies filled as they occur in each +grade when reduced below the number to be fixed by law. The necessity for +such legislation is specially felt now in the Pay Department. The number of +officers in that department is below the number adequate to the performance +of the duties required of them by law. + +The efficiency of the Navy has been largely increased during the last year. +Under the impulse of the foreign complications which threatened us at the +commencement of the last session of Congress, most of our efficient wooden +ships were put in condition for immediate service, and the repairs of our +ironclad fleet were pushed with the utmost vigor. The result is that most +of these are now in an effective state and need only to be manned and put +in commission to go at once into service. + +Some of the new sloops authorized by Congress are already in commission, +and most of the remainder are launched and wait only the completion of +their machinery to enable them to take their places as part of our +effective force. + +Two iron torpedo ships have been completed during the last year, and four +of our large double-turreted ironclads are now undergoing repairs. When +these are finished, everything that is useful of our Navy, as now +authorized, will be in condition for service, and with the advance in the +science of torpedo warfare the American Navy, comparatively small as it is, +will be found at any time powerful for the purposes of a peaceful nation. + +Much has been accomplished during the year in aid of science and to +increase the sum of general knowledge and further the interests of commerce +and civilization. Extensive and much-needed soundings have been made for +hydrographic purposes and to fix the proper routes of ocean telegraphs. +Further surveys of the great Isthmus have been undertaken and completed, +and two vessels of the Navy are now employed, in conjunction with those of +England, France, Germany, and Russia, in observations connected with the +transit of Venus, so useful and interesting to the scientific world. + +The estimates for this branch of the public service do not differ +materially from those of last year, those for the general support of the +service being somewhat less and those for permanent improvements at the +various stations rather larger than the corresponding estimate made a year +ago. The regular maintenance and a steady increase in the efficiency of +this most important arm in proportion to the growth of our maritime +intercourse and interests is recommended to the attention of Congress. + +The use of the Navy in time of peace might be further utilized by a direct +authorization of the employment of naval vessels in explorations and +surveys of the supposed navigable waters of other nationalities on this +continent, especially the tributaries of the two great rivers of South +America, the Orinoco and the Amazon. Nothing prevents, under existing laws, +such exploration, except that expenditures must be made in such expeditions +beyond those usually provided for in the appropriations. The field +designated is unquestionably one of interest and one capable of large +development of commercial interests--advantageous to the peoples reached +and to those who may establish relations with them. + +Education of the people entitled to exercise the right of franchise I +regard essential to general prosperity everywhere, and especially so in +republics, where birth, education, or previous condition does not enter +into account in giving suffrage. Next to the public school, the post-office +is the great agent of education over our vast territory. The rapidity with +which new sections are being settled, thus increasing the carrying of mails +in a more rapid ratio than the increase of receipts, is not alarming. The +report of the Postmaster-General herewith attached shows that there was an +increase of revenue in his Department in 1873 over the previous year of +$1,674,411, and an increase of cost of carrying the mails and paying +employees of $3,041,468.91. The report of the Postmaster-General gives +interesting statistics of his Department, and compares them with the +corresponding statistics of a year ago, showing a growth in every branch of +the Department. + +A postal convention has been concluded with New South Wales, an exchange of +postal cards established with Switzerland, and the negotiations pending for +several years past with France have been terminated in a convention with +that country, which went into effect last August. + +An international postal congress was convened in Berne, Switzerland, in +September last, at which the United States was represented by an officer of +the Post-Office Department of much experience and of qualification for the +position. A convention for the establishment of an international postal +union was agreed upon and signed by the delegates of the countries +represented, subject to the approval of the proper authorities of those +countries. + +I respectfully direct your attention to the report of the +Postmaster-General and to his suggestions in regard to an equitable +adjustment of the question of compensation to railroads for carrying the +mails. + +Your attention will be drawn to the unsettled condition of affairs in some +of the Southern States. + +On the 14th of September last the governor of Louisiana called upon me, as +provided by the Constitution and laws of the United States, to aid in +suppressing domestic violence in that State. This call was made in view of +a proclamation issued on that day by D. B. Penn, claiming that he was +elected lieutenant-governor in 1872, and calling upon the militia of the +State to arm, assemble, and drive from power the usurpers, as he designated +the officers of the State government. On the next day I issued my +proclamation commanding the insurgents to disperse within five days from +the date thereof, and subsequently learned that on that day they had taken +forcible possession of the statehouse. Steps were taken by me to support +the existing and recognized State government, but before the expiration of +the five days the insurrectionary movement was practically abandoned, and +the officers of the State government, with some minor exceptions, resumed +their powers and duties. Considering that the present State administration +of Louisiana has been the only government in that State for nearly two +years; that it has been tacitly acknowledged and acquiesced in as such by +Congress, and more than once expressly recognized by me, I regarded it as +my clear duty, when legally called upon for that purpose, to prevent its +overthrow by an armed mob under pretense of fraud and irregularity in the +election of 1872. I have heretofore called the attention of Congress to +this subject, stating that on account of the frauds and forgeries committed +at said election, and because it appears that the returns thereof were +never legally canvassed, it was impossible to tell thereby who were chosen; +but from the best sources of information at my command I have always +believed that the present State officers received a majority of the legal +votes actually cast at that election. I repeat what I said in my special +message of February 23, 1873, that in the event of no action by Congress I +must continue to recognize the government heretofore recognized by me. + +I regret to say that with preparations for the late election decided +indications appeared in some localities in the Southern States of a +determination, by acts of violence and intimidation, to deprive citizens of +the freedom of the ballot because of their political opinions. Bands of +men, masked and armed, made their appearance; White Leagues and other +societies were formed; large quantities of arms and ammunition were +imported and distributed to these organizations; military drills, with +menacing demonstrations, were held, and with all these murders enough were +committed to spread terror among those whose political action was to be +suppressed, if possible, by these intolerant and criminal proceedings. In +some places colored laborers were compelled to vote according to the wishes +of their employers, under threats of discharge if they acted otherwise; and +there are too many instances in which, when these threats were disregarded, +they were remorselessly executed by those who made them. I understand that +the fifteenth amendment to the Constitution was made to prevent this and a +like state of things, and the act of May 31, 1870, with amendments, was +passed to enforce its provisions, the object of both being to guarantee to +all citizens the right to vote and to protect them in the free enjoyment of +that right. Enjoined by the Constitution "to take care that the laws be +faithfully executed," and convinced by undoubted evidence that violations +of said act had been committed and that a widespread and flagrant disregard +of it was contemplated, the proper officers were instructed to prosecute +the offenders, and troops were stationed at convenient points to aid these +officers, if necessary, in the performance of their official duties. +Complaints are made of this interference by Federal authority; but if said +amendment and act do not provide for such interference under the +circumstances as above stated, then they are without meaning, force, or +effect, and the whole scheme of colored enfranchisement is worse than +mockery and little better than a crime. Possibly Congress may find it due +to truth and justice to ascertain, by means of a committee, whether the +alleged wrongs to colored citizens for political purposes are real or the +reports thereof were manufactured for the occasion. + +The whole number of troops in the States of Louisiana, Alabama, Georgia, +Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, +Mississippi, Maryland, and Virginia at the time of the election was 4,082. +This embraces the garrisons of all the forts from the Delaware to the Gulf +of Mexico. + +Another trouble has arisen in Arkansas. Article 13 of the constitution of +that State (which was adopted in 1868, and upon the approval of which by +Congress the State was restored to representation as one of the States of +the Union) provides in effect that before any amendments proposed to this +constitution shall become a part thereof they shall be passed by two +successive assemblies and then submitted to and ratified by a majority of +the electors of the State voting thereon. On the 11th of May, 1874, the +governor convened an extra session of the general assembly of the State, +which on the 18th of the same month passed an act providing for a +convention to frame a new constitution. Pursuant to this act, and at an +election held on the 30th of June, 1874, the convention was approved, and +delegates were chosen thereto, who assembled on the 14th of last July and +framed a new constitution, the schedule of which provided for the election +of an entire new set of State officers in a manner contrary to the then +existing election laws of the State. On the 13th of October, 1874, this +constitution, as therein provided, was submitted to the people for their +approval or rejection, and according to the election returns was approved +by a large majority of those qualified to vote thereon; and at the same +election persons were chosen to fill all the State, county, and township +offices. The governor elected in 1872 for the term of four years turned +over his office to the governor chosen under the new constitution, +whereupon the lieutenant-governor, also elected in 1872 for a term of four +years, claiming to act as governor, and alleging that said proceedings by +which the new constitution was made and a new set of officers elected were +unconstitutional, illegal, and void, called upon me, as provided in section +4, Article IV, of the Constitution, to protect the State against domestic +violence. As Congress is now investigating the political affairs of +Arkansas, I have declined to interfere. + +The whole subject of Executive interference with the affairs of a State is +repugnant to public opinion, to the feelings of those who, from their +official capacity, must be used in such interposition, and to him or those +who must direct. Unless most clearly on the side of law, such interference +becomes a crime; with the law to support it, it is condemned without a +heating. I desire, therefore, that all necessity for Executive direction in +local affairs may become unnecessary and obsolete. I invite the attention, +not of Congress, but of the people of the United States, to the causes and +effects of these unhappy questions. Is there not a disposition on one side +to magnify wrongs and outrages, and on the other side to belittle them or +justify them? If public opinion could be directed to a correct survey of +what is and to rebuking wrong and aiding the proper authorities in +punishing it, a better state of feeling would be inculcated, and the sooner +we would have that peace which would leave the States free indeed to +regulate their own domestic affairs. I believe on the part of our citizens +of the Southern States--the better part of them--there is a disposition to +be law abiding, and to do no violence either to individuals or to the laws +existing. But do they do right in ignoring the existence of violence and +bloodshed in resistance to constituted authority? I sympathize with their +prostrate condition, and would do all in my power to relieve them, +acknowledging that in some instances they have had most trying governments +to live under, and very oppressive ones in the way of taxation for nominal +improvements, not giving benefits equal to the hardships imposed. But can +they proclaim themselves entirely irresponsible for this condition? They +can not. Violence has been rampant in some localities, and has either been +justified or denied by those who could have prevented it. The theory is +even raised that there is to be no further interference on the part of the +General Government to protect citizens within a State where the State +authorities fail to give protection. This is a great mistake. While I +remain Executive all the laws of Congress and the provisions of the +Constitution, including the recent amendments added thereto, will be +enforced with rigor, but with regret that they should have added one jot or +tittle to Executive duties or powers. Let there be fairness in the +discussion of Southern questions, the advocates of both or all political +parties giving honest, truthful reports of occurrences, condemning the +wrong and upholding the tight, and soon all will be well. Under existing +conditions the negro votes the Republican ticket because he knows his +friends are of that party. Many a good citizen votes the opposite, not +because he agrees with the great principles of state which separate +parties, but because, generally, he is opposed to negro rule. This is a +most delusive cry. Treat the negro as a citizen and a voter, as he is and +must remain, and soon parties will be divided, not on the color line, but +on principle. Then we shall have no complaint of sectional interference. + +The report of the Attorney-General contains valuable recommendations +relating to the administration of justice in the courts of the United +States, to which I invite your attention. + +I respectfully suggest to Congress the propriety of increasing the number +of judicial districts in the United States to eleven (the present number +being nine) and the creation of two additional judgeships. The territory to +be traversed by the circuit judges is so great and the business of the +courts so steadily increasing that it is growing more and more impossible +for them to keep up with the business requiring their attention. Whether +this would involve the necessity of adding two more justices of the Supreme +Court to the present number I submit to the judgment of Congress. + +The attention of Congress is invited to the report of the Secretary of the +Interior and to the legislation asked for by him. The domestic interests of +the people are more intimately connected with this Department than with +either of the other Departments of Government. Its duties have been added +to from time to time until they have become so onerous that without the +most perfect system and order it will be impossible for any Secretary of +the Interior to keep trace of all official transactions having his sanction +and done in his name, and for which he is held personally responsible. + +The policy adopted for the management of Indian affairs, known as the peace +policy, has been adhered to with most beneficial results. It is confidently +hoped that a few years more will relieve our frontiers from danger of +Indian depredations. + +I commend the recommendation of the Secretary for the extension of the +homestead laws to the Indians and for some sort of Territorial government +for the Indian Territory. A great majority of the Indians occupying this +Territory are believed yet to be incapable of maintaining their rights +against the more civilized and enlightened white man. Any Territorial form +of government given them, therefore, should protect them in their homes and +property for a period of at least twenty years, and before its final +adoption should be ratified by a majority of those affected. + +The report of the Secretary of the Interior herewith attached gives much +interesting statistical information, which I abstain from giving an +abstract of, but refer you to the report itself. + +The act of Congress providing the oath which pensioners must subscribe to +before drawing their pensions cuts off from this bounty a few survivors of +the War of 1812 residing in the Southern States. I recommend the +restoration of this bounty to all such. The number of persons whose names +would thus be restored to the list of pensioners is not large. They are all +old persons, who could have taken no part in the rebellion, and the +services for which they were awarded pensions were in defense of the whole +country. + +The report of the Commissioner of Agriculture herewith contains suggestions +of much interest to the general public, and refers to the sly approaching +Centennial and the part his Department is ready to take in it. I feel that +the nation at large is interested in having this exposition a success, and +commend to Congress such action as will secure a greater general interest +in it. Already many foreign nations have signified their intention to be +represented at it, and it may be expected that every civilized nation will +be represented. + +The rules adopted to improve the civil service of the Government have been +adhered to as closely as has been practicable with the opposition with +which they meet. The effect, I believe, has been beneficial on the whole, +and has tended to the elevation of the service. But it is impracticable to +maintain them without direct and positive support of Congress. Generally +the support which this reform receives is from those who give it their +support only to find fault when the rules are apparently departed from. +Removals from office without preferring charges against parties removed are +frequently cited as departures from the rules adopted, and the retention of +those against whom charges are made by irresponsible persons and without +good grounds is also often condemned as a violation of them. Under these +circumstances, therefore, I announce that if Congress adjourns without +positive legislation on the subject of "civil-service reform" I will regard +such action as a disapproval of the system, and will abandon it, except so +far as to require examinations for certain appointees, to determine their +fitness. Competitive examinations will be abandoned. + +The gentlemen who have given their services, without compensation, as +members of the board to devise rules and regulations for the government of +the civil service of the country have shown much zeal and earnestness in +their work, and to them, as well as to myself, it will be a source of +mortification if it is to be thrown away. But I repeat that it is +impossible to carry this system to a successful issue without general +approval and assistance and positive law to support it. + +I have stated that three elements of prosperity to the nation--capital, +labor, skilled and unskilled, and products of the soil--still remain with +us. To direct the employment of these is a problem deserving the most +serious attention of Congress. If employment can be given to all the labor +offering itself, prosperity necessarily follows. I have expressed the +opinion, and repeat it, that the first requisite to the accomplishment of +this end is the substitution of a sound currency in place of one of a +fluctuating value. This secured, there are many interests that might be +fostered to the great profit of both labor and capital. How to induce +capital to employ labor is the question. The subject of cheap +transportation has occupied the attention of Congress. Much new light on +this question will without doubt be given by the committee appointed by the +last Congress to investigate and report upon this subject. + +A revival of shipbuilding, and particularly of iron steamship building, is +of vast importance to our national prosperity. The United States is now +paying over $100,000,000 per annum for freights and passage on foreign +ships--to be carried abroad and expended in the employment and support of +other peoples--beyond a fair percentage of what should go to foreign +vessels, estimating on the tonnage and travel of each respectively. It is +to be regretted that this disparity in the carrying trade exists, and to +correct it I would be willing to see a great departure from the usual +course of Government in supporting what might usually be termed private +enterprise. I would not suggest as a remedy direct subsidy to American +steamship lines, but I would suggest the direct offer of ample compensation +for carrying the mails between Atlantic Seaboard cities and the Continent +on American-owned and American-built steamers, and would extend this +liberality to vessels carrying the mails to South American States and to +Central America and Mexico, and would pursue the same policy from our +Pacific seaports to foreign seaports on the Pacific. It might be demanded +that vessels built for this service should come up to a standard fixed by +legislation in tonnage, speed, and all other qualities, looking to the +possibility of Government requiring them at some time for war purposes. The +right also of taking possession of them in such emergency should be +guarded. + +I offer these suggestions, believing them worthy of consideration, in all +seriousness, affecting all sections and all interests alike. If anything +better can be done to direct the country into a course of general +prosperity, no one will be more ready than I to second the plan. + +Forwarded herewith will be found the report of the commissioners appointed +under an act of Congress approved June 20, 1874, to wind up the affairs of +the District government. It will be seen from the report that the net debt +of the District of Columbia, less securities on hand and available, is: + +Bonded debt issued prior to July 1, 1874 - - $8,883,940.93 + +3.65 bonds, act of Congress June 20, 1874 - - 2,088,168.73 + +Certificates of the board of audit - - 4,770,558.45 + +- - + +*** + +State of the Union Address +Ulysses S. Grant +December 7, 1875 + +To the Senate and House of Representatives: + +In submitting my seventh annual message to Congress, in this centennial +year of our national existence as a free and independent people, it affords +me great pleasure to recur to the advancement that has been made from the +time of the colonies, one hundred years ago. We were then a people +numbering only 3,000,000. Now we number more than 40,000,000. Then +industries were confined almost exclusively to the tillage of the soil. Now +manufactories absorb much of the labor of the country. + +Our liberties remain unimpaired; the bondmen have been freed from slavery; +we have become possessed of the respect, if not the friendship, of all +civilized nations. Our progress has been great in all the arts--in science, +agriculture, commerce, navigation, mining, mechanics, law, medicine, etc.; +and in general education the progress is likewise encouraging. Our thirteen +States have become thirty-eight, including Colorado (which has taken the +initiatory steps to become a State), and eight Territories, including the +Indian Territory and Alaska, and excluding Colorado, making a territory +extending from the Atlantic to the Pacific. On the south we have extended +to the Gulf of Mexico, and in the west from the Mississippi to the +Pacific. + +One hundred years ago the cotton gin, the steamship, the railroad, the +telegraph, the reaping, sewing, and modern printing machines, and numerous +other inventions of scarcely less value to our business and happiness were +entirely unknown. + +In 1776 manufactories scarcely existed even in name in all this vast +territory. In 1870 more than 2,000,000 persons were employed in +manufactories, producing more than $2,100,000,000 of products in amount +annually, nearly equal to our national debt. From nearly the whole of the +population of 1776 being engaged in the one occupation of agriculture, in +1870 so numerous and diversified had become the occupation of our people +that less than 6,000,000 out of more than 40,000,000 were so engaged. The +extraordinary effect produced in our country by a resort to diversified +occupations has built a market for the products of fertile lands distant +from the seaboard and the markets of the world. + +The American system of locating various and extensive manufactories next to +the plow and the pasture, and adding connecting railroads and steamboats, +has produced in our distant interior country a result noticeable by the +intelligent portions of all commercial nations. The ingenuity and skill of +American mechanics have been demonstrated at home and abroad in a manner +most flattering to their pride. But for the extraordinary genius and +ability of our mechanics, the achievements of our agriculturists, +manufacturers, and transporters throughout the country would have been +impossible of attainment. + +The progress of the miner has also been great. Of coal our production has +small; now many millions of tons are mined annually. So with iron, which +formed scarcely an appreciable part of our products half a century ago, we +now produce more than the world consumed at the beginning of our national +existence. Lead, zinc, and copper, from being articles of import, we may +expect to be large exporters of in the near future. The development of gold +and silver mines in the United States and Territories has not only been +remarkable, but has had a large influence upon the business of all +commercial nations. Our merchants in the last hundred years have had a +success and have established a reputation for enterprise, sagacity, +progress, and integrity unsurpassed by peoples of older nationalities. This +"good name" is not confined to their homes, but goes out upon every sea and +into every port where commerce enters. With equal pride we can point to our +progress in all of the learned professions. + +As we are now about to enter upon our second centennial--commenting our +manhood as a nation--it is well to look back upon the past and study what +will be best to preserve and advance our future greatness From the fall of +Adam for his transgression to the present day no nation has ever been free +from threatened danger to its prosperity and happiness. We should look to +the dangers threatening us, and remedy them so far as lies in our power. We +are a republic whereof one man is as good as another before the law. Under +such a form of government it is of the greatest importance that all should +be possessed of education and intelligence enough to cast a vote with a +right understanding of its meaning. A large association of ignorant men can +not for any considerable period oppose a successful resistance to tyranny +and oppression from the educated few, but will inevitably sink into +acquiescence to the will of intelligence, whether directed by the demagogue +or by priestcraft. Hence the education of the masses becomes of the first +necessity for the preservation of our institutions. They are worth +preserving, because they have secured the greatest good to the greatest +proportion of the population of any form of government yet devised. All +other forms of government approach it just in proportion to the general +diffusion of education and independence of thought and action. As the +primary step, therefore, to our advancement in all that has marked our +progress in the past century, I suggest for your earnest consideration, and +most earnestly recommend it, that a constitutional amendment be submitted +to the legislatures of the several States for ratification, making it the +duty of each of the several States to establish and forever maintain free +public schools adequate to the education of all the children in the +rudimentary branches within their respective limits, irrespective of sex, +color, birthplace, or religions; forbidding the teaching in said schools of +religious, atheistic, or pagan tenets; and prohibiting the granting of any +school funds or school taxes, or any part thereof, either by legislative, +municipal, or other authority, for the benefit or in aid, directly or +indirectly, of any religious sect or denomination, or in aid or for the +benefit of any other object of any nature or kind whatever. + +In connection with this important question I would also call your attention +to the importance of correcting an evil that, if permitted to continue, +will probably lead to great trouble in our land before the close of the +nineteenth century. It is the accumulation of vast amounts of untaxed +church property. + +In 1850, I believe, the church property of the United States which paid no +tax, municipal or State, amounted to about $83,000,000. In 1860 the amount +had doubled; in 1875 it is about $1,000,000,000. By 1900, without check, it +is safe to say this property will reach a sum exceeding $3,000,000,000. So +vast a sum, receiving all the protection and benefits of Government without +bearing its proportion of the burdens and expenses of the same, will not be +looked upon acquiescently by those who have to pay the taxes. In a growing +country, where real estate enhances so rapidly with time as in the United +States, there is scarcely a limit to the wealth that may be acquired by +corporations, religious or otherwise, if allowed to retain real estate +without taxation. The contemplation of so vast a property as here alluded +to, without taxation, may lead to sequestration without constitutional +authority and through blood. + +I would suggest the taxation of all property equally, whether church or +corporation, exempting only the last resting place of the dead and +possibly, with proper restrictions, church edifices. + +Our relations with most of the foreign powers continue on a satisfactory +and friendly footing. + +Increased intercourse, the extension of commerce, and the cultivation of +mutual interests have steadily improved our relations with the large +majority of the powers of the world, rendering practicable the peaceful +solution of questions which from time to time necessarily arise, leaving +few which demand extended or particular notice. + +The correspondence of the Department of State with our diplomatic +representatives abroad is transmitted herewith. + +I am happy to announce the passage of an act by the General Cortes of +Portugal, proclaimed since the adjournment of Congress, for the abolition +of servitude in the Portuguese colonies. It is to be hoped that such +legislation may be another step toward the great consummation to be +reached, when no man shall be permitted, directly or indirectly, under any +guise, excuse, or form of law, to hold his fellow-man in bondage. I am of +opinion also that it is the duty of the United States, as contributing +toward that end, and required by the spirit of the age in which we live, to +provide by suitable legislation that no citizen of the United States shall +hold slaves as property in any other country or be interested therein. + +Chile has made reparation in the case of the whale ship Good Return, seized +without sufficient cause upward of forty years ago. Though she had hitherto +denied her accountability, the denial was never acquiesced in by this +Government, and the justice of the claim has been so earnestly contended +for that it has been gratifying that she should have at last acknowledged +it. + +The arbitrator in the case of the United States steamer Montijo, for the +seizure and detention of which the Government of the United States of +Colombia was held accountable, has decided in favor of the claim. This +decision has settled a question which had been pending for several years, +and which, while it continued open, might more or less disturb the good +understanding which it is desirable should be maintained between the two +Republics. + +A reciprocity treaty with the King of the Hawaiian Islands was concluded +some months since. As it contains a stipulation that it shall not take +effect until Congress shall enact the proper legislation for that purpose, +copies of the instrument are herewith submitted, in order that, if such +should be the pleasure of Congress, the necessary legislation upon the +subject may be adopted. + +In March last an arrangement was made, through Mr. Cushing, our minister in +Madrid, with the Spanish Government for the payment by the latter to the +United States of the sum of $80,000 in coin, for the purpose of the relief +of the families or persons of the ship's company and certain passengers of +the Virginius. This sum was to have been paid in three installments at two +months each. It is due to the Spanish Government that I should state that +the payments were fully and spontaneously anticipated by that Government, +and that the whole amount was paid within but a few days more than two +months from the date of the agreement, a copy of which is herewith +transmitted. In pursuance of the terms of the adjustment, I have directed +the distribution of the amount among the parties entitled thereto, +including the ship's company and such of the passengers as were American +citizens. Payments are made accordingly, on the application by the parties +entitled thereto. + +The past year has furnished no evidence of an approaching termination of +the ruinous conflict which has been raging for seven years in the +neighboring island of Cuba. The same disregard of the laws of civilized +warfare and of the just demands of humanity which has heretofore called +forth expressions of condemnation from the nations of Christendom has +continued to blacken the sad scene. Desolation, ruin, and pillage are +pervading the rich fields of one of the most fertile and productive regions +of the earth, and the incendiary's torch, firing plantations and valuable +factories and buildings, is the agent marking the alternate advance or +retreat of contending parties. + +The protracted continuance of this strife seriously affects the interests +of all commercial nations, but those of the United States more than others, +by reason of close proximity, its larger trade and intercourse with Cuba, +and the frequent and intimate personal and social relations which have +grown up between its citizens and those of the island. Moreover, the +property of our citizens in Cuba is large, and is rendered insecure and +depreciated in value and in capacity of production by the continuance of +the strife and the unnatural mode of its conduct. The same is true, +differing only in degree, with respect to the interests and people of other +nations; and the absence of any reasonable assurance of a near termination +of the conflict must of necessity soon compel the States thus suffering to +consider what the interests of their own people and their duty toward +themselves may demand. + +I have hoped that Spain would be enabled to establish peace in her colony, +to afford security to the property and the interests of our citizens, and +allow legitimate scope to trade and commerce and the natural productions of +the island. Because of this hope, and from an extreme reluctance to +interfere in the most remote manner in the affairs of another and a +friendly nation, especially of one whose sympathy and friendship in the +struggling infancy of our own existence must ever be remembered with +gratitude, I have patiently and anxiously waited the progress of events. +Our own civil conflict is too recent for us not to consider the +difficulties which surround a government distracted by a dynastic rebellion +at home at the same time that it has to cope with a separate insurrection +in a distant colony. But whatever causes may have produced the situation +which so grievously affects our interests, it exists, with all its +attendant evils operating directly upon this country and its people. Thus +far all the efforts of Spain have proved abortive, and time has marked no +improvement in the situation. The armed bands of either side now occupy +nearly the same ground as in the past, with the difference, from time to +time, of more lives sacrificed, more property destroyed, and wider extents +of fertile and productive fields and more and more of valuable property +constantly wantonly sacrificed to the incendiary's torch. + +In contests of this nature, where a considerable body of people who have +attempted to free themselves of the control of the superior government have +reached such point in occupation of territory, in power, and in general +organization as to constitute in fact a body politic; having a government +in substance as well as in name; possessed of the elements of stability and +equipped with the machinery for the administration of internal policy and +the execution of its laws; prepared and able to administer justice at home, +as well as in its dealings with other powers, it is within the province of +those other powers to recognize its existence as a new and independent +nation. In such cases other nations simply deal with an actually existing +condition of things, and recognize as one of the powers of the earth that +body politic which, possessing the necessary elements, has in fact become a +new power. In a word, the creation of a new state is a fact. + +To establish the condition of things essential to the recognition of this +fact there must be a people occupying a known territory, united under some +known and defined form of government, acknowledged by those subject +thereto, in which the functions of government are administered by usual +methods, competent to mete out justice to citizens and strangers, to afford +remedies for public and for private wrongs, and able to assume the +correlative international obligations and capable of performing the +corresponding international duties resulting from its acquisition of the +rights of sovereignty. A power should exist complete in its organization, +ready to take and able to maintain its place among the nations of the +earth. + +While conscious that the insurrection in Cuba has shown a strength and +endurance which make it at least doubtful whether it be in the power of +Spain to subdue it, it seems unquestionable that no such civil organization +exists which may be recognized as an independent government capable of +performing its international obligations and entitled to be treated as one +of the powers of the earth. A recognition under such circumstances would be +inconsistent with the facts, and would compel the power granting it soon to +support by force the government to which it had really given its only claim +of existence. In my judgment the United States should adhere to the policy +and the principles which have heretofore been its sure and safe guides in +like contests between revolted colonies and their mother country, and, +acting only upon the clearest evidence, should avoid any possibility of +suspicion or of imputation. + +A recognition of the independence of Cuba being, in my opinion, +impracticable and indefensible, the question which next presents itself is +that of the recognition of belligerent rights in the parties to the +contest. + +In a former message to Congress I had occasion to consider this question, +and reached the conclusion that the conflict in Cuba, dreadful and +devastating as were its incidents, did not rise to the fearful dignity of +war. Regarding it now, after this lapse of time, I am unable to see that +any notable success or any marked or real advance on the part of the +insurgents has essentially changed the character of the contest. It has +acquired greater age, but not greater or more formidable proportions. It is +possible that the acts of foreign powers, and even acts of Spain herself, +of this very nature, might be pointed to in defense of such recognition. +But now, as in its past history, the United States should carefully avoid +the false lights which might lead it into the mazes of doubtful law and of +questionable propriety, and adhere rigidly and sternly to the rule, which +has been its guide, of doing only that which is right and honest and of +good report. The question of according or of withholding rights of +belligerency must be judged in every case in view of the particular +attending facts. Unless justified by necessity, it is always, and justly, +regarded as an unfriendly act and a gratuitous demonstration of moral +support to the rebellion. It is necessary, and it is required, when the +interests and rights of another government or of its people are so far +affected by a pending civil conflict as to require a definition of its +relations to the parties thereto. But this conflict must be one which will +be recognized in the sense of international law as war. Belligerence, too, +is a fact. The mere existence of contending armed bodies and their +occasional conflicts do not constitute war in the sense referred to. +Applying to the existing condition of affairs in Cuba the tests recognized +by publicists and writers on international law, and which have been +observed by nations of dignity, honesty, and power when free from sensitive +or selfish and unworthy motives, I fail to find in the insurrection the +existence of such a substantial political organization, real, palpable, and +manifest to the world, having the forms and capable of the ordinary +functions of government toward its own people and to other states, with +courts for the administration of justice, with a local habitation, +possessing such organization of force, such material, such occupation of +territory, as to take the contest out of the category of a mere rebellious +insurrection or occasional skirmishes and place it on the terrible footing +of war, to which a recognition of belligerency would aim to elevate it. The +contest, moreover, is solely on land; the insurrection has not possessed +itself of a single seaport whence it may send forth its flag, nor has it +any means of communication with foreign powers except through the military +lines of its adversaries. No apprehension of any of those sudden and +difficult complications which a war upon the ocean is apt to precipitate +upon the vessels, both commercial and national, and upon the consular +officers of other powers calls for the definition of their relations to the +parties to the contest. Considered as a question of expediency, I regard +the accordance of belligerent rights still to be as unwise and premature as +I regard it to be, at present, indefensible as a measure of right. Such +recognition entails upon the country according the rights which flow from +it difficult and complicated duties, and requires the exaction from the +contending parties of the strict observance of their rights and +obligations; it confers the right of search upon the high seas by vessels +of both parties; it would subject the carrying of arms and munitions of +war, which now may be transported freely and without interruption in the +vessels of the United States, to detention and to possible seizure; it +would give rise to countless vexatious questions, would release the parent +Government from responsibility for acts done by the insurgents, and would +invest Spain with the right to exercise the supervision recognized by our +treaty of 1795 over our commerce on the high seas, a very large part of +which, in its traffic between the Atlantic and the Gulf States and between +all of them and the States on the Pacific, passes through the waters which +wash the shores of Cuba. The exercise of this supervision could scarce fail +to lead, if not to abuses, certainly to collisions perilous to the peaceful +relations of the two States. There can be little doubt to what result such +supervision would before long draw this nation. It would be unworthy of the +United States to inaugurate the possibilities of such result by measures of +questionable right or expediency or by any indirection. Apart from any +question of theoretical right, I am satisfied that while the accordance of +belligerent rights to the insurgents in Cuba might give them a hope and an +inducement to protract the struggle, it would be but a delusive hope, and +would not remove the evils which this Government and its people are +experiencing, but would draw the United States into complications which it +has waited long and already suffered much to avoid. The recognition of +independence or of belligerency being thus, in my judgment, equally +inadmissible, it remains to consider what course shall be adopted should +the conflict not soon be brought to an end by acts of the parties +themselves, and should the evils which result therefrom, affecting all +nations, and particularly the United States, continue. In such event I am +of opinion that other nations will be compelled to assume the +responsibility which devolves upon them, and to seriously consider the only +remaining measures possible--mediation and intervention, Owing, perhaps, to +the large expanse of water separating the island from the peninsula, the +want of harmony and of personal sympathy between the inhabitants of the +colony and those sent thither to rule them, and want of adaptation of the +ancient colonial system of Europe to the present times and to the ideas +which the events of the past century have developed, the contending parties +appear to have within themselves no depository of common confidence to +suggest wisdom when passion and excitement have their sway and to assume +the part of peacemaker. In this view in the earlier days of the contest the +good offices of the United States as a mediator were tendered in good +faith, without any selfish purpose, in the interest of humanity and in +sincere friendship for both parties, but were at the time declined by +Spain, with the declaration, nevertheless, that at a future time they would +be indispensable. No intimation has been received that in the opinion of +Spain that time has been reached. And yet the strife continues, with all +its dread horrors and all its injuries to the interests of the United +States and of other nations. Each party seems quite capable of working +great injury and damage to the other, as well as to all the relations and +interests dependent on the existence of peace in the island; but they seem +incapable of reaching any adjustment, and both have thus far failed of +achieving any success whereby one party shall possess and control the +island to the exclusion of the other. Under these circumstances the agency +of others, either by mediation or by intervention, seems to be the only +alternative which must, sooner or later, be invoked for the termination of +the strife. At the same time, while thus impressed I do not at this time +recommend the adoption of any measure of intervention. I shall be ready at +all times, and as the equal friend of both parties, to respond to a +suggestion that the good offices of the United States will be acceptable to +aid in bringing about a peace honorable to both. It is due to Spain, so far +as this Government is concerned, that the agency of a third power, to which +I have adverted, shall be adopted only as a last expedient. Had it been the +desire of the United States to interfere in the affairs of Cuba, repeated +opportunities for so doing have been presented within the last few years; +but we have remained passive, and have performed our whole duty and all +international obligations to Spain with friendship, fairness, and fidelity, +and with a spirit of patience and forbearance which negatives every +possible suggestion of desire to interfere or to add to the difficulties +with which she has been surrounded. + +The Government of Spain has recently submitted to our minister at Madrid +certain proposals which it is hoped may be found to be the basis, if not +the actual submission, of terms to meet the requirements of the particular +griefs of which this Government has felt itself entitled to complain. These +proposals have not yet reached me in their full text. On their arrival they +will be taken into careful examination, and may, I hope, lead to a +satisfactory adjustment of the questions to which they refer and remove the +possibility of future occurrences such as have given rise to our just +complaints. + +It is understood also that renewed efforts are being made to introduce +reforms in the internal administration of the island. Persuaded, however, +that a proper regard for the interests of the United States and of its +citizens entitles it to relief from the strain to which it has been +subjected by the difficulties of the questions and the wrongs and losses +which arise from the contest in Cuba, and that the interests of humanity +itself demand the cessation of the strife before the whole island shall be +laid waste and larger sacrifices of life be made, I shall feel it my duty, +should my hopes of a satisfactory adjustment and of the early restoration +of peace and the removal of future causes of complaint be, unhappily, +disappointed, to make a further communication to Congress at some period +not far remote, and during the present session, recommending what may then +seem to me to be necessary. + +The free zone, so called, several years since established by the Mexican +Government in certain of the States of that Republic adjacent to our +frontier, remains in full operation. It has always been materially +injurious to honest traffic, for it operates as an incentive to traders in +Mexico to supply without customs charges the wants of inhabitants on this +side of the line, and prevents the same wants from being supplied by +merchants of the United States, thereby to a considerable extent defrauding +our revenue and checking honest commercial enterprise. + +Depredations by armed bands from Mexico on the people of Texas near the +frontier continue. Though the main object of these incursions is robbery, +they frequently result in the murder of unarmed and peaceably disposed +persons, and in some instances even the United States post-offices and mail +communications have been attacked. Renewed remonstrances upon this subject +have been addressed to the Mexican Government, but without much apparent +effect. The military force of this Government disposable for service in +that quarter is quite inadequate to effectually guard the line, even at +those points where the incursions are usually made. An experiment of an +armed vessel on the Rio Grande for that purpose is on trial, and it is +hoped that, if not thwarted by the shallowness of the river and other +natural obstacles, it may materially contribute to the protection of the +herdsmen of Texas. + +The proceedings of the joint commission under the convention between the +United States and Mexico of the 4th of July, 1868, on the subject of +claims, will soon be brought to a close. The result of those proceedings +will then be communicated to Congress. + +I am happy to announce that the Government of Venezuela has, upon further +consideration, practically abandoned its objection to pay to the United +States that share of its revenue which some years since it allotted toward +the extinguishment of the claims of foreigners generally. In thus +reconsidering its determination that Government has shown a just sense of +self-respect which can not fail to reflect credit upon it in the eyes of +all disinterested persons elsewhere. It is to be regretted, however, that +its payments on account of claims of citizens of the United States are +still so meager in amount, and that the stipulations of the treaty in +regard to the sums to be paid and the periods when those payments were to +take place should have been so signally disregarded. + +Since my last annual message the exchange has been made of the ratification +of a treaty of commerce and navigation with Belgium, and of conventions +with the Mexican Republic for the further extension of the joint commission +respecting claims; with the Hawaiian Islands for commercial reciprocity, +and with the Ottoman Empire for extradition; all of which have been duly +proclaimed. + +The Court of Commissioners of Alabama Claims has prosecuted its important +duties very assiduously and very satisfactorily. It convened and was +organized on the 22d day of July, 1874, and by the terms of the act under +which it was created was to exist for one year from that date. The act +provided, however, that should it be found impracticable to complete the +work of the court before the expiration of the year the President might by +proclamation extend the time of its duration to a period not more than six +months beyond the expiration of the one year. + +Having received satisfactory evidence that it would be impracticable to +complete the work within the time originally fixed, I issued a proclamation +(a copy of which is presented herewith) extending the time of duration of +the court for a period of six months from and after the 22d day of July +last. + +A report made through the clerk of the court (communicated herewith) shows +the condition of the calendar on the 1st of November last and the large +amount of work which has been accomplished. One thousand three hundred and +eighty-two claims have been presented, of which 682 had been disposed of at +the date of the report. I am informed that 170 cases were decided during +the month of November. Arguments are being made and decisions given in the +remaining cases with all the dispatch consistent with the proper +consideration of the questions submitted. Many of these claims are in +behalf of mariners, or depend on the evidence of mariners, whose absence +has delayed the taking or the return of the necessary evidence. + +It is represented to me that it will be impracticable for the court to +finally dispose of all the cases before it within the present limit of its +duration. Justice to the parties claimant, who have been at large expense +in preparing their claims and obtaining the evidence in their support, +suggests a short extension, to enable the court to dispose of all of the +claims which have been presented. + +I recommend the legislation which may be deemed proper to enable the court +to complete the work before it. + +I recommend that some suitable provision be made, by the creation of a +special court or by conferring the necessary jurisdiction upon some +appropriate tribunal, for the consideration and determination of the claims +of aliens against the Government of the United States which have arisen +within some reasonable limitation of time, or which may hereafter arise, +excluding all claims barred by treaty provisions or otherwise. It has been +found impossible to give proper consideration to these claims by the +Executive Departments of the Government. Such a tribunal would afford an +opportunity to aliens other than British subjects to present their claims +on account of acts committed against their persons or property during the +rebellion, as also to those subjects of Great Britain whose claims, having +arisen subsequent to the 9th day of April, 1865, could not be presented to +the late commission organized pursuant to the provisions of the treaty of +Washington. + +The electric telegraph has become an essential and indispensable agent in +the transmission of business and social messages. Its operation on land, +and within the limit of particular states, is necessarily under the control +of the jurisdiction within which it operates. The lines on the high seas, +however, are not subject to the particular control of any one government. + +In 1869 a concession was granted by the French Government to a company +which proposed to lay a cable from the shores of France to the United +States. At that time there was a telegraphic connection between the United +States and the continent of Europe (through the possessions of Great +Britain at either end of the line), under the control of an association +which had, at large outlay of capital and at great risk, demonstrated the +practicability of maintaining such means of communication. The cost of +correspondence by this agency was great, possibly not too large at the time +for a proper remuneration for so hazardous and so costly an enterprise. It +was, however, a heavy charge upon a means of communication which the +progress in the social and commercial intercourse of the world found to be +a necessity, and the obtaining of this French concession showed that other +capital than that already invested was ready to enter into competition, +with assurance of adequate return for their outlay. Impressed with the +conviction that the interests, not only of the people of the United States, +but of the world at large, demanded, or would demand, the multiplication of +such means of communication between separated continents, I was desirous +that the proposed connection should be made; but certain provisions of this +concession were deemed by me to be objectionable, particularly one which +gave for a long term of years the exclusive right of telegraphic +communication by submarine cable between the shores of France and the +United States. I could not concede that any power should claim the right to +land a cable on the shores of the United States and at the same time deny +to the United States, or to its citizens or grantees, an equal fight to +land a cable on its shores. The right to control the conditions for the +laying of a cable within the jurisdictional waters of the United States, to +connect our shores with those of any foreign state, pertains exclusively to +the Government of the United States, under such limitations and conditions +as Congress may impose. In the absence of legislation by Congress I was +unwilling, on the one hand, to yield to a foreign state the right to say +that its grantees might land on our shores while it denied a similar right +to our people to land on its shores, and, on the other hand, I was +reluctant to deny to the great interests of the world and of civilization +the facilities of such communication as were proposed. I therefore withheld +any resistance to the landing of the cable on condition that the offensive +monopoly feature of the concession be abandoned, and that the right of any +cable which may be established by authority of this Government to land upon +French territory and to connect with French land lines and enjoy all the +necessary facilities or privileges incident to the use thereof upon as +favorable terms as any other company be conceded. As the result thereof the +company in question renounced the exclusive privilege, and the +representative of France was informed that, understanding this +relinquishment to be construed as granting the entire reciprocity and equal +facilities which had been demanded, the opposition to the landing of the +cable was withdrawn. The cable, under this French concession, was landed in +the month of July, 1869, and has been an efficient and valuable agent of +communication between this country and the other continent. It soon passed +under the control, however, of those who had the management of the cable +connecting Great Britain with this continent, and thus whatever benefit to +the public might have ensued from competition between the two lines was +lost, leaving only the greater facilities of an additional line and the +additional security in case of accident to one of them. But these increased +facilities and this additional security, together with the control of the +combined capital of the two companies, gave also greater power to prevent +the future construction of other lines and to limit the control of +telegraphic communication between the two continents to those possessing +the lines already laid. Within a few months past a cable has been laid, +known as the United States Direct Cable Company, connecting the United +States directly with Great Britain. As soon as this cable was reported to +be laid and in working order the rates of the then existing consolidated +companies were greatly reduced. Soon, however, a break was announced in +this new cable, and immediately the rates of the other line, which had been +reduced, were again raised. This cable being now repaired, the rates appear +not to be reduced by either line from those formerly charged by the +consolidated companies. + +There is reason to believe that large amounts of capital, both at home and +abroad, are ready to seek profitable investment in the advancement of this +useful and most civilizing means of intercourse and correspondence. They +await, however, the assurance of the means and conditions on which they may +safely be made tributary to the general good. + +As these cable telegraph lines connect separate states, there are questions +as to their organization and control which probably can be best, if not +solely, settled by conventions between the respective states. In the +absence, however, of international conventions on the subject, municipal +legislation may secure many points which appear to me important, if not +indispensable for the protection of the public against the extortions which +may result from a monopoly of the right of operating cable telegrams or +from a combination between several lines: + +I. No line should be allowed to land on the shores of the United States +under the concession from another power which does not admit the right of +any other line or lines, formed in the United States, to land and freely +connect with and operate through its land lines. + +II. No line should be allowed to land on the shores of the United States +which is not, by treaty stipulation with the government from whose shores +it proceeds, or by prohibition in its charter, or otherwise to the +satisfaction of this Government, prohibited from consolidating or +amalgamating with any other cable telegraph line, or combining therewith +for the purpose of regulating and maintaining the cost of telegraphing. + +III. All lines should be bound to give precedence in the transmission of +the official messages of the governments of the two countries between which +it may be laid. + +IV. A power should be reserved to the two governments, either conjointly or +to each, as regards the messages dispatched from its shores, to fix a limit +to the charges to be demanded for the transmission of messages. + +I present this subject to the earnest consideration of Congress. + +In the meantime, and unless Congress otherwise direct, I shall not oppose +the landing of any telegraphic cable which complies with and assents to the +points above enumerated, but will feel it my duty to prevent the landing of +any which does not conform to the first and second points as stated, and +which will not stipulate to concede to this Government the precedence in +the transmission of its official messages and will not enter into a +satisfactory arrangement with regard to its charges. + +Among the pressing and important subjects to which, in my opinion, the +attention of Congress should be directed are those relating to fraudulent +naturalization and expatriation. + +The United States, with great liberality, offers its citizenship to all who +in good faith comply with the requirements of law. These requirements are +as simple and upon as favorable terms to the emigrant as the high privilege +to which he is admitted can or should permit. I do not propose any +additional requirements to those which the law now demands; but the very +simplicity and the want of unnecessary formality in our law have made +fraudulent naturalization not infrequent, to the discredit and injury of +all honest citizens, whether native or naturalized. Cases of this character +are continually being brought to the notice of the Government by our +representatives abroad, and also those of persons resident in other +countries, most frequently those who, if they have remained in this country +long enough to entitle them to become naturalized, have generally not much +overpassed that period, and have returned to the country of their origin, +where they reside, avoiding all duties to the United States by their +absence, and claiming to be exempt from all duties to the country of their +nativity and of their residence by reason of their alleged naturalization. +It is due to this Government itself and to the great mass of the +naturalized citizens who entirely, both in name and in fact, become +citizens of the United States that the high privilege of citizenship of the +United States should not be held by fraud or in derogation of the laws and +of the good name of every honest citizen. On many occasions it has been +brought to the knowledge of the Government that certificates of +naturalization are held and protection or interference claimed by parties +who admit that not only they were not within the United States at the time +of the pretended naturalization, but that they have never resided in the +United States; in others the certificate and record of the court show on +their face that the person claiming to be naturalized had not resided the +required time in the United States; in others it is admitted upon +examination that the requirements of law have not been complied with; in +some cases, even, such certificates have been matter of purchase. These are +not isolated cases, arising at rare intervals, but of common occurrence, +and which are reported from all quarters of the globe. Such occurrences can +not, and do not, fail to reflect upon the Government and injure all honest +citizens. Such a fraud being discovered, however, there is no practicable +means within the control of the Government by which the record of +naturalization can be vacated; and should the certificate be taken up, as +it usually is, by the diplomatic and consular representatives of the +Government to whom it may have been presented, there is nothing to prevent +the person claiming to have been naturalized from obtaining a new +certificate from the court in place of that which has been taken from him. + +The evil has become so great and of such frequent occurrence that I can not +too earnestly recommend that some effective measures be adopted to provide +a proper remedy and means for the vacating of any record thus fraudulently +made, and of punishing the guilty parties to the transaction. + +In this connection I refer also to the question of expatriation and the +election of nationality. + +The United States was foremost in upholding the right of expatriation, and +was principally instrumental in overthrowing the doctrine of perpetual +allegiance. Congress has declared the right of expatriation to be a natural +and inherent right of all people; but while many other nations have enacted +laws providing what formalities shall be necessary to work a change of +allegiance, the United States has enacted no provisions of law and has in +no respect marked out how and when expatriation may be accomplished by its +citizens. Instances are brought to the attention of the Government where +citizens of the United States, either naturalized or native born, have +formally become citizens or subjects of foreign powers, but who, +nevertheless, in the absence of any provisions of legislation on this +question, when involved in difficulties or when it seems to be their +interest, claim to be citizens of the United States and demand the +intervention of a Government which they have long since abandoned and to +which for years they have rendered no service nor held themselves in any +way amenable. + +In other cases naturalized citizens, immediately after naturalization, have +returned to their native country; have become engaged in business; have +accepted offices or pursuits inconsistent with American citizenship, and +evidence no intent to return to the United States until called upon to +discharge some duty to the country where they are residing, when at once +they assert their citizenship and call upon the representatives of the +Government to aid them in their unjust pretensions. It is but justice to +all bona fide citizens that no doubt should exist on such questions, and +that Congress should determine by enactment of law how expatriation may be +accomplished and change of citizenship be established. + +I also invite your attention to the necessity of regulating by law the +status of American women who may marry foreigners, and of defining more +fully that of children born in a foreign country of American parents who +may reside abroad; and also of some further provision regulating or giving +legal effect to marriages of American citizens contracted in foreign +countries. The correspondence submitted herewith shows a few of the +constantly occurring questions on these points presented to the +consideration of the Government. There are few subjects to engage the +attention of Congress on which more delicate relations or more important +interests are dependent. + +In the month of July last the building erected for the Department of State +was taken possession of and occupied by that Department. I am happy to +announce that the archives and valuable papers of the Government in the +custody of that Department are now safely deposited and properly cared +for. + +The report of the Secretary of the Treasury shows the receipts from customs +for the fiscal year ending June 30, 1874, to have been $163,103,833.69, and +for the fiscal year ending June 30, 1875, to have been $157,267,722.35, a +decrease for the last fiscal year of $5,936,111.34. Receipts from internal +revenue for the year ending the 30th of June, 1874, were $102,409,784.90, +and for the year ending June 30, 1875, $110,007,493.58; increase, +$7,597,708.68. + +The report also shows a complete history of the workings of the Department +for the last year, and contains recommendations for reforms and for +legislation which I concur in, but can not comment on so fully as I should +like to do if space would permit, but will confine myself to a few +suggestions which I look upon as vital to the best interests of the whole +people--coming within the purview of "Treasury;" I mean specie resumption. +Too much stress can not be laid upon this question, and I hope Congress may +be induced, at the earliest day practicable, to insure the consummation of +the act of the last Congress, at its last session, to bring about specie +resumption "on and after the 1st of January, 1879," at furthest. It would +be a great blessing if this could be consummated even at an earlier day. + +Nothing seems to me more certain than that a full, healthy, and permanent +reaction can not take place in favor of the industries and financial +welfare of the country until we return to a measure of values recognized +throughout the civilized world. While we use a currency not equivalent to +this standard the world's recognized standard, specie, becomes a commodity +like the products of the soil, the surplus seeking a market wherever there +is a demand for it. + +Under our present system we should want none, nor would we have any, were +it not that customs dues must be paid in coin and because of the pledge to +pay interest on the public debt in coin. The yield of precious metals would +flow out for the purchase of foreign productions and the United States +"hewers of wood and drawers of water," because of wiser legislation on the +subject of finance by the nations with whom we have dealings. I am not +prepared to say that I can suggest the best legislation to secure the end +most heartily recommended. It will be a source of great gratification to me +to be able to approve any measure of Congress looking effectively toward +securing "resumption." + +Unlimited inflation would probably bring about specie payments more +speedily than any legislation looking to redemption of the legal-tenders in +coin; but it would be at the expense of honor. The legal-tenders would have +no value beyond settling present liabilities, or, properly speaking, +repudiating them. They would buy nothing after debts were all settled. + +There are a few measures which seem to me important in this connection and +which I commend to your earnest consideration: + +A repeal of so much of the legal-tender act as makes these notes receivable +for debts contracted after a date to be fixed in the act itself, say not +later than the 1st of January, 1877. We should then have quotations at real +values, not fictitious ones. Gold would no longer be at a premium, but +currency at a discount. A healthy reaction would set in at once, and with +it a desire to make the currency equal to what it purports to be. The +merchants, manufacturers, and tradesmen of every calling could do business +on a fair margin of profit, the money to be received having an unvarying +value. Laborers and all classes who work for stipulated pay or salary would +receive more for their income, because extra profits would no longer be +charged by the capitalists to compensate for the risk of a downward +fluctuation in the value of the currency. + +Second. That the Secretary of the Treasury be authorized to redeem, say, +not to exceed $2,000,000 monthly of legal-tender notes, by issuing in their +stead a long bond, bearing interest at the rate of 3.65 per cent per annum, +of denominations ranging from $50 up to $1,000 each. This would in time +reduce the legal-tender notes to a volume that could be kept afloat without +demanding redemption in large sums suddenly. + +Third. That additional power be given to the Secretary of the Treasury to +accumulate gold for final redemption, either by increasing revenue, +curtailing expenses, or both (it is preferable to do both); and I recommend +that reduction of expenditures be made wherever it can be done without +impairing Government obligations or crippling the due execution thereof. +One measure for increasing the revenue--and the only one I think of--is the +restoration of the duty on tea and coffee. These duties would add probably +$18,000,000 to the present amount received from imports, and would in no +way increase the prices paid for those articles by the consumers. + +These articles are the products of countries collecting revenue from +exports, and as we, the largest consumers, reduce the duties they +proportionately increase them. With this addition to the revenue, many +duties now collected, and which give but an insignificant return for the +cost of collection, might be remitted, and to the direct advantage of +consumers at home. + +I would mention those articles which enter into manufactures of all sorts. +All duty paid upon such articles goes directly to the cost of the article +when manufactured here, and must be paid for by the consumers. These duties +not only come from the consumers at home, but act as a protection to +foreign manufacturers of the same completed articles in our own and distant +markets. + +I will suggest or mention another subject bearing upon the problem of "how +to enable the Secretary of the Treasury to accumulate balances." It is to +devise some better method of verifying claims against the Government than +at present exists through the Court of Claims, especially those claims +growing out of the late war. Nothing is more certain than that a very large +percentage of the amounts passed and paid are either wholly fraudulent or +are far in excess of the real losses sustained. The large amount of losses +proven--on good testimony according to existing laws, by affidavits of +fictitious or unscrupulous persons--to have been sustained on small farms +and plantations are not only far beyond the possible yield of those places +for any one year, but, as everyone knows who has had experience in tilling +the soil and who has visited the scenes of these spoliations, are in many +instances more than the individual claimants were ever worth, including +their personal and real estate. + +The report of the Attorney-General, which will be submitted to Congress at +an early day, will contain a detailed history of awards made and of claim +pending of the class here referred to. + +The report of the Secretary of War, accompanying this message, gives a +detailed account of Army operations for the year just passed, expenses for +maintenance, etc., with recommendations for legislation to which I +respectfully invite your attention. To some of these I invite special +attention: + +First. The necessity of making $300,000 of the appropriation for the +Subsistence Department available before the beginning of the next fiscal +year. Without this provision troops at points distant from supply +production must either go without food or existing laws must be violated. +It is not attended with cost to the Treasury. + +Second. His recommendation for the enactment of a system of annuities for +the families of deceased officers by voluntary deductions from the monthly +pay of officers. This again is not attended with burden upon the Treasury, +and would for the future relieve much distress which every old army officer +has witnessed in the past--of officers dying suddenly or being killed, +leaving families without even the means of reaching their friends, if +fortunate enough to have friends to aid them. + +Third. The repeal of the law abolishing mileage, and a return to the old +system. + +Fourth. The trial with torpedoes under the Corps of Engineers, and +appropriation for the same. Should war ever occur between the United States +and any maritime power, torpedoes will be among if not the most effective +and cheapest auxiliary for the defense of harbors, and also in aggressive +operations, that we can have. Hence it is advisable to learn by experiment +their best construction and application, as well as effect. + +Fifth. A permanent organization for the Signal-Service Corps. This service +has now become a necessity of peace as well as war, under the advancement +made by the present able management. + +Sixth. A renewal of the appropriation for compiling the official records of +the war, etc. + +The condition of our Navy at this time is a subject of satisfaction. It +does not contain, it is true, any of the powerful cruising ironclads which +make so much of the maritime strength of some other nations, but neither +our continental situation nor our foreign policy requires that we should +have a large number of ships of this character, while this situation and +the nature of our ports combine to make those of other nations little +dangerous to us under any circumstances. + +Our Navy does contain, however, a considerable number of ironclads of the +monitor class, which, though not properly cruisers, are powerful and +effective for harbor defense and for operations near our own shores. Of +these all the single-turreted ones, fifteen in number, have been +substantially rebuilt, their rotten wooden beams replaced with iron, their +hulls strengthened, and their engines and machinery thoroughly repaired, so +that they are now in the most efficient condition and ready for sea as soon +as they can be manned and put in commission. + +The five double-turreted ironclads belonging to our Navy, by far the most +powerful of our ships for fighting purposes, are also in hand undergoing +complete repairs, and could be ready for sea in periods varying from four +to six months. With these completed according to the present design and our +two iron torpedo boats now ready, our ironclad fleet will be, for the +purposes of defense at home, equal to any force that can readily be brought +against it. + +Of our wooden navy also cruisers of various sizes, to the number of about +forty, including those now in commission, are in the Atlantic, and could be +ready for duty as fast as men could be enlisted for those not already in +commission. Of these, one-third are in effect new ships, and though some of +the remainder need considerable repairs to their boilers and machinery, +they all are, or can readily be made, effective. + +This constitutes a fleet of more than fifty war ships, of which fifteen are +ironclad, now in hand on the Atlantic coast. The Navy has been brought to +this condition by a judicious and practical application of what could be +spared from the current appropriations of the last few years and from that +made to meet the possible emergency of two years ago. It has been done +quietly, without proclamation or display, and though it has necessarily +straitened the Department in its ordinary expenditure, and, as far as the +ironclads are concerned, has added nothing to the cruising force of the +Navy, yet the result is not the less satisfactory because it is to be found +in a great increase of real rather than apparent force. The expenses +incurred in the maintenance of an effective naval force in all its branches +are necessarily large, but such force is essential to our position, +relations, and character, and affects seriously the weight of our +principles and policy throughout the whole sphere of national +responsibilities. + +The estimates for the regular support of this branch of the service for the +next year amount to a little less in the aggregate than those made for the +current year; but some additional appropriations are asked for objects not +included in the ordinary maintenance of the Navy, but believed to be of +pressing importance at this time. It would, in my opinion, be wise at once +to afford sufficient means for the immediate completion of the five +double-turreted monitors now undergoing repairs, which must otherwise +advance slowly, and only as money can be spared from current expenses. +Supplemented by these, our Navy, armed with the destructive weapons of +modern warfare, manned by our seamen, and in charge of our instructed +officers, will present a force powerful for the home purposes of a +responsible though peaceful nation. + +The report of the Postmaster-General herewith transmitted gives a full +history of the workings of the Department for the year just past. It will +be observed that the deficiency to be supplied from the General Treasury is +increased over the amount required for the preceding year. In a country so +vast in area as the United States, with large portions sparsely settled, it +must be expected that this important service will be more or less a burden +upon the Treasury for many years to come. But there is no branch of the +public service which interests the whole people more than that of cheap and +rapid transmission of the mails to every inhabited part of our territory. +Next to the free school, the post-office is the great educator of the +people, and it may well receive the support of the General Government. + +The subsidy of $150,000 per annum given to vessels of the United States for +carrying the mails between New York and Rio de Janeiro having ceased on the +30th day of September last, we are without direct mail facilities with the +South American States. This is greatly to be regretted, and I do not +hesitate to recommend the authorization of a renewal of that contract, and +also that the service may be increased from monthly to semi-monthly trips. +The commercial advantages to be gained by a direct line of American +steamers to the South American States will far outweigh the expense of the +service. + +By act of Congress approved March 3, 1875, almost all matter, whether +properly mail matter or not, may be sent any distance through the mails, in +packages not exceeding 4 pounds in weight, for the sum of 16 cents per +pound. So far as the transmission of real mail matter goes, this would seem +entirely proper; but I suggest that the law be so amended as to exclude +from the mails merchandise of all descriptions, and limit this +transportation to articles enumerated, and which may be classed as mail +matter proper. + +The discovery of gold in the Black Hills, a portion of the Sioux +Reservation, has had the effect to induce a large emigration of miners to +that point. Thus far the effort to protect the treaty rights of the Indians +to that section has been successful, but the next year will certainly +witness a large increase of such emigration. The negotiations for the +relinquishment of the gold fields having failed, it will be necessary for +Congress to adopt some measures to relieve the embarrassment growing out of +the causes named. The Secretary of the Interior suggests that the supplies +now appropriated for the sustenance of that people, being no longer +obligatory under the treaty of 1868, but simply a gratuity, may be issued +or withheld at his discretion. + +The condition of the Indian Territory, to which I have referred in several +of my former annual messages, remains practically unchanged. The Secretary +of the Interior has taken measures to obtain a full report of the condition +of that Territory, and will make it the subject of a special report at an +early day. It may then be necessary to make some further recommendation in +regard to legislation for the government of that Territory. + +The steady growth and increase of the business of the Patent Office +indicates in some measure the progress of the industrial activity of the +country. The receipts of the office are in excess of its expenditures, and +the office generally is in a prosperous and satisfactory condition. + +The report of the General Land Office shows that there were 2,459,601 acres +less disposed of during this than during the last year. More than one-half +of this decrease was in lands disposed of under the homestead and +timber-culture laws. The cause of this decrease is supposed to be found in +the grasshopper scourge and the droughts which prevailed so extensively in +some of the frontier States and Territories during that time as to +discourage and deter entries by actual settlers. The cash receipts were +less by $690,322.23 than during the preceding year. + +The entire surveyed area of the public domain is 680,253,094 acres, of +which 26,077,531 acres were surveyed during the past year, leaving +1,154,471,762 acres still unsurveyed. + +The report of the Commissioner presents many interesting suggestions in +regard to the management and disposition of the public domain and the +modification of existing laws, the apparent importance of which should +insure for them the careful consideration of Congress. + +The number of pensioners still continues to decrease, the highest number +having been reached during the year ending June 30, 1873. During the last +year 11,557 names were added to the rolls, and 12,977 were dropped +therefrom, showing a net decrease of 1,420. But while the number of +pensioners has decreased, the annual amount due on the pension rolls has +increased $44,733.13. This is caused by the greatly increased average rate +of pensions, which, by the liberal legislation of Congress, has increased +from $90.26 in 1872 to $103.91 in 1875 to each invalid pensioner, an +increase in the average rate of 15 per cent in the three years. During the +year ending June 30, 1875, there was paid on account of pensions, including +the expenses of disbursement, $29,683,116, being $910,632 less than was +paid the preceding year. This reduction in amount of expenditures was +produced by the decrease in the amount of arrearages due on allowed claims +and on pensions the rate of which was increased by the legislation of the +preceding session of Congress. At the close of the last fiscal year there +were on the pension rolls 234,821 persons, of whom 210,363 were army +pensioners, 105,478 being invalids and 104,885 widows and dependent +relatives; 3,420 were navy pensioners, of whom 1,636 were invalids and +1,784 widows and dependent relatives; 21,038 were pensioners of the War of +1812, 15,875 of whom were survivors and 5,163 were widows. + +It is estimated that $29,535,000 will be required for the payment of +pensions for the next fiscal year, an amount $965,000 less than the +estimate for the present year. + +The geological explorations have been prosecuted with energy during the +year, covering an area of about 40,000 square miles in the Territories of +Colorado, Utah, and New Mexico, developing the agricultural and mineral +resources and furnishing interesting scientific and topographical details +of that region. + +The method for the treatment of the Indians adopted at the beginning of my +first term has been steadily pursued, and with satisfactory and encouraging +results. It has been productive of evident improvement in the condition of +that race, and will be continued, with only such modifications as further +experience may indicate to be necessary. + +The board heretofore appointed to take charge of the articles and materials +pertaining to the War, the Navy, the Treasury, the Interior, and the +Post-Office Departments, and the Department of Agriculture, the Smithsonian +Institution, and the Commission of Food Fishes, to be contributed, under +the legislation of last session, to the international exhibition to be held +at Philadelphia during the centennial year 1876, has been diligent in the +discharge of the duties which have devolved upon it; and the preparations +so far made with the means at command give assurance that the governmental +contribution will be made one of the marked characteristics of the +exhibition. The board has observed commendable economy in the matter of the +erection of a building for the governmental exhibit, the expense of which +it is estimated will not exceed, say, $80,000. This amount has been +withdrawn, under the law, from the appropriations of five of the principal +Departments, which leaves some of those Departments without sufficient +means to render their respective practical exhibits complete and +satisfactory. The exhibition being an international one, and the Government +being a voluntary contributor, it is my opinion that its contribution +should be of a character, in quality and extent, to sustain the dignity and +credit of so distinguished a contributor. The advantages to the country of +a creditable display are, in an international point of view, of the first +importance, while an indifferent or uncreditable participation by the +Government would be humiliating to the patriotic feelings of our people +themselves. I commend the estimates of the board for the necessary +additional appropriations to the favorable consideration of Congress. + +The powers of Europe almost without exception, many of the South American +States, and even the more distant Eastern powers have manifested their +friendly sentiments toward the United States and the interest of the world +in our progress by taking steps to join with us in celebrating the +centennial of the nation, and I strongly recommend that a more national +importance be given to this exhibition by such legislation and by such +appropriation as will insure its success. Its value in bringing to our +shores innumerable useful works of art and skill, the commingling of the +citizens of foreign countries and our own, and the interchange of ideas and +manufactures will far exceed any pecuniary outlay we may make. + +I transmit herewith the report of the Commissioner of Agriculture, together +with the reports of the Commissioners, the board of audit, and the board of +health of the District of Columbia, to all of which I invite your +attention. + +The Bureau of Agriculture has accomplished much in disseminating useful +knowledge to the agriculturist, and also in introducing new and useful +productions adapted to our soil and climate, and is worthy of the continued +encouragement of the Government. + +The report of the Commissioner of Education, which accompanies the report +of the Secretary of the Interior, shows a gratifying progress in +educational matters. + +In nearly every annual message that I have had the honor of transmitting to +Congress I have called attention to the anomalous, not to say scandalous, +condition of affairs existing in the Territory of Utah, and have asked for +definite legislation to correct it. That polygamy should exist in a free, +enlightened, and Christian country, without the power to punish so flagrant +a crime against decency and morality, seems preposterous. True, there is no +law to sustain this unnatural vice; but what is needed is a law to punish +it as a crime, and at the same time to fix the status of the innocent +children, the offspring of this system, and of the possibly innocent plural +wives. But as an institution polygamy should be banished from the land. + +While this is being done I invite the attention of Congress to another, +though perhaps no less an evil--the importation of Chinese women, but few +of whom are brought to our shores to pursue honorable or useful +occupations. + +Observations while visiting the Territories of Wyoming, Utah, and Colorado +during the past autumn convinced me that existing laws regulating the +disposition of public lands, timber, etc., and probably the mining laws +themselves, are very defective and should be carefully amended, and at an +early day. Territory where cultivation of the soil can only be followed by +irrigation, and where irrigation is not practicable the lands can only be +used as pasturage, and this only where stock can reach water (to quench its +thirst), can not be governed by the same laws as to entries as lands every +acre of which is an independent estate by itself. + +Land must be held in larger quantities to justify the expense of conducting +water upon it to make it fruitful, or to justify utilizing it as pasturage. +The timber in most of the Territories is principally confined to the +mountain regions, which are held for entry in small quantities only, and as +mineral lands. The timber is the property of the United States, for the +disposal of which there is now no adequate law. The settler must become a +consumer of this timber, whether he lives upon the plain or engages in +working the mines. Hence every man becomes either a trespasser himself or +knowingly a patron of trespassers. + +My opportunities for observation were not sufficient to justify me in +recommending specific legislation on these subjects, but I do recommend +that a joint committee of the two Houses of Congress, sufficiently large to +be divided into subcommittees, be organized to visit all the mining States +and Territories during the coming summer, and that the committee shall +report to Congress at the next session such laws or amendments to laws as +it may deem necessary to secure the best interests of the Government and +the people of these Territories, who are doing so much for their +development. + +I am sure the citizens occupying the territory described do not wish to be +trespassers, nor will they be if legal ways are provided for them to become +owners of these actual necessities of their position. + +As this will be the last annual message which I shall have the honor of +transmitting to Congress before my successor is chosen, I will repeat or +recapitulate the questions which I deem of vital importance which may be +legislated upon and settled at this session: + +First. That the States shall be required to afford the opportunity of a +good common-school education to every child within their limits. + +Second. No sectarian tenets shall ever be taught in any school supported in +whole or in part by the State, nation, or by the proceeds of any tax levied +upon any community. Make education compulsory so far as to deprive all +persons who can not read and write from becoming voters after the year +1890, disfranchising none, however, on grounds of illiteracy who may be +voters at the time this amendment takes effect. + +Third. Declare church and state forever separate and distinct, but each +free within their proper spheres; and that all church property shall bear +its own proportion of taxation. + +Fourth. Drive out licensed immorality, such as polygamy and the importation +of women for illegitimate purposes. To recur again to the centennial year, +it would seem as though now, as we are about to begin the second century of +our national existence, would be a most fitting time for these reforms. + +Fifth. Enact such laws as will insure a speedy return to a sound currency, +such as will command the respect of the world. + +Believing that these views will commend themselves to the great majority of +the right-thinking and patriotic citizens of the United States, I submit +the rest to Congress. + +U. S. GRANT + +*** + +State of the Union Address +Ulysses S. Grant +December 5, 1876 + +To the Senate and House of Representatives: + +In submitting my eighth and last annual message to Congress it seems proper +that I should refer to and in some degree recapitulate the events and +official acts of the past eight years. + +It was my fortune, or misfortune, to be called to the office of Chief +Executive without any previous political training. From the age of 17 I had +never even witnessed the excitement attending a Presidential campaign but +twice antecedent to my own candidacy, and at but one of them was I eligible +as a voter. + +Under such circumstances it is but reasonable to suppose that errors of +judgment must have occurred. Even had they not, differences of opinion +between the Executive, bound by an oath to the strict performance of his +duties, and writers and debaters must have arisen. It is not necessarily +evidence of blunder on the part of the Executive because there are these +differences of views. Mistakes have been made, as all can see and I admit, +but it seems to me oftener in the selections made of the assistants +appointed to aid in carrying out the various duties of administering the +Government--in nearly every case selected without a personal acquaintance +with the appointee, but upon recommendations of the representatives chosen +directly by the people. It is impossible, where so many trusts are to be +allotted, that the right parties should be chosen in every instance. +History shows that no Administration from the time of Washington to the +present has been free from these mistakes. But I leave comparisons to +history, claiming only that I have acted in every instance from a +conscientious desire to do what was right, constitutional, within the law, +and for the very best interests of the whole people. Failures have been +errors of judgment, not of intent. + +My civil career commenced, too, at a most critical and difficult time. Less +than four years before, the country had emerged from a conflict such as no +other nation had ever survived. Nearly one-half of the States had revolted +against the Government, and of those remaining faithful to the Union a +large percentage of the population sympathized with the rebellion and made +an "enemy in the rear" almost as dangerous as the more honorable enemy in +the front. The latter committed errors of judgment, but they maintained +them openly and courageously; the former received the protection of the +Government they would see destroyed, and reaped all the pecuniary advantage +to be gained out of the then existing state of affairs, many of them by +obtaining contracts and by swindling the Government in the delivery of +their goods. + +Immediately on the cessation of hostilities the then noble President, who +had carried the country so far through its perils, fell a martyr to his +patriotism at the hands of an assassin. + +The intervening time to my first inauguration was filled up with wranglings +between Congress and the new Executive as to the best mode of +"reconstruction," or, to speak plainly, as to whether the control of the +Government should be thrown immediately into the hands of those who had so +recently and persistently tried to destroy it, or whether the victors +should continue to have an equal voice with them in this control. +Reconstruction, as finally agreed upon, means this and only this, except +that the late slave was enfranchised, giving an increase, as was supposed, +to the Union-loving and Union-supporting votes. If free in the full sense +of the word, they would not disappoint this expectation. Hence at the +beginning of my first Administration the work of reconstruction, much +embarrassed by the long delay, virtually commenced. It was the work of the +legislative branch of the Government. My province was wholly in approving +their acts, which I did most heartily, urging the legislatures of States +that had not yet done so to ratify the fifteenth amendment to the +Constitution. The country was laboring under an enormous debt, contracted +in the suppression of rebellion, and taxation was so oppressive as to +discourage production. Another danger also threatened us--a foreign war. +The last difficulty had to be adjusted and was adjusted without a war and +in a manner highly honorable to all parties concerned. Taxes have been +reduced within the last seven years nearly $300,000,000, and the national +debt has been reduced in the same time over $435,000,000. By refunding the +6 per cent bonded debt for bonds bearing 5 and 4 1/2 per cent interest, +respectively, the annual interest has been reduced from over $130,000,000 +in 1869 to but little over $100,000,000 in 1876. The balance of trade has +been changed from over $130,000,000 against the United States in 1869 to +more than $120,000,000 in our favor in 1876. + +It is confidently believed that the balance of trade in favor of the United +States will increase, not diminish, and that the pledge of Congress to +resume specie payments in 1879 will be easily accomplished, even in the +absence of much-desired further legislation on the subject. + +A policy has been adopted toward the Indian tribes inhabiting a large +portion of the territory of the United States which has been humane and has +substantially ended Indian hostilities in the whole land except in a +portion of Nebraska, and Dakota, Wyoming, and Montana Territories--the +Black Hills region and approaches thereto. Hostilities there have grown out +of the avarice of the white man, who has violated our treaty stipulations +in his search for gold. The question might be asked why the Government has +not enforced obedience to the terms of the treaty prohibiting the +occupation of the Black Hills region by whites. The answer is simple: The +first immigrants to the Black Hills were removed by troops, but rumors of +rich discoveries of gold took into that region increased numbers. Gold has +actually been found in paying quantity, and an effort to remove the miners +would only result in the desertion of the bulk of the troops that might be +sent there to remove them. All difficulty in this matter has, however, been +removed--subject to the approval of Congress--by a treaty ceding the Black +Hills and approaches to settlement by citizens. + +The subject of Indian policy and treatment is so fully set forth by the +Secretary of the Interior and the Commissioner of Indian Affairs, and my +views so fully expressed therein, that I refer to their reports and +recommendations as my own. + +The relations of the United States with foreign powers continue on a +friendly footing. + +Questions have arisen from time to time in the foreign relations of the +Government, but the United States have been happily free during the past +year from the complications and embarrassments which have surrounded some +of the foreign powers. + +The diplomatic correspondence submitted herewith contains information as to +certain of the matters which have occupied the Government. + +The cordiality which attends our relations with the powers of the earth has +been plainly shown by the general participation of foreign nations in the +exhibition which has just closed and by the exertions made by distant +powers to show their interest in and friendly feelings toward the United +States in the commemoration of the centennial of the nation. The Government +and people of the United States have not only fully appreciated this +exhibition of kindly feeling, but it may be justly and fairly expected that +no small benefits will result both to ourselves and other nations from a +better acquaintance, and a better appreciation of our mutual advantages and +mutual wants. + +Congress at its last session saw fit to reduce the amount usually +appropriated for foreign intercourse by withholding appropriations for +representatives of the United States in certain foreign countries and for +certain consular officers, and by reducing the amounts usually appropriated +for certain other diplomatic posts, and thus necessitating a change in the +grade of the representatives. For these reasons, immediately upon the +passage of the bill making appropriations for the diplomatic and consular +service for the present fiscal year, instructions were issued to the +representatives of the United States at Bolivia, Ecuador, and Colombia, and +to the consular officers for whom no appropriation had been made, to close +their respective legations and consulates and cease from the performance of +their duties; and in like manner steps were immediately taken to substitute +charge's d'affaires for ministers resident in Portugal, Denmark, Greece, +Switzerland, and Paraguay. + +While thoroughly impressed with the wisdom of sound economy in the foreign +service, as in other branches of the Government, I can not escape the +conclusion that in some instances the withholding of appropriations will +prove an expensive economy, and that the small retrenchment secured by a +change of grade in certain diplomatic posts is not an adequate +consideration for the loss of influence and importance which will attend +our foreign representatives under this reduction. I am of the opinion that +a reexamination of the subject will cause a change in some instances in the +conclusions reached on these subjects at the last session of Congress. + +The Court of Commissioners of Alabama Claims, whose functions were +continued by an act of the last session of Congress until the 1st day of +January, 1877, has carried on its labors with diligence and general +satisfaction. By a report from the clerk of the court, transmitted +herewith, bearing date November 14, 1876, it appears that within the time +now allowed by law the court will have disposed of all the claims presented +for adjudication. This report also contains a statement of the general +results of the labors of the court to the date thereof. It is a cause of +satisfaction that the method adopted for the satisfaction of the classes of +claims submitted to the court, which are of long standing and justly +entitled to early consideration, should have proved successful and +acceptable. + +It is with satisfaction that I am enabled to state that the work of the +joint commission for determining the boundary line between the United +States and British possessions from the northwest angle of the Lake of the +Woods to the Rocky Mountains, commenced in 1872, has been completed. The +final agreements of the commissioners, with the maps, have been duly +signed, and the work of the commission is complete. + +The fixing of the boundary upon the Pacific coast by the protocol of March +10, 1873, pursuant to the award of the Emperor of Germany by Article XXXIV +of the treaty of Washington, with the termination of the work of this +commission, adjusts and fixes the entire boundary between the United States +and the British possessions, except as to the portion of territory ceded by +Russia to the United States under the treaty of 1867. The work intrusted to +the commissioner and the officers of the Army attached to the commission +has been well and satisfactorily performed. The original of the final +agreement of the commissioners, signed upon the 29th of May, 1876, with the +original official "lists of astronomical stations observed," the original +official "list of monuments marking the international boundary line," and +the maps, records, and general reports relating to the commission, have +been deposited in the Department of State. The official report of the +commissioner on the part of the United States, with the report of the chief +astronomer of the United States, will be submitted to Congress within a +short time. + +I reserve for a separate communication to Congress a statement of the +condition of the questions which lately arose with Great Britain respecting +the surrender of fugitive criminals under the treaty of 1842. + +The Ottoman Government gave notice, under date of January 15, 1874, of its +desire to terminate the treaty of 1862, concerning commerce and navigation, +pursuant to the provisions of the twenty-second article thereof. Under this +notice the treaty terminated upon the 5th day of June, 1876. That +Government has invited negotiations toward the conclusion of a new treaty. + +By the act of Congress of March 23, 1874, the President was authorized, +when he should receive satisfactory information that the Ottoman Government +or that of Egypt had organized new tribunals likely to secure to citizens +of the United States the same impartial justice enjoyed under the exercise +of judicial functions by diplomatic and consular officers of the United +States, to suspend the operation of the act of June 22, 1860, and to accept +for citizens of the United States the jurisdiction of the new tribunals. +Satisfactory information having been received of the organization of such +new tribunals in Egypt, I caused a proclamation to be issued upon the 27th +of March last, suspending the operation of the act of June 22, 1860, in +Egypt, according to the provisions of the act. A copy of the proclamation +accompanies this message. The United States has united with the other +powers in the organization of these courts. It is hoped that the +jurisdictional questions which have arisen may be readily adjusted, and +that this advance in judicial reform may be hindered by no obstacles. + +The necessary legislation to carry into effect the convention respecting +commercial reciprocity concluded with the Hawaiian Islands in 1875 having +been had, the proclamation to carry into effect the convention, as provided +by the act approved August 15, 1876, was duly issued upon the 9th day of +September last. A copy thereof accompanies this message. + +The commotions which have been prevalent in Mexico for some time past, and +which, unhappily, seem to be not yet wholly quieted, have led to complaints +of citizens of the United States of injuries by persons in authority. It is +hoped, however, that these will ultimately be adjusted to the satisfaction +of both Governments. The frontier of the United States in that quarter has +not been exempt from acts of violence by citizens of one Republic on those +of the other. The frequency of these is supposed to be increased and their +adjustment made more difficult by the considerable changes in the course of +the lower part of the Rio Grande River, which river is a part of the +boundary between the two countries. These changes have placed on either +side of that river portions of land which by existing conventions belong to +the jurisdiction of the Government on the opposite side of the river. The +subject of adjustment of this cause of difficulty is under consideration +between the two Republics. + +The Government of the United States of Colombia has paid the award in the +case of the steamer Montijo, seized by authorities of that Government some +years since, and the amount has been transferred to the claimants. + +It is with satisfaction that I am able to announce that the joint +commission for the adjustment of claims between the United States and +Mexico under the convention of 1868, the duration of which has been several +times extended, has brought its labors to a close. From the report of the +agent of the United States, which accompanies the papers transmitted +herewith, it will be seen that within the time limited by the commission +1,017 claims on the part of citizens of the United States against Mexico +were referred to the commission. Of these claims 831 were dismissed or +disallowed, and in 186 cases awards were made in favor of the claimants +against the Mexican Republic, amounting in the aggregate to $4,125,622.20. +Within the same period 998 claims on the part of citizens of the Mexican +Republic against the United States were referred to the commission. Of +these claims 831 were dismissed or disallowed, and in 167 cases awards were +made in favor of the claimants against the United States, amounting in the +aggregate to $150,498.41. + +By the terms of the convention the amount of these awards is to be deducted +from the amount awarded in favor of our citizens against Mexico, and the +balance only to be paid by Mexico to the United States, leaving the United +States to make provision for this proportion of the awards in favor of its +Own citizens. + +I invite your attention to the legislation which will be necessary to +provide for the payment. + +In this connection I am pleased to be able to express the acknowledgments +due to Sir Edward Thornton, the umpire of the commission, who has given to +the consideration of the large number of claims submitted to him much time, +unwearied patience, and that firmness and intelligence which are well known +to belong to the accomplished representative of Great Britain, and which +are likewise recognized by the representative in this country of the +Republic of Mexico. + +Monthly payments of a very small part of the amount due by the Government +of Venezuela to citizens of the United States on account of claims of the +latter against that Government continue to be made with reasonable +punctuality. That Government has proposed to change the system which it has +hitherto pursued in this respect by issuing bonds for part of the amount of +the several claims. The proposition, however, could not, it is supposed, +properly be accepted, at least without the consent of the holders of +certificates of the indebtedness of Venezuela. These are so much dispersed +that it would be difficult, if not impossible, to ascertain their +disposition on the subject. + +In former messages I have called the attention of Congress to the necessity +of legislation with regard to fraudulent naturalization and to the subject +of expatriation and the election of nationality. + +The numbers of persons of foreign birth seeking a home in the United +States, the ease and facility with which the honest emigrant may, after the +lapse of a reasonable time, become possessed of all the privileges of +citizenship of the United States, and the frequent occasions which induce +such adopted citizens to return to the country of their birth render the +subject of naturalization and the safeguards which experience has proved +necessary for the protection of the honest naturalized citizen of paramount +importance. The very simplicity in the requirements of law on this question +affords opportunity for fraud, and the want of uniformity in the +proceedings and records of the various courts and in the forms of the +certificates of naturalization issued affords a constant source of +difficulty. + +I suggest no additional requirements to the acquisition of citizenship +beyond those now existing, but I invite the earnest attention of Congress +to the necessity and wisdom of some provisions regarding uniformity in the +records and certificates, and providing against the frauds which frequently +take place and for the vacating of a record of naturalization obtained in +fraud. + +These provisions are needed in aid and for the protection of the honest +citizen of foreign birth, and for the want of which he is made to suffer +not infrequently. The United States has insisted upon the right of +expatriation, and has obtained, after a long struggle, an admission of the +principle contended for by acquiescence therein on the part of many foreign +powers and by the conclusion of treaties on that subject. It is, however, +but justice to the government to which such naturalized citizens have +formerly owed allegiance, as well as to the United States, that certain +fixed and definite rules should be adopted governing such cases and +providing how expatriation may be accomplished. + +While emigrants in large numbers become citizens of the United States, it +is also true that persons, both native born and naturalized, once citizens +of the United States, either by formal acts or as the effect of a series of +facts and circumstances, abandon their citizenship and cease to be entitled +to the protection of the United States, but continue on convenient +occasions to assert a claim to protection in the absence of provisions on +these questions. + +And in this connection I again invite your attention to the necessity of +legislation concerning the marriages of American citizens contracted +abroad, and concerning the status of American women who may marry +foreigners and of children born of American parents in a foreign country. + +The delicate and complicated questions continually occurring with reference +to naturalization, expatriation, and the status of such persons as I have +above referred to induce me to earnestly direct your attention again to +these subjects. + +In like manner I repeat my recommendation that some means be provided for +the hearing and determination of the just and subsisting claims of aliens +upon the Government of the United States within a reasonable limitation, +and of such as may hereafter arise. While by existing provisions of law the +Court of Claims may in certain cases be resorted to by an alien claimant, +the absence of any general provisions governing all such cases and the want +of a tribunal skilled in the disposition of such cases upon recognized +fixed and settled principles, either provides no remedy in many deserving +cases or compels a consideration of such claims by Congress or the +executive department of the Government. + +It is believed that other governments are in advance of the United States +upon this question, and that the practice now adopted is entirely +unsatisfactory. + +Congress, by an act approved the 3d day of March, 1875, authorized the +inhabitants of the Territory of Colorado to form a State government, with +the name of the State of Colorado, and therein provided for the admission +of said State, when formed, into the Union upon an equal footing with the +original States. + +A constitution having been adopted and ratified by the people of that +State, and the acting governor having certified to me the facts as provided +by said act, together with a copy of such constitution and ordinances as +provided for in the said act, and the provisions of the said act of +Congress having been duly complied with, I issued a proclamation upon the +1st of August, 1876, a copy of which is hereto annexed. + +The report of the Secretary of War shows that the Army has been actively +employed during the year in subduing, at the request of the Indian Bureau, +certain wild bands of the Sioux Indian Nation and in preserving the peace +at the South during the election. The commission constituted under the act +of July 24, 1876, to consider and report on the "whole subject of the +reform and reorganization of the Army" met in August last, and has +collected a large mass of statistics and opinions bearing on the subject +before it. These are now under consideration, and their report is +progressing. I am advised, though, by the president of the commission that +it will be impracticable to comply with the clause of the act requiring the +report to be presented, through me, to Congress on the first day of this +session, as there has not yet been time for that mature deliberation which +the importance of the subject demands. Therefore I ask that the time of +making the report be extended to the 29th day of January, 1877. + +In accordance with the resolution of August 15, 1876, the Army regulations +prepared under the act of March 1, 1875, have not been promulgated, but are +held until after the report of the above-mentioned commission shall have +been received and acted on. + +By the act of August 15, 1876, the cavalry force of the Army was increased +by 2,500 men, with the proviso that they should be discharged on the +expiration of hostilities. Under this authority the cavalry regiments have +been strengthened, and a portion of them are now in the field pursuing the +remnants of the Indians with whom they have been engaged during the +summer. + +The estimates of the War Department are made up on the basis of the number +of men authorized by law, and their requirements as shown by years of +experience, and also with the purpose on the part of the bureau officers to +provide for all contingencies that may arise during the time for which the +estimates are made. Exclusive of engineer estimates (presented in +accordance with acts of Congress calling for surveys and estimates for +improvements at various localities), the estimates now presented are about +six millions in excess of the appropriations for the years 1874-75 and +1875-76. This increase is asked in order to provide for the increased +cavalry force (should their services be necessary), to prosecute +economically work upon important public buildings, to provide for armament +of fortifications and manufacture of small arms, and to replenish the +working stock in the supply departments. The appropriations for these last +named have for the past few years been so limited that the accumulations in +store will be entirely exhausted during the present year, and it will be +necessary to at once begin to replenish them. + +I invite your special attention to the following recommendations of the +Secretary of War: + +First. That the claims under the act of July 4, 1864, for supplies taken by +the Army during the war be removed from the offices of the Quartermaster +and Commissary Generals and transferred to the Southern Claims Commission. +These claims are of precisely similar nature to those now before the +Southern Claims Commission, and the War Department bureaus have not the +clerical force for their examination nor proper machinery for investigating +the loyalty of the claimants. + +Second. That Congress sanction the scheme of an annuity fund for the +benefit of the families of deceased officers, and that it also provide for +the permanent organization of the Signal Service, both of which were +recommended in my last annual message. + +Third. That the manufacturing operations of the Ordnance Department be +concentrated at three arsenals and an armory, and that the remaining +arsenals be sold and the proceeds applied to this object by the Ordnance +Department. + +The appropriations for river and harbor improvements for the current year +were $5,015,000. With my approval, the Secretary of War directed that of +this amount $2,000,000 should be expended, and no new works should be begun +and none prosecuted which were not of national importance. Subsequently +this amount was increased to $2,237,600, and the works are now progressing +on this basis. + +The improvement of the South Pass of the Mississippi River, under James B. +Eads and his associates, is progressing favorably. At the present time +there is a channel of 20.3 feet in depth between the jetties at the mouth +of the pass and 18.5 feet at the head of the pass. Neither channel, +however, has the width required before payments can be made by the United +States. A commission of engineer officers is now examining these works, and +their reports will be presented as soon as received. + +The report of the Secretary of the Navy shows that branch of the service to +be in condition as effective as it is possible to keep it with the means +and authority given the Department. It is, of course, not possible to rival +the costly and progressive establishments of great European powers with the +old material of our Navy, to which no increase has been authorized since +the war, except the eight small cruisers built to supply the place of +others which had gone to decay. Yet the most has been done that was +possible with the means at command; and by substantially rebuilding some of +our old ships with durable material and completely repairing and refitting +our monitor fleet the Navy has been gradually so brought up that, though it +does not maintain its relative position among the progressive navies of the +world, it is now in a condition more powerful and effective than it ever +has been in time of peace. + +The complete repairs of our five heavy ironclads are only delayed on +account of the inadequacy of the appropriations made last year for the +working bureaus of the Department, which were actually less in amount than +those made before the war, notwithstanding the greatly enhanced price of +labor and materials and the increase in the cost of the naval service +growing out of the universal use and great expense of steam machinery. The +money necessary for these repairs should be provided at once, that they may +be completed without further unnecessary delay and expense. + +When this is done, all the strength that there is in our Navy will be +developed and useful to its full capacity, and it will be powerful for +purposes of defense, and also for offensive action, should the necessity +for that arise within a reasonable distance from our shores. + +The fact that our Navy is not more modern and powerful than it is has been +made a cause of complaint against the Secretary of the Navy by persons who +at the same time criticise and complain of his endeavors to bring the Navy +that we have to its best and most efficient condition; but the good sense +of the country will understand that it is really due to his practical +action that we have at this time any effective naval force at command. + +The report of the Postmaster-General shows the excess of expenditures +(excluding expenditures on account of previous years) over receipts for the +fiscal year ended June 30, 1876, to be $4,151,988.66. + +Estimated expenditures for the fiscal year ending June 30, 1878, are +$36,723,432.43. + +Estimated revenue for same period is $30,645,165, leaving estimated excess +of expenditure, to be appropriated as a deficiency, of $6,078,267.43. + +The Postmaster-General, like his predecessor, is convinced that a change in +the basis of adjusting the salaries of postmasters of the fourth class is +necessary for the good of the service as well as for the interests of the +Government, and urgently recommends that the compensation of the class of +postmasters above mentioned be based upon the business of their respective +offices, as ascertained from the sworn returns to the Auditor of stamps +canceled. + +A few postmasters in the Southern States have expressed great apprehension +of their personal safety on account of their connection with the postal +service, and have specially requested that their reports of apprehended +danger should not be made public lest it should result in the loss of their +lives. But no positive testimony of interference has been submitted, except +in the case of a mail messenger at Spartanburg, in South Carolina, who +reported that he had been violently driven away while in charge of the +mails on account of his political affiliations. An assistant superintendent +of the Railway Mail Service investigated this case and reported that the +messenger had disappeared from his post, leaving his work to be performed +by a substitute. The Postmaster-General thinks this case is sufficiently +suggestive to justify him in recommending that a more severe punishment +should be provided for the offense of assaulting any person in charge of +the mails or of retarding or otherwise obstructing them by threats of +personal injury. + +"A very gratifying result is presented in the fact that the deficiency of +this Department during the last fiscal year was reduced to $4,081,790.18, +as against $6,169,938.88 of the preceding year. The difference can be +traced to the large increase in its ordinary receipts (which greatly exceed +the estimates therefor) and a slight decrease in its expenditures." + +The ordinary receipts of the Post-Office Department for the past seven +fiscal years have increased at an average of over 8 per cent per annum, +while the increase of expenditures for the same period has been but about +5.50 per cent per annum, and the decrease of deficiency in the revenues has +been at the rate of nearly 2 per cent per annum. + +The report of the Commissioner of Agriculture accompanying this message +will be found one of great interest, marking, as it does, the great +progress of the last century in the variety of products of the soil; +increased knowledge and skill in the labor of producing, saving, and +manipulating the same to prepare them for the use of man; in the +improvements in machinery to aid the agriculturist in his labors, and in a +knowledge of those scientific subjects necessary to a thorough system of +economy in agricultural production, namely, chemistry, botany, entomology, +etc. A study of this report by those interested in agriculture and deriving +their support from it will find it of value in pointing out those articles +which are raised in greater quantity than the needs of the world require, +and must sell, therefore, for less than the cost of production, and those +which command a profit over cost of production because there is not an +overproduction. + +I call special attention to the need of the Department for a new gallery +for the reception of the exhibits returned from the Centennial Exhibition, +including the exhibits donated by very many foreign nations, and to the +recommendations of the Commissioner of Agriculture generally. + +The reports of the District Commissioners and the board of health are just +received--too late to read them and to make recommendations thereon--and +are herewith submitted. + +The international exhibition held in Philadelphia this year, in +commemoration of the one hundredth anniversary of American independence, +has proven a great success, and will, no doubt, be of enduring advantage to +the country. It has shown the great progress in the arts, sciences, and +mechanical skill made in a single century, and demonstrated that we are but +little behind older nations in any one branch, while in some we scarcely +have a rival. It has served, too, not only to bring peoples and products of +skill and labor from all parts of the world together, but in bringing +together people from all sections of our own country, which must prove a +great benefit in the information imparted and pride of country engendered. + +It has been suggested by scientists interested in and connected with the +Smithsonian Institution, in a communication herewith, that the Government +exhibit be removed to the capital and a suitable building be erected or +purchased for its accommodation as a permanent exhibit. I earnestly +recommend this; and believing that Congress would second this view, I +directed that all Government exhibits at the Centennial Exhibition should +remain where they are, except such as might be injured by remaining in a +building not intended as a protection in inclement weather, or such as may +be wanted by the Department furnishing them, until the question of +permanent exhibition is acted on. + +Although the moneys appropriated by Congress to enable the participation of +the several Executive Departments in the International Exhibition of 1876 +were not sufficient to carry out the undertaking to the full extent at +first contemplated, it gives me pleasure to refer to the very efficient and +creditable manner in which the board appointed from these several +Departments to provide an exhibition on the part of the Government have +discharged their duties with the funds placed at their command. Without a +precedent to guide them in the preparation of such a display, the success +of their labors was amply attested by the sustained attention which the +contents of the Government building attracted during the period of the +exhibition from both foreign and native visitors. + +I am strongly impressed with the value of the collection made by the +Government for the purposes of the exhibition, illustrating, as it does, +the mineral resources of the country, the statistical and practical +evidences of our growth as a nation, and the uses of the mechanical arts +and the applications of applied science in the administration of the +affairs of Government. + +Many nations have voluntarily contributed their exhibits to the United +States to increase the interest in any permanent exhibition Congress may +provide for. For this act of generosity they should receive the thanks of +the people, and I respectfully suggest that a resolution of Congress to +that effect be adopted. + +The attention of Congress can not be too earnestly called to the necessity +of throwing some greater safeguard over the method of choosing and +declaring the election of a President. Under the present system there seems +to be no provided remedy for contesting the election in any one State. The +remedy is partially, no doubt, in the enlightenment of electors. The +compulsory support of the free school and the disfranchisement of all who +can not read and write the English language, after a fixed probation, would +meet my hearty approval. I would not make this apply, however, to those +already voters, but I would to all becoming so after the expiration of the +probation fixed upon. Foreigners coming to this country to become citizens, +who are educated in their own language, should acquire the requisite +knowledge of ours during the necessary residence to obtain naturalization. +If they did not take interest enough in our language to acquire sufficient +knowledge of it to enable them to study the institutions and laws of the +country intelligently, I would not confer upon them the right to make such +laws nor to select those who do. + +I append to this message, for convenient reference, a synopsis of +administrative events and of all recommendations to Congress made by me +during the last seven years. Time may show some of these recommendations +not to have been wisely conceived, but I believe the larger part will do no +discredit to the Administration. One of these recommendations met with the +united opposition of one political party in the Senate and with a strong +opposition from the other, namely, the treaty for the annexation of Santo +Domingo to the United States, to which I will specially refer, maintaining, +as I do, that if my views had been concurred in the country would be in a +more prosperous condition to-day, both politically and financially. + +Santo Domingo is fertile, and upon its soil may be grown just those +tropical products of which the United States use so much, and which are +produced or prepared for market now by slave labor almost exclusively, +namely, sugar, coffee, dyewoods, mahogany, tropical fruits, tobacco, etc. +About 75 per cent of the exports of Cuba are consumed in the United States. +A large percentage of the exports of Brazil also find the same market. +These are paid for almost exclusively in coin, legislation, particularly in +Cuba, being unfavorable to a mutual exchange of the products of each +country. Flour shipped from the Mississippi River to Havana can pass by the +very entrance to the city on its way to a port in Spain, there pay a duty +fixed upon articles to be reexported, transferred to a Spanish vessel and +brought back almost to the point of starting, paying a second duty, and +still leave a profit over what would be received by direct shipment. All +that is produced in Cuba could be produced in Santo Domingo. Being a part +of the United States, commerce between the island and mainland would be +free. There would be no export duties on her shipments nor import duties on +those coming here. There would be no import duties upon the supplies, +machinery, etc., going from the States. The effect that would have been +produced upon Cuban commerce, with these advantages to a rival, is +observable at a glance. The Cuban question would have been settled long ago +in favor of "free Cuba." Hundreds of American vessels would now be +advantageously used in transporting the valuable woods and other products +of the soil of the island to a market and in carrying supplies and +emigrants to it. The island is but sparsely settled, while it has an area +sufficient for the profitable employment of several millions of people. The +soil would have soon fallen into the hands of United States capitalists. +The products are so valuable in commerce that emigration there would have +been encouraged; the emancipated race of the South would have found there a +congenial home, where their civil rights would not be disputed and where +their labor would be so much sought after that the poorest among them could +have found the means to go. Thus in cases of great oppression and cruelty, +such as has been practiced upon them in many places within the last eleven +years, whole communities would have sought refuge in Santo Domingo. I do +not suppose the whole race would have gone, nor is it desirable that they +should go. Their labor is desirable--indispensable almost--where they now +are. But the possession of this territory would have left the negro "master +of the situation," by enabling him to demand his rights at home on pain of +finding them elsewhere. + +I do not present these views now as a recommendation for a renewal of the +subject of annexation, but I do refer to it to vindicate my previous action +in regard to it. + +With the present term of Congress my official life terminates. It is not +probable that public affairs will ever again receive attention from me +further than as a citizen of the Republic, always taking a deep interest in +the honor, integrity, and prosperity of the whole land. + +U. S. GRANT + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY ULYSSES S. 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