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diff --git a/old/suhay10.txt b/old/suhay10.txt new file mode 100644 index 0000000..b629346 --- /dev/null +++ b/old/suhay10.txt @@ -0,0 +1,3746 @@ +The Project Gutenberg EBook of State of the Union Addresses +by Rutherford B. Hayes +(#18 in our series of US Presidential State of the Union Addresses) + +Copyright laws are changing all over the world. Be sure to check the +copyright laws for your country before downloading or redistributing +this or any other Project Gutenberg eBook. + +This header should be the first thing seen when viewing this Project +Gutenberg file. 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 Rutherford B. Hayes + +Author: Rutherford B. Hayes + +Release Date: February, 2004 [EBook #5027] +[Yes, we are more than one year ahead of schedule] +[This file was first posted on April 11, 2002] + +Edition: 10 + +Language: English + +Character set encoding: ASCII + +*** START OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY RUTHERFORD B. HAYES *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Rutherford B. Hayes in this eBook: + December 3, 1877 + December 2, 1878 + December 1, 1879 + December 6, 1880 + + + +*** + +State of the Union Address +Rutherford B. Hayes +December 3, 1877 + +Fellow-Citizens of the Senate and House of Representatives: + +With devout gratitude to the bountiful Giver of All Good, I congratulate +you that at the beginning of your first regular session you find our +country blessed with health and peace and abundant harvests, and with +encouraging prospects of an early return of general prosperity. + +To complete and make permanent the pacification of the country continues to +be, and until it is fully accomplished must remain, the most important of +all our national interests. The earnest purpose of good citizens generally +to unite their efforts in this endeavor is evident. It found decided +expression in the resolutions announced in 1876 by the national conventions +of the leading political parties of the country. There was a widespread +apprehension that the momentous results in our progress as a nation marked +by the recent amendments to the Constitution were in imminent jeopardy; +that the good understanding which prompted their adoption, in the interest +of a loyal devotion to the general welfare, might prove a barren truce, and +that the two sections of the country, once engaged in civil strife, might +be again almost as widely severed and disunited as they were when arrayed +in arms against each other. + +The course to be pursued, which, in my judgment, seemed wisest in the +presence of this emergency, was plainly indicated in my inaugural address. +It pointed to the time, which all our people desire to see, when a genuine +love of our whole country and of all that concerns its true welfare shall +supplant the destructive forces of the mutual animosity of races and of +sectional hostility. Opinions have differed widely as to the measures best +calculated to secure this great end. This was to be expected. The measures +adopted by the Administration have been subjected to severe and varied +criticism. Any course whatever which might have been entered upon would +certainly have encountered distrust and opposition. These measures were, in +my judgment, such as were most in harmony with the Constitution and with +the genius of our people, and best adapted, under all the circumstances, to +attain the end in view. Beneficent results, already apparent, prove that +these endeavors are not to be regarded as a mere experiment, and should +sustain and encourage us in our efforts. Already, in the brief period which +has elapsed, the immediate effectiveness, no less than the justice, of the +course pursued is demonstrated, and I have an abiding faith that time will +furnish its ample vindication in the minds of the great majority of my +fellow-citizens. The discontinuance of the use of the Army for the purpose +of upholding local governments in two States of the Union was no less a +constitutional duty and requirement, under the circumstances existing at +the time, than it was a much-needed measure for the restoration of local +self-government and the promotion of national harmony. The withdrawal of +the troops from such employment was effected deliberately, and with +solicitous care for the peace and good order of society and the protection +of the property and persons and every right of all classes of citizens. + +The results that have followed are indeed significant and encouraging. All +apprehension of danger from remitting those States to local self-government +is dispelled, and a most salutary change in the minds of the people has +begun and is in progress in every part of that section of the country once +the theater of unhappy civil strife, substituting for suspicion, distrust, +and aversion, concord, friendship, and patriotic attachment to the Union. +No unprejudiced mind will deny that the terrible and often fatal collisions +which for several years have been of frequent occurrence and have agitated +and alarmed the public mind have almost entirely ceased, and that a spirit +of mutual forbearance and hearty national interest has succeeded. There has +been a general reestablishment of order and of the orderly administration +of justice. Instances of remaining lawlessness have become of rare +occurrence; political turmoil and turbulence have disappeared; useful +industries have been resumed; public credit in the Southern States has been +greatly strengthened, and the encouraging benefits of a revival of commerce +between the sections of the country lately embroiled in civil war are fully +enjoyed. Such are some of the results already attained, upon which the +country is to be congratulated. They are of such importance that we may +with confidence patiently await the desired consummation that will surely +come with the natural progress of events. + +It may not be improper here to say that it should be our fixed and +unalterable determination to protect by all available and proper means +under the Constitution and the laws the lately emancipated race in the +enjoyment of their rights and privileges; and I urge upon those to whom +heretofore the colored people have sustained the relation of bondmen the +wisdom and justice of humane and liberal local legislation with respect to +their education and general welfare. A firm adherence to the laws, both +national and State, as to the civil and political rights of the colored +people, now advanced to full and equal citizenship; the immediate +repression and sure punishment by the national and local authorities, +within their respective jurisdictions, of every instance of lawlessness and +violence toward them, is required for the security alike of both races, and +is justly demanded by the public opinion of the country and the age. In +this way the restoration of harmony and good will and the complete +protection of every citizen in the full enjoyment of every constitutional +right will surely be attained. Whatever authority rests with me to this end +I shall not hesitate to put forth. + +Whatever belongs to the power of Congress and the jurisdiction of the +courts of the Union, they may confidently be relied upon to provide and +perform; and to the legislatures, the courts, and the executive authorities +of the several States I earnestly appeal to secure, by adequate, +appropriate, and seasonable means, Within their borders, these common and +uniform rights of a united people which loves liberty, abhors oppression, +and reveres justice. These objects are very dear to my heart. I shall +continue most earnestly to strive for their attainment. The cordial +cooperation of all classes, of all sections of the country and of both +races, is required for this purpose; and with these blessings assured, and +not otherwise, we may safely hope to hand down our free institutions of +government unimpaired to the generations that will succeed us. + +Among the other subjects of great and general importance to the people of +this country, I can not be mistaken, I think, in regarding as preeminent +the policy and measures which are designed to secure the restoration of the +currency to that normal and healthful condition in which, by the resumption +of specie payments, our internal trade and foreign commerce may be brought +into harmony with the system of exchanges which is based upon the precious +metals as the intrinsic money of the world. In the public judgment that +this end should be sought and compassed as speedily and securely as the +resources of the people and the wisdom of their Government can accomplish, +there is a much greater degree of unanimity than is found to concur in the +specific measures which will bring the country to this desired end or the +rapidity of the steps by which it can be safely reached. + +Upon a most anxious and deliberate examination, which I have felt it my +duty to give to the subject, I am but the more confirmed in the opinion +which I expressed in accepting the nomination for the Presidency, and again +upon my inauguration, that the policy of resumption should be pursued by +every suitable means, and that no legislation would be wise that should +disparage the importance or retard the attainment of that result. I have no +disposition, and certainly no right, to question the sincerity or the +intelligence of opposing opinions, and would neither conceal nor undervalue +the considerable difficulties, and even occasional distresses, which may +attend the progress of the nation toward this primary condition to its +general and permanent prosperity. I must, however, adhere to my most +earnest conviction that any wavering in purpose or unsteadiness in methods, +so far from avoiding or reducing the inconvenience inseparable from the +transition from an irredeemable to a redeemable paper currency, would only +tend to increased and prolonged disturbance in values, and unless retrieved +must end in serious disorder, dishonor, and disaster in the financial +affairs of the Government and of the people. + +The mischiefs which I apprehend and urgently deprecate are confined to no +class of the people, indeed, but seem to me most certainly to threaten the +industrious masses, whether their occupations are of skilled or common +labor. To them, it seems to me, it is of prime importance that their labor +should be compensated in money which is itself fixed in exchangeable value +by being irrevocably measured by the labor necessary to its production. +This permanent quality of the money of the people is sought for, and can +only be gained by the resumption of specie payments. The rich, the +speculative, the operating, the money-dealing classes may not always feel +the mischiefs of, or may find casual profits in, a variable currency, but +the misfortunes of such a currency to those who are paid salaries or wages +are inevitable and remediless. + +Closely connected with this general subject of the resumption of specie +payments is one of subordinate, but still of grave, importance; I mean the +readjustment of our coinage system by the renewal of the silver dollar as +an element in our specie currency, endowed by legislation with the quality +of legal tender to a greater or less extent. + +As there is no doubt of the power of Congress under the Constitution "to +coin money and regulate the value thereof," and as this power covers the +whole range of authority applicable to the metal, the rated value and the +legal-tender quality which shall be adopted for the coinage, the +considerations which should induce or discourage a particular measure +connected with the coinage, belong clearly to the province of legislative +discretion and of public expediency. Without intruding upon this province +of legislation in the least, I have yet thought the subject of such +critical importance, in the actual condition of our affairs, as to present +an occasion for the exercise of the duty imposed by the Constitution on the +President of recommending to the consideration of Congress "such measures +as he shall judge necessary and expedient." + +Holding the opinion, as I do, that neither the interests of the Government +nor of the people of the United States would be promoted by disparaging +silver as one of the two precious metals which furnish the coinage of the +world, and that legislation which looks to maintaining the volume of +intrinsic money to as full a measure of both metals as their relative +commercial values will permit would be neither unjust nor inexpedient, I +must ask your indulgence to a brief and definite statement of certain +essential features in any such legislative measure which I feel it my duty +to recommend. + +I do not propose to enter the debate, represented on both sides by such +able disputants in Congress and before the people and in the press, as to +the extent to which the legislation of any one nation can control this +question, even within its own borders, against the unwritten laws of trade +or the positive laws of other governments. The wisdom of Congress in +shaping any particular law that may be presented for my approval may wholly +supersede the necessity of my entering into these considerations, and I +willingly avoid either vague or intricate inquiries. It is only certain +plain and practical traits of such legislation that I desire to recommend +to your attention. + +In any legislation providing for a silver coinage, regulating its value, +and imparting to it the quality of legal tender, it seems to me of great +importance that Congress should not lose sight of its action as operating +in a twofold capacity and in two distinct directions. If the United States +Government were free from a public debt, its legislative dealing with the +question of silver coinage would be purely sovereign and governmental, +under no restraints but those of constitutional power and the public good +as affected by the proposed legislation. But in the actual circumstances of +the nation, with a vast public debt distributed very widely among our own +citizens and held in great amounts also abroad, the nature of the +silver-coinage measure, as affecting this relation of the Government to the +holders of the public debt, becomes an element, in any proposed +legislation, of the highest concern. The obligation of the public faith +transcends all questions of profit or public advantage otherwise. Its +unquestionable maintenance is the dictate as well of the highest expediency +as of the most necessary duty, and will ever be carefully guarded by +Congress and people alike. + +The public debt of the United States to the amount of $729,000,000 bears +interest at the rate of 6 per cent, and $708,000,000 at the rate of 5 per +cent, and the only way in which the country can be relieved from the +payment of these high rates of interest is by advantageously refunding the +indebtedness. Whether the debt is ultimately paid in gold or in silver coin +is of but little moment compared with the possible reduction of interest +one-third by refunding it at such reduced rate. If the United States had +the unquestioned right to pay its bonds in silver coin, the little benefit +from that process would be greatly overbalanced by the injurious effect of +such payment if made or proposed against the honest convictions of the +public creditors. + +All the bonds that have been issued since February 12, 1873, when gold +became the only unlimited legal-tender metallic currency of the country, +are justly payable in gold coin or in coin of equal value. During the time +of these issues the only dollar that could be or was received by the +Government in exchange for bonds was the gold dollar. To require the public +creditors to take in repayment any dollar of less commercial value would be +regarded by them as a repudiation of the full obligation assumed. The bonds +issued prior to 1873 were issued at a time when the gold dollar was the +only coin in circulation or contemplated by either the Government or the +holders of the bonds as the coin in which they were to be paid. It is far +better to pay these bonds in that coin than to seem to take advantage of +the unforeseen fall in silver bullion to pay in a new issue of silver coin +thus made so much less valuable. The power of the United States to coin +money and to regulate the value thereof ought never to be exercised for the +purpose of enabling the Government to pay its obligations in a coin of less +value than that contemplated by the parties when the bonds were issued. Any +attempt to pay the national indebtedness in a coinage of less commercial +value than the money of the world would involve a violation of the public +faith and work irreparable injury to the public credit. + +It was the great merit of the act of March, 1869, in strengthening the +public credit, that it removed all doubt as to the purpose of the United +States to pay their bonded debt in coin. That act was accepted as a pledge +of public faith. The Government has derived great benefit from it in the +progress thus far made in refunding the public debt at low rates of +interest. An adherence to the wise and just policy of an exact observance +of the public faith will enable the Government rapidly to reduce the burden +of interest on the national debt to an amount exceeding $20,000,000 per +annum, and effect an aggregate saving to the United States of more than +$300,000,000 before the bonds can be fully paid. + +In adapting the new silver coinage to the ordinary uses of currency in the +everyday transactions of life and prescribing the quality of legal tender +to be assigned to it, a consideration of the first importance should be so +to adjust the ratio between the silver and the gold coinage, which now +constitutes our specie currency, as to accomplish the desired end of +maintaining the circulation of the two metallic currencies and keeping up +the volume of the two precious metals as our intrinsic money. It is a mixed +question, for scientific reasoning and historical experience to determine, +how far and by what methods a practical equilibrium can be maintained which +will keep both metals in circulation in their appropriate spheres of common +use. + +An absolute equality of commercial value, free from disturbing +fluctuations, is hardly attainable, and without it an unlimited legal +tender for private transactions assigned to both metals would irresistibly +tend to drive out of circulation the clearer coinage and disappoint the +principal object proposed by the legislation in view. I apprehend, +therefore, that the two conditions of a near approach to equality of +commercial value between the gold and silver coinage of the same +denomination and of a limitation of the amounts for which the silver +coinage is to be a legal tender are essential to maintaining both in +circulation. If these conditions can be successfully observed, the issue +from the mint of silver dollars would afford material assistance to the +community in the transition to redeemable paper money, and would facilitate +the resumption of specie payment and its permanent establishment. Without +these conditions I fear that only mischief and misfortune would flow from a +coinage of silver dollars with the quality of unlimited legal tender, even +in private transactions. + +Any expectation of temporary ease from an issue of silver coinage to pass +as a legal tender at a rate materially above its commercial value is, I am +persuaded, a delusion. Nor can I think that there is any substantial +distinction between an original issue of silver dollars at a nominal value +materially above their commercial value and the restoration of the silver +dollar at a rate which once was, but has ceased to be, its commercial +value. Certainly the issue of our gold coinage, reduced in weight +materially below its legal-tender value, would not be any the less a +present debasement of the coinage by reason of its equaling, or even +exceeding, in weight a gold coinage which at some past time had been +commercially equal to the legal-tender value assigned to the new issue. + +In recommending that the regulation of any silver coinage which may be +authorized by Congress should observe these conditions of commercial value +and limited legal tender, I am governed by the feeling that every possible +increase should be given to the volume of metallic money which can be kept +in circulation, and thereby every possible aid afforded to the people in +the process of resuming specie payments. It is because of my firm +conviction that a disregard of these conditions would frustrate the good +results which are desired from the proposed coinage, and embarrass with new +elements of confusion and uncertainty the business of the country, that I +urge upon your attention these considerations. + +I respectfully recommend to Congress that in any legislation providing for +a silver coinage and imparting to it the quality of legal tender there be +impressed upon the measure a firm provision exempting the public debt +heretofore issued and now outstanding from payment, either of principal or +interest, in any coinage of less commercial value than the present gold +coinage of the country. + +The organization of the civil service of the country has for a number of +years attracted more and more of the public attention. So general has +become the opinion that the methods of admission to it and the conditions +of remaining in it are unsound that both the great political parties have +agreed in the most explicit declarations of the necessity of reform and in +the most emphatic demands for it. I have fully believed these declarations +and demands to be the expression of a sincere conviction of the intelligent +masses of the people upon the subject, and that they should be recognized +and followed by earnest and prompt action on the part of the legislative +and executive departments of the Government, in pursuance of the purpose +indicated. + +Before my accession to office I endeavored to have my own views distinctly +understood, and upon my inauguration my accord with the public opinion was +stated in terms believed to be plain and unambiguous. My experience in the +executive duties has strongly confirmed the belief in the great advantage +the country would find in observing strictly the plan of the Constitution, +which imposes upon the Executive the sole duty and responsibility of the +selection of those Federal officers who by law are appointed, not elected, +and which in like manner assigns to the Senate the complete right to advise +and consent to or to reject the nominations so made, whilst the House of +Representatives stands as the public censor of the performance of official +duties, with the prerogative of investigation and prosecution in all cases +of dereliction. The blemishes and imperfections in the civil service may, +as I think, be traced in most cases to a practical confusion of the duties +assigned to the several Departments of the Government. My purpose in this +respect has been to return to the system established by the fundamental +law, and to do this with the heartiest cooperation and most cordial +understanding with the Senate and House of Representatives. + +The practical difficulties in the selection of numerous officers for posts +of widely varying responsibilities and duties are acknowledged to be very +great. No system can be expected to secure absolute freedom from mistakes, +and the beginning of any attempted change of custom is quite likely to be +more embarrassed in this respect than any subsequent period. It is here +that the Constitution seems to me to prove its claim to the great wisdom +accorded to it. It gives to the Executive the assistance of the knowledge +and experience of the Senate, which, when acting upon nominations as to +which they may be disinterested and impartial judges, secures as strong a +guaranty of freedom from errors of importance as is perhaps possible in +human affairs. + +In addition to this, I recognize the public advantage of making all +nominations, as nearly as possible, impersonal, in the sense of being free +from mere caprice or favor in the selection; and in those offices in which +special training is of greatly increased value I believe such a rule as to +the tenure of office should obtain as may induce men of proper +qualifications to apply themselves industriously to the task of becoming +proficients. Bearing these things in mind, I have endeavored to reduce the +number of changes in subordinate places usually made upon the change of the +general administration, and shall most heartily cooperate with Congress in +the better systematizing of such methods and rules of admission to the +public service and of promotion within it as, may promise to be most +successful in making thorough competency, efficiency, and character the +decisive tests in these matters. + +I ask the renewed attention of Congress to what has already been done by +the Civil Service Commission, appointed, in pursuance of an act of +Congress, by my predecessor, to prepare and revise civil-service rules. In +regard to much of the departmental service, especially at Washington, it +may be difficult to organize a better system than that which has thus been +provided, and it is now being used to a considerable extent under my +direction. The Commission has still a legal existence, although for several +years no appropriation has been made for defraying its expenses. Believing +that this Commission has rendered valuable service and will be a most +useful agency in improving the administration of the civil service, I +respectfully recommend that a suitable appropriation, to be immediately +available, be made to enable it to continue its labors. + +It is my purpose to transmit to Congress as early as practicable a report +by the chairman of the Commission, and to ask your attention to such +measures on this subject as in my opinion will further promote the +improvement of the civil service. + +During the past year the United States have continued to maintain peaceful +relations with foreign powers. + +The outbreak of war between Russia and Turkey, though at one time attended +by grave apprehension as to its effect upon other European nations, has had +no tendency to disturb the amicable relations existing between the United +States and each of the two contending powers. An attitude of just and +impartial neutrality has been preserved, and I am gratified to state that +in the midst of their hostilities both the Russian and the Turkish +Governments have shown an earnest disposition to adhere to the obligations +of all treaties with the United States and to give due regard to the rights +of American citizens. + +By the terms of the treaty defining the rights, immunities, and privileges +of consuls, between Italy and the United States, ratified in 1868, either +Government may, after the lapse of ten years, terminate the existence of +the treaty by giving twelve months' notice of its intention. The Government +of Italy, availing itself of this faculty, has now given the required +notice, and the treaty will accordingly end on the 17th of September, 1878. +It is understood, however, that the Italian Government wishes to renew it +in its general scope, desiring only certain modifications in some of its +articles. In this disposition I concur, and shall hope that no serious +obstacles may intervene to prevent or delay the negotiation of a +satisfactory treaty. + +Numerous questions in regard to passports, naturalization, and exemption +from military service have continued to arise in cases of emigrants from +Germany who have returned to their native country. The provisions of the +treaty of February 22, 1868, however, have proved to be so ample and so +judicious that the legation of the United States at Berlin has been able to +adjust all claims arising under it, not only without detriment to the +amicable relations existing between the two Governments, but, it is +believed, without injury or injustice to any duly naturalized American +citizen. It is desirable that the treaty originally made with the North +German Union in 1868 should now be extended so as to apply equally to all +the States of the Empire of Germany. + +The invitation of the Government of France to participate in the Exposition +of the Products of Agriculture, Industry, and the Fine Arts to be held at +Paris during the coming year was submitted for your consideration at the +extra session. It is not doubted that its acceptance by the United States, +and a well-selected exhibition of the products of American industry on that +occasion, will tend to stimulate international commerce and emigration, as +well as to promote the traditional friendship between the two countries. + +A question arose some time since as to the proper meaning of the +extradition articles of the treaty of 1842 between the United States and +Great Britain. Both Governments, however, are now in accord in the belief +that the question is not one that should be allowed to frustrate the ends +of justice or to disturb the friendship between the two nations. No serious +difficulty has arisen in accomplishing the extradition of criminals when +necessary. It is probable that all points of disagreement will in due time +be settled, and, if need be, more explicit declarations be made in a new +treaty. + +The Fishery Commission under Articles XVIII to XXV of the treaty of +Washington has concluded its session at Halifax. The result of the +deliberations of the commission, as made public by the commissioners, will +be communicated to Congress. + +A treaty for the protection of trade-marks has been negotiated with Great +Britain, which has been submitted to the Senate for its consideration. + +The revolution which recently occurred in Mexico was followed by the +accession of the successful party to power and the installation of its +chief, General Porfirio Diaz, in the Presidential office. It has been the +custom of the United States, when such changes of government have +heretofore occurred in Mexico, to recognize and enter into official +relations with the de facto government as soon as it should appear to have +the approval of the Mexican people and should manifest a disposition to +adhere to the obligations of treaties and international friendship. In the +present case such official recognition has been deferred by the occurrences +on the Rio Grande border, the records of which have been already +communicated to each House of Congress in answer to their respective +resolutions of inquiry. Assurances have been received that the authorities +at the seat of the Mexican Government have both the disposition and the +power to prevent and punish such unlawful invasions and depredations. It is +earnestly to be hoped that events may prove these assurances to be well +rounded. The best interests of both countries require the maintenance of +peace upon the border and the development of commerce between the two +Republics. + +It is gratifying to add that this temporary interruption of official +relations has not prevented due attention by the representatives of the +United States in Mexico to the protection of American citizens, so far as +practicable; nor has it interfered with the prompt payment of the amounts +due from Mexico to the United States under the treaty of July 4, 1868, and +the awards of the joint commission. While I do not anticipate an +interruption of friendly relations with Mexico, yet I can not but look with +some solicitude upon a continuance of border disorders as exposing the two +countries to initiations of popular feeling and mischances of action which +are naturally unfavorable to complete amity. Firmly determined that nothing +shall be wanting on my part to promote a good understanding between the two +nations, I yet must ask the attention of Congress to the actual occurrences +on the border, that the lives and property of our citizens may be +adequately protected and peace preserved. + +Another year has passed without bringing to a close the protracted contest +between the Spanish Government and the insurrection in the island of Cuba. +While the United States have sedulously abstained from any intervention in +this contest, it is impossible not to feel that it is attended with +incidents affecting the rights and interests of American citizens. Apart +from the effect of the hostilities upon trade between the United States and +Cuba, their progress is inevitably accompanied by complaints, having more +or less foundation, of searches, arrests, embargoes, and oppressive taxes +upon the property of American residents, and of unprovoked interference +with American vessels and commerce. It is due to the Government of Spain to +say that during the past year it has promptly disavowed and offered +reparation for any unauthorized acts of unduly zealous subordinates +whenever such acts have been brought to its attention. Nevertheless, such +occurrences can not but tend to excite feelings of annoyance, suspicion, +and resentment. which are greatly to be deprecated, between the respective +subjects and citizens of two friendly powers. + +Much delay (consequent upon accusations of fraud in some of the awards) has +occurred in respect to the distribution of the limited amounts received +from Venezuela under the treaty of April 25, 1866, applicable to the awards +of the joint commission created by that treaty. So long as these matters +are pending in Congress the Executive can not assume either to pass upon +the questions presented or to distribute the fund received. It is eminently +desirable that definite legislative action should be taken, either +affirming the awards to be final or providing some method for reexamination +of the claims. Our relations with the Republics of Central and South +America and with the Empire of Brazil have continued without serious +change, further than the temporary interruption of diplomatic intercourse +with Venezuela and with Guatemala. Amicable relations have already been +fully restored with Venezuela, and it is not doubted that all grounds of +misunderstanding with Guatemala will speedily be removed. From all these +countries there are favorable indications of a disposition on the part of +their Governments and people to reciprocate our efforts in the direction of +increased commercial intercourse. + +The Government of the Samoan Islands has sent an envoy, in the person of +its secretary of state, to invite the Government of the United States to +recognize and protect their independence, to establish commercial relations +with their people, and to assist them in their steps toward regulated and +responsible government. The inhabitants of these islands, having made +considerable progress in Christian civilization and the development of +trade, are doubtful of their ability to maintain peace and independence +without the aid of some stronger power. The subject is deemed worthy of +respectful attention, and the claims upon our assistance by this distant +community will be carefully considered. + +The long commercial depression in the United States has directed attention +to the subject of the possible increase of our foreign trade and the +methods for its development, not only with Europe, but with other +countries, and especially with the States and sovereignties of the Western +Hemisphere. Instructions from the Department of State were issued to the +various diplomatic and consular officers of the Government, asking them to +devote attention to the question of methods by which trade between the +respective countries of their official residence and the United States +could be most judiciously fostered. In obedience to these instructions, +examinations and reports upon this subject have been made by many of these +officers and transmitted to the Department, and the same are submitted to +the consideration of Congress. + +The annual report of the Secretary of the Treasury on the state of the +finances presents important questions for the action of Congress, upon some +of which I have already remarked. + +The revenues of the Government during the fiscal year ending June 30, 1877, +were $269,000,586.62; the total expenditures for the same period were +$238,660,008.93, leaving a surplus revenue of $30,340,577.69. This has +substantially supplied the requirements of the sinking fund for that year. +The estimated revenues of the current fiscal year are $265,500,000, and the +estimated expenditures for the same period are $232,430,643.72. If these +estimates prove to be correct, there will be a surplus revenue of +$33,069,356.28--an amount nearly sufficient for the sinking fund for that +year. The estimated revenues for the next fiscal year are $269,250,000. It +appears from the report that during the last fiscal year the revenues of +the Government, compared with the previous year, have largely decreased. +This decrease, amounting to the sum of $18,481,452.54, was mainly in +customs duties, caused partly by a large falling off of the amount of +imported dutiable goods and partly by the general fall of prices in the +markets of production of such articles as pay ad valorem taxes. + +While this is felt injuriously in the diminution of the revenue, it has +been accompanied with a very large increase of exportations. The total +exports during the last fiscal year, including coin, have been +$658,637,457, and the imports have been $492,097,540, leaving a balance of +trade in favor of the United States amounting to the sum of $166,539,917, +the beneficial effects of which extend to all branches of business. + +The estimated revenue for the next fiscal year will impose upon Congress +the duty of strictly limiting appropriations, including the requisite sum +for the maintenance of the sinking fund, within the aggregate estimated +receipts. + +While the aggregate of taxes should not be increased, amendments might be +made to the revenue laws that would, without diminishing the revenue, +relieve the people from unnecessary burdens. A tax on tea and coffee is +shown by the experience not only of our own country, but of other +countries, to be easily collected, without loss by undervaluation or fraud, +and largely borne in the country of production. A tax of 10 cents a pound +on tea and 2 cents a pound on coffee would produce a revenue exceeding +$12,000,000, and thus enable Congress to repeal a multitude of annoying +taxes yielding a revenue not exceeding that sum. The internal-revenue +system grew out of the necessities of the war, and most of the legislation +imposing taxes upon domestic products under this system has been repealed. +By the substitution of a tax on tea and coffee all forms of internal +taxation may be repealed, except that on whisky, spirits, tobacco, and +beer. Attention is also called to the necessity of enacting more vigorous +laws for the protection of the revenue and for the punishment of frauds and +smuggling. This can best be done by judicious provisions that will induce +the disclosure of attempted fraud by undervaluation and smuggling. All +revenue laws should be simple in their provisions and easily understood. So +far as practicable, the rates of taxation should be in the form of specific +duties, and not ad valorem, requiring the judgment of experienced men to +ascertain values and exposing the revenue to the temptation of fraud. + +My attention has been called during the recess of Congress to abuses +existing in the collection of the customs, and strenuous efforts have been +made for their correction by Executive orders. The recommendations +submitted to the Secretary of the Treasury by a commission appointed to +examine into the collection of customs duties at the port of New York +contain many suggestions for the modification of the customs laws, to which +the attention of Congress is invited. + +It is matter of congratulation that notwithstanding the severe burdens +caused by the war the public faith with all creditors has been preserved, +and that as the result of this policy the public credit has continuously +advanced and our public securities are regarded with the highest favor in +the markets of the world. I trust that no act of the Government will cast a +shadow upon its credit. + +The progress of refunding the public debt has been rapid and satisfactory. +Under the contract existing when I entered upon the discharge of the duties +of my office, bonds bearing interest at the rate of 4 1/2 per cent were +being rapidly sold, and within three months the aggregate sales of these +bonds had reached the sum of $200,000,000. With my sanction the Secretary +of the Treasury entered into a new contract for the sale of 4 per cent +bonds, and within thirty days after the popular subscription for such bonds +was opened subscriptions were had amounting to $75,496,550, which were paid +for within ninety days after the date of subscription. By this process, +within but little more than one year, the annual interest on the public +debt was reduced in the sum of $3,775,000. + +I recommended that suitable provision be made to enable the people to +easily convert their savings into Government securities, as the best mode +in which small savings may be well secured and yield a moderate interest. +It is an object of public policy to retain among our own people the +securities of the United States. In this way our country is guarded against +their sudden return from foreign countries, caused by war or other +disturbances beyond our limits. + +The commerce of the United States with foreign nations, and especially the +export of domestic productions, has of late years largely increased; but +the greater portion of this trade is conducted in foreign vessels. The +importance of enlarging our foreign trade, and especially by direct and +speedy interchange with countries on this continent, can not be +overestimated; and it is a matter of great moment that our own shipping +interest should receive, to the utmost practical extent, the benefit of our +commerce with other lands. These considerations are forcibly urged by all +the large commercial cities of the country, and public attention is +generally and wisely attracted to the solution of the problems they +present. It is not doubted that Congress will take them up in the broadest +spirit of liberality and respond to the public demand by practical +legislation upon this important subject. + +The report of the Secretary of War shows that the Army has been actively +employed during the year, and has rendered very important service in +suppressing hostilities in the Indian country and in preserving peace and +protecting life and property in the interior as well as along the Mexican +border. A long and arduous campaign has been prosecuted, with final +complete success, against a portion of the Nez Perce' tribe of Indians. A +full account of this campaign will be found in the report of the General of +the Army. It will be seen that in its course several severe battles were +fought, in which a number of gallant officers and men lost their lives. I +join with the Secretary of War and the General of the Army in awarding to +the officers and men employed in the long and toilsome pursuit and in the +final capture of these Indians the honor and praise which are so justly +their due. + +The very serious riots which occurred in several of the States in July last +rendered necessary the employment of a considerable portion of the Army to +preserve the peace and maintain order. In the States of West Virginia, +Maryland, Pennsylvania, and Illinois these disturbances were so formidable +as to defy the local and State authorities, and the National Executive was +called upon, in the mode provided by the Constitution and laws, to furnish +military aid. I am gratified to be able to state that the troops sent in +response to these calls for aid in the suppression of domestic violence +were able, by the influence of their presence in the disturbed regions, to +preserve the peace and restore order without the use of force. In the +discharge of this delicate and important duty both officers and men acted +with great prudence and courage, and for their services deserve the thanks +of the country. + +Disturbances along the Rio Grande in Texas, to which I have already +referred, have rendered necessary the constant employment of a military +force in that vicinity. A full report of all recent military operations in +that quarter has been transmitted to the House of Representatives in answer +to a resolution of that body, and it will therefore not be necessary to +enter into details. I regret to say that these lawless incursions into our +territory by armed bands from the Mexican side of the line, for the purpose +of robbery, have been of frequent occurrence, and in spite of the most +vigilant efforts of the commander of our forces the marauders have +generally succeeded in escaping into Mexico with their plunder. In May last +I gave orders for the exercise of the utmost vigilance on the part of our +troops for the suppression of these raids and the punishment of the guilty +parties, as well as the recapture of property stolen by them. General Ord, +commanding in Texas, was directed to invite the cooperation of the Mexican +authorities in efforts to this end, and to assure them that I was anxious +to avoid giving the least offense to Mexico. At the same time, he was +directed to give notice of my determination to put an end to the invasion +of our territory by lawless bands intent upon the plunder of our peaceful +citizens, even if the effectual punishment of the outlaws should make the +crossing of the border by our troops in their pursuit necessary. It is +believed that this policy has had the effect to check somewhat these +depredations, and that with a considerable increase of our force upon that +frontier and the establishment of several additional military posts along +the Rio Grande, so as more effectually to guard that extensive border, +peace may be preserved and the lives and property of our citizens in Texas +fully protected. + +Prior to the 1st day of July last the Army was, in accordance with law, +reduced to the maximum of 25,000 enlisted men, being a reduction of 2,500 +below the force previously authorized. This reduction was made, as required +by law, entirely from the infantry and artillery branches of the service, +without any reduction of the cavalry. Under the law as it now stands it is +necessary that the cavalry regiments be recruited to 100 men in each +company for service on the Mexican and Indian frontiers. The necessary +effect of this legislation is to reduce the infantry and artillery arms of +the service below the number required for efficiency, and I concur with the +Secretary of War in recommending that authority be given to recruit all +companies of infantry to at least 50 men and all batteries of artillery to +at least 75 men, with the power, in case of emergency, to increase the +former to 100 and the latter to 122 men each. + +I invite your special attention to the following recommendations of the +Secretary of War: + +First. That provision be made for supplying to the Army a more abundant and +better supply of reading matter. + +Second. That early action be taken by Congress looking to a complete +revision and republication of the Army Regulations. + +Third. That section 1258 of the Revised Statutes, limiting the number of +officers on the retired list, be repealed. + +Fourth. That the claims arising under the act of July 4, 1864, for supplies +taken by the Army during the war, be taken from the offices of the +Quartermaster and Commissary Generals and transferred to the Southern +Claims Commission, or some other tribunal having more time and better +facilities for their prompt investigation and decision than are possessed +by these officers. + +Fifth. That Congress provide for an annuity fund for the families of +deceased soldiers, as recommended by the paymaster-General of the Army. + +The report of the Secretary of the Navy shows that we have six squadrons +now engaged in the protection of our foreign commerce and other duties +pertaining to the naval service. The condition and operations of the +Department are also shown. The total expenditures for the fiscal year +ending June 30, 1877, were $16,077,974.54. There are unpaid claims against +the Department chargeable to the last year, which are presented to the +consideration of Congress by the report of the Secretary. The estimates for +the fiscal year commencing July 1, 1878, are $16,233,234.40, exclusive of +the sum of $2,314,231 submitted for new buildings, repairs, and +improvements at the several navy-yards. The appropriations for the present +fiscal year, commencing July 1, 1877, are $13,592,932.90. The amount drawn +from the Treasury from July 1 to November 1, 1877, is $5,343,037.40, of +which there is estimated to be yet available $1,029,528.30, showing the +amount of actual expenditure during the first four months of the present +fiscal year to have been $4,313,509.10. + +The report of the Postmaster-General contains a full and clear statement of +the operations and condition of the Post-Office Department. The ordinary +revenues of the Department for the fiscal year ending June 30, 1877, +including receipts from the money-order business and from official stamps +and stamped envelopes, amounted to the sum of $27,531,585.26. The +additional sum of $7,013,000 was realized from appropriations from the +general Treasury for various purposes, making the receipts from all sources +$34,544,885.26. The total expenditures during the fiscal year amounted to +$33,486,322.44, leaving an excess of total receipts over total expenditures +of $1,058,562.82, and an excess of total expenditures over ordinary +receipts of $5,954,737.18. Deducting from the total receipts the sum of +$63,261.84, received from international money orders of the preceding +fiscal year, and deducting from the total expenditures the sum of +$1,163,818.20, paid on liabilities incurred in previous fiscal years, the +expenditures and receipts appertaining to the business of the last fiscal +year were as follows: + +Expenditures - $32,322,504.24 + +Receipts (ordinary, from money-order business and + +from official postage stamps) - 27,468,323,420 - + +*** + +State of the Union Address +Rutherford B. Hayes +December 2, 1878 + +Fellow-Citizens of the Senate and House of Representatives: + +Our heartfelt gratitude is due to the Divine Being who holds in His hands +the destinies of nations for the continued bestowal during the last year of +countless blessings upon our country. + +We are at peace with all other nations. Our public credit has greatly +improved, and is perhaps now stronger than ever before. Abundant harvests +have rewarded the labors of those who till the soil, our manufacturing +industries are reviving, and it is believed that general prosperity, which +has been so long anxiously looked for, is at last within our reach. + +The enjoyment of health by our people generally has, however, been +interrupted during the past season by the prevalence of a fatal pestilence +(the yellow fever) in some portions of the Southern States, creating an +emergency which called for prompt and extraordinary measures of relief. The +disease appeared as an epidemic at New Orleans and at other places on the +Lower Mississippi soon after midsummer. It was rapidly spread by fugitives +from the infected cities and towns, and did not disappear until early in +November. The States of Louisiana, Mississippi, and Tennessee have suffered +severely. About 100,000 cases are believed to have occurred, of which about +20,000, according to intelligent estimates, proved fatal. It is impossible +to estimate with any approach to accuracy the loss to the country +occasioned by this epidemic It is to be reckoned by the hundred millions of +dollars. The suffering and destitution that resulted excited the deepest +sympathy in all parts of the Union. Physicians and nurses hastened from +every quarter to the assistance of the afflicted communities. Voluntary +contributions of money and supplies, in every needed form, were speedily +and generously furnished. The Government was able to respond in some +measure to the call for help, by providing tents, medicines, and food for +the sick and destitute, the requisite directions for the purpose being +given in the confident expectation that this action of the Executive would +receive the sanction of Congress. About 1,800 tents, and rations of the +value of about $25,000, were sent to cities and-towns which applied for +them, full details of which will be furnished to Congress by the proper +Department. + +The fearful spread of this pestilence has awakened a very general public +sentiment in favor of national sanitary administration, which shall not +only control quarantine, but have the sanitary supervision of internal +commerce in times of epidemics, and hold an advisory relation to the State +and municipal health authorities, with power to deal with whatever +endangers the public health, and which the municipal and State authorities +are unable to regulate. The national quarantine act approved April 29, +1878, which was passed too late in the last session of Congress to provide +the means for carrying it into practical operation during the past season, +is a step in the direction here indicated. In view of the necessity for the +most effective measures, by quarantine and otherwise, for the protection of +our seaports and the country generally from this and other epidemics, it is +recommended that Congress give to the whole subject early and careful +consideration. + +The permanent pacification of the country by the complete protection of all +citizens in every civil and political right continues to be of paramount +interest with the great body of our people. Every step in this direction is +welcomed with public approval, and every interruption of steady and uniform +progress to the desired consummation awakens general uneasiness and +widespread condemnation. The recent Congressional elections have furnished +a direct and trustworthy test of the advance thus far made in the practical +establishment of the right of suffrage secured by the Constitution to the +liberated race in the Southern States. All disturbing influences, real or +imaginary, had been removed from all of these States. + +The three constitutional amendments which conferred freedom and equality of +civil and political rights upon the colored people of the South were +adopted by the concurrent action of the great body of good citizens who +maintained the authority of the National Government and the integrity and +perpetuity of the Union at such a cost of treasure and life, as a wise and +necessary embodiment in the organic law of the just results of the war. The +people of the former slaveholding States accepted these results, and gave +in every practicable form assurances that the thirteenth, fourteenth, and +fifteenth amendments, and laws passed in pursuance thereof, should in good +faith be enforced, rigidly and impartially, in letter and spirit, to the +end that the humblest citizen, without distinction of race or color, should +under them receive full and equal protection in person and property and in +political rights and privileges. By these constitutional amendments the +southern section of the Union obtained a large increase of political power +in Congress and in the electoral college, and the country justly expected +that elections would proceed, as to the enfranchised race, upon the same +circumstances of legal and constitutional freedom and protection which +obtained in all the other States of the Union. The friends of law and order +looked forward to the conduct of these elections as offering to the general +judgment of the country an important opportunity to measure the degree in +which the right of suffrage could be exercised by the colored people and +would be respected by their fellow-citizens; but a more general enjoyment +of freedom of suffrage by the colored people and a more just and generous +protection of that freedom by the communities of which they form a part +were generally anticipated than the record of the elections discloses. In +some of those States in which the colored people have been unable to make +their opinions felt in the elections the result is mainly due to influences +not easily measured or remedied by legal protection; but in the States of +Louisiana and South Carolina at large, and in some particular Congressional +districts outside of those States, the records of the elections seem to +compel the conclusion that the rights of the colored voters have been +overridden and their participation in the elections not permitted to be +either general or free. + +It will be for the Congress for which these elections were held to make +such examinations into their conduct as may be appropriate to determine the +validity of the claims of members to their seats. In the meanwhile it +becomes the duty of the executive and judicial departments of the +Government, each in its province, to inquire into and punish violations of +the laws of the United States which have occurred. I can but repeat what I +said in this connection in my last message, that whatever authority rests +with me to this end I shall not hesitate to put forth; and I am unwilling +to forego a renewed appeal to the legislatures, the courts, the executive +authorities, and the people of the States where these wrongs have been +perpetrated to give their assistance toward bringing to justice the +offenders and preventing a repetition of the crimes. No means within my +power will be spared to obtain a full and fair investigation of the alleged +crimes and to secure the conviction and just punishment of the guilty. + +It is to be observed that the principal appropriation made for the +Department of Justice at the last session contained the following clause: +And for defraying the expenses which may be incurred in the enforcement of +the act approved February 28, 1871, entitled "An act to amend an act +approved May 31, 1870, entitled 'An act to enforce the rights of citizens +of the United States to vote in the several States of this Union, and for +other purposes,'" or any acts amendatory thereof or supplementary thereto. +It is the opinion of the Attorney-General that the expenses of these +proceedings will largely exceed the amount which was thus provided, and I +rely confidently upon Congress to make adequate appropriations to enable +the executive department to enforce the laws. + +I respectfully urge upon your attention that the Congressional elections, +in every district, in a very important sense, are justly a matter of +political interest and concern throughout the whole country. Each State, +every political party, is entitled to the share of power which is conferred +by the legal and constitutional suffrage. It is the right of every citizen +possessing the qualifications prescribed by law to east one unintimidated +ballot and to have his ballot honestly counted. So long as the exercise of +this power and the enjoyment of this right are common and equal, +practically as well as formally, submission to the results of the suffrage +will be accorded loyally and cheerfully, and all the departments of +Government will feel the true vigor of the popular will thus expressed. No +temporary or administrative interests of Government, however urgent or +weighty, will ever displace the zeal of our people in defense of the +primary rights of citizenship. They understand that the protection of +liberty requires the maintenance in full vigor of the manly methods of free +speech, free press, and free suffrage, and will sustain the full authority +of Government to enforce the laws which are framed to preserve these +inestimable rights. The material progress and welfare of the States depend +on the protection afforded to their citizens. There can be no peace without +such protection, no prosperity without peace, and the whole country is +deeply interested in the growth and prosperity of all its parts. + +While the country has not yet reached complete unity of feeling and +reciprocal confidence between the communities so lately and so seriously +estranged, I feel an absolute assurance that the tendencies are in that +direction, and with increasing force. The power of public opinion will +override all political prejudices and all sectional or State attachments in +demanding that all over our wide territory the name and character of +citizen of the United States shall mean one and the same thing and carry +with them unchallenged security and respect. + +Our relations with other countries continue peaceful. Our neutrality in +contests between foreign powers has been maintained and respected. + +The Universal Exposition held at Paris during the past summer has been +attended by large numbers of our citizens. The brief period allowed for the +preparation and arrangement of the contributions of our citizens to this +great exposition was well employed in energetic and judicious efforts to +overcome this disadvantage. These efforts, led and directed by the +commissioner-general, were remarkably successful, and the exhibition of the +products of American industry was creditable and gratifying in scope and +character. The reports of the United States commissioners, giving its +results in detail, will be duly laid before you. Our participation in this +international competition for the favor and the trade of the world may be +expected to produce useful and important results--in promoting intercourse, +friendship, and commerce with other nations. + +In accordance with the provisions of the act of February 28, 1878, three +commissioners were appointed to an international conference on the subject +of adopting a common ratio between gold and silver, for the purpose of +establishing internationally the use of bimetallic money and securing +fixity of relative value between those metals. + +Invitations were addressed to the various governments which had expressed a +willingness to participate in its deliberations. The conference held its +meetings in Paris in August last. The report of the commissioners, herewith +submitted, will show its results. No common ratio between gold and silver +could be agreed upon by the conference. The general conclusion was reached +that it is necessary to maintain in the world the monetary functions of +silver as well as of gold, leaving the selection of the use of one or the +other of these two metals, or of both, to be made by each state. + +Congress having appropriated at its last session the sum of $5,500,000 to +pay the award of the joint commission at Halifax, if, after correspondence +with the British Government on the subject of the conformity of the award +to the requirements of the treaty and to the terms of the question thereby +submitted to the commission, the President shall deem it his duty to make +the payment, communications upon these points were addressed to the British +Government through the legation of the United States at London. Failing to +obtain the concurrence of the British Government in the views of this +Government respecting the award, I have deemed it my duty to tender the sum +named within the year fixed by the treaty, accompanied by a notice of the +grounds of the payment and a protest against any other construction of the +same. The correspondence upon this subject will be laid before you. + +The Spanish Government has officially announced the termination of the +insurrection in Cuba and the restoration of peace throughout that island. +Confident expectations are expressed of a revival of trade and prosperity, +which it is earnestly hoped may prove well rounded. Numerous claims of +American citizens for relief for injuries or restoration of property have +been among the incidents of the long-continued hostilities. Some of these +claims are in process of adjustment by Spain, and the others are promised +early and careful consideration. + +The treaty made with Italy in regard to reciprocal consular privileges has +been duly ratified and proclaimed. + +No questions of grave importance have arisen with any other of the European +powers. + +The Japanese Government has been desirous of a revision of such parts of +its treaties with foreign powers as relate to commerce, and it is +understood has addressed to each of the treaty powers a request to open +negotiations with that view. The United States Government has been inclined +to regard the matter favorably. Whatever restrictions upon trade with Japan +are found injurious to that people can not but affect injuriously nations +holding commercial intercourse with them. Japan, after a long period of +seclusion, has within the past few years made rapid strides in the path of +enlightenment and progress, and, not unreasonably, is looking forward to +the time when her relations with the nations of Europe and America shall be +assimilated to those which they hold with each other. A treaty looking to +this end has been made, which will be submitted for the consideration of +the Senate. + +After an interval of several years the Chinese Government has again sent +envoys to the United States. They have been received, and a permanent +legation is now established here by that Government. It is not doubted that +this step will be of advantage to both nations in promoting friendly +relations and removing causes of difference. + +The treaty with the Samoan Islands, having been duly ratified and accepted +on the part of both Governments, is now in operation, and a survey and +soundings of the harbor of Pago-Pago have been made by a naval vessel of +the United States, with a view of its occupation as a naval station if +found desirable to the service. + +Since the resumption of diplomatic relations with Mexico correspondence has +been opened and still continues between the two Governments upon the +various questions which at one time seemed to endanger their relations. +While no formal agreement has been reached as to the troubles on the +border, much has been done to repress and diminish them. The effective +force of United States troops on the Rio Grande, by a strict and faithful +compliance with instructions, has done much to remove the sources of +dispute, and it is now understood that a like force of Mexican troops on +the other side of the river is also making an energetic movement against +the marauding Indian tribes. This Government looks with the greatest +satisfaction upon every evidence of strength in the national authority of +Mexico, and upon every effort put forth to prevent or to punish incursions +upon our territory. Reluctant to assume any action or attitude in the +control of these incursions by military movements across the border not +imperatively demanded for the protection of the lives and property of our +own citizens, I shall take the earliest opportunity consistent with the +proper discharge of this plain duty to recognize the ability of the Mexican +Government to restrain effectively violations of our territory. It is +proposed to hold next year an international exhibition in Mexico, and it is +believed that the display of the agricultural and manufacturing products of +the two nations will tend to better understanding and increased commercial +intercourse between their people. + +With Brazil and the Republics of Central and South America some steps have +been taken toward the development of closer commercial intercourse. +Diplomatic relations have been resumed with Colombia and with Bolivia. A +boundary question between the Argentine Republic and Paraguay has been +submitted by those Governments for arbitration to the President of the +United States, and I have, after careful examination, given a decision upon +it. + +A naval expedition up the Amazon and Madeira rivers has brought back +information valuable both for scientific and commercial purposes. A like +expedition is about visiting the coast of Africa and the Indian Ocean. The +reports of diplomatic and consular officers in relation to the development +of our foreign commerce have furnished many facts that have proved of +public interest and have stimulated to practical exertion the enterprise of +our people. + +The report of the Secretary of the Treasury furnishes a detailed statement +of the operations of that Department of the Government and of the condition +of the public finances. + +The ordinary revenues from all sources for the fiscal year ended June 30, +1878, were $257,763,878.70; the ordinary expenditures for the same period +were $236,964,326.80, leaving a surplus revenue for the year of +$20,799,551.90. The receipts for the present fiscal year, ending June 30, +1879, actual and estimated, are as follows: Actual receipts for the first +quarter, commencing July 1, 1878, $73,389,743.43; estimated receipts for +the remaining three quarters of the year, $191,110,256.57; total receipts +for the current fiscal year, actual and estimated, $264,500,000. The +expenditures for the same period will be, actual and estimated, as follows: +For the quarter commencing July 1, 1878, actual expenditures, +$73,344,573.27; and for the remaining three quarters of the year the +expenditures are estimated at $166,755,426.73, making the total +expenditures $240,100,000, and leaving an estimated surplus revenue for the +year ending June 30, 1879, of $24,400,000. The total receipts during the +next fiscal year, ending June 30, 1880, estimated according to existing +laws, will be $264,500,000, and the estimated ordinary expenditures for the +same period will be $236,320,412.68, leaving a surplus of $28,179,587.32 +for that year. + +In the foregoing statements of expenditures, actual and estimated, no +amount is allowed for the sinking fund provided for by the act approved +February 25, 1862, which requires that 1 per cent of the entire debt of the +United States shall be purchased or paid within each fiscal year, to be set +apart as a sinking fund. There has been, however, a substantial compliance +with the conditions of the law. By its terms the public debt should have +been reduced between 1862 and the close of the last fiscal year +$518,361,806.28; the actual reduction of the ascertained debt in that +period has been $720,644,739.61, being in excess of the reduction required +by the sinking fund act $202,282,933.33. + +The amount of the public debt, less cash in the Treasury, November 1, 1878, +was $2,024,200,083.18 a reduction since the same date last year of +$23,150,617.39. + +The progress made during the last year in refunding the public debt at +lower rates of interest is very gratifying. The amount of 4 per cent bonds +sold during the present year prior to November 23, 1878, is $100,270,900, +and 6 per cent bonds, commonly known as five-twenties, to an equal amount, +have been or will be redeemed as calls mature. + +It has been the policy of the Department to place the 4 per cent bonds +within easy reach of every citizen who desires to invest his savings, +whether small or great, in these securities. The Secretary of the Treasury +recommends that the law be so modified that small sums may be invested, and +that through the post-offices or other agents of the Government the freest +opportunity may be given in all parts of the country for such investments. + +The best mode suggested is that the Department be authorized to issue +certificates of deposit, of the denomination of $10, bearing interest at +the rate of 3.65 per cent per annum and convertible at any time within one +year after their issue into the 4 per cent bonds authorized by the +refunding act, and to be issued only in exchange for United States notes +sent to the Treasury by mail or otherwise. Such a provision of law, +supported by suitable regulations, would enable any person readily, without +cost or risk, to convert his money into an interest-bearing security of the +United States, and the money so received could be applied to the redemption +of 6 per cent bonds. + +The coinage of gold during the last fiscal year was $52,798,980. The +coinage of silver dollars under the act passed February 28, 1878, amounted +on the 23d of November, 1878, to $19,814,550, of which amount $4,984,947 +are in circulation, and the balance, $14,829.,603, is still in the +possession of the Government. + +With views unchanged with regard to the act under which the coinage of +silver proceeds, it has been the purpose of the Secretary faithfully to +execute the law and to afford a fair trial to the measure. + +In the present financial condition of the country I am persuaded that the +welfare of legitimate business and industry of every description will be +best promoted by abstaining from all attempts to make radical changes in +the existing financial legislation. Let it be understood that during the +coming year the business of the country will be undisturbed by governmental +interference with the laws affecting it, and we may confidently expect that +the resumption of specie payments, which will take place at the appointed +time, will be successfully and easily maintained, and that it will be +followed by a healthful and enduring revival of business prosperity. + +Let the healing influence of time, the inherent energies of our people, and +the boundless resources of our country have a fair opportunity, and relief +from present difficulties will surely follow. + +The report of the Secretary of War shows that the Army has been well and +economically supplied; that our small force has been actively employed and +has faithfully performed all the service required of it. The morale of the +Army has improved and the number of desertions has materially decreased +during the year. + +The Secretary recommends-- + +1. That a pension be granted to the widow of the late Lieutenant Henry H. +Benner, Eighteenth Infantry, who lost his life by yellow fever while in +command of the steamer. J.M. Chambers, sent with supplies for the relief of +sufferers in the South from that disease. + +2. The establishment of the annuity scheme for the benefit of the heirs of +deceased officers, as suggested by the Paymaster-General. + +3. The adoption by Congress of a plan for the publication of the records of +the War of the Rebellion, now being prepared for that purpose. + +4. The increase of the extra per diem of soldier teachers employed in post +schools, and liberal appropriations for the erection of buildings for +schools and libraries at the different posts. + +5. The repeal or amendment of the act of June 18, 1878, forbidding the use +of the Army "as a posse comitatus, or otherwise, for the purpose of +executing the laws, except in such cases and under such circumstances as +such employment of said force may be expressly authorized by the +Constitution or by act of Congress." + +6. The passage of a joint resolution of Congress legalizing the issues of +rations, tents, and medicines which were made for the relief of sufferers +from yellow fever. + +7. That provision be made for the erection of a fireproof building for the +preservation of certain valuable records, now constantly exposed to +destruction by fire. + +These recommendations are all commended to your favorable consideration. + +The report of the Secretary of the Navy shows that the Navy has improved +during the last fiscal year. Work has been done on seventy-five vessels, +ten of which have been thoroughly repaired and made ready for sea. Two +others are in rapid progress toward completion. The total expenditures of +the year, including the amount appropriated for the deficiencies of the +previous year, were $17,468,392.65. The actual expenses chargeable to the +year, exclusive of these deficiencies, were $13,306,914.09, or $767,199.18 +less than those of the previous year, and $4,928,677.74 less than the +expenses including the deficiencies. The estimates for the fiscal year +ending June 30, 1880, are $14,562,381.45, exceeding the appropriations of +the present year only $33,949.75, which excess is occasioned by the demands +of the Naval Academy and the Marine Corps, as explained in the Secretary's +report. The appropriations for the present fiscal year are $14,528,431.70, +which, in the opinion of the Secretary, will be ample for all the current +expenses of the Department during the year. The amount drawn from the +Treasury from July 1 to November 1, 1878, is $4,740,544.14, of which +$70,980.75 has been refunded, leaving as the expenditure for that period +$4,669,563.39, or $520,899.24 less than the corresponding period of the +last fiscal year. + +The report of the Postmaster-General embraces a detailed statement of the +operations of the Post-Office Department. The expenditures of that +Department for the fiscal year ended June 30, 1878, were $34,165,084.49. +The receipts, including sales of stamps, money-order business, and official +stamps, were $29,277,516.95. The sum of $290,436.90, included in the +foregoing statement of expenditures, is chargeable to preceding years, so +that the actual expenditures for the fiscal year ended June 30, 1878, are +$33,874,647.59. The amount drawn from the Treasury on appropriations, in +addition to the revenues of the Department, was $5,307,652.82. The +expenditures for the fiscal year ending June 30, 1880, are estimated at +$36,571,900 and the receipts from all sources at $30,664,023.90, leaving a +deficiency to be appropriated out of the Treasury of $5,907,876.10. The +report calls attention to the fact that the compensation of postmasters and +of railroads for carrying the mail is regulated by law, and that the +failure of Congress to appropriate the amounts required for these purposes +does not relieve the Government of responsibility, but necessarily +increases the deficiency bills which Congress will be called upon to pass. + +In providing for the postal service the following questions are presented: +Should Congress annually appropriate a sum for its expenses largely in +excess of its revenues, or should such rates of postage be established as +will make the Department self-sustaining? Should the postal service be +reduced by excluding from the mails matter which does not pay its way? +Should the number of post routes be diminished? Should other methods be +adopted which will increase the revenues or diminish the expenses of the +postal service? + +The International Postal Congress which met at Paris May 1, 1878, and +continued in session until June 4 of the same year, was composed of +delegates from nearly all the civilized countries of the world. It adopted +a new convention (to take the place of the treaty concluded at Berne +October 9, 1874), which goes into effect on the 1st of April, 1879, between +the countries whose delegates have signed it. It was ratified and approved, +by and with the consent of the President, August 13, 1878. A synopsis of +this Universal Postal Convention will be found in the report of the +Postmaster-General, and the full text in the appendix thereto. In its +origin the Postal Union comprised twenty-three countries, having a +population of 350,000,000 people. On the 1st of April next it will comprise +forty-three countries and colonies, with a population of more than +650,000,000 people, and will soon, by the accession of the few remaining +countries and colonies which maintain organized postal services, constitute +in fact as well as in name, as its new title indicates, a universal union, +regulating, upon a uniform basis of cheap postage rates, the postal +intercourse between all civilized nations. + +Some embarrassment has arisen out of the conflict between the customs laws +of this country and the provisions of the Postal Convention in regard to +the transmission of foreign books and newspapers to this country by mail. +It is hoped that Congress will be able to devise some means of reconciling +the difficulties which have thus been created, so as to do justice to all +parties involved. + +The business of the Supreme Court and of the courts in many of the circuits +has increased to such an extent during the past year that additional +legislation is imperative to relieve and prevent the delay of justice and +possible oppression to suitors which is thus occasioned. The encumbered +condition of these dockets is presented anew in the report of the +Attorney-General, and the remedy suggested is earnestly urged for +Congressional action. The creation of additional circuit judges, as +proposed, would afford a complete remedy, and would involve an expense, at +the present rate of salaries of not more than $60,000 a year. + +The annual reports of the Secretary of the Interior and of the Commissioner +of Indian Affairs present an elaborate account of the present condition of +the Indian tribes and of that branch of the public service which ministers +to their interests. While the conduct of the Indians generally has been +orderly and their relations with their neighbors friendly and peaceable, +two local disturbances have occurred, which were deplorable in their +character, but remained, happily, confined to a comparatively small number +of Indians. The discontent among the Bannocks, which led first to some acts +of violence on the part of some members of the tribe and finally to the +outbreak, appears to have been caused by an insufficiency of food on the +reservation, and this insufficiency to have been owing to the inadequacy of +the appropriations made by Congress to the wants of the Indians at a time +when the Indians were prevented from supplying the deficiency by hunting. +After an arduous pursuit by the troops of the United States, and several +engagements, the hostile Indians were reduced to subjection, and the larger +part of them surrendered themselves as prisoners. In this connection I +desire to call attention to the recommendation made by the Secretary of the +Interior, that a sufficient fund be placed at the disposal of the +Executive, to be used, with proper accountability, at discretion, in sudden +emergencies of the Indian service. + +The other case of disturbance was that of a band of Northern Cheyennes, who +suddenly left their reservation in the Indian Territory and marched rapidly +through the States of Kansas and Nebraska in the direction of their old +hunting grounds, committing murders and other crimes on their way. From +documents accompanying the report of the Secretary of the Interior it +appears that this disorderly band was as fully supplied with the +necessaries of life as the 4,700 other Indians who remained quietly on the +reservation, and that the disturbance was caused by men of a restless and +mischievous disposition among the Indians themselves. Almost the whole of +this band have surrendered to the military authorities; and it is a +gratifying fact that when some of them had taken refuge in the camp of the +Red Cloud Sioux, with whom they had been in friendly relations, the Sioux +held them as prisoners and readily gave them up to the officers of the +United States, thus giving new proof of the loyal spirit which, alarming +rumors to the contrary notwithstanding, they have uniformly shown ever +since the wishes they expressed at the council of September, 1877, had been +complied with. + +Both the Secretary of the Interior and the Secretary of War unite in the +recommendation that provision be made by Congress for the organization of a +corps of mounted "Indian auxiliaries," to be under the control of the Army +and to be used for the purpose of keeping the Indians on their reservations +and preventing or repressing disturbance on their part. I earnestly concur +in this recommendation. It is believed that the organization of such a body +of Indian cavalry, receiving a moderate pay from the Government, would +considerably weaken the restless element among the Indians by withdrawing +from it a number of young men and giving them congenial employment under +the Government, it being a matter of experience that Indians in our service +almost without exception are faithful in the performance of the duties +assigned to them. Such an organization would materially aid the Army in the +accomplishment of a task for which its numerical strength is sometimes +found insufficient. + +But while the employment of force for the prevention or repression of +Indian troubles is of occasional necessity, and wise preparation should be +made to that end, greater reliance must be placed on humane and civilizing +agencies for the ultimate solution of what is called the Indian problem. It +may be very difficult and require much patient effort to curb the unruly +spirit of the savage Indian to the restraints of civilized life, but +experience shows that it is not impossible. Many of the tribes which are +now quiet and orderly and self-supporting were once as savage as any that +at present roam over the plains or in the mountains of the far West, and +were then considered inaccessible to civilizing influences. It may be +impossible to raise them fully up to the level of the white population of +the United States; but we should not forget that they are the aborigines of +the country, and called the soil their own on which our people have grown +rich, powerful, and happy. We owe it to them as a moral duty to help them +in attaining at least that degree of civilization which they may be able to +reach. It is not only our duty, it is also our interest to do so. Indians +who have become agriculturists or herdsmen, and feel an interest in +property, will thenceforth cease to be a warlike and disturbing element. It +is also a well-authenticated fact that Indians are apt to be peaceable and +quiet when their children are at school, and I am gratified to know, from +the expressions of Indians themselves and from many concurring reports, +that there is a steadily increasing desire, even among Indians belonging to +comparatively wild tribes, to have their children educated. I invite +attention to the reports of the Secretary of the Interior and the +Commissioner of Indian Affairs touching the experiment recently +inaugurated, in taking fifty Indian children, boys and girls, from +different tribes, to the Hampton Normal Agricultural Institute in Virginia, +where they are to receive an elementary English education and training in +agriculture and other useful works, to be returned to their tribes, after +the completed course, as interpreters, instructors, and examples. It is +reported that the officer charged with the selection of those children +might have had thousands of young Indians sent with him had it been +possible to make provision for them. I agree with the Secretary of the +Interior in saying that "the result of this interesting experiment, if +favorable, may be destined to become an important factor in the advancement +of civilization among the Indians." + +The question whether a change in the control of the Indian service should +be made was at the last session of Congress referred to a committee for +inquiry and report. Without desiring to anticipate that report, I venture +to express the hope that in the decision of so important a question the +views expressed above may not be lost sight of, and that the decision, +whatever it may be, will arrest further agitation of this subject, such +agitation being apt to produce a disturbing effect upon the service, as +well as on the Indians themselves. + +In the enrollment of the bill making appropriations for sundry civil +expenses, at the last session of Congress, that portion which provided for +the continuation of the Hot Springs Commission was omitted. As the +commission had completed the work of taking testimony on the many +conflicting claims, the suspension of their labors, before determining the +rights of claimants, threatened for a time to embarrass the interests, not +only of the Government, but also of a large number of the citizens of Hot +Springs, who were waiting for final action on their claims before beginning +contemplated improvements. In order to prevent serious difficulties, which +were apprehended, and at the solicitation of many leading citizens of Hot +Springs and others interested in the welfare of the town, the Secretary of +the Interior was authorized to request the late commissioners to take +charge of the records of their proceedings and to perform such work as +could properly be done by them under such circumstances to facilitate the +future adjudication of the claims at an early day and to preserve the +status of the claimants until their rights should be finally determined. +The late commissioners complied with that request, and report that the +testimony in all the cases has been written out, examined, briefed, and so +arranged as to facilitate an early settlement when authorized by law. It is +recommended that the requisite authority be given at as early a day in the +session as possible, and that a fair compensation be allowed the late +commissioners for the expense incurred and the labor performed by them +since the 25th of June last. + +I invite the attention of Congress to the recommendations made by the +Secretary of the Interior with regard to the preservation of the timber on +the public lands of the United States. The protection of the public +property is one of the first duties of the Government. The Department of +the Interior should therefore be enabled by sufficient appropriations to +enforce the laws in that respect. But this matter appears still more +important as a question of public economy. The rapid destruction of our +forests is an evil fraught with the gravest consequences, especially in the +mountainous districts, where the rocky slopes, once denuded of their trees, +will remain so forever. There the injury, once done, can not be repaired. I +fully concur with the Secretary of the Interior in the opinion that for +this reason legislation touching the public timber in the mountainous +States and Territories of the West should be especially well considered, +and that existing laws in which the destruction of the forests is not +sufficiently guarded against should be speedily modified. A general law +concerning this important subject appears to me to be a matter of urgent +public necessity. + +From the organization of the Government the importance of encouraging by +all possible means the increase of our agricultural productions has been +acknowledged and urged upon the attention of Congress and the people as the +surest and readiest means of increasing our substantial and enduring +prosperity. + +The words of Washington are as applicable to-day as when, in his eighth +annual message, he said: It will not be doubted that, with reference either +to individual or national welfare, agriculture is of primary importance. In +proportion as nations advance in population and other circumstances of +maturity this truth becomes more apparent, and renders the cultivation of +the soil more and more an object of public patronage. Institutions for +promoting it grow up, supported by the public purse; and to what object can +it be dedicated with greater propriety? Among the means which have been +employed to this end none have been attended with greater success than the +establishment of boards (composed of proper characters) charged with +collecting and diffusing information, and enabled by premiums and small +pecuniary aids to encourage and assist a spirit of discovery and +improvement. This species of establishment contributes doubly to the +increase of improvement, by stimulating to enterprise and experiment, and +by drawing to a common center the results everywhere of individual skill +and observation and spreading them thence over the whole nation. Experience +accordingly hath shewn that they are very cheap instruments of immense +national benefits. The preponderance of the agricultural over any other +interest in the United States entitles it to all the consideration claimed +for it by Washington. About one-half of the population of the United States +is engaged in agriculture. The value of the agricultural products of the +United States for the year 1878 is estimated at $3,000,000,000. The exports +of agricultural products for the year 1877, as appears from the report of +the Bureau of Statistics, were $524,000,000. The great extent of our +country, with its diversity of soil and climate, enables us to produce +within our own borders and by our own labor not only the necessaries, but +most of the luxuries, that are consumed in civilized countries. Yet, +notwithstanding our advantages of soil, climate, and inter-communication, +it appears from the statistical statements in the report of the +Commissioner of Agriculture that we import annually from foreign lands many +millions of dollars worth of agricultural products which could be raised in +our own country. + +Numerous questions arise in the practice of advanced agriculture which can +only be answered by experiments, often costly and sometimes fruitless, +which are beyond the means of private individuals and are a just and proper +charge on the whole nation for the benefit of the nation. It is good +policy, especially in times of depression and uncertainty in other business +pursuits, with a vast area of uncultivated, and hence unproductive, +territory, wisely opened to homestead settlement, to encourage by every +proper and legitimate means the occupation and tillage of the soil. The +efforts of the Department of Agriculture to stimulate old and introduce new +agricultural industries, to improve the quality and increase the quantity +of our products, to determine the value of old or establish the importance +of new methods of culture, are worthy of your careful and favorable +consideration, and assistance by such appropriations of money and +enlargement of facilities as may seem to be demanded by the present +favorable conditions for the growth and rapid development of this important +interest. + +The abuse of animals in transit is widely attracting public attention. A +national convention of societies specially interested in the subject has +recently met at Baltimore, and the facts developed, both in regard to +cruelties to animals and the effect of such cruelties upon the public +health, would seem to demand the careful consideration of Congress and the +enactment of more efficient laws for the prevention of these abuses. + +The report of the Commissioner of the Bureau of Education shows very +gratifying progress throughout the country in all the interests committed +to the care of this important office. The report is especially encouraging +with respect to the extension of the advantages of the common-school system +in sections of the country where the general enjoyment of the privilege of +free schools is not yet attained. + +To education more than to any other agency we are to look as the resource +for the advancement of the people in the requisite knowledge and +appreciation of their rights and responsibilities as citizens, and I desire +to repeat the suggestion contained in my former message in behalf of the +enactment of appropriate measures by Congress for the purpose of +supplementing with national aid the local systems of education in the +several States. + +Adequate accommodations for the great library, which is overgrowing the +capacity of the rooms now occupied at the Capitol, should be provided +without further delay. This invaluable collection of books, manuscripts, +and illustrative art has grown to such proportions, in connection with the +copyright system of the country, as to demand the prompt and careful +attention of Congress to save it from injury in its present crowded and +insufficient quarters. As this library is national in its character, and +must from the nature of the case increase even more rapidly in the future +than in the past, it can not be doubted that the people will sanction any +wise expenditure to preserve it and to enlarge its usefulness. + +The appeal of the Regents of the Smithsonian Institution for the means to +organize, exhibit, and make available for the public benefit the articles +now stored away belonging to the National Museum I heartily recommend to +your favorable consideration. + +The attention of Congress is again invited to the condition of the river +front of the city of Washington. It is a matter of vital importance to the +health of the residents of the national capital, both temporary and +permanent, that the lowlands in front of the city, now subject to tidal +overflow, should be reclaimed. In their present condition these flats +obstruct the drainage of the city and are a dangerous source of malarial +poison. The reclamation will improve the navigation of the river by +restricting, and consequently deepening, its channel, and is also of +importance when considered in connection with the extension of the public +ground and the enlargement of the park west and south of the Washington +Monument. The report of the board of survey, heretofore ordered by act of +Congress, on the improvement of the harbor of Washington and Georgetown, is +respectfully commended to consideration. + +The report of the Commissioners of the District of Columbia presents a +detailed statement of the affairs of the District. + +The relative expenditures by the United States and the District for local +purposes is contrasted, showing that the expenditures by the people of the +District greatly exceed those of the General Government. The exhibit is +made in connection with estimates for the requisite repair of the defective +pavements and sewers of the city, which is a work of immediate necessity; +and in the same connection a plan is presented for the permanent funding of +the outstanding securities of the District. + +The benevolent, reformatory, and penal institutions of the District are all +entitled to the favorable attention of Congress. The Reform School needs +additional buildings and teachers. Appropriations which will place all of +these institutions in a condition to become models of usefulness and +beneficence will be regarded by the country as liberality wisely bestowed. + +The Commissioners, with evident justice, request attention to the +discrimination made by Congress against the District in the donation of +land for the support of the public schools, and ask that the same +liberality that has been shown to the inhabitants of the various States and +Territories of the United States may be extended to the District of +Columbia. + +The Commissioners also invite attention to the damage inflicted upon public +and private interests by the present location of the depots and switching +tracks of the several railroads entering the city, and ask for legislation +looking to their removal. The recommendations and suggestions contained in +the report will, I trust, receive the careful consideration of Congress. + +Sufficient time has, perhaps, not elapsed since the reorganization of the +government of the District under the recent legislation of Congress for the +expression of a confident opinion as to its successful operation, but the +practical results already attained are so satisfactory that the friends of +the new government may well urge upon Congress the wisdom of its +continuance, without essential modification, until by actual experience its +advantages and defects may be more fully ascertained. R. B. HAYES + +*** + +State of the Union Address +Rutherford B. Hayes +December 1, 1879 + +Fellow-Citizens of the Senate and House of Representatives: + +The members of the Forty-sixth Congress have assembled in their first +regular session under circumstances calling for mutual congratulation and +grateful acknowledgment to the Giver of All Good for the large and unusual +measure of national prosperity which we now enjoy. + +The most interesting events which have occurred in our public affairs since +my last annual message to Congress are connected with the financial +operations of the Government, directly affecting the business interests of +the country. I congratulate Congress on the successful execution of the +resumption act. At the time fixed, and in the manner contemplated by law, +United States notes began to be redeemed in coin. Since the 1st of January +last they have been promptly redeemed on presentation, and in all business +transactions, public and private, in all parts of the country, they are +received and paid out as the equivalent of coin. The demand upon the +Treasury for gold and silver in exchange for United States notes has been +comparatively small, and the voluntary deposit of coin and bullion in +exchange for notes has been very large. The excess of the precious metals +deposited or exchanged for United States notes over the amount of United +States notes redeemed is about $40,000,000. + +The resumption of specie payments has been followed by a very great revival +of business. With a currency equivalent in value to the money of the +commercial world, we are enabled to enter upon an equal competition with +other nations in trade and production. The increasing foreign demand for +our manufactures and agricultural products has caused a large balance of +trade in our favor, which has been paid in gold, from the 1st of July last +to November 15, to the amount of about $59,000,000. Since the resumption of +specie payments there has also been a marked and gratifying improvement of +the public credit. The bonds of the Government bearing only 4 per cent +interest have been sold at or above par, sufficient in amount to pay off +all of the national debt which was redeemable under present laws. The +amount of interest saved annually by the process of refunding the debt +since March 1, 1877, is $14,297,177. The bonds sold were largely in small +sums, and the number of our citizens now holding the public securities is +much greater than ever before. The amount of the national debt which +matures within less than two years is $792,121,700, of which $500,000,000 +bear interest at the rate of 5 per cent, and the balance is in bonds +bearing 6 per cent interest. It is believed that this part of the public +debt can be refunded by the issue of 4 per cent bonds, and, by the +reduction of interest which will thus be effected, about $11,000,000 can be +annually saved to the Treasury. To secure this important reduction of +interest to be paid by the United States further legislation is required, +which it is hoped will be provided by Congress during its present session. + +The coinage of gold by the mints of the United States during the last +fiscal year was $40,986,912. The coinage of silver dollars since the +passage of the act for that purpose up to November 1, 1879, was +$45,000,850, of which $12,700,344 have been issued from the Treasury and +are now in circulation, and $32,300,506 are still in the possession of the +Government. + +The pendency of the proposition for unity of action between the United +States and the principal commercial nations of Europe to effect a permanent +system for the equality of gold and silver in the recognized money of the +world leads me to recommend that Congress refrain from new legislation on +the general subject. The great revival of trade, internal and foreign, will +supply during the coming year its own instructions, which may well be +awaited before attempting further experimental measures with the coinage. I +would, however, strongly urge upon Congress the importance of authorizing +the Secretary of the Treasury to suspend the coinage of silver dollars upon +the present legal ratio. The market value of the silver dollar being +uniformly and largely less than the market value of the gold dollar, it is +obviously impracticable to maintain them at par with each other if both are +coined without limit. If the cheaper coin is forced into circulation, it +will, if coined without limit, soon become the sole standard of value, and +thus defeat the desired object, which is a currency of both gold and silver +which shall be of equivalent value, dollar for dollar, with the universally +recognized money of the world. + +The retirement from circulation of United States notes with the capacity of +legal tender in private contracts is a step to be taken in our progress +toward a safe and stable currency which should be accepted as the policy +and duty of the Government and the interest and security of the people. It +is my firm conviction that the issue of legal-tender paper money based +wholly upon the authority and credit of the Government, except in extreme +emergency, is without warrant in the Constitution and a violation of sound +financial principles. The issue of United States notes during the late +civil war with the capacity of legal tender between private individuals was +not authorized except as a means of rescuing the country from imminent +peril. The circulation of these notes as paper money for any protracted +period of time after the accomplishment of this purpose was not +contemplated by the framers of the law under which they were issued. They +anticipated the redemption and withdrawal of these notes at the earliest +practicable period consistent with the attainment of the object for which +they were provided. + +The policy of the United States, steadily adhered to from the adoption of +the Constitution, has been to avoid the creation of a national debt; and +when, from necessity in time of war, debts have been created, they have +been paid off, on the return of peace, as rapidly as possible. With this +view, and for this purpose, it is recommended that the existing laws for +the accumulation of a sinking fund sufficient to extinguish the public debt +within a limited period be maintained. If any change of the objects or +rates of taxation is deemed necessary by Congress, it is suggested that +experience has shown that a duty can be placed on tea and coffee which will +not enhance the price of those articles to the consumer, and which will add +several millions of dollars annually to the Treasury. + +The continued deliberate violation by a large number of the prominent and +influential citizens of the Territory of Utah of the laws of the United +States for the prosecution and punishment of polygamy demands the attention +of every department of the Government. This Territory has a population +sufficient to entitle it to admission as a State, and the general interests +of the nation, as well as the welfare of the citizens of the Territory, +require its advance from the Territorial form of government to the +responsibilities and privileges of a State. This important change will not, +however, be approved by the country while the citizens of Utah in very +considerable number uphold a practice which is condemned as a crime by the +laws of all civilized communities throughout the world. + +The law for the suppression of this offense was enacted with great +unanimity by Congress more than seventeen years ago, but has remained until +recently a dead letter in the Territory of Utah, because of the peculiar +difficulties attending its enforcement. The opinion widely prevailed among +the citizens of Utah that the law was in contravention of the +constitutional guaranty of religious freedom. This objection is now +removed. The Supreme Court of the United States has decided the law to be +within the legislative power of Congress and binding as a rule of action +for all who reside within the Territories. There is no longer any reason +for delay or hesitation in its enforcement. It should be firmly and +effectively executed. If not sufficiently stringent in its provisions, it +should be amended; and in aid of the purpose in view I recommend that more +comprehensive and more searching methods for preventing as well as +punishing this crime be provided. If necessary to secure obedience to the +law, the enjoyment and exercise of the rights and privileges of citizenship +in the Territories of the United States may be withheld or withdrawn from +those who violate or oppose the enforcement of the law on this subject. + +The elections of the past year, though occupied only with State officers, +have not failed to elicit in the political discussions which attended them +all over the country new and decisive evidence of the deep interest which +the great body of citizens take in the progress of the country toward a +more general and complete establishment, at whatever cost, of universal +security and freedom in the exercise of the elective franchise. While many +topics of political concern demand great attention from our people, both in +the sphere of national and State authority, I find no reason to qualify the +opinion I expressed in my last annual message, that no temporary or +administrative interests of government, however urgent or weighty, will +ever displace the zeal of our people in defense of the primary rights of +citizenship, and that the power of public opinion will override all +political prejudices, and all sectional and State attachments in demanding +that all over our wide territory the name and character of citizen of the +United States shall mean one and the same thing and carry with them +unchallenged security and respect. I earnestly appeal to the intelligence +and patriotism of all good citizens of every part of the country, however +much they maybe divided in opinions on other political subjects, to unite +in compelling obedience to existing laws aimed at the protection of the +right of suffrage. I respectfully urge upon Congress to supply any defects +in these laws which experience has shown and which it is within its power +to remedy. I again invoke the cooperation of the executive and legislative +authorities of the States in this great purpose. I am fully convinced that +if the public mind can be set at rest on this paramount question of popular +rights no serious obstacle will thwart or delay the complete pacification +of the country or retard the general diffusion of prosperity. + +In a former message I invited the attention of Congress to the subject of +the reformation of the civil service of the Government, and expressed the +intention of transmitting to Congress as early as practicable a report upon +this subject by the chairman of the Civil Service Commission. + +In view of the facts that during a considerable period the Government of +Great Britain has been dealing with administrative problems and abuses in +various particulars analogous to those presented in this country, and that +in recent years the measures adopted were understood to have been effective +and in every respect highly satisfactory, I thought it desirable to have +fuller information upon the subject, and accordingly requested the chairman +of the Civil Service Commission to make a thorough investigation for this +purpose. The result has been an elaborate and comprehensive report. + +The report sets forth the history of the partisan spoils system in Great +Britain, and of the rise and fall of the parliamentary patronage, and of +official interference with the freedom of elections. It shows that after +long trials of various kinds of examinations those which are competitive +and open on equal terms to all, and which are carried on under the +superintendence of a single commission, have, with great advantage, been +established as conditions of admission to almost every official place in +the subordinate administration of that country and of British India. The +completion of the report, owing to the extent of the labor involved in its +preparation and the omission of Congress to make any provision either for +the compensation or the expenses of the Commission, has been postponed +until the present time. It is herewith transmitted to Congress. + +While the reform measures of another government are of no authority for us, +they are entitled to influence to the extent to which their intrinsic +wisdom and their adaptation to our institutions and social life may commend +them to our consideration. The views I have heretofore expressed concerning +the defects and abuses in our civil administration remain unchanged, except +in so far as an enlarged experience has deepened my sense of the duty both +of officers and of the people themselves to cooperate for their removal. +The grave evils and perils of a partisan spoils system of appointment to +office and of office tenure are now generally recognized. In the +resolutions of the great parties, in the reports of Departments, in the +debates and proceedings of Congress, in the messages of Executives, the +gravity of these evils has been pointed out and the need of their reform +has been admitted. + +To command the necessary support, every measure of reform must be based on +common right and justice, and must be compatible with the healthy existence +of great parties, which are inevitable and essential in a free state. + +When the people have approved a policy at a national election, confidence +on the part of the officers they have selected and of the advisers who, in +accordance with our political institutions, should be consulted in the +policy which it is their duty to carry into effect is indispensable. It is +eminently proper that they should explain it before the people, as well as +illustrate its spirit in the performance of their official duties. + +Very different considerations apply to the greater number of those who fill +the subordinate places in the civil service. Their responsibility is to +their superiors in official position. It is their duty to obey the legal +instructions of those upon whom that authority is devolved, and their best +public service consists in the discharge of their functions irrespective of +partisan politics. Their duties are the same whatever party is in power and +whatever policy prevails. As a consequence it follows that their tenure of +office should not depend on the prevalence of any policy or the supremacy +of any party, but should be determined by their capacity to serve the +people most usefully quite irrespective of partisan interests. The same +considerations that should govern the tenure should also prevail in the +appointment, discipline, and removal of these subordinates. The authority +of appointment and removal is not a perquisite, which may be used to aid a +friend or reward a partisan, but is a trust, to be exercised in the public +interest under all the sanctions which attend the obligation to apply the +public funds only for public purposes. + +Every citizen has an equal right to the honor and profit of entering the +public service of his country. The only just ground of discrimination is +the measure of character and capacity he has to make that service most +useful to the people. Except in cases where, upon just and recognized +principles--as upon the theory of pensions--offices and promotions are +bestowed as rewards for past services, their bestowal upon any theory which +disregards personal merit is an act of injustice to the citizen, as well as +a breach of that trust subject to which the appointing power is held. + +In the light of these principles it becomes of great importance to provide +just and adequate means, especially for every Department and large +administrative office, where personal discrimination on the part of its +head is not practicable, for ascertaining those qualifications to which +appointments and removals should have reference. To fail to provide such +means is not only to deny the opportunity of ascertaining the facts upon +which the most righteous claim to office depends, but of necessity to +discourage all worthy aspirants by handing over appointments and removals +to mere influence and favoritism. If it is the right of the worthiest +claimant to gain the appointment and the interest of the people to bestow +it upon him, it would seem clear that a wise and just method of +ascertaining personal fitness for office must be an important and permanent +function of every just and wise government. It has long since become +impossible in the great offices for those having the duty of nomination and +appointment to personally examine into the individual qualifications of +more than a small proportion of those seeking office, and with the +enlargement of the civil service that proportion must continue to become +less. + +In the earlier years of the Government the subordinate offices were so few +in number that it was quite easy for those making appointments and +promotions to personally ascertain the merits of candidates. Party managers +and methods had not then become powerful agencies of coercion, hostile to +the free and just exercise of the appointing power. + +A large and responsible part of the duty of restoring the civil service to +the desired purity and efficiency rests upon the President, and it is my +purpose to do what is within my power to advance such prudent and gradual +measures of reform as will most surely and rapidly bring about that radical +change of system essential to make our administrative methods satisfactory +to a free and intelligent people. By a proper exercise of authority it is +in the power of the Executive to do much to promote such a reform. But it +can not be too clearly understood that nothing adequate can be accomplished +without cooperation on the part of Congress and considerate and intelligent +support among the people. Reforms which challenge the generally accepted +theories of parties and demand changes in the methods of Departments are +not the work of a day. Their permanent foundations must be laid in sound +principles and in an experience which demonstrates their wisdom and exposes +the errors of their adversaries. Every worthy officer desires to make his +official action a gain and an honor to his country; but the people +themselves, far more than their officers in public station, are interested +in a pure, economical, and vigorous administration. + +By laws enacted in 1853 and 1855, and now in substance incorporated in the +Revised Statutes, the practice of arbitrary appointments to the several +subordinate grades in the great Departments was condemned, and examinations +as to capacity, to be conducted by departmental boards of examiners, were +provided for and made conditions of admission to the public service. These +statutes are a decision by Congress that examinations of some sort as to +attainments and capacity are essential to the well-being of the public +service. The important questions since the enactment of these laws have +been as to the character of these examinations, and whether official favor +and partisan influence or common right and merit were to control the access +to the examinations. In practice these examinations have not always been +open to worthy persons generally who might wish to be examined. Official +favoritism and partisan influence, as a rule, appear to have designated +those who alone were permitted to go before the examining boards, +subjecting even the examiners to a pressure from the friends of the +candidates very difficult to resist. As a consequence the standard of +admission fell below that which the public interest demanded. It was also +almost inevitable that a system which provided for various separate boards +of examiners, with no common supervision or uniform method of procedure, +should result in confusion, inconsistency, and inadequate tests of +capacity, highly detrimental to the public interest. A further and more +radical change was obviously required. + +In the annual message of December, 1870, my predecessor declared that-- +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. Congress accordingly +passed the act approved March 3, 1871, "to regulate the civil service of +the United States and promote the efficiency thereof," giving the necessary +authority to the Executive to inaugurate a civil-service reform. + +Acting under this statute, which was interpreted as intended to secure a +system of just and effectual examinations under uniform supervision, a +number of eminently competent persons were selected for the purpose, who +entered with zeal upon the discharge of their duties, prepared with an +intelligent appreciation of the requirements of the service the regulations +contemplated, and took charge of the examinations, and who in their +capacity as a board have been known as the "Civil Service Commission." +Congress for two years appropriated the money needed for the compensation +and for the expense of carrying on the work of the Commission. + +It appears from the report of the Commission submitted to the President in +April, 1874, that examinations had been held in various sections of the +country, and that an appropriation of about $25,000 would be required to +meet the annual expenses, including salaries, involved in discharging the +duties of the Commission. The report was transmitted to Congress by special +message of April 18, 1874, with the following favorable comment upon the +labors of the Commission: If sustained by Congress, I have no doubt the +rules can, after the experience gained, be so improved and enforced as to +still more materially benefit the public service and relieve the Executive, +members of Congress, and the heads of Departments from influences +prejudicial to good administration. The rules, as they have hitherto been +enforced, have resulted beneficially, as is shown by the opinions of the +members of the Cabinet and their subordinates in the Departments, and in +that opinion I concur. And in the annual message of December of the same +year similar views are expressed and an appropriation for continuing the +work of the Commission again advised. + +The appropriation was not made, and as a consequence the active work of the +Commission was suspended, leaving the Commission itself still in existence. +Without the means, therefore, of causing qualifications to be tested in any +systematic manner or of securing for the public service the advantages of +competition upon any extensive plan, I recommended in my annual message of +December, 1877, the making of an appropriation for the resumption of the +work of the Commission. + +In the meantime, however, competitive examinations, under many +embarrassments, have been conducted within limited spheres in the Executive +Departments in Washington and in a number of the custom-houses and +post-offices of the principal cities of the country, with a view to further +test their effects, and in every instance they have been found to be as +salutary as they are stated to have been under the Administration of my +predecessor. I think the economy, purity, and efficiency of the public +service would be greatly promoted by their systematic introduction, +wherever practicable, throughout the entire civil service of the +Government, together with ample provision for their general supervision in +order to secure consistency and uniform justice. + +Reports from the Secretary of the Interior, from the Postmaster-General, +from the postmaster in the city of New York, where such examinations have +been some time on trial, and also from the collector of the port, the naval +officer, and the surveyor in that city, and from the postmasters and +collectors in several of the other large cities, show that the competitive +system, where applied, has in various ways contributed to improve the +public service. + +The reports show that the results have been salutary in a marked degree, +and that the general application of similar rules can not fail to be of +decided benefit to the service. + +The reports of the Government officers, in the city of New York especially, +bear decided testimony to the utility of open competitive examinations in +their respective offices, showing that-- These examinations and the +excellent qualifications of those admitted to the service through them have +had a marked incidental effect upon the persons previously in the service, +and particularly upon those aspiring to promotion. There has been on the +part of these latter an increased interest in the work and a desire to +extend acquaintance with it beyond the particular desk occupied, and thus +the morale of the entire force has been raised. The examinations have been +attended by many citizens, who have had an opportunity to thoroughly +investigate the scope and character of the tests and the method of +determining the results, and those visitors have without exception approved +the methods employed, and several of them have publicly attested their +favorable opinion. Upon such considerations I deem it my duty to renew the +recommendation contained in my annual message of December, 1877, requesting +Congress to make the necessary appropriation for the resumption of the work +of the Civil Service Commission. Economy will be promoted by authorizing a +moderate compensation to persons in the public service who may perform +extra labor upon or under the Commission, as the Executive may direct. + +I am convinced that if a just and adequate test of merit is enforced for +admission to the public service and in making promotions such abuses as +removals without good cause and partisan and official interference with the +proper exercise of the appointing power will in large measure disappear. + +There are other administrative abuses to which the attention of Congress +should be asked in this connection. Mere partisan appointments and the +constant peril of removal without cause very naturally lead to an absorbing +and mischievous political activity on the part of those thus appointed, +which not only interferes with the due discharge of official duty, but is +incompatible with the freedom of elections. Not without warrant in the +views of several of my predecessors in the Presidential office, and +directly within the law of 1871, already cited, I endeavored, by regulation +made on the 22d day of June, 1877, to put some reasonable limits to such +abuses. It may not be easy, and it may never perhaps be necessary, to +define with precision the proper limit of political action on the part of +Federal officers. But while their right to hold and freely express their +opinions can not be questioned, it is very plain that they should neither +be allowed to devote to other subjects the time needed for the proper +discharge of their official duties nor to use the authority of their office +to enforce their own opinions or to coerce the political action of those +who hold different opinions. + +Reasons of justice and public policy quite analogous to those which forbid +the use of official power for the oppression of the private citizen impose +upon the Government the duty of protecting its officers and agents from +arbitrary exactions. In whatever aspect considered, the practice of making +levies for party purposes upon the salaries of officers is highly +demoralizing to the public service and discreditable to the country. Though +an officer should be as free as any other citizen to give his own money in +aid of his opinions or his party, he should also be as free as any other +citizen to refuse to make such gifts. If salaries are but a fair +compensation for the time and labor of the officer, it is gross injustice +to levy a tax upon them. If they are made excessive in order that they may +bear the tax, the excess is an indirect robbery of the public funds. + +I recommend, therefore, such a revision and extension of present statutes +as shall secure to those in every grade of official life or public +employment the protection with which a great and enlightened nation should +guard those who are faithful in its service. + +Our relations with foreign countries have continued peaceful. + +With Great Britain there are still unsettled questions, growing out of the +local laws of the maritime provinces and the action of provincial +authorities deemed to be in derogation of rights secured by treaty to +American fishermen. The United States minister in London has been +instructed to present a demand for $105,305.02 in view of the damages +received by American citizens at Fortune Bay on the 6th day of January, +1878. The subject has been taken into consideration by the British +Government, and an early reply is anticipated. + +Upon the completion of the necessary preliminary examinations the subject +of our participation in the provincial fisheries, as regulated by treaty, +will at once be brought to the attention of the British Government, with a +view to an early and permanent settlement of the whole question, which was +only temporarily adjusted by the treaty of Washington. + +Efforts have been made to obtain the removal of restrictions found +injurious to the exportation of cattle to the United Kingdom. + +Some correspondence has also occurred with regard to the rescue and saving +of life and property upon the Lakes, which has resulted in important +modifications of the previous regulations of the Dominion government on the +subject in the interest of humanity and commerce. + +In accordance with the joint resolution of the last session of Congress, +commissioners were appointed to represent the United States at the two +international exhibitions in Australia, one of which is now in progress at +Sydney, and the other to be held next year at Melbourne. A desire has been +expressed by our merchants and manufacturers interested in the important +and growing trade with Australia that an increased provision should be made +by Congress for the representation of our industries at the Melbourne +exhibition of next year, and the subject is respectfully submitted to your +favorable consideration. + +The assent of the Government has been given to the landing on the coast of +Massachusetts of a new and independent transatlantic cable between France, +by way of the French island of St. Pierre, and this country, subject to any +future legislation of Congress on the subject. The conditions imposed +before allowing this connection with our shores to be established are such +as to secure its competition with any existing or future lines of marine +cable and preclude amalgamation therewith, to provide for entire equality +of rights to our Government and people with those of France in the use of +the cable, and prevent any exclusive possession of the privilege as +accorded by France to the disadvantage of any future cable communication +between France and the United States which may be projected and +accomplished by our citizens. An important reduction of the present rates +of cable communication with Europe, felt to be too burdensome to the +interests of our commerce, must necessarily flow from the establishment of +this competing line. + +The attention of Congress was drawn to the propriety of some general +regulation by Congress of the whole subject of transmarine cables by my +predecessor in his message of December 7, 1875, and I respectfully submit +to your consideration the importance of Congressional action in the +matter. + +The questions of grave importance with Spain growing out of the incidents +of the Cuban insurrection have been for the most part happily and honorably +settled. It may reasonably be anticipated that the commission now sitting +in Washington for the decision of private cases in this connection will +soon be able to bring its labors to a conclusion. + +The long-standing question of East Florida claims has lately been renewed +as a subject of correspondence, and may possibly require Congressional +action for its final disposition. + +A treaty with the Netherlands with respect to consular rights and +privileges similar to those with other powers has been signed and ratified, +and the ratifications were exchanged on the 31st of July last. Negotiations +for extradition treaties with the Netherlands and with Denmark are now in +progress. + +Some questions with Switzerland in regard to pauper and convict emigrants +have arisen, but it is not doubted that they will be arranged upon a just +and satisfactory basis. A question has also occurred with respect to an +asserted claim by Swiss municipal authorities to exercise tutelage over +persons and property of Swiss citizens naturalized in this country. It is +possible this may require adjustment by treaty. + +With the German Empire frequent questions arise in connection with the +Subjects of naturalization and expatriation, but the Imperial Government +has constantly manifested a desire to strictly maintain and comply with all +treaty stipulations in regard to them. + +In consequence of the omission of Congress to provide for a diplomatic +representative at Athens, the legation to Greece has been withdrawn. There +is now no channel of diplomatic communication between the two countries, +and the expediency of providing for one in some form is submitted to +Congress. + +Relations with Austria, Russia, Italy, Portugal, Turkey, and Belgium +continue amicable, and marked by no incident of especial importance. + +A change of the personal head of the Government of Egypt has taken place. +No change, however, has occurred in the relations between Egypt and the +United States. The action of the Egyptian Government in presenting to the +city of New York one of the ancient obelisks, which possess such historic +interest, is highly appreciated as a generous mark of international regard. +If prosperity should attend the enterprise of its transportation across the +Atlantic, its erection in a conspicuous position in the chief commercial +city of the nation will soon be accomplished. + +The treaty recently made between Japan and the United States in regard to +the revision of former commercial treaties it is now believed will be +followed by similar action on the part of other treaty powers. The +attention of Congress is again invited to the subject of the indemnity +funds received some years since from Japan and China, which, with their +accumulated interest, now amount to considerable sums. If any part of these +funds is justly due to American citizens, they should receive it promptly; +and whatever may have been received by this Government in excess of +strictly just demands should in some form be returned to the nations to +whom it equitably belongs. + +The Government of China has signified its willingness to consider the +question of the emigration of its subjects to the United States with a +dispassionate fairness and to cooperate in such measures as may tend to +prevent injurious consequences to the United States. The negotiations are +still proceeding, and will be pressed with diligence. + +A question having arisen between China and Japan about the Lew Chew +Islands, the United States Government has taken measures to inform those +powers of its readiness to extend its good offices for the maintenance of +peace if they shall mutually deem it desirable and find it practicable to +avail themselves of the proffer. + +It is a gratification to be able to announce that, through the judicious +and energetic action of the military commanders of the two nations on each +side of the Rio Grande, under the instructions of their respective +Governments, raids and depredations have greatly decreased, and in the +localities where formerly most destructive have now almost wholly ceased. +In view of this result, I entertain a confident expectation that the +prevalence of quiet on the border will soon become so assured as to justify +a modification of the present orders to our military commanders as to +crossing the border, without encouraging such disturbances as would +endanger the peace of the two countries. + +The third installment of the award against Mexico under the claims +commission of July 4, 1868, was duly paid, and has been put in course of +distribution in pursuance of the act of Congress providing for the same. +This satisfactory situation between the two countries leads me to +anticipate an expansion of our trade with Mexico and an increased +contribution of capital and industry by our people to the development of +the great resources of that country. I earnestly commend to the wisdom of +Congress the provision of suitable legislation looking to this result. + +Diplomatic intercourse with Colombia is again fully restored by the arrival +of a minister from that country to the United States. This is especially +fortunate in view of the fact that the question of an inter-oceanic canal +has recently assumed a new and important aspect and is now under discussion +with the Central American countries through whose territory the canal, by +the Nicaragua route, would have to pass. It is trusted that enlightened +statesmanship on their part will see that the early prosecution of such a +work will largely inure to the benefit, not only of their own citizens and +those of the United States, but of the commerce of the civilized world. It +is not doubted that should the work be undertaken under the protective +auspices of the United States, and upon satisfactory concessions for the +right of way and its security by the Central American Governments, the +capital for its completion would be readily furnished from this country and +Europe, which might, failing such guaranties, prove inaccessible. + +Diplomatic relations with Chile have also been strengthened by the +reception of a minister from that country. + +The war between Peru, Bolivia, and Chile still continues. The United States +have not deemed it proper to interpose in the matter further than to convey +to all the Governments concerned the assurance that the friendly offices of +the Government of the United States for the restoration of peace upon an +honorable basis will be extended in case the belligerents shall exhibit a +readiness to accept them. + +Cordial relations continue with Brazil and the Argentine Republic, and +trade with those countries is improving. A provision for regular and more +frequent mail communication, in our own ships, between the ports of this +country and the nations of South America seems to me to deserve the +attention of Congress as an essential precursor of an enlargement of our +commerce with them and an extension of our carrying trade. + +A recent revolution in Venezuela has been followed by the establishment of +a provisional government. This government has not yet been formally +recognized, and it is deemed desirable to await the proposed action of the +people which is expected to give it the sanction of constitutional forms. + +A naval vessel has been sent to the Samoan Islands to make surveys and take +possession of the privileges ceded to the United States by Samoa in the +harbor of Pago-Pago. A coaling station is to be established there, which +will be convenient and useful to United States vessels. + +The subject of opening diplomatic relations with Roumania and Servia, now +become independent sovereignties, is at present under consideration, and is +the subject of diplomatic correspondence. + +There is a gratifying increase of trade with nearly all European and +American countries, and it is believed that with judicious action in regard +to its development it can and will be still more enhanced and that American +products and manufactures will find new and expanding markets. The reports +of diplomatic and consular officers upon this subject, under the system now +adopted, have resulted in obtaining much valuable information, which has +been and will continue to be laid before Congress and the public from time +to time. + +The third article of the treaty with Russia of March 30, 1867, by which +Alaska was ceded to the United States, provides that the inhabitants of the +ceded territory, with the exception of the uncivilized native tribes, shall +be admitted to the enjoyment of all the rights of citizens of the United +States and shall be maintained and protected in the free enjoyment of their +liberty, property, and religion. The uncivilized tribes are subject to such +laws and regulations as the United States may from time to time adopt in +regard to the aboriginal tribes of that country. + +Both the obligations of this treaty and the necessities of the people +require that some organized form of government over the Territory of Alaska +be adopted. + +There appears to be no law for the arrest of persons charged with +common-law offenses, such as assault, robbery, and murder, and no +magistrate authorized to issue or execute process in such cases. Serious +difficulties have already arisen from offenses of this character, not only +among the original inhabitants, but among citizens of the United States and +other countries who have engaged in mining, fishing, and other business +operations within the territory. A bill authorizing the appointment of +justices of the peace and constables and the arrest and detention of +persons charged with criminal offenses, and providing for an appeal to +United States courts for the district of Oregon in suitable cases, will at +a proper time be submitted to Congress. + +The attention of Congress is called to the annual report of the Secretary +of the Treasury on the condition of the public finances. + +The ordinary revenues from all sources for the fiscal year ended June 30, +1879, were $273,827,184.46; the ordinary expenditures for the same period +were $266,947,883.53, leaving a surplus revenue for the year of +$6,879,300.93. + +The receipts for the present fiscal year, ending June 30, 1880, actual and +estimated, are as follows: Actual receipts for the first quarter, +commencing July 1, 1879, $79,843,663.61; estimated receipts for the +remaining three quarters of the year, $208,156,336.39; total receipts for +the current fiscal year, actual and estimated, $288,000,000. + +The expenditures for the same period will be, actual and estimated, as +follows: For the quarter commencing July 1, 1879, actual expenditures, +$91,683,385.10; and for the remaining three quarters of the year the +expenditures are estimated at $172,316,614.90, making the total +expenditures $264,000,000, and leaving an estimated surplus revenue for the +year ending June 30, 1880, of $24,000,000. The total receipts during the +next fiscal year, ending June 30, 1881, estimated according to existing +laws, will be $288,000,000, and the estimated ordinary expenditures for the +same period will be $278,097,364.39, leaving a surplus of $9,902,635.61 for +that year. + +The large amount expended for arrears of pensions during the last and the +present fiscal year, amounting to $21,747,249.60, has prevented the +application of the full amount required by law to the sinking fund for the +current year; but these arrears having been substantially paid, it is +believed that the sinking fund can hereafter be maintained without any +change of existing law. + +The Secretary of War reports that the War Department estimates for the +fiscal year ending June 30, 1881, are $40,380,428.93, the same being for a +less sum of money than any annual estimate rendered to Congress from that +Department during a period of at least twelve years. + +He concurs with the General of the Army in recommending such legislation as +will authorize the enlistment of the full number of 25,000 men for the line +of the Army, exclusive of the 3,463 men required for detached duty, and +therefore not available for service in the field. + +He also recommends that Congress be asked to provide by law for the +disposition of a large number of abandoned military posts and reservations, +which, though very valuable in themselves, have been rendered useless for +military purposes by the advance of civilization and settlement. + +He unites with the Quartermaster-General in recommending that an +appropriation be made for the construction of a cheap and perfectly +fireproof building for the safe storage of a vast amount of money accounts, +vouchers, claims, and other valuable records now in the +Quartermaster-General's Office, and exposed to great risk of total +destruction by fire. + +He also recommends, in conformity with the views of the +Judge-Advocate-General, some declaratory legislation in reference to the +military statute of limitations as applied to the crime of desertion. In +these several recommendations I concur. + +The Secretary of War further reports that the work for the improvement of +the South Pass of the Mississippi River, under contract with Mr. James B. +Eads, made in pursuance of an act of Congress, has been prosecuted during +the past year with a greater measure of success in the attainment of +results than during any previous year. The channel through the South Pass, +which at the beginning of operations in June, 1875, had a depth of only 7 +1/2 feet of water, had on the 8th of July, 1879, a minimum depth of 26 +feet, having a width of not less than 200 feet and a central depth of 30 +feet. Payments have been made in accordance with the statute, as the work +progressed, amounting in the aggregate to $4,250,000; and further payments +will become due, as provided by the statute, in the event of success in +maintaining the channel now secured. + +The reports of the General of the Army and of his subordinates present a +full and detailed account of the military operations for the suppression of +hostilities among the Indians of the Ute and Apache tribes, and praise is +justly awarded to the officers and troops engaged for promptness, skill, +and courage displayed. + +The past year has been one of almost unbroken peace and quiet on the +Mexican frontier, and there is reason to believe that the efforts of this +Government and of Mexico to maintain order in that region will prove +permanently successful. + +This Department was enabled during the past year to find temporary, though +crowded, accommodations and a safe depository for a portion of its records +in the completed east wing of the building designed for the State, War, and +Navy Departments. The construction of the north wing of the building, a +part of the structure intended for the use of the War Department, is being +carried forward with all possible dispatch, and the work should receive +from Congress such liberal appropriations as will secure its speedy +completion. + +The report of the Secretary of the Navy shows continued improvement in that +branch of the service during the last fiscal year. Extensive repairs have +been made upon vessels, and two new ships have been completed and made +ready for sea. + +The total expenditures of the year ended June 30, 1879, including specific +appropriations not estimated for by the Department, were $13,555,710.09. +The expenses chargeable to the year, after deducting the amount of these +specific appropriations, were $13,343,317.79; but this is subject to a +reduction of $283,725.99, that amount having been drawn upon warrants, but +not paid out during the year. The amount of appropriations applicable to +the last fiscal year was $14,538,646.17. There was, therefore, a balance of +$1,479,054.37 remaining unexpended and to the credit of the Department on +June 30, 1879. The estimates for the fiscal year ending June 30, 1881, are +$14,864,147.95, which exceeds the appropriations for the present fiscal +year $361,897.28. The reason for this increase is explained in the +Secretary's report. The appropriations available for the present fiscal +year are $14,502,250.67, which will, in the opinion of the Secretary, +answer all the ordinary demands of the service. The amount drawn from the +Treasury from July 1 to November 1, 1879 was $5,770,404.12, of which +$1,095,440.33 has been refunded, leaving as the expenditure for that period +$4,674,963.79. If the expenditures of the remaining two-thirds of the year +do not exceed the proportion for these four months, there will remain +unexpended at the end of the year $477,359.30 of the current +appropriations. The report of the Secretary shows the gratifying fact that +among all the disbursing officers of the Pay Corps of the Navy there is not +one who is a defaulter to the extent of a single dollar. I unite with him +in recommending the removal of the observatory to a more healthful +location. That institution reflects credit upon the nation, and has +obtained the approbation of scientific men in all parts of the world. Its +removal from its present location would not only be conducive to the health +of its officers and professors, but would greatly increase its usefulness. + +The appropriation for judicial expenses, which has heretofore been made for +the Department of Justice in gross, was subdivided at the last session of +Congress, and no appropriation whatever was made for the payment of the +fees of marshals and their deputies, either in the service of process or +for the discharge of other duties; and since June 30 these officers have +continued the performance of their duties without compensation from the +Government, taking upon themselves the necessary incidental outlays, as +well as rendering their own services. In only a few unavoidable instances +has the proper execution of the process of the United States failed by +reason of the absence of the requisite appropriation. This course of +official conduct on the part of these officers, highly creditable to their +fidelity, was advised by the Attorney-General, who informed them, however, +that they would necessarily have to rely for their compensation upon the +prospect of future legislation by Congress. I therefore especially +recommend that immediate appropriation be made by Congress for this +purpose. + +The act making the principal appropriation for the Department of Justice at +previous sessions has uniformly contained the following clause: And for +defraying the expenses which my be incurred in the enforcement of the act +approved February 28, 1871, entitled "An act to amend an act approved May +31, 1870, entitled 'An act to enforce the rights of citizens of the United +States to vote in the several States of this Union, and for other +purposes,'" or any acts amendatory thereof or supplementary thereto. No +appropriation was made for this purpose for the current year. As no general +election for Members of Congress occurred, the omission was a matter of +little practical importance. Such election will, however, take place during +the ensuing year, and the appropriation made for the pay of marshals and +deputies should be sufficient to embrace compensation for the services they +may be required to perform at such elections. + +The business of the Supreme Court is at present largely in arrears. It can +not be expected that more causes can be decided than are now disposed of in +its annual session, or that by any assiduity the distinguished magistrates +who compose the court can accomplish more than is now done. In the courts +of many of the circuits also the business has increased to such an extent +that the delay of justice will call the attention of Congress to an +appropriate remedy. It is believed that all is done in each circuit which +can fairly be expected from its judicial force. The evils arising from +delay are less heavily felt by the United States than by private suitors, +as its causes are advanced by the courts when it is seen that they involve +the discussion of questions of a public character. + +The remedy suggested by the Attorney-General is the appointment of +additional circuit judges and the creation of an intermediate court of +errors and appeals, which shall relieve the Supreme Court of a part of its +jurisdiction, while a larger force is also obtained for the performance of +circuit duties. + +I commend this suggestion to the consideration of Congress. It would seem +to afford a complete remedy, and would involve, if ten additional circuit +judges are appointed, an expenditure, at the present rate of salaries, of +not more than $60,000 a year, which would certainly be small in comparison +with the objects to be attained. + +The report of the Postmaster-General bears testimony to the general revival +of business throughout the country. The receipts of the Post-Office +Department for the fiscal year ended June 30, 1879, were $30,041,982.86, +being $764,465.91 more than the revenues of the preceding year. The amount +realized from the sale of postage stamps, stamped envelopes, and postal +cards was $764,465.91 more than in the preceding year, and $2,387,559.23 +more than in 1877. The expenditures of the Department were $33,449,899.45, +of which the sum of $376,461.63 was paid on liabilities incurred in +preceding years. + +The expenditures during the year were $801,209.77 less than in the +preceding year. This reduction is to be attributed mainly to the operation +of the law passed June 17, 1878, changing the compensation of postmasters +from a commission on the value of stamps sold to a commission on stamps +canceled. + +The amount drawn from the Treasury on appropriations, in addition to the +revenues of the Department, was $3,031,454.96, being $2,276,197.86 less +than in the preceding year. + +The expenditures for the fiscal year ending June 30, 1881, are estimated at +$39,920,900 and the receipts from all sources at $32,210,000, leaving a +deficiency to be appropriated for out of the Treasury of $7,710,900. + +The relations of the Department with railroad companies have been +harmonized, notwithstanding the general reduction by Congress of their +compensation by the appropriation for special facilities, and the railway +post-office lines have been greatly extended, especially in the Southern +States. The interests of the Railway Mail Service and of the public would +be greatly promoted and the expenditures could be more readily controlled +by the classification of the employees of the Railway Mail Service as +recommended by the Postmaster-General, the appropriation for salaries, with +respect to which the maximum limit is already fixed by law, to be made in +gross. + +The Postmaster-General recommends an amendment of the law regulating the +increase of compensation for increased service and increased speed on star +routes, so as to enable him to advertise for proposals for such increased +service and speed. He also suggests the advantages to accrue to the +commerce of the country from the enactment of a general law authorizing +contracts with American-built steamers, carrying the American flag, for +transporting the mail between ports of the United States and ports of the +West Indies and South America, at a fixed maximum price per mile, the +amount to be expended being regulated by annual appropriations, in like +manner with the amount paid for the domestic star service. + +The arrangement made by the Postmaster-General and the Secretary of the +Treasury for the collection of duty upon books received in the mail from +foreign countries has proved so satisfactory in its practical operation +that the recommendation is now made that Congress shall extend the +provisions of the act of March 3, 1879, under which this arrangement was +made, so as to apply to all other dutiable articles received in the mails +from foreign countries. + +The reports of the Secretary of the Interior and of the Commissioner of +Indian Affairs, setting forth the present state of our relations with the +Indian tribes on our territory, the measures taken to advance their +civilization and prosperity, and the progress already achieved by them, +will be found of more than ordinary interest. The general conduct of our +Indian population has been so satisfactory that the occurrence of two +disturbances, which resulted in bloodshed and destruction of property, is +all the more to be lamented. + +The history of the outbreak on the White River Ute Reservation, in western +Colorado, has become so familiar by elaborate reports in the public press +that its remarkable incidents need not be stated here in detail. It is +expected that the settlement of this difficulty will lead to such +arrangements as will prevent further hostile contact between the Indians +and the border settlements in western Colorado. + +The other disturbance occurred at the Mescalero Agency, in New Mexico, +where Victoria, at the head of a small band of marauders, after committing +many atrocities, being vigorously chased by a military force, made his way +across the Mexican border and is now on foreign soil. + +While these occurrences, in which a comparatively small number of Indians +were engaged, are most deplorable, a vast majority of our Indian population +have fully justified the expectations of those who believe that by humane +and peaceful influences the Indian can be led to abandon the habits of +savage life and to develop a capacity for useful and civilized occupations. +What they have already accomplished in the pursuit of agricultural and +mechanical work, the remarkable success which has attended the experiment +of employing as freighters a class of Indians hitherto counted among the +wildest and most intractable, and the general and urgent desire expressed +by them for the education of their children may be taken as sufficient +proof that they will be found capable of accomplishing much more if they +continue to be wisely and fairly guided. The "Indian policy" sketched in +the report of the Secretary of the Interior, the object of which is to make +liberal provision for the education of Indian youth, to settle the Indians +upon farm lots in severalty, to give them title in fee to their farms, +inalienable for a certain number of years, and when their wants are thus +provided for to dispose by sale of the lands on their reservations not +occupied and used by them, a fund to be formed out of the proceeds for the +benefit of the Indians, which will gradually relieve the Government of the +expenses now provided for by annual appropriations, must commend itself as +just and beneficial to the Indians, and as also calculated to remove those +obstructions which the existence of large reservations presents to the +settlement and development of the country. I therefore earnestly recommend +the enactment of a law enabling the Government to give Indians a title in +fee, inalienable for twenty-five years, to the farm lands assigned to them +by allotment. I also repeat the recommendation made in my first annual +message, that a law be passed admitting Indians who can give satisfactory +proof of having by their own labor supported their families for a number of +years, and who are willing to detach themselves from their tribal +relations, to the benefit of the homestead act, and to grant them patents +containing the same provision of inalienability for a certain period. + +The experiment of sending a number of Indian children of both sexes to the +Hampton Normal and Agricultural Institute, in Virginia, to receive an +elementary English education and practical instruction in farming and other +useful industries, has led to results so promising that it was thought +expedient to turn over the cavalry barracks at Carlisle, in Pennsylvania, +to the Interior Department for the establishment of an Indian school on a +larger scale. This school has now 158 pupils, selected from various tribes, +and is in full operation. Arrangements are also made for the education of a +number of Indian boys and girls belonging to tribes on the Pacific Slope in +a similar manner, at Forest Grove, in Oregon. These institutions will +commend themselves to the liberality of Congress and to the philanthropic +munificence of the American people. + +Last spring information was received of the organization of an extensive +movement in the Western States, the object of which was the occupation by +unauthorized persons of certain lands in the Indian Territory ceded by the +Cherokees to the Government for the purpose of settlement by other Indian +tribes. + +On the 26th of April I issued a proclamation warning all persons against +participation in such an attempt, and by the cooperation of a military +force the invasion was promptly checked. It is my purpose to protect the +rights of the Indian inhabitants of that Territory to the full extent of +the executive power; but it would be unwise to ignore the fact that a +territory so large and so 'fertile, with a population so sparse and with so +great a wealth of unused resources, will be found more exposed to the +repetition of such attempts as happened this year when the surrounding +States are more densely settled and the westward movement of our population +looks still more eagerly for fresh lands to occupy. Under such +circumstances the difficulty of maintaining the Indian Territory in its +present state will greatly increase, and the Indian tribes inhabiting it +would do well to prepare for such a contingency. I therefore fully approve +of the advice given to them by the Secretary of the Interior on a recent +occasion, to divide among themselves in severalty as large a quantity of +their lands as they can cultivate; to acquire individual title in fee +instead of their present tribal ownership in common, and to consider in +what manner the balance of their lands may be disposed of by the Government +for their benefit. By adopting such a policy they would more certainly +secure for themselves the value of their possessions, and at the same time +promote their progress in civilization and prosperity, than by endeavoring +to perpetuate the present state of things in the Territory. + +The question whether a change in the control of the Indian service should +be made was in the Forty-fifth Congress referred to a joint committee of +both Houses for inquiry and report. In my last annual message I expressed +the hope that the decision of that question, then in prospect, would +"arrest further agitation of this subject, such agitation being apt to +produce a disturbing effect upon the service as well as on the Indians +themselves." Since then, the committee having reported, the question has +been decided in the negative by a vote in the House of Representatives. + +For the reasons here stated, and in view of the fact that further +uncertainty on this point will be calculated to obstruct other much-needed +legislation, to weaken the discipline of the service, and to unsettle +salutary measures now in progress for the government and improvement of the +Indians, I respectfully recommend that the decision arrived at by Congress +at its last session be permitted to stand. + +The efforts made by the Department of the Interior to arrest the +depredations on the timber lands of the United States have been continued, +and have met with considerable success. A large number of cases of trespass +have been prosecuted in the courts of the United States; others have been +settled, the trespassers offering to make payment to the Government for the +value of the timber taken by them. The proceeds of these prosecutions and +settlements turned into the Treasury far exceed in amount the sums +appropriated by Congress for this purpose. A more important result, +however, consists in the fact that the destruction of our public forests by +depredation, although such cases still occur, has been greatly reduced in +extent, and it is probable that if the present policy is vigorously pursued +and sufficient provision to that end is made by Congress such trespasses, +at least those on a large scale, can be entirely suppressed, except in the +Territories, where timber for the daily requirements of the population can +not, under the present state of the law, be otherwise obtained. I therefore +earnestly invite the attention of Congress to the recommendation made by +the Secretary of the Interior, that a law be enacted enabling the +Government to sell timber from the public lands without conveying the fee, +where such lands are principally valuable for the timber thereon, such +sales to be so regulated as to conform to domestic wants and business +requirements, while at the same time guarding against a sweeping +destruction of the forests. The enactment of such a law appears to become a +more pressing necessity every day. + +My recommendations in former messages are renewed in favor of enlarging the +facilities of the Department of Agriculture. Agriculture is the leading +interest and the permanent industry of our people. It is to the abundance +of agricultural production, as compared with our home consumption, and the +largely increased and highly profitable market abroad which we have enjoyed +in recent years, that we are mainly indebted for our present prosperity as +a people. We must look for its continued maintenance to the same +substantial resource. There is no branch of industry in which labor, +directed by scientific knowledge, yields such increased production in +comparison with unskilled labor, and no branch of the public service to +which the encouragement of liberal appropriations can be more appropriately +extended. The omission to render such aid is not a wise economy, but, on +the contrary, undoubtedly results in losses of immense sums annually that +might be saved through well-directed efforts by the Government to promote +this vital interest. + +The results already accomplished with the very limited means heretofore +placed at the command of the Department of Agriculture is an earnest of +what may be expected with increased appropriations for the several purposes +indicated in the report of the Commissioner, with a view to placing the +Department upon a footing which will enable it to prosecute more +effectively the objects for which it is established. + +Appropriations are needed for a more complete laboratory, for the +establishment of a veterinary division and a division of forestry, and for +an increase of force. + +The requirements for these and other purposes, indicated in the report of +the Commissioner under the head of the immediate necessities of the +Department, will not involve any expenditure of money that the country can +not with propriety now undertake in the interests of agriculture. + +It is gratifying to learn from the Bureau of Education the extent to which +educational privileges throughout the United States have been advanced +during the year. No more fundamental responsibility rests upon Congress +than that of devising appropriate measures of financial aid to education, +supplemental to local action in the States and Territories and in the +District of Columbia. The wise forethought of the founders of our +Government has not only furnished the basis for the support of the +common-school systems of the newer States, but laid the foundations for the +maintenance of their universities and colleges of agriculture and the +mechanic arts. Measures in accordance with this traditional policy, for the +further benefit of all these interests and the extension of the same +advantages to every portion of the country, it is hoped will receive your +favorable consideration. + +To preserve and perpetuate the national literature should be among the +foremost cares of the National Legislature. The library gathered at the +Capitol still remains unprovided with any suitable accommodations for its +rapidly increasing stores. The magnitude and importance of the collection, +increased as it is by the deposits made under the law of copyright, by +domestic and foreign exchanges, and by the scientific library of the +Smithsonian Institution, call for building accommodations which shall be at +once adequate and fireproof. The location of such a public building, which +should provide for the pressing necessities of the present and for the vast +increase of the nation's books in the future, is a matter which addresses +itself to the discretion of Congress. It is earnestly recommended as a +measure which should unite all suffrages and which should no longer be +delayed. + +The joint commission created by the act of Congress of August 2, 1876, for +the purpose of supervising and directing the completion of the Washington +National Monument, of which commission the President is a member, has given +careful attention to this subject, and already the strengthening of the +foundation has so far progressed as to insure the entire success of this +part of the work. A massive layer of masonry has been introduced below the +original foundation, widening the base, increasing the stability of the +structure, and rendering it possible to carry the shaft to completion. It +is earnestly recommended that such further appropriations be made for the +continued prosecution of the work as may be necessary for the completion of +this national monument at an early day. + +In former messages, impressed with the importance of the subject, I have +taken occasion to commend to Congress the adoption of a generous policy +toward the District of Columbia. The report of the Commissioners of the +District, herewith transmitted, contains suggestions and recommendations, +to all of which I earnestly invite your careful attention. I ask your early +and favorable consideration of the views which they express as to the +urgent need of legislation for the reclamation of the marshes of the +Potomac and its Eastern Branch within the limits of the city, and for the +repair of the streets of the capital, heretofore laid with wooden blocks +and now by decay rendered almost impassable and a source of imminent danger +to the health of its citizens. The means at the disposal of the +Commissioners are wholly inadequate for the accomplishment of these +important works, and should be supplemented by timely appropriations from +the Federal Treasury. + +The filling of the flats in front of the city will add to the adjacent +lands and parks now owned by the United States a large and valuable domain, +sufficient, it is thought, to reimburse its entire cost, and will also, as +an incidental result, secure the permanent improvement of the river for the +purposes of navigation. + +The Constitution having invested Congress with supreme and exclusive +jurisdiction over the District of Columbia, its citizens must of necessity +look to Congress alone for all needful legislation affecting their +interests; and as the territory of this District is the common property of +the people of the United States, who equally with its resident citizens are +interested in the prosperity of their capital, I can not doubt that you +will be amply sustained by the general voice of the country in any measures +you may adopt for this purpose. + +I also invite the favorable consideration of Congress to the wants of the +public schools of this District, as exhibited in the report of the +Commissioners. While the number of pupils is rapidly increasing, no +adequate provision exists for a corresponding increase of school +accommodation, and the Commissioners are without the means to meet this +urgent need. A number of the buildings now used for school purposes are +rented, and are in important particulars unsuited for the purpose. The +cause of popular education in the District of Columbia is surely entitled +to the same consideration at the hands of the National Government as in the +several States and Territories, to which munificent grants of the public +lands have been made for the endowment of schools and universities. + +*** + +State of the Union Address +Rutherford B. Hayes +December 6, 1880 + +Fellow-Citizens of the Senate and House of Representatives: + +I congratulate you on the continued and increasing prosperity of our +country. By the favor of Divine Providence we have been blessed during the +past year with health, with abundant harvests, with profitable employment +for all our people, and with contentment at home, and with peace and +friendship with other nations. The occurrence of the twenty-fourth election +of Chief Magistrate has afforded another opportunity to the people of the +United States to exhibit to the world a significant example of the peaceful +and safe transmission of the power and authority of government from the +public servants whose terms of office are about to expire to their newly +chosen successors. This example can not fail to impress profoundly +thoughtful people of other countries with the advantages which republican +institutions afford. The immediate, general, and cheerful acquiescence of +all good citizens in the result of the election gives gratifying assurance +to our country and to its friends throughout the world that a government +based on the free consent of an intelligent and patriotic people possesses +elements of strength, stability, and permanency not found in any other form +of government. + +Continued opposition to the full and free enjoyment of the rights of +citizenship conferred upon the colored people by the recent amendments to +the Constitution still prevails in several of the late slaveholding States. +It has, perhaps, not been manifested in the recent election to any large +extent in acts of violence or intimidation. It has, however, by fraudulent +practices in connection with the ballots, with the regulations as to the +places and manner of voting, and with counting, returning, and canvassing +the votes cast, been successful in defeating the exercise of the right +preservative of all rights--the right of suffrage--which the Constitution +expressly confers upon our enfranchised citizens. + +It is the desire of the good people of the whole country that sectionalism +as a factor in our politics should disappear. They prefer that no section +of the country should be united in solid opposition to any other section. +The disposition to refuse a prompt and hearty obedience to the equal-rights +amendments to the Constitution is all that now stands in the way of a +complete obliteration of sectional lines in our political contests. As long +as either of these amendments is flagrantly violated or disregarded, it is +safe to assume that the people who placed them in the Constitution, as +embodying the legitimate results of the war for the Union, and who believe +them to be wise and necessary, will continue to act together and to insist +that they shall be obeyed. The paramount question still is as to the +enjoyment of the fight by every American citizen who has the requisite +qualifications to freely cast his vote and to have it honestly counted. +With this question rightly settled, the country will be relieved of the +contentions of the past; bygones will indeed be bygones, and political and +party issues, with respect to economy and efficiency of administration, +internal improvements, the tariff, domestic taxation, education, finance, +and other important subjects, will then receive their full share of +attention; but resistance to and nullification of the results of the war +will unite together in resolute purpose for their support all who maintain +the authority of the Government and the perpetuity of the Union, and who +adequately appreciate the value of the victory achieved. This determination +proceeds from no hostile sentiment or feeling to any part of the people of +our country or to any of their interests. The inviolability of the +amendments rests upon the fundamental principle of our Government. They are +the solemn expression of the will of the people of the United States. + +The sentiment that the constitutional rights of all our citizens must be +maintained does not grow weaker. It will continue to control the Government +of the country. Happily, the history of the late election shows that in +many parts of the country where opposition to the fifteenth amendment has +heretofore prevailed it is diminishing, and is likely to cease altogether +if firm and well-considered action is taken by Congress. I trust the House +of Representatives and the Senate, which have the right to judge of the +elections, returns, and qualifications of their own members, will see to it +that every case of violation of the letter or spirit of the fifteenth +amendment is thoroughly investigated, and that no benefit from such +violation shall accrue to any person or party. It will be the duty of the +Executive, with sufficient appropriations for the purpose, to prosecute +unsparingly all who have been engaged in depriving citizens of the rights +guaranteed to them by the Constitution. + +It is not, however, to be forgotten that the best and surest guaranty of +the primary rights of citizenship is to be found in that capacity for +self-protection which can belong only to a people whose right to universal +suffrage is supported by universal education. The means at the command of +the local and State authorities are in many cases wholly inadequate to +furnish free instruction to all who need it. This is especially true where +before emancipation the education of the people was neglected or prevented, +in the interest of slavery. Firmly convinced that the subject of popular +education deserves the earnest attention of the people of the whole +country, with a view to wise and comprehensive action by the Government of +the United States, I respectfully recommend that Congress, by suitable +legislation and with proper safeguards, supplement the local educational +funds in the several States where the grave duties and responsibilities of +citizenship have been devolved on uneducated people by devoting to the +purpose grants of the public lands and, if necessary, by appropriations +from the Treasury of the United States. Whatever Government can fairly do +to promote free popular education ought to be done. Wherever general +education is found, peace, virtue, and social order prevail and civil and +religious liberty are secure. + +In my former annual messages I have asked the attention of Congress to the +urgent necessity of a reformation of the civil-service system of the +Government. My views concerning the dangers of patronage, or appointments +for personal or partisan considerations, have been strengthened by my +observation and experience in the Executive office, and I believe these +dangers threaten the stability of the Government. Abuses so serious in +their nature can not be permanently tolerated. They tend to become more +alarming with the enlargement of administrative service, as the growth of +the country in population increases the number of officers and placemen +employed. + +The reasons are imperative for the adoption of fixed rules for the +regulation of appointments, promotions, and removals, establishing a +uniform method having exclusively in view in every instance the attainment +of the best qualifications for the position in question. Such a method +alone is consistent with the equal rights of all citizens and the most +economical and efficient administration of the public business. + +Competitive examinations in aid of impartial appointments and promotions +have been conducted for some years past in several of the Executive +Departments, and by my direction this system has been adopted in the +custom-houses and post-offices of the larger cities of the country. In the +city of New York over 2,000 positions in the civil service have been +subject in their appointments and tenure of place to the operation of +published rules for this purpose during the past two years. The results of +these practical trials have been very satisfactory, and have confirmed my +opinion in favor of this system of selection. All are subjected to the same +tests, and the result is free from prejudice by personal favor or partisan +influence. It secures for the position applied for the best qualifications +attainable among the competing applicants. It is an effectual protection +from the pressure of importunity, which under any other course pursued +largely exacts the time and attention of appointing officers, to their +great detriment in the discharge of other official duties preventing the +abuse of the service for the mere furtherance of private or party purposes, +and leaving the employee of the Government, freed from the obligations +imposed by patronage, to depend solely upon merit for retention and +advancement, and with this constant incentive to exertion and improvement. + +These invaluable results have been attained in a high degree in the offices +where the rules for appointment by competitive examination have been +applied. + +A method which has so approved itself by experimental tests at points where +such tests may be fairly considered conclusive should be extended to all +subordinate positions under the Government. I believe that a strong and +growing public sentiment demands immediate measures for securing and +enforcing the highest possible efficiency in the civil service and its +protection from recognized abuses, and that the experience referred to has +demonstrated the feasibility of such measures. + +The examinations in the custom-houses and post-offices have been held under +many embarrassments and without provision for compensation for the extra +labor performed by the officers who have conducted them, and whose +commendable interest in the improvement of the public service has induced +this devotion of time and labor without pecuniary reward. A continuance of +these labors gratuitously ought not to be expected, and without an +appropriation by Congress for compensation it is not practicable to extend +the system of examinations generally throughout the civil service. It is +also highly important that all such examinations should be conducted upon a +uniform system and under general supervision. Section 1753 of the Revised +Statutes authorizes the President to prescribe the regulations for +admission to the civil service of the United States, and for this purpose +to employ suitable persons to conduct the requisite inquiries with +reference to "the fitness of each candidate, in respect to age, health, +character, knowledge, and ability for the branch of service into which he +seeks to enter;" but the law is practically inoperative for want of the +requisite appropriation. + +I therefore recommend an appropriation of $25,000 per annum to meet the +expenses of a commission, to be appointed by the President in accordance +with the terms of this section, whose duty it shall be to devise a just, +uniform, and efficient system of competitive examinations and to supervise +the application of the same throughout the entire civil service of the +Government. I am persuaded that the facilities which such a commission will +afford for testing the fitness of those who apply for office will not only +be as welcome a relief to members of Congress as it will be to the +President and heads of Departments, but that it will also greatly tend to +remove the causes of embarrassment which now inevitably and constantly +attend the conflicting claims of patronage between the legislative and +executive departments. The most effectual check upon the pernicious +competition of influence and official favoritism in the bestowal of office +will be the substitution of an open competition of merit between the +applicants, in which everyone can make his own record with the assurance +that his success will depend upon this alone. + +I also recommend such legislation as, while leaving every officer as free +as any other citizen to express his political opinions and to use his means +for their advancement, shall also enable him to feel as safe as any private +citizen in refusing all demands upon his salary for political purposes. A +law which should thus guarantee true liberty and justice to all who are +engaged in the public service, and likewise contain stringent provisions +against the use of official authority to coerce the political action of +private citizens or of official subordinates, is greatly to be desired. + +The most serious obstacle, however, to an improvement of the civil service, +and especially to a reform in the method of appointment and removal, has +been found to be the practice, under what is known as the spoils system, by +which the appointing power has been so largely encroached upon by members +of Congress. The first step in the reform of the civil service must be a +complete divorce between Congress and the Executive in the matter of +appointments. The corrupting doctrine that "to the victors belong the +spoils" is inseparable from Congressional patronage as the established rule +and practice of parties in power. It comes to be understood by applicants +for office and by the people generally that Representatives and Senators +are entitled to disburse the patronage of their respective districts and +States. It is not necessary to recite at length the evils resulting from +this invasion of the Executive functions. The true principles of Government +on the subject of appointments to office, as stated in the national +conventions of the leading parties of the country, have again and again +been approved by the American people, and have not been called in question +in any quarter. These authentic expressions of public opinion upon this +all-important subject are the statement of principles that belong to the +constitutional structure of the Government. Under the Constitution the +President and heads of Departments are to make nominations for office. The +Senate is to advise and consent to appointments, and the House of +Representatives is to accuse and prosecute faithless officers. The best +interest of the public service demands that these distinctions be +respected; that Senators and Representatives, who may be judges and +accusers, should not dictate appointments to office. To this end the +cooperation of the legislative department. of the Government is required +alike by the necessities of the case and by public opinion. Members of +Congress will not be relieved from the demands made upon them with +reference to appointments to office until by legislative enactment the +pernicious practice is condemned and forbidden. + +It is therefore recommended that an act be passed defining the relations of +members of Congress with respect to appointment to office by the President; +and I also recommend that the provisions of section 1767 and of the +sections following of the Revised Statutes, comprising the tenure-of-office +act of March 2, 1867, be repealed. + +Believing that to reform the system and methods of the civil service in our +country is one of the highest and most imperative duties of statesmanship, +and that it can be permanently done only by the cooperation of the +legislative and executive departments of the Government, I again commend +the whole subject to your considerate attention. + +It is the recognized duty and purpose of the people of the United States to +suppress polygamy where it now exists in our Territories and to prevent its +extension. Faithful and zealous efforts have been made by the United States +authorities in Utah to enforce the laws against it. Experience has shown +that the legislation upon this subject, to be effective, requires extensive +modification and amendment. The longer action is delayed the more difficult +it will be to accomplish what is desired. Prompt and decided measures are +necessary. The Mormon sectarian organization which upholds polygamy has the +whole power of making and executing the local legislation of the Territory. +By its control of the grand and petit juries it possesses large influence +over the administration of justice. Exercising, as the heads of this sect +do, the local political power of the Territory, they are able to make +effective their hostility to the law of Congress on the subject of +polygamy, and, in fact, do prevent its enforcement. Polygamy will not be +abolished if the enforcement of the law depends on those who practice and +uphold the crime. It can only be suppressed by taking away the political +power of the sect which encourages and sustains it. + +The power of Congress to enact suitable laws to protect the Territories is +ample. It is not a case for halfway measures. The political power of the +Mormon sect is increasing. It controls now one of our wealthiest and most +populous Territories. It is extending steadily into other Territories. +Wherever it goes it establishes polygamy and sectarian political power. The +sanctity of marriage and the family relation are the corner stone of our +American society and civilization. Religious liberty and the separation of +church and state are among the elementary ideas of free institutions. To +reestablish the interests and principles which polygamy and Mormonism have +imperiled, and to fully reopen to intelligent and virtuous immigrants of +all creeds that part of our domain which has been in a great degree closed +to general immigration by intolerant and immoral institutions, it is +recommended that the government of the Territory of Utah be reorganized. + +I recommend that Congress provide for the government of Utah by a governor +and judges, or commissioners, appointed by the President and confirmed by +the Senate--a government analogous to the provisional government +established for the territory northwest of the Ohio by the ordinance of +1787. If, however, it is deemed best to continue the existing form of local +government, I recommend that the right to vote, hold office, and sit on +juries in the Territory of Utah be confined to those who neither practice +nor uphold polygamy. If thorough measures are adopted, it is believed that +within a few years the evils which now afflict Utah will be eradicated, and +that this Territory will in good time become one of the most prosperous and +attractive of the new States of the Union. + +Our relations with all foreign countries have been those of undisturbed +peace, and have presented no occasion for concern as to their continued +maintenance. + +My anticipation of an early reply from the British Government to the demand +of indemnity to our fishermen for the injuries suffered by that industry at +Fortune Bay in January, 1878, which I expressed in my last annual message, +was disappointed. This answer was received only in the latter part of April +in the present year, and when received exhibited a failure of accord +between the two Governments as to the measure of the inshore fishing +privilege secured to our fishermen by the treaty of Washington of so +serious a character that I made it the subject of a communication to +Congress, in which I recommended the adoption of the measures which seemed +to me proper to be taken by this Government in maintenance of the rights +accorded to our fishermen under the treaty and toward securing an indemnity +for the injury these interests had suffered. A bill to carry out these +recommendations was under consideration by the House of Representatives at +the time of the adjournment of Congress in June last. + +Within a few weeks I have received a communication from Her Majesty's +Government renewing the consideration of the subject, both of the indemnity +for the injuries at Fortune Bay and of the interpretation of the treaty in +which the previous correspondence had shown the two Governments to be at +variance. Upon both these topics the disposition toward a friendly +agreement is manifested by a recognition of our right to an indemnity for +the transaction at Fortune Bay, leaving the measure of such indemnity to +further conference, and by an assent to the view of this Government, +presented in the previous correspondence, that the regulation of +conflicting interests of the shore fishery of the provincial seacoasts and +the vessel fishery of our fishermen should be made the subject of +conference and concurrent arrangement between the two Governments. + +I sincerely hope that the basis may be found for a speedy adjustment of the +very serious divergence of views in the interpretation of the fishery +clauses of the treaty of Washington, which, as the correspondence between +the two Governments stood at the close of the last session of Congress, +seemed to be irreconcilable. + +In the important exhibition of arts and industries which was held last year +at Sydney, New South Wales, as well as in that now in progress at +Melbourne, the United States have been efficiently and honorably +represented. The exhibitors from this country at the former place received +a large number of awards in some of the most considerable departments, and +the participation of the United States was recognized by a special mark of +distinction. In the exhibition at Melbourne the share taken by our country +is no less notable, and an equal degree of success is confidently +expected. + +The state of peace and tranquillity now enjoyed by all the nations of the +continent of Europe has its favorable influence upon our diplomatic and +commercial relations with them. We have concluded and ratified a convention +with the French Republic for the settlement of claims of the citizens of +either country against the other. Under this convention a commission, +presided over by a distinguished publicist, appointed in pursuance of the +request of both nations by His Majesty the Emperor of Brazil, has been +organized and has begun its sessions in this city. A congress to consider +means for the protection of industrial property has recently been in +session in Paris, to which I have appointed the ministers of the United +States in France and in Belgium as delegates. The International Commission +upon Weights and Measures also continues its work in Paris. I invite your +attention to the necessity of an appropriation to be made in time to enable +this Government to comply with its obligations under the metrical +convention. + +Our friendly relations with the German Empire continue without +interruption. At the recent International Exhibition of Fish and Fisheries +at Berlin the participation of the United States, notwithstanding the haste +with which the commission was forced to make its preparations, was +extremely successful and meritorious, winning for private exhibitors +numerous awards of a high class and for the country at large the principal +prize of honor offered by His Majesty the Emperor. The results of this +great success can not but be advantageous to this important and growing +industry. There have been some questions raised between the two Governments +as to the proper effect and interpretation of our treaties of +naturalization, but recent dispatches from our minister at Berlin show that +favorable progress is making toward an understanding in accordance with the +views of this Government, which makes and admits no distinction whatever +between the rights of a native and a naturalized citizen of the United +States. In practice the complaints of molestation suffered by naturalized +citizens abroad have never been fewer than at present. + +There is nothing of importance to note in our unbroken friendly relations +with the Governments of Austria-Hungary, Russia, Portugal, Sweden and +Norway, Switzerland, Turkey, and Greece. + +During the last summer several vessels belonging to the merchant marine of +this country, sailing in neutral waters of the West Indies, were fired at, +boarded, and searched by an armed cruiser of the Spanish Government. The +circumstances as reported involve not only a private injury to the persons +concerned, but also seemed too little observant of the friendly relations +existing for a century between this country and Spain. The wrong was +brought to the attention of the Spanish Government in a serious protest and +remonstrance, and the matter is undergoing investigation by the royal +authorities with a view to such explanation or reparation as may be called +for by the facts. + +The commission sitting in this city for the adjudication of claims of our +citizens against the Government of Spain is, I hope, approaching the +termination of its labors. + +The claims against the United States under the Florida treaty with Spain +were submitted to Congress for its action at the late session, and I again +invite your attention to this long-standing question, with a view to a +final disposition of the matter. + +At the invitation of the Spanish Government, a conference has recently been +held at the city of Madrid to consider the subject of protection by foreign +powers of native Moors in the Empire of Morocco. The minister of the United +States in Spain was directed to take part in the deliberations of this +conference, the result of which is a convention signed on behalf of all the +powers represented. The instrument will be laid before the Senate for its +consideration. The Government of the United States has also lost no +opportunity to urge upon that of the Emperor of Morocco the necessity, in +accordance with the humane and enlightened spirit of the age, of putting an +end to the persecutions, which have been so prevalent in that country, of +persons of a faith. other than the Moslem, and especially of the Hebrew +residents of Morocco. + +The consular treaty concluded with Belgium has not yet been officially +promulgated, owing to the alteration of a word in the text by the Senate of +the United States, which occasioned a delay, during which the time allowed +for ratification expired. The Senate will be asked to extend the period for +ratification. + +The attempt to negotiate a treaty of extradition with Denmark failed on +account of the objection of the Danish Government to the usual clause +providing that each nation should pay the expense of the arrest of the +persons whose extradition it asks. + +The provision made by Congress at its last session for the expense of the +commission which had been appointed to enter upon negotiations with the +Imperial Government of China on subjects of great interest to the relations +of the two countries enabled the commissioners to proceed at once upon +their mission. The Imperial Government was prepared to give prompt and +respectful attention to the matters brought under negotiation, and the +conferences proceeded with such rapidity and success that on the 17th of +November last two treaties were signed at Peking, one relating to the +introduction of Chinese into this country and one relating to commerce. Mr. +Trescot, one of the commissioners, is now on his way home bringing the +treaties, and it is expected that they will be received in season to be +laid before the Senate early in January. + +Our minister in Japan has negotiated a convention for the reciprocal relief +of shipwrecked seamen. I take occasion to urge once more upon Congress the +propriety of making provision for the erection of suitable fireproof +buildings at the Japanese capital for the use of the American legation and +the court-house and jail connected with it. The Japanese Government, with +great generosity and courtesy, has offered for this purpose an eligible +piece of land. + +In my last annual message I invited the attention of Congress to the +subject of the indemnity funds received some years ago from China and +Japan. I renew the recommendation then made that whatever portions of these +funds are due to American citizens should be promptly paid and the residue +returned to the nations, respectively, to which they justly and equitably +belong. + +The extradition treaty with the Kingdom of the Netherlands, Which has been +for some time in course of negotiation, has during the past year been +concluded and duly ratified. + +Relations of friendship and amity have been established between the +Government of the United States and that of Roumania. We have sent a +diplomatic representative to Bucharest, and have received at this capital +the special envoy who has been charged by His Royal Highness Prince Charles +to announce the independent sovereignty of Roumania. We hope for a speedy +development of commercial relations between the two countries. + +In my last annual message I expressed the hope that the prevalence of quiet +on the border between this country and Mexico would soon become so assured +as to justify the modification of the orders then in force to our military +commanders in regard to crossing the frontier, without encouraging such +disturbances as would endanger the peace of the two countries. Events moved +in accordance with these expectations, and the orders were accordingly +withdrawn, to the entire satisfaction of our own citizens and the Mexican +Government. Subsequently the peace of the border was again disturbed by a +savage foray under the command of the Chief Victoria, but by the combined +and harmonious action of the military forces of both countries his band has +been broken up and substantially destroyed. + +There is reason to believe that the obstacles which have so long prevented +rapid and convenient communication between the United States and Mexico by +railways are on the point of disappearing, and that several important +enterprises of this character will soon be set on foot, which can not fail +to contribute largely to the prosperity of both countries. + +New envoys from Guatemala, Colombia, Bolivia, Venezuela, and Nicaragua have +recently arrived at this capital, whose distinction and enlightenment +afford the best guaranty of the continuance of friendly relations between +ourselves and these sister Republics. + +The relations between this Government and that of the United States of +Colombia have engaged public attention during the past year, mainly by +reason of the project of an interoceanic canal across the Isthmus of +Panama, to be built by private capital under a concession from the +Colombian Government for that purpose. The treaty obligations subsisting +between the United States and Colombia, by which we guarantee the +neutrality of the transit and the sovereignty and property of Colombia in +the Isthmus, make it necessary that the conditions under which so +stupendous a change in the region embraced in this guaranty should be +effected--transforming, as it would, this Isthmus from a barrier between +the Atlantic and Pacific oceans into a gateway and thoroughfare between +them for the navies and the merchant ships of the world--should receive the +approval of this Government, as being compatible with the discharge of +these obligations on our part and consistent with our interests as the +principal commercial power of the Western Hemisphere. The views which I +expressed in a special message to Congress in March last in relation to +this project I deem it my duty again to press upon your attention. +Subsequent consideration has but confirmed the opinion "that it is the +right and duty of the United States to assert and maintain such supervision +and authority over any interoceanic canal across the isthmus that connects +North and South America as will protect our national interest." + +The war between the Republic of Chile on the one hand and the allied +Republics of Peru and Bolivia on the other still continues. This Government +has not felt called upon to interfere in a contest that is within the +belligerent rights of the parties as independent states. We have, however, +always held ourselves in readiness to aid in accommodating their +difference, and have at different times reminded beth belligerents of our +willingness to render such service. + +Our good offices in this direction were recently accepted by all the +belligerents, and it was hoped they would prove efficacious; but I regret +to announce that the measures which the ministers of the United States at +Santiago and Lima were authorized to take with the view to bring about a +peace were not successful. In the course of the war some questions have +arisen affecting neutral rights. In all of these the ministers of the +United States have, under their instructions, acted with promptness and +energy in protection of American interests. + +The relations of the United States with the Empire of Brazil continue to be +most cordial, and their commercial intercourse steadily increases, to their +mutual advantage. + +The internal disorders with which the Argentine Republic has for some time +past been afflicted, and which have more or less influenced its external +trade, are understood to have been brought to a close. This happy result +may be expected to redound to the benefit of the foreign commerce of that +Republic, as well as to the development of its vast interior resources. + +In Samoa the Government of King Malietoa, under the support and recognition +of the consular representatives of the United States, Great Britain, and +Germany, seems to have given peace and tranquillity to the islands. While +it does not appear desirable to adopt as a whole the scheme of tripartite +local government which has been proposed, the common interests of the three +great treaty powers require harmony in their relations to the native frame +of government, and this may be best secured by a simple diplomatic +agreement between them. It would be well if the consular jurisdiction of +our representative at Apia were increased in extent and importance so as to +guard American interests in the surrounding and outlying islands of +Oceanica. + +The obelisk generously presented by the Khedive of Egypt to the city of New +York has safely arrived in this country, and will soon be erected in that +metropolis. A commission for the liquidation of the Egyptian debt has +lately concluded its work, and this Government, at the earnest solicitation +of the Khedive, has acceded to the provisions adopted by it, which will be +laid before Congress for its information. A commission for the revision of +the judicial code of the reform tribunal of Egypt is now in session in +Cairo. Mr. Farman, consul-general, and J. M. Batchelder, esq., have been +appointed as commissioners to participate in this work. The organization of +the reform tribunals will probably be continued for another period of five +years. + +In pursuance of the act passed at the last session of Congress, invitations +have been extended to foreign maritime states to join in a sanitary +conference in Washington, beginning the 1st of January. The acceptance of +this invitation by many prominent powers gives promise of success in this +important measure, designed to establish a system of international +notification by which the spread of infectious or epidemic diseases may be +more effectively checked or prevented. The attention of Congress is invited +to the necessary appropriations for carrying into effect the provisions of +the act referred to. + +The efforts of the Department of State to enlarge the trade and commerce of +the United States, through the active agency of consular officers and +through the dissemination of information obtained from them, have been +unrelaxed. The interest in these efforts, as developed in our commercial +communities, and the value of the information secured by this means to the +trade and manufactures of the country were recognized by Congress at its +last session, and provision was made for the more frequent publication of +consular and other reports by the Department of State. The first issue of +this publication has now been prepared, and subsequent issues may regularly +be expected. The importance and interest attached to the reports of +consular officers are witnessed by the general demand for them by all +classes of merchants and manufacturers engaged in our foreign trade. It is +believed that the system of such publications is deserving of the approval +of Congress, and that the necessary appropriations for its continuance and +enlargement will commend itself to your consideration. + +The prosperous energies of our domestic industries and their immense +production of the subjects of foreign commerce invite, and even require, an +active development of the wishes and interests of our people in that +direction. Especially important is it that our commercial relations with +the Atlantic and Pacific coasts of South America, with the West Indies and +the Gulf of Mexico, should be direct, and not through the circuit of +European systems, and should be carried on in our own bottoms. The full +appreciation of the opportunities which our front on the Pacific Ocean +gives to commerce with Japan, China, and the East Indies, with Australia +and the island groups which lie along these routes of navigation, should +inspire equal efforts to appropriate to our own shipping and to administer +by our own capital a due proportion of this trade. Whatever modifications +of our regulations of trade and navigation may be necessary or useful to +meet and direct these impulses to the enlargement of our exchanges and of +our carrying trade I am sure the wisdom of Congress will be ready to +supply. One initial measure, however, seems to me so dearly useful and +efficient that I venture to press it upon your earnest attention. It seems +to be very evident that the provision of regular steam postal communication +by aid from government has been the forerunner of the commercial +predominance of Great Britain on all these coasts and seas, a greater share +in whose trade is now the desire and the intent of our people. It is also +manifest that the efforts of other European nations to contend with Great +Britain for a share of this commerce have been successful in proportion +with their adoption of regular steam postal communication with the markets +whose trade they sought. Mexico and the States of South America are anxious +to receive such postal communication with this country and to aid in their +development. Similar cooperation may be looked for in due time from the +Eastern nations and from Australia. It is difficult to see how the lead in +this movement can be expected from private interests. In respect of foreign +commerce quite as much as in internal trade postal communication seems +necessarily a matter of common and public administration, and thus +pertaining to Government. I respectfully recommend to your prompt attention +such just and efficient measures as may conduce to the development of our +foreign commercial exchanges and the building up of our carrying trade. + +In this connection I desire also to suggest the very great service which +might be expected in enlarging and facilitating our commerce on the Pacific +Ocean were a transmarine cable laid from San Francisco to the Sandwich +Islands, and thence to Japan at the north and Australia at the south. The +great influence of such means of communication on these routes of +navigation in developing and securing the due share of our Pacific Coast in +the commerce of the world needs no illustration or enforcement. It may be +that such an enterprise, useful, and in the end profitable, as it would +prove to private investment, may need to be accelerated by prudent +legislation by Congress in its aid, and I submit the matter to your careful +consideration. + +An additional and not unimportant, although secondary, reason for fostering +and enlarging the Navy may be found in the unquestionable service to the +expansion of our commerce which would be rendered by the frequent +circulation of naval ships in the seas and ports of all quarters of the +globe. Ships of the proper construction and equipment to be of the greatest +efficiency in case of maritime war might be made constant and active agents +in time of peace in the advancement and protection of our foreign trade and +in the nurture and discipline of young seamen, who would naturally in some +numbers mix with and improve the crews of our merchant ships. Our merchants +at home and abroad recognize the value to foreign commerce of an active +movement of our naval vessels, and the intelligence and patriotic zeal of +our naval officers in promoting every interest of their countrymen is a +just subject of national pride. + +The condition of the financial affairs of the Government, as shown by the +report of the Secretary of the Treasury, is very satisfactory. It is +believed that the present financial situation of the United States, whether +considered with respect to trade, currency, credit, growing wealth, or the +extent and variety of our resources, is more favorable than that of any +other country of our time, and has never been surpassed by that of any +country at any period of its history. All our industries are thriving; the +rate of interest is low; new railroads are being constructed; a vast +immigration is increasing our population, capital, and labor; new +enterprises in great number are in progress, and our commercial relations +with other countries are improving. + +The ordinary revenues from all sources for the fiscal year ended June 30, +1880, were-- + +From customs - $186,522,064.60 + +From internal revenue - 124,009,373.92 + +From sales of public lands - 1,016,506.60 + +From tax on circulation and deposits of national banks - 7,014,971.44 + +From repayment of interest by Pacific Railway companies - 1,707,367.18 + +From sinking fund for Pacific Railway companies - 786,621.22 + +From customs fees, fines, penalties, etc - 1,148,800.16 + +From fees-consular, letters patent, and lands - 2,337,029.00 + +From proceeds of sales of Government property - 282,616.50 + +From profits on coinage, etc - 2,792,186.78 + +From revenues of the District of Columbia - 1,809,469.70 + +From miscellaneous sources - 4,099,603.88 - + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY RUTHERFORD B. 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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 Rutherford B. Hayes + +Author: Rutherford B. Hayes + +Release Date: February, 2004 [EBook #5027] +[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 RUTHERFORD B. HAYES *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Rutherford B. Hayes in this eBook: + December 3, 1877 + December 2, 1878 + December 1, 1879 + December 6, 1880 + + + +*** + +State of the Union Address +Rutherford B. Hayes +December 3, 1877 + +Fellow-Citizens of the Senate and House of Representatives: + +With devout gratitude to the bountiful Giver of All Good, I congratulate +you that at the beginning of your first regular session you find our +country blessed with health and peace and abundant harvests, and with +encouraging prospects of an early return of general prosperity. + +To complete and make permanent the pacification of the country continues to +be, and until it is fully accomplished must remain, the most important of +all our national interests. The earnest purpose of good citizens generally +to unite their efforts in this endeavor is evident. It found decided +expression in the resolutions announced in 1876 by the national conventions +of the leading political parties of the country. There was a widespread +apprehension that the momentous results in our progress as a nation marked +by the recent amendments to the Constitution were in imminent jeopardy; +that the good understanding which prompted their adoption, in the interest +of a loyal devotion to the general welfare, might prove a barren truce, and +that the two sections of the country, once engaged in civil strife, might +be again almost as widely severed and disunited as they were when arrayed +in arms against each other. + +The course to be pursued, which, in my judgment, seemed wisest in the +presence of this emergency, was plainly indicated in my inaugural address. +It pointed to the time, which all our people desire to see, when a genuine +love of our whole country and of all that concerns its true welfare shall +supplant the destructive forces of the mutual animosity of races and of +sectional hostility. Opinions have differed widely as to the measures best +calculated to secure this great end. This was to be expected. The measures +adopted by the Administration have been subjected to severe and varied +criticism. Any course whatever which might have been entered upon would +certainly have encountered distrust and opposition. These measures were, in +my judgment, such as were most in harmony with the Constitution and with +the genius of our people, and best adapted, under all the circumstances, to +attain the end in view. Beneficent results, already apparent, prove that +these endeavors are not to be regarded as a mere experiment, and should +sustain and encourage us in our efforts. Already, in the brief period which +has elapsed, the immediate effectiveness, no less than the justice, of the +course pursued is demonstrated, and I have an abiding faith that time will +furnish its ample vindication in the minds of the great majority of my +fellow-citizens. The discontinuance of the use of the Army for the purpose +of upholding local governments in two States of the Union was no less a +constitutional duty and requirement, under the circumstances existing at +the time, than it was a much-needed measure for the restoration of local +self-government and the promotion of national harmony. The withdrawal of +the troops from such employment was effected deliberately, and with +solicitous care for the peace and good order of society and the protection +of the property and persons and every right of all classes of citizens. + +The results that have followed are indeed significant and encouraging. All +apprehension of danger from remitting those States to local self-government +is dispelled, and a most salutary change in the minds of the people has +begun and is in progress in every part of that section of the country once +the theater of unhappy civil strife, substituting for suspicion, distrust, +and aversion, concord, friendship, and patriotic attachment to the Union. +No unprejudiced mind will deny that the terrible and often fatal collisions +which for several years have been of frequent occurrence and have agitated +and alarmed the public mind have almost entirely ceased, and that a spirit +of mutual forbearance and hearty national interest has succeeded. There has +been a general reestablishment of order and of the orderly administration +of justice. Instances of remaining lawlessness have become of rare +occurrence; political turmoil and turbulence have disappeared; useful +industries have been resumed; public credit in the Southern States has been +greatly strengthened, and the encouraging benefits of a revival of commerce +between the sections of the country lately embroiled in civil war are fully +enjoyed. Such are some of the results already attained, upon which the +country is to be congratulated. They are of such importance that we may +with confidence patiently await the desired consummation that will surely +come with the natural progress of events. + +It may not be improper here to say that it should be our fixed and +unalterable determination to protect by all available and proper means +under the Constitution and the laws the lately emancipated race in the +enjoyment of their rights and privileges; and I urge upon those to whom +heretofore the colored people have sustained the relation of bondmen the +wisdom and justice of humane and liberal local legislation with respect to +their education and general welfare. A firm adherence to the laws, both +national and State, as to the civil and political rights of the colored +people, now advanced to full and equal citizenship; the immediate +repression and sure punishment by the national and local authorities, +within their respective jurisdictions, of every instance of lawlessness and +violence toward them, is required for the security alike of both races, and +is justly demanded by the public opinion of the country and the age. In +this way the restoration of harmony and good will and the complete +protection of every citizen in the full enjoyment of every constitutional +right will surely be attained. Whatever authority rests with me to this end +I shall not hesitate to put forth. + +Whatever belongs to the power of Congress and the jurisdiction of the +courts of the Union, they may confidently be relied upon to provide and +perform; and to the legislatures, the courts, and the executive authorities +of the several States I earnestly appeal to secure, by adequate, +appropriate, and seasonable means, Within their borders, these common and +uniform rights of a united people which loves liberty, abhors oppression, +and reveres justice. These objects are very dear to my heart. I shall +continue most earnestly to strive for their attainment. The cordial +cooperation of all classes, of all sections of the country and of both +races, is required for this purpose; and with these blessings assured, and +not otherwise, we may safely hope to hand down our free institutions of +government unimpaired to the generations that will succeed us. + +Among the other subjects of great and general importance to the people of +this country, I can not be mistaken, I think, in regarding as preeminent +the policy and measures which are designed to secure the restoration of the +currency to that normal and healthful condition in which, by the resumption +of specie payments, our internal trade and foreign commerce may be brought +into harmony with the system of exchanges which is based upon the precious +metals as the intrinsic money of the world. In the public judgment that +this end should be sought and compassed as speedily and securely as the +resources of the people and the wisdom of their Government can accomplish, +there is a much greater degree of unanimity than is found to concur in the +specific measures which will bring the country to this desired end or the +rapidity of the steps by which it can be safely reached. + +Upon a most anxious and deliberate examination, which I have felt it my +duty to give to the subject, I am but the more confirmed in the opinion +which I expressed in accepting the nomination for the Presidency, and again +upon my inauguration, that the policy of resumption should be pursued by +every suitable means, and that no legislation would be wise that should +disparage the importance or retard the attainment of that result. I have no +disposition, and certainly no right, to question the sincerity or the +intelligence of opposing opinions, and would neither conceal nor undervalue +the considerable difficulties, and even occasional distresses, which may +attend the progress of the nation toward this primary condition to its +general and permanent prosperity. I must, however, adhere to my most +earnest conviction that any wavering in purpose or unsteadiness in methods, +so far from avoiding or reducing the inconvenience inseparable from the +transition from an irredeemable to a redeemable paper currency, would only +tend to increased and prolonged disturbance in values, and unless retrieved +must end in serious disorder, dishonor, and disaster in the financial +affairs of the Government and of the people. + +The mischiefs which I apprehend and urgently deprecate are confined to no +class of the people, indeed, but seem to me most certainly to threaten the +industrious masses, whether their occupations are of skilled or common +labor. To them, it seems to me, it is of prime importance that their labor +should be compensated in money which is itself fixed in exchangeable value +by being irrevocably measured by the labor necessary to its production. +This permanent quality of the money of the people is sought for, and can +only be gained by the resumption of specie payments. The rich, the +speculative, the operating, the money-dealing classes may not always feel +the mischiefs of, or may find casual profits in, a variable currency, but +the misfortunes of such a currency to those who are paid salaries or wages +are inevitable and remediless. + +Closely connected with this general subject of the resumption of specie +payments is one of subordinate, but still of grave, importance; I mean the +readjustment of our coinage system by the renewal of the silver dollar as +an element in our specie currency, endowed by legislation with the quality +of legal tender to a greater or less extent. + +As there is no doubt of the power of Congress under the Constitution "to +coin money and regulate the value thereof," and as this power covers the +whole range of authority applicable to the metal, the rated value and the +legal-tender quality which shall be adopted for the coinage, the +considerations which should induce or discourage a particular measure +connected with the coinage, belong clearly to the province of legislative +discretion and of public expediency. Without intruding upon this province +of legislation in the least, I have yet thought the subject of such +critical importance, in the actual condition of our affairs, as to present +an occasion for the exercise of the duty imposed by the Constitution on the +President of recommending to the consideration of Congress "such measures +as he shall judge necessary and expedient." + +Holding the opinion, as I do, that neither the interests of the Government +nor of the people of the United States would be promoted by disparaging +silver as one of the two precious metals which furnish the coinage of the +world, and that legislation which looks to maintaining the volume of +intrinsic money to as full a measure of both metals as their relative +commercial values will permit would be neither unjust nor inexpedient, I +must ask your indulgence to a brief and definite statement of certain +essential features in any such legislative measure which I feel it my duty +to recommend. + +I do not propose to enter the debate, represented on both sides by such +able disputants in Congress and before the people and in the press, as to +the extent to which the legislation of any one nation can control this +question, even within its own borders, against the unwritten laws of trade +or the positive laws of other governments. The wisdom of Congress in +shaping any particular law that may be presented for my approval may wholly +supersede the necessity of my entering into these considerations, and I +willingly avoid either vague or intricate inquiries. It is only certain +plain and practical traits of such legislation that I desire to recommend +to your attention. + +In any legislation providing for a silver coinage, regulating its value, +and imparting to it the quality of legal tender, it seems to me of great +importance that Congress should not lose sight of its action as operating +in a twofold capacity and in two distinct directions. If the United States +Government were free from a public debt, its legislative dealing with the +question of silver coinage would be purely sovereign and governmental, +under no restraints but those of constitutional power and the public good +as affected by the proposed legislation. But in the actual circumstances of +the nation, with a vast public debt distributed very widely among our own +citizens and held in great amounts also abroad, the nature of the +silver-coinage measure, as affecting this relation of the Government to the +holders of the public debt, becomes an element, in any proposed +legislation, of the highest concern. The obligation of the public faith +transcends all questions of profit or public advantage otherwise. Its +unquestionable maintenance is the dictate as well of the highest expediency +as of the most necessary duty, and will ever be carefully guarded by +Congress and people alike. + +The public debt of the United States to the amount of $729,000,000 bears +interest at the rate of 6 per cent, and $708,000,000 at the rate of 5 per +cent, and the only way in which the country can be relieved from the +payment of these high rates of interest is by advantageously refunding the +indebtedness. Whether the debt is ultimately paid in gold or in silver coin +is of but little moment compared with the possible reduction of interest +one-third by refunding it at such reduced rate. If the United States had +the unquestioned right to pay its bonds in silver coin, the little benefit +from that process would be greatly overbalanced by the injurious effect of +such payment if made or proposed against the honest convictions of the +public creditors. + +All the bonds that have been issued since February 12, 1873, when gold +became the only unlimited legal-tender metallic currency of the country, +are justly payable in gold coin or in coin of equal value. During the time +of these issues the only dollar that could be or was received by the +Government in exchange for bonds was the gold dollar. To require the public +creditors to take in repayment any dollar of less commercial value would be +regarded by them as a repudiation of the full obligation assumed. The bonds +issued prior to 1873 were issued at a time when the gold dollar was the +only coin in circulation or contemplated by either the Government or the +holders of the bonds as the coin in which they were to be paid. It is far +better to pay these bonds in that coin than to seem to take advantage of +the unforeseen fall in silver bullion to pay in a new issue of silver coin +thus made so much less valuable. The power of the United States to coin +money and to regulate the value thereof ought never to be exercised for the +purpose of enabling the Government to pay its obligations in a coin of less +value than that contemplated by the parties when the bonds were issued. Any +attempt to pay the national indebtedness in a coinage of less commercial +value than the money of the world would involve a violation of the public +faith and work irreparable injury to the public credit. + +It was the great merit of the act of March, 1869, in strengthening the +public credit, that it removed all doubt as to the purpose of the United +States to pay their bonded debt in coin. That act was accepted as a pledge +of public faith. The Government has derived great benefit from it in the +progress thus far made in refunding the public debt at low rates of +interest. An adherence to the wise and just policy of an exact observance +of the public faith will enable the Government rapidly to reduce the burden +of interest on the national debt to an amount exceeding $20,000,000 per +annum, and effect an aggregate saving to the United States of more than +$300,000,000 before the bonds can be fully paid. + +In adapting the new silver coinage to the ordinary uses of currency in the +everyday transactions of life and prescribing the quality of legal tender +to be assigned to it, a consideration of the first importance should be so +to adjust the ratio between the silver and the gold coinage, which now +constitutes our specie currency, as to accomplish the desired end of +maintaining the circulation of the two metallic currencies and keeping up +the volume of the two precious metals as our intrinsic money. It is a mixed +question, for scientific reasoning and historical experience to determine, +how far and by what methods a practical equilibrium can be maintained which +will keep both metals in circulation in their appropriate spheres of common +use. + +An absolute equality of commercial value, free from disturbing +fluctuations, is hardly attainable, and without it an unlimited legal +tender for private transactions assigned to both metals would irresistibly +tend to drive out of circulation the clearer coinage and disappoint the +principal object proposed by the legislation in view. I apprehend, +therefore, that the two conditions of a near approach to equality of +commercial value between the gold and silver coinage of the same +denomination and of a limitation of the amounts for which the silver +coinage is to be a legal tender are essential to maintaining both in +circulation. If these conditions can be successfully observed, the issue +from the mint of silver dollars would afford material assistance to the +community in the transition to redeemable paper money, and would facilitate +the resumption of specie payment and its permanent establishment. Without +these conditions I fear that only mischief and misfortune would flow from a +coinage of silver dollars with the quality of unlimited legal tender, even +in private transactions. + +Any expectation of temporary ease from an issue of silver coinage to pass +as a legal tender at a rate materially above its commercial value is, I am +persuaded, a delusion. Nor can I think that there is any substantial +distinction between an original issue of silver dollars at a nominal value +materially above their commercial value and the restoration of the silver +dollar at a rate which once was, but has ceased to be, its commercial +value. Certainly the issue of our gold coinage, reduced in weight +materially below its legal-tender value, would not be any the less a +present debasement of the coinage by reason of its equaling, or even +exceeding, in weight a gold coinage which at some past time had been +commercially equal to the legal-tender value assigned to the new issue. + +In recommending that the regulation of any silver coinage which may be +authorized by Congress should observe these conditions of commercial value +and limited legal tender, I am governed by the feeling that every possible +increase should be given to the volume of metallic money which can be kept +in circulation, and thereby every possible aid afforded to the people in +the process of resuming specie payments. It is because of my firm +conviction that a disregard of these conditions would frustrate the good +results which are desired from the proposed coinage, and embarrass with new +elements of confusion and uncertainty the business of the country, that I +urge upon your attention these considerations. + +I respectfully recommend to Congress that in any legislation providing for +a silver coinage and imparting to it the quality of legal tender there be +impressed upon the measure a firm provision exempting the public debt +heretofore issued and now outstanding from payment, either of principal or +interest, in any coinage of less commercial value than the present gold +coinage of the country. + +The organization of the civil service of the country has for a number of +years attracted more and more of the public attention. So general has +become the opinion that the methods of admission to it and the conditions +of remaining in it are unsound that both the great political parties have +agreed in the most explicit declarations of the necessity of reform and in +the most emphatic demands for it. I have fully believed these declarations +and demands to be the expression of a sincere conviction of the intelligent +masses of the people upon the subject, and that they should be recognized +and followed by earnest and prompt action on the part of the legislative +and executive departments of the Government, in pursuance of the purpose +indicated. + +Before my accession to office I endeavored to have my own views distinctly +understood, and upon my inauguration my accord with the public opinion was +stated in terms believed to be plain and unambiguous. My experience in the +executive duties has strongly confirmed the belief in the great advantage +the country would find in observing strictly the plan of the Constitution, +which imposes upon the Executive the sole duty and responsibility of the +selection of those Federal officers who by law are appointed, not elected, +and which in like manner assigns to the Senate the complete right to advise +and consent to or to reject the nominations so made, whilst the House of +Representatives stands as the public censor of the performance of official +duties, with the prerogative of investigation and prosecution in all cases +of dereliction. The blemishes and imperfections in the civil service may, +as I think, be traced in most cases to a practical confusion of the duties +assigned to the several Departments of the Government. My purpose in this +respect has been to return to the system established by the fundamental +law, and to do this with the heartiest cooperation and most cordial +understanding with the Senate and House of Representatives. + +The practical difficulties in the selection of numerous officers for posts +of widely varying responsibilities and duties are acknowledged to be very +great. No system can be expected to secure absolute freedom from mistakes, +and the beginning of any attempted change of custom is quite likely to be +more embarrassed in this respect than any subsequent period. It is here +that the Constitution seems to me to prove its claim to the great wisdom +accorded to it. It gives to the Executive the assistance of the knowledge +and experience of the Senate, which, when acting upon nominations as to +which they may be disinterested and impartial judges, secures as strong a +guaranty of freedom from errors of importance as is perhaps possible in +human affairs. + +In addition to this, I recognize the public advantage of making all +nominations, as nearly as possible, impersonal, in the sense of being free +from mere caprice or favor in the selection; and in those offices in which +special training is of greatly increased value I believe such a rule as to +the tenure of office should obtain as may induce men of proper +qualifications to apply themselves industriously to the task of becoming +proficients. Bearing these things in mind, I have endeavored to reduce the +number of changes in subordinate places usually made upon the change of the +general administration, and shall most heartily cooperate with Congress in +the better systematizing of such methods and rules of admission to the +public service and of promotion within it as, may promise to be most +successful in making thorough competency, efficiency, and character the +decisive tests in these matters. + +I ask the renewed attention of Congress to what has already been done by +the Civil Service Commission, appointed, in pursuance of an act of +Congress, by my predecessor, to prepare and revise civil-service rules. In +regard to much of the departmental service, especially at Washington, it +may be difficult to organize a better system than that which has thus been +provided, and it is now being used to a considerable extent under my +direction. The Commission has still a legal existence, although for several +years no appropriation has been made for defraying its expenses. Believing +that this Commission has rendered valuable service and will be a most +useful agency in improving the administration of the civil service, I +respectfully recommend that a suitable appropriation, to be immediately +available, be made to enable it to continue its labors. + +It is my purpose to transmit to Congress as early as practicable a report +by the chairman of the Commission, and to ask your attention to such +measures on this subject as in my opinion will further promote the +improvement of the civil service. + +During the past year the United States have continued to maintain peaceful +relations with foreign powers. + +The outbreak of war between Russia and Turkey, though at one time attended +by grave apprehension as to its effect upon other European nations, has had +no tendency to disturb the amicable relations existing between the United +States and each of the two contending powers. An attitude of just and +impartial neutrality has been preserved, and I am gratified to state that +in the midst of their hostilities both the Russian and the Turkish +Governments have shown an earnest disposition to adhere to the obligations +of all treaties with the United States and to give due regard to the rights +of American citizens. + +By the terms of the treaty defining the rights, immunities, and privileges +of consuls, between Italy and the United States, ratified in 1868, either +Government may, after the lapse of ten years, terminate the existence of +the treaty by giving twelve months' notice of its intention. The Government +of Italy, availing itself of this faculty, has now given the required +notice, and the treaty will accordingly end on the 17th of September, 1878. +It is understood, however, that the Italian Government wishes to renew it +in its general scope, desiring only certain modifications in some of its +articles. In this disposition I concur, and shall hope that no serious +obstacles may intervene to prevent or delay the negotiation of a +satisfactory treaty. + +Numerous questions in regard to passports, naturalization, and exemption +from military service have continued to arise in cases of emigrants from +Germany who have returned to their native country. The provisions of the +treaty of February 22, 1868, however, have proved to be so ample and so +judicious that the legation of the United States at Berlin has been able to +adjust all claims arising under it, not only without detriment to the +amicable relations existing between the two Governments, but, it is +believed, without injury or injustice to any duly naturalized American +citizen. It is desirable that the treaty originally made with the North +German Union in 1868 should now be extended so as to apply equally to all +the States of the Empire of Germany. + +The invitation of the Government of France to participate in the Exposition +of the Products of Agriculture, Industry, and the Fine Arts to be held at +Paris during the coming year was submitted for your consideration at the +extra session. It is not doubted that its acceptance by the United States, +and a well-selected exhibition of the products of American industry on that +occasion, will tend to stimulate international commerce and emigration, as +well as to promote the traditional friendship between the two countries. + +A question arose some time since as to the proper meaning of the +extradition articles of the treaty of 1842 between the United States and +Great Britain. Both Governments, however, are now in accord in the belief +that the question is not one that should be allowed to frustrate the ends +of justice or to disturb the friendship between the two nations. No serious +difficulty has arisen in accomplishing the extradition of criminals when +necessary. It is probable that all points of disagreement will in due time +be settled, and, if need be, more explicit declarations be made in a new +treaty. + +The Fishery Commission under Articles XVIII to XXV of the treaty of +Washington has concluded its session at Halifax. The result of the +deliberations of the commission, as made public by the commissioners, will +be communicated to Congress. + +A treaty for the protection of trade-marks has been negotiated with Great +Britain, which has been submitted to the Senate for its consideration. + +The revolution which recently occurred in Mexico was followed by the +accession of the successful party to power and the installation of its +chief, General Porfirio Diaz, in the Presidential office. It has been the +custom of the United States, when such changes of government have +heretofore occurred in Mexico, to recognize and enter into official +relations with the de facto government as soon as it should appear to have +the approval of the Mexican people and should manifest a disposition to +adhere to the obligations of treaties and international friendship. In the +present case such official recognition has been deferred by the occurrences +on the Rio Grande border, the records of which have been already +communicated to each House of Congress in answer to their respective +resolutions of inquiry. Assurances have been received that the authorities +at the seat of the Mexican Government have both the disposition and the +power to prevent and punish such unlawful invasions and depredations. It is +earnestly to be hoped that events may prove these assurances to be well +rounded. The best interests of both countries require the maintenance of +peace upon the border and the development of commerce between the two +Republics. + +It is gratifying to add that this temporary interruption of official +relations has not prevented due attention by the representatives of the +United States in Mexico to the protection of American citizens, so far as +practicable; nor has it interfered with the prompt payment of the amounts +due from Mexico to the United States under the treaty of July 4, 1868, and +the awards of the joint commission. While I do not anticipate an +interruption of friendly relations with Mexico, yet I can not but look with +some solicitude upon a continuance of border disorders as exposing the two +countries to initiations of popular feeling and mischances of action which +are naturally unfavorable to complete amity. Firmly determined that nothing +shall be wanting on my part to promote a good understanding between the two +nations, I yet must ask the attention of Congress to the actual occurrences +on the border, that the lives and property of our citizens may be +adequately protected and peace preserved. + +Another year has passed without bringing to a close the protracted contest +between the Spanish Government and the insurrection in the island of Cuba. +While the United States have sedulously abstained from any intervention in +this contest, it is impossible not to feel that it is attended with +incidents affecting the rights and interests of American citizens. Apart +from the effect of the hostilities upon trade between the United States and +Cuba, their progress is inevitably accompanied by complaints, having more +or less foundation, of searches, arrests, embargoes, and oppressive taxes +upon the property of American residents, and of unprovoked interference +with American vessels and commerce. It is due to the Government of Spain to +say that during the past year it has promptly disavowed and offered +reparation for any unauthorized acts of unduly zealous subordinates +whenever such acts have been brought to its attention. Nevertheless, such +occurrences can not but tend to excite feelings of annoyance, suspicion, +and resentment, which are greatly to be deprecated, between the respective +subjects and citizens of two friendly powers. + +Much delay (consequent upon accusations of fraud in some of the awards) has +occurred in respect to the distribution of the limited amounts received +from Venezuela under the treaty of April 25, 1866, applicable to the awards +of the joint commission created by that treaty. So long as these matters +are pending in Congress the Executive can not assume either to pass upon +the questions presented or to distribute the fund received. It is eminently +desirable that definite legislative action should be taken, either +affirming the awards to be final or providing some method for reexamination +of the claims. Our relations with the Republics of Central and South +America and with the Empire of Brazil have continued without serious +change, further than the temporary interruption of diplomatic intercourse +with Venezuela and with Guatemala. Amicable relations have already been +fully restored with Venezuela, and it is not doubted that all grounds of +misunderstanding with Guatemala will speedily be removed. From all these +countries there are favorable indications of a disposition on the part of +their Governments and people to reciprocate our efforts in the direction of +increased commercial intercourse. + +The Government of the Samoan Islands has sent an envoy, in the person of +its secretary of state, to invite the Government of the United States to +recognize and protect their independence, to establish commercial relations +with their people, and to assist them in their steps toward regulated and +responsible government. The inhabitants of these islands, having made +considerable progress in Christian civilization and the development of +trade, are doubtful of their ability to maintain peace and independence +without the aid of some stronger power. The subject is deemed worthy of +respectful attention, and the claims upon our assistance by this distant +community will be carefully considered. + +The long commercial depression in the United States has directed attention +to the subject of the possible increase of our foreign trade and the +methods for its development, not only with Europe, but with other +countries, and especially with the States and sovereignties of the Western +Hemisphere. Instructions from the Department of State were issued to the +various diplomatic and consular officers of the Government, asking them to +devote attention to the question of methods by which trade between the +respective countries of their official residence and the United States +could be most judiciously fostered. In obedience to these instructions, +examinations and reports upon this subject have been made by many of these +officers and transmitted to the Department, and the same are submitted to +the consideration of Congress. + +The annual report of the Secretary of the Treasury on the state of the +finances presents important questions for the action of Congress, upon some +of which I have already remarked. + +The revenues of the Government during the fiscal year ending June 30, 1877, +were $269,000,586.62; the total expenditures for the same period were +$238,660,008.93, leaving a surplus revenue of $30,340,577.69. This has +substantially supplied the requirements of the sinking fund for that year. +The estimated revenues of the current fiscal year are $265,500,000, and the +estimated expenditures for the same period are $232,430,643.72. If these +estimates prove to be correct, there will be a surplus revenue of +$33,069,356.28--an amount nearly sufficient for the sinking fund for that +year. The estimated revenues for the next fiscal year are $269,250,000. It +appears from the report that during the last fiscal year the revenues of +the Government, compared with the previous year, have largely decreased. +This decrease, amounting to the sum of $18,481,452.54, was mainly in +customs duties, caused partly by a large falling off of the amount of +imported dutiable goods and partly by the general fall of prices in the +markets of production of such articles as pay ad valorem taxes. + +While this is felt injuriously in the diminution of the revenue, it has +been accompanied with a very large increase of exportations. The total +exports during the last fiscal year, including coin, have been +$658,637,457, and the imports have been $492,097,540, leaving a balance of +trade in favor of the United States amounting to the sum of $166,539,917, +the beneficial effects of which extend to all branches of business. + +The estimated revenue for the next fiscal year will impose upon Congress +the duty of strictly limiting appropriations, including the requisite sum +for the maintenance of the sinking fund, within the aggregate estimated +receipts. + +While the aggregate of taxes should not be increased, amendments might be +made to the revenue laws that would, without diminishing the revenue, +relieve the people from unnecessary burdens. A tax on tea and coffee is +shown by the experience not only of our own country, but of other +countries, to be easily collected, without loss by undervaluation or fraud, +and largely borne in the country of production. A tax of 10 cents a pound +on tea and 2 cents a pound on coffee would produce a revenue exceeding +$12,000,000, and thus enable Congress to repeal a multitude of annoying +taxes yielding a revenue not exceeding that sum. The internal-revenue +system grew out of the necessities of the war, and most of the legislation +imposing taxes upon domestic products under this system has been repealed. +By the substitution of a tax on tea and coffee all forms of internal +taxation may be repealed, except that on whisky, spirits, tobacco, and +beer. Attention is also called to the necessity of enacting more vigorous +laws for the protection of the revenue and for the punishment of frauds and +smuggling. This can best be done by judicious provisions that will induce +the disclosure of attempted fraud by undervaluation and smuggling. All +revenue laws should be simple in their provisions and easily understood. So +far as practicable, the rates of taxation should be in the form of specific +duties, and not ad valorem, requiring the judgment of experienced men to +ascertain values and exposing the revenue to the temptation of fraud. + +My attention has been called during the recess of Congress to abuses +existing in the collection of the customs, and strenuous efforts have been +made for their correction by Executive orders. The recommendations +submitted to the Secretary of the Treasury by a commission appointed to +examine into the collection of customs duties at the port of New York +contain many suggestions for the modification of the customs laws, to which +the attention of Congress is invited. + +It is matter of congratulation that notwithstanding the severe burdens +caused by the war the public faith with all creditors has been preserved, +and that as the result of this policy the public credit has continuously +advanced and our public securities are regarded with the highest favor in +the markets of the world. I trust that no act of the Government will cast a +shadow upon its credit. + +The progress of refunding the public debt has been rapid and satisfactory. +Under the contract existing when I entered upon the discharge of the duties +of my office, bonds bearing interest at the rate of 4 1/2 per cent were +being rapidly sold, and within three months the aggregate sales of these +bonds had reached the sum of $200,000,000. With my sanction the Secretary +of the Treasury entered into a new contract for the sale of 4 per cent +bonds, and within thirty days after the popular subscription for such bonds +was opened subscriptions were had amounting to $75,496,550, which were paid +for within ninety days after the date of subscription. By this process, +within but little more than one year, the annual interest on the public +debt was reduced in the sum of $3,775,000. + +I recommended that suitable provision be made to enable the people to +easily convert their savings into Government securities, as the best mode +in which small savings may be well secured and yield a moderate interest. +It is an object of public policy to retain among our own people the +securities of the United States. In this way our country is guarded against +their sudden return from foreign countries, caused by war or other +disturbances beyond our limits. + +The commerce of the United States with foreign nations, and especially the +export of domestic productions, has of late years largely increased; but +the greater portion of this trade is conducted in foreign vessels. The +importance of enlarging our foreign trade, and especially by direct and +speedy interchange with countries on this continent, can not be +overestimated; and it is a matter of great moment that our own shipping +interest should receive, to the utmost practical extent, the benefit of our +commerce with other lands. These considerations are forcibly urged by all +the large commercial cities of the country, and public attention is +generally and wisely attracted to the solution of the problems they +present. It is not doubted that Congress will take them up in the broadest +spirit of liberality and respond to the public demand by practical +legislation upon this important subject. + +The report of the Secretary of War shows that the Army has been actively +employed during the year, and has rendered very important service in +suppressing hostilities in the Indian country and in preserving peace and +protecting life and property in the interior as well as along the Mexican +border. A long and arduous campaign has been prosecuted, with final +complete success, against a portion of the Nez Perce tribe of Indians. A +full account of this campaign will be found in the report of the General of +the Army. It will be seen that in its course several severe battles were +fought, in which a number of gallant officers and men lost their lives. I +join with the Secretary of War and the General of the Army in awarding to +the officers and men employed in the long and toilsome pursuit and in the +final capture of these Indians the honor and praise which are so justly +their due. + +The very serious riots which occurred in several of the States in July last +rendered necessary the employment of a considerable portion of the Army to +preserve the peace and maintain order. In the States of West Virginia, +Maryland, Pennsylvania, and Illinois these disturbances were so formidable +as to defy the local and State authorities, and the National Executive was +called upon, in the mode provided by the Constitution and laws, to furnish +military aid. I am gratified to be able to state that the troops sent in +response to these calls for aid in the suppression of domestic violence +were able, by the influence of their presence in the disturbed regions, to +preserve the peace and restore order without the use of force. In the +discharge of this delicate and important duty both officers and men acted +with great prudence and courage, and for their services deserve the thanks +of the country. + +Disturbances along the Rio Grande in Texas, to which I have already +referred, have rendered necessary the constant employment of a military +force in that vicinity. A full report of all recent military operations in +that quarter has been transmitted to the House of Representatives in answer +to a resolution of that body, and it will therefore not be necessary to +enter into details. I regret to say that these lawless incursions into our +territory by armed bands from the Mexican side of the line, for the purpose +of robbery, have been of frequent occurrence, and in spite of the most +vigilant efforts of the commander of our forces the marauders have +generally succeeded in escaping into Mexico with their plunder. In May last +I gave orders for the exercise of the utmost vigilance on the part of our +troops for the suppression of these raids and the punishment of the guilty +parties, as well as the recapture of property stolen by them. General Ord, +commanding in Texas, was directed to invite the cooperation of the Mexican +authorities in efforts to this end, and to assure them that I was anxious +to avoid giving the least offense to Mexico. At the same time, he was +directed to give notice of my determination to put an end to the invasion +of our territory by lawless bands intent upon the plunder of our peaceful +citizens, even if the effectual punishment of the outlaws should make the +crossing of the border by our troops in their pursuit necessary. It is +believed that this policy has had the effect to check somewhat these +depredations, and that with a considerable increase of our force upon that +frontier and the establishment of several additional military posts along +the Rio Grande, so as more effectually to guard that extensive border, +peace may be preserved and the lives and property of our citizens in Texas +fully protected. + +Prior to the 1st day of July last the Army was, in accordance with law, +reduced to the maximum of 25,000 enlisted men, being a reduction of 2,500 +below the force previously authorized. This reduction was made, as required +by law, entirely from the infantry and artillery branches of the service, +without any reduction of the cavalry. Under the law as it now stands it is +necessary that the cavalry regiments be recruited to 100 men in each +company for service on the Mexican and Indian frontiers. The necessary +effect of this legislation is to reduce the infantry and artillery arms of +the service below the number required for efficiency, and I concur with the +Secretary of War in recommending that authority be given to recruit all +companies of infantry to at least 50 men and all batteries of artillery to +at least 75 men, with the power, in case of emergency, to increase the +former to 100 and the latter to 122 men each. + +I invite your special attention to the following recommendations of the +Secretary of War: + +First. That provision be made for supplying to the Army a more abundant and +better supply of reading matter. + +Second. That early action be taken by Congress looking to a complete +revision and republication of the Army Regulations. + +Third. That section 1258 of the Revised Statutes, limiting the number of +officers on the retired list, be repealed. + +Fourth. That the claims arising under the act of July 4, 1864, for supplies +taken by the Army during the war, be taken from the offices of the +Quartermaster and Commissary Generals and transferred to the Southern +Claims Commission, or some other tribunal having more time and better +facilities for their prompt investigation and decision than are possessed +by these officers. + +Fifth. That Congress provide for an annuity fund for the families of +deceased soldiers, as recommended by the paymaster-General of the Army. + +The report of the Secretary of the Navy shows that we have six squadrons +now engaged in the protection of our foreign commerce and other duties +pertaining to the naval service. The condition and operations of the +Department are also shown. The total expenditures for the fiscal year +ending June 30, 1877, were $16,077,974.54. There are unpaid claims against +the Department chargeable to the last year, which are presented to the +consideration of Congress by the report of the Secretary. The estimates for +the fiscal year commencing July 1, 1878, are $16,233,234.40, exclusive of +the sum of $2,314,231 submitted for new buildings, repairs, and +improvements at the several navy-yards. The appropriations for the present +fiscal year, commencing July 1, 1877, are $13,592,932.90. The amount drawn +from the Treasury from July 1 to November 1, 1877, is $5,343,037.40, of +which there is estimated to be yet available $1,029,528.30, showing the +amount of actual expenditure during the first four months of the present +fiscal year to have been $4,313,509.10. + +The report of the Postmaster-General contains a full and clear statement of +the operations and condition of the Post-Office Department. The ordinary +revenues of the Department for the fiscal year ending June 30, 1877, +including receipts from the money-order business and from official stamps +and stamped envelopes, amounted to the sum of $27,531,585.26. The +additional sum of $7,013,000 was realized from appropriations from the +general Treasury for various purposes, making the receipts from all sources +$34,544,885.26. The total expenditures during the fiscal year amounted to +$33,486,322.44, leaving an excess of total receipts over total expenditures +of $1,058,562.82, and an excess of total expenditures over ordinary +receipts of $5,954,737.18. Deducting from the total receipts the sum of +$63,261.84, received from international money orders of the preceding +fiscal year, and deducting from the total expenditures the sum of +$1,163,818.20, paid on liabilities incurred in previous fiscal years, the +expenditures and receipts appertaining to the business of the last fiscal +year were as follows: + +Expenditures - $32,322,504.24 + +Receipts (ordinary, from money-order business and +from official postage stamps) - 27,468,323,420 - + +*** + +State of the Union Address +Rutherford B. Hayes +December 2, 1878 + +Fellow-Citizens of the Senate and House of Representatives: + +Our heartfelt gratitude is due to the Divine Being who holds in His hands +the destinies of nations for the continued bestowal during the last year of +countless blessings upon our country. + +We are at peace with all other nations. Our public credit has greatly +improved, and is perhaps now stronger than ever before. Abundant harvests +have rewarded the labors of those who till the soil, our manufacturing +industries are reviving, and it is believed that general prosperity, which +has been so long anxiously looked for, is at last within our reach. + +The enjoyment of health by our people generally has, however, been +interrupted during the past season by the prevalence of a fatal pestilence +(the yellow fever) in some portions of the Southern States, creating an +emergency which called for prompt and extraordinary measures of relief. The +disease appeared as an epidemic at New Orleans and at other places on the +Lower Mississippi soon after midsummer. It was rapidly spread by fugitives +from the infected cities and towns, and did not disappear until early in +November. The States of Louisiana, Mississippi, and Tennessee have suffered +severely. About 100,000 cases are believed to have occurred, of which about +20,000, according to intelligent estimates, proved fatal. It is impossible +to estimate with any approach to accuracy the loss to the country +occasioned by this epidemic It is to be reckoned by the hundred millions of +dollars. The suffering and destitution that resulted excited the deepest +sympathy in all parts of the Union. Physicians and nurses hastened from +every quarter to the assistance of the afflicted communities. Voluntary +contributions of money and supplies, in every needed form, were speedily +and generously furnished. The Government was able to respond in some +measure to the call for help, by providing tents, medicines, and food for +the sick and destitute, the requisite directions for the purpose being +given in the confident expectation that this action of the Executive would +receive the sanction of Congress. About 1,800 tents, and rations of the +value of about $25,000, were sent to cities and-towns which applied for +them, full details of which will be furnished to Congress by the proper +Department. + +The fearful spread of this pestilence has awakened a very general public +sentiment in favor of national sanitary administration, which shall not +only control quarantine, but have the sanitary supervision of internal +commerce in times of epidemics, and hold an advisory relation to the State +and municipal health authorities, with power to deal with whatever +endangers the public health, and which the municipal and State authorities +are unable to regulate. The national quarantine act approved April 29, +1878, which was passed too late in the last session of Congress to provide +the means for carrying it into practical operation during the past season, +is a step in the direction here indicated. In view of the necessity for the +most effective measures, by quarantine and otherwise, for the protection of +our seaports and the country generally from this and other epidemics, it is +recommended that Congress give to the whole subject early and careful +consideration. + +The permanent pacification of the country by the complete protection of all +citizens in every civil and political right continues to be of paramount +interest with the great body of our people. Every step in this direction is +welcomed with public approval, and every interruption of steady and uniform +progress to the desired consummation awakens general uneasiness and +widespread condemnation. The recent Congressional elections have furnished +a direct and trustworthy test of the advance thus far made in the practical +establishment of the right of suffrage secured by the Constitution to the +liberated race in the Southern States. All disturbing influences, real or +imaginary, had been removed from all of these States. + +The three constitutional amendments which conferred freedom and equality of +civil and political rights upon the colored people of the South were +adopted by the concurrent action of the great body of good citizens who +maintained the authority of the National Government and the integrity and +perpetuity of the Union at such a cost of treasure and life, as a wise and +necessary embodiment in the organic law of the just results of the war. The +people of the former slaveholding States accepted these results, and gave +in every practicable form assurances that the thirteenth, fourteenth, and +fifteenth amendments, and laws passed in pursuance thereof, should in good +faith be enforced, rigidly and impartially, in letter and spirit, to the +end that the humblest citizen, without distinction of race or color, should +under them receive full and equal protection in person and property and in +political rights and privileges. By these constitutional amendments the +southern section of the Union obtained a large increase of political power +in Congress and in the electoral college, and the country justly expected +that elections would proceed, as to the enfranchised race, upon the same +circumstances of legal and constitutional freedom and protection which +obtained in all the other States of the Union. The friends of law and order +looked forward to the conduct of these elections as offering to the general +judgment of the country an important opportunity to measure the degree in +which the right of suffrage could be exercised by the colored people and +would be respected by their fellow-citizens; but a more general enjoyment +of freedom of suffrage by the colored people and a more just and generous +protection of that freedom by the communities of which they form a part +were generally anticipated than the record of the elections discloses. In +some of those States in which the colored people have been unable to make +their opinions felt in the elections the result is mainly due to influences +not easily measured or remedied by legal protection; but in the States of +Louisiana and South Carolina at large, and in some particular Congressional +districts outside of those States, the records of the elections seem to +compel the conclusion that the rights of the colored voters have been +overridden and their participation in the elections not permitted to be +either general or free. + +It will be for the Congress for which these elections were held to make +such examinations into their conduct as may be appropriate to determine the +validity of the claims of members to their seats. In the meanwhile it +becomes the duty of the executive and judicial departments of the +Government, each in its province, to inquire into and punish violations of +the laws of the United States which have occurred. I can but repeat what I +said in this connection in my last message, that whatever authority rests +with me to this end I shall not hesitate to put forth; and I am unwilling +to forego a renewed appeal to the legislatures, the courts, the executive +authorities, and the people of the States where these wrongs have been +perpetrated to give their assistance toward bringing to justice the +offenders and preventing a repetition of the crimes. No means within my +power will be spared to obtain a full and fair investigation of the alleged +crimes and to secure the conviction and just punishment of the guilty. + +It is to be observed that the principal appropriation made for the +Department of Justice at the last session contained the following clause: +And for defraying the expenses which may be incurred in the enforcement of +the act approved February 28, 1871, entitled "An act to amend an act +approved May 31, 1870, entitled 'An act to enforce the rights of citizens +of the United States to vote in the several States of this Union, and for +other purposes,'" or any acts amendatory thereof or supplementary thereto. +It is the opinion of the Attorney-General that the expenses of these +proceedings will largely exceed the amount which was thus provided, and I +rely confidently upon Congress to make adequate appropriations to enable +the executive department to enforce the laws. + +I respectfully urge upon your attention that the Congressional elections, +in every district, in a very important sense, are justly a matter of +political interest and concern throughout the whole country. Each State, +every political party, is entitled to the share of power which is conferred +by the legal and constitutional suffrage. It is the right of every citizen +possessing the qualifications prescribed by law to east one unintimidated +ballot and to have his ballot honestly counted. So long as the exercise of +this power and the enjoyment of this right are common and equal, +practically as well as formally, submission to the results of the suffrage +will be accorded loyally and cheerfully, and all the departments of +Government will feel the true vigor of the popular will thus expressed. No +temporary or administrative interests of Government, however urgent or +weighty, will ever displace the zeal of our people in defense of the +primary rights of citizenship. They understand that the protection of +liberty requires the maintenance in full vigor of the manly methods of free +speech, free press, and free suffrage, and will sustain the full authority +of Government to enforce the laws which are framed to preserve these +inestimable rights. The material progress and welfare of the States depend +on the protection afforded to their citizens. There can be no peace without +such protection, no prosperity without peace, and the whole country is +deeply interested in the growth and prosperity of all its parts. + +While the country has not yet reached complete unity of feeling and +reciprocal confidence between the communities so lately and so seriously +estranged, I feel an absolute assurance that the tendencies are in that +direction, and with increasing force. The power of public opinion will +override all political prejudices and all sectional or State attachments in +demanding that all over our wide territory the name and character of +citizen of the United States shall mean one and the same thing and carry +with them unchallenged security and respect. + +Our relations with other countries continue peaceful. Our neutrality in +contests between foreign powers has been maintained and respected. + +The Universal Exposition held at Paris during the past summer has been +attended by large numbers of our citizens. The brief period allowed for the +preparation and arrangement of the contributions of our citizens to this +great exposition was well employed in energetic and judicious efforts to +overcome this disadvantage. These efforts, led and directed by the +commissioner-general, were remarkably successful, and the exhibition of the +products of American industry was creditable and gratifying in scope and +character. The reports of the United States commissioners, giving its +results in detail, will be duly laid before you. Our participation in this +international competition for the favor and the trade of the world may be +expected to produce useful and important results--in promoting intercourse, +friendship, and commerce with other nations. + +In accordance with the provisions of the act of February 28, 1878, three +commissioners were appointed to an international conference on the subject +of adopting a common ratio between gold and silver, for the purpose of +establishing internationally the use of bimetallic money and securing +fixity of relative value between those metals. + +Invitations were addressed to the various governments which had expressed a +willingness to participate in its deliberations. The conference held its +meetings in Paris in August last. The report of the commissioners, herewith +submitted, will show its results. No common ratio between gold and silver +could be agreed upon by the conference. The general conclusion was reached +that it is necessary to maintain in the world the monetary functions of +silver as well as of gold, leaving the selection of the use of one or the +other of these two metals, or of both, to be made by each state. + +Congress having appropriated at its last session the sum of $5,500,000 to +pay the award of the joint commission at Halifax, if, after correspondence +with the British Government on the subject of the conformity of the award +to the requirements of the treaty and to the terms of the question thereby +submitted to the commission, the President shall deem it his duty to make +the payment, communications upon these points were addressed to the British +Government through the legation of the United States at London. Failing to +obtain the concurrence of the British Government in the views of this +Government respecting the award, I have deemed it my duty to tender the sum +named within the year fixed by the treaty, accompanied by a notice of the +grounds of the payment and a protest against any other construction of the +same. The correspondence upon this subject will be laid before you. + +The Spanish Government has officially announced the termination of the +insurrection in Cuba and the restoration of peace throughout that island. +Confident expectations are expressed of a revival of trade and prosperity, +which it is earnestly hoped may prove well rounded. Numerous claims of +American citizens for relief for injuries or restoration of property have +been among the incidents of the long-continued hostilities. Some of these +claims are in process of adjustment by Spain, and the others are promised +early and careful consideration. + +The treaty made with Italy in regard to reciprocal consular privileges has +been duly ratified and proclaimed. + +No questions of grave importance have arisen with any other of the European +powers. + +The Japanese Government has been desirous of a revision of such parts of +its treaties with foreign powers as relate to commerce, and it is +understood has addressed to each of the treaty powers a request to open +negotiations with that view. The United States Government has been inclined +to regard the matter favorably. Whatever restrictions upon trade with Japan +are found injurious to that people can not but affect injuriously nations +holding commercial intercourse with them. Japan, after a long period of +seclusion, has within the past few years made rapid strides in the path of +enlightenment and progress, and, not unreasonably, is looking forward to +the time when her relations with the nations of Europe and America shall be +assimilated to those which they hold with each other. A treaty looking to +this end has been made, which will be submitted for the consideration of +the Senate. + +After an interval of several years the Chinese Government has again sent +envoys to the United States. They have been received, and a permanent +legation is now established here by that Government. It is not doubted that +this step will be of advantage to both nations in promoting friendly +relations and removing causes of difference. + +The treaty with the Samoan Islands, having been duly ratified and accepted +on the part of both Governments, is now in operation, and a survey and +soundings of the harbor of Pago-Pago have been made by a naval vessel of +the United States, with a view of its occupation as a naval station if +found desirable to the service. + +Since the resumption of diplomatic relations with Mexico correspondence has +been opened and still continues between the two Governments upon the +various questions which at one time seemed to endanger their relations. +While no formal agreement has been reached as to the troubles on the +border, much has been done to repress and diminish them. The effective +force of United States troops on the Rio Grande, by a strict and faithful +compliance with instructions, has done much to remove the sources of +dispute, and it is now understood that a like force of Mexican troops on +the other side of the river is also making an energetic movement against +the marauding Indian tribes. This Government looks with the greatest +satisfaction upon every evidence of strength in the national authority of +Mexico, and upon every effort put forth to prevent or to punish incursions +upon our territory. Reluctant to assume any action or attitude in the +control of these incursions by military movements across the border not +imperatively demanded for the protection of the lives and property of our +own citizens, I shall take the earliest opportunity consistent with the +proper discharge of this plain duty to recognize the ability of the Mexican +Government to restrain effectively violations of our territory. It is +proposed to hold next year an international exhibition in Mexico, and it is +believed that the display of the agricultural and manufacturing products of +the two nations will tend to better understanding and increased commercial +intercourse between their people. + +With Brazil and the Republics of Central and South America some steps have +been taken toward the development of closer commercial intercourse. +Diplomatic relations have been resumed with Colombia and with Bolivia. A +boundary question between the Argentine Republic and Paraguay has been +submitted by those Governments for arbitration to the President of the +United States, and I have, after careful examination, given a decision upon +it. + +A naval expedition up the Amazon and Madeira rivers has brought back +information valuable both for scientific and commercial purposes. A like +expedition is about visiting the coast of Africa and the Indian Ocean. The +reports of diplomatic and consular officers in relation to the development +of our foreign commerce have furnished many facts that have proved of +public interest and have stimulated to practical exertion the enterprise of +our people. + +The report of the Secretary of the Treasury furnishes a detailed statement +of the operations of that Department of the Government and of the condition +of the public finances. + +The ordinary revenues from all sources for the fiscal year ended June 30, +1878, were $257,763,878.70; the ordinary expenditures for the same period +were $236,964,326.80, leaving a surplus revenue for the year of +$20,799,551.90. The receipts for the present fiscal year, ending June 30, +1879, actual and estimated, are as follows: Actual receipts for the first +quarter, commencing July 1, 1878, $73,389,743.43; estimated receipts for +the remaining three quarters of the year, $191,110,256.57; total receipts +for the current fiscal year, actual and estimated, $264,500,000. The +expenditures for the same period will be, actual and estimated, as follows: +For the quarter commencing July 1, 1878, actual expenditures, +$73,344,573.27; and for the remaining three quarters of the year the +expenditures are estimated at $166,755,426.73, making the total +expenditures $240,100,000, and leaving an estimated surplus revenue for the +year ending June 30, 1879, of $24,400,000. The total receipts during the +next fiscal year, ending June 30, 1880, estimated according to existing +laws, will be $264,500,000, and the estimated ordinary expenditures for the +same period will be $236,320,412.68, leaving a surplus of $28,179,587.32 +for that year. + +In the foregoing statements of expenditures, actual and estimated, no +amount is allowed for the sinking fund provided for by the act approved +February 25, 1862, which requires that 1 per cent of the entire debt of the +United States shall be purchased or paid within each fiscal year, to be set +apart as a sinking fund. There has been, however, a substantial compliance +with the conditions of the law. By its terms the public debt should have +been reduced between 1862 and the close of the last fiscal year +$518,361,806.28; the actual reduction of the ascertained debt in that +period has been $720,644,739.61, being in excess of the reduction required +by the sinking fund act $202,282,933.33. + +The amount of the public debt, less cash in the Treasury, November 1, 1878, +was $2,024,200,083.18 a reduction since the same date last year of +$23,150,617.39. + +The progress made during the last year in refunding the public debt at +lower rates of interest is very gratifying. The amount of 4 per cent bonds +sold during the present year prior to November 23, 1878, is $100,270,900, +and 6 per cent bonds, commonly known as five-twenties, to an equal amount, +have been or will be redeemed as calls mature. + +It has been the policy of the Department to place the 4 per cent bonds +within easy reach of every citizen who desires to invest his savings, +whether small or great, in these securities. The Secretary of the Treasury +recommends that the law be so modified that small sums may be invested, and +that through the post-offices or other agents of the Government the freest +opportunity may be given in all parts of the country for such investments. + +The best mode suggested is that the Department be authorized to issue +certificates of deposit, of the denomination of $10, bearing interest at +the rate of 3.65 per cent per annum and convertible at any time within one +year after their issue into the 4 per cent bonds authorized by the +refunding act, and to be issued only in exchange for United States notes +sent to the Treasury by mail or otherwise. Such a provision of law, +supported by suitable regulations, would enable any person readily, without +cost or risk, to convert his money into an interest-bearing security of the +United States, and the money so received could be applied to the redemption +of 6 per cent bonds. + +The coinage of gold during the last fiscal year was $52,798,980. The +coinage of silver dollars under the act passed February 28, 1878, amounted +on the 23d of November, 1878, to $19,814,550, of which amount $4,984,947 +are in circulation, and the balance, $14,829,603, is still in the +possession of the Government. + +With views unchanged with regard to the act under which the coinage of +silver proceeds, it has been the purpose of the Secretary faithfully to +execute the law and to afford a fair trial to the measure. + +In the present financial condition of the country I am persuaded that the +welfare of legitimate business and industry of every description will be +best promoted by abstaining from all attempts to make radical changes in +the existing financial legislation. Let it be understood that during the +coming year the business of the country will be undisturbed by governmental +interference with the laws affecting it, and we may confidently expect that +the resumption of specie payments, which will take place at the appointed +time, will be successfully and easily maintained, and that it will be +followed by a healthful and enduring revival of business prosperity. + +Let the healing influence of time, the inherent energies of our people, and +the boundless resources of our country have a fair opportunity, and relief +from present difficulties will surely follow. + +The report of the Secretary of War shows that the Army has been well and +economically supplied; that our small force has been actively employed and +has faithfully performed all the service required of it. The morale of the +Army has improved and the number of desertions has materially decreased +during the year. + +The Secretary recommends-- + +1. That a pension be granted to the widow of the late Lieutenant Henry H. +Benner, Eighteenth Infantry, who lost his life by yellow fever while in +command of the steamer. J.M. Chambers, sent with supplies for the relief of +sufferers in the South from that disease. + +2. The establishment of the annuity scheme for the benefit of the heirs of +deceased officers, as suggested by the Paymaster-General. + +3. The adoption by Congress of a plan for the publication of the records of +the War of the Rebellion, now being prepared for that purpose. + +4. The increase of the extra per diem of soldier teachers employed in post +schools, and liberal appropriations for the erection of buildings for +schools and libraries at the different posts. + +5. The repeal or amendment of the act of June 18, 1878, forbidding the use +of the Army "as a posse comitatus, or otherwise, for the purpose of +executing the laws, except in such cases and under such circumstances as +such employment of said force may be expressly authorized by the +Constitution or by act of Congress." + +6. The passage of a joint resolution of Congress legalizing the issues of +rations, tents, and medicines which were made for the relief of sufferers +from yellow fever. + +7. That provision be made for the erection of a fireproof building for the +preservation of certain valuable records, now constantly exposed to +destruction by fire. + +These recommendations are all commended to your favorable consideration. + +The report of the Secretary of the Navy shows that the Navy has improved +during the last fiscal year. Work has been done on seventy-five vessels, +ten of which have been thoroughly repaired and made ready for sea. Two +others are in rapid progress toward completion. The total expenditures of +the year, including the amount appropriated for the deficiencies of the +previous year, were $17,468,392.65. The actual expenses chargeable to the +year, exclusive of these deficiencies, were $13,306,914.09, or $767,199.18 +less than those of the previous year, and $4,928,677.74 less than the +expenses including the deficiencies. The estimates for the fiscal year +ending June 30, 1880, are $14,562,381.45, exceeding the appropriations of +the present year only $33,949.75, which excess is occasioned by the demands +of the Naval Academy and the Marine Corps, as explained in the Secretary's +report. The appropriations for the present fiscal year are $14,528,431.70, +which, in the opinion of the Secretary, will be ample for all the current +expenses of the Department during the year. The amount drawn from the +Treasury from July 1 to November 1, 1878, is $4,740,544.14, of which +$70,980.75 has been refunded, leaving as the expenditure for that period +$4,669,563.39, or $520,899.24 less than the corresponding period of the +last fiscal year. + +The report of the Postmaster-General embraces a detailed statement of the +operations of the Post-Office Department. The expenditures of that +Department for the fiscal year ended June 30, 1878, were $34,165,084.49. +The receipts, including sales of stamps, money-order business, and official +stamps, were $29,277,516.95. The sum of $290,436.90, included in the +foregoing statement of expenditures, is chargeable to preceding years, so +that the actual expenditures for the fiscal year ended June 30, 1878, are +$33,874,647.59. The amount drawn from the Treasury on appropriations, in +addition to the revenues of the Department, was $5,307,652.82. The +expenditures for the fiscal year ending June 30, 1880, are estimated at +$36,571,900 and the receipts from all sources at $30,664,023.90, leaving a +deficiency to be appropriated out of the Treasury of $5,907,876.10. The +report calls attention to the fact that the compensation of postmasters and +of railroads for carrying the mail is regulated by law, and that the +failure of Congress to appropriate the amounts required for these purposes +does not relieve the Government of responsibility, but necessarily +increases the deficiency bills which Congress will be called upon to pass. + +In providing for the postal service the following questions are presented: +Should Congress annually appropriate a sum for its expenses largely in +excess of its revenues, or should such rates of postage be established as +will make the Department self-sustaining? Should the postal service be +reduced by excluding from the mails matter which does not pay its way? +Should the number of post routes be diminished? Should other methods be +adopted which will increase the revenues or diminish the expenses of the +postal service? + +The International Postal Congress which met at Paris May 1, 1878, and +continued in session until June 4 of the same year, was composed of +delegates from nearly all the civilized countries of the world. It adopted +a new convention (to take the place of the treaty concluded at Berne +October 9, 1874), which goes into effect on the 1st of April, 1879, between +the countries whose delegates have signed it. It was ratified and approved, +by and with the consent of the President, August 13, 1878. A synopsis of +this Universal Postal Convention will be found in the report of the +Postmaster-General, and the full text in the appendix thereto. In its +origin the Postal Union comprised twenty-three countries, having a +population of 350,000,000 people. On the 1st of April next it will comprise +forty-three countries and colonies, with a population of more than +650,000,000 people, and will soon, by the accession of the few remaining +countries and colonies which maintain organized postal services, constitute +in fact as well as in name, as its new title indicates, a universal union, +regulating, upon a uniform basis of cheap postage rates, the postal +intercourse between all civilized nations. + +Some embarrassment has arisen out of the conflict between the customs laws +of this country and the provisions of the Postal Convention in regard to +the transmission of foreign books and newspapers to this country by mail. +It is hoped that Congress will be able to devise some means of reconciling +the difficulties which have thus been created, so as to do justice to all +parties involved. + +The business of the Supreme Court and of the courts in many of the circuits +has increased to such an extent during the past year that additional +legislation is imperative to relieve and prevent the delay of justice and +possible oppression to suitors which is thus occasioned. The encumbered +condition of these dockets is presented anew in the report of the +Attorney-General, and the remedy suggested is earnestly urged for +Congressional action. The creation of additional circuit judges, as +proposed, would afford a complete remedy, and would involve an expense, at +the present rate of salaries of not more than $60,000 a year. + +The annual reports of the Secretary of the Interior and of the Commissioner +of Indian Affairs present an elaborate account of the present condition of +the Indian tribes and of that branch of the public service which ministers +to their interests. While the conduct of the Indians generally has been +orderly and their relations with their neighbors friendly and peaceable, +two local disturbances have occurred, which were deplorable in their +character, but remained, happily, confined to a comparatively small number +of Indians. The discontent among the Bannocks, which led first to some acts +of violence on the part of some members of the tribe and finally to the +outbreak, appears to have been caused by an insufficiency of food on the +reservation, and this insufficiency to have been owing to the inadequacy of +the appropriations made by Congress to the wants of the Indians at a time +when the Indians were prevented from supplying the deficiency by hunting. +After an arduous pursuit by the troops of the United States, and several +engagements, the hostile Indians were reduced to subjection, and the larger +part of them surrendered themselves as prisoners. In this connection I +desire to call attention to the recommendation made by the Secretary of the +Interior, that a sufficient fund be placed at the disposal of the +Executive, to be used, with proper accountability, at discretion, in sudden +emergencies of the Indian service. + +The other case of disturbance was that of a band of Northern Cheyennes, who +suddenly left their reservation in the Indian Territory and marched rapidly +through the States of Kansas and Nebraska in the direction of their old +hunting grounds, committing murders and other crimes on their way. From +documents accompanying the report of the Secretary of the Interior it +appears that this disorderly band was as fully supplied with the +necessaries of life as the 4,700 other Indians who remained quietly on the +reservation, and that the disturbance was caused by men of a restless and +mischievous disposition among the Indians themselves. Almost the whole of +this band have surrendered to the military authorities; and it is a +gratifying fact that when some of them had taken refuge in the camp of the +Red Cloud Sioux, with whom they had been in friendly relations, the Sioux +held them as prisoners and readily gave them up to the officers of the +United States, thus giving new proof of the loyal spirit which, alarming +rumors to the contrary notwithstanding, they have uniformly shown ever +since the wishes they expressed at the council of September, 1877, had been +complied with. + +Both the Secretary of the Interior and the Secretary of War unite in the +recommendation that provision be made by Congress for the organization of a +corps of mounted "Indian auxiliaries," to be under the control of the Army +and to be used for the purpose of keeping the Indians on their reservations +and preventing or repressing disturbance on their part. I earnestly concur +in this recommendation. It is believed that the organization of such a body +of Indian cavalry, receiving a moderate pay from the Government, would +considerably weaken the restless element among the Indians by withdrawing +from it a number of young men and giving them congenial employment under +the Government, it being a matter of experience that Indians in our service +almost without exception are faithful in the performance of the duties +assigned to them. Such an organization would materially aid the Army in the +accomplishment of a task for which its numerical strength is sometimes +found insufficient. + +But while the employment of force for the prevention or repression of +Indian troubles is of occasional necessity, and wise preparation should be +made to that end, greater reliance must be placed on humane and civilizing +agencies for the ultimate solution of what is called the Indian problem. It +may be very difficult and require much patient effort to curb the unruly +spirit of the savage Indian to the restraints of civilized life, but +experience shows that it is not impossible. Many of the tribes which are +now quiet and orderly and self-supporting were once as savage as any that +at present roam over the plains or in the mountains of the far West, and +were then considered inaccessible to civilizing influences. It may be +impossible to raise them fully up to the level of the white population of +the United States; but we should not forget that they are the aborigines of +the country, and called the soil their own on which our people have grown +rich, powerful, and happy. We owe it to them as a moral duty to help them +in attaining at least that degree of civilization which they may be able to +reach. It is not only our duty, it is also our interest to do so. Indians +who have become agriculturists or herdsmen, and feel an interest in +property, will thenceforth cease to be a warlike and disturbing element. It +is also a well-authenticated fact that Indians are apt to be peaceable and +quiet when their children are at school, and I am gratified to know, from +the expressions of Indians themselves and from many concurring reports, +that there is a steadily increasing desire, even among Indians belonging to +comparatively wild tribes, to have their children educated. I invite +attention to the reports of the Secretary of the Interior and the +Commissioner of Indian Affairs touching the experiment recently +inaugurated, in taking fifty Indian children, boys and girls, from +different tribes, to the Hampton Normal Agricultural Institute in Virginia, +where they are to receive an elementary English education and training in +agriculture and other useful works, to be returned to their tribes, after +the completed course, as interpreters, instructors, and examples. It is +reported that the officer charged with the selection of those children +might have had thousands of young Indians sent with him had it been +possible to make provision for them. I agree with the Secretary of the +Interior in saying that "the result of this interesting experiment, if +favorable, may be destined to become an important factor in the advancement +of civilization among the Indians." + +The question whether a change in the control of the Indian service should +be made was at the last session of Congress referred to a committee for +inquiry and report. Without desiring to anticipate that report, I venture +to express the hope that in the decision of so important a question the +views expressed above may not be lost sight of, and that the decision, +whatever it may be, will arrest further agitation of this subject, such +agitation being apt to produce a disturbing effect upon the service, as +well as on the Indians themselves. + +In the enrollment of the bill making appropriations for sundry civil +expenses, at the last session of Congress, that portion which provided for +the continuation of the Hot Springs Commission was omitted. As the +commission had completed the work of taking testimony on the many +conflicting claims, the suspension of their labors, before determining the +rights of claimants, threatened for a time to embarrass the interests, not +only of the Government, but also of a large number of the citizens of Hot +Springs, who were waiting for final action on their claims before beginning +contemplated improvements. In order to prevent serious difficulties, which +were apprehended, and at the solicitation of many leading citizens of Hot +Springs and others interested in the welfare of the town, the Secretary of +the Interior was authorized to request the late commissioners to take +charge of the records of their proceedings and to perform such work as +could properly be done by them under such circumstances to facilitate the +future adjudication of the claims at an early day and to preserve the +status of the claimants until their rights should be finally determined. +The late commissioners complied with that request, and report that the +testimony in all the cases has been written out, examined, briefed, and so +arranged as to facilitate an early settlement when authorized by law. It is +recommended that the requisite authority be given at as early a day in the +session as possible, and that a fair compensation be allowed the late +commissioners for the expense incurred and the labor performed by them +since the 25th of June last. + +I invite the attention of Congress to the recommendations made by the +Secretary of the Interior with regard to the preservation of the timber on +the public lands of the United States. The protection of the public +property is one of the first duties of the Government. The Department of +the Interior should therefore be enabled by sufficient appropriations to +enforce the laws in that respect. But this matter appears still more +important as a question of public economy. The rapid destruction of our +forests is an evil fraught with the gravest consequences, especially in the +mountainous districts, where the rocky slopes, once denuded of their trees, +will remain so forever. There the injury, once done, can not be repaired. I +fully concur with the Secretary of the Interior in the opinion that for +this reason legislation touching the public timber in the mountainous +States and Territories of the West should be especially well considered, +and that existing laws in which the destruction of the forests is not +sufficiently guarded against should be speedily modified. A general law +concerning this important subject appears to me to be a matter of urgent +public necessity. + +From the organization of the Government the importance of encouraging by +all possible means the increase of our agricultural productions has been +acknowledged and urged upon the attention of Congress and the people as the +surest and readiest means of increasing our substantial and enduring +prosperity. + +The words of Washington are as applicable to-day as when, in his eighth +annual message, he said: It will not be doubted that, with reference either +to individual or national welfare, agriculture is of primary importance. In +proportion as nations advance in population and other circumstances of +maturity this truth becomes more apparent, and renders the cultivation of +the soil more and more an object of public patronage. Institutions for +promoting it grow up, supported by the public purse; and to what object can +it be dedicated with greater propriety? Among the means which have been +employed to this end none have been attended with greater success than the +establishment of boards (composed of proper characters) charged with +collecting and diffusing information, and enabled by premiums and small +pecuniary aids to encourage and assist a spirit of discovery and +improvement. This species of establishment contributes doubly to the +increase of improvement, by stimulating to enterprise and experiment, and +by drawing to a common center the results everywhere of individual skill +and observation and spreading them thence over the whole nation. Experience +accordingly hath shewn that they are very cheap instruments of immense +national benefits. The preponderance of the agricultural over any other +interest in the United States entitles it to all the consideration claimed +for it by Washington. About one-half of the population of the United States +is engaged in agriculture. The value of the agricultural products of the +United States for the year 1878 is estimated at $3,000,000,000. The exports +of agricultural products for the year 1877, as appears from the report of +the Bureau of Statistics, were $524,000,000. The great extent of our +country, with its diversity of soil and climate, enables us to produce +within our own borders and by our own labor not only the necessaries, but +most of the luxuries, that are consumed in civilized countries. Yet, +notwithstanding our advantages of soil, climate, and inter-communication, +it appears from the statistical statements in the report of the +Commissioner of Agriculture that we import annually from foreign lands many +millions of dollars worth of agricultural products which could be raised in +our own country. + +Numerous questions arise in the practice of advanced agriculture which can +only be answered by experiments, often costly and sometimes fruitless, +which are beyond the means of private individuals and are a just and proper +charge on the whole nation for the benefit of the nation. It is good +policy, especially in times of depression and uncertainty in other business +pursuits, with a vast area of uncultivated, and hence unproductive, +territory, wisely opened to homestead settlement, to encourage by every +proper and legitimate means the occupation and tillage of the soil. The +efforts of the Department of Agriculture to stimulate old and introduce new +agricultural industries, to improve the quality and increase the quantity +of our products, to determine the value of old or establish the importance +of new methods of culture, are worthy of your careful and favorable +consideration, and assistance by such appropriations of money and +enlargement of facilities as may seem to be demanded by the present +favorable conditions for the growth and rapid development of this important +interest. + +The abuse of animals in transit is widely attracting public attention. A +national convention of societies specially interested in the subject has +recently met at Baltimore, and the facts developed, both in regard to +cruelties to animals and the effect of such cruelties upon the public +health, would seem to demand the careful consideration of Congress and the +enactment of more efficient laws for the prevention of these abuses. + +The report of the Commissioner of the Bureau of Education shows very +gratifying progress throughout the country in all the interests committed +to the care of this important office. The report is especially encouraging +with respect to the extension of the advantages of the common-school system +in sections of the country where the general enjoyment of the privilege of +free schools is not yet attained. + +To education more than to any other agency we are to look as the resource +for the advancement of the people in the requisite knowledge and +appreciation of their rights and responsibilities as citizens, and I desire +to repeat the suggestion contained in my former message in behalf of the +enactment of appropriate measures by Congress for the purpose of +supplementing with national aid the local systems of education in the +several States. + +Adequate accommodations for the great library, which is overgrowing the +capacity of the rooms now occupied at the Capitol, should be provided +without further delay. This invaluable collection of books, manuscripts, +and illustrative art has grown to such proportions, in connection with the +copyright system of the country, as to demand the prompt and careful +attention of Congress to save it from injury in its present crowded and +insufficient quarters. As this library is national in its character, and +must from the nature of the case increase even more rapidly in the future +than in the past, it can not be doubted that the people will sanction any +wise expenditure to preserve it and to enlarge its usefulness. + +The appeal of the Regents of the Smithsonian Institution for the means to +organize, exhibit, and make available for the public benefit the articles +now stored away belonging to the National Museum I heartily recommend to +your favorable consideration. + +The attention of Congress is again invited to the condition of the river +front of the city of Washington. It is a matter of vital importance to the +health of the residents of the national capital, both temporary and +permanent, that the lowlands in front of the city, now subject to tidal +overflow, should be reclaimed. In their present condition these flats +obstruct the drainage of the city and are a dangerous source of malarial +poison. The reclamation will improve the navigation of the river by +restricting, and consequently deepening, its channel, and is also of +importance when considered in connection with the extension of the public +ground and the enlargement of the park west and south of the Washington +Monument. The report of the board of survey, heretofore ordered by act of +Congress, on the improvement of the harbor of Washington and Georgetown, is +respectfully commended to consideration. + +The report of the Commissioners of the District of Columbia presents a +detailed statement of the affairs of the District. + +The relative expenditures by the United States and the District for local +purposes is contrasted, showing that the expenditures by the people of the +District greatly exceed those of the General Government. The exhibit is +made in connection with estimates for the requisite repair of the defective +pavements and sewers of the city, which is a work of immediate necessity; +and in the same connection a plan is presented for the permanent funding of +the outstanding securities of the District. + +The benevolent, reformatory, and penal institutions of the District are all +entitled to the favorable attention of Congress. The Reform School needs +additional buildings and teachers. Appropriations which will place all of +these institutions in a condition to become models of usefulness and +beneficence will be regarded by the country as liberality wisely bestowed. + +The Commissioners, with evident justice, request attention to the +discrimination made by Congress against the District in the donation of +land for the support of the public schools, and ask that the same +liberality that has been shown to the inhabitants of the various States and +Territories of the United States may be extended to the District of +Columbia. + +The Commissioners also invite attention to the damage inflicted upon public +and private interests by the present location of the depots and switching +tracks of the several railroads entering the city, and ask for legislation +looking to their removal. The recommendations and suggestions contained in +the report will, I trust, receive the careful consideration of Congress. + +Sufficient time has, perhaps, not elapsed since the reorganization of the +government of the District under the recent legislation of Congress for the +expression of a confident opinion as to its successful operation, but the +practical results already attained are so satisfactory that the friends of +the new government may well urge upon Congress the wisdom of its +continuance, without essential modification, until by actual experience its +advantages and defects may be more fully ascertained. + +R. B. HAYES + +*** + +State of the Union Address +Rutherford B. Hayes +December 1, 1879 + +Fellow-Citizens of the Senate and House of Representatives: + +The members of the Forty-sixth Congress have assembled in their first +regular session under circumstances calling for mutual congratulation and +grateful acknowledgment to the Giver of All Good for the large and unusual +measure of national prosperity which we now enjoy. + +The most interesting events which have occurred in our public affairs since +my last annual message to Congress are connected with the financial +operations of the Government, directly affecting the business interests of +the country. I congratulate Congress on the successful execution of the +resumption act. At the time fixed, and in the manner contemplated by law, +United States notes began to be redeemed in coin. Since the 1st of January +last they have been promptly redeemed on presentation, and in all business +transactions, public and private, in all parts of the country, they are +received and paid out as the equivalent of coin. The demand upon the +Treasury for gold and silver in exchange for United States notes has been +comparatively small, and the voluntary deposit of coin and bullion in +exchange for notes has been very large. The excess of the precious metals +deposited or exchanged for United States notes over the amount of United +States notes redeemed is about $40,000,000. + +The resumption of specie payments has been followed by a very great revival +of business. With a currency equivalent in value to the money of the +commercial world, we are enabled to enter upon an equal competition with +other nations in trade and production. The increasing foreign demand for +our manufactures and agricultural products has caused a large balance of +trade in our favor, which has been paid in gold, from the 1st of July last +to November 15, to the amount of about $59,000,000. Since the resumption of +specie payments there has also been a marked and gratifying improvement of +the public credit. The bonds of the Government bearing only 4 per cent +interest have been sold at or above par, sufficient in amount to pay off +all of the national debt which was redeemable under present laws. The +amount of interest saved annually by the process of refunding the debt +since March 1, 1877, is $14,297,177. The bonds sold were largely in small +sums, and the number of our citizens now holding the public securities is +much greater than ever before. The amount of the national debt which +matures within less than two years is $792,121,700, of which $500,000,000 +bear interest at the rate of 5 per cent, and the balance is in bonds +bearing 6 per cent interest. It is believed that this part of the public +debt can be refunded by the issue of 4 per cent bonds, and, by the +reduction of interest which will thus be effected, about $11,000,000 can be +annually saved to the Treasury. To secure this important reduction of +interest to be paid by the United States further legislation is required, +which it is hoped will be provided by Congress during its present session. + +The coinage of gold by the mints of the United States during the last +fiscal year was $40,986,912. The coinage of silver dollars since the +passage of the act for that purpose up to November 1, 1879, was +$45,000,850, of which $12,700,344 have been issued from the Treasury and +are now in circulation, and $32,300,506 are still in the possession of the +Government. + +The pendency of the proposition for unity of action between the United +States and the principal commercial nations of Europe to effect a permanent +system for the equality of gold and silver in the recognized money of the +world leads me to recommend that Congress refrain from new legislation on +the general subject. The great revival of trade, internal and foreign, will +supply during the coming year its own instructions, which may well be +awaited before attempting further experimental measures with the coinage. I +would, however, strongly urge upon Congress the importance of authorizing +the Secretary of the Treasury to suspend the coinage of silver dollars upon +the present legal ratio. The market value of the silver dollar being +uniformly and largely less than the market value of the gold dollar, it is +obviously impracticable to maintain them at par with each other if both are +coined without limit. If the cheaper coin is forced into circulation, it +will, if coined without limit, soon become the sole standard of value, and +thus defeat the desired object, which is a currency of both gold and silver +which shall be of equivalent value, dollar for dollar, with the universally +recognized money of the world. + +The retirement from circulation of United States notes with the capacity of +legal tender in private contracts is a step to be taken in our progress +toward a safe and stable currency which should be accepted as the policy +and duty of the Government and the interest and security of the people. It +is my firm conviction that the issue of legal-tender paper money based +wholly upon the authority and credit of the Government, except in extreme +emergency, is without warrant in the Constitution and a violation of sound +financial principles. The issue of United States notes during the late +civil war with the capacity of legal tender between private individuals was +not authorized except as a means of rescuing the country from imminent +peril. The circulation of these notes as paper money for any protracted +period of time after the accomplishment of this purpose was not +contemplated by the framers of the law under which they were issued. They +anticipated the redemption and withdrawal of these notes at the earliest +practicable period consistent with the attainment of the object for which +they were provided. + +The policy of the United States, steadily adhered to from the adoption of +the Constitution, has been to avoid the creation of a national debt; and +when, from necessity in time of war, debts have been created, they have +been paid off, on the return of peace, as rapidly as possible. With this +view, and for this purpose, it is recommended that the existing laws for +the accumulation of a sinking fund sufficient to extinguish the public debt +within a limited period be maintained. If any change of the objects or +rates of taxation is deemed necessary by Congress, it is suggested that +experience has shown that a duty can be placed on tea and coffee which will +not enhance the price of those articles to the consumer, and which will add +several millions of dollars annually to the Treasury. + +The continued deliberate violation by a large number of the prominent and +influential citizens of the Territory of Utah of the laws of the United +States for the prosecution and punishment of polygamy demands the attention +of every department of the Government. This Territory has a population +sufficient to entitle it to admission as a State, and the general interests +of the nation, as well as the welfare of the citizens of the Territory, +require its advance from the Territorial form of government to the +responsibilities and privileges of a State. This important change will not, +however, be approved by the country while the citizens of Utah in very +considerable number uphold a practice which is condemned as a crime by the +laws of all civilized communities throughout the world. + +The law for the suppression of this offense was enacted with great +unanimity by Congress more than seventeen years ago, but has remained until +recently a dead letter in the Territory of Utah, because of the peculiar +difficulties attending its enforcement. The opinion widely prevailed among +the citizens of Utah that the law was in contravention of the +constitutional guaranty of religious freedom. This objection is now +removed. The Supreme Court of the United States has decided the law to be +within the legislative power of Congress and binding as a rule of action +for all who reside within the Territories. There is no longer any reason +for delay or hesitation in its enforcement. It should be firmly and +effectively executed. If not sufficiently stringent in its provisions, it +should be amended; and in aid of the purpose in view I recommend that more +comprehensive and more searching methods for preventing as well as +punishing this crime be provided. If necessary to secure obedience to the +law, the enjoyment and exercise of the rights and privileges of citizenship +in the Territories of the United States may be withheld or withdrawn from +those who violate or oppose the enforcement of the law on this subject. + +The elections of the past year, though occupied only with State officers, +have not failed to elicit in the political discussions which attended them +all over the country new and decisive evidence of the deep interest which +the great body of citizens take in the progress of the country toward a +more general and complete establishment, at whatever cost, of universal +security and freedom in the exercise of the elective franchise. While many +topics of political concern demand great attention from our people, both in +the sphere of national and State authority, I find no reason to qualify the +opinion I expressed in my last annual message, that no temporary or +administrative interests of government, however urgent or weighty, will +ever displace the zeal of our people in defense of the primary rights of +citizenship, and that the power of public opinion will override all +political prejudices, and all sectional and State attachments in demanding +that all over our wide territory the name and character of citizen of the +United States shall mean one and the same thing and carry with them +unchallenged security and respect. I earnestly appeal to the intelligence +and patriotism of all good citizens of every part of the country, however +much they maybe divided in opinions on other political subjects, to unite +in compelling obedience to existing laws aimed at the protection of the +right of suffrage. I respectfully urge upon Congress to supply any defects +in these laws which experience has shown and which it is within its power +to remedy. I again invoke the cooperation of the executive and legislative +authorities of the States in this great purpose. I am fully convinced that +if the public mind can be set at rest on this paramount question of popular +rights no serious obstacle will thwart or delay the complete pacification +of the country or retard the general diffusion of prosperity. + +In a former message I invited the attention of Congress to the subject of +the reformation of the civil service of the Government, and expressed the +intention of transmitting to Congress as early as practicable a report upon +this subject by the chairman of the Civil Service Commission. + +In view of the facts that during a considerable period the Government of +Great Britain has been dealing with administrative problems and abuses in +various particulars analogous to those presented in this country, and that +in recent years the measures adopted were understood to have been effective +and in every respect highly satisfactory, I thought it desirable to have +fuller information upon the subject, and accordingly requested the chairman +of the Civil Service Commission to make a thorough investigation for this +purpose. The result has been an elaborate and comprehensive report. + +The report sets forth the history of the partisan spoils system in Great +Britain, and of the rise and fall of the parliamentary patronage, and of +official interference with the freedom of elections. It shows that after +long trials of various kinds of examinations those which are competitive +and open on equal terms to all, and which are carried on under the +superintendence of a single commission, have, with great advantage, been +established as conditions of admission to almost every official place in +the subordinate administration of that country and of British India. The +completion of the report, owing to the extent of the labor involved in its +preparation and the omission of Congress to make any provision either for +the compensation or the expenses of the Commission, has been postponed +until the present time. It is herewith transmitted to Congress. + +While the reform measures of another government are of no authority for us, +they are entitled to influence to the extent to which their intrinsic +wisdom and their adaptation to our institutions and social life may commend +them to our consideration. The views I have heretofore expressed concerning +the defects and abuses in our civil administration remain unchanged, except +in so far as an enlarged experience has deepened my sense of the duty both +of officers and of the people themselves to cooperate for their removal. +The grave evils and perils of a partisan spoils system of appointment to +office and of office tenure are now generally recognized. In the +resolutions of the great parties, in the reports of Departments, in the +debates and proceedings of Congress, in the messages of Executives, the +gravity of these evils has been pointed out and the need of their reform +has been admitted. + +To command the necessary support, every measure of reform must be based on +common right and justice, and must be compatible with the healthy existence +of great parties, which are inevitable and essential in a free state. + +When the people have approved a policy at a national election, confidence +on the part of the officers they have selected and of the advisers who, in +accordance with our political institutions, should be consulted in the +policy which it is their duty to carry into effect is indispensable. It is +eminently proper that they should explain it before the people, as well as +illustrate its spirit in the performance of their official duties. + +Very different considerations apply to the greater number of those who fill +the subordinate places in the civil service. Their responsibility is to +their superiors in official position. It is their duty to obey the legal +instructions of those upon whom that authority is devolved, and their best +public service consists in the discharge of their functions irrespective of +partisan politics. Their duties are the same whatever party is in power and +whatever policy prevails. As a consequence it follows that their tenure of +office should not depend on the prevalence of any policy or the supremacy +of any party, but should be determined by their capacity to serve the +people most usefully quite irrespective of partisan interests. The same +considerations that should govern the tenure should also prevail in the +appointment, discipline, and removal of these subordinates. The authority +of appointment and removal is not a perquisite, which may be used to aid a +friend or reward a partisan, but is a trust, to be exercised in the public +interest under all the sanctions which attend the obligation to apply the +public funds only for public purposes. + +Every citizen has an equal right to the honor and profit of entering the +public service of his country. The only just ground of discrimination is +the measure of character and capacity he has to make that service most +useful to the people. Except in cases where, upon just and recognized +principles--as upon the theory of pensions--offices and promotions are +bestowed as rewards for past services, their bestowal upon any theory which +disregards personal merit is an act of injustice to the citizen, as well as +a breach of that trust subject to which the appointing power is held. + +In the light of these principles it becomes of great importance to provide +just and adequate means, especially for every Department and large +administrative office, where personal discrimination on the part of its +head is not practicable, for ascertaining those qualifications to which +appointments and removals should have reference. To fail to provide such +means is not only to deny the opportunity of ascertaining the facts upon +which the most righteous claim to office depends, but of necessity to +discourage all worthy aspirants by handing over appointments and removals +to mere influence and favoritism. If it is the right of the worthiest +claimant to gain the appointment and the interest of the people to bestow +it upon him, it would seem clear that a wise and just method of +ascertaining personal fitness for office must be an important and permanent +function of every just and wise government. It has long since become +impossible in the great offices for those having the duty of nomination and +appointment to personally examine into the individual qualifications of +more than a small proportion of those seeking office, and with the +enlargement of the civil service that proportion must continue to become +less. + +In the earlier years of the Government the subordinate offices were so few +in number that it was quite easy for those making appointments and +promotions to personally ascertain the merits of candidates. Party managers +and methods had not then become powerful agencies of coercion, hostile to +the free and just exercise of the appointing power. + +A large and responsible part of the duty of restoring the civil service to +the desired purity and efficiency rests upon the President, and it is my +purpose to do what is within my power to advance such prudent and gradual +measures of reform as will most surely and rapidly bring about that radical +change of system essential to make our administrative methods satisfactory +to a free and intelligent people. By a proper exercise of authority it is +in the power of the Executive to do much to promote such a reform. But it +can not be too clearly understood that nothing adequate can be accomplished +without cooperation on the part of Congress and considerate and intelligent +support among the people. Reforms which challenge the generally accepted +theories of parties and demand changes in the methods of Departments are +not the work of a day. Their permanent foundations must be laid in sound +principles and in an experience which demonstrates their wisdom and exposes +the errors of their adversaries. Every worthy officer desires to make his +official action a gain and an honor to his country; but the people +themselves, far more than their officers in public station, are interested +in a pure, economical, and vigorous administration. + +By laws enacted in 1853 and 1855, and now in substance incorporated in the +Revised Statutes, the practice of arbitrary appointments to the several +subordinate grades in the great Departments was condemned, and examinations +as to capacity, to be conducted by departmental boards of examiners, were +provided for and made conditions of admission to the public service. These +statutes are a decision by Congress that examinations of some sort as to +attainments and capacity are essential to the well-being of the public +service. The important questions since the enactment of these laws have +been as to the character of these examinations, and whether official favor +and partisan influence or common right and merit were to control the access +to the examinations. In practice these examinations have not always been +open to worthy persons generally who might wish to be examined. Official +favoritism and partisan influence, as a rule, appear to have designated +those who alone were permitted to go before the examining boards, +subjecting even the examiners to a pressure from the friends of the +candidates very difficult to resist. As a consequence the standard of +admission fell below that which the public interest demanded. It was also +almost inevitable that a system which provided for various separate boards +of examiners, with no common supervision or uniform method of procedure, +should result in confusion, inconsistency, and inadequate tests of +capacity, highly detrimental to the public interest. A further and more +radical change was obviously required. + +In the annual message of December, 1870, my predecessor declared that-- +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. Congress accordingly +passed the act approved March 3, 1871, "to regulate the civil service of +the United States and promote the efficiency thereof," giving the necessary +authority to the Executive to inaugurate a civil-service reform. + +Acting under this statute, which was interpreted as intended to secure a +system of just and effectual examinations under uniform supervision, a +number of eminently competent persons were selected for the purpose, who +entered with zeal upon the discharge of their duties, prepared with an +intelligent appreciation of the requirements of the service the regulations +contemplated, and took charge of the examinations, and who in their +capacity as a board have been known as the "Civil Service Commission." +Congress for two years appropriated the money needed for the compensation +and for the expense of carrying on the work of the Commission. + +It appears from the report of the Commission submitted to the President in +April, 1874, that examinations had been held in various sections of the +country, and that an appropriation of about $25,000 would be required to +meet the annual expenses, including salaries, involved in discharging the +duties of the Commission. The report was transmitted to Congress by special +message of April 18, 1874, with the following favorable comment upon the +labors of the Commission: If sustained by Congress, I have no doubt the +rules can, after the experience gained, be so improved and enforced as to +still more materially benefit the public service and relieve the Executive, +members of Congress, and the heads of Departments from influences +prejudicial to good administration. The rules, as they have hitherto been +enforced, have resulted beneficially, as is shown by the opinions of the +members of the Cabinet and their subordinates in the Departments, and in +that opinion I concur. And in the annual message of December of the same +year similar views are expressed and an appropriation for continuing the +work of the Commission again advised. + +The appropriation was not made, and as a consequence the active work of the +Commission was suspended, leaving the Commission itself still in existence. +Without the means, therefore, of causing qualifications to be tested in any +systematic manner or of securing for the public service the advantages of +competition upon any extensive plan, I recommended in my annual message of +December, 1877, the making of an appropriation for the resumption of the +work of the Commission. + +In the meantime, however, competitive examinations, under many +embarrassments, have been conducted within limited spheres in the Executive +Departments in Washington and in a number of the custom-houses and +post-offices of the principal cities of the country, with a view to further +test their effects, and in every instance they have been found to be as +salutary as they are stated to have been under the Administration of my +predecessor. I think the economy, purity, and efficiency of the public +service would be greatly promoted by their systematic introduction, +wherever practicable, throughout the entire civil service of the +Government, together with ample provision for their general supervision in +order to secure consistency and uniform justice. + +Reports from the Secretary of the Interior, from the Postmaster-General, +from the postmaster in the city of New York, where such examinations have +been some time on trial, and also from the collector of the port, the naval +officer, and the surveyor in that city, and from the postmasters and +collectors in several of the other large cities, show that the competitive +system, where applied, has in various ways contributed to improve the +public service. + +The reports show that the results have been salutary in a marked degree, +and that the general application of similar rules can not fail to be of +decided benefit to the service. + +The reports of the Government officers, in the city of New York especially, +bear decided testimony to the utility of open competitive examinations in +their respective offices, showing that--These examinations and the +excellent qualifications of those admitted to the service through them have +had a marked incidental effect upon the persons previously in the service, +and particularly upon those aspiring to promotion. There has been on the +part of these latter an increased interest in the work and a desire to +extend acquaintance with it beyond the particular desk occupied, and thus +the morale of the entire force has been raised. The examinations have been +attended by many citizens, who have had an opportunity to thoroughly +investigate the scope and character of the tests and the method of +determining the results, and those visitors have without exception approved +the methods employed, and several of them have publicly attested their +favorable opinion. Upon such considerations I deem it my duty to renew the +recommendation contained in my annual message of December, 1877, requesting +Congress to make the necessary appropriation for the resumption of the work +of the Civil Service Commission. Economy will be promoted by authorizing a +moderate compensation to persons in the public service who may perform +extra labor upon or under the Commission, as the Executive may direct. + +I am convinced that if a just and adequate test of merit is enforced for +admission to the public service and in making promotions such abuses as +removals without good cause and partisan and official interference with the +proper exercise of the appointing power will in large measure disappear. + +There are other administrative abuses to which the attention of Congress +should be asked in this connection. Mere partisan appointments and the +constant peril of removal without cause very naturally lead to an absorbing +and mischievous political activity on the part of those thus appointed, +which not only interferes with the due discharge of official duty, but is +incompatible with the freedom of elections. Not without warrant in the +views of several of my predecessors in the Presidential office, and +directly within the law of 1871, already cited, I endeavored, by regulation +made on the 22d day of June, 1877, to put some reasonable limits to such +abuses. It may not be easy, and it may never perhaps be necessary, to +define with precision the proper limit of political action on the part of +Federal officers. But while their right to hold and freely express their +opinions can not be questioned, it is very plain that they should neither +be allowed to devote to other subjects the time needed for the proper +discharge of their official duties nor to use the authority of their office +to enforce their own opinions or to coerce the political action of those +who hold different opinions. + +Reasons of justice and public policy quite analogous to those which forbid +the use of official power for the oppression of the private citizen impose +upon the Government the duty of protecting its officers and agents from +arbitrary exactions. In whatever aspect considered, the practice of making +levies for party purposes upon the salaries of officers is highly +demoralizing to the public service and discreditable to the country. Though +an officer should be as free as any other citizen to give his own money in +aid of his opinions or his party, he should also be as free as any other +citizen to refuse to make such gifts. If salaries are but a fair +compensation for the time and labor of the officer, it is gross injustice +to levy a tax upon them. If they are made excessive in order that they may +bear the tax, the excess is an indirect robbery of the public funds. + +I recommend, therefore, such a revision and extension of present statutes +as shall secure to those in every grade of official life or public +employment the protection with which a great and enlightened nation should +guard those who are faithful in its service. + +Our relations with foreign countries have continued peaceful. + +With Great Britain there are still unsettled questions, growing out of the +local laws of the maritime provinces and the action of provincial +authorities deemed to be in derogation of rights secured by treaty to +American fishermen. The United States minister in London has been +instructed to present a demand for $105,305.02 in view of the damages +received by American citizens at Fortune Bay on the 6th day of January, +1878. The subject has been taken into consideration by the British +Government, and an early reply is anticipated. + +Upon the completion of the necessary preliminary examinations the subject +of our participation in the provincial fisheries, as regulated by treaty, +will at once be brought to the attention of the British Government, with a +view to an early and permanent settlement of the whole question, which was +only temporarily adjusted by the treaty of Washington. + +Efforts have been made to obtain the removal of restrictions found +injurious to the exportation of cattle to the United Kingdom. + +Some correspondence has also occurred with regard to the rescue and saving +of life and property upon the Lakes, which has resulted in important +modifications of the previous regulations of the Dominion government on the +subject in the interest of humanity and commerce. + +In accordance with the joint resolution of the last session of Congress, +commissioners were appointed to represent the United States at the two +international exhibitions in Australia, one of which is now in progress at +Sydney, and the other to be held next year at Melbourne. A desire has been +expressed by our merchants and manufacturers interested in the important +and growing trade with Australia that an increased provision should be made +by Congress for the representation of our industries at the Melbourne +exhibition of next year, and the subject is respectfully submitted to your +favorable consideration. + +The assent of the Government has been given to the landing on the coast of +Massachusetts of a new and independent transatlantic cable between France, +by way of the French island of St. Pierre, and this country, subject to any +future legislation of Congress on the subject. The conditions imposed +before allowing this connection with our shores to be established are such +as to secure its competition with any existing or future lines of marine +cable and preclude amalgamation therewith, to provide for entire equality +of rights to our Government and people with those of France in the use of +the cable, and prevent any exclusive possession of the privilege as +accorded by France to the disadvantage of any future cable communication +between France and the United States which may be projected and +accomplished by our citizens. An important reduction of the present rates +of cable communication with Europe, felt to be too burdensome to the +interests of our commerce, must necessarily flow from the establishment of +this competing line. + +The attention of Congress was drawn to the propriety of some general +regulation by Congress of the whole subject of transmarine cables by my +predecessor in his message of December 7, 1875, and I respectfully submit +to your consideration the importance of Congressional action in the +matter. + +The questions of grave importance with Spain growing out of the incidents +of the Cuban insurrection have been for the most part happily and honorably +settled. It may reasonably be anticipated that the commission now sitting +in Washington for the decision of private cases in this connection will +soon be able to bring its labors to a conclusion. + +The long-standing question of East Florida claims has lately been renewed +as a subject of correspondence, and may possibly require Congressional +action for its final disposition. + +A treaty with the Netherlands with respect to consular rights and +privileges similar to those with other powers has been signed and ratified, +and the ratifications were exchanged on the 31st of July last. Negotiations +for extradition treaties with the Netherlands and with Denmark are now in +progress. + +Some questions with Switzerland in regard to pauper and convict emigrants +have arisen, but it is not doubted that they will be arranged upon a just +and satisfactory basis. A question has also occurred with respect to an +asserted claim by Swiss municipal authorities to exercise tutelage over +persons and property of Swiss citizens naturalized in this country. It is +possible this may require adjustment by treaty. + +With the German Empire frequent questions arise in connection with the +Subjects of naturalization and expatriation, but the Imperial Government +has constantly manifested a desire to strictly maintain and comply with all +treaty stipulations in regard to them. + +In consequence of the omission of Congress to provide for a diplomatic +representative at Athens, the legation to Greece has been withdrawn. There +is now no channel of diplomatic communication between the two countries, +and the expediency of providing for one in some form is submitted to +Congress. + +Relations with Austria, Russia, Italy, Portugal, Turkey, and Belgium +continue amicable, and marked by no incident of especial importance. + +A change of the personal head of the Government of Egypt has taken place. +No change, however, has occurred in the relations between Egypt and the +United States. The action of the Egyptian Government in presenting to the +city of New York one of the ancient obelisks, which possess such historic +interest, is highly appreciated as a generous mark of international regard. +If prosperity should attend the enterprise of its transportation across the +Atlantic, its erection in a conspicuous position in the chief commercial +city of the nation will soon be accomplished. + +The treaty recently made between Japan and the United States in regard to +the revision of former commercial treaties it is now believed will be +followed by similar action on the part of other treaty powers. The +attention of Congress is again invited to the subject of the indemnity +funds received some years since from Japan and China, which, with their +accumulated interest, now amount to considerable sums. If any part of these +funds is justly due to American citizens, they should receive it promptly; +and whatever may have been received by this Government in excess of +strictly just demands should in some form be returned to the nations to +whom it equitably belongs. + +The Government of China has signified its willingness to consider the +question of the emigration of its subjects to the United States with a +dispassionate fairness and to cooperate in such measures as may tend to +prevent injurious consequences to the United States. The negotiations are +still proceeding, and will be pressed with diligence. + +A question having arisen between China and Japan about the Lew Chew +Islands, the United States Government has taken measures to inform those +powers of its readiness to extend its good offices for the maintenance of +peace if they shall mutually deem it desirable and find it practicable to +avail themselves of the proffer. + +It is a gratification to be able to announce that, through the judicious +and energetic action of the military commanders of the two nations on each +side of the Rio Grande, under the instructions of their respective +Governments, raids and depredations have greatly decreased, and in the +localities where formerly most destructive have now almost wholly ceased. +In view of this result, I entertain a confident expectation that the +prevalence of quiet on the border will soon become so assured as to justify +a modification of the present orders to our military commanders as to +crossing the border, without encouraging such disturbances as would +endanger the peace of the two countries. + +The third installment of the award against Mexico under the claims +commission of July 4, 1868, was duly paid, and has been put in course of +distribution in pursuance of the act of Congress providing for the same. +This satisfactory situation between the two countries leads me to +anticipate an expansion of our trade with Mexico and an increased +contribution of capital and industry by our people to the development of +the great resources of that country. I earnestly commend to the wisdom of +Congress the provision of suitable legislation looking to this result. + +Diplomatic intercourse with Colombia is again fully restored by the arrival +of a minister from that country to the United States. This is especially +fortunate in view of the fact that the question of an inter-oceanic canal +has recently assumed a new and important aspect and is now under discussion +with the Central American countries through whose territory the canal, by +the Nicaragua route, would have to pass. It is trusted that enlightened +statesmanship on their part will see that the early prosecution of such a +work will largely inure to the benefit, not only of their own citizens and +those of the United States, but of the commerce of the civilized world. It +is not doubted that should the work be undertaken under the protective +auspices of the United States, and upon satisfactory concessions for the +right of way and its security by the Central American Governments, the +capital for its completion would be readily furnished from this country and +Europe, which might, failing such guaranties, prove inaccessible. + +Diplomatic relations with Chile have also been strengthened by the +reception of a minister from that country. + +The war between Peru, Bolivia, and Chile still continues. The United States +have not deemed it proper to interpose in the matter further than to convey +to all the Governments concerned the assurance that the friendly offices of +the Government of the United States for the restoration of peace upon an +honorable basis will be extended in case the belligerents shall exhibit a +readiness to accept them. + +Cordial relations continue with Brazil and the Argentine Republic, and +trade with those countries is improving. A provision for regular and more +frequent mail communication, in our own ships, between the ports of this +country and the nations of South America seems to me to deserve the +attention of Congress as an essential precursor of an enlargement of our +commerce with them and an extension of our carrying trade. + +A recent revolution in Venezuela has been followed by the establishment of +a provisional government. This government has not yet been formally +recognized, and it is deemed desirable to await the proposed action of the +people which is expected to give it the sanction of constitutional forms. + +A naval vessel has been sent to the Samoan Islands to make surveys and take +possession of the privileges ceded to the United States by Samoa in the +harbor of Pago-Pago. A coaling station is to be established there, which +will be convenient and useful to United States vessels. + +The subject of opening diplomatic relations with Roumania and Servia, now +become independent sovereignties, is at present under consideration, and is +the subject of diplomatic correspondence. + +There is a gratifying increase of trade with nearly all European and +American countries, and it is believed that with judicious action in regard +to its development it can and will be still more enhanced and that American +products and manufactures will find new and expanding markets. The reports +of diplomatic and consular officers upon this subject, under the system now +adopted, have resulted in obtaining much valuable information, which has +been and will continue to be laid before Congress and the public from time +to time. + +The third article of the treaty with Russia of March 30, 1867, by which +Alaska was ceded to the United States, provides that the inhabitants of the +ceded territory, with the exception of the uncivilized native tribes, shall +be admitted to the enjoyment of all the rights of citizens of the United +States and shall be maintained and protected in the free enjoyment of their +liberty, property, and religion. The uncivilized tribes are subject to such +laws and regulations as the United States may from time to time adopt in +regard to the aboriginal tribes of that country. + +Both the obligations of this treaty and the necessities of the people +require that some organized form of government over the Territory of Alaska +be adopted. + +There appears to be no law for the arrest of persons charged with +common-law offenses, such as assault, robbery, and murder, and no +magistrate authorized to issue or execute process in such cases. Serious +difficulties have already arisen from offenses of this character, not only +among the original inhabitants, but among citizens of the United States and +other countries who have engaged in mining, fishing, and other business +operations within the territory. A bill authorizing the appointment of +justices of the peace and constables and the arrest and detention of +persons charged with criminal offenses, and providing for an appeal to +United States courts for the district of Oregon in suitable cases, will at +a proper time be submitted to Congress. + +The attention of Congress is called to the annual report of the Secretary +of the Treasury on the condition of the public finances. + +The ordinary revenues from all sources for the fiscal year ended June 30, +1879, were $273,827,184.46; the ordinary expenditures for the same period +were $266,947,883.53, leaving a surplus revenue for the year of +$6,879,300.93. + +The receipts for the present fiscal year, ending June 30, 1880, actual and +estimated, are as follows: Actual receipts for the first quarter, +commencing July 1, 1879, $79,843,663.61; estimated receipts for the +remaining three quarters of the year, $208,156,336.39; total receipts for +the current fiscal year, actual and estimated, $288,000,000. + +The expenditures for the same period will be, actual and estimated, as +follows: For the quarter commencing July 1, 1879, actual expenditures, +$91,683,385.10; and for the remaining three quarters of the year the +expenditures are estimated at $172,316,614.90, making the total +expenditures $264,000,000, and leaving an estimated surplus revenue for the +year ending June 30, 1880, of $24,000,000. The total receipts during the +next fiscal year, ending June 30, 1881, estimated according to existing +laws, will be $288,000,000, and the estimated ordinary expenditures for the +same period will be $278,097,364.39, leaving a surplus of $9,902,635.61 for +that year. + +The large amount expended for arrears of pensions during the last and the +present fiscal year, amounting to $21,747,249.60, has prevented the +application of the full amount required by law to the sinking fund for the +current year; but these arrears having been substantially paid, it is +believed that the sinking fund can hereafter be maintained without any +change of existing law. + +The Secretary of War reports that the War Department estimates for the +fiscal year ending June 30, 1881, are $40,380,428.93, the same being for a +less sum of money than any annual estimate rendered to Congress from that +Department during a period of at least twelve years. + +He concurs with the General of the Army in recommending such legislation as +will authorize the enlistment of the full number of 25,000 men for the line +of the Army, exclusive of the 3,463 men required for detached duty, and +therefore not available for service in the field. + +He also recommends that Congress be asked to provide by law for the +disposition of a large number of abandoned military posts and reservations, +which, though very valuable in themselves, have been rendered useless for +military purposes by the advance of civilization and settlement. + +He unites with the Quartermaster-General in recommending that an +appropriation be made for the construction of a cheap and perfectly +fireproof building for the safe storage of a vast amount of money accounts, +vouchers, claims, and other valuable records now in the +Quartermaster-General's Office, and exposed to great risk of total +destruction by fire. + +He also recommends, in conformity with the views of the +Judge-Advocate-General, some declaratory legislation in reference to the +military statute of limitations as applied to the crime of desertion. In +these several recommendations I concur. + +The Secretary of War further reports that the work for the improvement of +the South Pass of the Mississippi River, under contract with Mr. James B. +Eads, made in pursuance of an act of Congress, has been prosecuted during +the past year with a greater measure of success in the attainment of +results than during any previous year. The channel through the South Pass, +which at the beginning of operations in June, 1875, had a depth of only 7 +1/2 feet of water, had on the 8th of July, 1879, a minimum depth of 26 +feet, having a width of not less than 200 feet and a central depth of 30 +feet. Payments have been made in accordance with the statute, as the work +progressed, amounting in the aggregate to $4,250,000; and further payments +will become due, as provided by the statute, in the event of success in +maintaining the channel now secured. + +The reports of the General of the Army and of his subordinates present a +full and detailed account of the military operations for the suppression of +hostilities among the Indians of the Ute and Apache tribes, and praise is +justly awarded to the officers and troops engaged for promptness, skill, +and courage displayed. + +The past year has been one of almost unbroken peace and quiet on the +Mexican frontier, and there is reason to believe that the efforts of this +Government and of Mexico to maintain order in that region will prove +permanently successful. + +This Department was enabled during the past year to find temporary, though +crowded, accommodations and a safe depository for a portion of its records +in the completed east wing of the building designed for the State, War, and +Navy Departments. The construction of the north wing of the building, a +part of the structure intended for the use of the War Department, is being +carried forward with all possible dispatch, and the work should receive +from Congress such liberal appropriations as will secure its speedy +completion. + +The report of the Secretary of the Navy shows continued improvement in that +branch of the service during the last fiscal year. Extensive repairs have +been made upon vessels, and two new ships have been completed and made +ready for sea. + +The total expenditures of the year ended June 30, 1879, including specific +appropriations not estimated for by the Department, were $13,555,710.09. +The expenses chargeable to the year, after deducting the amount of these +specific appropriations, were $13,343,317.79; but this is subject to a +reduction of $283,725.99, that amount having been drawn upon warrants, but +not paid out during the year. The amount of appropriations applicable to +the last fiscal year was $14,538,646.17. There was, therefore, a balance of +$1,479,054.37 remaining unexpended and to the credit of the Department on +June 30, 1879. The estimates for the fiscal year ending June 30, 1881, are +$14,864,147.95, which exceeds the appropriations for the present fiscal +year $361,897.28. The reason for this increase is explained in the +Secretary's report. The appropriations available for the present fiscal +year are $14,502,250.67, which will, in the opinion of the Secretary, +answer all the ordinary demands of the service. The amount drawn from the +Treasury from July 1 to November 1, 1879 was $5,770,404.12, of which +$1,095,440.33 has been refunded, leaving as the expenditure for that period +$4,674,963.79. If the expenditures of the remaining two-thirds of the year +do not exceed the proportion for these four months, there will remain +unexpended at the end of the year $477,359.30 of the current +appropriations. The report of the Secretary shows the gratifying fact that +among all the disbursing officers of the Pay Corps of the Navy there is not +one who is a defaulter to the extent of a single dollar. I unite with him +in recommending the removal of the observatory to a more healthful +location. That institution reflects credit upon the nation, and has +obtained the approbation of scientific men in all parts of the world. Its +removal from its present location would not only be conducive to the health +of its officers and professors, but would greatly increase its usefulness. + +The appropriation for judicial expenses, which has heretofore been made for +the Department of Justice in gross, was subdivided at the last session of +Congress, and no appropriation whatever was made for the payment of the +fees of marshals and their deputies, either in the service of process or +for the discharge of other duties; and since June 30 these officers have +continued the performance of their duties without compensation from the +Government, taking upon themselves the necessary incidental outlays, as +well as rendering their own services. In only a few unavoidable instances +has the proper execution of the process of the United States failed by +reason of the absence of the requisite appropriation. This course of +official conduct on the part of these officers, highly creditable to their +fidelity, was advised by the Attorney-General, who informed them, however, +that they would necessarily have to rely for their compensation upon the +prospect of future legislation by Congress. I therefore especially +recommend that immediate appropriation be made by Congress for this +purpose. + +The act making the principal appropriation for the Department of Justice at +previous sessions has uniformly contained the following clause: And for +defraying the expenses which my be incurred in the enforcement of the act +approved February 28, 1871, entitled "An act to amend an act approved May +31, 1870, entitled 'An act to enforce the rights of citizens of the United +States to vote in the several States of this Union, and for other +purposes,'" or any acts amendatory thereof or supplementary thereto. No +appropriation was made for this purpose for the current year. As no general +election for Members of Congress occurred, the omission was a matter of +little practical importance. Such election will, however, take place during +the ensuing year, and the appropriation made for the pay of marshals and +deputies should be sufficient to embrace compensation for the services they +may be required to perform at such elections. + +The business of the Supreme Court is at present largely in arrears. It can +not be expected that more causes can be decided than are now disposed of in +its annual session, or that by any assiduity the distinguished magistrates +who compose the court can accomplish more than is now done. In the courts +of many of the circuits also the business has increased to such an extent +that the delay of justice will call the attention of Congress to an +appropriate remedy. It is believed that all is done in each circuit which +can fairly be expected from its judicial force. The evils arising from +delay are less heavily felt by the United States than by private suitors, +as its causes are advanced by the courts when it is seen that they involve +the discussion of questions of a public character. + +The remedy suggested by the Attorney-General is the appointment of +additional circuit judges and the creation of an intermediate court of +errors and appeals, which shall relieve the Supreme Court of a part of its +jurisdiction, while a larger force is also obtained for the performance of +circuit duties. + +I commend this suggestion to the consideration of Congress. It would seem +to afford a complete remedy, and would involve, if ten additional circuit +judges are appointed, an expenditure, at the present rate of salaries, of +not more than $60,000 a year, which would certainly be small in comparison +with the objects to be attained. + +The report of the Postmaster-General bears testimony to the general revival +of business throughout the country. The receipts of the Post-Office +Department for the fiscal year ended June 30, 1879, were $30,041,982.86, +being $764,465.91 more than the revenues of the preceding year. The amount +realized from the sale of postage stamps, stamped envelopes, and postal +cards was $764,465.91 more than in the preceding year, and $2,387,559.23 +more than in 1877. The expenditures of the Department were $33,449,899.45, +of which the sum of $376,461.63 was paid on liabilities incurred in +preceding years. + +The expenditures during the year were $801,209.77 less than in the +preceding year. This reduction is to be attributed mainly to the operation +of the law passed June 17, 1878, changing the compensation of postmasters +from a commission on the value of stamps sold to a commission on stamps +canceled. + +The amount drawn from the Treasury on appropriations, in addition to the +revenues of the Department, was $3,031,454.96, being $2,276,197.86 less +than in the preceding year. + +The expenditures for the fiscal year ending June 30, 1881, are estimated at +$39,920,900 and the receipts from all sources at $32,210,000, leaving a +deficiency to be appropriated for out of the Treasury of $7,710,900. + +The relations of the Department with railroad companies have been +harmonized, notwithstanding the general reduction by Congress of their +compensation by the appropriation for special facilities, and the railway +post-office lines have been greatly extended, especially in the Southern +States. The interests of the Railway Mail Service and of the public would +be greatly promoted and the expenditures could be more readily controlled +by the classification of the employees of the Railway Mail Service as +recommended by the Postmaster-General, the appropriation for salaries, with +respect to which the maximum limit is already fixed by law, to be made in +gross. + +The Postmaster-General recommends an amendment of the law regulating the +increase of compensation for increased service and increased speed on star +routes, so as to enable him to advertise for proposals for such increased +service and speed. He also suggests the advantages to accrue to the +commerce of the country from the enactment of a general law authorizing +contracts with American-built steamers, carrying the American flag, for +transporting the mail between ports of the United States and ports of the +West Indies and South America, at a fixed maximum price per mile, the +amount to be expended being regulated by annual appropriations, in like +manner with the amount paid for the domestic star service. + +The arrangement made by the Postmaster-General and the Secretary of the +Treasury for the collection of duty upon books received in the mail from +foreign countries has proved so satisfactory in its practical operation +that the recommendation is now made that Congress shall extend the +provisions of the act of March 3, 1879, under which this arrangement was +made, so as to apply to all other dutiable articles received in the mails +from foreign countries. + +The reports of the Secretary of the Interior and of the Commissioner of +Indian Affairs, setting forth the present state of our relations with the +Indian tribes on our territory, the measures taken to advance their +civilization and prosperity, and the progress already achieved by them, +will be found of more than ordinary interest. The general conduct of our +Indian population has been so satisfactory that the occurrence of two +disturbances, which resulted in bloodshed and destruction of property, is +all the more to be lamented. + +The history of the outbreak on the White River Ute Reservation, in western +Colorado, has become so familiar by elaborate reports in the public press +that its remarkable incidents need not be stated here in detail. It is +expected that the settlement of this difficulty will lead to such +arrangements as will prevent further hostile contact between the Indians +and the border settlements in western Colorado. + +The other disturbance occurred at the Mescalero Agency, in New Mexico, +where Victoria, at the head of a small band of marauders, after committing +many atrocities, being vigorously chased by a military force, made his way +across the Mexican border and is now on foreign soil. + +While these occurrences, in which a comparatively small number of Indians +were engaged, are most deplorable, a vast majority of our Indian population +have fully justified the expectations of those who believe that by humane +and peaceful influences the Indian can be led to abandon the habits of +savage life and to develop a capacity for useful and civilized occupations. +What they have already accomplished in the pursuit of agricultural and +mechanical work, the remarkable success which has attended the experiment +of employing as freighters a class of Indians hitherto counted among the +wildest and most intractable, and the general and urgent desire expressed +by them for the education of their children may be taken as sufficient +proof that they will be found capable of accomplishing much more if they +continue to be wisely and fairly guided. The "Indian policy" sketched in +the report of the Secretary of the Interior, the object of which is to make +liberal provision for the education of Indian youth, to settle the Indians +upon farm lots in severalty, to give them title in fee to their farms, +inalienable for a certain number of years, and when their wants are thus +provided for to dispose by sale of the lands on their reservations not +occupied and used by them, a fund to be formed out of the proceeds for the +benefit of the Indians, which will gradually relieve the Government of the +expenses now provided for by annual appropriations, must commend itself as +just and beneficial to the Indians, and as also calculated to remove those +obstructions which the existence of large reservations presents to the +settlement and development of the country. I therefore earnestly recommend +the enactment of a law enabling the Government to give Indians a title in +fee, inalienable for twenty-five years, to the farm lands assigned to them +by allotment. I also repeat the recommendation made in my first annual +message, that a law be passed admitting Indians who can give satisfactory +proof of having by their own labor supported their families for a number of +years, and who are willing to detach themselves from their tribal +relations, to the benefit of the homestead act, and to grant them patents +containing the same provision of inalienability for a certain period. + +The experiment of sending a number of Indian children of both sexes to the +Hampton Normal and Agricultural Institute, in Virginia, to receive an +elementary English education and practical instruction in farming and other +useful industries, has led to results so promising that it was thought +expedient to turn over the cavalry barracks at Carlisle, in Pennsylvania, +to the Interior Department for the establishment of an Indian school on a +larger scale. This school has now 158 pupils, selected from various tribes, +and is in full operation. Arrangements are also made for the education of a +number of Indian boys and girls belonging to tribes on the Pacific Slope in +a similar manner, at Forest Grove, in Oregon. These institutions will +commend themselves to the liberality of Congress and to the philanthropic +munificence of the American people. + +Last spring information was received of the organization of an extensive +movement in the Western States, the object of which was the occupation by +unauthorized persons of certain lands in the Indian Territory ceded by the +Cherokees to the Government for the purpose of settlement by other Indian +tribes. + +On the 26th of April I issued a proclamation warning all persons against +participation in such an attempt, and by the cooperation of a military +force the invasion was promptly checked. It is my purpose to protect the +rights of the Indian inhabitants of that Territory to the full extent of +the executive power; but it would be unwise to ignore the fact that a +territory so large and so fertile, with a population so sparse and with so +great a wealth of unused resources, will be found more exposed to the +repetition of such attempts as happened this year when the surrounding +States are more densely settled and the westward movement of our population +looks still more eagerly for fresh lands to occupy. Under such +circumstances the difficulty of maintaining the Indian Territory in its +present state will greatly increase, and the Indian tribes inhabiting it +would do well to prepare for such a contingency. I therefore fully approve +of the advice given to them by the Secretary of the Interior on a recent +occasion, to divide among themselves in severalty as large a quantity of +their lands as they can cultivate; to acquire individual title in fee +instead of their present tribal ownership in common, and to consider in +what manner the balance of their lands may be disposed of by the Government +for their benefit. By adopting such a policy they would more certainly +secure for themselves the value of their possessions, and at the same time +promote their progress in civilization and prosperity, than by endeavoring +to perpetuate the present state of things in the Territory. + +The question whether a change in the control of the Indian service should +be made was in the Forty-fifth Congress referred to a joint committee of +both Houses for inquiry and report. In my last annual message I expressed +the hope that the decision of that question, then in prospect, would +"arrest further agitation of this subject, such agitation being apt to +produce a disturbing effect upon the service as well as on the Indians +themselves." Since then, the committee having reported, the question has +been decided in the negative by a vote in the House of Representatives. + +For the reasons here stated, and in view of the fact that further +uncertainty on this point will be calculated to obstruct other much-needed +legislation, to weaken the discipline of the service, and to unsettle +salutary measures now in progress for the government and improvement of the +Indians, I respectfully recommend that the decision arrived at by Congress +at its last session be permitted to stand. + +The efforts made by the Department of the Interior to arrest the +depredations on the timber lands of the United States have been continued, +and have met with considerable success. A large number of cases of trespass +have been prosecuted in the courts of the United States; others have been +settled, the trespassers offering to make payment to the Government for the +value of the timber taken by them. The proceeds of these prosecutions and +settlements turned into the Treasury far exceed in amount the sums +appropriated by Congress for this purpose. A more important result, +however, consists in the fact that the destruction of our public forests by +depredation, although such cases still occur, has been greatly reduced in +extent, and it is probable that if the present policy is vigorously pursued +and sufficient provision to that end is made by Congress such trespasses, +at least those on a large scale, can be entirely suppressed, except in the +Territories, where timber for the daily requirements of the population can +not, under the present state of the law, be otherwise obtained. I therefore +earnestly invite the attention of Congress to the recommendation made by +the Secretary of the Interior, that a law be enacted enabling the +Government to sell timber from the public lands without conveying the fee, +where such lands are principally valuable for the timber thereon, such +sales to be so regulated as to conform to domestic wants and business +requirements, while at the same time guarding against a sweeping +destruction of the forests. The enactment of such a law appears to become a +more pressing necessity every day. + +My recommendations in former messages are renewed in favor of enlarging the +facilities of the Department of Agriculture. Agriculture is the leading +interest and the permanent industry of our people. It is to the abundance +of agricultural production, as compared with our home consumption, and the +largely increased and highly profitable market abroad which we have enjoyed +in recent years, that we are mainly indebted for our present prosperity as +a people. We must look for its continued maintenance to the same +substantial resource. There is no branch of industry in which labor, +directed by scientific knowledge, yields such increased production in +comparison with unskilled labor, and no branch of the public service to +which the encouragement of liberal appropriations can be more appropriately +extended. The omission to render such aid is not a wise economy, but, on +the contrary, undoubtedly results in losses of immense sums annually that +might be saved through well-directed efforts by the Government to promote +this vital interest. + +The results already accomplished with the very limited means heretofore +placed at the command of the Department of Agriculture is an earnest of +what may be expected with increased appropriations for the several purposes +indicated in the report of the Commissioner, with a view to placing the +Department upon a footing which will enable it to prosecute more +effectively the objects for which it is established. + +Appropriations are needed for a more complete laboratory, for the +establishment of a veterinary division and a division of forestry, and for +an increase of force. + +The requirements for these and other purposes, indicated in the report of +the Commissioner under the head of the immediate necessities of the +Department, will not involve any expenditure of money that the country can +not with propriety now undertake in the interests of agriculture. + +It is gratifying to learn from the Bureau of Education the extent to which +educational privileges throughout the United States have been advanced +during the year. No more fundamental responsibility rests upon Congress +than that of devising appropriate measures of financial aid to education, +supplemental to local action in the States and Territories and in the +District of Columbia. The wise forethought of the founders of our +Government has not only furnished the basis for the support of the +common-school systems of the newer States, but laid the foundations for the +maintenance of their universities and colleges of agriculture and the +mechanic arts. Measures in accordance with this traditional policy, for the +further benefit of all these interests and the extension of the same +advantages to every portion of the country, it is hoped will receive your +favorable consideration. + +To preserve and perpetuate the national literature should be among the +foremost cares of the National Legislature. The library gathered at the +Capitol still remains unprovided with any suitable accommodations for its +rapidly increasing stores. The magnitude and importance of the collection, +increased as it is by the deposits made under the law of copyright, by +domestic and foreign exchanges, and by the scientific library of the +Smithsonian Institution, call for building accommodations which shall be at +once adequate and fireproof. The location of such a public building, which +should provide for the pressing necessities of the present and for the vast +increase of the nation's books in the future, is a matter which addresses +itself to the discretion of Congress. It is earnestly recommended as a +measure which should unite all suffrages and which should no longer be +delayed. + +The joint commission created by the act of Congress of August 2, 1876, for +the purpose of supervising and directing the completion of the Washington +National Monument, of which commission the President is a member, has given +careful attention to this subject, and already the strengthening of the +foundation has so far progressed as to insure the entire success of this +part of the work. A massive layer of masonry has been introduced below the +original foundation, widening the base, increasing the stability of the +structure, and rendering it possible to carry the shaft to completion. It +is earnestly recommended that such further appropriations be made for the +continued prosecution of the work as may be necessary for the completion of +this national monument at an early day. + +In former messages, impressed with the importance of the subject, I have +taken occasion to commend to Congress the adoption of a generous policy +toward the District of Columbia. The report of the Commissioners of the +District, herewith transmitted, contains suggestions and recommendations, +to all of which I earnestly invite your careful attention. I ask your early +and favorable consideration of the views which they express as to the +urgent need of legislation for the reclamation of the marshes of the +Potomac and its Eastern Branch within the limits of the city, and for the +repair of the streets of the capital, heretofore laid with wooden blocks +and now by decay rendered almost impassable and a source of imminent danger +to the health of its citizens. The means at the disposal of the +Commissioners are wholly inadequate for the accomplishment of these +important works, and should be supplemented by timely appropriations from +the Federal Treasury. + +The filling of the flats in front of the city will add to the adjacent +lands and parks now owned by the United States a large and valuable domain, +sufficient, it is thought, to reimburse its entire cost, and will also, as +an incidental result, secure the permanent improvement of the river for the +purposes of navigation. + +The Constitution having invested Congress with supreme and exclusive +jurisdiction over the District of Columbia, its citizens must of necessity +look to Congress alone for all needful legislation affecting their +interests; and as the territory of this District is the common property of +the people of the United States, who equally with its resident citizens are +interested in the prosperity of their capital, I can not doubt that you +will be amply sustained by the general voice of the country in any measures +you may adopt for this purpose. + +I also invite the favorable consideration of Congress to the wants of the +public schools of this District, as exhibited in the report of the +Commissioners. While the number of pupils is rapidly increasing, no +adequate provision exists for a corresponding increase of school +accommodation, and the Commissioners are without the means to meet this +urgent need. A number of the buildings now used for school purposes are +rented, and are in important particulars unsuited for the purpose. The +cause of popular education in the District of Columbia is surely entitled +to the same consideration at the hands of the National Government as in the +several States and Territories, to which munificent grants of the public +lands have been made for the endowment of schools and universities. + +*** + +State of the Union Address +Rutherford B. Hayes +December 6, 1880 + +Fellow-Citizens of the Senate and House of Representatives: + +I congratulate you on the continued and increasing prosperity of our +country. By the favor of Divine Providence we have been blessed during the +past year with health, with abundant harvests, with profitable employment +for all our people, and with contentment at home, and with peace and +friendship with other nations. The occurrence of the twenty-fourth election +of Chief Magistrate has afforded another opportunity to the people of the +United States to exhibit to the world a significant example of the peaceful +and safe transmission of the power and authority of government from the +public servants whose terms of office are about to expire to their newly +chosen successors. This example can not fail to impress profoundly +thoughtful people of other countries with the advantages which republican +institutions afford. The immediate, general, and cheerful acquiescence of +all good citizens in the result of the election gives gratifying assurance +to our country and to its friends throughout the world that a government +based on the free consent of an intelligent and patriotic people possesses +elements of strength, stability, and permanency not found in any other form +of government. + +Continued opposition to the full and free enjoyment of the rights of +citizenship conferred upon the colored people by the recent amendments to +the Constitution still prevails in several of the late slaveholding States. +It has, perhaps, not been manifested in the recent election to any large +extent in acts of violence or intimidation. It has, however, by fraudulent +practices in connection with the ballots, with the regulations as to the +places and manner of voting, and with counting, returning, and canvassing +the votes cast, been successful in defeating the exercise of the right +preservative of all rights--the right of suffrage--which the Constitution +expressly confers upon our enfranchised citizens. + +It is the desire of the good people of the whole country that sectionalism +as a factor in our politics should disappear. They prefer that no section +of the country should be united in solid opposition to any other section. +The disposition to refuse a prompt and hearty obedience to the equal-rights +amendments to the Constitution is all that now stands in the way of a +complete obliteration of sectional lines in our political contests. As long +as either of these amendments is flagrantly violated or disregarded, it is +safe to assume that the people who placed them in the Constitution, as +embodying the legitimate results of the war for the Union, and who believe +them to be wise and necessary, will continue to act together and to insist +that they shall be obeyed. The paramount question still is as to the +enjoyment of the fight by every American citizen who has the requisite +qualifications to freely cast his vote and to have it honestly counted. +With this question rightly settled, the country will be relieved of the +contentions of the past; bygones will indeed be bygones, and political and +party issues, with respect to economy and efficiency of administration, +internal improvements, the tariff, domestic taxation, education, finance, +and other important subjects, will then receive their full share of +attention; but resistance to and nullification of the results of the war +will unite together in resolute purpose for their support all who maintain +the authority of the Government and the perpetuity of the Union, and who +adequately appreciate the value of the victory achieved. This determination +proceeds from no hostile sentiment or feeling to any part of the people of +our country or to any of their interests. The inviolability of the +amendments rests upon the fundamental principle of our Government. They are +the solemn expression of the will of the people of the United States. + +The sentiment that the constitutional rights of all our citizens must be +maintained does not grow weaker. It will continue to control the Government +of the country. Happily, the history of the late election shows that in +many parts of the country where opposition to the fifteenth amendment has +heretofore prevailed it is diminishing, and is likely to cease altogether +if firm and well-considered action is taken by Congress. I trust the House +of Representatives and the Senate, which have the right to judge of the +elections, returns, and qualifications of their own members, will see to it +that every case of violation of the letter or spirit of the fifteenth +amendment is thoroughly investigated, and that no benefit from such +violation shall accrue to any person or party. It will be the duty of the +Executive, with sufficient appropriations for the purpose, to prosecute +unsparingly all who have been engaged in depriving citizens of the rights +guaranteed to them by the Constitution. + +It is not, however, to be forgotten that the best and surest guaranty of +the primary rights of citizenship is to be found in that capacity for +self-protection which can belong only to a people whose right to universal +suffrage is supported by universal education. The means at the command of +the local and State authorities are in many cases wholly inadequate to +furnish free instruction to all who need it. This is especially true where +before emancipation the education of the people was neglected or prevented, +in the interest of slavery. Firmly convinced that the subject of popular +education deserves the earnest attention of the people of the whole +country, with a view to wise and comprehensive action by the Government of +the United States, I respectfully recommend that Congress, by suitable +legislation and with proper safeguards, supplement the local educational +funds in the several States where the grave duties and responsibilities of +citizenship have been devolved on uneducated people by devoting to the +purpose grants of the public lands and, if necessary, by appropriations +from the Treasury of the United States. Whatever Government can fairly do +to promote free popular education ought to be done. Wherever general +education is found, peace, virtue, and social order prevail and civil and +religious liberty are secure. + +In my former annual messages I have asked the attention of Congress to the +urgent necessity of a reformation of the civil-service system of the +Government. My views concerning the dangers of patronage, or appointments +for personal or partisan considerations, have been strengthened by my +observation and experience in the Executive office, and I believe these +dangers threaten the stability of the Government. Abuses so serious in +their nature can not be permanently tolerated. They tend to become more +alarming with the enlargement of administrative service, as the growth of +the country in population increases the number of officers and placemen +employed. + +The reasons are imperative for the adoption of fixed rules for the +regulation of appointments, promotions, and removals, establishing a +uniform method having exclusively in view in every instance the attainment +of the best qualifications for the position in question. Such a method +alone is consistent with the equal rights of all citizens and the most +economical and efficient administration of the public business. + +Competitive examinations in aid of impartial appointments and promotions +have been conducted for some years past in several of the Executive +Departments, and by my direction this system has been adopted in the +custom-houses and post-offices of the larger cities of the country. In the +city of New York over 2,000 positions in the civil service have been +subject in their appointments and tenure of place to the operation of +published rules for this purpose during the past two years. The results of +these practical trials have been very satisfactory, and have confirmed my +opinion in favor of this system of selection. All are subjected to the same +tests, and the result is free from prejudice by personal favor or partisan +influence. It secures for the position applied for the best qualifications +attainable among the competing applicants. It is an effectual protection +from the pressure of importunity, which under any other course pursued +largely exacts the time and attention of appointing officers, to their +great detriment in the discharge of other official duties preventing the +abuse of the service for the mere furtherance of private or party purposes, +and leaving the employee of the Government, freed from the obligations +imposed by patronage, to depend solely upon merit for retention and +advancement, and with this constant incentive to exertion and improvement. + +These invaluable results have been attained in a high degree in the offices +where the rules for appointment by competitive examination have been +applied. + +A method which has so approved itself by experimental tests at points where +such tests may be fairly considered conclusive should be extended to all +subordinate positions under the Government. I believe that a strong and +growing public sentiment demands immediate measures for securing and +enforcing the highest possible efficiency in the civil service and its +protection from recognized abuses, and that the experience referred to has +demonstrated the feasibility of such measures. + +The examinations in the custom-houses and post-offices have been held under +many embarrassments and without provision for compensation for the extra +labor performed by the officers who have conducted them, and whose +commendable interest in the improvement of the public service has induced +this devotion of time and labor without pecuniary reward. A continuance of +these labors gratuitously ought not to be expected, and without an +appropriation by Congress for compensation it is not practicable to extend +the system of examinations generally throughout the civil service. It is +also highly important that all such examinations should be conducted upon a +uniform system and under general supervision. Section 1753 of the Revised +Statutes authorizes the President to prescribe the regulations for +admission to the civil service of the United States, and for this purpose +to employ suitable persons to conduct the requisite inquiries with +reference to "the fitness of each candidate, in respect to age, health, +character, knowledge, and ability for the branch of service into which he +seeks to enter;" but the law is practically inoperative for want of the +requisite appropriation. + +I therefore recommend an appropriation of $25,000 per annum to meet the +expenses of a commission, to be appointed by the President in accordance +with the terms of this section, whose duty it shall be to devise a just, +uniform, and efficient system of competitive examinations and to supervise +the application of the same throughout the entire civil service of the +Government. I am persuaded that the facilities which such a commission will +afford for testing the fitness of those who apply for office will not only +be as welcome a relief to members of Congress as it will be to the +President and heads of Departments, but that it will also greatly tend to +remove the causes of embarrassment which now inevitably and constantly +attend the conflicting claims of patronage between the legislative and +executive departments. The most effectual check upon the pernicious +competition of influence and official favoritism in the bestowal of office +will be the substitution of an open competition of merit between the +applicants, in which everyone can make his own record with the assurance +that his success will depend upon this alone. + +I also recommend such legislation as, while leaving every officer as free +as any other citizen to express his political opinions and to use his means +for their advancement, shall also enable him to feel as safe as any private +citizen in refusing all demands upon his salary for political purposes. A +law which should thus guarantee true liberty and justice to all who are +engaged in the public service, and likewise contain stringent provisions +against the use of official authority to coerce the political action of +private citizens or of official subordinates, is greatly to be desired. + +The most serious obstacle, however, to an improvement of the civil service, +and especially to a reform in the method of appointment and removal, has +been found to be the practice, under what is known as the spoils system, by +which the appointing power has been so largely encroached upon by members +of Congress. The first step in the reform of the civil service must be a +complete divorce between Congress and the Executive in the matter of +appointments. The corrupting doctrine that "to the victors belong the +spoils" is inseparable from Congressional patronage as the established rule +and practice of parties in power. It comes to be understood by applicants +for office and by the people generally that Representatives and Senators +are entitled to disburse the patronage of their respective districts and +States. It is not necessary to recite at length the evils resulting from +this invasion of the Executive functions. The true principles of Government +on the subject of appointments to office, as stated in the national +conventions of the leading parties of the country, have again and again +been approved by the American people, and have not been called in question +in any quarter. These authentic expressions of public opinion upon this +all-important subject are the statement of principles that belong to the +constitutional structure of the Government. Under the Constitution the +President and heads of Departments are to make nominations for office. The +Senate is to advise and consent to appointments, and the House of +Representatives is to accuse and prosecute faithless officers. The best +interest of the public service demands that these distinctions be +respected; that Senators and Representatives, who may be judges and +accusers, should not dictate appointments to office. To this end the +cooperation of the legislative department of the Government is required +alike by the necessities of the case and by public opinion. Members of +Congress will not be relieved from the demands made upon them with +reference to appointments to office until by legislative enactment the +pernicious practice is condemned and forbidden. + +It is therefore recommended that an act be passed defining the relations of +members of Congress with respect to appointment to office by the President; +and I also recommend that the provisions of section 1767 and of the +sections following of the Revised Statutes, comprising the tenure-of-office +act of March 2, 1867, be repealed. + +Believing that to reform the system and methods of the civil service in our +country is one of the highest and most imperative duties of statesmanship, +and that it can be permanently done only by the cooperation of the +legislative and executive departments of the Government, I again commend +the whole subject to your considerate attention. + +It is the recognized duty and purpose of the people of the United States to +suppress polygamy where it now exists in our Territories and to prevent its +extension. Faithful and zealous efforts have been made by the United States +authorities in Utah to enforce the laws against it. Experience has shown +that the legislation upon this subject, to be effective, requires extensive +modification and amendment. The longer action is delayed the more difficult +it will be to accomplish what is desired. Prompt and decided measures are +necessary. The Mormon sectarian organization which upholds polygamy has the +whole power of making and executing the local legislation of the Territory. +By its control of the grand and petit juries it possesses large influence +over the administration of justice. Exercising, as the heads of this sect +do, the local political power of the Territory, they are able to make +effective their hostility to the law of Congress on the subject of +polygamy, and, in fact, do prevent its enforcement. Polygamy will not be +abolished if the enforcement of the law depends on those who practice and +uphold the crime. It can only be suppressed by taking away the political +power of the sect which encourages and sustains it. + +The power of Congress to enact suitable laws to protect the Territories is +ample. It is not a case for halfway measures. The political power of the +Mormon sect is increasing. It controls now one of our wealthiest and most +populous Territories. It is extending steadily into other Territories. +Wherever it goes it establishes polygamy and sectarian political power. The +sanctity of marriage and the family relation are the corner stone of our +American society and civilization. Religious liberty and the separation of +church and state are among the elementary ideas of free institutions. To +reestablish the interests and principles which polygamy and Mormonism have +imperiled, and to fully reopen to intelligent and virtuous immigrants of +all creeds that part of our domain which has been in a great degree closed +to general immigration by intolerant and immoral institutions, it is +recommended that the government of the Territory of Utah be reorganized. + +I recommend that Congress provide for the government of Utah by a governor +and judges, or commissioners, appointed by the President and confirmed by +the Senate--a government analogous to the provisional government +established for the territory northwest of the Ohio by the ordinance of +1787. If, however, it is deemed best to continue the existing form of local +government, I recommend that the right to vote, hold office, and sit on +juries in the Territory of Utah be confined to those who neither practice +nor uphold polygamy. If thorough measures are adopted, it is believed that +within a few years the evils which now afflict Utah will be eradicated, and +that this Territory will in good time become one of the most prosperous and +attractive of the new States of the Union. + +Our relations with all foreign countries have been those of undisturbed +peace, and have presented no occasion for concern as to their continued +maintenance. + +My anticipation of an early reply from the British Government to the demand +of indemnity to our fishermen for the injuries suffered by that industry at +Fortune Bay in January, 1878, which I expressed in my last annual message, +was disappointed. This answer was received only in the latter part of April +in the present year, and when received exhibited a failure of accord +between the two Governments as to the measure of the inshore fishing +privilege secured to our fishermen by the treaty of Washington of so +serious a character that I made it the subject of a communication to +Congress, in which I recommended the adoption of the measures which seemed +to me proper to be taken by this Government in maintenance of the rights +accorded to our fishermen under the treaty and toward securing an indemnity +for the injury these interests had suffered. A bill to carry out these +recommendations was under consideration by the House of Representatives at +the time of the adjournment of Congress in June last. + +Within a few weeks I have received a communication from Her Majesty's +Government renewing the consideration of the subject, both of the indemnity +for the injuries at Fortune Bay and of the interpretation of the treaty in +which the previous correspondence had shown the two Governments to be at +variance. Upon both these topics the disposition toward a friendly +agreement is manifested by a recognition of our right to an indemnity for +the transaction at Fortune Bay, leaving the measure of such indemnity to +further conference, and by an assent to the view of this Government, +presented in the previous correspondence, that the regulation of +conflicting interests of the shore fishery of the provincial seacoasts and +the vessel fishery of our fishermen should be made the subject of +conference and concurrent arrangement between the two Governments. + +I sincerely hope that the basis may be found for a speedy adjustment of the +very serious divergence of views in the interpretation of the fishery +clauses of the treaty of Washington, which, as the correspondence between +the two Governments stood at the close of the last session of Congress, +seemed to be irreconcilable. + +In the important exhibition of arts and industries which was held last year +at Sydney, New South Wales, as well as in that now in progress at +Melbourne, the United States have been efficiently and honorably +represented. The exhibitors from this country at the former place received +a large number of awards in some of the most considerable departments, and +the participation of the United States was recognized by a special mark of +distinction. In the exhibition at Melbourne the share taken by our country +is no less notable, and an equal degree of success is confidently +expected. + +The state of peace and tranquillity now enjoyed by all the nations of the +continent of Europe has its favorable influence upon our diplomatic and +commercial relations with them. We have concluded and ratified a convention +with the French Republic for the settlement of claims of the citizens of +either country against the other. Under this convention a commission, +presided over by a distinguished publicist, appointed in pursuance of the +request of both nations by His Majesty the Emperor of Brazil, has been +organized and has begun its sessions in this city. A congress to consider +means for the protection of industrial property has recently been in +session in Paris, to which I have appointed the ministers of the United +States in France and in Belgium as delegates. The International Commission +upon Weights and Measures also continues its work in Paris. I invite your +attention to the necessity of an appropriation to be made in time to enable +this Government to comply with its obligations under the metrical +convention. + +Our friendly relations with the German Empire continue without +interruption. At the recent International Exhibition of Fish and Fisheries +at Berlin the participation of the United States, notwithstanding the haste +with which the commission was forced to make its preparations, was +extremely successful and meritorious, winning for private exhibitors +numerous awards of a high class and for the country at large the principal +prize of honor offered by His Majesty the Emperor. The results of this +great success can not but be advantageous to this important and growing +industry. There have been some questions raised between the two Governments +as to the proper effect and interpretation of our treaties of +naturalization, but recent dispatches from our minister at Berlin show that +favorable progress is making toward an understanding in accordance with the +views of this Government, which makes and admits no distinction whatever +between the rights of a native and a naturalized citizen of the United +States. In practice the complaints of molestation suffered by naturalized +citizens abroad have never been fewer than at present. + +There is nothing of importance to note in our unbroken friendly relations +with the Governments of Austria-Hungary, Russia, Portugal, Sweden and +Norway, Switzerland, Turkey, and Greece. + +During the last summer several vessels belonging to the merchant marine of +this country, sailing in neutral waters of the West Indies, were fired at, +boarded, and searched by an armed cruiser of the Spanish Government. The +circumstances as reported involve not only a private injury to the persons +concerned, but also seemed too little observant of the friendly relations +existing for a century between this country and Spain. The wrong was +brought to the attention of the Spanish Government in a serious protest and +remonstrance, and the matter is undergoing investigation by the royal +authorities with a view to such explanation or reparation as may be called +for by the facts. + +The commission sitting in this city for the adjudication of claims of our +citizens against the Government of Spain is, I hope, approaching the +termination of its labors. + +The claims against the United States under the Florida treaty with Spain +were submitted to Congress for its action at the late session, and I again +invite your attention to this long-standing question, with a view to a +final disposition of the matter. + +At the invitation of the Spanish Government, a conference has recently been +held at the city of Madrid to consider the subject of protection by foreign +powers of native Moors in the Empire of Morocco. The minister of the United +States in Spain was directed to take part in the deliberations of this +conference, the result of which is a convention signed on behalf of all the +powers represented. The instrument will be laid before the Senate for its +consideration. The Government of the United States has also lost no +opportunity to urge upon that of the Emperor of Morocco the necessity, in +accordance with the humane and enlightened spirit of the age, of putting an +end to the persecutions, which have been so prevalent in that country, of +persons of a faith other than the Moslem, and especially of the Hebrew +residents of Morocco. + +The consular treaty concluded with Belgium has not yet been officially +promulgated, owing to the alteration of a word in the text by the Senate of +the United States, which occasioned a delay, during which the time allowed +for ratification expired. The Senate will be asked to extend the period for +ratification. + +The attempt to negotiate a treaty of extradition with Denmark failed on +account of the objection of the Danish Government to the usual clause +providing that each nation should pay the expense of the arrest of the +persons whose extradition it asks. + +The provision made by Congress at its last session for the expense of the +commission which had been appointed to enter upon negotiations with the +Imperial Government of China on subjects of great interest to the relations +of the two countries enabled the commissioners to proceed at once upon +their mission. The Imperial Government was prepared to give prompt and +respectful attention to the matters brought under negotiation, and the +conferences proceeded with such rapidity and success that on the 17th of +November last two treaties were signed at Peking, one relating to the +introduction of Chinese into this country and one relating to commerce. Mr. +Trescot, one of the commissioners, is now on his way home bringing the +treaties, and it is expected that they will be received in season to be +laid before the Senate early in January. + +Our minister in Japan has negotiated a convention for the reciprocal relief +of shipwrecked seamen. I take occasion to urge once more upon Congress the +propriety of making provision for the erection of suitable fireproof +buildings at the Japanese capital for the use of the American legation and +the court-house and jail connected with it. The Japanese Government, with +great generosity and courtesy, has offered for this purpose an eligible +piece of land. + +In my last annual message I invited the attention of Congress to the +subject of the indemnity funds received some years ago from China and +Japan. I renew the recommendation then made that whatever portions of these +funds are due to American citizens should be promptly paid and the residue +returned to the nations, respectively, to which they justly and equitably +belong. + +The extradition treaty with the Kingdom of the Netherlands, Which has been +for some time in course of negotiation, has during the past year been +concluded and duly ratified. + +Relations of friendship and amity have been established between the +Government of the United States and that of Roumania. We have sent a +diplomatic representative to Bucharest, and have received at this capital +the special envoy who has been charged by His Royal Highness Prince Charles +to announce the independent sovereignty of Roumania. We hope for a speedy +development of commercial relations between the two countries. + +In my last annual message I expressed the hope that the prevalence of quiet +on the border between this country and Mexico would soon become so assured +as to justify the modification of the orders then in force to our military +commanders in regard to crossing the frontier, without encouraging such +disturbances as would endanger the peace of the two countries. Events moved +in accordance with these expectations, and the orders were accordingly +withdrawn, to the entire satisfaction of our own citizens and the Mexican +Government. Subsequently the peace of the border was again disturbed by a +savage foray under the command of the Chief Victoria, but by the combined +and harmonious action of the military forces of both countries his band has +been broken up and substantially destroyed. + +There is reason to believe that the obstacles which have so long prevented +rapid and convenient communication between the United States and Mexico by +railways are on the point of disappearing, and that several important +enterprises of this character will soon be set on foot, which can not fail +to contribute largely to the prosperity of both countries. + +New envoys from Guatemala, Colombia, Bolivia, Venezuela, and Nicaragua have +recently arrived at this capital, whose distinction and enlightenment +afford the best guaranty of the continuance of friendly relations between +ourselves and these sister Republics. + +The relations between this Government and that of the United States of +Colombia have engaged public attention during the past year, mainly by +reason of the project of an interoceanic canal across the Isthmus of +Panama, to be built by private capital under a concession from the +Colombian Government for that purpose. The treaty obligations subsisting +between the United States and Colombia, by which we guarantee the +neutrality of the transit and the sovereignty and property of Colombia in +the Isthmus, make it necessary that the conditions under which so +stupendous a change in the region embraced in this guaranty should be +effected--transforming, as it would, this Isthmus from a barrier between +the Atlantic and Pacific oceans into a gateway and thoroughfare between +them for the navies and the merchant ships of the world--should receive the +approval of this Government, as being compatible with the discharge of +these obligations on our part and consistent with our interests as the +principal commercial power of the Western Hemisphere. The views which I +expressed in a special message to Congress in March last in relation to +this project I deem it my duty again to press upon your attention. +Subsequent consideration has but confirmed the opinion "that it is the +right and duty of the United States to assert and maintain such supervision +and authority over any interoceanic canal across the isthmus that connects +North and South America as will protect our national interest." + +The war between the Republic of Chile on the one hand and the allied +Republics of Peru and Bolivia on the other still continues. This Government +has not felt called upon to interfere in a contest that is within the +belligerent rights of the parties as independent states. We have, however, +always held ourselves in readiness to aid in accommodating their +difference, and have at different times reminded both belligerents of our +willingness to render such service. + +Our good offices in this direction were recently accepted by all the +belligerents, and it was hoped they would prove efficacious; but I regret +to announce that the measures which the ministers of the United States at +Santiago and Lima were authorized to take with the view to bring about a +peace were not successful. In the course of the war some questions have +arisen affecting neutral rights. In all of these the ministers of the +United States have, under their instructions, acted with promptness and +energy in protection of American interests. + +The relations of the United States with the Empire of Brazil continue to be +most cordial, and their commercial intercourse steadily increases, to their +mutual advantage. + +The internal disorders with which the Argentine Republic has for some time +past been afflicted, and which have more or less influenced its external +trade, are understood to have been brought to a close. This happy result +may be expected to redound to the benefit of the foreign commerce of that +Republic, as well as to the development of its vast interior resources. + +In Samoa the Government of King Malietoa, under the support and recognition +of the consular representatives of the United States, Great Britain, and +Germany, seems to have given peace and tranquillity to the islands. While +it does not appear desirable to adopt as a whole the scheme of tripartite +local government which has been proposed, the common interests of the three +great treaty powers require harmony in their relations to the native frame +of government, and this may be best secured by a simple diplomatic +agreement between them. It would be well if the consular jurisdiction of +our representative at Apia were increased in extent and importance so as to +guard American interests in the surrounding and outlying islands of +Oceanica. + +The obelisk generously presented by the Khedive of Egypt to the city of New +York has safely arrived in this country, and will soon be erected in that +metropolis. A commission for the liquidation of the Egyptian debt has +lately concluded its work, and this Government, at the earnest solicitation +of the Khedive, has acceded to the provisions adopted by it, which will be +laid before Congress for its information. A commission for the revision of +the judicial code of the reform tribunal of Egypt is now in session in +Cairo. Mr. Farman, consul-general, and J. M. Batchelder, esq., have been +appointed as commissioners to participate in this work. The organization of +the reform tribunals will probably be continued for another period of five +years. + +In pursuance of the act passed at the last session of Congress, invitations +have been extended to foreign maritime states to join in a sanitary +conference in Washington, beginning the 1st of January. The acceptance of +this invitation by many prominent powers gives promise of success in this +important measure, designed to establish a system of international +notification by which the spread of infectious or epidemic diseases may be +more effectively checked or prevented. The attention of Congress is invited +to the necessary appropriations for carrying into effect the provisions of +the act referred to. + +The efforts of the Department of State to enlarge the trade and commerce of +the United States, through the active agency of consular officers and +through the dissemination of information obtained from them, have been +unrelaxed. The interest in these efforts, as developed in our commercial +communities, and the value of the information secured by this means to the +trade and manufactures of the country were recognized by Congress at its +last session, and provision was made for the more frequent publication of +consular and other reports by the Department of State. The first issue of +this publication has now been prepared, and subsequent issues may regularly +be expected. The importance and interest attached to the reports of +consular officers are witnessed by the general demand for them by all +classes of merchants and manufacturers engaged in our foreign trade. It is +believed that the system of such publications is deserving of the approval +of Congress, and that the necessary appropriations for its continuance and +enlargement will commend itself to your consideration. + +The prosperous energies of our domestic industries and their immense +production of the subjects of foreign commerce invite, and even require, an +active development of the wishes and interests of our people in that +direction. Especially important is it that our commercial relations with +the Atlantic and Pacific coasts of South America, with the West Indies and +the Gulf of Mexico, should be direct, and not through the circuit of +European systems, and should be carried on in our own bottoms. The full +appreciation of the opportunities which our front on the Pacific Ocean +gives to commerce with Japan, China, and the East Indies, with Australia +and the island groups which lie along these routes of navigation, should +inspire equal efforts to appropriate to our own shipping and to administer +by our own capital a due proportion of this trade. Whatever modifications +of our regulations of trade and navigation may be necessary or useful to +meet and direct these impulses to the enlargement of our exchanges and of +our carrying trade I am sure the wisdom of Congress will be ready to +supply. One initial measure, however, seems to me so dearly useful and +efficient that I venture to press it upon your earnest attention. It seems +to be very evident that the provision of regular steam postal communication +by aid from government has been the forerunner of the commercial +predominance of Great Britain on all these coasts and seas, a greater share +in whose trade is now the desire and the intent of our people. It is also +manifest that the efforts of other European nations to contend with Great +Britain for a share of this commerce have been successful in proportion +with their adoption of regular steam postal communication with the markets +whose trade they sought. Mexico and the States of South America are anxious +to receive such postal communication with this country and to aid in their +development. Similar cooperation may be looked for in due time from the +Eastern nations and from Australia. It is difficult to see how the lead in +this movement can be expected from private interests. In respect of foreign +commerce quite as much as in internal trade postal communication seems +necessarily a matter of common and public administration, and thus +pertaining to Government. I respectfully recommend to your prompt attention +such just and efficient measures as may conduce to the development of our +foreign commercial exchanges and the building up of our carrying trade. + +In this connection I desire also to suggest the very great service which +might be expected in enlarging and facilitating our commerce on the Pacific +Ocean were a transmarine cable laid from San Francisco to the Sandwich +Islands, and thence to Japan at the north and Australia at the south. The +great influence of such means of communication on these routes of +navigation in developing and securing the due share of our Pacific Coast in +the commerce of the world needs no illustration or enforcement. It may be +that such an enterprise, useful, and in the end profitable, as it would +prove to private investment, may need to be accelerated by prudent +legislation by Congress in its aid, and I submit the matter to your careful +consideration. + +An additional and not unimportant, although secondary, reason for fostering +and enlarging the Navy may be found in the unquestionable service to the +expansion of our commerce which would be rendered by the frequent +circulation of naval ships in the seas and ports of all quarters of the +globe. Ships of the proper construction and equipment to be of the greatest +efficiency in case of maritime war might be made constant and active agents +in time of peace in the advancement and protection of our foreign trade and +in the nurture and discipline of young seamen, who would naturally in some +numbers mix with and improve the crews of our merchant ships. Our merchants +at home and abroad recognize the value to foreign commerce of an active +movement of our naval vessels, and the intelligence and patriotic zeal of +our naval officers in promoting every interest of their countrymen is a +just subject of national pride. + +The condition of the financial affairs of the Government, as shown by the +report of the Secretary of the Treasury, is very satisfactory. It is +believed that the present financial situation of the United States, whether +considered with respect to trade, currency, credit, growing wealth, or the +extent and variety of our resources, is more favorable than that of any +other country of our time, and has never been surpassed by that of any +country at any period of its history. All our industries are thriving; the +rate of interest is low; new railroads are being constructed; a vast +immigration is increasing our population, capital, and labor; new +enterprises in great number are in progress, and our commercial relations +with other countries are improving. + +The ordinary revenues from all sources for the fiscal year ended June 30, +1880, were-- + +From customs - $186,522,064.60 + +From internal revenue - 124,009,373.92 + +From sales of public lands - 1,016,506.60 + +From tax on circulation and deposits of national banks - 7,014,971.44 + +From repayment of interest by Pacific Railway companies - 1,707,367.18 + +From sinking fund for Pacific Railway companies - 786,621.22 + +From customs fees, fines, penalties, etc - 1,148,800.16 + +From fees-consular, letters patent, and lands - 2,337,029.00 + +From proceeds of sales of Government property - 282,616.50 + +From profits on coinage, etc - 2,792,186.78 + +From revenues of the District of Columbia - 1,809,469.70 + +From miscellaneous sources - 4,099,603.88 - + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY RUTHERFORD B. HAYES *** + +This file should be named suhay11.txt or suhay11.zip +Corrected EDITIONS of our eBooks get a new NUMBER, suhay12.txt +VERSIONS based on separate sources get new LETTER, suhay10a.txt + +Project Gutenberg eBooks are often created from several printed +editions, all of which are confirmed as Public Domain in the US +unless a copyright notice is included. Thus, we usually do not +keep eBooks in compliance with any particular paper edition. + +We are now trying to release all our eBooks one year in advance +of the official release dates, leaving time for better editing. +Please be encouraged to tell us about any error or corrections, +even years after the official publication date. + +Please note neither this listing nor its contents are final til +midnight of the last day of the month of any such announcement. +The official release date of all Project Gutenberg eBooks is at +Midnight, Central Time, of the last day of the stated month. 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