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diff --git a/old/sucle10.txt b/old/sucle10.txt new file mode 100644 index 0000000..24c6e1d --- /dev/null +++ b/old/sucle10.txt @@ -0,0 +1,5513 @@ +The Project Gutenberg EBook of State of the Union Addresses +by Grover Cleveland +(#20 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 Grover Cleveland + +Author: Grover Cleveland + +Release Date: February, 2004 [EBook #5029] +[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 GROVER CLEVELAND *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Grover Cleveland in this eBook: + December 8, 1885 + December 6, 1886 + December 6, 1887 + December 3, 1888 + + + +*** + +State of the Union Address +Grover Cleveland +December 8, 1885 + +To the Congress of the United States: + +Your assembling is clouded by a sense of public bereavement, caused by the +recent and sudden death of Thomas A. Hendricks, Vice-President of the +United States. His distinguished public services, his complete integrity +and devotion to every duty, and his personal virtues will find honorable +record in his country's history. + +Ample and repeated proofs of the esteem and confidence in which he was held +by his fellow-countrymen were manifested by his election to offices of the +most important trust and highest dignity; and at length, full of years and +honors, he has been laid at rest amid universal sorrow and benediction. + +The Constitution, which requires those chosen to legislate for the people +to annually meet in the discharge of their solemn trust, also requires the +President to give to Congress information of the state of the Union and +recommend to their consideration such measures as he shall deem necessary +and expedient. At the threshold of a compliance with these constitutional +directions it is well for us to bear in mind that our usefulness to the +people's interests will be promoted by a constant appreciation of the scope +and character of our respective duties as they relate to Federal +legislation. While the Executive may recommend such measures as he shall +deem expedient, the responsibility for legislative action must and should +rest upon those selected by the people to make their laws. + +Contemplation of the grave and responsible functions assigned to the +respective branches of the Government under the Constitution will disclose +the partitions of power between our respective departments and their +necessary independence, and also the need for the exercise of all the power +intrusted to each in that spirit of comity and cooperation which is +essential to the proper fulfillment of the patriotic obligations which rest +upon us as faithful servants of the people. + +The jealous watchfulness of our constituencies, great and small, +supplements their suffrages, and before the tribunal they establish every +public servant should be judged. + +It is gratifying to announce that the relations of the United States with +all foreign powers continue to be friendly. Our position after nearly a +century of successful constitutional government, maintenance of good faith +in all our engagements, the avoidance of complications with other nations, +and our consistent and amicable attitude toward the strong and weak alike +furnish proof of a political disposition which renders professions of good +will unnecessary. There are no questions of difficulty pending with any +foreign government. + +The Argentine Government has revived the long dormant question of the +Falkland Islands by claiming from the United States indemnity for their +loss, attributed to the action of the commander of the sloop of war +Lexington in breaking up a piratical colony on those islands in 1831, and +their subsequent occupation by Great Britain. In view of the ample +justification for the act of the Lexington and the derelict condition of +the islands before and after their alleged occupation by Argentine +colonists, this Government considers the claim as wholly groundless. + +Question has arisen with the Government of Austria-Hungary touching the +representation of the United States at Vienna. Having under my +constitutional prerogative appointed an estimable citizen of unimpeached +probity and competence as minister at that court, the Government of +Austria-Hungary invited this Government to take cognizance of certain +exceptions, based upon allegations against the personal acceptability of +Mr. Keiley, the appointed envoy, asking that in view thereof the +appointment should be withdrawn. The reasons advanced were such as could +not be acquiesced in without violation of my oath of office and the +precepts of the Constitution, since they necessarily involved a limitation +in favor of a foreign government upon the right of selection by the +Executive and required such an application of a religious test as a +qualification for office under the United States as would have resulted in +the practical disfranchisement of a large class of our citizens and the +abandonment of a vital principle in our Government. The Austro-Hungarian +Government finally decided not to receive Mr. Keiley as the envoy of the +United States, and that gentleman has since resigned his commission, +leaving the post vacant. I have made no new nomination, and the interests +of this Government at Vienna are now in the care of the secretary of +legation, acting as charge' d'affaires ad interim. + +Early in March last war broke out in Central America, caused by the attempt +of Guatemala to consolidate the several States into a single government. In +these contests between our neighboring States the United States forebore to +interfere actively, but lent the aid of their friendly offices in +deprecation of war and to promote peace and concord among the belligerents, +and by such counsel contributed importantly to the restoration of +tranquillity in that locality. + +Emergencies growing out of civil war in the United States of Colombia +demanded of the Government at the beginning of this Administration the +employment of armed forces to fulfill its guaranties under the thirty-fifth +article of the treaty of 1846, in order to keep the transit open across the +Isthmus of Panama. Desirous of exercising only the powers expressly +reserved to us by the treaty, and mindful of the rights of Colombia, the +forces sent to the Isthmus were instructed to confine their action to +"positively and efficaciously" preventing the transit and its accessories +from being "interrupted or embarrassed." + +The execution of this delicate and responsible task necessarily involved +police control where the local authority was temporarily powerless, but +always in aid of the sovereignty of Colombia. + +The prompt and successful fulfillment of its duty by this Government was +highly appreciated by the Government of Colombia, and has been followed by +expressions of its satisfaction. + +High praise is due to the officers and men engaged in this service. The +restoration of peace on the Isthmus by the reestablishment of the +constituted Government there being thus accomplished, the forces of the +United States were withdrawn. + +Pending these occurrences a question of much importance was presented by +decrees of the Colombian Government proclaiming the closure of certain +ports then in the hands of insurgents and declaring vessels held by the +revolutionists to be piratical and liable to capture by any power. To +neither of these propositions could the United States assent. An effective +closure of ports not in the possession of the Government, but held by +hostile partisans, could not be recognized; neither could the vessels of +insurgents against the legitimate sovereignty be deemed hostes humani +generis within the precepts of international law, whatever might be the +definition and penalty of their acts under the municipal law of the State +against whose authority they were in revolt. The denial by this Government +of the Colombian propositions did not, however, imply the admission of a +belligerent status on the part of the insurgents. + +The Colombian Government has expressed its willingness to negotiate +conventions for the adjustment by arbitration of claims by foreign citizens +arising out of the destruction of the city of Aspinwall by the +insurrectionary forces. + +The interest of the United States in a practicable transit for ships across +the strip of land separating the Atlantic from the Pacific has been +repeatedly manifested during the last half century. + +My immediate predecessor caused to be negotiated with Nicaragua a treaty +for the construction, by and at the sole cost of the United States, of a +canal through Nicaraguan territory, and laid it before the Senate. Pending +the action of that body thereon, I withdrew the treaty for reexamination. +Attentive consideration of its provisions leads me to withhold it from +resubmission to the Senate. + +Maintaining, as I do, the tenets of a line of precedents from Washington's +day, which proscribe entangling alliances with foreign states, I do not +favor a policy of acquisition of new and distant territory or the +incorporation of remote interests with our own. + +The laws of progress are vital and organic, and we must be conscious of +that irresistible tide of commercial expansion which, as the concomitant of +our active civilization, day by day is being urged onward by those +increasing facilities of production, transportation, and communication to +which steam and electricity have given birth; but our duty in the present +instructs us to address ourselves mainly to the development of the vast +resources of the great area committed to our charge and to the cultivation +of the arts of peace within our own borders, though jealously alert in +preventing the American hemisphere from being involved in the political +problems and complications of distant governments. Therefore I am unable to +recommend propositions involving. paramount privileges of ownership or +right outside of our own territory, when coupled with absolute and +unlimited engagements to defend the territorial integrity of the state +where such interests lie. While the general project of connecting the two +oceans by means of a canal is to be encouraged, I am of opinion that any +scheme to that end to be considered with favor should be free from the +features alluded to. + +The Tehuantepec route is declared by engineers of the highest repute and by +competent scientists to afford an entirely practicable transit for vessels +and cargoes, by means of a ship railway, from the Atlantic to the Pacific. +The obvious advantages of such a route, if feasible, over others more +remote from the axial lines of traffic between Europe and the pacific, and +particularly between the Valley of the Mississippi and the western coast of +North and South America, are deserving of consideration. + +Whatever highway may be constructed across the barrier dividing the two +greatest maritime areas of the world must be for the world's benefit--a +trust for mankind, to be removed from the chance of domination by any +single power, nor become a point of invitation for hostilities or a prize +for warlike ambition. An engagement combining the construction, ownership, +and operation of such a work by this Government, with an offensive and +defensive alliance for its protection, with the foreign state whose +responsibilities and rights we would share is, in my judgment, inconsistent +with such dedication to universal and neutral use, and would, moreover, +entail measures for its realization beyond the scope of our national polity +or present means. + +The lapse of years has abundantly confirmed the wisdom and foresight of +those earlier Administrations which, long before the conditions of maritime +intercourse were changed and enlarged by the progress of the age, +proclaimed the vital need of interoceanic transit across the American +Isthmus and consecrated it in advance to the common use of mankind by their +positive declarations and through the formal obligation of treaties. Toward +such realization the efforts of my Administration will be applied, ever +bearing in mind the principles on which it must rest, and which were +declared in no uncertain tones by Mr. Cass, who, while Secretary of State, +in 1858, announced that "what the United States want in Central America, +next to the happiness of its people, is the security and neutrality of the +interoceanic routes which lead through it." + +The construction of three transcontinental lines of railway, all in +successful operation, wholly within our territory, and uniting the Atlantic +and the Pacific oceans, has been accompanied by results of a most +interesting and impressive nature, and has created new conditions, not in +the routes of commerce only, but in political geography, which powerfully +affect our relations toward and necessarily increase our interests in any +transisthmian route which may be opened and employed for the ends of peace +and traffic, or, in other contingencies, for uses inimical to both. + +Transportation is a factor in the cost of commodities scarcely second to +that of their production, and weighs as heavily upon the consumer. + +Our experience already has proven the great importance of having the +competition between land carriage and water carriage fully developed, each +acting as a protection to the public against the tendencies to monopoly +which are inherent in the consolidation of wealth and power in the hands of +vast corporations. + +These suggestions may serve to emphasize what I have already said on the +score of the necessity of a neutralization of any interoceanic transit; and +this can only be accomplished by making the uses of the route open to all +nations and subject to the ambitions and warlike necessities of none. + +The drawings and report of a recent survey of the Nicaragua Canal route, +made by Chief Engineer Menocal, will be communicated for your information. + +The claims of citizens of the United States for losses by reason of the +late military operations of Chile in Peru and Bolivia are the subject of +negotiation for a claims convention with Chile, providing for their +submission to arbitration. + +The harmony of our relations with China is fully sustained. + +In the application of the acts lately passed to execute the treaty of 1880, +restrictive of the immigration of Chinese laborers into the United States, +individual cases of hardship have occurred beyond the power of the +Executive to remedy, and calling for judicial determination. + +The condition of the Chinese question in the Western States and Territories +is, despite this restrictive legislation, far from being satisfactory. The +recent outbreak in Wyoming Territory, where numbers of unoffending +Chinamen, indisputably within the protection of the treaties and the law, +were murdered by a mob, and the still more recent threatened outbreak of +the same character in Washington Territory, are fresh in the minds of all, +and there is apprehension lest the bitterness of feeling against the +Mongolian race on the Pacific Slope may find vent in similar lawless +demonstrations. All the power of this Government should be exerted to +maintain the amplest good faith toward China in the treatment of these men, +and the inflexible sternness of the law in bringing the wrongdoers to +justice should be insisted upon. + +Every effort has been made by this Government to prevent these violent +outbreaks and to aid the representatives of China in their investigation of +these outrages; and it is but just to say that they are traceable to the +lawlessness of men not citizens of the United States engaged in competition +with Chinese laborers. + +Race prejudice is the chief factor in originating these disturbances, and +it exists in a large part of our domain, jeopardizing our domestic peace +and the good relationship we strive to maintain with China. + +The admitted right of a government to prevent the influx of elements +hostile to its internal peace and security may not be questioned, even +where there is no treaty stipulation on the subject. That the exclusion of +Chinese labor is demanded in other countries where like conditions prevail +is strongly evidenced in the Dominion of Canada, where Chinese immigration +is now regulated by laws more exclusive than our own. If existing laws are +inadequate to compass the end in view, I shall be prepared to give earnest +consideration to any further remedial measures, within the treaty limits, +which the wisdom of Congress may devise. + +The independent State of the Kongo has been organized as a government under +the sovereignty of His Majesty the King of the Belgians, who assumes its +chief magistracy in his personal character only, without making the new +State a dependency of Belgium. It is fortunate that a benighted region, +owing all it has of quickening civilization to the beneficence and +philanthropic spirit of this monarch, should have the advantage and +security of his benevolent supervision. + +The action taken by this Government last year in being the first to +recognize the flag of the International Association of the Kongo has been +followed by formal recognition of the new nationality which succeeds to its +sovereign powers. + +A conference of delegates of the principal commercial nations was held at +Berlin last winter to discuss methods whereby the Kongo basin might be kept +open to the world's trade. Delegates attended on behalf of the United +States on the understanding that their part should be merely deliberative, +without imparting to the results any binding character so far as the United +States were concerned. This reserve was due to the indisposition of this +Government to share in any disposal by an international congress of +jurisdictional questions in remote foreign territories. The results of the +conference were embodied in a formal act of the nature of an international +convention, which laid down certain obligations purporting to be binding on +the signatories, subject to ratification within one year. Notwithstanding +the reservation under which the delegates of the United States attended, +their signatures were attached to the general act in the same manner as +those of the plenipotentiaries of other governments, thus making the United +States appear, without reserve or qualification, as signatories to a joint +international engagement imposing on the signers the conservation of the +territorial integrity of distant regions where we have no established +interests or control. + +This Government does not, however, regard its reservation of liberty of +action in the premises as at all impaired; and holding that an engagement +to share in the obligation of enforcing neutrality in the remote valley of +the Kongo would be an alliance whose responsibilities we are not in a +position to assume, I abstain from asking the sanction of the Senate to +that general act. + +The correspondence will be laid before you, and the instructive and +interesting report of the agent sent by this Government to the Kongo +country and his recommendations for the establishment of commercial +agencies on the African coast are also submitted for your consideration. + +The commission appointed by my predecessor last winter to visit the Central +and South American countries and report on the methods of enlarging the +commercial relations of the United States therewith has submitted reports, +which will be laid before you. + +No opportunity has been omitted to testify the friendliness of this +Government toward Korea, whose entrance into the family of treaty powers +the United States were the first to recognize. I regard with favor the +application made by the Korean Government to be allowed to employ American +officers as military instructors, to which the assent of Congress becomes +necessary, and I am happy to say this request has the concurrent sanction +of China and Japan. + +The arrest and imprisonment of Julio R. Santos, a citizen of the United +States, by the authorities of Ecuador gave rise to a contention with that +Government, in which his right to be released or to have a speedy and +impartial trial on announced charges and with all guaranties of defense +stipulated by treaty was insisted upon by us. After an elaborate +correspondence and repeated and earnest representations on our part Mr. +Santos was, after an alleged trial and conviction, eventually included in a +general decree of amnesty and pardoned by the Ecuadorian Executive and +released, leaving the question of his American citizenship denied by the +Ecuadorian Government, but insisted upon by our own. + +The amount adjudged by the late French and American Claims Commission to be +due from the United States to French claimants on account of injuries +suffered by them during the War of Secession, having been appropriated by +the last Congress, has been duly paid to the French Government. + +The act of February 25, 1885, provided for a preliminary search of the +records of French prize courts for evidence bearing on the claims of +American citizens against France for spoliations committed prior to 1801. +The duty has been performed, and the report of the agent will be laid +before you. + +I regret to say that the restrictions upon the importation of our pork into +France continue, notwithstanding the abundant demonstration of the absence +of sanitary danger in its use; but I entertain strong hopes that with a +better understanding of the matter this vexatious prohibition will be +removed. It would be pleasing to be able to say as much with respect to +Germany, Austria, and other countries, where such food products are +absolutely excluded, without present prospect of reasonable change. + +The interpretation of our existing treaties of naturalization by Germany +during the past year has attracted attention by reason of an apparent +tendency on the part of the Imperial Government to extend the scope of the +residential restrictions to which returning naturalized citizens of German +origin are asserted to be liable under the laws of the Empire. The +temperate and just attitude taken by this Government with regard to this +class of questions will doubtless lead to a satisfactory understanding. + +The dispute of Germany and Spain relative to the domination of the Caroline +Islands has attracted the attention of this Government by reason of +extensive interests of American citizens having grown up in those parts +during the past thirty years, and because the question of ownership +involves jurisdiction of matters affecting the status of our citizens under +civil and criminal law. While standing wholly aloof from the proprietary +issues raised between powers to both of which the United States are +friendly, this Government expects that nothing in the present contention +shall unfavorably affect our citizens carrying on a peaceful commerce or +there domiciled, and has so informed the Governments of Spain and Germany. + +The marked good will between the United States and Great Britain has been +maintained during the past year. + +The termination of the fishing clauses of the treaty of Washington, in +pursuance of the joint resolution of March 3, 1883, must have resulted in +the abrupt cessation on the 1st of July of this year, in the midst of their +ventures, of the operations of citizens of the United States engaged in +fishing in British American waters but for a diplomatic understanding +reached with Her Majesty's Government in June last, whereby assurance was +obtained that no interruption of those operations should take place during +the current fishing season. + +In the interest of good neighborhood and of the commercial intercourse of +adjacent communities, the question of the North American fisheries is one +of much importance. Following out the intimation given by me when the +extensory arrangement above described was negotiated, I recommend that the +Congress provide for the appointment of a commission in which the +Governments of the United States and Great Britain shall be respectively +represented, charged with the consideration and settlement, upon a just, +equitable, and honorable basis, of the entire question of the fishing +rights of the two Governments and their respective citizens on the coasts +of the United States and British North America. The fishing interests being +intimately related to other general questions dependent upon contiguity and +intercourse, consideration thereof in all their equities might also +properly come within the purview of such a commission, and the fullest +latitude of expression on both sides should be permitted. + +The correspondence in relation to the fishing rights will be submitted. The +arctic exploring steamer Alert, which was generously given by Her Majesty's +Government to aid in the relief of the Greely expedition, was, after the +successful attainment of that humane purpose, returned to Great Britain, in +pursuance of the authority conferred by the act of March 3, 1885. + +The inadequacy of the existing engagements for extradition between the +United States and Great Britain has been long apparent. The tenth article +of the treaty of 1842, one of the earliest compacts in this regard entered +into by us, stipulated for surrender in respect of a limited number of +offenses. Other crimes no less inimical to the social welfare should be +embraced and the procedure of extradition brought in harmony with present +international practice. Negotiations with Her Majesty's Government for an +enlarged treaty of extradition have been pending since 1870, and I +entertain strong hopes that a satisfactory result may be soon attained. + +The frontier line between Alaska and British Columbia, as defined by the +treaty of cession with Russia, follows the demarcation assigned in a prior +treaty between Great Britain and Russia. Modern exploration discloses that +this ancient boundary is impracticable as a geographical fact. In the +unsettled condition of that region the question has lacked importance, but +the discovery of mineral wealth in the territory the line is supposed to +traverse admonishes that the time has come when an accurate knowledge of +the boundary is needful to avert jurisdictional complications. I recommend, +therefore, that provision be made for a preliminary reconnoissance by +officers of the United States, to the end of acquiring more precise +information on the subject. I have invited Her Majesty's Government to +consider with us the adoption of a more convenient line, to be established +by meridian observations or by known geographical features without the +necessity of an expensive survey of the whole. + +The late insurrectionary movements in Hayti having been quelled, the +Government of that Republic has made prompt provision for adjudicating the +losses suffered by foreigners because of hostilities there, and the claims +of certain citizens of the United States will be in this manner +determined. + +The long-pending claims of two citizens of the United States, Pelletier and +Lazare, have been disposed of by arbitration, and an award in favor of each +claimant has been made, which by the terms of the engagement is final. It +remains for Congress to provide for the payment of the stipulated moiety of +the expenses. + +A question arose with Hayti during the past year by reason of the +exceptional treatment of an American citizen, Mr. Van Bokkelen, a resident +of Port-au-Prince, who, on suit by creditors residing in the United States, +was sentenced to imprisonment, and, under the operation of a Haytian +statute, was denied relief secured to a native Haytian. This Government +asserted his treaty right to equal treatment with natives of Hayti in all +suits at law. Our contention was denied by the Haytian Government, which, +however, while still professing to maintain the ground taken against Mr. +Van Bokkelen's right, terminated the controversy by setting him at liberty +without explanation. + +An international conference to consider the means of arresting the spread +of cholera and other epidemic diseases was held at Rome in May last, and +adjourned to meet again on further notice. An expert delegate on behalf of +the United States has attended its sessions and will submit a report. + +Our relations with Mexico continue to be most cordial, as befits those of +neighbors between whom the strongest ties of friendship and commercial +intimacy exist, as the natural and growing consequence of our similarity of +institutions and geographical propinquity. + +The relocation of the boundary line between the United States and Mexico +westward of the Rio Grande, under the convention of July 29, 1882, has been +unavoidably delayed, but I apprehend no difficulty in securing a +prolongation of the period for its accomplishment. + +The lately concluded commercial treaty with Mexico still awaits the +stipulated legislation to carry its provisions into effect, for which one +year's additional time has been secured by a supplementary article signed +in February last and since ratified on both sides. + +As this convention, so important to the commercial welfare of the two +adjoining countries, has been constitutionally confirmed by the treaty- +making branch, I express the hope that legislation needed to make it +effective may not be long delayed. + +The large influx of capital and enterprise to Mexico from the United States +continues to aid in the development of the resources and in augmenting the +material well-being of our sister Republic. Lines of railway, penetrating +to the heart and capital of the country, bring the two peoples into +mutually beneficial intercourse, and enlarged facilities of transit add to +profitable commerce, create new markets, and furnish avenues to otherwise +isolated communities. + +I have already adverted to the suggested construction of a ship railway +across the narrow formation of the territory of Mexico at Tehuantepec. + +With the gradual recovery of Peru from the effects of her late disastrous +conflict with Chile, and with the restoration of civil authority in that +distracted country, it is hoped that pending war claims of our citizens +will be adjusted. + +In conformity with notification given by the Government of Peru, the +existing treaties of commerce and extradition between the United States and +that country will terminate March 31, 1886. + +Our good relationship with Russia continues. + +An officer of the Navy, detailed for the purpose, is now on his way to +Siberia bearing the testimonials voted by Congress to those who generously +succored the survivors of the unfortunate Jeannette expedition. + +It is gratifying to advert to the cordiality of our intercourse with +Spain. + +The long-pending claim of the owners of the ship Masonic for loss suffered +through the admitted dereliction of the Spanish authorities in the +Philippine Islands has been adjusted by arbitration and an indemnity +awarded. The principle of arbitration in such cases, to which the United +States have long and consistently adhered, thus receives a fresh and +gratifying confirmation. + +Other questions with Spain have been disposed of or are under diplomatic +consideration with a view to just and honorable settlement. + +The operation of the commercial agreement with Spain of January 2--February +13, 1884, has been found inadequate to the commercial needs of the United +States and the Spanish Antilies, and the terms of the agreement are +subjected to conflicting interpretations in those islands. + +Negotiations have been instituted at Madrid for a full treaty not open to +these objections and in the line of the general policy touching the +neighborly intercourse of proximate communities, to which I elsewhere +advert, and aiming, moreover, at the removal of existing burdens and +annoying restrictions; and although a satisfactory termination is promised, +I am compelled to delay its announcement. + +An international copyright conference was held at Berne in September, on +the invitation of the Swiss Government. The envoy of the United States +attended as a delegate, but refrained from committing this Government to +the results, even by signing the recommendatory protocol adopted. The +interesting and important subject of international copyright has been +before you for several years. Action is certainly desirable to effect the +object in view; and while there may be question as to the relative +advantage of treating it by legislation or by specific treaty, the matured +views of the Berne conference can not fail to aid your consideration of the +subject. + +The termination of the commercial treaty of 1862 between the United States +and Turkey has been sought by that Government. While there is question as +to the sufficiency of the notice of termination given, yet as the +commercial rights of our citizens in Turkey come under the favored-nation +guaranties of the prior treaty of 1830, and as equal treatment is admitted +by the Porte, no inconvenience can result from the assent of this +Government to the revision of the Ottoman tariffs, in which the treaty +powers have been invited to join. + +Questions concerning our citizens in Turkey may be affected by the Porte's +nonacquiescence in the right of expatriation and by the imposition of +religious tests as a condition of residence, in which this Government can +not concur. The United States must hold in their intercourse with every +power that the status of their citizens is to be respected and equal civil +privileges accorded to them without regard to creed, and affected by no +considerations save those growing out of domiciliary return to the land of +original allegiance or of unfulfilled personal obligations which may +survive, under municipal laws, after such voluntary return. + +The negotiation with Venezuela relative to the rehearing of the awards of +the mixed commission constituted under the treaty of 1866 was resumed in +view of the recent acquiescence of the Venezuelan envoy in the principal +point advanced by this Government, that the effects of the old treaty could +only be set aside by the operation of a new convention. A result in +substantial accord with the advisory suggestions contained in the joint +resolution of March 3, 1883, has been agreed upon and will shortly be +submitted to the Senate for ratification. + +Under section 3659 of the Revised Statutes all funds held in trust by the +United States and the annual interest accruing thereon, when not otherwise +required by treaty, are to be invested in stocks of the United States +bearing a rate of interest not less than 5 per cent per annum. There being +now no procurable stocks paying so high a rate of interest, the letter of +the statute is at present inapplicable, but its spirit is subserved by +continuing to make investments of this nature in current stocks bearing the +highest interest now paid. The statute, however, makes no provision for the +disposal of such accretions. It being contrary to the general rule of this +Government to allow interest on claims, I recommend the repeal of the +provision in question and the disposition, under a uniform rule, of the +present accumulations from investment of trust funds. + +The inadequacy of existing legislation touching citizenship and +naturalization demands your consideration. + +While recognizing the right of expatriation, no statutory provision exists +providing means for renouncing citizenship by an American citizen, native +born or naturalized, nor for terminating and vacating an improper +acquisition of citizenship. Even a fraudulent decree of naturalization can +not now be canceled. The privilege and franchise of American citizenship +should be granted with care, and extended to those only who intend in good +faith to assume its duties and responsibilities when attaining its +privileges and benefits. It should be withheld from those who merely go +through the forms of naturalization with the intent of escaping the duties +of their original allegiance without taking upon themselves those of their +new status, or who may acquire the rights of American citizenship for no +other than a hostile purpose toward their original governments. These evils +have had many flagrant illustrations. + +I regard with favor the suggestion put forth by one of my predecessors that +provision be made for a central bureau of record of the decrees of +naturalization granted by the various courts throughout the United States +now invested with that power. + +The rights which spring from domicile in the United States, especially when +coupled with a declaration of intention to become a citizen, are worthy of +definition by statute. The stranger coming hither with intent to remain, +establishing his residence in our midst, contributing to the general +welfare, and by his voluntary act declaring his purpose to assume the +responsibilities of citizenship, thereby gains an inchoate status which +legislation may properly define. The laws of certain States and Territories +admit a domiciled alien to the local franchise, conferring on him the +rights of citizenship to a degree which places him in the anomalous +position of being a citizen of a State and yet not of the United States +within the purview of Federal and international law. + +It is important within the scope of national legislation to define this +right of alien domicile as distinguished from Federal naturalization. + +The commercial relations of the United States with their immediate +neighbors and with important areas of traffic near our shores suggest +especially liberal intercourse between them and us. + +Following the treaty of 1883 with Mexico, which rested on the basis of a +reciprocal exemption from customs duties, other similar treaties were +initiated by my predecessor. + +Recognizing the need of less obstructed traffic with Cuba and Puerto Rico, +and met by the desire of Spain to succor languishing interests in the +Antilles, steps were taken to attain those ends by a treaty of commerce. A +similar treaty was afterwards signed by the Dominican Republic. +Subsequently overtures were made by Her Britannic Majesty's Government for +a like mutual extension of commercial intercourse with the British West +Indian and South American dependencies, but without result. + +On taking office I withdrew for reexamination the treaties signed with +Spain and Santo Domingo, then pending before the Senate. The result has +been to satisfy me of the inexpediency of entering into engagements of this +character not covering the entire traffic. + +These treaties contemplated the surrender by the United States of large +revenues for inadequate considerations. Upon sugar alone duties were +surrendered to an amount far exceeding all the advantages offered in +exchange. Even were it intended to relieve our consumers, it was evident +that so long as the exemption but partially covered our importation such +relief would be illusory. To relinquish a revenue so essential seemed +highly improvident at a time when new and large drains upon the Treasury +were contemplated. Moreover, embarrassing questions would have arisen under +the favored-nation clauses of treaties with other nations. + +As a further objection, it is evident that tariff regulation by treaty +diminishes that independent control over its own revenues which is +essential for the safety and welfare of any government. Emergency calling +for an increase of taxation may at any time arise, and no engagement with a +foreign power should exist to hamper the action of the Government. + +By the fourteenth section of the shipping act approved June 26, 1884, +certain reductions and contingent exemptions from tonnage dues were made as +to vessels entering ports of the United States from any foreign port in +North and Central America, the West India Islands, the Bahamas and +Bermudas, Mexico, and the Isthmus as far as Aspinwall and Panama. The +Governments of Belgium, Denmark, Germany, Portugal, and Sweden and Norway +have asserted, under the favored-nation clause in their treaties with the +United States, a claim to like treatment in respect of vessels coming to +the United States from their home ports. This Government, however, holds +that the privileges granted by the act are purely geographical, inuring to +any vessel of any foreign power that may choose to engage in traffic +between this country and any port within the defined zone, and no warrant +exists under the most-favored-nation clause for the extension of the +privileges in question to vessels sailing to this country from ports +outside the limitation of the act. + +Undoubtedly the relations of commerce with our near neighbors, whose +territories form so long a frontier line difficult to be guarded, and who +find in our country, and equally offer to us, natural markets, demand +special and considerate treatment. It rests with Congress to consider what +legislative action may increase facilities of intercourse which contiguity +makes natural and desirable. + +I earnestly urge that Congress recast the appropriations for the +maintenance of the diplomatic and consular service on a footing +commensurate with the importance of our national interests. At every post +where a representative is necessary the salary should be so graded as to +permit him to live with comfort. With the assignment of adequate salaries +the so-called notarial extra official fees, which our officers abroad are +now permitted to treat as personal perquisites, should be done away with. +Every act requiring the certification and seal of the officer should be +taxable at schedule rates and the fee therefor returned to the Treasury. By +restoring these revenues to the public use the consular service would be +self-supporting, even with a liberal increase of the present low salaries. + +In further prevention of abuses a system of consular inspection should be +instituted. + +The appointment of a limited number of secretaries of legation at large, to +be assigned to duty wherever necessary, and in particular for temporary +service at missions which for any cause may be without a head, should also +be authorized. + +I favor also authorization for the detail of officers of the regular +service as military or naval attaches at legations. + +Some foreign governments do not recognize the union of consular with +diplomatic functions. Italy and Venezuela will only receive the appointee +in one of his two capacities, but this does not prevent the requirement of +a bond and submission to the responsibilities of an office whose duties he +can not discharge. The superadded title of consul-general should be +abandoned at all missions. + +I deem it expedient that a well-devised measure for the reorganization of +the extraterritorial courts in Oriental countries should replace the +present system, which labors under the disadvantage of combining judicial +and executive functions in the same office. + +In several Oriental countries generous offers have been made of premises +for housing the legations of the United States. A grant of land for that +purpose was made some years since by Japan, and has been referred to in the +annual messages of my predecessor. The Siamese Government has made a gift +to the United States of commodious quarters in Bangkok. In Korea the late +minister was permitted to purchase a building from the Government for +legation use. In China the premises rented for the legation are favored as +to local charges. At Tangier the house occupied by our representative has +been for many years the property; this Government, having been given for +that purpose in 1822 by the Sultan of Morocco. I approve the suggestion +heretofore made, that, view of the conditions of life and administration in +the Eastern countries, the legation buildings in China, Japan, Korea, Siam, +and perhaps Persia, should be owned and furnished by the Government with a +view to permanency and security. To this end I recommend that authority be +given to accept the gifts adverted to in Japan and Siam, and to purchase in +the other countries named, with provision for furniture and repairs. A +considerable saving in rentals would result. + +The World's Industrial Exposition, held at New Orleans last winter, with +the assistance of the Federal Government, attracted a large number of +foreign exhibits, and proved of great value in spreading among the +concourse of visitors from Mexico and Central and South America a wider +knowledge of the varied manufactures and productions of this country and +their availability in exchange for the productions of those regions. + +Past Congresses have had under consideration the advisability of abolishing +the discrimination made by the tariff laws in favor of the works of +American artists. The odium of the policy which subjects to a high rate of +duty the paintings of foreign artists and exempts the productions of +American artists residing abroad, and who receive gratuitously advantages +and instruction, is visited upon our citizens engaged in art culture in +Europe, and has caused them with practical unanimity to favor the abolition +of such an ungracious distinction; and in their interest, and for other +obvious reasons, I strongly recommend it. + +The report of the Secretary of the Treasury fully exhibits the condition of +the public finances and of the several branches of the Government connected +with his Department. The suggestions of the Secretary relating to the +practical operations of this important Department, and his recommendations +in the direction of simplification and economy, particularly in the work of +collecting customs duties, are especially urged upon the attention of +Congress. + +The ordinary receipts from all sources for the fiscal year ended June 30, +1885, were $322,690,706.38. Of this sum $181,471,939.34 was received from +customs and $112,498,725.54 from internal revenue. The total receipts, as +given above, were $24,829,163.54 less than those for the year ended June +30, 1884. This diminution embraces a falling off of $13,595,550.42 in the +receipts from customs and $9,687,346.97 in the receipts from internal +revenue. + +The total ordinary expenditures of the Government for the fiscal year were +$260,226,935.50, leaving a surplus in the Treasury at the close of the year +of $63,463,771.27. This is $40,929,854.32 less than the surplus reported at +the close of the previous year. + +The expenditures are classified as follows: + +The amount paid on the public debt during the fiscal year ended June 30, +1885, was $45,993,235.43, and there has been paid since that date and up to +November 1, 1885, the sum of $369,828, leaving the amount of the debt at +the last-named date $1,514,475,860.47. There was however, at that time in +the Treasury, applicable to the general purposes of the Government, the sum +of $66,818,292.38. + +The total receipts for the current fiscal year ending June 30, 1886, +ascertained to October 1, 1885, and estimated for the remainder of the +year, are $315,000,000. The expenditures ascertained and estimated for the +same time are $245,000,000, leaving a surplus at the close of the year +estimated at $70,000,000. + +The value of the exports from the United States to foreign countries during +the last fiscal year was as follows: + +Some of the principal exports, with their values and the percentage they +respectively bear to the total exportation, are given as follows: + +Our imports during the year were as follows: + +The following are given as prominent articles of import during the year, +with their values and the percentage they bear to the total importation: + +Of the entire amount of duties collected 70 per cent was collected from the +following articles of import: + +The fact that our revenues are in excess of the actual needs of all +economical administration of the Government justifies a reduction in the +amount exacted from the people for its support. Our Government is but the +means established by the will of a free people by which certain principles +are applied which they have adopted for their benefit and protection; and +it is never better administered and its true spirit is never better +observed than when the people's taxation for its support is scrupulously +limited to the actual necessity of expenditure and distributed according to +a just and equitable plan. + +The proposition with which we have to deal is the reduction of the revenue +received by the Government, and indirectly paid by the people, from customs +duties. The question of free trade is not involved, nor is there now any +occasion for the general discussion of the wisdom or expediency of a +protective system. + +Justice and fairness dictate that in any modification of our present laws +relating to revenue the industries and interests which have been encouraged +by such laws, and in which our citizens have large investments, should not +be ruthlessly injured or destroyed. We should also deal with the subject in +such manner as to protect the interests of American labor, which is the +capital of our workingmen. Its stability and proper remuneration furnish +the most justifiable pretext for a protective policy. + +Within these limitations a certain reduction should be made in our customs +revenue. The amount of such reduction having been determined, the inquiry +follows, Where can it best be remitted and what articles can best be +released from duty in the interest of our citizens? + +I think the reduction should be made in the revenue derived from a tax upon +the imported necessaries of life. We thus directly lessen the cost of +living in every family of the land and release to the people in every +humble home a larger measure of the rewards of frugal industry. + +During the year ended November 1, 1885, 145 national banks were organized, +with an aggregate capital of $16,938,000, and circulating notes have been +issued to them amounting to $4,274,910. The whole number of these banks in +existence on the day above mentioned was 2,727. + +The very limited amount of circulating notes issued by our national banks, +compared with the amount the law permits them to issue upon a deposit of +bonds for their redemption, indicates that the volume of our circulating +medium may be largely increased through this instrumentality. + +Nothing more important than the present condition of our currency and +coinage can claim your attention. + +Since February, 1878, the Government has, under the compulsory provisions +of law, purchased silver bullion and coined the same at the rate of more +than $2,000,000 every month. By this process up to the present date +215,759,431 silver dollars have been coined. + +A reasonable appreciation of a delegation of power to the General +Government would limit its exercise, without express restrictive words, to +the people's needs and the requirements of the public welfare. + +Upon this theory the authority to "coin money" given to Congress by the +Constitution, if it permits the purchase by the Government of bullion for +coinage in any event, does not justify such purchase and coinage to an +extent beyond the amount needed for a sufficient circulating medium. + +The desire to utilize the silver product of the country should not lead to +a misuse or the perversion of this power. + +The necessity for such an addition to the silver currency of the nation as +is compelled by the silver-coinage act is negatived by the fact that up to +the present time only about 50,000,000 of the silver dollars so coined have +actually found their way into circulation, leaving more than 165,000,000 in +the possession of the Government, the custody of which has entailed a +considerable expense for the construction of vaults for it deposit. Against +this latter amount there are outstanding silver certificates amounting to +about $93,000,000. + +Every month two millions of gold in the public Treasury are paid our for +two millions or more of silver dollars, to be added to the idle mass +already accumulated. + +If continued long enough, this operation will result in the substitution of +silver for all the gold the Government owns applicable to its general +purposes. It will not do to rely upon the customs receipts of the +Government to make good this drain of gold, because the silver thus coined +having been made legal tender for all debts and dues, public and private, +at times during the last six months 58 per cent of the receipts for duties +has been in silver or silver certificates, while the average within that +period has been 20 per cent. The proportion of silver and its certificates +received by the Government will probably increase as time goes on, for the +reason that the nearer the period approaches when it will be obliged to +offer silver in payment of its obligations the greater inducement there +will be to hoard gold against depreciation in the value of silver or for +the purpose of speculating. + +This hoarding of gold has already begun. + +When the time comes that gold has been withdrawn from circulation, then +will be apparent the difference between the real value of the silver dollar +and a dollar in gold, and the two coins will part company. Gold, still the +standard of value and necessary in our dealings with other countries, will +be at a premium over silver; banks which have substituted gold for the +deposits of their customers may pay them with silver bought with such gold, +thus making a handsome profit; rich speculators will sell their hoarded +gold to their neighbors who need it to liquidate their foreign debts, at a +ruinous premium over silver, and the laboring men and women of the land, +most defenseless of all, will find that the dollar received for the wage of +their toil has sadly shrunk in its purchasing power. It may be said that +the latter result will be but temporary, and that ultimately the price of +labor will be adjusted to the change; but even if this takes place the +wage-worker can not possibly gain, but must inevitably lose, since the +price he is compelled to pay for his living will not only be measured in a +coin heavily depreciated and fluctuating and uncertain in its value, but +this uncertainty in the value of the purchasing medium will be made the +pretext for an advance in prices beyond that justified by actual +depreciation. + +The words uttered in 1834 by Daniel Webster in the Senate of the United +States are true to-day: The very man of all others who has the deepest +interest in a sound currency, and who suffers most by mischievous +legislation in money matters, is the man who earns his daily bread by his +daily toil. The most distinguished advocate of bimetallism, discussing our +silver coinage, has lately written: No American citizen's hand has yet felt +the sensation of cheapness, either in receiving or expending the silver-act +dollars. And those who live by labor or legitimate trade never will feel +that sensation of cheapness. However plenty silver dollars may become, they +will not be distributed as gifts among the people; and if the laboring man +should receive four depreciated dollars where he now receives but two, he +will pay in the depreciated coin more than double the price he now pays for +all the necessaries and comforts of life. + +Those who do not fear any disastrous consequences arising from the +continued compulsory coinage of silver as now directed by law, and who +suppose that the addition to the currency of the country intended as its +result will be a public benefit, are reminded that history demonstrates +that the point is easily reached in the attempt to float at the same time +two sorts of money of different excellence when the better will cease to be +in general circulation. The hoarding of gold which has already taken place +indicates that we shall not escape the usual experience in such cases. So +if this silver coinage be continued we may reasonably expect that gold and +its equivalent will abandon the field of circulation to silver alone. This +of course must produce a severe contraction of our circulating medium, +instead of adding to it. + +It will not be disputed that any attempt on the part of the Government to +cause the circulation of silver dollars worth 80 cents side by side with +gold dollars worth 100 cents, even within the limit that legislation does +not run counter to the laws of trade, to be successful must be seconded by +the confidence of the people that both coins will retain the same +purchasing power and be interchangeable at will. A special effort has been +made by the Secretary of the Treasury to increase the amount of our silver +coin in circulation; but the fact that a large share of the limited amount +thus put out has soon returned to the public Treasury in payment of duties +leads to the belief that the people do not now desire to keep it in hand, +and this, with the evident disposition to hoard gold, gives rise to the +suspicion that there already exists a lack of confidence among the people +touching our financial processes. There is certainly not enough silver now +in circulation to cause uneasiness, and the whole amount coined and now on +hand might after a time be absorbed by the people without apprehension; but +it is the ceaseless stream that threatens to overflow the land which causes +fear and uncertainty. + +What has been thus far submitted upon this subject relates almost entirely +to considerations of a home nature, unconnected with the bearing which the +policies of other nations have upon the question. But it is perfectly +apparent that a line of action in regard to our currency can not wisely be +settled upon or persisted in without considering the attitude on the +subject of other countries with whom we maintain intercourse through +commerce, trade, and travel. An acknowledgment of this fact is found in the +act by virtue of which our silver is compulsorily coined. It provides +that-- The President shall invite the governments of the countries +composing the Latin Union, so called, and of such other European nations as +he may deem advisable, to join the United States in a conference to adopt 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. This conference absolutely failed, and a +similar fate has awaited all subsequent efforts in the same direction. And +still we continue our coinage of silver at a ratio different from that of +any other nation. The most vital part of the silver-coinage act remains +inoperative and unexecuted, and without an ally or friend we battle upon +the silver field in an illogical and losing contest. + +To give full effect to the design of Congress on this subject I have made +careful and earnest endeavor since the adjournment of the last Congress. + +To this end I delegated a gentleman well instructed in fiscal science to +proceed to the financial centers of Europe and, in conjunction with our +ministers to England, France, and Germany, to obtain a full knowledge of +the attitude and intent of those governments in respect of the +establishment of such an international ratio as would procure free coinage +of both metals at the mints of those countries and our own. By my direction +our consul-general at Paris has given close attention to the proceedings of +the congress of the Latin Union, in order to indicate our interest in its +objects and report its action. + +It may be said in brief, as the result of these efforts, that the attitude +of the leading powers remains substantially unchanged since the monetary +conference of 1881, nor is it to be questioned that the views of these +governments are in each instance supported by the weight of public +opinion. + +The steps thus taken have therefore only more fully demonstrated the +uselessness of further attempts at present to arrive at any agreement on +the subject with other nations. + +In the meantime we are accumulating silver coin, based upon our own +peculiar ratio, to such an extent, and assuming so heavy a burden to be +provided for in any international negotiations, as will render us an +undesirable party to any future monetary conference of nations. + +It is a significant fact that four of the five countries composing the +Latin Union mentioned in our coinage act, embarrassed with their silver +currency, have just completed an agreement among themselves that no more +silver shall be coined by their respective Governments and that such as has +been already coined and in circulation shall be redeemed in gold by the +country of its coinage. The resort to this expedient by these countries may +well arrest the attention of those who suppose that we can succeed without +shock or injury in the attempt to circulate upon its merits all the silver +we may coin under the provisions of our silver-coinage act. + +The condition in which our Treasury may be placed by a persistence in our +present course is a matter of concern to every patriotic citizen who does +not desire his Government to pay in silver such of its obligations as +should be paid in gold. Nor should our condition be such as to oblige us, +in a prudent management of our affairs, to discontinue the calling in and +payment of interest-bearing obligations which we have the right now to +discharge, and thus avoid the payment of further interest thereon. + +The so-called debtor class, for whose benefit the continued compulsory +coinage of silver is insisted upon, are not dishonest because they are in +debt, and they should not be suspected of a desire to jeopardize the +financial safety of the country in order that they may cancel their present +debts by paying the same in depreciated dollars. Nor should it be forgotten +that it is not the rich nor the money lender alone that must submit to such +a readjustment, enforced by the Government and their debtors. The pittance +of the widow and the orphan and the incomes of helpless beneficiaries of +all kinds would be disastrously reduced. The depositors in savings banks +and in other institutions which hold in trust the savings of the poor, when +their little accumulations are scaled down to meet the new order of things, +would in their distress painfully realize the delusion of the promise made +to them that plentiful money would improve their condition. + +We have now on hand all the silver dollars necessary to supply the present +needs of the people and to satisfy those who from sentiment wish to see +them in circulation, and if their coinage is suspended they can be readily +obtained by all who desire them. If the need of more is at anytime +apparent, their coinage may be renewed. + +That disaster has not already overtaken us furnishes no proof that danger +does not wait upon a continuation of the present silver coinage. We have +been saved by the most careful management and unusual expedients, by a +combination of fortunate conditions, and by a confident expectation that +the course of the Government in regard to silver coinage would be speedily +changed by the action of Congress. + +Prosperity hesitates upon our threshold because of the dangers and +uncertainties surrounding this question. Capital timidly shrinks from +trade, and investors are unwilling to take the chance of the questionable +shape in which their money will be returned to them, while enterprise halts +at a risk against which care and sagacious management do not protect. + +As a necessary consequence, labor lacks employment and suffering and +distress are visited upon a portion of our fellow-citizens especially +entitled to the careful consideration of those charged with the duties of +legislation. No interest appeals to us so strongly for a safe and stable +currency as the vast army of the unemployed. + +I recommend the suspension of the compulsory coinage of silver dollars, +directed by the law passed in February, 1878. + +The Steamboat-Inspection Service on the 30th day of June, 1885, was +composed of 140 persons, including officers, clerks, and messengers. The +expenses of the service over the receipts were $138,822.22 during the +fiscal year. The special inspection of foreign steam vessels, organized +under a law passed in 1882, was maintained during the year at an expense of +$36,641.63. Since the close of the fiscal year reductions have been made in +the force employed which will result in a saving during the current year of +$17,000 without affecting the efficiency of the service. + +The Supervising Surgeon-General reports that during the fiscal year 41,714 +patients have received relief through the Marine-Hospital Service, of whom +12,803 were treated in hospitals and 28,911 at the dispensaries. + +Active and effective efforts have been made through the medium of this +service to protect the country against an invasion of cholera, which has +prevailed in Spain and France, and the smallpox, which recently broke out +in Canada. + +The most gratifying results have attended the operations of the Life Saving +Service during the last fiscal year. The observance of the provision of law +requiring the appointment of the force employed in this service to be made +"solely with reference to their fitness, and without reference to their +political or party affiliation," has secured the result which may +confidently be expected in any branch of public employment where such a +rule is applied. As a consequence, this service is composed of men well +qualified for the performance of their dangerous and exceptionally +important duties + +The number of stations in commission at the close of the year was 203. The +number of disasters to vessels and craft of all kinds within their field of +action was 371. The number of persons endangered in such disasters was +2,439, of whom 2,428 were saved and only 11 lost. Other lives which were +imperiled, though not by disasters to shipping, were also rescued, and a +large amount of property was saved through the aid of this service. The +cost of its maintenance during the year was $828,474.43. + +The work of the Coast and Geodetic Survey was during the last fiscal year +carried on within the boundaries and off the coasts of thirty-two States, +two Territories, and the District of Columbia. In July last certain +irregularities were found to exist in the management of this Bureau, which +led to a prompt investigation of its methods. The abuses which were brought +to light by this examination and the reckless disregard of duty and the +interests of the Government developed on the part of some of those +connected with the service made a change of superintendency and a few of +its other officers necessary. Since the Bureau has been in new hands an +introduction of economies and the application of business methods have +produced an important saving to the Government and a promise of more useful +results. + +This service has never been regulated by anything but the most indefinite +legal enactments and the most unsatisfactory rules. It was many years ago +sanctioned apparently for a purpose regarded as temporary and related to a +survey of our coast. Having gained a place in the appropriations made by +Congress, it has gradually taken to itself powers and objects not +contemplated in its creation and extended its operations until it sadly +needs legislative attention. + +So far as a further survey of our coast is concerned, there seems to be a +propriety in transferring that work to the Navy Department. The other +duties now in charge of this establishment, if they can not be profitably +attached to some existing Department or other bureau, should be prosecuted +under a law exactly defining their scope and purpose, and with a careful +discrimination between the scientific inquiries which may properly be +assumed by the Government and those which should be undertaken by State +authority or by individual enterprise. + +It is hoped that the report of the Congressional committee heretofore +appointed to investigate this and other like matters will aid in the +accomplishment of proper legislation on this subject. + +The report of the Secretary of War is herewith submitted. The attention of +Congress is invited to the detailed account which it contains of the +administration of his Department, and his recommendations and suggestions +for the improvement of the service. + +The Army consisted, at the date of the last consolidated returns, of 2,154 +officers and 24,705 enlisted men. + +The expenses of the Departments for the fiscal year ended June, 30, 1885, +including $13,164,394.60 for public works and river and harbor +improvements, were $45,850,999.54. + +Besides the troops which were dispatched in pursuit of the small band of +Indians who left their reservation in Arizona and committed murders and +outrages, two regiments of cavalry and one of infantry were sent last July +to the Indian Territory to prevent an outbreak which seemed imminent. They +remained to aid, if necessary, in the expulsion of intruders upon the +reservation, who seemed to have caused the discontent among the Indians, +but the Executive proclamation warning them to remove was complied with +without their interference. + +Troops were also sent to Rock Springs, in Wyoming Territory, after the +massacre of Chinese there, to prevent further disturbance, and afterwards +to Seattle, in Washington Territory, to avert a threatened attack upon +Chinese laborers and domestic violence there. In both cases the mere +presence of the troops had the desired effect. + +It appears that the number of desertions has diminished, but that during +the last fiscal year they numbered 2,927; and one instance is given by the +Lieutenant-General of six desertions by the same recruit. I am convinced +that this number of desertions can be much diminished by better discipline +and treatment; but the punishment should be increased for repeated +offenses. + +These desertions might also be reduced by lessening the term of first +enlistments, thus allowing a discontented recruit to contemplate a nearer +discharge and the Army a profitable riddance. After one term of service a +reenlistment would be quite apt to secure a contented recruit and a good +soldier. + +The Acting Judge-Advocate-General reports that the number of trials by +general courts-martial during the year was 2,328, and that 11,851 trials +took place before garrison and regimental courts-martial. The suggestion +that probably more than half the Army have been tried for offenses, great +and small, in one year may well arrest attention. Of course many of these +trials before garrison and regimental courts-martial were for offenses +almost frivolous, and there should, I think, be a way devised to dispose of +these in a more summary and less inconvenient manner than by +court-martial. + +If some of the proceedings of courts-martial which I have had occasion to +examine present the ideas of justice which generally prevail in these +tribunals, I am satisfied that they should be much reformed if the honor +and the honesty of the Army and Navy are by their instrumentality to be +vindicated and protected. + +The Board on Fortifications or other defenses, appointed in pursuance of +the provisions of the act of Congress approved March 3, 1885, will in a +short time present their report, and it is hoped that this may greatly aid +the legislation so necessary to remedy the present defenseless condition of +our seacoasts. + +The work of the Signal Service has been prosecuted during the last year +with results of increasing benefit to the country. The field of instruction +has been enlarged with a view of adding to its usefulness. The number of +stations in operation June 30, 1885, was 489. Telegraphic reports are +received daily from 160 stations. Reports are also received from 25 +Canadian stations, 375 volunteer observers, 52 army surgeons at military +posts, and 333 foreign stations. The expense of the service during the +fiscal year, after deducting receipts from military telegraph lines, was +$792,592.97. In view of the fact referred to by the Secretary of War, that +the work of this service ordinarily is of a scientific nature, and the +further fact that it is assuming larger proportions constantly and becoming +more and more unsuited to the fixed rules which must govern the Army, I am +inclined to agree with him in the opinion that it should be separately +established. If this is done, the scope and extent of its operations +should, as nearly as possible, be definitely prescribed by law and always +capable of exact ascertainment. + +The Military Academy at West Point is reported as being in a high state of +efficiency and well equipped for the satisfactory accomplishment of the +purposes of its maintenance. + +The fact that the class which graduates next year is an unusually large one +has constrained me to decline to make appointments to second lieutenancies +in the Army from civil life, so that such vacancies as exist in these +places may be reserved for such graduates; and yet it is not probable that +there will be enough vacancies to provide positions for them all when they +leave the military school. Under the prevailing law and usage those not +thus assigned to duty never actively enter the military service. It is +suggested that the law on this subject be changed so that such of these +young men as are not at once assigned to duty after graduation may be +retained as second lieutenants in the Army if they desire it, subject to +assignment when opportunity occurs, and under proper rules as to priority +of selection. + +The expenditures on account of the Military Academy for the last fiscal +year, exclusive of the sum taken for its purposes from appropriations for +the support of the Army, were $290,712.07. + +The act approved March 3, 1885, designed to compensate officers and +enlisted men for loss of private property while in the service of the +United States, is so indefinite in its terms and apparently admits so many +claims the adjustment of which could not have been contemplated that if it +is to remain upon the statute book it needs amendment. + +There should be a general law of Congress prohibiting the construction of +bridges over navigable waters in such manner as to obstruct navigation, +with provisions for preventing the same. It seems that under existing +statutes the Government can not intervene to prevent such a construction +when entered upon without its consent, though when such consent is asked +and granted upon condition the authority to insist upon such condition is +clear. Thus it is represented that while the officers of the Government are +with great care guarding against the obstruction of navigation by a bridge +across the Mississippi River at St. Paul a large pier for a bridge has been +built just below this place directly in the navigable channel of the river. +If such things are to be permitted, a strong argument is presented against +the appropriation of large sums of money to improve the navigation of this +and other important highways of commerce. + +The report of the Secretary of the Navy gives a history of the operations +of his Department and the present condition of the work committed to his +charge. + +He details in full the course pursued by him to protect the rights of the +Government in respect of certain vessels unfinished at the time of his +accession to office, and also concerning the dispatch boat Dolphin, claimed +to be completed and awaiting the acceptance of the Department. No one can +fail to see from recitals contained in this report that only the +application of business principles has been insisted upon in the treatment +of these subjects, and that whatever controversy has arisen was caused by +the exaction on the part of the Department of contract obligations as they +were legally construed. In the case of the Dolphin, with entire justice to +the contractor, an agreement has been entered into providing for the +ascertainment by a judicial inquiry of the complete or partial compliance +with the contract in her construction, and further providing for the +assessment of any damages to which the Government may be entitled on +account of a partial failure to perform such contract, or the payment of +the sum still remaining unpaid upon her price in case a full performance is +adjudged. + +The contractor, by reason of his failure in business, being unable to +complete the other three vessels, they were taken possession of by the +Government in their unfinished state under a clause in the contract +permitting such a course, and are now in process of completion in the yard +of the contractor, but under the supervision of the Navy Department. + +Congress at its last session authorized the construction of two additional +new cruisers and two gunboats, at a cost not exceeding in the aggregate +$2,995,000. The appropriation for this purpose having become available on +the 1st day of July last, steps were at once taken for the procurement of +such plans for the construction of these vessels as would be likely to +insure their usefulness when completed. These are of the utmost importance, +considering the constant advance in the art of building vessels of this +character, and the time is not lost which is spent in their careful +consideration and selection. + +All must admit the importance of an effective navy to a nation like ours, +having such an extended seacoast to protect; and yet we have not a single +vessel of war that could keep the seas against a first-class vessel of any +important power. Such a condition ought not longer to continue. The nation +that can not resist aggression is constantly exposed to it. Its foreign +policy is of necessity weak and its negotiations are conducted with +disadvantage because it is not in condition to enforce the terms dictated +by its sense of right and justice. + +Inspired, as I am, by the hope, shared by all patriotic citizens, that the +day is not very far distant when our Navy will be such as befits our +standing among the nations of the earth, and rejoiced at every step that +leads in the direction of such a consummation, I deem it my duty to +especially direct the attention of Congress to the close of the report of +the Secretary of the Navy, in which the humiliating weakness of the present +organization of his Department is exhibited and the startling abuses and +waste of its present methods are exposed. The conviction is forced upon us +with the certainty of mathematical demonstration that before we proceed +further in the restoration of a Navy we need a thoroughly reorganized Navy +Department. The fact that within seventeen years more than $75,000,000 have +been spent in the construction, repair, equipment, and armament of vessels, +and the further fact that instead of an effective and creditable fleet we +have only the discontent and apprehension of a nation undefended by war +vessels, added to the disclosures now made, do not permit us to doubt that +every attempt to revive our Navy has thus far for the most part been +misdirected, and all our efforts in that direction have been little better +than blind gropings and expensive, aimless follies. + +Unquestionably if we are content with the maintenance of a Navy Department +simply as a shabby ornament to the Government, a constant watchfulness may +prevent some of the scandal and abuse which have found their way into our +present organization, and its incurable waste may be reduced to the +minimum. But if we desire to build ships for present usefulness instead of +naval reminders of the days that are past, we must have a Department +organized for the work, supplied with all the talent and ingenuity our +country affords, prepared to take advantage of the experience of other +nations, systematized so that all effort shall unite and lead in one +direction, and fully imbued with the conviction that war vessels, though +new, are useless unless they combine all that the ingenuity of man has up +to this day brought forth relating to their construction. + +I earnestly commend the portion of the Secretary's report devoted to this +subject to the attention of Congress, in the hope that his suggestions +touching the reorganization of his Department may be adopted as the first +step toward the reconstruction of our Navy. + +The affairs of the postal service are exhibited by the report of the +Postmaster-General, which will be laid before you. + +The postal revenue, whose ratio of gain upon the rising prosperity of 1882 +and 1883 outstripped the increasing expenses of our growing service, was +checked by the reduction in the rate of letter postage which took effect +with the beginning of October in the latter year, and it diminished during +the two past fiscal years $2,790,000, in about the proportion of $2,270,000 +in 1884 to $520,000 in 1885. Natural growth and development have meantime +increased expenditure, resulting in a deficiency in the revenue to meet the +expenses of the Department of five and a quarter million dollars for the +year 1884 and eight and a third million in the last fiscal year. The +anticipated and natural revival of the revenue has been oppressed and +retarded by the unfavorable business condition of the country, of which the +postal service is a faithful indicator. The gratifying fact is shown, +however, by the report that our returning prosperity is marked by a gain of +$380,000 in the revenue of the latter half of the last year over the +corresponding period of the preceding year. + +The change in the weight of first-class matter which may be carried for a +single rate of postage from a half ounce to an ounce, and the reduction by +one-half of the rate of newspaper postage, which, under recent legislation, +began with the current year, will operate to restrain the augmentation of +receipts which otherwise might have been expected to such a degree that the +scale of expense may gain upon the revenue and cause an increased +deficiency to be shown at its close. Yet, after no long period of +reawakened prosperity, by proper economy it is confidently anticipated that +even the present low rates, now as favorable as any country affords, will +be adequate to sustain the cost of the service. + +The operation of the Post-Office Department is for the convenience and +benefit of the people, and the method by which they pay the charges of this +useful arm of their public service, so that it be just and impartial, is of +less importance to them than the economical expenditure of the means they +provide for its maintenance and the due improvement of its agencies, so +that they may enjoy its highest usefulness. + +A proper attention has been directed to the prevention of waste or +extravagance, and good results appear from the report to have already been +accomplished. + +I approve the recommendation of the Postmaster-General to reduce the +charges on domestic money orders of $5 and less from 8 to 5 cents. This +change will materially aid those of our people who most of all avail +themselves of this instrumentality, but to whom the element of cheapness is +of the greatest importance. With this reduction the system would still +remain self-supporting. + +The free-delivery system has been extended to 19 additional cities during +the year, and 178 now enjoy its conveniences. Experience has commended it +to those who enjoy its benefits, and further enlargement of its facilities +is due to other communities to which it is adapted. In the cities where it +has been established, taken together the local postage exceeds its +maintenance by nearly $1,300,000. The limit to which this system is now +confined by law has been nearly reached, and the reasons given justify its +extension, which is proposed. + +It was decided, with my approbation, after a sufficient examination, to be +inexpedient for the Post-Office Department to contract for carrying our +foreign mails under the additional authority given by the last Congress. +The amount limited was inadequate to pay all within the purview of the law +the full rate of 50 cents per mile, and it would have been unjust and +unwise to have given it to some and denied it to others. Nor could +contracts have been let under the law to all at a rate to have brought the +aggregate within the appropriation without such practical prearrangement of +terms as would have violated it. + +The rate of sea and inland postage which was proffered under another +statute clearly appears to be a fair compensation for the desired service, +being three times the price necessary to secure transportation by other +vessels upon any route, and much beyond the charges made to private persons +for services not less burdensome. + +Some of the steamship companies, upon the refusal of the Postmaster-General +to attempt, by the means provided, the distribution of the sum appropriated +as an extra compensation, withdrew the services of their vessels and +thereby occasioned slight inconvenience, though no considerable injury, the +mails having been dispatched by other means. + +Whatever may be thought of the policy of subsidizing any line of public +conveyance or travel, I am satisfied that it should not be done under cover +of an expenditure incident to the administration of a Department, nor +should there be any uncertainty as to the recipients of the subsidy or any +discretion left to an executive officer as to its distribution. If such +gifts of the public money are to be made for the purpose of aiding any +enterprise in the supposed interest of the public, I can not but think that +the amount to be paid and the beneficiary might better be determined by +Congress than in any other way. + +The international congress of delegates from the Postal Union countries +convened at Lisbon, in Portugal, in February last, and after a session of +some weeks the delegates signed a convention amendatory of the present +postal-union convention in some particulars designed to advance its +purposes. This additional act has had my approval and will be laid before +you with the departmental report. + +I approve the recommendation of the postmaster-General that another +assistant be provided for his Department. I invite your consideration to +the several other recommendations contained in his report. + +The report of the Attorney-General contains a history of the conduct of the +Department of Justice during the last year and a number of valuable +suggestions as to needed legislation, and I invite your careful attention +to the same. + +The condition of business in the courts of the United States is such that +there seems to be an imperative necessity for remedial legislation on the +subject. Some of these courts are so overburdened with pending causes that +the delays in determining litigation amount often to a denial of justice. +Among the plans suggested for relief is one submitted by the +Attorney-General. Its main features are: The transfer of all the original +jurisdiction of the circuit courts to the district courts and an increase +of judges for the latter where necessary; an addition of judges to the +circuit courts, and constituting them exclusively courts of appeal, and +reasonably limiting appeals thereto; further restrictions of the right to +remove causes from the State to Federal courts; permitting appeals to the +Supreme Court from the courts of the District of Columbia and the +Territories only in the same cases as they are allowed from State courts, +and guarding against an unnecessary number of appeals from the circuit +courts. + +I approve the plan thus outlined, and recommend the legislation necessary +for its application to our judicial system. + +The present mode of compensating United States marshals and district +attorneys should, in my opinion, be changed. They are allowed to charge +against the Government certain fees for services, their income being +measured by the amount of such fees within a fixed limit as to their annual +aggregate. This is a direct inducement for them to make their fees in +criminal cases as large as possible in an effort to reach the maximum sum +permitted. As an entirely natural consequence, unscrupulous marshals are +found encouraging frivolous prosecutions, arresting people on petty charges +of crime and transporting them to distant places for examination and trial, +for the purpose of earning mileage and other fees; and district attorneys +uselessly attend criminal examinations far from their places of residence +for the express purpose of swelling their accounts against the Government. +The actual expenses incurred in these transactions are also charged against +the Government. + +Thus the rights and freedom of our citizens are outraged and public +expenditures increased for the purpose of furnishing public officers +pretexts for increasing the measure of their compensation. + +I think marshals and district attorneys should be paid salaries, adjusted +by a rule which will make them commensurate with services fairly rendered. + +In connection with this subject I desire to suggest the advisability, if it +be found not obnoxious to constitutional objection, of investing United +States commissioners with the power to try and determine certain violations +of law within the grade of misdemeanors. Such trials might be made to +depend upon the option of the accused. The multiplication of small and +technical offenses, especially under the provisions of our internal-revenue +law, render some change in our present system very desirable in the +interests of humanity as well as economy. The district courts are now +crowded with petty prosecutions, involving a punishment in case of +conviction, of only a slight fine, while the parties accused are harassed +by an enforced attendance upon courts held hundreds of miles from their +homes. If poor and friendless, they are obliged to remain in jail during +months, perhaps, that elapse before a session of the court is held, and are +finally brought to trial surrounded by strangers and with but little real +opportunity for defense. In the meantime frequently the marshal has charged +against the Government his fees for an arrest, the transportation of the +accused and the expense of the same, and for summoning witnesses before a +commissioner, a grand jury, and a court; the witnesses have been paid from +the public funds large fees and traveling expenses, and the commissioner +and district attorney have also made their charges against the Government. + +This abuse in the administration of our criminal law should be remedied; +and if the plan above suggested is not practicable, some other should be +devised. + +The report of the Secretary of the Interior, containing an account of the +operations of this important Department and much interesting information, +will be submitted for your consideration. + +The most intricate and difficult subject in charge of this Department is +the treatment and management of the Indians. I am satisfied that some +progress may be noted in their condition as a result of a prudent +administration of the present laws and regulations for their control. + +But it is submitted that there is lack of a fixed purpose or policy on this +subject, which should be supplied. It is useless to dilate upon the wrongs +of the Indians, and as useless to indulge in the heartless belief that +because their wrongs are revenged in their own atrocious manner, therefore +they should be exterminated. + +They are within the care of our Government, and their rights are, or should +be, protected from invasion by the most solemn obligations. They are +properly enough called the wards of the Government; and it should be borne +in mind that this guardianship involves on our part efforts for the +improvement of their condition and the enforcement of their rights. There +seems to be general concurrence in the proposition that the ultimate object +of their treatment should be their civilization and citizenship. Fitted by +these to keep pace in the march of progress with the advanced civilization +about them, they will readily assimilate with the mass of our population, +assuming the responsibilities and receiving the protection incident to this +condition. + +The difficulty appears to be in the selection of the means to be at present +employed toward the attainment of this result. + +Our Indian population, exclusive of those in Alaska, is reported as +numbering 260,000, nearly all being located on lands set apart for their +use and occupation, aggregating over 134,000,000 acres. These lands are +included in the boundaries of 171 reservations of different dimensions, +scattered in 21 States and Territories, presenting great variations in +climate and in the kind and quality of their soils. Among the Indians upon +these several reservations there exist the most marked differences in +natural traits and disposition and in their progress toward civilization. +While some are lazy, vicious, and stupid, others are industrious, peaceful, +and intelligent; while a portion of them are self-supporting and +independent, and have so far advanced in civilization that they make their +own laws, administered through officers of their own choice, and educate +their children in schools of their own establishment and maintenance, +others still retain, in squalor and dependence, almost the savagery of +their natural state. + +In dealing with this question the desires manifested by the Indians should +not be ignored. Here again we find a great diversity. With some the tribal +relation is cherished with the utmost tenacity, while its hold upon others +is considerably relaxed; the love of home is strong with all, and yet there +are those whose attachment to a particular locality is by no means +unyielding; the ownership of their lands in severalty is much desired by +some, while by others, and sometimes among the most civilized, such a +distribution would be bitterly opposed. + +The variation of their wants, growing out of and connected with the +character of their several locations, should be regarded. Some are upon +reservations most fit for grazing, but without flocks or herds; and some on +arable land, have no agricultural implements. While some of the +reservations are double the size necessary to maintain the number of +Indians now upon them, in a few cases, perhaps, they should be enlarged. + +Add to all this the difference in the administration of the agencies. While +the same duties are devolved upon all, the disposition of the agents and +the manner of their contact with the Indians have much to do with their +condition and welfare. The agent who perfunctorily performs his duty and +slothfully neglects all opportunity to advance their moral and physical +improvement and fails to inspire them with a desire for better things will +accomplish nothing in the direction of their civilization, while he who +feels the burden of an important trust and has an interest in his work +will, by consistent example, firm yet considerate treatment, and +well-directed aid and encouragement, constantly lead those under his charge +toward the light of their enfranchisement. + +The history of all the progress which has been made in the civilization of +the Indian I think will disclose the fact that the beginning has been +religious teaching, followed by or accompanying secular education. While +the self-sacrificing and pious men and women who have aided in this good +work by their independent endeavor have for their reward the beneficent +results of their labor and the consciousness of Christian duty well +performed, their valuable services should be fully acknowledged by all who +under the law are charged with the control and management of our Indian +wards. + +What has been said indicates that in the present condition of the Indians +no attempt should be made to apply a fixed and unyielding plan of action to +their varied and varying needs and circumstances. + +The Indian Bureau, burdened as it is with their general oversight and with +the details of the establishment, can hardly possess itself of the minute +phases of the particular cases needing treatment; and thus the propriety of +creating an instrumentality auxiliary to those already established for the +care of the Indians suggests itself. + +I recommend the passage of a law authorizing the appointment of six +commissioners, three of whom shall be detailed from the Army, to be charged +with the duty of a careful inspection from time to time of all the Indians +upon our reservations or subject to the care and control of the Government, +with a view of discovering their exact condition and needs and determining +what steps shall be taken on behalf of the Government to improve their +situation in the direction of their self-support and complete civilization; +that they ascertain from such inspection what, if any, of the reservations +may be reduced in area, and in such cases what part not needed for Indian +occupation may be purchased by the Government from the Indians and disposed +of for their benefit; what, if any, Indians may, with their consent, be +removed to other reservations, with a view of their concentration and the +sale on their behalf of their abandoned reservations; what Indian lands now +held in common should be allotted in severalty; in what manner and to what +extent the Indians upon the reservations can be placed under the protection +of our laws and subjected to their penalties, and which, if any, Indians +should be invested with the right of citizenship. The powers and functions +of the commissioners in regard to these subjects should be clearly defined, +though they should, in conjunction with the Secretary of the Interior, be +given all the authority to deal definitely with the questions presented +deemed safe and consistent. + +They should be also charged with the duty of ascertaining the Indians who +might properly be furnished with implements of agriculture, and of what +kind; in what cases the support of the Government should be withdrawn; +where the present plan of distributing Indian supplies should be changed; +where schools may be established and where discontinued; the conduct, +methods, and fitness of agents in charge of reservations; the extent to +which such reservations are occupied or intruded upon by unauthorized +persons, and generally all matters related to the welfare and improvement +of the Indian. + +They should advise with the Secretary of the Interior concerning these +matters of detail in management, and he should be given power to deal with +them fully, if he is not now invested with such power. + +This plan contemplates the selection of persons for commissioners who are +interested in the Indian question and who have practical ideas upon the +subject of their treatment. + +The expense of the Indian Bureau during the last fiscal year was more than +six and a halt million dollars. I believe much of this expenditure might be +saved under the plan proposed; that its economical effects would be +increased with its continuance; that the safety of our frontier settlers +would be subserved under its operation, and that the nation would be saved +through its results from the imputation of inhumanity, injustice, and +mismanagement. + +In order to carry out the policy of allotment of Indian lands in severalty, +when deemed expedient, it will be necessary to have surveys completed of +the reservations, and, I hope that provision will be made for the +prosecution of this work. + +In May of the present year a small portion of the Chiricahua Apaches on the +White Mountain Reservation, in Arizona, left the reservation and committed +a number of murders and depredations upon settlers in that neighborhood. +Though prompt and energetic action was taken by the military, the renegades +eluded capture and escaped into Mexico. The formation of the country +through which these Indians passed, their thorough acquaintance with the +same, the speed of their escape, and the manner in which they scattered and +concealed themselves among the mountains near the scene of their outrages +put our soldiers at a great disadvantage in their efforts to capture them, +though the expectation is still entertained that they will be ultimately +taken and punished for their crimes. + +The threatening and disorderly conduct of the Cheyennes in the Indian +Territory early last summer caused considerable alarm and uneasiness. +Investigation proved that their threatening attitude was due in a great +measure to the occupation of the land of their reservation by immense herds +of cattle, which their owners claimed were rightfully there under certain +leases made by the Indians. Such occupation appearing upon examination to +be unlawful notwithstanding these leases, the intruders were ordered to +remove with their cattle from the lands of the Indians by Executive +proclamation. The enforcement of this proclamation had the effect of +restoring peace and order among the Indians, and they are now quiet and +well behaved. + +By an Executive order issued on February 27, 1885, by my predecessor, a +portion of the tract of country in the territory known as the Old Winnebago +and Crow Creek reservations was directed to be restored to the public +domain and opened to settlement under the land laws of the United States, +and a large number of persons entered upon those lands. This action alarmed +the Sioux Indians, who claimed the territory as belonging to their +reservation under the treaty of 1868. This claim was determined, after +careful investigation, to be well rounded, and consequently the Executive +order referred to was by proclamation of April 17, 1885, declared to be +inoperative and of no effect, and all persons upon the land were warned to +leave. This warning has been substantially complied with. + +The public domain had its origin in cessions of land by the States to the +General Government. The first cession was made by the State of New York, +and the largest, which in area exceeded all the others, by the State of +Virginia. The territory the proprietorship of which became thus vested in +the General Government extended from the western line of Pennsylvania to +the Mississippi River. These patriotic donations of the States were +encumbered with no condition except that they should the held and used "for +the common benefit of the United States." By purchase with the common fund +of all the people additions were made to this domain until it extended to +the northern line of Mexico, the Pacific Ocean, and the Polar Sea. The +original trust, "for the common benefit of the United States," attached to +all. In the execution of that trust the policy of many homes, rather than +large estates, was adopted by the Government. That these might be easily +obtained, and be the abode of security and contentment, the laws for their +acquisition were few, easily understood, and general in their character. +But the pressure of local interests, combined with a speculative spirit, +have in many instances procured the passage of laws which marred the +harmony of the general plan and encumbered the system with a multitude of +general and special enactments which render the land laws complicated, +subject the titles to uncertainty, and the purchasers often to oppression +and wrong. Laws which were intended for the "common benefit" have been +perverted so that large quantities of land are vesting in single +ownerships. From the multitude and character of the laws, this consequence +seems incapable of correction by mere administration. + +It is not for the "common benefit of the United States" that a large area +of the public lands should be acquired, directly or through fraud, in the +hands of a single individual. The nation's strength is in the people. The +nation's prosperity is in their prosperity. The nation's glory is in the +equality of her justice. The nation's perpetuity is in the patriotism of +all her people. Hence, as far as practicable, the plan adopted in the +disposal of the public lands should have in view the original policy, which +encouraged many purchases of these lands for homes and discouraged the +massing of large areas. Exclusive of Alaska, about three-fifths of the +national domain has been sold or subjected to contract or grant. Of the +remaining two-fifths a considerable portion is either mountain or desert. A +rapidly increasing population creates a growing demand for homes, and the +accumulation of wealth inspires an eager competition to obtain the public +land for speculative purposes. In the future this collision of interests +will be more marked than in the past, and the execution of the nation's +trust in behalf of our settlers will be more difficult. I therefore commend +to your attention the recommendations contained in the report of the +Secretary of the Interior with reference to the repeal and modification of +certain of our land laws. + +The nation has made princely grants and subsidies to a system of railroads +projected as great national highways to connect the Pacific States with the +East. It has been charged that these donations from the people have been +diverted to private gain and corrupt uses, and thus public indignation has +been aroused and suspicion engendered. Our great nation does not begrudge +its generosity, but it abhors speculation and fraud; and the favorable +regard of our people for the great corporations to which these grants were +made can only be revived by a restoration of confidence, to be secured by +their constant, unequivocal, and clearly manifested integrity. A faithful +application of the undiminished proceeds of the grants to the construction +and perfecting of their roads, an honest discharge of their obligations, +and entire justice to all the people in the enjoyment of their rights on +these highways of travel are all the public asks, and it will be content +with no less. To secure these things should be the common purpose of the +officers of the Government, as well as of the corporations. With this +accomplishment prosperity would be permanently secured to the roads, and +national pride would take the place of national complaint. + +It appears from the report of the Commissioner of Pensions that there were +on the 1st day of July, 1885, 345,125 persons borne upon the pension rolls, +who were classified as follows: Army invalids, 241,456; widows, minor +children, and dependent relatives of deceased soldiers, 78,841; navy +invalids, 2,745; navy widows, minor children, and dependents, 1,926; +survivors of the War of 1812, 2,945; and widows of those who served in that +war, 17,212. About one man in ten of all those who enlisted in the late war +are reported as receiving pensions, exclusive of the dependents of deceased +soldiers. On the 1st of July, 1875, the number of pensioners was 234,821, +and the increase within the ten years next thereafter was 110,304. + +While there is no expenditure of the public funds which the people more +cheerfully approve than that made in recognition of the services of our +soldiers living and dead, the sentiment underlying the subject should not +be vitiated by the introduction of any fraudulent practices. Therefore it +is fully as important that the rolls should be cleansed of all those who by +fraud have secured a place thereon as that meritorious claims should be +speedily examined and adjusted. The reforms in the methods of doing the +business of this Bureau which have lately been inaugurated promise better +results in both these directions. + +The operations of the Patent Office demonstrate the activity of the +inventive genius of the country. For the year ended June 30, 1885, the +applications for patents, including reissues, and for the registration of +trade-marks and labels, numbered 35,688. During the same period there were +22,928 patents granted and reissued and 1,429 trade-marks and labels +registered. The number of patents issued in the year 1875 was 14,387. The +receipts during the last fiscal year were $ 1,074,974.35, and the total +expenditures, not including contingent expenses, $934,123.11. + +There were 9,788 applications for patents pending on the 1st day of July, +1884, and 5,786 on the same date in the year 1885. There has been +considerable improvement made in the prompt determination of applications +and a consequent relief to expectant inventors. + +A number of suggestions and recommendations are contained in the report of +the Commissioner of patents which are well entitled to the consideration of +Congress. + +In the Territory of Utah the law of the United States passed for the +Suppression of polygamy has been energetically and faithfully executed +during the past year, with measurably good results. A number of convictions +have been secured for unlawful cohabitation, and in some cases pleas of +guilty have been entered and a slight punishment imposed, upon a promise by +the accused that they would not again offend against the law, nor advise, +counsel, aid, or abet in any way its violation by others. + +The Utah commissioners express the opinion, based upon such information as +they are able to obtain, that but few polygamous marriages have taken place +in the Territory during the last year. They further report that while there +can not be found upon the registration lists of voters the name of a man +actually guilty of polygamy, and while none of that class are holding +office, yet at the last election in the Territory all the officers elected, +except in one county, were men who, though not actually living in the +practice of polygamy, subscribe to the doctrine of polygamous marriages as +a divine revelation and a law unto all higher and more binding upon the +conscience than any human law, local or national. Thus is the strange +spectacle presented of a community protected by a republican form of +government, to which they owe allegiance, sustaining by their suffrages a +principle and a belief which set at naught that obligation of absolute +obedience to the law of the land which lies at the foundation of republican +institutions. + +The strength, the perpetuity, and the destiny of the nation rest upon our +homes, established by the law of God, guarded by parental care, regulated +by parental authority, and sanctified by parental love. + +These are not the homes of polygamy. + +The mothers of our land, who rule the nation as they mold the characters +and guide the actions of their sons, live according to God' s holy +ordinances, and each, secure and happy in the exclusive love of the father +of her children, sheds the warm light of true womanhood, unperverted and +unpolluted, upon all within her pure and wholesome family circle. + +These are not the cheerless, crushed, and unwomanly mothers of polygamy. + +The fathers of our families are the best citizens of the Republic. Wife and +children are the sources of patriotism, and conjugal and parental affection +beget devotion to the country. The man who, undefiled with plural marriage, +is surrounded in his single home with his wife and children has a stake in +the country which inspires him with respect for its laws and courage for +its defense. + +These are not the fathers of polygamous families. + +There is no feature of this practice or the system which sanctions it which +is not opposed to all that is of value in our institutions. + +There should be no relaxation in the firm but just execution of the law now +in operation, and I should be glad to approve such further discreet +legislation as will rid the country of this blot upon its fair fame. + +Since the people upholding polygamy in our Territories are reenforced by +immigration from other lands, I recommend that a law be passed to prevent +the importation of Mormons into the country. + +The agricultural interest of the country demands just recognition and +liberal encouragement. It sustains with certainty and unfailing strength +our nation's prosperity by the products of its steady toil, and bears its +full share of the burden of taxation without complaint. Our agriculturists +have but slight personal representation in the councils of the nation, and +are generally content with the humbler duties of citizenship and willing to +trust to the bounty of nature for a reward of their labor. But the +magnitude and value of this industry are appreciated when the statement is +made that of our total annual exports more than three-fourths are the +products of agriculture, and of our total population nearly one-half are +exclusively engaged in that occupation. + +The Department of Agriculture was created for the purpose of acquiring and +diffusing among the people useful information respecting the subjects it +has in charge, and aiding in the cause of intelligent and progressive +farming, by the collection of statistics, by testing the value and +usefulness of new seeds and plants, and distributing such as are found +desirable among agriculturists. This and other powers and duties with which +this Department is invested are of the utmost importance, and if wisely +exercised must be of great benefit to the country. The aim of our +beneficent Government is the improvement of the people in every station and +the amelioration of their condition. Surely our agriculturists should not +be neglected. The instrumentality established in aid of the farmers of the +land should not only be well equipped for the accomplishment of its +purpose, but those for whose benefit it has been adopted should be +encouraged to avail themselves fully of its advantages. + +The prohibition of the importation into several countries of certain of our +animals and their products, based upon the suspicion that health is +endangered in their use and consumption, suggests the importance of such +precautions for the protection of our stock of all kinds against disease as +will disarm suspicion of danger and cause the removal of such an injurious +prohibition. + +If the laws now in operation are insufficient to accomplish this +protection, I recommend their amendment to meet the necessities of the +situation; and I commend to the consideration of Congress the suggestions +contained in the report of the Commissioner of Agriculture calculated to +increase the value and efficiency of this Department . + +The report of the Civil Service Commission, which will be submitted, +contains an account of the manner in which the civil-service law has been +executed during the last year and much valuable information on this +important subject. + +I am inclined to think that there is no sentiment more general in the minds +of the people of our country than a conviction of the correctness of the +principle upon which the law enforcing civil-service reform is based. In +its present condition the law regulates only a part of the subordinate +public positions throughout the country. It applies the test of fitness to +applicants for these places by means of a competitive examination, and +gives large discretion to the Commissioners as to the character of the +examination and many other matters connected with its execution. Thus the +rules and regulations adopted by the Commission have much to do with the +practical usefulness of the statute and with the results of its +application. + +The people may well trust the Commission to execute the law with perfect +fairness and with as little irritation as is possible. But of course no +relaxation of the principle which underlies it and no weakening of the +safeguards which surround it can be expected. Experience in its +administration will probably suggest amendment of the methods of its +execution, but I venture to hope that we shall never again be remitted to +the system which distributes public positions purely as rewards for +partisan service. Doubts may well be entertained whether our Government +could survive the strain of a continuance of this system, which upon every +change of Administration inspires an immense army of claimants for office +to lay siege to the patronage of Government, engrossing the time of public +officers with their importunities, spreading abroad the contagion of their +disappointment, and filling the air with the tumult of their discontent. + +The allurements of an immense number of offices and places exhibited to the +voters of the land, and the promise of their bestowal in recognition of +partisan activity; debauch the suffrage and rob political action of its +thoughtful and deliberative character. The evil would increase with the +multiplication of offices consequent upon our extension, and the mania for +office holding, growing from its indulgence, would pervade our population +so generally that patriotic purpose, the support of principle, the desire +for the public good, and solicitude for the nation's welfare would be +nearly banished from the activity of our party contests and cause them to +degenerate into ignoble, selfish, and disgraceful struggles for the +possession of office and public place. + +Civil-service reform enforced by law came none too soon to check the +progress of demoralization. + +One of its effects, not enough regarded, is the freedom it brings to the +political action of those conservative and sober men who, in fear of the +confusion and risk attending an arbitrary and sudden change in all the +public offices with a change of party rule, cast their ballots against such +a chance. + +Parties seem to be necessary, and will long continue to exist; nor can it +be now denied that there are legitimate advantages, not disconnected with +office holding, which follow party supremacy. While partisanship continues +bitter and pronounced and supplies so much of motive to sentiment and +action, it is not fair to hold public officials in charge of important +trusts responsible for the best results in the performance of their duties, +and yet insist that they shall rely in confidential and important places +upon the work of those not only opposed to them in political affiliation, +but so steeped in partisan prejudice and rancor that they have no loyalty +to their chiefs and no desire for their success. Civil-service reform does +not exact this, nor does it require that those in subordinate positions who +fail in yielding their best service or who are incompetent should be +retained simply because they are in place. The whining of a clerk +discharged for indolence or incompetency, who, though he gained his place +by the worst possible operation of the spoils system, suddenly discovers +that he is entitled to protection under the sanction of civil-service +reform, represents an idea no less absurd than the clamor of the applicant +who claims the vacant position as his compensation for the most +questionable party work. + +The civil-service law does not prevent the discharge of the indolent or +incompetent clerk, but it does prevent supplying his place with the unfit +party worker. Thus in both these phases is seen benefit to the public +service. And the people who desire good government, having secured this +statute, will not relinquish its benefits without protest. Nor are they +unmindful of the fact that its full advantages can only be gained through +the complete good faith of those having its execution in charge. And this +they will insist upon. + +I recommend that the salaries of the Civil Service Commissioners be +increased to a sum more nearly commensurate to their important duties. + +It is a source of considerable and not unnatural discontent that no +adequate provision has yet been made for accommodating the principal +library of the Government. Of the vast collection of books and pamphlets +gathered at the Capitol, numbering some 700,000, exclusive of manuscripts, +maps, and the products of the graphic arts, also of great volume and value, +only about 300,000 volumes, or less than half the collection, are provided +with shelf room. The others, which are increasing at the rate of from +twenty-five to thirty thousand volumes a year, are not only inaccessible to +the public, but are subject to serious damage and deterioration from other +causes in their present situation. + +A consideration of the facts that the library of the Capitol has twice been +destroyed or damaged by fire, its daily increasing value, and its +importance as a place of deposit of books under the law relating to +copyright makes manifest the necessity of prompt action to insure its +proper accommodation and protection. + +My attention has been called to a controversy which has arisen from the +condition of the law relating to railroad facilities in the city of +Washington, which has involved the Commissioners of the District in much +annoyance and trouble. I hope this difficulty will be promptly settled by +appropriate legislation. + +The Commissioners represent that enough of the revenues of the District are +now on deposit in the Treasury of the United States to repay the sum +advanced by the Government for sewer improvements under the act of June 30, +1884. They desire now an advance of the share which ultimately should be +borne by the District of the cost of extensive improvements to the streets +of the city. The total expense of these contemplated improvements is +estimated at $1,000,000, and they are of the opinion that a considerable +sum could be saved if they had all the money in hand, so that contracts for +the whole work could be made at the same time. They express confidence that +if the advance asked for should be made the Government would be reimbursed +the same within a reasonable time. I have no doubt that these improvements +could be made much cheaper if undertaken together and prosecuted according +to a general plan. + +The license law now in force within the District is deficient and uncertain +in some of its provisions and ought to be amended. The Commissioners urge, +with good reason, the necessity of providing a building for the use of the +District government which shall better secure the safety and preservation +of its valuable books and records. + +The present condition of the law relating to the succession to the +Presidency in the event of the death, disability, or removal of both the +President and Vice-President is such as to require immediate amendment. +This subject has repeatedly been considered by Congress, but no result has +been reached. The recent lamentable death of the Vice-President, and +vacancies at the same time in all other offices the incumbents of which +might immediately exercise the functions of the presidential office, has +caused public anxiety and a just demand that a recurrence of such a +condition of affairs should not be permitted. + +In conclusion I commend to the wise care and thoughtful attention of +Congress the needs, the welfare, and the aspirations of an intelligent and +generous nation. To subordinate these to the narrow advantages of +partisanship or the accomplishment of selfish aims is to violate the +people's trust and betray the people's interests; but an individual sense +of responsibility on the part of each of us and a stern determination to +perform our duty well must give us place among those who have added in +their day and generation to the glory and prosperity of our beloved land. + +*** + +State of the Union Address +Grover Cleveland +December 6, 1886 + +To the Congress of the United States: + +In discharge of a constitutional duty, and following a well-established +precedent in the Executive office, I herewith transmit to the Congress at +its reassembling certain information concerning the state of the Union, +together with such recommendations for legislative consideration as appear +necessary and expedient. + +Our Government has consistently maintained its relations of friendship +toward all other powers and of neighborly interest toward those whose +possessions are contiguous to our own. Few questions have arisen during the +past year with other governments, and none of those are beyond the reach of +settlement in friendly counsel. + +We are as yet without provision for the settlement of claims of citizens of +the United States against Chile for injustice during the late war with Peru +and Bolivia. The mixed commissions organized under claims conventions +concluded by the Chilean Government with certain European States have +developed an amount of friction which we trust can be avoided in the +convention which our representative at Santiago is authorized to +negotiate. + +The cruel treatment of inoffensive Chinese has, I regret to say, been +repeated in some of the far Western States and Territories, and acts of +violence against those people, beyond the power of the local constituted +authorities to prevent and difficult to punish, are reported even in +distant Alaska. Much of this violence can be traced to race prejudice and +competition of labor, which can not, however, justify the oppression of +strangers whose safety is guaranteed by our treaty with China equally with +the most favored nations. + +In opening our vast domain to alien elements the purpose of our lawgivers +was to invite assimilation, and not to provide an arena for endless +antagonism. The paramount duty of maintaining public order and defending +the interests of our own people may require the adoption of measures of +restriction, but they should not tolerate the oppression of individuals of +a special race. I am not without assurance that the Government of China, +whose friendly disposition toward us I am most happy to recognize, will +meet us halfway in devising a comprehensive remedy by which an effective +limitation of Chinese emigration, joined to protection of those Chinese +subjects who remain in this country, may be secured. + +Legislation is needed to execute the provisions of our Chinese convention +of 1880 touching the opium traffic. + +While the good will of the Colombian Government toward our country is +manifest, the situation of American interests on the Isthmus of Panama has +at times excited concern and invited friendly action looking to the +performance of the engagements of the two nations concerning the territory +embraced in the interoceanic transit. With the subsidence of the Isthmian +disturbances and the erection of the State of Panama into a federal +district under the direct government of the constitutional administration +at Bogota, a new order of things has been inaugurated, which, although as +yet somewhat experimental and affording scope for arbitrary exercise of +power by the delegates of the national authority, promises much +improvement. + +The sympathy between the people of the United States and France, born +during our colonial struggle for independence and continuing today, has +received a fresh impulse in the successful completion and dedication of the +colossal statue of "Liberty Enlightening the World" in New York Harbor--the +gift of Frenchmen to Americans. + +A convention between the United States and certain other powers for the +protection of submarine cables was signed at Paris on March 14, 1884, and +has been duly ratified and proclaimed by this Government. By agreement +between the high contracting parties this convention is to go into effect +on the 1st of January next, but the legislation required for its execution +in the United States has not yet been adopted. I earnestly recommend its +enactment. + +Cases have continued to occur in Germany giving rise to much correspondence +in relation to the privilege of sojourn of our naturalized citizens of +German origin revisiting the land of their birth, yet I am happy to state +that our relations with that country have lost none of their accustomed +cordiality. + +The claims for interest upon the amount of tonnage dues illegally exacted +from certain German steamship lines were favorably reported in both Houses +of Congress at the last session, and I trust will receive final and +favorable action at an early day. + +The recommendations contained in my last annual message in relation to a +mode of settlement of the fishery rights in the waters of British North +America, so long a subject of anxious difference between the United States +and Great Britain, was met by an adverse vote of the Senate on April 13 +last, and thereupon negotiations were instituted to obtain an agreement +with Her Britannic Majesty's Government for the promulgation of such joint +interpretation and definition of the article of the convention of 1818 +relating to the territorial waters and inshore fisheries of the British +Provinces as should secure the Canadian rights from encroachment by the +United States fishermen and at the same time insure the enjoyment by the +latter of the privileges guaranteed to them by such convention. + +The questions involved are of long standing, of grave consequence, and from +time to time for nearly three-quarters of a century have given rise to +earnest international discussions, not unaccompanied by irritation. + +Temporary arrangements by treaties have served to allay friction, which, +however, has revived as each treaty was terminated. The last arrangement, +under the treaty of 1871, was abrogated after due notice by the United +States on June 30, 1885, but I was enabled to obtain for our fishermen for +the remainder of that season enjoyment of the full privileges accorded by +the terminated treaty. + +The joint high commission by whom the treaty had been negotiated, although +invested with plenary power to make a permanent settlement, were content +with a temporary arrangement, after the termination of which the question +was relegated to the stipulations of the treaty of 1818, as to the first +article of which no construction satisfactory to both countries has ever +been agreed upon. + +The progress of civilization and growth of population in the British +Provinces to which the fisheries in question are contiguous and the +expansion of commercial intercourse between them and the United States +present to-day a condition of affairs scarcely realizable at the date of +the negotiations of 1818. + +New and vast interests have been brought into existence; modes of +intercourse between the respective countries have been invented and +multiplied; the methods of conducting the fisheries have been wholly +changed; and all this is necessarily entitled to candid and careful +consideration in the adjustment of the terms and conditions of intercourse +and commerce between the United States and their neighbors along a frontier +of over 3,500 miles. + +This propinquity, community of language and occupation, and similarity of +political and social institutions indicate the practicability and obvious +wisdom of maintaining mutually beneficial and friendly relations. + +Whilst I am unfeignedly desirous that such relations should exist between +us and the inhabitants of Canada, yet the action of their officials during +the past season toward our fishermen has been such as to seriously threaten +their continuance. + +Although disappointed in my efforts to secure a satisfactory settlement of +the fishery question, negotiations are still pending, with reasonable hope +that before the close of the present session of Congress announcement may +be made that an acceptable conclusion has been reached. + +As at an early day there may be laid before Congress the correspondence of +the Department of State in relation to this important subject, so that the +history of the past fishing season may be fully disclosed and the action +and the attitude of the Administration clearly comprehended, a more +extended reference is not deemed necessary in this communication. + +The recommendation submitted last year that provision be made for a +preliminary reconnoissance of the conventional boundary line between Alaska +and British Columbia is renewed. + +I express my unhesitating conviction that the intimacy of our relations +with Hawaii should be emphasized. As a result of the reciprocity treaty of +1875, those islands, on the highway of Oriental and Australasian traffic, +are virtually an outpost of American commerce and a stepping-stone to the +growing trade of the Pacific. The Polynesian Island groups have been so +absorbed by other and more powerful governments that the Hawaiian Islands +are left almost alone in the enjoyment of their autonomy, which it is +important for us should be preserved. Our treaty is now terminable on one +year's notice, but propositions to abrogate it would be, in my judgment, +most ill advised. The paramount influence we have there acquired, once +relinquished, could only with difficulty be regained, and a valuable ground +of vantage for ourselves might be converted into a stronghold for our +commercial competitors. I earnestly recommend that the existing treaty +stipulations be extended for a further term of seven years. A recently +signed treaty to this end is now before the Senate. + +The importance of telegraphic communication between those islands and the +United States should not be overlooked. + +The question of a general revision of the treaties of Japan is again under +discussion at Tokyo. As the first to open relations with that Empire, and +as the nation in most direct commercial relations with Japan, the United +States have lost no opportunity to testify their consistent friendship by +supporting the just claims of Japan to autonomy and independence among +nations. + +A treaty of extradition between the United States and Japan, the first +concluded by that Empire, has been lately proclaimed. + +The weakness of Liberia and the difficulty of maintaining effective +sovereignty over its outlying districts have exposed that Republic to +encroachment. It can not be forgotten that this distant community is an +offshoot of our own system, owing its origin to the associated benevolence +of American citizens, whose praiseworthy efforts to create a nucleus of +civilization in the Dark Continent have commanded respect and sympathy +everywhere, especially in this country. Although a formal protectorate over +Liberia is contrary to our traditional policy, the moral right and duty of +the United States to assist in all proper ways in the maintenance of its +integrity is obvious, and has been consistently announced during nearly +half a century. I recommend that in the reorganization of our Navy a small +vessel, no longer found adequate to our needs, be presented to Liberia, to +be employed by it in the protection of its coastwise revenues. + +The encouraging development of beneficial and intimate relations between +the United States and Mexico, which has been so marked within the past few +years, is at once the occasion of congratulation and of friendly +solicitude. I urgently renew my former representation of the need or speedy +legislation by Congress to carry into effect the reciprocity commercial +convention of January 20, 1883. + +Our commercial treaty of 1831 with Mexico was terminated, according to its +provisions, in 1881, upon notification given by Mexico in pursuance of her +announced policy of recasting all her commercial treaties. Mexico has since +concluded with several foreign governments new treaties of commerce and +navigation, defining alien rights of trade, property, and residence, +treatment of shipping, consular privileges, and the like. Our yet +unexecuted reciprocity convention of 1883 covers none of these points, the +settlement of which is so necessary to good relationship. I propose to +initiate with Mexico negotiations for a new and enlarged treaty of commerce +and navigation. + +In compliance with a resolution of the Senate, I communicated to that body +on August 2 last, and also to the House of Representatives, the +correspondence in the case of A. K. Cutting, an American citizen, then +imprisoned in Mexico, charged with the commission of a penal offense in +Texas, of which a Mexican citizen was the object. + +After demand had been made for his release the charge against him was +amended so as to include a violation of Mexican law within Mexican +territory. + +This joinder of alleged offenses, one within and the other exterior to +Mexico, induced me to order a special investigation of the case, pending +which Mr. Cutting was released. + +The incident has, however, disclosed a claim of jurisdiction by Mexico +novel in our history, whereby any offense committed anywhere by a +foreigner, penal in the place of its commission, and of which a Mexican is +the object, may, if the offender be found in Mexico, be there tried and +punished in conformity with Mexican laws. + +This jurisdiction was sustained by the courts of Mexico in the Cutting +case, and approved by the executive branch of that Government, upon the +authority of a Mexican statute. The appellate court in releasing Mr. +Cutting decided that the abandonment of the complaint by the Mexican +citizen aggrieved by the alleged crime (a libelous publication) removed the +basis of further prosecution, and also declared justice to have been +satisfied by the enforcement of a small part of the original sentence. + +The admission of such a pretension would be attended with serious results, +invasive of the jurisdiction of this Government and highly dangerous to our +citizens in foreign lands. Therefore I have denied it and protested against +its attempted exercise as unwarranted by the principles of law and +international usages. + +A sovereign has jurisdiction of offenses which take effect within his +territory, although concocted or commenced outside of it; but the right is +denied of any foreign sovereign to punish a citizen of the United States +for an offense consummated on our soil in violation of our laws, even +though the offense be against a subject or citizen of such sovereign. The +Mexican statute in question makes the claim broadly, and the principle, if +conceded, would create a dual responsibility in the citizen and lead to +inextricable confusion, destructive of that certainty in the law which is +an essential of liberty. + +When citizens of the United States voluntarily go into a foreign country, +they must abide by the laws there in force, and will not be protected by +their own Government from the consequences of an offense against those laws +committed in such foreign country; but watchful care and interest of this +Government over its citizens are not relinquished because they have gone +abroad, and if charged with crime committed in the foreign land a fair and +open trial, conducted with decent regard for justice and humanity, will be +demanded for them. With less than that this Government will not be content +when the life or liberty of its citizens is at stake. + +Whatever the degree to which extraterritorial criminal jurisdiction may +have been formerly allowed by consent and reciprocal agreement among +certain of the European States, no such doctrine or practice was ever known +to the laws of this country or of that from which our institutions have +mainly been derived. + +In the case of Mexico there are reasons especially strong for perfect +harmony in the mutual exercise of jurisdiction. Nature has made us +irrevocably neighbors, and wisdom and kind feeling should make us friends. + +The overflow of capital and enterprise from the United States is a potent +factor in assisting the development of the resources of Mexico and in +building up the prosperity of both countries. + +To assist this good work all grounds of apprehension for the security of +person and property should be removed; and I trust that in the interests of +good neighborhood the statute referred to will be so modified as to +eliminate the present possibilities of danger to the peace of the two +countries. + +The Government of the Netherlands has exhibited concern in relation to +certain features of our tariff laws, which are supposed by them to be aimed +at a class of tobacco produced in the Dutch East Indies. Comment would seem +unnecessary upon the unwisdom of legislation appearing to have a special +national discrimination for its object, which, although unintentional, may +give rise to injurious retaliation. + +The establishment, less than four years ago, of a legation at Teheran is +bearing fruit in the interest exhibited by the Shah's Government in the +industrial activity of the United States and the opportunities of +beneficial interchanges. + +Stable government is now happily restored in Peru by the election of a +constitutional president, and a period of rehabilitation is entered upon; +but the recovery is necessarily slow from the exhaustion caused by the late +war and civil disturbances. A convention to adjust by arbitration claims of +our citizens has been proposed and is under consideration. + +The naval officer who bore to Siberia the testimonials bestowed by Congress +in recognition of the aid given to the Jeannette survivors has successfully +accomplished his mission. His interesting report will be submitted. It is +pleasant to know that this mark of appreciation has been welcomed by the +Russian Government and people as befits the traditional friendship of the +two countries. + +Civil perturbations in the Samoan Islands have during the past few years +been a source of considerable embarrassment to the three +Governments-Germany, Great Britain, and the United States--whose relations +and extraterritorial rights in that important group are guaranteed by +treaties. The weakness of the native administration and the conflict of +opposing interests in the islands have led King Malietoa to seek alliance +or protection in some one quarter, regardless of the distinct engagements +whereby no one of the three treaty powers may acquire any paramount or +exclusive interest. In May last Malietoa offered to place Samoa under the +protection of the United States, and the late consul, without authority, +assumed to grant it. The proceeding was promptly disavowed and the +overzealous official recalled. Special agents of the three Governments have +been deputed to examine the situation in the islands. With a change in the +representation of all three powers and a harmonious understanding between +them, the peace, prosperity, autonomous administration, and neutrality of +Samoa can hardly fail to be secured. + +It appearing that the Government of Spain did not extend to the flag of the +United States in the Antilles the full measure of reciprocity requisite +under our statute for the continuance of the suspension of discriminations +against the Spanish flag in our ports, I was constrained in October last to +rescind my predecessor's proclamation of February 14, 1884, permitting such +suspension. An arrangement was, however, speedily reached, and upon +notification from the Government of Spain that all differential treatment +of our vessels and their cargoes, from the United States or from any +foreign country, had been completely and absolutely relinquished, I availed +myself of the discretion conferred by law and issued on the 27th of October +my proclamation declaring reciprocal suspension in the United States. It is +most gratifying to bear testimony to the earnest spirit in which the +Government of the Queen Regent has met our efforts to avert the initiation +of commercial discriminations and reprisals, which are ever disastrous to +the material interests and the political good will of the countries they +may affect. + +The profitable development of the large commercial exchanges between the +United States and the Spanish Antilles is naturally an object of +solicitude. Lying close at our doors, and finding here their main markets +of supply and demand, the welfare of Cuba and Puerto Rico and their +production and trade are scarcely less important to us than to Spain. Their +commercial and financial movements are so naturally a part of our system +that no obstacle to fuller and freer intercourse should be permitted to +exist. The standing instructions of our representatives at Madrid and +Havana have for years been to leave no effort unessayed to further these +ends, and at no time has the equal good desire of Spain been more hopefully +manifested than now. + +The Government of Spain, by removing the consular tonnage fees on cargoes +shipped to the Antilles and by reducing passport fees, has shown its +recognition of the needs of less trammeled intercourse. + +An effort has been made during the past year to remove the hindrances to +the proclamation of the treaty of naturalization with the Sublime Porte, +signed in 1874, which has remained inoperative owing to a disagreement of +interpretation of the clauses relative to the effects of the return to and +sojourn of a naturalized citizen in the land of origin. I trust soon to be +able to announce a favorable settlement of the differences as to this +interpretation. + +It has been highly satisfactory to note the improved treatment of American +missionaries in Turkey, as has been attested by their acknowledgments to +our late minister to that Government of his successful exertions in their +behalf. + +The exchange of ratifications of the convention of December 5, 1885, with +Venezuela, for the reopening of the awards of the Caracas Commission under +the claims convention of 1866, has not yet been effected, owing to the +delay of the Executive of that Republic in ratifying the measure. I trust +that this postponement will be brief; but should it much longer continue, +the delay may well be regarded as a rescission of the compact and a failure +on the part of Venezuela to complete an arrangement so persistently sought +by her during many years and assented to by this Government in a spirit of +international fairness, although to the detriment of holders of bona fide +awards of the impugned commission. + +I renew the recommendation of my last annual message that existing +legislation concerning citizenship and naturalization be revised. We have +treaties with many states providing for the renunciation of citizenship by +naturalized aliens, but no statute is found to give effect to such +engagements, nor any which provides a needed central bureau for the +registration of naturalized citizens. + +Experience suggests that our statutes regulating extradition might be +advantageously amended by a provision for the transit across our territory, +now a convenient thoroughfare of travel from one foreign country to +another, of fugitives surrendered by a foreign government to a third state. +Such provisions are not unusual in the legislation of other countries, and +tend to prevent the miscarriage of justice. It is also desirable, in order +to remove present uncertainties, that authority should be conferred on the +Secretary of State to issue a certificate, in case of an arrest for the +purpose of extradition, to the officer before whom the proceeding is +pending, showing that a requisition for the surrender of the person charged +has been duly made. Such a certificate, if required to be received before +the prisoner's examination, would prevent a long and expensive judicial +inquiry into a charge which the foreign government might not desire to +press. I also recommend that express provision be made for the immediate +discharge from custody of persons committed for extradition where the +President is of opinion that surrender should not be made. + +The drift of sentiment in civilized communities toward full recognition of +the rights of property in the creations of the human intellect has brought +about the adoption by many important nations of an international copyright +convention, which was signed at Berne on the 18th of September, 1885. + +Inasmuch as the Constitution gives to the Congress the power "to promote +the progress of science and useful arts by securing for limited times to +authors and inventors the exclusive right to their respective writings and +discoveries," this Government did not feel warranted in becoming a +signatory pending the action of Congress upon measures of international +copyright now before it; but the right of adhesion to the Berne convention +hereafter has been reserved. I trust the subject will receive at your hands +the attention it deserves, and that the just claims of authors, so urgently +pressed, will be duly heeded. + +Representations continue to be made to me of the injurious effect upon +American artists studying abroad and having free access to the art +collections of foreign countries of maintaining a discriminating duty +against the introduction of the works of their brother artists of other +countries, and I am induced to repeat my recommendation for the abolition +of that tax. + +Pursuant to a provision of the diplomatic and consular appropriation act +approved July 1, 1886, the estimates submitted by the Secretary of State +for the maintenance of the consular service have been recast on the basis +of salaries for all officers to whom such allowance is deemed advisable. +Advantage has been taken of this to redistribute the salaries of the +offices now appropriated for, in accordance with the work performed, the +importance of the representative duties of the incumbent, and the cost of +living at each post. The last consideration has been too often lost sight +of in the allowances heretofore made. The compensation which may suffice +for the decent maintenance of a worthy and capable officer in a position of +onerous and representative trust at a post readily accessible, and where +the necessaries of life are abundant and cheap, may prove an inadequate +pittance in distant lands, where the better part of a year's pay is +consumed in reaching the post of duty, and where the comforts of ordinary +civilized existence can only be obtained with difficulty and at exorbitant +cost. I trust that in considering the submitted schedules no mistaken +theory of economy will perpetuate a system which in the past has virtually +closed to deserving talent many offices where capacity and attainments of a +high order are indispensable, and in not a few instances has brought +discredit on our national character and entailed embarrassment and even +suffering on those deputed to uphold our dignity and interests abroad. + +In connection with this subject I earnestly reiterate the practical +necessity of supplying some mode of trustworthy inspection and report of +the manner in which the consulates are conducted. In the absence of such +reliable information efficiency can scarcely be rewarded or its opposite +corrected. + +Increasing competition in trade has directed attention to the value of the +consular reports printed by the Department of State, and the efforts of the +Government to extend the practical usefulness of these reports have created +a wider demand for them at home and a spirit of emulation abroad. +Constituting a record at the changes occurring in trade and of the progress +of the arts and invention in foreign countries, they are much sought for by +all interested in the subjects which they embrace. + +The report of the Secretary of the Treasury exhibits in detail the +condition of the public finances and of the several branches of the +Government related to his Department. I especially direct the attention of +the Congress to the recommendations contained in this and the last +preceding report of the Secretary touching the simplification and amendment +of the laws relating to the collection of our revenues, and in the interest +of economy and justice to the Government I hope they may be adopted by +appropriate legislation. + +The ordinary receipts of the Government for the fiscal year ended June 30, +1886, were $336,439,727.06. Of this amount $192,905,023.41 was received +from customs and $116,805,936.48 from internal revenue. The total receipts, +as here stated, were $13,749,020.68 greater than for the previous year, but +the increase from customs was $11,434,084.10 and from internal revenue +$4,407,210.94, making a gain in these items for the last year of +$15,841,295.04, a falling off in other resources reducing the total +increase to the smaller amount mentioned. + +The expense at the different custom-houses of collecting this increased +customs revenue was less than the expense attending the collection of such +revenue for the preceding year by $490,608, and the increased receipts of +internal revenue were collected at a cost to the Internal-Revenue Bureau +$155,944.99 less than the expense of such collection for the previous +year. + +The total ordinary expenses of the Government for the fiscal year ended +June 30, 1886, were $242,483,138.50, being less by $17,788,797 than such +expenditures for the year preceding, and leaving a surplus in the Treasury +at the close of the last fiscal year of $93,956,588.56, as against +$63,463,771.27 at the close of the previous year, being an increase in such +surplus of $30,492,817.29. + +The expenditures are compared with those of the preceding fiscal year and +classified as follows: + +For the current year to end June 30, 1887, the ascertained receipts up to +October 1, 1886, with such receipts estimated for the remainder of the +year, amount to $356,000,000. + +The expenditures ascertained and estimated for the same period are +$266,000,000, indicating an anticipated surplus at the close of the year of +$90,000,000. + +The total value of the exports from the United States to foreign countries +during the fiscal year is stated and compared with the preceding year as +follows: + +The value of some of our leading exports during the last fiscal year, as +compared with the value of the same for the year immediately preceding, is +here given, and furnishes information both interesting and suggestive: + +Our imports during the last fiscal year, as compared with the previous +year, were as follows: + +In my last annual message to the Congress attention was directed to the +fact that the revenues of the Government exceeded its actual needs, and it +was suggested that legislative action should be taken to relieve the people +from the unnecessary burden of taxation thus made apparent. + +In view of the pressing importance of the subject I deem it my duty to +again urge its consideration. + +The income of the Government, by its increased volume and through economies +in its collection, is now more than ever in excess of public necessities. +The application of the surplus to the payment of such portion of the public +debt as is now at our option subject to extinguishment, if continued at the +rate which has lately prevailed, would retire that class of indebtedness +within less than one year from this date. Thus a continuation of our +present revenue system would soon result in the receipt of an annual income +much greater than necessary to meet Government expenses, with no +indebtedness upon which it could be applied. We should then be confronted +with a vast quantity of money, the circulating medium of the people, +hoarded in the Treasury when it should be in their hands, or we should be +drawn into wasteful public extravagance, with all the corrupting national +demoralization which follows in its train. + +But it is not the simple existence of this surplus and its threatened +attendant evils which furnish the strongest argument against our present +scale of Federal taxation. Its worst phase is the exaction of such a +surplus through a perversion of the relations between the people and their +Government and a dangerous departure from the rules which limit the right +of Federal taxation. + +Good government, and especially the government of which every American +citizen boasts, has for its objects the protection of every person within +its care in the greatest liberty consistent with the good order of society +and his perfect security in the enjoyment of his earnings with the least +possible diminution for public needs. When more of the people's substance +is exacted through the form of taxation than is necessary to meet the just +obligations of the Government and the expense of its economical +administration, such exaction becomes ruthless extortion and a violation of +the fundamental principles of a free government. + +The indirect manner in which these exactions are made has a tendency to +conceal their true character and their extent. But we have arrived at a +stage of superfluous revenue which has aroused the people to a realization +of the fact that the amount raised professedly for the support of the +Government is paid by them as absolutely if added to the price of the +things which supply their daily wants as if it was paid at fixed periods +into the hand of the tax gatherer. + +Those who toil for daily wages are beginning to understand that capital, +though sometimes vaunting its importance and clamoring for the protection +and favor of the Government, is dull and sluggish till, touched by the +magical hand of labor, it springs into activity, furnishing an occasion for +Federal taxation and gaining the value which enables it to bear its burden. +And the laboring man is thoughtfully inquiring whether in these +circumstances, and considering the tribute he constantly pays into the +public Treasury as he supplies his daily wants, he receives his fair share +of advantages. + +There is also a suspicion abroad that the surplus of our revenues indicates +abnormal and exceptional business profits, which, under the system which +produces such surplus, increase without corresponding benefit to the people +at large the vast accumulations of a few among our citizens, whose +fortunes, rivaling the wealth of the most favored in antidemocratic +nations, are not the natural growth of a steady, plain, and industrious +republic. + +Our farmers, too, and those engaged directly and indirectly in supplying +the products of agriculture, see that day by day, and as often as the daily +wants of their households recur, they are forced to pay excessive and +needless taxation, while their products struggle in foreign markets with +the competition of nations, which, by allowing a freer exchange of +productions than we permit, enable their people to sell for prices which +distress the American farmer. + +As every patriotic citizen rejoices in the constantly increasing pride of +our people in American citizenship and in the glory of our national +achievements and progress, a sentiment prevails that the leading strings +useful to a nation in its infancy may well be to a great extent discarded +in the present stage of American ingenuity, courage, and fearless +self-reliance; and for the privilege of indulging this sentiment with true +American enthusiasm our citizens are quite willing to forego an idle +surplus in the public Treasury. + +And all the people know that the average rate of Federal taxation upon +imports is to-day, in time of peace, but little less, while upon some +articles of necessary consumption it is actually more, than was imposed by +the grievous burden willingly borne at a time when the Government needed +millions to maintain by war the safety and integrity of the Union. + +It has been the policy of the Government to collect the principal part of +its revenues by a tax upon imports, and no change in this policy is +desirable. But the present condition of affairs constrains our people to +demand that by a revision of our revenue laws the receipts of the +Government shall be reduced to the necessary expense of its economical +administration; and this demand should be recognized and obeyed by the +people's representatives in the legislative branch of the Government. + +In readjusting the burdens of Federal taxation a sound public policy +requires that such of our citizens as have built up large and important +industries under present conditions should not be suddenly and to their +injury deprived of advantages to which they have adapted their business; +but if the public good requires it they should be content with such +consideration as shall deal fairly and cautiously with their interests, +while the just demand of the people for relief from needless taxation is +honestly answered. + +A reasonable and timely submission to such a demand should certainly be +possible without disastrous shock to any interest; and a cheerful +concession sometimes averts abrupt and heedless action, often the outgrowth +of impatience and delayed justice. + +Due regard should be also accorded in any proposed readjustment to the +interests of American labor so far as they are involved. We congratulate +ourselves that there is among us no laboring class fixed within unyielding +bounds and doomed under all conditions to the inexorable fate of daily +toil. We recognize in labor a chief factor in the wealth of the Republic, +and we treat those who have it in their keeping as citizens entitled to the +most careful regard and thoughtful attention. This regard and attention +should be awarded them, not only because labor is the capital of our +workingmen, justly entitled to its share of Government favor, but for the +further and not less important reason that the laboring man, surrounded by +his family in his humble home, as a consumer is vitally interested in all +that cheapens the cost of living and enables him to bring within his +domestic circle additional comforts and advantages. + +This relation of the workingman to the revenue laws of the country and the +manner in which it palpably influences the question of wages should not be +forgotten in the justifiable prominence given to the proper maintenance of +the supply and protection of well-paid labor. And these considerations +suggest such an arrangement of Government revenues as shall reduce the +expense of living, while it does not curtail the opportunity for work nor +reduce the compensation of American labor and injuriously affect its +condition and the dignified place it holds in the estimation of our +people. + +But our farmers and agriculturists--those who from the soil produce the +things consumed by all--are perhaps more directly and plainly concerned +than any other of our citizens in a just and careful system of Federal +taxation. Those actually engaged in and more remotely connected with this +kind of work number nearly one-half of our population. None labor harder or +more continuously than they. No enactments limit their hours of toil and no +interposition of the Government enhances to any great extent the value of +their products. And yet for many of the necessaries and comforts of life, +which the most scrupulous economy enables them to bring into their homes, +and for their implements of husbandry, they are obliged to pay a price +largely increased by an unnatural profit, which by the action of the +Government is given to the more favored manufacturer. + +I recommend that, keeping in view all these considerations, the increasing +and unnecessary surplus of national income annually accumulating be +released to the people by an amendment to our revenue laws which shall +cheapen the price of the necessaries of life and give freer entrance to +such imported materials as by American labor may be manufactured into +marketable commodities. + +Nothing can be accomplished, however, in the direction of this much-needed +reform unless the subject is approached in a patriotic spirit of devotion +to the interests of the entire country and with a willingness to yield +something for the public good. + +The sum paid upon the public debt during the fiscal year ended June 30, +1886, was $44,551,043.36. + +During the twelve months ended October 31,1886, 3 per cent bonds were +called for redemption amounting to $127,283,100, of which $80,643,200 was +so called to answer the requirements of the law relating to the sinking +fund and $46,639,900 for the purpose of reducing the public debt by +application of a part of the surplus in the Treasury to that object. Of the +bonds thus called $102,269,450 became subject under such calls to +redemption prior to November 1, 1886. The remainder, amounting +to$25,013,650, matured under the calls after that date. + +In addition to the amount subject to payment and cancellation prior to +November 1, there were also paid before that day certain of these bonds, +with the interest thereon, amounting to $5,072,350, which were anticipated +as to their maturity, of which $2,664,850 had not been called, Thus +$107,341,800 had been actually applied prior to the 1st of November, 1886, +to the extinguishment of our bonded and interest-bearing debt, leaving on +that day still outstanding the sum of $1,153,443,112. Of this amount +$86,848,700 were still represented by 3 per cent bonds. They however, have +been since November 1, or will at once be, further reduced by $22,606,150, +being bonds which have been called, as already stated, but not redeemed and +canceled before the latter date. + +During the fiscal year ended June 30, 1886, there were coined, under the +compulsory silver-coinage act of 1878,29,838,905 silver dollars, and the +cost of the silver used in such coinage was $23,448,960.01. There had been +coined up to the close of the previous fiscal year under the provisions of +the law 203,882,554 silver dollars, and on the 1st day of December, 1886, +the total amount of such coinage was $247,131,549. + +The Director of the Mint reports that at the time of the passage of the law +of 1878 directing this coinage the intrinsic value of the dollars thus +coined was 94 1/4 cents each, and that on the 31st day of July, 1886, the +price of silver reached the lowest stage ever known, so that the intrinsic +or bullion price of our standard silver dollar at that date was less than +72 cents. The price of silver on the 30th day of November last was such as +to make these dollars intrinsically worth 78 cents each. + +These differences in value of the coins represent the fluctuations in the +price of silver, and they certainly do not indicate that compulsory coinage +by the Government enhances the price of that commodity or secures +uniformity in its value. + +Every fair and legal effort has been made by the Treasury Department to +distribute this currency among the people. The withdrawal of United States +Treasury notes of small denominations and the issuing of small silver +certificates have been resorted to in the endeavor to accomplish this +result, in obedience to the will and sentiments of the representatives of +the people in the Congress. On the 27th day of November, 1886, the people +held of these coins, or certificates representing them, the nominal sum of +$166,873,041, and we still had $79,464,345 in the Treasury as against about +$142,894,055 so in the hands of the people and $72,865,376 remaining in the +Treasury one year ago. The Director of the Mint again urges the necessity +of more vault room for the purpose of storing these silver dollars which +are not needed for circulation by the people. + +I have seen no reason to change the views expressed in my last annual +message on the subject of this compulsory coinage, and I again urge its +suspension on all the grounds contained in my former recommendation, +reenforced by the significant increase of our gold exportations during the +last year, as appears by the comparative statement herewith presented, and +for the further reasons that the more this currency is distributed among +the people the greater becomes our duty to protect it from disaster, that +we now have abundance for all our needs, and that there seems but little +propriety in building vaults to store such currency when the only pretense +for its coinage is the necessity of its use by the people as a circulating +medium. + +The great number of suits now pending in the United States courts for the +southern district of New York growing out of the collection of customs +revenue at the port of New York and the number of such suits that are +almost daily instituted are certainly worthy the attention of the Congress. +These legal controversies, based upon conflicting views by importers and +the collector as to the interpretation of our present complex and +indefinite revenue laws, might be largely obviated by an amendment of those +laws. + +But pending such amendment the present condition of this litigation should +be relieved. There are now pending about 2,500 of these suits. More than +1,100 have been commenced within the past eighteen months, and many of the +others have been at issue for more than twenty-five years. These delays +subject the Government to loss of evidence and prevent the preparation +necessary to defeat unjust and fictitious claims, while constantly accruing +interest threatens to double the demands involved. + +In the present condition of the dockets of the courts, well filled with +private suits, and of the force allowed the district attorney, no greater +than is necessary for the ordinary and current business of his office, +these revenue litigations can not be considered. + +In default of the adoption by the Congress of a plan for the general +reorganization of the Federal courts, as has been heretofore recommended, I +urge the propriety of passing a law permitting the appointment of an +additional Federal judge in the district where these Government suits have +accumulated, so that by continuous sessions of the courts devoted to the +trial of these cases they may be determined. + +It is entirely plain that a great saving to the Government would be +accomplished by such a remedy, and the suitors who have honest claims would +not be denied justice through delay. + +The report of the Secretary of War gives a detailed account of the +administration of his Department and contains sundry recommendations for +the improvement of the service, which I fully approve. + +The Army consisted at the date of the last consolidated return of 2,103 +officers and 24,946 enlisted men. + +The expenses of the Department for the last fiscal year were +$36,990,903.38, including $6,294,305.43 for public works and river and +harbor improvements. + +I especially direct the attention of the Congress to the recommendation +that officers be required to submit to an examination as a preliminary to +their promotion. I see no objection, but many advantages, in adopting this +feature, which has operated so beneficially in our Navy Department, as well +as in some branches of the Army. + +The subject of coast defenses and fortifications has been fully and +carefully treated by the Board on Fortifications, whose report was +submitted at the last session of Congress; but no construction work of the +kind recommended by the board has been possible during the last year from +the lack of appropriations for such purpose. + +The defenseless condition of our seacoast and lake frontier is perfectly +palpable. The examinations made must convince us all that certain of our +cities named in the report of the board should be fortified and that work +on the most important of these fortifications should be commenced at once. +The work has been thoroughly considered and laid out, the Secretary of War +reports, but all is delayed in default of Congressional action. + +The absolute necessity, judged by all standards of prudence and foresight, +of our preparation for an effectual resistance against the armored ships +and steel guns and mortars of modern construction which may threaten the +cities on our coasts is so apparent that I hope effective steps will be +taken in that direction immediately. + +The valuable and suggestive treatment of this question by the Secretary of +War is earnestly commended to the consideration of the Congress. + +In September and October last the hostile Apaches who, under the leadership +of Geronimo, had for eighteen months been on the war path, and during that +time had committed many murders and been the cause of constant terror to +the settlers of Arizona, surrendered to General Miles, the military +commander who succeeded General Crook in the management and direction of +their pursuit. + +Under the terms of their surrender as then reported, and in view of the +understanding which these murderous savages seemed to entertain of the +assurances given them, it was considered best to imprison them in such +manner as to prevent their ever engaging in such outrages again, instead of +trying them for murder. Fort Pickens having been selected as a safe place +of confinement, all the adult males were sent thither and will be closely +guarded as prisoners. In the meantime the residue of the band, who, though +still remaining upon the reservation, were regarded as unsafe and suspected +of furnishing aid to those on the war path, had been removed to Fort +Marion. The women and larger children of the hostiles were also taken +there, and arrangements have been made for putting the children of proper +age in Indian schools. + +The report of the Secretary of the Navy contains a detailed exhibit of the +condition of his Department, with such a statement of the action needed to +improve the same as should challenge the earnest attention of the +Congress. + +The present Navy of the United States, aside from the ships in course of +construction, consists of-- + +First. Fourteen single-turreted monitors, none of which are in commission +nor at the present time serviceable. The batteries of these ships are +obsolete, and they can only be relied upon as auxiliary ships in harbor +defense, and then after such an expenditure upon them as might not be +deemed justifiable. + +Second. Five fourth-rate vessels of small tonnage, only one of which was +designed as a war vessel, and all of which are auxiliary merely. + +Third. Twenty-seven cruising ships, three of which are built of iron, of +small tonnage, and twenty-four of wood. Of these wooden vessels it is +estimated by the Chief Constructor of the Navy that only three will be +serviceable beyond a period of six years, at which time it may be said that +of the present naval force nothing worthy the name will remain. + +All the vessels heretofore authorized are under contract or in course of +construction except the armored ships, the torpedo and dynamite boats, and +one cruiser. As to the last of these, the bids were in excess of the limit +fixed by Congress. The production in the United States of armor and gun +steel is a question which it seems necessary to settle at an early day if +the armored war vessels are to be completed with those materials of home +manufacture. This has been the subject of investigation by two boards and +by two special committees of Congress within the last three years. The +report of the Gun Foundry Board in 1884, of the Board on Fortifications +made in January last, and the reports of the select committees of the two +Houses made at the last session of Congress have entirely exhausted the +subject, so far as preliminary investigation is involved, and in their +recommendations they are substantially agreed. + +In the event that the present invitation of the Department for bids to +furnish such of this material as is now authorized shall fail to induce +domestic manufacturers to undertake the large expenditures required to +prepare for this new manufacture, and no other steps are taken by Congress +at its coming session, the Secretary contemplates with dissatisfaction the +necessity of obtaining abroad the armor and the gun steel for the +authorized ships. It would seem desirable that the wants of the Army and +the Navy in this regard should be reasonably met, and that by uniting their +contracts such inducement might be offered as would result in securing the +domestication of these important interests. + +The affairs of the postal service show marked and gratifying improvement +during the past year. A particular account of its transactions and +condition is given in the report of the Postmaster-General, which will be +laid before you. + +The reduction of the rate of letter postage in 1883, rendering the postal +revenues inadequate to sustain the expenditures, and business depression +also contributing, resulted in an excess of cost for the fiscal year ended +June 30, 1885, of eight and one-third millions of dollars. An additional +check upon receipts by doubling the measure of weight in rating sealed +correspondence and diminishing one-half the charge for newspaper carriage +was imposed by legislation which took effect with the beginning of the past +fiscal year, while the constant demand of our territorial development and +growing population for the extension and increase of mail facilities and +machinery necessitates steady annual advance in outlay, and the careful +estimate of a year ago upon the rates of expenditure then existing +contemplated the unavoidable augmentation of the deficiency in the last +fiscal year by nearly $2,000,000. The anticipated revenue for the last year +failed of realization by about $64,000, but proper measures of economy have +so satisfactorily limited the growth of expenditure that the total +deficiency in fact fell below that of 1885, and at this time the increase +of revenue is in a gaining ratio over the increase of cost, demonstrating +the sufficiency of the present rates of postage ultimately to sustain the +service. This is the more pleasing because our people enjoy now both +cheaper postage proportionably to distances and a vaster and more costly +service than any other upon the globe. + +Retrenchment has been effected in the cost of supplies, some expenditures +unwarranted by law have ceased, and the outlays for mail carriage have been +subjected to beneficial scrutiny. At the close of the last fiscal year the +expense of transportation on star routes stood at an annual rate of cost +less by over $560,000 than at the close of the previous year and steamboat +and mail-messenger service at nearly $200,000 less. + +The service has been in the meantime enlarged and extended by the +establishment of new offices, increase of routes of carriage, expansion of +carrier-delivery conveniences, and additions to the railway mail +facilities, in accordance with the growing exigencies of the country and +the long-established policy of the Government. + +The Postmaster-General calls attention to the existing law for compensating +railroads and expresses the opinion that a method may be devised which will +prove more just to the carriers and beneficial to the Government; and the +subject appears worthy of your early consideration. + +The differences which arose during the year with certain of the ocean +steamship companies have terminated by the acquiescence of all in the +policy of the Government approved by the Congress in the postal +appropriation at its last session, and the Department now enjoys the utmost +service afforded by all vessels which sail from our ports upon either +ocean--a service generally adequate to the needs of our intercourse. +Petitions have, however, been presented to the Department by numerous +merchants and manufacturers for the establishment of a direct service to +the Argentine Republic and for semimonthly dispatches to the Empire of +Brazil, and the subject is commended to your consideration. It is an +obvious duty to provide the means of postal communication which our +commerce requires, and with prudent forecast of results the wise extension +of it may lead to stimulating intercourse and become the harbinger of a +profitable traffic which will open new avenues for the disposition of the +products of our industry. The circumstances of the countries at the far +south of our continent are such as to invite our enterprise and afford the +promise of sufficient advantages to justify an unusual effort to bring +about the closer relations which greater freedom of communication would +tend to establish. + +I suggest that, as distinguished from a grant or subsidy for the mere +benefit of any line of trade or travel, whatever outlay may be required to +secure additional postal service, necessary and proper and not otherwise +attainable, should be regarded as within the limit of legitimate +compensation for such service. + +The extension of the free-delivery service as suggested by the +Postmaster-General has heretofore received my sanction, and it is to be +hoped a suitable enactment may soon be agreed upon. + +The request for an appropriation sufficient to enable the general +inspection of fourth-class offices has my approbation. + +I renew my approval of the recommendation of the Postmaster-General that +another assistant be provided for the Post-Office Department, and I invite +your attention to the several other recommendations in his report. + +The conduct of the Department of Justice for the last fiscal year is fully +detailed in the report of the Attorney-General, and I invite the earnest +attention of the Congress to the same and due consideration of the +recommendations therein contained. + +In the report submitted by this officer to the last session of the Congress +he strongly recommended the erection of a penitentiary for the confinement +of prisoners convicted and sentenced in the United States courts, and he +repeats the recommendation in his report for the last year. + +This is a matter of very great importance and should at once receive +Congressional action. United States prisoners are now confined in more than +thirty different State prisons and penitentiaries scattered in every part +of the country. They are subjected to nearly as many different modes of +treatment and discipline and are far too much removed from the control and +regulation of the Government. So far as they are entitled to humane +treatment and an opportunity for improvement and reformation, the +Government is responsible to them and society that these things are +forthcoming. But this duty can scarcely be discharged without more absolute +control and direction than is possible under the present system. + +Many of our good citizens have interested themselves, with the most +beneficial results, in the question of prison reform. The General +Government should be in a situation, since there must be United States +prisoners, to furnish important aid in this movement, and should be able to +illustrate what may be practically done in the direction of this reform and +to present an example in the treatment and improvement of its prisoners +worthy of imitation. + +With prisons under its own control the Government could deal with the +somewhat vexed question of convict labor, so far as its convicts were +concerned, according to a plan of its own adoption, and with due regard to +the rights and interests of our laboring citizens, instead of sometimes +aiding in the operation of a system which causes among them irritation and +discontent. + +Upon consideration of this subject it might be thought wise to erect more +than one of these institutions, located in such places as would best +subserve the purposes of convenience and economy in transportation. The +considerable cost of maintaining these convicts as at present, in State +institutions, would be saved by the adoption of the plan proposed, and by +employing them in the manufacture of such articles as were needed for use +by the Government quite a large pecuniary benefit would be realized in +partial return for our outlay. + +I again urge a change in the Federal judicial system to meet the wants of +the people and obviate the delays necessarily attending the present +condition of affairs in our courts. All are agreed that something should be +done, and much favor is shown by those well able to advise to the plan +suggested by the Attorney-General at the last session of the Congress and +recommended in my last annual message. This recommendation is here renewed, +together with another made at the same time, touching a change in the +manner of compensating district attorneys and marshals; and the latter +subject is commended to the Congress for its action in the interest of +economy to the Government, and humanity, fairness, and justice to our +people. + +The report of the Secretary of the Interior presents a comprehensive +summary of the work of the various branches of the public service connected +with his Department, and the suggestions and recommendations which it +contains for the improvement of the service should receive your careful +consideration. + +The exhibit made of the condition of our Indian population and the progress +of the work for their enlightenment, notwithstanding the many +embarrassments which hinder the better administration of this important +branch of the service, is a gratifying and hopeful one. + +The funds appropriated for the Indian service for the fiscal year just +passed, with the available income from Indian land and trust moneys, +amounting in all to $7,850,775.12, were ample for the service under the +conditions and restrictions of laws regulating their expenditure. There +remained a balance on hand on June 30, 1886, of $1,660,023.30, of which $ +1,337,768.21 are permanent funds for fulfillment of treaties and other like +purposes, and the remainder, $322,255.09, is subject to be carried to the +surplus fund as required by law. + +The estimates presented for appropriations for the ensuing fiscal year +amount to $5,608,873.64, or $442,386.20 less than those laid before the +Congress last year. + +The present system of agencies, while absolutely necessary and well adapted +for the management of our Indian affairs and for the ends in view when it +was adopted, is in the present stage of Indian management inadequate, +standing alone, for the accomplishment of an object which has become +pressing in its importance--the more rapid transition from tribal +organizations to citizenship of such portions of the Indians as are capable +of civilized life. + +When the existing system was adopted, the Indian race was outside of the +limits of organized States and Territories and beyond the immediate reach +and operation of civilization, and all efforts were mainly directed to the +maintenance of friendly relations and the preservation of peace and quiet +on the frontier. All this is now changed. There is no such thing as the +Indian frontier. Civilization, with the busy hum of industry and the +influences of Christianity, surrounds these people at every point. None of +the tribes are outside of the bounds of organized government and society, +except that the Territorial system has not been extended over that portion +of the country known as the Indian Territory. As a race the Indians are no +longer hostile, but may be considered as submissive to the control of the +Government. Few of them only are troublesome. Except the fragments of +several bands, all are now gathered upon reservations. + +It is no longer possible for them to subsist by the chase and the +spontaneous productions of the earth. + +With an abundance of land, if furnished with the means and implements for +profitable husbandry, their life of entire dependence upon Government +rations from day to day is no longer defensible. Their inclination, long +fostered by a defective system of control, is to cling to the habits and +customs of their ancestors and struggle with persistence against the change +of life which their altered circumstances press upon them. But barbarism +and civilization can not live together. It is impossible that such +incongruous conditions should coexist on the same soil. + +They are a portion of our people, are under the authority of our +Government, and have a peculiar claim upon and are entitled to the +fostering care and protection of the nation. The Government can not relieve +itself of this responsibility until they are so far trained and civilized +as to be able wholly to manage and care for themselves. The paths in which +they should walk must be clearly marked out for them, and they must be led +or guided until they are familiar with the way and competent to assume the +duties and responsibilities of our citizenship. + +Progress in this great work will continue only at the present slow pace and +at great expense unless the system and methods of management are improved +to meet the changed conditions and urgent demands of the service. + +The agents, having general charge and supervision in many cases of more +than 5,000 Indians, scattered over large reservations, and burdened with +the details of accountability for funds and supplies, have time to look +after the industrial training and improvement of a few Indians only. The +many are neglected and remain idle and dependent, conditions not favorable +for progress and civilization. + +The compensation allowed these agents and the conditions of the service are +not calculated to secure for the work men who are fitted by ability and +skill to properly plan and intelligently direct the methods best adapted to +produce the most speedy results and permanent benefits. + +Hence the necessity for a supplemental agency or system directed to the end +of promoting the general and more rapid transition of the tribes from +habits and customs of barbarism to the ways of civilization. + +With an anxious desire to devise some plan of operation by which to secure +the welfare of the Indians and to relieve the Treasury as far as possible +from the support of an idle and dependent population, I recommended in my +previous annual message the passage of a law authorizing the appointment of +a commission as an instrumentality auxiliary to those already established +for the care of the Indians. It was designed that this commission should be +composed of six intelligent and capable persons--three to be detailed from +the Army--having practical ideas upon the subject of the treatment of +Indians and interested in their welfare, and that it should be charged, +under the direction of the Secretary of the Interior, with the management +of such matters of detail as can not with the present organization be +properly and successfully conducted, and which present different phases, as +the Indians themselves differ in their progress, needs, disposition, and +capacity for improvement or immediate self-support. + +By the aid of such a commission much unwise and useless expenditure of +money, waste of materials, and unavailing efforts might be avoided; and it +is hoped that this or some measure which the wisdom of Congress may better +devise to supply the deficiency of the present system may receive your +consideration and the appropriate legislation be provided. + +The time is ripe for the work of such an agency. + +There is less opposition to the education and training of the Indian youth, +as shown by the increased attendance upon the schools, and there is a +yielding tendency for the individual holding of lands. Development and +advancement in these directions are essential, and should have every +encouragement. As the rising generation are taught the language of +civilization and trained in habits of industry they should assume the +duties, privileges, and responsibilities of citizenship. + +No obstacle should hinder the location and settlement of any Indian willing +to take land in severalty; on the contrary, the inclination to do so should +be stimulated at all times when proper and expedient. But there is no +authority of law for making allotments on some of the reservations, and on +others the allotments provided for are so small that the Indians, though +ready and desiring to settle down, are not willing to accept such small +areas when their reservations contain ample lands to afford them homesteads +of sufficient size to meet their present and future needs. + +These inequalities of existing special laws and treaties should be +corrected and some general legislation on the subject should be provided, +so that the more progressive members of the different tribes may be settled +upon homesteads, and by their example lead others to follow, breaking away +from tribal customs and substituting therefor the love of home, the +interest of the family, and the rule of the state. + +The Indian character and nature are such that they are not easily led while +brooding over unadjusted wrongs. This is especially so regarding their +lands. Matters arising from the construction and operation of railroads +across some of the reservations, and claims of title and right of occupancy +set up by white persons to some of the best land within other reservations +require legislation for their final adjustment. + +The settlement of these matters will remove many embarrassments to progress +in the work of leading the Indians to the adoption of our institutions and +bringing them under the operation, the influence, and the protection of the +universal laws of our country. + +The recommendations of the Secretary of the Interior and the Commissioner +of the General Land Office looking to the better protection of public lands +and of the public surveys, the preservation of national forests, the +adjudication of grants to States and corporations and of private land +claims, and the increased efficiency of the public-land service are +commended to the attention of Congress. To secure the widest distribution +of public lands in limited quantities among settlers for residence and +cultivation, and thus make the greatest number of individual homes, was the +primary object of the public-land legislation in the early days of the +Republic. This system was a simple one. It commenced with an admirable +scheme of public surveys, by which the humblest citizen could identify the +tract upon which he wished to establish his home. The price of lands was +placed within the reach of all the enterprising, industrious, and honest +pioneer citizens of the country. It was soon, however, found that the +object of the laws was perverted, under the system of cash sales, from a +distribution of land among the people to an accumulation of land capital by +wealthy and speculative persons. To check this tendency a preference right +of purchase was given to settlers on the land, a plan which culminated in +the general preemption act of 1841. The foundation of this system was +actual residence and cultivation. Twenty years later the homestead law was +devised to more surely place actual homes in the possession of actual +cultivators of the soil. The land was given without price, the sole +conditions being residence, improvement, and cultivation. Other laws have +followed, each designed to encourage the acquirement and use of land in +limited individual quantities. But in later years these laws, through +vicious administrative methods and under changed conditions of +communication and transportation, have been so evaded and violated that +their beneficent purpose is threatened with entire defeat. The methods of +such evasions and violations are set forth in detail in the reports of the +Secretary of the Interior and Commissioner of the General Land Office. The +rapid appropriation of our public lands without bona fide settlements or +cultivation, and not only without intention of residence, but for the +purpose of their aggregation in large holdings, in many cases in the hands +of foreigners, invites the serious and immediate attention of the +Congress. + +The energies of the Land Department have been devoted during the present +Administration to remedy defects and correct abuses in the public-land +service. The results of these efforts are so largely in the nature of +reforms in the processes and methods of our land system as to prevent +adequate estimate; but it appears by a compilation from the reports of the +Commissioner of the General Land Office that the immediate effect in +leading cases which have come to a final termination has been the +restoration to the mass of public lands of 2,750,000 acres; that 2,370,000 +acres are embraced in investigations now pending before the Department or +the courts, and that the action of Congress has been asked to effect the +restoration of 2,790,000 acres additional; besides which 4,000,000 acres +have been withheld from reservation and the rights of entry thereon +maintained. + +I recommend the repeal of the preemption and timber-culture acts, and that +the homestead laws be so amended as to better secure compliance with their +requirements of residence, improvement, and cultivation for the period of +five years from date of entry, without commutation or provision for +speculative relinquishment. I also recommend the repeal of the desert-land +laws unless it shall be the pleasure of the Congress to so amend these laws +as to render them less liable to abuses. As the chief motive for an evasion +of the laws and the principal cause of their result in land accumulation +instead of land distribution is the facility with which transfers are made +of the right intended to be secured to settlers, it may be deemed advisable +to provide by legislation some guards and checks upon the alienation of +homestead rights and lands covered thereby until patents issue. + +Last year an Executive proclamation was issued directing the removal of +fences which inclosed the public domain. Many of these have been removed in +obedience to such order, but much of the public land still remains within +the lines of these unlawful fences. The ingenious methods resorted to in +order to continue these trespasses and the hardihood of the pretenses by +which in some cases such inclosures are justified are fully detailed in the +report of the Secretary of the Interior. + +The removal of the fences still remaining which inclose public lands will +be enforced with all the authority and means with which the executive +branch of the Government is or shall be invested by the Congress for that +purpose. + +The report of the Commissioner of Pensions contains a detailed and most +satisfactory exhibit of the operations of the Pension Bureau during the +last fiscal year. The amount of work done was the largest in any year since +the organization of the Bureau, and it has been done at less cost than +during the previous year in every division. + +On the 30th day of June, 1886, there were 365,783 pensioners on the rolls +of the Bureau. + +Since 1861 there have been 1,018,735 applications for pensions filed, of +which 78,834 were based upon service in the War of 1812. There were 621,754 +of these applications allowed, including 60,178 to the soldiers of 1812 and +their widows. + +The total amount paid for pensions since 1861 is $808,624,811.57. + +The number of new pensions allowed during the year ended June 30, 1886, is +40,857, a larger number than has been allowed in any year save one since +1861. The names of 2,229 pensioners which had been previously dropped from +the rolls were restored during the year, and after deducting those dropped +within the same time for various causes a net increase remains for the year +of 20,658 names. + +From January 1, 1861, to December 1, 1885, 1,967 private pension acts had +been passed. Since the last-mentioned date, and during the last session of +the Congress, 644 such acts became laws. + +It seems to me that no one can examine our pension establishment and its +operations without being convinced that through its instrumentality justice +can be very nearly done to all who are entitled under present laws to the +pension bounty of the Government. + +But it is undeniable that cases exist, well entitled to relief, in which +the Pension Bureau is powerless to aid. The really worthy cases of this +class are such as only lack by misfortune the kind or quantity of proof +which the law and regulations of the Bureau require, or which, though their +merit is apparent, for some other reason can not be justly dealt with +through general laws. These conditions fully justify application to the +Congress and special enactments. But resort to the Congress for a special +pension act to overrule the deliberate and careful determination of the +Pension Bureau on the merits or to secure favorable action when it could +not be expected under the most liberal execution of general laws, it must +be admitted opens the door to the allowance of questionable claims and +presents to the legislative and executive branches of the Government +applications concededly not within the law and plainly devoid of merit, but +so surrounded by sentiment and patriotic feeling that they are hard to +resist. I suppose it will not be denied that many claims for pension are +made without merit and that many have been allowed upon fraudulent +representations. This has been declared from the Pension Bureau, not only +in this but in prior Administrations. + +The usefulness and the justice of any system for the distribution of +pensions depend upon the equality and uniformity of its operation. + +It will be seen from the report of the Commissioner that there are now paid +by the Government 131 different rates of pension. + +He estimates from the best information he can obtain that 9,000 of those +who have served in the Army and Navy of the United States are now +supported, in whole or in part, from public funds or by organized +charities, exclusive of those in soldiers' homes under the direction and +control of the Government. Only 13 per cent of these are pensioners, while +of the entire number of men furnished for the late war something like 20 +per cent, including their widows and relatives, have been or now are in +receipt of pensions. + +The American people, with a patriotic and grateful regard for our +ex-soldiers, too broad and too sacred to be monopolized by any special +advocates, are not only willing but anxious that equal and exact justice +should be done to all honest claimants for pensions. In their sight the +friendless and destitute soldier, dependent on public charity, if otherwise +entitled, has precisely the same right to share in the provision made for +those who fought their country's battles as those better able, through +friends and influence, to push their claims. Every pension that is granted +under our present plan upon any other grounds than actual service and +injury or disease incurred in such service, and every instance of the many +in which pensions are increased on other grounds than the merits of the +claim, work an injustice to the brave and crippled, but poor and +friendless, soldier, who is entirely neglected or who must be content with +the smallest sum allowed under general laws. + +There are far too many neighborhoods in which are found glaring cases of +inequality of treatment in the matter of pensions, and they are largely due +to a yielding in the Pension Bureau to importunity on the part of those, +other than the pensioner, who are especially interested, or they arise from +special acts passed for the benefit of individuals. + +The men who fought side by side should stand side by side when they +participate in a grateful nation's kind remembrance. + +Every consideration of fairness and justice to our ex-soldiers and the +protection of the patriotic instinct of our citizens from perversion and +violation point to the adoption of a pension system broad and comprehensive +enough to cover every contingency, and which shall make unnecessary an +objectionable volume of special legislation. + +As long as we adhere to the principle of granting pensions for service, and +disability as the result of the service, the allowance of pensions should +be restricted to cases presenting these features. + +Every patriotic heart responds to a tender consideration for those who, +having served their country long and well, are reduced to destitution and +dependence, not as an incident of their service, but with advancing age or +through sickness or misfortune. We are all tempted by the contemplation of +such a condition to supply relief, and are often impatient of the +limitations of public duty. Yielding to no one in the desire to indulge +this feeling of consideration, I can not rid myself of the conviction that +if these ex-soldiers are to be relieved they and their cause are entitled +to the benefit of an enactment under which relief may be claimed as a +right, and that such relief should be granted under the sanction of law, +not in evasion of it; nor should such worthy objects of care, all equally +entitled, be remitted to the unequal operation of sympathy or the tender +mercies of social and political influence, with their unjust +discriminations. + +The discharged soldiers and sailors of the country are our fellow-citizens, +and interested with us in the passage and faithful execution of wholesome +laws. They can not be swerved from their duty of citizenship by artful +appeals to their spirit of brotherhood born of common peril and suffering, +nor will they exact as a test of devotion to their welfare a willingness to +neglect public duty in their behalf. + +On the 4th of March, 1885, the current business of the Patent Office was, +on an average, five and a half months in arrears, and in several divisions +more than twelve months behind. At the close of the last fiscal year such +current work was but three months in arrears, and it is asserted and +believed that in the next few months the delay in obtaining an examination +of an application for a patent will be but nominal. + +The number of applications for patents during the last fiscal year, +including reissues, designs, trade-marks, and labels, equals 40,678, which +is considerably in excess of the number received during any preceding +year. + +The receipts of the Patent Office during the year aggregate $1,205,167.80, +enabling the office to turn into the Treasury a surplus revenue, over and +above all expenditures, of about $163,710.30. + +The number of patents granted during the last fiscal year, including +reissues, trade-marks, designs, and labels, was 25,619, a number also quite +largely in excess of that of any preceding year. + +The report of the Commissioner shows the office to be in a prosperous +condition and constantly increasing in its business. No increase of force +is asked for. + +The amount estimated for the fiscal year ending June 30, 1886, was +$890,760. The amount estimated for the year ending June 30, 1887, was +$853,960. The amount estimated for the fiscal year ending June 30, 1888, is +$778,770. + +The Secretary of the Interior suggests a change in the plan for the payment +of the indebtedness of the Pacific subsidized roads to the Government. His +suggestion has the unanimous indorsement of the persons selected by the +Government to act as directors of these roads and protect the interests of +the United States in the board of direction. In considering the plan +proposed the sole matters which should be taken into account, in my +opinion, are the situation of the Government as a creditor and the surest +way to secure the payment of the principal and interest of its debt. + +By a recent decision of the Supreme Court of the United States it has been +adjudged that the laws of the several States are inoperative to regulate +rates of transportation upon railroads if such regulation interferes with +the rate of carriage from one State into another. This important field of +control and regulation having been thus left entirely unoccupied, the +expediency of Federal action upon the subject is worthy of consideration. + +The relations of labor to capital and of laboring men to their employers +are of the utmost concern to every patriotic citizen. When these are +strained and distorted, unjustifiable claims are apt to be insisted upon by +both interests, and in the controversy which results the welfare of all and +the prosperity of the country are jeopardized. Any intervention of the +General Government, within the limits of its constitutional authority, to +avert such a condition should be willingly accorded. + +In a special message transmitted to the Congress at its last session I +suggested the enlargement of our present Labor Bureau and adding to its +present functions the power of arbitration in cases where differences arise +between employer and employed. When these differences reach such a stage as +to result in the interruption of commerce between the States, the +application of this remedy by the General Government might be regarded as +entirely within its constitutional powers. And I think we might reasonably +hope that such arbitrators, if carefully selected and if entitled to the +confidence of the parties to be affected, would be voluntarily called to +the settlement of controversies of less extent and not necessarily within +the domain of Federal regulation. + +I am of the opinion that this suggestion is worthy the attention of the +Congress. + +But after all has been done by the passage of laws, either Federal or +State, to relieve a situation full of solicitude, much more remains to be +accomplished by the reinstatement and cultivation of a true American +sentiment which recognizes the equality of American citizenship. This, in +the light of our traditions and in loyalty to the spirit of our +institutions, would teach that a hearty cooperation on the part of all +interests is the surest path to national greatness and the happiness of all +our people; that capital should, in recognition of the brotherhood of our +citizenship and in a spirit of American fairness, generously accord to +labor its just compensation and consideration, and that contented labor is +capital's best protection and faithful ally. It would teach, too, that the +diverse situations of our people are inseparable from our civilization; +that every citizen should in his sphere be a contributor to the general +good; that capital does not necessarily tend to the oppression of labor, +and that violent disturbances and disorders alienate from their promoters +true American sympathy and kindly feeling. + +The Department of Agriculture, representing the oldest and largest of our +national industries, is subserving well the purposes of its organization. +By the introduction of new subjects of farming enterprise and by opening +new sources of agricultural wealth and the dissemination of early +information concerning production and prices it has contributed largely to +the country's prosperity. Through this agency advanced thought and +investigation touching the subjects it has in charge should, among other +things, be practically applied to the home production at a low cost of +articles of food which are now imported from abroad. Such an innovation +will necessarily, of course, in the beginning be within the domain of +intelligent experiment, and the subject in every stage should receive all +possible encouragement from the Government. + +The interests of millions of our citizens engaged in agriculture are +involved in an enlargement and improvement of the results of their labor, +and a zealous regard for their welfare should be a willing tribute to those +whose productive returns are a main source of our progress and power. + +The existence of pleuro-pneumonia among the cattle of various States has +led to burdensome and in some cases disastrous restrictions in an important +branch of our commerce, threatening to affect the quantity and quality of +our food supply. This is a matter of such importance and of such +far-reaching consequences that I hope it will engage the serious attention +of the Congress, to the end that such a remedy may be applied as the limits +of a constitutional delegation of power to the General Government will +permit. + +I commend to the consideration of the Congress the report of the +Commissioner and his suggestions concerning the interest intrusted to his +care. + +The continued operation of the law relating to our civil service has added +the most convincing proofs of its necessity and usefulness. It is a fact +worthy of note that every public officer who has a just idea of his duty to +the people testifies to the value of this reform. Its staunchest, friends +are found among those who understand it best, and its warmest supporters +are those who are restrained and protected by its requirements. + +The meaning of such restraint and protection is not appreciated by those +who want places under the Government regardless of merit and efficiency, +nor by those who insist that the selection of such places should rest upon +a proper credential showing active partisan work. They mean to public +officers, if not their lives, the only opportunity afforded them to attend +to public business, and they mean to the good people of the country the +better performance of the work of their Government. + +It is exceedingly strange that the scope and nature of this reform are so +little understood and that so many things not included within its plan are +called by its name. When cavil yields more fully to examination, the system +will have large additions to the number of its friends. + +Our civil-service reform may be imperfect in some of its details; it may be +misunderstood and opposed; it may not always be faithfully applied; its +designs may sometimes miscarry through mistake or willful intent; it may +sometimes tremble under the assaults of its enemies or languish under the +misguided zeal of impracticable friends; but if the people of this country +ever submit to the banishment of its underlying principle from the +operation of their Government they will abandon the surest guaranty of the +safety and success of American institutions. + +I invoke for this reform the cheerful and ungrudging support of the +Congress. I renew my recommendation made last year that the salaries of the +Commissioners be made equal to other officers of the Government having like +duties and responsibilities, and I hope that such reasonable appropriations +may be made as will enable them to increase the usefulness of the cause +they have in charge. + +I desire to call the attention of the Congress to a plain duty which the +Government owes to the depositors in the Freedman's Savings and Trust +Company. + +This company was chartered by the Congress for the benefit of the most +illiterate and humble of our people, and with the intention of encouraging +in them industry and thrift. Most of its branches were presided over by +officers holding the commissions and clothed in the uniform of the United +States. These and other circumstances reasonably, I think, led these simple +people to suppose that the invitation to deposit their hard-earned savings +in this institution implied an undertaking on the part of their Government +that their money should be safely kept for them. + +When this company failed, it was liable in the sum of $2,939,925.22 to +61,131 depositors. Dividends amounting in the aggregate to 62 per cent have +been declared, and the sum called for and paid of such dividends seems to +be $1,648,181.72. This sum deducted from the entire amount of deposits +leaves $1,291,744.50 still unpaid. Past experience has shown that quite a +large part of this sum will not be called for. There are assets still on +hand amounting to the estimated sum of $16,000. + +I think the remaining 38 per cent of such of these deposits as have +claimants should be paid by the Government, upon principles of equity and +fairness. + +The report of the commissioner, soon to be laid before Congress, will give +more satisfactory details on this subject. + +The control of the affairs of the District of Columbia having been placed +in the hands of purely executive officers, while the Congress still retains +all legislative authority relating to its government, it becomes my duty to +make known the most pressing needs of the District and recommend their +consideration. + +The laws of the District appear to be in an uncertain and unsatisfactory +condition, and their codification or revision is much needed. + +During the past year one of the bridges leading from the District to the +State of Virginia became unfit for use, and travel upon it was forbidden. +This leads me to suggest that the improvement of all the bridges crossing +the Potomac and its branches from the city of Washington is worthy the +attention of Congress. + +The Commissioners of the District represent that the laws regulating the +sale of liquor and granting licenses therefor should be at once amended, +and that legislation is needed to consolidate, define, and enlarge the +scope and powers of charitable and penal institutions within the District. + +I suggest that the Commissioners be clothed with the power to make, within +fixed limitations, police regulations. I believe this power granted and +carefully guarded would tend to subserve the good order of the +municipality. + +It seems that trouble still exists growing out of the occupation of the +streets and avenues by certain railroads having their termini in the city. +It is very important that such laws should be enacted upon this subject as +will secure to the railroads all the facilities they require for the +transaction of their business and at the same time protect citizens from +injury to their persons or property. + +The Commissioners again complain that the accommodations afforded them for +the necessary offices for District business and for the safe-keeping of +valuable books and papers are entirely insufficient. I recommend that this +condition of affairs be remedied by the Congress, and that suitable +quarters be furnished for the needs of the District government. + +In conclusion I earnestly invoke such wise action on the part of the +people's legislators as will subserve the public good and demonstrate +during the remaining days of the Congress as at present organized its +ability and inclination to so meet the people's needs that it shall be +gratefully remembered by an expectant constituency. + +*** + +State of the Union Address +Grover Cleveland +December 6, 1887 + +To the Congress of the United States: + +You are confronted at the threshold of your legislative duties with a +condition of the national finances which imperatively demands immediate and +careful consideration. + +The amount of money annually exacted, through the operation of present +laws, from the industries and necessities of the people largely exceeds the +sum necessary to meet the expenses of the Government. + +When we consider that the theory of our institutions guarantees to every +citizen the full enjoyment of all the fruits of his industry and +enterprise, with only such deduction as may be his share toward the careful +and economical maintenance of the Government which protects him, it is +plain that the exaction of more than this is indefensible extortion and a +culpable betrayal of American fairness and justice. This wrong inflicted +upon those who bear the burden of national taxation, like other wrongs, +multiplies a brood of evil consequences. The public Treasury, which should +only exist as a conduit conveying the people's tribute to its legitimate +objects of expenditure, becomes a hoarding place for money needlessly +withdrawn from trade and the people's use, thus crippling our national +energies, suspending our country's development, preventing investment in +productive enterprise, threatening financial disturbance, and inviting +schemes of public plunder. + +This condition of our Treasury is not altogether new, and it has more than +once of late been submitted to the people's representatives in the +Congress, who alone can apply a remedy. And yet the situation still +continues, with aggravated incidents, more than ever presaging financial +convulsion and widespread disaster. + +It will not do to neglect this situation because its dangers are not now +palpably imminent and apparent. They exist none the less certainly, and +await the unforeseen and unexpected occasion when suddenly they will be +precipitated upon us. + +On the 30th day of June, 1885, the excess of revenues over public +expenditures, after complying with the annual requirement of the +sinking-fund act, was $17,859,735.84; during the year ended June 30, 1886, +such excess amounted to $49,405,545.20, and during the year ended June 30, +1887, it reached the sum of $55,567,849.54. + +The annual contributions to the sinking fund during the three years above +specified, amounting in the aggregate to $138,058,320.94, and deducted from +the surplus as stated, were made by calling in for that purpose outstanding +3 per cent bonds of the Government. During the six months prior to June 30, +1887, the surplus revenue had grown so large by repeated accumulations, and +it was feared the withdrawal of this great sum of money needed by the +people would so affect the business of the country, that the sum of +$79,864,100 of such surplus was applied to the payment of the principal and +interest of the 3 per cent bonds still outstanding, and which were then +payable at the option of the Government. The precarious condition of +financial affairs among the people still needing relief, immediately after +the 30th day of June, 1887, the remainder of the 3 per cent bonds then +outstanding, amounting with principal and interest to the sum of +$18,877,500, were called in and applied to the sinking-fund contribution +for the current fiscal year. Notwithstanding these operations of the +Treasury Department, representations of distress in business circles not +only continued, but increased, and absolute peril seemed at hand. In these +circumstances the contribution to the sinking fund for the current fiscal +year was at once completed by the expenditure of $27,684,283.55 in the +purchase of Government bonds not yet due bearing 4 and 41/2 per cent +interest, the premium paid thereon averaging about 24 per cent for the +former and 8 per cent for the latter. In addition to this, the interest +accruing during the current year upon the outstanding bonded indebtedness +of the Government was to some extent anticipated, and banks selected as +depositories of public money were permitted to somewhat increase their +deposits. + +While the expedients thus employed to release to the people the money lying +idle in the Treasury served to avert immediate danger, our surplus revenues +have continued to accumulate, the excess for the present year amounting on +the 1st day of December to $55,258,701.19, and estimated to reach the sum +of $113,000,000 on the 30th of June next, at which date it is expected that +this sum, added to prior accumulations, will swell the surplus in the +Treasury to $140,000,000. + +There seems to be no assurance that, with such a withdrawal from use of the +people's circulating medium, our business community may not in the near +future be subjected to the same distress which was quite lately produced +from the same cause. And while the functions of our National Treasury +should be few and simple, and while its best condition would be reached, I +believe, by its entire disconnection with private business interests, yet +when, by a perversion of its purposes, it idly holds money uselessly +subtracted from the channels of trade, there seems to be reason for the +claim that some legitimate means should be devised by the Government to +restore in an emergency, without waste or extravagance, such money to its +place among the people. + +If such an emergency arises, there now exists no clear and undoubted +executive power of relief. Heretofore the redemption of 3 per cent bonds, +which were payable at the option of the Government, has afforded a means +for the disbursement of the excess of our revenues; but these bonds have +all been retired, and there are no bonds outstanding the payment of which +we have a right to insist upon. The contribution to the sinking fund which +furnishes the occasion for expenditure in the purchase of bonds has been +already made for the current year, so that there is no outlet in that +direction. + +In the present state of legislation the only pretense of any existing +executive power to restore at this time any part of our surplus revenues to +the people by its expenditure consists in the supposition that the +Secretary of the Treasury may enter the market and purchase the bonds of +the Government not yet due, at a rate of premium to be agreed upon. The +only provision of law from which such a power could be derived is found in +an appropriation bill passed a number of years ago, and it is subject to +the suspicion that it was intended as temporary and limited in its +application, instead of conferring a continuing discretion and authority. +No condition ought to exist which would justify the grant of power to a +single official, upon his judgment of its necessity, to withhold from or +release to the business of the people, in an unusual manner, money held in +the Treasury, and thus affect at his will the financial situation of the +country; and if it is deemed wise to lodge in the Secretary of the Treasury +the authority in the present juncture to purchase bonds, it should be +plainly vested, and provided, as far as possible, with such checks and +limitations as will define this official's right and discretion and at the +same time relieve him from undue responsibility. + +In considering the question of purchasing bonds as a means of restoring to +circulation the surplus money accumulating in the Treasury, it should be +borne in mind that premiums must of course be paid upon such purchase, that +there may be a large part of these bonds held as investments which can not +be purchased at any price, and that combinations among holders who are +willing to sell may unreasonably enhance the cost of such bonds to the +Government. + +It has been suggested that the present bonded debt might be refunded at a +less rate of interest and the difference between the old and new security +paid in cash, thus finding use for the surplus in the Treasury. The success +of this plan, it is apparent, must depend upon the volition of the holders +of the present bonds; and it is not entirely certain that the inducement +which must be offered them would result in more financial benefit to the +Government than the purchase of bonds, while the latter proposition would +reduce the principal of the debt by actual payment instead of extending +it. + +The proposition to deposit the money held by the Government in banks +throughout the country for use by the people is, it seems to me, +exceedingly objectionable in principle, as establishing too close a +relationship between the operations of the Government Treasury and the +business of the country and too extensive a commingling of their money, +thus fostering an unnatural reliance in private business upon public funds. +If this scheme should be adopted, it should only be done as a temporary +expedient to meet an urgent necessity. Legislative and executive effort +should generally be in the opposite direction, and should have a tendency +to divorce, as much and as fast as can be safely done, the Treasury +Department from private enterprise. + +Of course it is not expected that unnecessary and extravagant +appropriations will be made for the purpose of avoiding the accumulation of +an excess of revenue. Such expenditure, besides the demoralization of all +just conceptions of public duty which it entails, stimulates a habit of +reckless improvidence not in the least consistent with the mission of our +people or the high and beneficent purposes of our Government. + +I have deemed it my duty to thus bring to the knowledge of my countrymen, +as well as to the attention of their representatives charged with the +responsibility of legislative relief, the gravity of our financial +situation. The failure of the Congress heretofore to provide against the +dangers which it was quite evident the very nature of the difficulty must +necessarily produce caused a condition of financial distress and +apprehension since your last adjournment which taxed to the utmost all the +authority and expedients within executive control; and these appear now to +be exhausted. If disaster results from the continued inaction of Congress, +the responsibility must rest where it belongs. + +Though the situation thus far considered is fraught with danger which +should be fully realized, and though it presents features of wrong to the +people as well as peril to the country, it is but a result growing out of a +perfectly palpable and apparent cause, constantly reproducing the same +alarming circumstances--a congested National Treasury and a depleted +monetary condition in the business of the country. It need hardly be stated +that while the present situation demands a remedy, we can only be saved +from a like predicament in the future by the removal of its cause. + +Our scheme of taxation, by means of which this needless surplus is taken +from the people and put into the public Treasury, consists of a tariff or +duty levied upon importations from abroad and internal-revenue taxes levied +upon the consumption of tobacco and spirituous and malt liquors. It must be +conceded that none of the things subjected to internal-revenue taxation +are, strictly speaking, necessaries. There appears to be no just complaint +of this taxation by the consumers of these articles, and there seems to be +nothing so well able to bear the burden without hardship to any portion of +the people. + +But our present tariff laws, the vicious, inequitable, and illogical source +of unnecessary taxation, ought to be at once revised and amended. These +laws, as their primary and plain effect, raise the price to consumers of +all articles imported and subject to duty by precisely the sum paid for +such duties. Thus the amount of the duty measures the tax paid by those who +purchase for use these imported articles. Many of these things, however, +are raised or manufactured in our own country, and the duties now levied +upon foreign goods and products are called protection to these home +manufactures, because they render it possible for those of our people who +are manufacturers to make these taxed articles and sell them for a price +equal to that demanded for the imported goods that have paid customs duty. +So it happens that while comparatively a few use the imported articles, +millions of our people, who never used and never saw any of the foreign +products, purchase and use things of the same kind made in this country, +and pay therefor nearly or quite the same enhanced price which the duty +adds to the imported articles. Those who buy imports pay the duty charged +thereon into the public Treasury, but the great majority of our citizens, +who buy domestic articles of the same class, pay a sum at least +approximately equal to this duty to the home manufacturer. This reference +to the operation of our tariff laws is not made by way of instruction, but +in order that we may be constantly reminded of the manner in which they +impose a burden upon those who consume domestic products as well as those +who consume imported articles, and thus create a tax upon all our people. + +It is not proposed to entirely relieve the country of this taxation. It +must be extensively continued as the source of the Government's income; and +in a readjustment of our tariff the interests of American labor engaged in +manufacture should be carefully considered, as well as the preservation of +our manufacturers. It may be called protection or by any other name, but +relief from the hardships and dangers of our present tariff laws should be +devised with especial precaution against imperiling the existence of our +manufacturing interests. But this existence should not mean a condition +which, without regard to the public welfare or a national exigency, must +always insure the realization of immense profits instead of moderately +profitable returns. As the volume and diversity of our national activities +increase, new recruits are added to those who desire a continuation of the +advantages which they conceive the present system of tariff taxation +directly affords them. So stubbornly have all efforts to reform the present +condition been resisted by those of our fellow-citizens thus engaged that +they can hardly complain of the suspicion, entertained to a certain extent, +that there exists an organized combination all along the line to maintain +their advantage. + +We are in the midst of centennial celebrations, and with becoming pride we +rejoice in American skill and ingenuity, in American energy and enterprise, +and in the wonderful natural advantages and resources developed by a +century's national growth. Yet when an attempt is made to justify a scheme +which permits a tax to be laid upon every consumer in the land for the +benefit of our manufacturers, quite beyond a reasonable demand for +governmental regard, it suits the purposes of advocacy to call our +manufactures infant industries still needing the highest and greatest +degree of favor and fostering care that can be wrung from Federal +legislation. + +It is also said that the increase in the price of domestic manufactures +resulting from the present tariff is necessary in order that higher wages +may be paid to our workingmen employed in manufactories than are paid for +what is called the pauper labor of Europe. All will acknowledge the force +of an argument which involves the welfare and liberal compensation of our +laboring people. Our labor is honorable in the eyes of every American +citizen; and as it lies at the foundation of our development and progress, +it is entitled, without affectation or hypocrisy, to the utmost regard. The +standard of our laborers' life should not be measured by that of any other +country less favored, and they are entitled to their full share of all our +advantages. + +By the last census it is made to appear that of the 17,392,099 of our +population engaged in all kinds of industries 7,670,493 are employed in +agriculture, 4,074,238 in professional and personal service (2,934,876 of +whom are domestic servants and laborers), while 1,810,256 are employed in +trade and transportation and 3,837,112 are classed as employed in +manufacturing and mining. + +For present purposes, however, the last number given should be considerably +reduced. Without attempting to enumerate all, it will be conceded that +there should be deducted from those which it includes 375,143 carpenters +and joiners, 285,401 milliners, dressmakers, and seamstresses, 172,726 +blacksmiths, 133,756 tailors and tailoresses, 102,473 masons, 76,241 +butchers, 41,309 bakers, 22,083 plasterers, and 4,891 engaged in +manufacturing agricultural implements, amounting in the aggregate to +1,214,023, leaving 2,623,089 persons employed in such manufacturing +industries as are claimed to be benefited by a high tariff. + +To these the appeal is made to save their employment and maintain their +wages by resisting a change. There should be no disposition to answer such +suggestions by the allegation that they are in a minority among those who +labor, and therefore should forego an advantage in the interest of low +prices for the majority. Their compensation, as it may be affected by the +operation of tariff laws, should at all times be scrupulously kept in view; +and yet with slight reflection they will not overlook the fact that they +are consumers with the rest; that they too have their own wants and those +of their families to supply from their earnings, and that the price of the +necessaries of life, as well as the amount of their wages, will regulate +the measure of their welfare and comfort. + +But the reduction of taxation demanded should be so measured as not to +necessitate or justify either the loss of employment by the workingman or +the lessening of his wages; and the profits still remaining to the +manufacturer after a necessary readjustment should furnish no excuse for +the sacrifice of the interests of his employees, either in their +opportunity to work or in the diminution of their compensation. Nor can the +worker in manufactures fail to understand that while a high tariff is +claimed to be necessary to allow the payment of remunerative wages, it +certainly results in a very large increase in the price of nearly all sorts +of manufactures, which, in almost countless forms, he needs for the use of +himself and his family. He receives at the desk of his employer his wages, +and perhaps before he reaches his home is obliged, in a purchase for family +use of an article which embraces his own labor, to return in the payment of +the increase in price which the tariff permits the hard-earned compensation +of many days of toil. + +The farmer and the agriculturist, who manufacture nothing, but who pay the +increased price which the tariff imposes upon every agricultural implement, +upon all he wears, and upon all he uses and owns, except the increase of +his flocks and herds and such things as his husbandry produces from the +soil, is invited to aid in maintaining the present situation; and he is +told that a high duty on imported wool is necessary for the benefit of +those who have sheep to shear, in order that the price of their wool may be +increased. They, of course, are not reminded that the farmer who has no +sheep is by this scheme obliged, in his purchases of clothing and woolen +goods, to pay a tribute to his fellow-farmer as well as to the manufacturer +and merchant, nor is any mention made of the fact that the sheep owners +themselves and their households must wear clothing and use other articles +manufactured from the wool they sell at tariff prices, and thus as +consumers must return their share of this increased price to the +tradesman. + +I think it may be fairly assumed that a large proportion of the sheep owned +by the farmers throughout the country are found in small flocks, numbering +from twenty-five to fifty. The duty on the grade of imported wool which +these sheep yield is 10 cents each pound if of the value of 30 cents or +less and 12 cents if of the value of more than 30 cents. If the liberal +estimate of 6 pounds be allowed for each fleece, the duty thereon would be +60 or 72 cents; and this may be taken as the utmost enhancement of its +price to the farmer by reason of this duty. Eighteen dollars would thus +represent the increased price of the wool from twenty-five sheep and $36 +that from the wool of fifty sheep; and at present values this addition +would amount to about one-third of its price. If upon its sale the farmer +receives this or a less tariff profit, the wool leaves his hands charged +with precisely that sum, which in all its changes will adhere to it until +it reaches the consumer. When manufactured into cloth and other goods and +material for use, its cost is not only increased to the extent of the +farmer's tariff profit, but a further sum has been added for the benefit of +the manufacturer under the operation of other tariff laws. In the meantime +the day arrives when the farmer finds it necessary to purchase woolen goods +and material to clothe himself and family for the winter. When he faces the +tradesman for that purpose, he discovers that he is obliged not only to +return in the way of increased prices his tariff profit on the wool he +sold, and which then perhaps lies before him in manufactured form, but that +he must add a considerable sum thereto to meet a further increase in cost +caused by a tariff duty on the manufacture. Thus in the end he is aroused +to the fact that he has paid upon a moderate purchase, as a result of the +tariff scheme, which when he sold his wool seemed so profitable, an +increase in price more than sufficient to sweep away all the tariff profit +he received upon the wool he produced and sold. + +When the number of farmers engaged in wool raising is compared with all the +farmers in the country and the small proportion they bear to our population +is considered; when it is made apparent that in the case of a large part of +those who own sheep the benefit of the present tariff on wool is illusory; +and, above all, when it must be conceded that the increase of the cost of +living caused by such tariff becomes a burden upon those with moderate +means and the poor, the employed and unemployed, the sick and well, and the +young and old, and that it constitutes a tax which with relentless grasp is +fastened upon the clothing of every man, woman, and child in the land, +reasons are suggested why the removal or reduction of this duty should be +included in a revision of our tariff laws. + +In speaking of the increased cost to the consumer of our home manufactures +resulting from a duty laid upon imported articles of the same description, +the fact is not ever looked that competition among our domestic producers +sometimes has the effect of keeping the price of their products below the +highest limit allowed by such duty. But it is notorious that this +competition is too often strangled by combinations quite prevalent at this +time, and frequently called trusts, which have for their object the +regulation of the supply and price of commodities made and sold by members +of the combination. The people can hardly hope for any consideration in the +operation of these selfish schemes. + +If, however, in the absence of such combination, a healthy and free +competition reduces the price of any particular dutiable article of home +production below the limit which it might otherwise reach under our tariff +laws, and if with such reduced price its manufacture continues to thrive, +it is entirely evident that one thing has been discovered which should be +carefully scrutinized in an effort to reduce taxation. + +The necessity of combination to maintain the price of any commodity to the +tariff point furnishes proof that someone is willing to accept lower prices +for such commodity and that such prices are remunerative; and lower prices +produced by competition prove the same thing. Thus where either of these +conditions exists a case would seem to be presented for an easy reduction +of taxation. + +The considerations which have been presented touching our tariff laws are +intended only to enforce an earnest recommendation that the surplus +revenues of the Government be prevented by the reduction of our customs +duties, and at the same time to emphasize a suggestion that in +accomplishing this purpose we may discharge a double duty to our people by +granting to them a measure of relief from tariff taxation in quarters where +it is most needed and from sources where it can be most fairly and justly +accorded. + +Nor can the presentation made of such considerations be with any degree of +fairness regarded as evidence of unfriendliness toward our manufacturing +interests or of any lack of appreciation of their value and importance. + +These interests constitute a leading and most substantial element of our +national greatness and furnish the proud proof of our country's progress. +But if in the emergency that presses upon us our manufacturers are asked to +surrender something for the public good and to avert disaster, their +patriotism, as well as a grateful recognition of advantages already +afforded, should lead them to willing cooperation. No demand is made that +they shall forego all the benefits of governmental regard; but they can not +fail to be admonished of their duty, as well as their enlightened +self-interest and safety, when they are reminded of the fact that financial +panic and collapse, to which the present condition tends, afford no greater +shelter or protection to our manufactures than to other important +enterprises. Opportunity for safe, careful, and deliberate reform is now +offered; and none of us should be unmindful of a time when an abused and +irritated people, heedless of those who have resisted timely and reasonable +relief, may insist upon a radical and sweeping rectification of their +wrongs. + +The difficulty attending a wise and fair revision of our tariff laws is not +underestimated. It will require on the part of the Congress great labor and +care, and especially a broad and national contemplation of the subject and +a patriotic disregard of such local and selfish claims as are unreasonable +and reckless of the welfare of the entire country. + +Under our present laws more than 4,000 articles are subject to duty. Many +of these do not in any way compete with our own manufactures, and many are +hardly worth attention as subjects of revenue. A considerable reduction can +be made in the aggregate by adding them to the free list. The taxation of +luxuries presents no features of hardship; but the necessaries of life used +and consumed by all the people, the duty upon which adds to the cost of +living in every home, should be greatly cheapened. + +The radical reduction of the duties imposed upon raw material used in +manufactures, or its free importation, is of course an important factor in +any effort to reduce the price of these necessaries. It would not only +relieve them from the increased cost caused by the tariff on such material, +but the manufactured product being thus cheapened that part of the tariff +now laid upon such product, as a compensation to our manufacturers for the +present price of raw material, could be accordingly modified. Such +reduction or free importation would serve besides to largely reduce the +revenue. It is not apparent how such a change can have any injurious effect +upon our manufacturers. On the contrary, it would appear to give them a +better chance in foreign markets with the manufacturers of other countries, +who cheapen their wares by free material. Thus our people might have the +opportunity of extending their sales beyond the limits of home consumption, +saving them from the depression, interruption in business, and loss caused +by a glutted domestic market and affording their employees more certain and +steady labor, with its resulting quiet and contentment. + +The question thus imperatively presented for solution should be approached +in a spirit higher than partisanship and considered in the light of that +regard for patriotic duty which should characterize the action of those +intrusted with the weal of a confiding people. But the obligation to +declared party policy and principle is not wanting to urge prompt and +effective action. Both of the great political parties now represented in +the Government have by repeated and authoritative declarations condemned +the condition of our laws which permit the collection from the people of +unnecessary revenue, and have in the most solemn manner promised its +correction; and neither as citizens nor partisans are our countrymen in a +mood to condone the deliberate violation of these pledges. + +Our progress toward a wise conclusion will not be improved by dwelling upon +the theories of protection and free trade. This savors too much of bandying +epithets. It is a condition which confronts us, not a theory. Relief from +this condition may involve a slight reduction of the advantages which we +award our home productions, but the entire withdrawal of such advantages +should not be contemplated. The question of free trade is absolutely +irrelevant, and the persistent claim made in certain quarters that all the +efforts to relieve the people from unjust and unnecessary taxation are +schemes of so-called free traders is mischievous and far removed from any +consideration for the public good. + +The simple and plain duty which we owe the people is to reduce taxation to +the necessary expenses of an economical operation of the Government and to +restore to the business of the country the money which we hold in the +Treasury through the perversion of governmental powers. These things can +and should be done with safety to all our industries, without danger to the +opportunity for remunerative labor which our workingmen need, and with +benefit to them and all our people by cheapening their means of subsistence +and increasing the measure of their comforts. + +The Constitution provides that the President "shall from time to time give +to the Congress information of the state of the Union." It has been the +custom of the Executive, in compliance with this provision, to annually +exhibit to the Congress, at the opening of its session, the general +condition of the country, and to detail with some particularity the +operations of the different Executive Departments. It would be especially +agreeable to follow this course at the present time and to call attention +to the valuable accomplishments of these Departments during the last fiscal +year; but I am so much impressed with the paramount importance of the +subject to which this communication has thus far been devoted that I shall +forego the addition of any other topic, and only urge upon your immediate +consideration the "state of the Union" as shown in the present condition of +our Treasury and our general fiscal situation, upon which every element of +our safety and prosperity depends. + +The reports of the heads of Departments, which will be submitted, contain +full and explicit information touching the transaction of the business +intrusted to them and such recommendations relating to legislation in the +public interest as they deem advisable. I ask for these reports and +recommendations the deliberate examination and action of the legislative +branch of the Government. + +There are other subjects not embraced in the departmental reports demanding +legislative consideration, and which I should be glad to submit. Some of +them, however, have been earnestly presented in previous messages, and as +to them I beg leave to repeat prior recommendations. + +As the law makes no provision for any report from the Department of State, +a brief history of the transactions of that important Department, together +with other matters which it may hereafter be deemed essential to commend to +the attention of the Congress, may furnish the occasion for a future +communication. + +*** + +State of the Union Address +Grover Cleveland +December 3, 1888 + +To the Congress of the United States: + +As you assemble for the discharge of the duties you have assumed as the +representatives of a free and generous people, your meeting is marked by an +interesting and impressive incident. With the expiration of the present +session of the Congress the first century of our constitutional existence +as a nation will be completed. + +Our survival for one hundred years is not sufficient to assure us that we +no longer have dangers to fear in the maintenance, with all its promised +blessings, of a government rounded upon the freedom of the people. The time +rather admonishes us to soberly inquire whether in the past we have always +closely kept in the course of safety, and whether we have before us a way +plain and clear which leads to happiness and perpetuity. + +When the experiment of our Government was undertaken, the chart adopted for +our guidance was the Constitution. Departure from the lines there laid down +is failure. It is only by a strict adherence to the direction they indicate +and by restraint within the limitations they fix that we can furnish proof +to the world of the fitness of the American people for self-government. + +The equal and exact justice of which we boast as the underlying principle +of our institutions should not be confined to the relations of our citizens +to each other. The Government itself is under bond to the American people +that in the exercise of its functions and powers it will deal with the body +of our citizens in a manner scrupulously honest and fair and absolutely +just. It has agreed that American citizenship shall be the only credential +necessary to justify the claim of equality before the law, and that no +condition in life shall give rise to discrimination in the treatment of the +people by their Government. + +The citizen of our Republic in its early days rigidly insisted upon full +compliance with the letter of this bond, and saw stretching out before him +a clear field for individual endeavor. His tribute to the support of his +Government was measured by the cost of its economical maintenance, and he +was secure in the enjoyment of the remaining recompense of his steady and +contented toil. In those days the frugality of the people was stamped upon +their Government, and was enforced by the free, thoughtful, and intelligent +suffrage of the citizen. Combinations, monopolies, and aggregations of +capital were either avoided or sternly regulated and restrained. The pomp +and glitter of governments less free offered no temptation and presented no +delusion to the plain people who, side by side, in friendly competition, +wrought for the ennoblement and dignity of man, for the solution of the +problem of free government, and for the achievement of the grand destiny +awaiting the land which God had given them. + +A century has passed. Our cities are the abiding places of wealth and +luxury; our manufactories yield fortunes never dreamed of by the fathers of +the Republic; our business men are madly striving in the race for riches, +and immense aggregations of capital outrun the imagination in the magnitude +of their undertakings. + +We view with pride and satisfaction this bright picture of our country's +growth and prosperity, while only a closer scrutiny develops a somber +shading. Upon more careful inspection we find the wealth and luxury of our +cities mingled with poverty and wretchedness and unremunerative toil. A +crowded and constantly increasing urban population suggests the +impoverishment of rural sections and discontent with agricultural pursuits. +The farmer's son, not satisfied with his father's simple and laborious +life, joins the eager chase for easily acquired wealth. + +We discover that the fortunes realized by our manufacturers are no longer +solely the reward of sturdy industry and enlightened foresight, but that +they result from the discriminating favor of the Government and are largely +built upon undue exactions from the masses of our people. The gulf between +employers and the employed is constantly widening, and classes are rapidly +forming, one comprising the very rich and powerful, while in another are +found the toiling poor. + +As we view the achievements of aggregated capital, we discover the +existence of trusts, combinations, and monopolies, while the citizen is +struggling far in the rear or is trampled to death beneath an iron heel. +Corporations, which should be the carefully restrained creatures of the law +and the servants of the people, are fast becoming the people's masters. + +Still congratulating ourselves upon the wealth and prosperity of our +country and complacently contemplating every incident of change inseparable +from these conditions, it is our duty as patriotic citizens to inquire at +the present stage of our progress how the bond of the Government made with +the people has been kept and performed. + +Instead of limiting the tribute drawn from our citizens to the necessities +of its economical administration, the Government persists in exacting from +the substance of the people millions which, unapplied and useless, lie +dormant in its Treasury. This flagrant injustice and this breach of faith +and obligation add to extortion the danger attending the diversion of the +currency of the country from the legitimate channels of business. + +Under the same laws by which these results are produced the Government +permits many millions more to be added to the cost of the living of our +people and to be taken from our consumers, which unreasonably swell the +profits of a small but powerful minority. + +The people must still be taxed for the support of the Government under the +operation of tariff laws. But to the extent that the mass of our citizens +are inordinately burdened beyond any useful public purpose and for the +benefit of a favored few, the Government, under pretext of an exercise of +its taxing power, enters gratuitously into partnership with these +favorites, to their advantage and to the injury of a vast majority of our +people. + +This is not equality before the law. + +The existing situation is injurious to the health of our entire body +politic. It stifles in those for whose benefit it is permitted all +patriotic love of country, and substitutes in its place selfish greed and +grasping avarice. Devotion to American citizenship for its own sake and for +what it should accomplish as a motive to our nation's advancement and the +happiness of all our people is displaced by the assumption that the +Government, instead of being the embodiment of equality, is but an +instrumentality through which especial and individual advantages are to be +gained. + +The arrogance of this assumption is unconcealed. It appears in the sordid +disregard of all but personal interests, in the refusal to abate for the +benefit of others one iota of selfish advantage, and in combinations to +perpetuate such advantages through efforts to control legislation and +improperly influence the suffrages of the people. + +The grievances of those not included within the circle of these +beneficiaries, when fully realized, will surely arouse irritation and +discontent. Our farmers, long suffering and patient, struggling in the race +of life with the hardest and most unremitting toil, will not fail to see, +in spite of misrepresentations and misleading fallacies, that they are +obliged to accept such prices for their products as are fixed in foreign +markets where they compete with the farmers of the world; that their lands +are declining in value while their debts increase, and that without +compensating favor they are forced by the action of the Government to pay +for the benefit of others such enhanced prices for the things they need +that the scanty returns of their labor fail to furnish their support or +leave no margin for accumulation. + +Our workingmen, enfranchised from all delusions and no longer frightened by +the cry that their wages are endangered by a just revision of our tariff +laws, will reasonably demand through such revision steadier employment, +cheaper means of living in their homes, freedom for themselves and their +children from the doom of perpetual servitude, and an open door to their +advancement beyond the limits of a laboring class. Others of our citizens, +whose comforts and expenditures are measured by moderate salaries and fixed +incomes, will insist upon the fairness and justice of cheapening the cost +of necessaries for themselves and their families. + +When to the selfishness of the beneficiaries of unjust discrimination under +our laws there shall be added the discontent of those who suffer from such +discrimination, we will realize the fact that the beneficent purposes of +our Government, dependent upon the patriotism and contentment of our +people, are endangered. + +Communism is a hateful thing and a menace to peace and organized +government; but the communism of combined wealth and capital, the outgrowth +of overweening cupidity and selfishness, which insidiously undermines the +justice and integrity of free institutions, is not less dangerous than the +communism of oppressed poverty and toil, which, exasperated by injustice +and discontent, attacks with wild disorder the citadel of rule. + +He mocks the people who proposes that the Government shall protect the rich +and that they in turn will care for the laboring poor. Any intermediary +between the people and their Government or the least delegation of the care +and protection the Government owes to the humblest citizen in the land +makes the boast of free institutions a glittering delusion and the +pretended boon of American citizenship a shameless imposition. + +A just and sensible revision of our tariff laws should be made for the +relief of those of our countrymen who suffer under present conditions. Such +a revision should receive the support of all who love that justice and +equality due to American citizenship; of all who realize that in this +justice and equality our Government finds its strength and its power to +protect the citizen and his property; of all who believe that the contented +competence and comfort of many accord better with the spirit of our +institutions than colossal fortunes unfairly gathered in the hands of a +few; of all who appreciate that the forbearance and fraternity among our +people, which recognize the value of every American interest, are the +surest guaranty of our national progress, and of all who desire to see the +products of American skill and ingenuity in every market of the world, with +a resulting restoration of American commerce. + +The necessity of the reduction of our revenues is so apparent as to be +generally conceded, but the means by which this end shall be accomplished +and the sum of direct benefit which shall result to our citizens present a +controversy of the utmost importance. There should be no scheme accepted as +satisfactory by which the burdens of the people are only apparently +removed. Extravagant appropriations of public money, with all their +demoralizing consequences, should not be tolerated, either as a means of +relieving the Treasury of its present surplus or as furnishing pretext for +resisting a proper reduction in tariff rates. Existing evils and injustice +should be honestly recognized, boldly met, and effectively remedied. There +should be no cessation of the struggle until a plan is perfected, fair and +conservative toward existing industries, but which will reduce the cost to +consumers of the necessaries of life, while it provides for our +manufacturers the advantage of freer raw materials and permits no injury to +the interests of American labor. + +The cause for which the battle is waged is comprised within lines clearly +and distinctly defined. It should never be compromised. It is the people's +cause. + +It can not be denied that the selfish and private interests which are so +persistently heard when efforts are made to deal in a just and +comprehensive manner with our tariff laws are related to, if they are not +responsible for, the sentiment largely prevailing among the people that the +General Government is the fountain of individual and private aid; that it +may be expected to relieve with paternal care the distress of citizens and +communities, and that from the fullness of its Treasury it should, upon the +slightest possible pretext of promoting the general good, apply public +funds to the benefit of localities and individuals. Nor can it be denied +that there is a growing assumption that, as against the Government and in +favor of private claims and interests, the usual rules and limitations of +business principles and just dealing should be waived. + +These ideas have been unhappily much encouraged by legislative +acquiescence. Relief from contracts made with the Government is too easily +accorded in favor of the citizen; the failure to support claims against the +Government by proof is often supplied by no better consideration than the +wealth of the Government and the poverty of the claimant; gratuities in the +form of pensions are granted upon no other real ground than the needy +condition of the applicant, or for reasons less valid; and large sums are +expended for public buildings and other improvements upon representations +scarcely claimed to be related to public needs and necessities. + +The extent to which the consideration of such matters subordinate and +postpone action upon subjects of great public importance, but involving no +special private or partisan interest, should arrest attention and lead to +reformation. + +A few of the numerous illustrations of this condition may be stated. + +The crowded condition of the calendar of the Supreme Court, and the delay +to suitors and denial of justice resulting therefrom, has been strongly +urged upon the attention of the Congress, with a plan for the relief of the +situation approved by those well able to judge of its merits. While this +subject remains without effective consideration, many laws have been passed +providing for the holding of terms of inferior courts at places to suit the +convenience of localities, or to lay the foundation of an application for +the erection of a new public building. + +Repeated recommendations have been submitted for the amendment and change +of the laws relating to our public lands so that their spoliation and +diversion to other uses than as homes for honest settlers might be +prevented. While a measure to meet this conceded necessity of reform +remains awaiting the action of the Congress, many claims to the public +lands and applications for their donation, in favor of States and +individuals, have been allowed. + +A plan in aid of Indian management, recommended by those well informed as +containing valuable features in furtherance of the solution of the Indian +problem, has thus far failed of legislative sanction, while grants of +doubtful expediency to railroad corporations, permitting them to pass +through Indian reservations, have greatly multiplied. + +The propriety and necessity of the erection of one or more prisons for the +confinement of United States convicts, and a post-office building in the +national capital, are not disputed. But these needs yet remain answered, +while scores of public buildings have been erected where their necessity +for public purposes is not apparent. + +A revision of our pension laws could easily be made which would rest upon +just principles and provide for every worthy applicant. But while our +general pension laws remain confused and imperfect, hundreds of private +pension laws are annually passed, which are the sources of unjust +discrimination and popular demoralization. + +Appropriation bills for the support of the Government are defaced by items +and provisions to meet private ends, and it is freely asserted by +responsible and experienced parties that a bill appropriating money for +public internal improvement would fail to meet with favor unless it +contained items more for local and private advantage than for public +benefit. + +These statements can be much emphasized by an ascertainment of the +proportion of Federal legislation which either bears upon its face its +private character or which upon examination develops such a motive power. + +And yet the people wait and expect from their chosen representatives such +patriotic action as will advance the welfare of the entire country; and +this expectation can only be answered by the performance of public duty +with unselfish purpose. Our mission among the nations of the earth and our +success in accomplishing the work God has given the American people to do +require of those intrusted with the making and execution of our laws +perfect devotion, above all other things, to the public good. + +This devotion will lead us to strongly resist all impatience of +constitutional limitations of Federal power and to persistently check the +increasing tendency to extend the scope of Federal legislation into the +domain of State and local jurisdiction upon the plea of subserving the +public welfare. The preservation of the partitions between proper subjects +of Federal and local care and regulation is of such importance under the +Constitution, which is the law of our very existence, that no consideration +of expediency or sentiment should tempt us to enter upon doubtful ground. +We have undertaken to discover and proclaim the richest blessings of a free +government, with the Constitution as our guide. Let us follow the way it +points out; it will not mislead us. And surely no one who has taken upon +himself the solemn obligation to support and preserve the Constitution can +find justification or solace for disloyalty in the excuse that he wandered +and disobeyed in search of a better way to reach the public welfare than +the Constitution offers. + +What has been said is deemed not inappropriate at a time when, from a +century's height, we view the way already trod by the American people and +attempt to discover their future path. + +The seventh President of the United States--the soldier and statesman and +at all times the firm and brave friend of the people--in vindication of his +course as the protector of popular rights and the champion of true American +citizenship, declared: The ambition which leads me on is an anxious desire +and a fixed determination to restore to the people unimpaired the sacred +trust they have confided to my charge; to, heal the wounds of the +Constitution and to preserve it from further violation; to persuade my +countrymen, so far as I may, that it is not in a splendid government +supported by powerful monopolies and aristocratical establishments that +they will find happiness or their liberties protection, but in a plain +system, void of pomp, protecting all and granting favors to none, +dispensing its blessings like the dews of heaven, unseen and unfelt save in +the freshness and beauty they contribute to produce. It is such a +government that the genius of our people requires--such an one only under +which our States may remain for ages to come united, prosperous, and free. +In pursuance of a constitutional provision requiring the President from +time to time to give to the Congress information of the state of the Union, +I have the satisfaction to announce that the close of the year finds the +United States in the enjoyment of domestic tranquillity and at peace with +all the nations. + +Since my last annual message our foreign relations have been strengthened +and improved by performance of international good offices and by new and +renewed treaties of amity, commerce, and reciprocal extradition of +criminals. + +Those international questions which still await settlement are all +reasonably within the domain of amicable negotiation, and there is no +existing subject of dispute between the United States and any foreign power +that is not susceptible of satisfactory adjustment by frank diplomatic +treatment. + +The questions between Great Britain and the United States relating to the +rights of American fishermen, under treaty and international comity, in the +territorial waters of Canada and Newfoundland, I regret to say, are not yet +satisfactorily adjusted. + +These matters were fully treated in my message to the Senate of February 20 +1888, together with which a convention, concluded under my authority with +Her Majesty's Government on the 15th of February last, for the removal of +all causes of misunderstanding, was submitted by me for the approval of the +Senate. + +This treaty having been rejected by the Senate, I transmitted a message to +the Congress on the 23d of August last reviewing the transactions and +submitting for consideration certain recommendations for legislation +concerning the important questions involved. + +Afterwards, on the 12th of September, in response to a resolution of the +Senate, I again communicated fully all the information in my possession as +to the action of the government of Canada affecting the commercial +relations between the Dominion and the United States, including the +treatment of American fishing vessels in the ports and waters of British +North America. + +These communications have all been published, and therefore opened to the +knowledge of both Houses of Congress, although two were addressed to the +Senate alone. + +Comment upon or repetition of their contents would be superfluous, and I am +not aware that anything has since occurred which should be added to the +facts therein stated. Therefore I merely repeat, as applicable to the +present time, the statement which will be found in my message to the Senate +of September 12 last, that-- Since March 3, 1887, no case has been reported +to the Department of State wherein complaint was made of unfriendly or +unlawful treatment of American fishing vessels on the part of the Canadian +authorities in which reparation was not promptly and satisfactorily +obtained by the United States consul-general at Halifax. Having essayed in +the discharge of my duty to procure by negotiation the settlement of a +long-standing cause of dispute and to remove a constant menace to the good +relations of the two countries, and continuing to be of opinion that the +treaty of February last, which failed to receive the approval of the +Senate, did supply "a satisfactory, practical, and final adjustment, upon a +basis honorable and just to both parties, of the difficult and vexed +question to which it related," and having subsequently and unavailingly +recommended other legislation to Congress which I hoped would suffice to +meet the exigency created by the rejection of the treaty, I now again +invoke the earnest and immediate attention of the Congress to the condition +of this important question as it now stands before them and the country, +and for the settlement of which I am deeply solicitous. + +Near the close of the month of October last occurrences of a deeply +regrettable nature were brought to my knowledge, which made it my painful +but imperative duty to obtain with as little delay as possible a new +personal channel of diplomatic intercourse in this country with the +Government of Great Britain. + +The correspondence in relation to this incident will in due course be laid +before you, and will disclose the unpardonable conduct of the official +referred to in his interference by advice and counsel with the suffrages of +American citizens in the very crisis of the Presidential election then near +at hand, and also in his subsequent public declarations to justify his +action, superadding impugnment of the Executive and Senate of the United +States in connection with important questions now pending in controversy +between the two Governments. + +The offense thus committed was most grave, involving disastrous +possibilities to the good relations of the United States and Great Britain, +constituting a gross breach of diplomatic privilege and an invasion of the +purely domestic affairs and essential sovereignty of the Government to +which the envoy was accredited. + +Having first fulfilled the just demands of international comity by +affording full opportunity for Her Majesty's Government to act in relief of +the situation, I considered prolongation of discussion to be unwarranted, +and thereupon declined to further recognize the diplomatic character of the +person whose continuance in such function would destroy that mutual +confidence which is essential to the good understanding of the two +Governments and was inconsistent with the welfare and self-respect of the +Government of the United States. + +The usual interchange of communication has since continued through Her +Majesty's legation in this city. + +My endeavors to establish by international cooperation measures for the +prevention of the extermination of fur seals in Bering Sea have not been +relaxed, and I have hopes of being enabled shortly to submit an effective +and satisfactory conventional projet with the maritime powers for the +approval of the Senate. + +The coastal boundary between our Alaskan possessions and British Columbia, +I regret to say, has not received the attention demanded by its importance, +and which on several occasions heretofore I have had the honor to recommend +to the Congress. + +The admitted impracticability, if not impossibility, of making an accurate +and precise survey and demarcation of the boundary line as it is recited in +the treaty with Russia under which Alaska was ceded to the United States +renders it absolutely requisite for the prevention of international +jurisdictional complications that adequate appropriation for a +reconnoissance and survey to obtain proper knowledge of the locality and +the geographical features of the boundary should be authorized by Congress +with as little delay as possible. + +Knowledge to be only thus obtained is an essential prerequisite for +negotiation for ascertaining a common boundary, or as preliminary to any +other mode of settlement. + +It is much to be desired that some agreement should be reached with Her +Majesty's Government by which the damages to life and property on the Great +Lakes may be alleviated by removing or humanely regulating the obstacles to +reciprocal assistance to wrecked or stranded vessels. + +The act of June 19, 1878, which offers to Canadian vessels free access to +our inland waters in aid of wrecked or disabled vessels, has not yet become +effective through concurrent action by Canada. + +The due protection of our citizens of French origin or descent from claim +of military service in the event of their returning to or visiting France +has called forth correspondence which was laid before you at the last +session. + +In the absence of conventional agreement as to naturalization, which is +greatly to be desired, this Government sees no occasion to recede from the +sound position it has maintained not only with regard to France, but as to +all countries with which the United States have not concluded special +treaties. + +Twice within the last year has the imperial household of Germany been +visited by death; and I have hastened to express the sorrow of this people, +and their appreciation of the lofty character of the late aged Emperor +William, and their sympathy with the heroism under suffering of his son the +late Emperor Frederick. + +I renew my recommendation of two years ago for the passage of a bill for +the refunding to certain German steamship lines of the interest upon +tonnage dues illegally exacted. + +On the 12th [2d] of April last I laid before the House of Representatives +full information respecting our interests in Samoa; and in the subsequent +correspondence on the same subject, which will be laid before you in due +course, the history of events in those islands will be found. + +In a message accompanying my approval, on the 1st day of October last, of a +bill for the exclusion of Chinese laborers, I laid before Congress full +information and all correspondence touching the negotiation of the treaty +with China concluded at this capital on the 12th day of March, 1888, and +which, having been confirmed by the Senate with certain amendments, was +rejected by the Chinese Government. This message contained a recommendation +that a sum of money be appropriated as compensation to Chinese subjects who +had suffered injuries at the hands of lawless men within our jurisdiction. +Such appropriation having been duly made, the fund awaits reception by the +Chinese Government. + +It is sincerely hoped that by the cessation of the influx of this class of +Chinese subjects, in accordance with the expressed wish of both +Governments, a cause of unkind feeling has been permanently removed. + +On the 9th of August, 1887, notification was given by the Japanese minister +at this capital of the adjournment of the conference for the revision of +the treaties of Japan with foreign powers, owing to the objection of his +Government to the provision in the draft jurisdictional convention which +required the submission of the criminal code of the Empire to the powers in +advance of its becoming operative. This notification was, however, +accompanied with an assurance of Japan's intention to continue the work of +revision. + +Notwithstanding this temporary interruption of negotiations, it is hoped +that improvements may soon be secured in the jurisdictional system as +respects foreigners in Japan, and relief afforded to that country from the +present undue and oppressive foreign control in matters of commerce. + +I earnestly recommend that relief be provided for the injuries accidentally +caused to Japanese subjects in the island Ikisima by the target practice of +one of our vessels. + +A diplomatic mission from Korea has been received, and the formal +intercourse between the two countries contemplated by the treaty of 1882 is +now established. + +Legislative provision is hereby recommended to organize and equip consular +courts in Korea. + +Persia has established diplomatic representation at this capital, and has +evinced very great interest in the enterprise and achievements of our +citizens. I am therefore hopeful that beneficial commercial relations +between the two countries may be brought about. + +I announce with sincere regret that Hayti has again become the theater of +insurrection, disorder, and bloodshed. The titular government of president +Saloman has been forcibly overthrown and he driven out of the country to +France, where he has since died. + +The tenure of power has been so unstable amid the war of factions that has +ensued since the expulsion of President Saloman that no government +constituted by the will of the Haytian people has been recognized as +administering responsibly the affairs of that country. Our representative +has been instructed to abstain from interference between the warring +factions, and a vessel of our Navy has been sent to Haytian waters to +sustain our minister and for the protection of the persons and property of +American citizens. + +Due precautions have been taken to enforce our neutrality laws and prevent +our territory from becoming the base of military supplies for either of the +warring factions. + +Under color of a blockade, of which no reasonable notice had been given, +and which does not appear to have been efficiently maintained, a seizure of +vessels under the American flag has been reported, and in consequence +measures to prevent and redress any molestation of our innocent merchantmen +have been adopted. + +Proclamation was duly made on the 9th day of November, 1887, of the +conventional extensions of the treaty of June 3, 1875, with Hawaii, under +which relations of such special and beneficent intercourse have been +created. + +In the vast field of Oriental commerce now unfolded from our Pacific +borders no feature presents stronger recommendations for Congressional +action than the establishment of communication by submarine telegraph with +Honolulu. + +The geographical position of the Hawaiian group in relation to our Pacific +States creates a natural interdependency and mutuality of interest which +our present treaties were intended to foster, and which make close +communication a logical and commercial necessity. + +The wisdom of concluding a treaty of commercial reciprocity with Mexico has +been heretofore stated in my messages to Congress, and the lapse of time +and growth of commerce with that close neighbor and sister Republic confirm +the judgment so expressed. + +The precise relocation of our boundary line is needful, and adequate +appropriation is now recommended. + +It is with sincere satisfaction that I am enabled to advert to the spirit +of good neighborhood and friendly cooperation and conciliation that has +marked the correspondence and action of the Mexican authorities in their +share of the task of maintaining law and order about the line of our common +boundary. + +The long-pending boundary dispute between Costa Rica and Nicaragua was +referred to my arbitration, and by an award made on the 22d of March last +the question has been finally settled to the expressed satisfaction of both +of the parties in interest. + +The Empire of Brazil, in abolishing the last vestige of slavery among +Christian nations, called forth the earnest congratulations of this +Government in expression of the cordial sympathies of our people. + +The claims of nearly all other countries against Chile growing out of her +late war with Bolivia and Peru have been disposed of, either by arbitration +or by a lump settlement. Similar claims of our citizens will continue to be +urged upon the Chilean Government, and it is hoped will not be subject to +further delays. + +A comprehensive treaty of amity and commerce with Peru was proclaimed on +November 7 last, and it is expected that under its operation mutual +prosperity and good understanding will be promoted. + +In pursuance of the policy of arbitration, a treaty to settle the claim of +Santos, an American citizen, against Ecuador has been concluded under my +authority, and will be duly submitted for the approval of the Senate. + +Like disposition of the claim of Carlos Butterfield against Denmark and of +Van Bokkelen against Hayti will probably be made, and I trust the principle +of such settlements may be extended in practice under the approval of the +Senate. + +Through unforeseen causes, foreign to the will of both Governments, the +ratification of the convention of December 5, 1885, with Venezuela, for the +rehearing of claims of citizens of the United States under the treaty of +1866, failed of exchange within the term provided, and a supplementary +convention, further extending the time for exchange of ratifications and +explanatory of an ambiguous provision of the prior convention, now awaits +the advice and consent of the Senate. + +Although this matter, in the stage referred to, concerns only the +concurrent treaty-making power of one branch of Congress, I advert to it in +view of the interest repeatedly and conspicuously shown by you in your +legislative capacity in favor of a speedy and equitable adjustment of the +questions growing out of the discredited judgments of the previous mixed +commission of Caracas. With every desire to do justice to the +representations of Venezuela in this regard, the time seems to have come to +end this matter, and I trust the prompt confirmation by both parties of the +supplementary action referred to will avert the need of legislative or +other action to prevent the longer withholding of such rights of actual +claimants as may be shown to exist. + +As authorized by the Congress, preliminary steps have been taken for the +assemblage at this capital during the coming year of the representatives of +South and Central American States, together with those of Mexico, Hayti, +and San Domingo, to discuss sundry important monetary and commercial +topics. + +Excepting in those cases where, from reasons of contiguity of territory and +the existence of a common border line incapable of being guarded, +reciprocal commercial treaties may be found expedient, it is believed that +commercial policies inducing freer mutual exchange of products can be most +advantageously arranged by independent but cooperative legislation. + +In the mode last mentioned the control of our taxation for revenue will be +always retained in our own hands unrestricted by conventional agreements +with other governments. + +In conformity also with Congressional authority, the maritime powers have +been invited to confer in Washington in April next upon the practicability +of devising uniform rules and measures for the greater security of life and +property at sea. A disposition to accept on the part of a number of the +powers has already been manifested, and if the cooperation of the nations +chiefly interested shall be secured important results may be confidently +anticipated. + +The act of June 26, 1884, and the acts amendatory thereof, in relation to +tonnage duties, have given rise to extended correspondence with foreign +nations with whom we have existing treaties of navigation and commerce, and +have caused wide and regrettable divergence of opinion in relation to the +imposition of the duties referred to. These questions are important, and I +shall make them the subject of a special and more detailed communication at +the present session. + +With the rapid increase of immigration to our shores and the facilities of +modern travel, abuses of the generous privileges afforded by our +naturalization laws call for their careful revision. + +The easy and unguarded manner in which certificates of American citizenship +can now be obtained has induced a class, unfortunately large, to avail +themselves of the opportunity to become absolved from allegiance to their +native land, and yet by a foreign residence to escape any just duty and +contribution of service to the country of their proposed adoption. Thus, +while evading the duties of citizenship to the United States, they may make +prompt claim for its national protection and demand its intervention in +their behalf. International complications of a serious nature arise, and +the correspondence of the State Department discloses the great number and +complexity of the questions which have been raised. + +Our laws regulating the issue of passports should be carefully revised, and +the institution of a central bureau of registration at the capital is again +strongly recommended. By this means full particulars of each case of +naturalization in the United States would be secured and properly indexed +and recorded, and thus many cases of spurious citizenship would be detected +and unjust responsibilities would be avoided. + +The reorganization of the consular service is a matter of serious +importance to our national interests. The number of existing principal +consular offices is believed to be greater than is at all necessary for the +conduct of the public business. It need not be our policy to maintain more +than a moderate number of principal offices, each supported by a salary +sufficient to enable the incumbent to live in comfort, and so distributed +as to secure the convenient supervision, through subordinate agencies, of +affairs over a considerable district. + +I repeat the recommendations heretofore made by me that the appropriations +for the maintenance of our diplomatic and consular service should be +recast; that the so-called notarial or unofficial fees, which our +representatives abroad are now permitted to treat as personal perquisites, +should be forbidden; that a system of consular inspection should be +instituted, and that a limited number of secretaries of legation at large +should be authorized. + +Preparations for the centennial celebration, on April 30, 1889, of the +inauguration of George Washington as President of the United States, at the +city of New York, have been made by a voluntary organization of the +citizens of that locality, and believing that an opportunity should be +afforded for the expression of the interest felt throughout the country in +this event, I respectfully recommend fitting and cooperative action by +Congress on behalf of the people of the United States. + +The report of the Secretary of the Treasury exhibits in detail the +condition of our national finances and the operations of the several +branches of the Government related to his Department. + +The total ordinary revenues of the Government for the fiscal year ended +June 30, 1888, amounted to $379,266,074.76, of which $219,091,173.63 was +received from customs duties and $124,296,871.98 from internal revenue +taxes. + +The total receipts from all sources exceeded those for the fiscal year +ended June 30, 1887, by $7,862,797.10. + +The ordinary expenditures of the Government for the fiscal year ending June +30, 1888, were $259,653,958.67, leaving a surplus of $119,612,116.09. + +The decrease in these expenditures as compared with the fiscal year ended +June 30, 1887, was $8,278,221.30, notwithstanding the payment of more than +$5,000,000 for pensions in excess of what was paid for that purpose in the +latter-mentioned year. + +The revenues of the Government for the year ending June 30, 1889, +ascertained for the quarter ended September 30, 1888, and estimated for the +remainder of the time, amount to $377,000,000, and the actual and estimated +ordinary expenditures for the same year are $273,000,000, leaving an +estimated surplus of $104,000,000. + +The estimated receipts for the year ending June 30, 1890, are $377,000,000, +and the estimated ordinary expenditures for the same time are +$275,767,488.34, showing a surplus of $101,232,511.66. + +The foregoing statements of surplus do not take into account the sum +necessary to be expended to meet the requirements of the sinking-fund act, +amounting to more than $47,000,000 annually. + +The cost of collecting the customs revenues for the last fiscal year was +2.44 per cent; for the year 1885 it was 3.77 per cent. + +The excess of internal-revenue taxes collected during the last fiscal year +over those collected for the year ended June 30, 1887, was $5,489,174.26, +and the cost of collecting this revenue decreased from 3.4 per cent in 1887 +to less than 3.2 per cent for the last year. The tax collected on +oleomargarine was $723,948.04 for the year ending June 30, 1887, and +$864,139.88 for the following year. + +The requirements of the sinking-fund act have been met for the year ended +June 30, 1888, and for the current year also, by the purchase of bonds. +After complying with this law as positively required, and bonds sufficient +for that purpose had been bought at a premium, it was not deemed prudent to +further expend the surplus in such purchases until the authority to do so +should be more explicit. A resolution, however, having been passed by both +Houses of Congress removing all doubt as to Executive authority, daily +purchases of bonds were commenced on the 23d day of April, 1888, and have +continued until the present time. By this plan bonds of the Government not +yet due have been purchased up to and including the 30th day of November, +1888, amounting to $94,700,400, the premium paid thereon amounting to +$17,508,613.08. + +The premium added to the principal of these bonds represents an investment +yielding about 2 per cent interest for the time they still had to run, and +the saving to the Government represented by the difference between the +amount of interest at 2 per cent upon the sum paid for principal and +premium and what it would have paid for interest at the rate specified in +the bonds if they had run to their maturity is about $27,165,000. + +At first sight this would seem to be a profitable and sensible transaction +on the part of the Government, but, as suggested by the Secretary of the +Treasury, the surplus thus expended for the purchase of bonds was money +drawn from the people in excess of any actual need of the Government and +was so expended rather than allow it to remain idle in the Treasury. If +this surplus, under the operation of just and equitable laws, had been left +in the hands of the people, it would have been worth in their business at +least 6 per cent per annum. Deducting from the amount of interest upon the +principal and premium of these bonds for the time they had to run at the +rate of 6 per cent the saving of 2 per cent made for the people by the +purchase of such bonds, the loss will appear to be $55,760,000. + +This calculation would seem to demonstrate that if excessive and +unnecessary taxation is continued and the Government is forced to pursue +this policy of purchasing its own bonds at the premiums which it will be +necessary to pay, the loss to the people will be hundreds of millions of +dollars. + +Since the purchase of bonds was undertaken as mentioned nearly all that +have been offered were at last accepted. It has been made quite apparent +that the Government was in danger of being subjected to combinations to +raise their price, as appears by the instance cited by the Secretary of the +offering of bonds of the par value of only $326,000 so often that the +aggregate of the sums demanded for their purchase amounted to more than $ +19,700,000. + +Notwithstanding the large sums paid out in the purchase of bonds, the +surplus in the Treasury on the 30th day of November, 1888, was +$52,234,610.01, after deducting about $20,000,000 just drawn out for the +payment of pensions. + +At the close of the fiscal year ended June 30, 1887, there had been coined +under the compulsory silver-coinage act $266,988,280 in silver dollars, +$55,504,310 of which were in the hands of the people. + +On the 30th day of June, 1888, there had been coined $299,708,790; and of +this $55,829,303 was in circulation in coin, and $200,387,376 in silver +certificates, for the redemption of which silver dollars to that amount +were held by the Government. + +On the 30th day of November, 1888, $312,570,990 had been coined, +$60,970,990 of the silver dollars were actually in circulation, and +$237,418,346 in certificates. + +The Secretary recommends the suspension of the further coinage of silver, +and in such recommendation I earnestly concur. + +For further valuable information and timely recommendations I ask the +careful attention of the Congress to the Secretary's report. + +The Secretary of War reports that the Army at the date of the last +consolidated returns consisted of 2,189 officers and 24,549 enlisted men. + +The actual expenditures of the War Department for the fiscal year ended +June 30, 1888, amounted to $41,165,107.07, of which sum $9,158,516.63 was +expended for public works, including river and harbor improvements. + +"The Board of Ordnance and Fortifications" provided for under the act +approved September 22 last was convened October 30, 1888, and plans and +specifications for procuring forgings for 8, 10, and 12 inch guns, under +provisions of section 4, and also for procuring 12-inch breech-loading +mortars, cast iron, hooped with steel, under the provisions of section 5 of +the said act, were submitted to the Secretary of War for reference to the +board, by the Ordnance Department, on the same date. + +These plans and specifications having been promptly approved by the board +and the Secretary of War, the necessary authority to publish advertisements +inviting proposals in the newspapers throughout the country was granted by +the Secretary on November 12, and on November 13 the advertisements were +sent out to the different newspapers designated. The bids for the steel +forgings are to be opened on December 20, 1888, and for the mortars on +December 15, 1888. + +A board of ordnance officers was convened at the Watervliet Arsenal on +October 4, 1888, to prepare the necessary plans and specifications for the +establishment of an army gun factory at that point. The preliminary report +of this board, with estimates for shop buildings and officers' quarters, +was approved by the Board of Ordnance and Fortifications November 6 and 8. +The specifications and form of advertisement and instructions to bidders +have been prepared, and advertisements inviting proposals for the +excavations for the shop building and for erecting the two sets of +officers' quarters have been published. The detailed drawings and +specifications for the gun-factory building are well in hand, and will be +finished within three or four months, when bids will be invited for the +erection of the building. The list of machines, etc., is made out, and it +is expected that the plans for the large lathes, etc., will be completed +within about four months, and after approval by the Board of Ordnance and +Fortifications bids for furnishing the same will be invited. The machines +and other fixtures will be completed as soon as the shop is in readiness to +receive them, probably about July, 1890. + +Under the provisions of the Army bill for the procurement of pneumatic +dynamite guns, the necessary specifications are now being prepared, and +advertisements for proposals will issue early in December. The guns will +probably be of 15 inches caliber and fire a projectile that will carry a +charge each of about 500 pounds of explosive gelatine with full-caliber +projectiles. The guns will probably be delivered in from six to ten months +from the date of the contract, so that all the guns of this class that can +be procured under the provisions of the law will be purchased during the +year 1889. + +I earnestly request that the recommendations contained in the Secretary's +report, all of which are, in my opinion, calculated to increase the +usefulness and discipline of the Army, may receive the consideration of the +Congress. Among these the proposal that there should be provided a plan for +the examination of officers to test their fitness for promotion is of the +utmost importance. This reform has been before recommended in the reports +of the Secretary, and its expediency is so fully demonstrated by the +argument he presents in its favor that its adoption should no longer be +neglected. + +The death of General Sheridan in August last was a national affliction. The +Army then lost the grandest of its chiefs. The country lost a brave and +experienced soldier, a wise and discreet counselor, and a modest and +sensible man. Those who in any manner came within the range of his personal +association will never fail to pay deserved and willing homage to his +greatness and the glory of his career, but they will cherish with more +tender sensibility the loving memory of his simple, generous, and +considerate nature. + +The Apache Indians, whose removal from their reservation in Arizona +followed the capture o£ those of their number who engaged in a bloody +and murderous raid during a part of the years 1885 and 1886, are now held +as prisoners of war at Mount Vernon Barracks, in the State of Alabama. They +numbered on the 31st day of October, the date of the last report, 83 men, +170 women, 70 boys, and 59 girls; in all, 382 persons. The commanding +officer states that they are in good health and contented, and that they +are kept employed as fully as is possible in the circumstances. The +children, as they arrive at a suitable age, are sent to the Indian schools +at Carlisle and Hampton. + +Last summer some charitable and kind people asked permission to send two +teachers to these Indians for the purpose of instructing the adults as well +as such children as should be found there. Such permission was readily +granted, accommodations were provided for the teachers, and some portions +of the buildings at the barracks were made available for school purposes. +The good work contemplated has been commenced, and the teachers engaged are +paid by the ladies with whom the plan originated. + +I am not at all in sympathy with those benevolent but injudicious people +who are constantly insisting that these Indians should be returned to their +reservation. Their removal was an absolute necessity if the lives and +property of citizens upon the frontier are to be at all regarded by the +Government. Their continued restraint at a distance from the scene of their +repeated and cruel murders and outrages is still necessary. It is a +mistaken philanthropy, every way injurious, which prompts the desire to see +these savages returned to their old haunts. They are in their present +location as the result of the best judgment of those having official +responsibility in the matter, and who are by no means lacking in kind +consideration for the Indians. A number of these prisoners have forfeited +their lives to outraged law and humanity. Experience has proved that they +are dangerous and can not be trusted. This is true not only of those who on +the warpath have heretofore actually been guilty of atrocious murder, but +of their kindred and friends, who, while they remained upon their +reservation, furnished aid and comfort to those absent with bloody intent. + +These prisoners should be treated kindly and kept in restraint far from the +locality of their former reservation; they should be subjected to efforts +calculated to lead to their improvement and the softening of their savage +and cruel instincts, but their return to their old home should be +persistently resisted. + +The Secretary in his report gives a graphic history of these Indians, and +recites with painful vividness their bloody deeds and the unhappy failure +of the Government to manage them by peaceful means. It will be amazing if a +perusal of this history will allow the survival of a desire for the return +of these prisoners to their reservation upon sentimental or any other +grounds. + +The report of the Secretary of the Navy demonstrates very intelligent +management in that important Department, and discloses the most +satisfactory progress in the work of reconstructing the Navy made during +the past year. Of the ships in course of construction five, viz, the +Charleston, Baltimore, Yorktown, Vesuvius, and the Petrel, have in that +time been launched and are rapidly approaching completion; and in addition +to the above, the Philadelphia, the San Francisco, the Newark, the +Bennington, the Concord, and the Herreshoff torpedo boat are all under +contract for delivery to the Department during the next year. The progress +already made and being made gives good ground for the expectation that +these eleven vessels will be incorporated as part of the American Navy +within the next twelve months. + +The report shows that notwithstanding the large expenditures for new +construction and the additional labor they involve the total ordinary or +current expenditures of the Department for the three years ending June 30, +1888, are less by more than 20 per cent than such expenditures for the +three years ending June 30, 1884. + +The various steps which have been taken to improve the business methods of +the Department are reviewed by the Secretary. The purchasing of supplies +has been consolidated and placed under a responsible bureau head. This has +resulted in the curtailment of open purchases, which in the years 1884 and +1885 amounted to over 50 per cent of all the purchases of the Department, +to less than 11 per cent; so that at the present time about 90 per cent of +the total departmental purchases are made by contract and after +competition. As the expenditures on this account exceed an average of +$2,000,000 annually, it is evident that an important improvement in the +system has been inaugurated and substantial economies introduced. + +The report of the Postmaster-General shows a marked increase of business in +every branch of the postal service. + +The number of post-offices on July 1, 1888, was 57,376, an increase of +6,124 in three years and of 2,219 for tthe last fiscal year. The +latter-mentioned increase is classified as follows: + +New England States - + +Middle States - 181 + +Southern States and Indian Territory (41) - 1,406 + +The States and Territories of the Pacific Coast - 190 + +The ten States and Territories of the West and Northwest - 435 + +District of Columbia - 2 - + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GROVER CLEVELAND *** + +This file should be named sucle10.txt or sucle10.zip +Corrected EDITIONS of our eBooks get a new NUMBER, sucle11.txt +VERSIONS based on separate sources get new LETTER, sucle10a.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. 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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 Grover Cleveland + +Author: Grover Cleveland + +Release Date: February, 2004 [EBook #5029] +[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 GROVER CLEVELAND *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Grover Cleveland in this eBook: + December 8, 1885 + December 6, 1886 + December 6, 1887 + December 3, 1888 + + + +*** + +State of the Union Address +Grover Cleveland +December 8, 1885 + +To the Congress of the United States: + +Your assembling is clouded by a sense of public bereavement, caused by the +recent and sudden death of Thomas A. Hendricks, Vice-President of the +United States. His distinguished public services, his complete integrity +and devotion to every duty, and his personal virtues will find honorable +record in his country's history. + +Ample and repeated proofs of the esteem and confidence in which he was held +by his fellow-countrymen were manifested by his election to offices of the +most important trust and highest dignity; and at length, full of years and +honors, he has been laid at rest amid universal sorrow and benediction. + +The Constitution, which requires those chosen to legislate for the people +to annually meet in the discharge of their solemn trust, also requires the +President to give to Congress information of the state of the Union and +recommend to their consideration such measures as he shall deem necessary +and expedient. At the threshold of a compliance with these constitutional +directions it is well for us to bear in mind that our usefulness to the +people's interests will be promoted by a constant appreciation of the scope +and character of our respective duties as they relate to Federal +legislation. While the Executive may recommend such measures as he shall +deem expedient, the responsibility for legislative action must and should +rest upon those selected by the people to make their laws. + +Contemplation of the grave and responsible functions assigned to the +respective branches of the Government under the Constitution will disclose +the partitions of power between our respective departments and their +necessary independence, and also the need for the exercise of all the power +intrusted to each in that spirit of comity and cooperation which is +essential to the proper fulfillment of the patriotic obligations which rest +upon us as faithful servants of the people. + +The jealous watchfulness of our constituencies, great and small, +supplements their suffrages, and before the tribunal they establish every +public servant should be judged. + +It is gratifying to announce that the relations of the United States with +all foreign powers continue to be friendly. Our position after nearly a +century of successful constitutional government, maintenance of good faith +in all our engagements, the avoidance of complications with other nations, +and our consistent and amicable attitude toward the strong and weak alike +furnish proof of a political disposition which renders professions of good +will unnecessary. There are no questions of difficulty pending with any +foreign government. + +The Argentine Government has revived the long dormant question of the +Falkland Islands by claiming from the United States indemnity for their +loss, attributed to the action of the commander of the sloop of war +Lexington in breaking up a piratical colony on those islands in 1831, and +their subsequent occupation by Great Britain. In view of the ample +justification for the act of the Lexington and the derelict condition of +the islands before and after their alleged occupation by Argentine +colonists, this Government considers the claim as wholly groundless. + +Question has arisen with the Government of Austria-Hungary touching the +representation of the United States at Vienna. Having under my +constitutional prerogative appointed an estimable citizen of unimpeached +probity and competence as minister at that court, the Government of +Austria-Hungary invited this Government to take cognizance of certain +exceptions, based upon allegations against the personal acceptability of +Mr. Keiley, the appointed envoy, asking that in view thereof the +appointment should be withdrawn. The reasons advanced were such as could +not be acquiesced in without violation of my oath of office and the +precepts of the Constitution, since they necessarily involved a limitation +in favor of a foreign government upon the right of selection by the +Executive and required such an application of a religious test as a +qualification for office under the United States as would have resulted in +the practical disfranchisement of a large class of our citizens and the +abandonment of a vital principle in our Government. The Austro-Hungarian +Government finally decided not to receive Mr. Keiley as the envoy of the +United States, and that gentleman has since resigned his commission, +leaving the post vacant. I have made no new nomination, and the interests +of this Government at Vienna are now in the care of the secretary of +legation, acting as charge d'affaires ad interim. + +Early in March last war broke out in Central America, caused by the attempt +of Guatemala to consolidate the several States into a single government. In +these contests between our neighboring States the United States forebore to +interfere actively, but lent the aid of their friendly offices in +deprecation of war and to promote peace and concord among the belligerents, +and by such counsel contributed importantly to the restoration of +tranquillity in that locality. + +Emergencies growing out of civil war in the United States of Colombia +demanded of the Government at the beginning of this Administration the +employment of armed forces to fulfill its guaranties under the thirty-fifth +article of the treaty of 1846, in order to keep the transit open across the +Isthmus of Panama. Desirous of exercising only the powers expressly +reserved to us by the treaty, and mindful of the rights of Colombia, the +forces sent to the Isthmus were instructed to confine their action to +"positively and efficaciously" preventing the transit and its accessories +from being "interrupted or embarrassed." + +The execution of this delicate and responsible task necessarily involved +police control where the local authority was temporarily powerless, but +always in aid of the sovereignty of Colombia. + +The prompt and successful fulfillment of its duty by this Government was +highly appreciated by the Government of Colombia, and has been followed by +expressions of its satisfaction. + +High praise is due to the officers and men engaged in this service. The +restoration of peace on the Isthmus by the reestablishment of the +constituted Government there being thus accomplished, the forces of the +United States were withdrawn. + +Pending these occurrences a question of much importance was presented by +decrees of the Colombian Government proclaiming the closure of certain +ports then in the hands of insurgents and declaring vessels held by the +revolutionists to be piratical and liable to capture by any power. To +neither of these propositions could the United States assent. An effective +closure of ports not in the possession of the Government, but held by +hostile partisans, could not be recognized; neither could the vessels of +insurgents against the legitimate sovereignty be deemed hostes humani +generis within the precepts of international law, whatever might be the +definition and penalty of their acts under the municipal law of the State +against whose authority they were in revolt. The denial by this Government +of the Colombian propositions did not, however, imply the admission of a +belligerent status on the part of the insurgents. + +The Colombian Government has expressed its willingness to negotiate +conventions for the adjustment by arbitration of claims by foreign citizens +arising out of the destruction of the city of Aspinwall by the +insurrectionary forces. + +The interest of the United States in a practicable transit for ships across +the strip of land separating the Atlantic from the Pacific has been +repeatedly manifested during the last half century. + +My immediate predecessor caused to be negotiated with Nicaragua a treaty +for the construction, by and at the sole cost of the United States, of a +canal through Nicaraguan territory, and laid it before the Senate. Pending +the action of that body thereon, I withdrew the treaty for reexamination. +Attentive consideration of its provisions leads me to withhold it from +resubmission to the Senate. + +Maintaining, as I do, the tenets of a line of precedents from Washington's +day, which proscribe entangling alliances with foreign states, I do not +favor a policy of acquisition of new and distant territory or the +incorporation of remote interests with our own. + +The laws of progress are vital and organic, and we must be conscious of +that irresistible tide of commercial expansion which, as the concomitant of +our active civilization, day by day is being urged onward by those +increasing facilities of production, transportation, and communication to +which steam and electricity have given birth; but our duty in the present +instructs us to address ourselves mainly to the development of the vast +resources of the great area committed to our charge and to the cultivation +of the arts of peace within our own borders, though jealously alert in +preventing the American hemisphere from being involved in the political +problems and complications of distant governments. Therefore I am unable to +recommend propositions involving paramount privileges of ownership or +right outside of our own territory, when coupled with absolute and +unlimited engagements to defend the territorial integrity of the state +where such interests lie. While the general project of connecting the two +oceans by means of a canal is to be encouraged, I am of opinion that any +scheme to that end to be considered with favor should be free from the +features alluded to. + +The Tehuantepec route is declared by engineers of the highest repute and by +competent scientists to afford an entirely practicable transit for vessels +and cargoes, by means of a ship railway, from the Atlantic to the Pacific. +The obvious advantages of such a route, if feasible, over others more +remote from the axial lines of traffic between Europe and the pacific, and +particularly between the Valley of the Mississippi and the western coast of +North and South America, are deserving of consideration. + +Whatever highway may be constructed across the barrier dividing the two +greatest maritime areas of the world must be for the world's benefit--a +trust for mankind, to be removed from the chance of domination by any +single power, nor become a point of invitation for hostilities or a prize +for warlike ambition. An engagement combining the construction, ownership, +and operation of such a work by this Government, with an offensive and +defensive alliance for its protection, with the foreign state whose +responsibilities and rights we would share is, in my judgment, inconsistent +with such dedication to universal and neutral use, and would, moreover, +entail measures for its realization beyond the scope of our national polity +or present means. + +The lapse of years has abundantly confirmed the wisdom and foresight of +those earlier Administrations which, long before the conditions of maritime +intercourse were changed and enlarged by the progress of the age, +proclaimed the vital need of interoceanic transit across the American +Isthmus and consecrated it in advance to the common use of mankind by their +positive declarations and through the formal obligation of treaties. Toward +such realization the efforts of my Administration will be applied, ever +bearing in mind the principles on which it must rest, and which were +declared in no uncertain tones by Mr. Cass, who, while Secretary of State, +in 1858, announced that "what the United States want in Central America, +next to the happiness of its people, is the security and neutrality of the +interoceanic routes which lead through it." + +The construction of three transcontinental lines of railway, all in +successful operation, wholly within our territory, and uniting the Atlantic +and the Pacific oceans, has been accompanied by results of a most +interesting and impressive nature, and has created new conditions, not in +the routes of commerce only, but in political geography, which powerfully +affect our relations toward and necessarily increase our interests in any +transisthmian route which may be opened and employed for the ends of peace +and traffic, or, in other contingencies, for uses inimical to both. + +Transportation is a factor in the cost of commodities scarcely second to +that of their production, and weighs as heavily upon the consumer. + +Our experience already has proven the great importance of having the +competition between land carriage and water carriage fully developed, each +acting as a protection to the public against the tendencies to monopoly +which are inherent in the consolidation of wealth and power in the hands of +vast corporations. + +These suggestions may serve to emphasize what I have already said on the +score of the necessity of a neutralization of any interoceanic transit; and +this can only be accomplished by making the uses of the route open to all +nations and subject to the ambitions and warlike necessities of none. + +The drawings and report of a recent survey of the Nicaragua Canal route, +made by Chief Engineer Menocal, will be communicated for your information. + +The claims of citizens of the United States for losses by reason of the +late military operations of Chile in Peru and Bolivia are the subject of +negotiation for a claims convention with Chile, providing for their +submission to arbitration. + +The harmony of our relations with China is fully sustained. + +In the application of the acts lately passed to execute the treaty of 1880, +restrictive of the immigration of Chinese laborers into the United States, +individual cases of hardship have occurred beyond the power of the +Executive to remedy, and calling for judicial determination. + +The condition of the Chinese question in the Western States and Territories +is, despite this restrictive legislation, far from being satisfactory. The +recent outbreak in Wyoming Territory, where numbers of unoffending +Chinamen, indisputably within the protection of the treaties and the law, +were murdered by a mob, and the still more recent threatened outbreak of +the same character in Washington Territory, are fresh in the minds of all, +and there is apprehension lest the bitterness of feeling against the +Mongolian race on the Pacific Slope may find vent in similar lawless +demonstrations. All the power of this Government should be exerted to +maintain the amplest good faith toward China in the treatment of these men, +and the inflexible sternness of the law in bringing the wrongdoers to +justice should be insisted upon. + +Every effort has been made by this Government to prevent these violent +outbreaks and to aid the representatives of China in their investigation of +these outrages; and it is but just to say that they are traceable to the +lawlessness of men not citizens of the United States engaged in competition +with Chinese laborers. + +Race prejudice is the chief factor in originating these disturbances, and +it exists in a large part of our domain, jeopardizing our domestic peace +and the good relationship we strive to maintain with China. + +The admitted right of a government to prevent the influx of elements +hostile to its internal peace and security may not be questioned, even +where there is no treaty stipulation on the subject. That the exclusion of +Chinese labor is demanded in other countries where like conditions prevail +is strongly evidenced in the Dominion of Canada, where Chinese immigration +is now regulated by laws more exclusive than our own. If existing laws are +inadequate to compass the end in view, I shall be prepared to give earnest +consideration to any further remedial measures, within the treaty limits, +which the wisdom of Congress may devise. + +The independent State of the Kongo has been organized as a government under +the sovereignty of His Majesty the King of the Belgians, who assumes its +chief magistracy in his personal character only, without making the new +State a dependency of Belgium. It is fortunate that a benighted region, +owing all it has of quickening civilization to the beneficence and +philanthropic spirit of this monarch, should have the advantage and +security of his benevolent supervision. + +The action taken by this Government last year in being the first to +recognize the flag of the International Association of the Kongo has been +followed by formal recognition of the new nationality which succeeds to its +sovereign powers. + +A conference of delegates of the principal commercial nations was held at +Berlin last winter to discuss methods whereby the Kongo basin might be kept +open to the world's trade. Delegates attended on behalf of the United +States on the understanding that their part should be merely deliberative, +without imparting to the results any binding character so far as the United +States were concerned. This reserve was due to the indisposition of this +Government to share in any disposal by an international congress of +jurisdictional questions in remote foreign territories. The results of the +conference were embodied in a formal act of the nature of an international +convention, which laid down certain obligations purporting to be binding on +the signatories, subject to ratification within one year. Notwithstanding +the reservation under which the delegates of the United States attended, +their signatures were attached to the general act in the same manner as +those of the plenipotentiaries of other governments, thus making the United +States appear, without reserve or qualification, as signatories to a joint +international engagement imposing on the signers the conservation of the +territorial integrity of distant regions where we have no established +interests or control. + +This Government does not, however, regard its reservation of liberty of +action in the premises as at all impaired; and holding that an engagement +to share in the obligation of enforcing neutrality in the remote valley of +the Kongo would be an alliance whose responsibilities we are not in a +position to assume, I abstain from asking the sanction of the Senate to +that general act. + +The correspondence will be laid before you, and the instructive and +interesting report of the agent sent by this Government to the Kongo +country and his recommendations for the establishment of commercial +agencies on the African coast are also submitted for your consideration. + +The commission appointed by my predecessor last winter to visit the Central +and South American countries and report on the methods of enlarging the +commercial relations of the United States therewith has submitted reports, +which will be laid before you. + +No opportunity has been omitted to testify the friendliness of this +Government toward Korea, whose entrance into the family of treaty powers +the United States were the first to recognize. I regard with favor the +application made by the Korean Government to be allowed to employ American +officers as military instructors, to which the assent of Congress becomes +necessary, and I am happy to say this request has the concurrent sanction +of China and Japan. + +The arrest and imprisonment of Julio R. Santos, a citizen of the United +States, by the authorities of Ecuador gave rise to a contention with that +Government, in which his right to be released or to have a speedy and +impartial trial on announced charges and with all guaranties of defense +stipulated by treaty was insisted upon by us. After an elaborate +correspondence and repeated and earnest representations on our part Mr. +Santos was, after an alleged trial and conviction, eventually included in a +general decree of amnesty and pardoned by the Ecuadorian Executive and +released, leaving the question of his American citizenship denied by the +Ecuadorian Government, but insisted upon by our own. + +The amount adjudged by the late French and American Claims Commission to be +due from the United States to French claimants on account of injuries +suffered by them during the War of Secession, having been appropriated by +the last Congress, has been duly paid to the French Government. + +The act of February 25, 1885, provided for a preliminary search of the +records of French prize courts for evidence bearing on the claims of +American citizens against France for spoliations committed prior to 1801. +The duty has been performed, and the report of the agent will be laid +before you. + +I regret to say that the restrictions upon the importation of our pork into +France continue, notwithstanding the abundant demonstration of the absence +of sanitary danger in its use; but I entertain strong hopes that with a +better understanding of the matter this vexatious prohibition will be +removed. It would be pleasing to be able to say as much with respect to +Germany, Austria, and other countries, where such food products are +absolutely excluded, without present prospect of reasonable change. + +The interpretation of our existing treaties of naturalization by Germany +during the past year has attracted attention by reason of an apparent +tendency on the part of the Imperial Government to extend the scope of the +residential restrictions to which returning naturalized citizens of German +origin are asserted to be liable under the laws of the Empire. The +temperate and just attitude taken by this Government with regard to this +class of questions will doubtless lead to a satisfactory understanding. + +The dispute of Germany and Spain relative to the domination of the Caroline +Islands has attracted the attention of this Government by reason of +extensive interests of American citizens having grown up in those parts +during the past thirty years, and because the question of ownership +involves jurisdiction of matters affecting the status of our citizens under +civil and criminal law. While standing wholly aloof from the proprietary +issues raised between powers to both of which the United States are +friendly, this Government expects that nothing in the present contention +shall unfavorably affect our citizens carrying on a peaceful commerce or +there domiciled, and has so informed the Governments of Spain and Germany. + +The marked good will between the United States and Great Britain has been +maintained during the past year. + +The termination of the fishing clauses of the treaty of Washington, in +pursuance of the joint resolution of March 3, 1883, must have resulted in +the abrupt cessation on the 1st of July of this year, in the midst of their +ventures, of the operations of citizens of the United States engaged in +fishing in British American waters but for a diplomatic understanding +reached with Her Majesty's Government in June last, whereby assurance was +obtained that no interruption of those operations should take place during +the current fishing season. + +In the interest of good neighborhood and of the commercial intercourse of +adjacent communities, the question of the North American fisheries is one +of much importance. Following out the intimation given by me when the +extensory arrangement above described was negotiated, I recommend that the +Congress provide for the appointment of a commission in which the +Governments of the United States and Great Britain shall be respectively +represented, charged with the consideration and settlement, upon a just, +equitable, and honorable basis, of the entire question of the fishing +rights of the two Governments and their respective citizens on the coasts +of the United States and British North America. The fishing interests being +intimately related to other general questions dependent upon contiguity and +intercourse, consideration thereof in all their equities might also +properly come within the purview of such a commission, and the fullest +latitude of expression on both sides should be permitted. + +The correspondence in relation to the fishing rights will be submitted. The +arctic exploring steamer Alert, which was generously given by Her Majesty's +Government to aid in the relief of the Greely expedition, was, after the +successful attainment of that humane purpose, returned to Great Britain, in +pursuance of the authority conferred by the act of March 3, 1885. + +The inadequacy of the existing engagements for extradition between the +United States and Great Britain has been long apparent. The tenth article +of the treaty of 1842, one of the earliest compacts in this regard entered +into by us, stipulated for surrender in respect of a limited number of +offenses. Other crimes no less inimical to the social welfare should be +embraced and the procedure of extradition brought in harmony with present +international practice. Negotiations with Her Majesty's Government for an +enlarged treaty of extradition have been pending since 1870, and I +entertain strong hopes that a satisfactory result may be soon attained. + +The frontier line between Alaska and British Columbia, as defined by the +treaty of cession with Russia, follows the demarcation assigned in a prior +treaty between Great Britain and Russia. Modern exploration discloses that +this ancient boundary is impracticable as a geographical fact. In the +unsettled condition of that region the question has lacked importance, but +the discovery of mineral wealth in the territory the line is supposed to +traverse admonishes that the time has come when an accurate knowledge of +the boundary is needful to avert jurisdictional complications. I recommend, +therefore, that provision be made for a preliminary reconnoissance by +officers of the United States, to the end of acquiring more precise +information on the subject. I have invited Her Majesty's Government to +consider with us the adoption of a more convenient line, to be established +by meridian observations or by known geographical features without the +necessity of an expensive survey of the whole. + +The late insurrectionary movements in Hayti having been quelled, the +Government of that Republic has made prompt provision for adjudicating the +losses suffered by foreigners because of hostilities there, and the claims +of certain citizens of the United States will be in this manner +determined. + +The long-pending claims of two citizens of the United States, Pelletier and +Lazare, have been disposed of by arbitration, and an award in favor of each +claimant has been made, which by the terms of the engagement is final. It +remains for Congress to provide for the payment of the stipulated moiety of +the expenses. + +A question arose with Hayti during the past year by reason of the +exceptional treatment of an American citizen, Mr. Van Bokkelen, a resident +of Port-au-Prince, who, on suit by creditors residing in the United States, +was sentenced to imprisonment, and, under the operation of a Haytian +statute, was denied relief secured to a native Haytian. This Government +asserted his treaty right to equal treatment with natives of Hayti in all +suits at law. Our contention was denied by the Haytian Government, which, +however, while still professing to maintain the ground taken against Mr. +Van Bokkelen's right, terminated the controversy by setting him at liberty +without explanation. + +An international conference to consider the means of arresting the spread +of cholera and other epidemic diseases was held at Rome in May last, and +adjourned to meet again on further notice. An expert delegate on behalf of +the United States has attended its sessions and will submit a report. + +Our relations with Mexico continue to be most cordial, as befits those of +neighbors between whom the strongest ties of friendship and commercial +intimacy exist, as the natural and growing consequence of our similarity of +institutions and geographical propinquity. + +The relocation of the boundary line between the United States and Mexico +westward of the Rio Grande, under the convention of July 29, 1882, has been +unavoidably delayed, but I apprehend no difficulty in securing a +prolongation of the period for its accomplishment. + +The lately concluded commercial treaty with Mexico still awaits the +stipulated legislation to carry its provisions into effect, for which one +year's additional time has been secured by a supplementary article signed +in February last and since ratified on both sides. + +As this convention, so important to the commercial welfare of the two +adjoining countries, has been constitutionally confirmed by the treaty- +making branch, I express the hope that legislation needed to make it +effective may not be long delayed. + +The large influx of capital and enterprise to Mexico from the United States +continues to aid in the development of the resources and in augmenting the +material well-being of our sister Republic. Lines of railway, penetrating +to the heart and capital of the country, bring the two peoples into +mutually beneficial intercourse, and enlarged facilities of transit add to +profitable commerce, create new markets, and furnish avenues to otherwise +isolated communities. + +I have already adverted to the suggested construction of a ship railway +across the narrow formation of the territory of Mexico at Tehuantepec. + +With the gradual recovery of Peru from the effects of her late disastrous +conflict with Chile, and with the restoration of civil authority in that +distracted country, it is hoped that pending war claims of our citizens +will be adjusted. + +In conformity with notification given by the Government of Peru, the +existing treaties of commerce and extradition between the United States and +that country will terminate March 31, 1886. + +Our good relationship with Russia continues. + +An officer of the Navy, detailed for the purpose, is now on his way to +Siberia bearing the testimonials voted by Congress to those who generously +succored the survivors of the unfortunate Jeannette expedition. + +It is gratifying to advert to the cordiality of our intercourse with +Spain. + +The long-pending claim of the owners of the ship Masonic for loss suffered +through the admitted dereliction of the Spanish authorities in the +Philippine Islands has been adjusted by arbitration and an indemnity +awarded. The principle of arbitration in such cases, to which the United +States have long and consistently adhered, thus receives a fresh and +gratifying confirmation. + +Other questions with Spain have been disposed of or are under diplomatic +consideration with a view to just and honorable settlement. + +The operation of the commercial agreement with Spain of January 2--February +13, 1884, has been found inadequate to the commercial needs of the United +States and the Spanish Antilies, and the terms of the agreement are +subjected to conflicting interpretations in those islands. + +Negotiations have been instituted at Madrid for a full treaty not open to +these objections and in the line of the general policy touching the +neighborly intercourse of proximate communities, to which I elsewhere +advert, and aiming, moreover, at the removal of existing burdens and +annoying restrictions; and although a satisfactory termination is promised, +I am compelled to delay its announcement. + +An international copyright conference was held at Berne in September, on +the invitation of the Swiss Government. The envoy of the United States +attended as a delegate, but refrained from committing this Government to +the results, even by signing the recommendatory protocol adopted. The +interesting and important subject of international copyright has been +before you for several years. Action is certainly desirable to effect the +object in view; and while there may be question as to the relative +advantage of treating it by legislation or by specific treaty, the matured +views of the Berne conference can not fail to aid your consideration of the +subject. + +The termination of the commercial treaty of 1862 between the United States +and Turkey has been sought by that Government. While there is question as +to the sufficiency of the notice of termination given, yet as the +commercial rights of our citizens in Turkey come under the favored-nation +guaranties of the prior treaty of 1830, and as equal treatment is admitted +by the Porte, no inconvenience can result from the assent of this +Government to the revision of the Ottoman tariffs, in which the treaty +powers have been invited to join. + +Questions concerning our citizens in Turkey may be affected by the Porte's +nonacquiescence in the right of expatriation and by the imposition of +religious tests as a condition of residence, in which this Government can +not concur. The United States must hold in their intercourse with every +power that the status of their citizens is to be respected and equal civil +privileges accorded to them without regard to creed, and affected by no +considerations save those growing out of domiciliary return to the land of +original allegiance or of unfulfilled personal obligations which may +survive, under municipal laws, after such voluntary return. + +The negotiation with Venezuela relative to the rehearing of the awards of +the mixed commission constituted under the treaty of 1866 was resumed in +view of the recent acquiescence of the Venezuelan envoy in the principal +point advanced by this Government, that the effects of the old treaty could +only be set aside by the operation of a new convention. A result in +substantial accord with the advisory suggestions contained in the joint +resolution of March 3, 1883, has been agreed upon and will shortly be +submitted to the Senate for ratification. + +Under section 3659 of the Revised Statutes all funds held in trust by the +United States and the annual interest accruing thereon, when not otherwise +required by treaty, are to be invested in stocks of the United States +bearing a rate of interest not less than 5 per cent per annum. There being +now no procurable stocks paying so high a rate of interest, the letter of +the statute is at present inapplicable, but its spirit is subserved by +continuing to make investments of this nature in current stocks bearing the +highest interest now paid. The statute, however, makes no provision for the +disposal of such accretions. It being contrary to the general rule of this +Government to allow interest on claims, I recommend the repeal of the +provision in question and the disposition, under a uniform rule, of the +present accumulations from investment of trust funds. + +The inadequacy of existing legislation touching citizenship and +naturalization demands your consideration. + +While recognizing the right of expatriation, no statutory provision exists +providing means for renouncing citizenship by an American citizen, native +born or naturalized, nor for terminating and vacating an improper +acquisition of citizenship. Even a fraudulent decree of naturalization can +not now be canceled. The privilege and franchise of American citizenship +should be granted with care, and extended to those only who intend in good +faith to assume its duties and responsibilities when attaining its +privileges and benefits. It should be withheld from those who merely go +through the forms of naturalization with the intent of escaping the duties +of their original allegiance without taking upon themselves those of their +new status, or who may acquire the rights of American citizenship for no +other than a hostile purpose toward their original governments. These evils +have had many flagrant illustrations. + +I regard with favor the suggestion put forth by one of my predecessors that +provision be made for a central bureau of record of the decrees of +naturalization granted by the various courts throughout the United States +now invested with that power. + +The rights which spring from domicile in the United States, especially when +coupled with a declaration of intention to become a citizen, are worthy of +definition by statute. The stranger coming hither with intent to remain, +establishing his residence in our midst, contributing to the general +welfare, and by his voluntary act declaring his purpose to assume the +responsibilities of citizenship, thereby gains an inchoate status which +legislation may properly define. The laws of certain States and Territories +admit a domiciled alien to the local franchise, conferring on him the +rights of citizenship to a degree which places him in the anomalous +position of being a citizen of a State and yet not of the United States +within the purview of Federal and international law. + +It is important within the scope of national legislation to define this +right of alien domicile as distinguished from Federal naturalization. + +The commercial relations of the United States with their immediate +neighbors and with important areas of traffic near our shores suggest +especially liberal intercourse between them and us. + +Following the treaty of 1883 with Mexico, which rested on the basis of a +reciprocal exemption from customs duties, other similar treaties were +initiated by my predecessor. + +Recognizing the need of less obstructed traffic with Cuba and Puerto Rico, +and met by the desire of Spain to succor languishing interests in the +Antilles, steps were taken to attain those ends by a treaty of commerce. A +similar treaty was afterwards signed by the Dominican Republic. +Subsequently overtures were made by Her Britannic Majesty's Government for +a like mutual extension of commercial intercourse with the British West +Indian and South American dependencies, but without result. + +On taking office I withdrew for reexamination the treaties signed with +Spain and Santo Domingo, then pending before the Senate. The result has +been to satisfy me of the inexpediency of entering into engagements of this +character not covering the entire traffic. + +These treaties contemplated the surrender by the United States of large +revenues for inadequate considerations. Upon sugar alone duties were +surrendered to an amount far exceeding all the advantages offered in +exchange. Even were it intended to relieve our consumers, it was evident +that so long as the exemption but partially covered our importation such +relief would be illusory. To relinquish a revenue so essential seemed +highly improvident at a time when new and large drains upon the Treasury +were contemplated. Moreover, embarrassing questions would have arisen under +the favored-nation clauses of treaties with other nations. + +As a further objection, it is evident that tariff regulation by treaty +diminishes that independent control over its own revenues which is +essential for the safety and welfare of any government. Emergency calling +for an increase of taxation may at any time arise, and no engagement with a +foreign power should exist to hamper the action of the Government. + +By the fourteenth section of the shipping act approved June 26, 1884, +certain reductions and contingent exemptions from tonnage dues were made as +to vessels entering ports of the United States from any foreign port in +North and Central America, the West India Islands, the Bahamas and +Bermudas, Mexico, and the Isthmus as far as Aspinwall and Panama. The +Governments of Belgium, Denmark, Germany, Portugal, and Sweden and Norway +have asserted, under the favored-nation clause in their treaties with the +United States, a claim to like treatment in respect of vessels coming to +the United States from their home ports. This Government, however, holds +that the privileges granted by the act are purely geographical, inuring to +any vessel of any foreign power that may choose to engage in traffic +between this country and any port within the defined zone, and no warrant +exists under the most-favored-nation clause for the extension of the +privileges in question to vessels sailing to this country from ports +outside the limitation of the act. + +Undoubtedly the relations of commerce with our near neighbors, whose +territories form so long a frontier line difficult to be guarded, and who +find in our country, and equally offer to us, natural markets, demand +special and considerate treatment. It rests with Congress to consider what +legislative action may increase facilities of intercourse which contiguity +makes natural and desirable. + +I earnestly urge that Congress recast the appropriations for the +maintenance of the diplomatic and consular service on a footing +commensurate with the importance of our national interests. At every post +where a representative is necessary the salary should be so graded as to +permit him to live with comfort. With the assignment of adequate salaries +the so-called notarial extra official fees, which our officers abroad are +now permitted to treat as personal perquisites, should be done away with. +Every act requiring the certification and seal of the officer should be +taxable at schedule rates and the fee therefor returned to the Treasury. By +restoring these revenues to the public use the consular service would be +self-supporting, even with a liberal increase of the present low salaries. + +In further prevention of abuses a system of consular inspection should be +instituted. + +The appointment of a limited number of secretaries of legation at large, to +be assigned to duty wherever necessary, and in particular for temporary +service at missions which for any cause may be without a head, should also +be authorized. + +I favor also authorization for the detail of officers of the regular +service as military or naval attaches at legations. + +Some foreign governments do not recognize the union of consular with +diplomatic functions. Italy and Venezuela will only receive the appointee +in one of his two capacities, but this does not prevent the requirement of +a bond and submission to the responsibilities of an office whose duties he +can not discharge. The superadded title of consul-general should be +abandoned at all missions. + +I deem it expedient that a well-devised measure for the reorganization of +the extraterritorial courts in Oriental countries should replace the +present system, which labors under the disadvantage of combining judicial +and executive functions in the same office. + +In several Oriental countries generous offers have been made of premises +for housing the legations of the United States. A grant of land for that +purpose was made some years since by Japan, and has been referred to in the +annual messages of my predecessor. The Siamese Government has made a gift +to the United States of commodious quarters in Bangkok. In Korea the late +minister was permitted to purchase a building from the Government for +legation use. In China the premises rented for the legation are favored as +to local charges. At Tangier the house occupied by our representative has +been for many years the property; this Government, having been given for +that purpose in 1822 by the Sultan of Morocco. I approve the suggestion +heretofore made, that, view of the conditions of life and administration in +the Eastern countries, the legation buildings in China, Japan, Korea, Siam, +and perhaps Persia, should be owned and furnished by the Government with a +view to permanency and security. To this end I recommend that authority be +given to accept the gifts adverted to in Japan and Siam, and to purchase in +the other countries named, with provision for furniture and repairs. A +considerable saving in rentals would result. + +The World's Industrial Exposition, held at New Orleans last winter, with +the assistance of the Federal Government, attracted a large number of +foreign exhibits, and proved of great value in spreading among the +concourse of visitors from Mexico and Central and South America a wider +knowledge of the varied manufactures and productions of this country and +their availability in exchange for the productions of those regions. + +Past Congresses have had under consideration the advisability of abolishing +the discrimination made by the tariff laws in favor of the works of +American artists. The odium of the policy which subjects to a high rate of +duty the paintings of foreign artists and exempts the productions of +American artists residing abroad, and who receive gratuitously advantages +and instruction, is visited upon our citizens engaged in art culture in +Europe, and has caused them with practical unanimity to favor the abolition +of such an ungracious distinction; and in their interest, and for other +obvious reasons, I strongly recommend it. + +The report of the Secretary of the Treasury fully exhibits the condition of +the public finances and of the several branches of the Government connected +with his Department. The suggestions of the Secretary relating to the +practical operations of this important Department, and his recommendations +in the direction of simplification and economy, particularly in the work of +collecting customs duties, are especially urged upon the attention of +Congress. + +The ordinary receipts from all sources for the fiscal year ended June 30, +1885, were $322,690,706.38. Of this sum $181,471,939.34 was received from +customs and $112,498,725.54 from internal revenue. The total receipts, as +given above, were $24,829,163.54 less than those for the year ended June +30, 1884. This diminution embraces a falling off of $13,595,550.42 in the +receipts from customs and $9,687,346.97 in the receipts from internal +revenue. + +The total ordinary expenditures of the Government for the fiscal year were +$260,226,935.50, leaving a surplus in the Treasury at the close of the year +of $63,463,771.27. This is $40,929,854.32 less than the surplus reported at +the close of the previous year. + +The expenditures are classified as follows: + +The amount paid on the public debt during the fiscal year ended June 30, +1885, was $45,993,235.43, and there has been paid since that date and up to +November 1, 1885, the sum of $369,828, leaving the amount of the debt at +the last-named date $1,514,475,860.47. There was however, at that time in +the Treasury, applicable to the general purposes of the Government, the sum +of $66,818,292.38. + +The total receipts for the current fiscal year ending June 30, 1886, +ascertained to October 1, 1885, and estimated for the remainder of the +year, are $315,000,000. The expenditures ascertained and estimated for the +same time are $245,000,000, leaving a surplus at the close of the year +estimated at $70,000,000. + +The value of the exports from the United States to foreign countries during +the last fiscal year was as follows: + +Some of the principal exports, with their values and the percentage they +respectively bear to the total exportation, are given as follows: + +Our imports during the year were as follows: + +The following are given as prominent articles of import during the year, +with their values and the percentage they bear to the total importation: + +Of the entire amount of duties collected 70 per cent was collected from the +following articles of import: + +The fact that our revenues are in excess of the actual needs of all +economical administration of the Government justifies a reduction in the +amount exacted from the people for its support. Our Government is but the +means established by the will of a free people by which certain principles +are applied which they have adopted for their benefit and protection; and +it is never better administered and its true spirit is never better +observed than when the people's taxation for its support is scrupulously +limited to the actual necessity of expenditure and distributed according to +a just and equitable plan. + +The proposition with which we have to deal is the reduction of the revenue +received by the Government, and indirectly paid by the people, from customs +duties. The question of free trade is not involved, nor is there now any +occasion for the general discussion of the wisdom or expediency of a +protective system. + +Justice and fairness dictate that in any modification of our present laws +relating to revenue the industries and interests which have been encouraged +by such laws, and in which our citizens have large investments, should not +be ruthlessly injured or destroyed. We should also deal with the subject in +such manner as to protect the interests of American labor, which is the +capital of our workingmen. Its stability and proper remuneration furnish +the most justifiable pretext for a protective policy. + +Within these limitations a certain reduction should be made in our customs +revenue. The amount of such reduction having been determined, the inquiry +follows, Where can it best be remitted and what articles can best be +released from duty in the interest of our citizens? + +I think the reduction should be made in the revenue derived from a tax upon +the imported necessaries of life. We thus directly lessen the cost of +living in every family of the land and release to the people in every +humble home a larger measure of the rewards of frugal industry. + +During the year ended November 1, 1885, 145 national banks were organized, +with an aggregate capital of $16,938,000, and circulating notes have been +issued to them amounting to $4,274,910. The whole number of these banks in +existence on the day above mentioned was 2,727. + +The very limited amount of circulating notes issued by our national banks, +compared with the amount the law permits them to issue upon a deposit of +bonds for their redemption, indicates that the volume of our circulating +medium may be largely increased through this instrumentality. + +Nothing more important than the present condition of our currency and +coinage can claim your attention. + +Since February, 1878, the Government has, under the compulsory provisions +of law, purchased silver bullion and coined the same at the rate of more +than $2,000,000 every month. By this process up to the present date +215,759,431 silver dollars have been coined. + +A reasonable appreciation of a delegation of power to the General +Government would limit its exercise, without express restrictive words, to +the people's needs and the requirements of the public welfare. + +Upon this theory the authority to "coin money" given to Congress by the +Constitution, if it permits the purchase by the Government of bullion for +coinage in any event, does not justify such purchase and coinage to an +extent beyond the amount needed for a sufficient circulating medium. + +The desire to utilize the silver product of the country should not lead to +a misuse or the perversion of this power. + +The necessity for such an addition to the silver currency of the nation as +is compelled by the silver-coinage act is negatived by the fact that up to +the present time only about 50,000,000 of the silver dollars so coined have +actually found their way into circulation, leaving more than 165,000,000 in +the possession of the Government, the custody of which has entailed a +considerable expense for the construction of vaults for it deposit. Against +this latter amount there are outstanding silver certificates amounting to +about $93,000,000. + +Every month two millions of gold in the public Treasury are paid our for +two millions or more of silver dollars, to be added to the idle mass +already accumulated. + +If continued long enough, this operation will result in the substitution of +silver for all the gold the Government owns applicable to its general +purposes. It will not do to rely upon the customs receipts of the +Government to make good this drain of gold, because the silver thus coined +having been made legal tender for all debts and dues, public and private, +at times during the last six months 58 per cent of the receipts for duties +has been in silver or silver certificates, while the average within that +period has been 20 per cent. The proportion of silver and its certificates +received by the Government will probably increase as time goes on, for the +reason that the nearer the period approaches when it will be obliged to +offer silver in payment of its obligations the greater inducement there +will be to hoard gold against depreciation in the value of silver or for +the purpose of speculating. + +This hoarding of gold has already begun. + +When the time comes that gold has been withdrawn from circulation, then +will be apparent the difference between the real value of the silver dollar +and a dollar in gold, and the two coins will part company. Gold, still the +standard of value and necessary in our dealings with other countries, will +be at a premium over silver; banks which have substituted gold for the +deposits of their customers may pay them with silver bought with such gold, +thus making a handsome profit; rich speculators will sell their hoarded +gold to their neighbors who need it to liquidate their foreign debts, at a +ruinous premium over silver, and the laboring men and women of the land, +most defenseless of all, will find that the dollar received for the wage of +their toil has sadly shrunk in its purchasing power. It may be said that +the latter result will be but temporary, and that ultimately the price of +labor will be adjusted to the change; but even if this takes place the +wage-worker can not possibly gain, but must inevitably lose, since the +price he is compelled to pay for his living will not only be measured in a +coin heavily depreciated and fluctuating and uncertain in its value, but +this uncertainty in the value of the purchasing medium will be made the +pretext for an advance in prices beyond that justified by actual +depreciation. + +The words uttered in 1834 by Daniel Webster in the Senate of the United +States are true to-day: The very man of all others who has the deepest +interest in a sound currency, and who suffers most by mischievous +legislation in money matters, is the man who earns his daily bread by his +daily toil. The most distinguished advocate of bimetallism, discussing our +silver coinage, has lately written: No American citizen's hand has yet felt +the sensation of cheapness, either in receiving or expending the silver-act +dollars. And those who live by labor or legitimate trade never will feel +that sensation of cheapness. However plenty silver dollars may become, they +will not be distributed as gifts among the people; and if the laboring man +should receive four depreciated dollars where he now receives but two, he +will pay in the depreciated coin more than double the price he now pays for +all the necessaries and comforts of life. + +Those who do not fear any disastrous consequences arising from the +continued compulsory coinage of silver as now directed by law, and who +suppose that the addition to the currency of the country intended as its +result will be a public benefit, are reminded that history demonstrates +that the point is easily reached in the attempt to float at the same time +two sorts of money of different excellence when the better will cease to be +in general circulation. The hoarding of gold which has already taken place +indicates that we shall not escape the usual experience in such cases. So +if this silver coinage be continued we may reasonably expect that gold and +its equivalent will abandon the field of circulation to silver alone. This +of course must produce a severe contraction of our circulating medium, +instead of adding to it. + +It will not be disputed that any attempt on the part of the Government to +cause the circulation of silver dollars worth 80 cents side by side with +gold dollars worth 100 cents, even within the limit that legislation does +not run counter to the laws of trade, to be successful must be seconded by +the confidence of the people that both coins will retain the same +purchasing power and be interchangeable at will. A special effort has been +made by the Secretary of the Treasury to increase the amount of our silver +coin in circulation; but the fact that a large share of the limited amount +thus put out has soon returned to the public Treasury in payment of duties +leads to the belief that the people do not now desire to keep it in hand, +and this, with the evident disposition to hoard gold, gives rise to the +suspicion that there already exists a lack of confidence among the people +touching our financial processes. There is certainly not enough silver now +in circulation to cause uneasiness, and the whole amount coined and now on +hand might after a time be absorbed by the people without apprehension; but +it is the ceaseless stream that threatens to overflow the land which causes +fear and uncertainty. + +What has been thus far submitted upon this subject relates almost entirely +to considerations of a home nature, unconnected with the bearing which the +policies of other nations have upon the question. But it is perfectly +apparent that a line of action in regard to our currency can not wisely be +settled upon or persisted in without considering the attitude on the +subject of other countries with whom we maintain intercourse through +commerce, trade, and travel. An acknowledgment of this fact is found in the +act by virtue of which our silver is compulsorily coined. It provides +that--The President shall invite the governments of the countries +composing the Latin Union, so called, and of such other European nations as +he may deem advisable, to join the United States in a conference to adopt 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. This conference absolutely failed, and a +similar fate has awaited all subsequent efforts in the same direction. And +still we continue our coinage of silver at a ratio different from that of +any other nation. The most vital part of the silver-coinage act remains +inoperative and unexecuted, and without an ally or friend we battle upon +the silver field in an illogical and losing contest. + +To give full effect to the design of Congress on this subject I have made +careful and earnest endeavor since the adjournment of the last Congress. + +To this end I delegated a gentleman well instructed in fiscal science to +proceed to the financial centers of Europe and, in conjunction with our +ministers to England, France, and Germany, to obtain a full knowledge of +the attitude and intent of those governments in respect of the +establishment of such an international ratio as would procure free coinage +of both metals at the mints of those countries and our own. By my direction +our consul-general at Paris has given close attention to the proceedings of +the congress of the Latin Union, in order to indicate our interest in its +objects and report its action. + +It may be said in brief, as the result of these efforts, that the attitude +of the leading powers remains substantially unchanged since the monetary +conference of 1881, nor is it to be questioned that the views of these +governments are in each instance supported by the weight of public +opinion. + +The steps thus taken have therefore only more fully demonstrated the +uselessness of further attempts at present to arrive at any agreement on +the subject with other nations. + +In the meantime we are accumulating silver coin, based upon our own +peculiar ratio, to such an extent, and assuming so heavy a burden to be +provided for in any international negotiations, as will render us an +undesirable party to any future monetary conference of nations. + +It is a significant fact that four of the five countries composing the +Latin Union mentioned in our coinage act, embarrassed with their silver +currency, have just completed an agreement among themselves that no more +silver shall be coined by their respective Governments and that such as has +been already coined and in circulation shall be redeemed in gold by the +country of its coinage. The resort to this expedient by these countries may +well arrest the attention of those who suppose that we can succeed without +shock or injury in the attempt to circulate upon its merits all the silver +we may coin under the provisions of our silver-coinage act. + +The condition in which our Treasury may be placed by a persistence in our +present course is a matter of concern to every patriotic citizen who does +not desire his Government to pay in silver such of its obligations as +should be paid in gold. Nor should our condition be such as to oblige us, +in a prudent management of our affairs, to discontinue the calling in and +payment of interest-bearing obligations which we have the right now to +discharge, and thus avoid the payment of further interest thereon. + +The so-called debtor class, for whose benefit the continued compulsory +coinage of silver is insisted upon, are not dishonest because they are in +debt, and they should not be suspected of a desire to jeopardize the +financial safety of the country in order that they may cancel their present +debts by paying the same in depreciated dollars. Nor should it be forgotten +that it is not the rich nor the money lender alone that must submit to such +a readjustment, enforced by the Government and their debtors. The pittance +of the widow and the orphan and the incomes of helpless beneficiaries of +all kinds would be disastrously reduced. The depositors in savings banks +and in other institutions which hold in trust the savings of the poor, when +their little accumulations are scaled down to meet the new order of things, +would in their distress painfully realize the delusion of the promise made +to them that plentiful money would improve their condition. + +We have now on hand all the silver dollars necessary to supply the present +needs of the people and to satisfy those who from sentiment wish to see +them in circulation, and if their coinage is suspended they can be readily +obtained by all who desire them. If the need of more is at anytime +apparent, their coinage may be renewed. + +That disaster has not already overtaken us furnishes no proof that danger +does not wait upon a continuation of the present silver coinage. We have +been saved by the most careful management and unusual expedients, by a +combination of fortunate conditions, and by a confident expectation that +the course of the Government in regard to silver coinage would be speedily +changed by the action of Congress. + +Prosperity hesitates upon our threshold because of the dangers and +uncertainties surrounding this question. Capital timidly shrinks from +trade, and investors are unwilling to take the chance of the questionable +shape in which their money will be returned to them, while enterprise halts +at a risk against which care and sagacious management do not protect. + +As a necessary consequence, labor lacks employment and suffering and +distress are visited upon a portion of our fellow-citizens especially +entitled to the careful consideration of those charged with the duties of +legislation. No interest appeals to us so strongly for a safe and stable +currency as the vast army of the unemployed. + +I recommend the suspension of the compulsory coinage of silver dollars, +directed by the law passed in February, 1878. + +The Steamboat-Inspection Service on the 30th day of June, 1885, was +composed of 140 persons, including officers, clerks, and messengers. The +expenses of the service over the receipts were $138,822.22 during the +fiscal year. The special inspection of foreign steam vessels, organized +under a law passed in 1882, was maintained during the year at an expense of +$36,641.63. Since the close of the fiscal year reductions have been made in +the force employed which will result in a saving during the current year of +$17,000 without affecting the efficiency of the service. + +The Supervising Surgeon-General reports that during the fiscal year 41,714 +patients have received relief through the Marine-Hospital Service, of whom +12,803 were treated in hospitals and 28,911 at the dispensaries. + +Active and effective efforts have been made through the medium of this +service to protect the country against an invasion of cholera, which has +prevailed in Spain and France, and the smallpox, which recently broke out +in Canada. + +The most gratifying results have attended the operations of the Life Saving +Service during the last fiscal year. The observance of the provision of law +requiring the appointment of the force employed in this service to be made +"solely with reference to their fitness, and without reference to their +political or party affiliation," has secured the result which may +confidently be expected in any branch of public employment where such a +rule is applied. As a consequence, this service is composed of men well +qualified for the performance of their dangerous and exceptionally +important duties. + +The number of stations in commission at the close of the year was 203. The +number of disasters to vessels and craft of all kinds within their field of +action was 371. The number of persons endangered in such disasters was +2,439, of whom 2,428 were saved and only 11 lost. Other lives which were +imperiled, though not by disasters to shipping, were also rescued, and a +large amount of property was saved through the aid of this service. The +cost of its maintenance during the year was $828,474.43. + +The work of the Coast and Geodetic Survey was during the last fiscal year +carried on within the boundaries and off the coasts of thirty-two States, +two Territories, and the District of Columbia. In July last certain +irregularities were found to exist in the management of this Bureau, which +led to a prompt investigation of its methods. The abuses which were brought +to light by this examination and the reckless disregard of duty and the +interests of the Government developed on the part of some of those +connected with the service made a change of superintendency and a few of +its other officers necessary. Since the Bureau has been in new hands an +introduction of economies and the application of business methods have +produced an important saving to the Government and a promise of more useful +results. + +This service has never been regulated by anything but the most indefinite +legal enactments and the most unsatisfactory rules. It was many years ago +sanctioned apparently for a purpose regarded as temporary and related to a +survey of our coast. Having gained a place in the appropriations made by +Congress, it has gradually taken to itself powers and objects not +contemplated in its creation and extended its operations until it sadly +needs legislative attention. + +So far as a further survey of our coast is concerned, there seems to be a +propriety in transferring that work to the Navy Department. The other +duties now in charge of this establishment, if they can not be profitably +attached to some existing Department or other bureau, should be prosecuted +under a law exactly defining their scope and purpose, and with a careful +discrimination between the scientific inquiries which may properly be +assumed by the Government and those which should be undertaken by State +authority or by individual enterprise. + +It is hoped that the report of the Congressional committee heretofore +appointed to investigate this and other like matters will aid in the +accomplishment of proper legislation on this subject. + +The report of the Secretary of War is herewith submitted. The attention of +Congress is invited to the detailed account which it contains of the +administration of his Department, and his recommendations and suggestions +for the improvement of the service. + +The Army consisted, at the date of the last consolidated returns, of 2,154 +officers and 24,705 enlisted men. + +The expenses of the Departments for the fiscal year ended June, 30, 1885, +including $13,164,394.60 for public works and river and harbor +improvements, were $45,850,999.54. + +Besides the troops which were dispatched in pursuit of the small band of +Indians who left their reservation in Arizona and committed murders and +outrages, two regiments of cavalry and one of infantry were sent last July +to the Indian Territory to prevent an outbreak which seemed imminent. They +remained to aid, if necessary, in the expulsion of intruders upon the +reservation, who seemed to have caused the discontent among the Indians, +but the Executive proclamation warning them to remove was complied with +without their interference. + +Troops were also sent to Rock Springs, in Wyoming Territory, after the +massacre of Chinese there, to prevent further disturbance, and afterwards +to Seattle, in Washington Territory, to avert a threatened attack upon +Chinese laborers and domestic violence there. In both cases the mere +presence of the troops had the desired effect. + +It appears that the number of desertions has diminished, but that during +the last fiscal year they numbered 2,927; and one instance is given by the +Lieutenant-General of six desertions by the same recruit. I am convinced +that this number of desertions can be much diminished by better discipline +and treatment; but the punishment should be increased for repeated +offenses. + +These desertions might also be reduced by lessening the term of first +enlistments, thus allowing a discontented recruit to contemplate a nearer +discharge and the Army a profitable riddance. After one term of service a +reenlistment would be quite apt to secure a contented recruit and a good +soldier. + +The Acting Judge-Advocate-General reports that the number of trials by +general courts-martial during the year was 2,328, and that 11,851 trials +took place before garrison and regimental courts-martial. The suggestion +that probably more than half the Army have been tried for offenses, great +and small, in one year may well arrest attention. Of course many of these +trials before garrison and regimental courts-martial were for offenses +almost frivolous, and there should, I think, be a way devised to dispose of +these in a more summary and less inconvenient manner than by +court-martial. + +If some of the proceedings of courts-martial which I have had occasion to +examine present the ideas of justice which generally prevail in these +tribunals, I am satisfied that they should be much reformed if the honor +and the honesty of the Army and Navy are by their instrumentality to be +vindicated and protected. + +The Board on Fortifications or other defenses, appointed in pursuance of +the provisions of the act of Congress approved March 3, 1885, will in a +short time present their report, and it is hoped that this may greatly aid +the legislation so necessary to remedy the present defenseless condition of +our seacoasts. + +The work of the Signal Service has been prosecuted during the last year +with results of increasing benefit to the country. The field of instruction +has been enlarged with a view of adding to its usefulness. The number of +stations in operation June 30, 1885, was 489. Telegraphic reports are +received daily from 160 stations. Reports are also received from 25 +Canadian stations, 375 volunteer observers, 52 army surgeons at military +posts, and 333 foreign stations. The expense of the service during the +fiscal year, after deducting receipts from military telegraph lines, was +$792,592.97. In view of the fact referred to by the Secretary of War, that +the work of this service ordinarily is of a scientific nature, and the +further fact that it is assuming larger proportions constantly and becoming +more and more unsuited to the fixed rules which must govern the Army, I am +inclined to agree with him in the opinion that it should be separately +established. If this is done, the scope and extent of its operations +should, as nearly as possible, be definitely prescribed by law and always +capable of exact ascertainment. + +The Military Academy at West Point is reported as being in a high state of +efficiency and well equipped for the satisfactory accomplishment of the +purposes of its maintenance. + +The fact that the class which graduates next year is an unusually large one +has constrained me to decline to make appointments to second lieutenancies +in the Army from civil life, so that such vacancies as exist in these +places may be reserved for such graduates; and yet it is not probable that +there will be enough vacancies to provide positions for them all when they +leave the military school. Under the prevailing law and usage those not +thus assigned to duty never actively enter the military service. It is +suggested that the law on this subject be changed so that such of these +young men as are not at once assigned to duty after graduation may be +retained as second lieutenants in the Army if they desire it, subject to +assignment when opportunity occurs, and under proper rules as to priority +of selection. + +The expenditures on account of the Military Academy for the last fiscal +year, exclusive of the sum taken for its purposes from appropriations for +the support of the Army, were $290,712.07. + +The act approved March 3, 1885, designed to compensate officers and +enlisted men for loss of private property while in the service of the +United States, is so indefinite in its terms and apparently admits so many +claims the adjustment of which could not have been contemplated that if it +is to remain upon the statute book it needs amendment. + +There should be a general law of Congress prohibiting the construction of +bridges over navigable waters in such manner as to obstruct navigation, +with provisions for preventing the same. It seems that under existing +statutes the Government can not intervene to prevent such a construction +when entered upon without its consent, though when such consent is asked +and granted upon condition the authority to insist upon such condition is +clear. Thus it is represented that while the officers of the Government are +with great care guarding against the obstruction of navigation by a bridge +across the Mississippi River at St. Paul a large pier for a bridge has been +built just below this place directly in the navigable channel of the river. +If such things are to be permitted, a strong argument is presented against +the appropriation of large sums of money to improve the navigation of this +and other important highways of commerce. + +The report of the Secretary of the Navy gives a history of the operations +of his Department and the present condition of the work committed to his +charge. + +He details in full the course pursued by him to protect the rights of the +Government in respect of certain vessels unfinished at the time of his +accession to office, and also concerning the dispatch boat Dolphin, claimed +to be completed and awaiting the acceptance of the Department. No one can +fail to see from recitals contained in this report that only the +application of business principles has been insisted upon in the treatment +of these subjects, and that whatever controversy has arisen was caused by +the exaction on the part of the Department of contract obligations as they +were legally construed. In the case of the Dolphin, with entire justice to +the contractor, an agreement has been entered into providing for the +ascertainment by a judicial inquiry of the complete or partial compliance +with the contract in her construction, and further providing for the +assessment of any damages to which the Government may be entitled on +account of a partial failure to perform such contract, or the payment of +the sum still remaining unpaid upon her price in case a full performance is +adjudged. + +The contractor, by reason of his failure in business, being unable to +complete the other three vessels, they were taken possession of by the +Government in their unfinished state under a clause in the contract +permitting such a course, and are now in process of completion in the yard +of the contractor, but under the supervision of the Navy Department. + +Congress at its last session authorized the construction of two additional +new cruisers and two gunboats, at a cost not exceeding in the aggregate +$2,995,000. The appropriation for this purpose having become available on +the 1st day of July last, steps were at once taken for the procurement of +such plans for the construction of these vessels as would be likely to +insure their usefulness when completed. These are of the utmost importance, +considering the constant advance in the art of building vessels of this +character, and the time is not lost which is spent in their careful +consideration and selection. + +All must admit the importance of an effective navy to a nation like ours, +having such an extended seacoast to protect; and yet we have not a single +vessel of war that could keep the seas against a first-class vessel of any +important power. Such a condition ought not longer to continue. The nation +that can not resist aggression is constantly exposed to it. Its foreign +policy is of necessity weak and its negotiations are conducted with +disadvantage because it is not in condition to enforce the terms dictated +by its sense of right and justice. + +Inspired, as I am, by the hope, shared by all patriotic citizens, that the +day is not very far distant when our Navy will be such as befits our +standing among the nations of the earth, and rejoiced at every step that +leads in the direction of such a consummation, I deem it my duty to +especially direct the attention of Congress to the close of the report of +the Secretary of the Navy, in which the humiliating weakness of the present +organization of his Department is exhibited and the startling abuses and +waste of its present methods are exposed. The conviction is forced upon us +with the certainty of mathematical demonstration that before we proceed +further in the restoration of a Navy we need a thoroughly reorganized Navy +Department. The fact that within seventeen years more than $75,000,000 have +been spent in the construction, repair, equipment, and armament of vessels, +and the further fact that instead of an effective and creditable fleet we +have only the discontent and apprehension of a nation undefended by war +vessels, added to the disclosures now made, do not permit us to doubt that +every attempt to revive our Navy has thus far for the most part been +misdirected, and all our efforts in that direction have been little better +than blind gropings and expensive, aimless follies. + +Unquestionably if we are content with the maintenance of a Navy Department +simply as a shabby ornament to the Government, a constant watchfulness may +prevent some of the scandal and abuse which have found their way into our +present organization, and its incurable waste may be reduced to the +minimum. But if we desire to build ships for present usefulness instead of +naval reminders of the days that are past, we must have a Department +organized for the work, supplied with all the talent and ingenuity our +country affords, prepared to take advantage of the experience of other +nations, systematized so that all effort shall unite and lead in one +direction, and fully imbued with the conviction that war vessels, though +new, are useless unless they combine all that the ingenuity of man has up +to this day brought forth relating to their construction. + +I earnestly commend the portion of the Secretary's report devoted to this +subject to the attention of Congress, in the hope that his suggestions +touching the reorganization of his Department may be adopted as the first +step toward the reconstruction of our Navy. + +The affairs of the postal service are exhibited by the report of the +Postmaster-General, which will be laid before you. + +The postal revenue, whose ratio of gain upon the rising prosperity of 1882 +and 1883 outstripped the increasing expenses of our growing service, was +checked by the reduction in the rate of letter postage which took effect +with the beginning of October in the latter year, and it diminished during +the two past fiscal years $2,790,000, in about the proportion of $2,270,000 +in 1884 to $520,000 in 1885. Natural growth and development have meantime +increased expenditure, resulting in a deficiency in the revenue to meet the +expenses of the Department of five and a quarter million dollars for the +year 1884 and eight and a third million in the last fiscal year. The +anticipated and natural revival of the revenue has been oppressed and +retarded by the unfavorable business condition of the country, of which the +postal service is a faithful indicator. The gratifying fact is shown, +however, by the report that our returning prosperity is marked by a gain of +$380,000 in the revenue of the latter half of the last year over the +corresponding period of the preceding year. + +The change in the weight of first-class matter which may be carried for a +single rate of postage from a half ounce to an ounce, and the reduction by +one-half of the rate of newspaper postage, which, under recent legislation, +began with the current year, will operate to restrain the augmentation of +receipts which otherwise might have been expected to such a degree that the +scale of expense may gain upon the revenue and cause an increased +deficiency to be shown at its close. Yet, after no long period of +reawakened prosperity, by proper economy it is confidently anticipated that +even the present low rates, now as favorable as any country affords, will +be adequate to sustain the cost of the service. + +The operation of the Post-Office Department is for the convenience and +benefit of the people, and the method by which they pay the charges of this +useful arm of their public service, so that it be just and impartial, is of +less importance to them than the economical expenditure of the means they +provide for its maintenance and the due improvement of its agencies, so +that they may enjoy its highest usefulness. + +A proper attention has been directed to the prevention of waste or +extravagance, and good results appear from the report to have already been +accomplished. + +I approve the recommendation of the Postmaster-General to reduce the +charges on domestic money orders of $5 and less from 8 to 5 cents. This +change will materially aid those of our people who most of all avail +themselves of this instrumentality, but to whom the element of cheapness is +of the greatest importance. With this reduction the system would still +remain self-supporting. + +The free-delivery system has been extended to 19 additional cities during +the year, and 178 now enjoy its conveniences. Experience has commended it +to those who enjoy its benefits, and further enlargement of its facilities +is due to other communities to which it is adapted. In the cities where it +has been established, taken together the local postage exceeds its +maintenance by nearly $1,300,000. The limit to which this system is now +confined by law has been nearly reached, and the reasons given justify its +extension, which is proposed. + +It was decided, with my approbation, after a sufficient examination, to be +inexpedient for the Post-Office Department to contract for carrying our +foreign mails under the additional authority given by the last Congress. +The amount limited was inadequate to pay all within the purview of the law +the full rate of 50 cents per mile, and it would have been unjust and +unwise to have given it to some and denied it to others. Nor could +contracts have been let under the law to all at a rate to have brought the +aggregate within the appropriation without such practical prearrangement of +terms as would have violated it. + +The rate of sea and inland postage which was proffered under another +statute clearly appears to be a fair compensation for the desired service, +being three times the price necessary to secure transportation by other +vessels upon any route, and much beyond the charges made to private persons +for services not less burdensome. + +Some of the steamship companies, upon the refusal of the Postmaster-General +to attempt, by the means provided, the distribution of the sum appropriated +as an extra compensation, withdrew the services of their vessels and +thereby occasioned slight inconvenience, though no considerable injury, the +mails having been dispatched by other means. + +Whatever may be thought of the policy of subsidizing any line of public +conveyance or travel, I am satisfied that it should not be done under cover +of an expenditure incident to the administration of a Department, nor +should there be any uncertainty as to the recipients of the subsidy or any +discretion left to an executive officer as to its distribution. If such +gifts of the public money are to be made for the purpose of aiding any +enterprise in the supposed interest of the public, I can not but think that +the amount to be paid and the beneficiary might better be determined by +Congress than in any other way. + +The international congress of delegates from the Postal Union countries +convened at Lisbon, in Portugal, in February last, and after a session of +some weeks the delegates signed a convention amendatory of the present +postal-union convention in some particulars designed to advance its +purposes. This additional act has had my approval and will be laid before +you with the departmental report. + +I approve the recommendation of the postmaster-General that another +assistant be provided for his Department. I invite your consideration to +the several other recommendations contained in his report. + +The report of the Attorney-General contains a history of the conduct of the +Department of Justice during the last year and a number of valuable +suggestions as to needed legislation, and I invite your careful attention +to the same. + +The condition of business in the courts of the United States is such that +there seems to be an imperative necessity for remedial legislation on the +subject. Some of these courts are so overburdened with pending causes that +the delays in determining litigation amount often to a denial of justice. +Among the plans suggested for relief is one submitted by the +Attorney-General. Its main features are: The transfer of all the original +jurisdiction of the circuit courts to the district courts and an increase +of judges for the latter where necessary; an addition of judges to the +circuit courts, and constituting them exclusively courts of appeal, and +reasonably limiting appeals thereto; further restrictions of the right to +remove causes from the State to Federal courts; permitting appeals to the +Supreme Court from the courts of the District of Columbia and the +Territories only in the same cases as they are allowed from State courts, +and guarding against an unnecessary number of appeals from the circuit +courts. + +I approve the plan thus outlined, and recommend the legislation necessary +for its application to our judicial system. + +The present mode of compensating United States marshals and district +attorneys should, in my opinion, be changed. They are allowed to charge +against the Government certain fees for services, their income being +measured by the amount of such fees within a fixed limit as to their annual +aggregate. This is a direct inducement for them to make their fees in +criminal cases as large as possible in an effort to reach the maximum sum +permitted. As an entirely natural consequence, unscrupulous marshals are +found encouraging frivolous prosecutions, arresting people on petty charges +of crime and transporting them to distant places for examination and trial, +for the purpose of earning mileage and other fees; and district attorneys +uselessly attend criminal examinations far from their places of residence +for the express purpose of swelling their accounts against the Government. +The actual expenses incurred in these transactions are also charged against +the Government. + +Thus the rights and freedom of our citizens are outraged and public +expenditures increased for the purpose of furnishing public officers +pretexts for increasing the measure of their compensation. + +I think marshals and district attorneys should be paid salaries, adjusted +by a rule which will make them commensurate with services fairly rendered. + +In connection with this subject I desire to suggest the advisability, if it +be found not obnoxious to constitutional objection, of investing United +States commissioners with the power to try and determine certain violations +of law within the grade of misdemeanors. Such trials might be made to +depend upon the option of the accused. The multiplication of small and +technical offenses, especially under the provisions of our internal-revenue +law, render some change in our present system very desirable in the +interests of humanity as well as economy. The district courts are now +crowded with petty prosecutions, involving a punishment in case of +conviction, of only a slight fine, while the parties accused are harassed +by an enforced attendance upon courts held hundreds of miles from their +homes. If poor and friendless, they are obliged to remain in jail during +months, perhaps, that elapse before a session of the court is held, and are +finally brought to trial surrounded by strangers and with but little real +opportunity for defense. In the meantime frequently the marshal has charged +against the Government his fees for an arrest, the transportation of the +accused and the expense of the same, and for summoning witnesses before a +commissioner, a grand jury, and a court; the witnesses have been paid from +the public funds large fees and traveling expenses, and the commissioner +and district attorney have also made their charges against the Government. + +This abuse in the administration of our criminal law should be remedied; +and if the plan above suggested is not practicable, some other should be +devised. + +The report of the Secretary of the Interior, containing an account of the +operations of this important Department and much interesting information, +will be submitted for your consideration. + +The most intricate and difficult subject in charge of this Department is +the treatment and management of the Indians. I am satisfied that some +progress may be noted in their condition as a result of a prudent +administration of the present laws and regulations for their control. + +But it is submitted that there is lack of a fixed purpose or policy on this +subject, which should be supplied. It is useless to dilate upon the wrongs +of the Indians, and as useless to indulge in the heartless belief that +because their wrongs are revenged in their own atrocious manner, therefore +they should be exterminated. + +They are within the care of our Government, and their rights are, or should +be, protected from invasion by the most solemn obligations. They are +properly enough called the wards of the Government; and it should be borne +in mind that this guardianship involves on our part efforts for the +improvement of their condition and the enforcement of their rights. There +seems to be general concurrence in the proposition that the ultimate object +of their treatment should be their civilization and citizenship. Fitted by +these to keep pace in the march of progress with the advanced civilization +about them, they will readily assimilate with the mass of our population, +assuming the responsibilities and receiving the protection incident to this +condition. + +The difficulty appears to be in the selection of the means to be at present +employed toward the attainment of this result. + +Our Indian population, exclusive of those in Alaska, is reported as +numbering 260,000, nearly all being located on lands set apart for their +use and occupation, aggregating over 134,000,000 acres. These lands are +included in the boundaries of 171 reservations of different dimensions, +scattered in 21 States and Territories, presenting great variations in +climate and in the kind and quality of their soils. Among the Indians upon +these several reservations there exist the most marked differences in +natural traits and disposition and in their progress toward civilization. +While some are lazy, vicious, and stupid, others are industrious, peaceful, +and intelligent; while a portion of them are self-supporting and +independent, and have so far advanced in civilization that they make their +own laws, administered through officers of their own choice, and educate +their children in schools of their own establishment and maintenance, +others still retain, in squalor and dependence, almost the savagery of +their natural state. + +In dealing with this question the desires manifested by the Indians should +not be ignored. Here again we find a great diversity. With some the tribal +relation is cherished with the utmost tenacity, while its hold upon others +is considerably relaxed; the love of home is strong with all, and yet there +are those whose attachment to a particular locality is by no means +unyielding; the ownership of their lands in severalty is much desired by +some, while by others, and sometimes among the most civilized, such a +distribution would be bitterly opposed. + +The variation of their wants, growing out of and connected with the +character of their several locations, should be regarded. Some are upon +reservations most fit for grazing, but without flocks or herds; and some on +arable land, have no agricultural implements. While some of the +reservations are double the size necessary to maintain the number of +Indians now upon them, in a few cases, perhaps, they should be enlarged. + +Add to all this the difference in the administration of the agencies. While +the same duties are devolved upon all, the disposition of the agents and +the manner of their contact with the Indians have much to do with their +condition and welfare. The agent who perfunctorily performs his duty and +slothfully neglects all opportunity to advance their moral and physical +improvement and fails to inspire them with a desire for better things will +accomplish nothing in the direction of their civilization, while he who +feels the burden of an important trust and has an interest in his work +will, by consistent example, firm yet considerate treatment, and +well-directed aid and encouragement, constantly lead those under his charge +toward the light of their enfranchisement. + +The history of all the progress which has been made in the civilization of +the Indian I think will disclose the fact that the beginning has been +religious teaching, followed by or accompanying secular education. While +the self-sacrificing and pious men and women who have aided in this good +work by their independent endeavor have for their reward the beneficent +results of their labor and the consciousness of Christian duty well +performed, their valuable services should be fully acknowledged by all who +under the law are charged with the control and management of our Indian +wards. + +What has been said indicates that in the present condition of the Indians +no attempt should be made to apply a fixed and unyielding plan of action to +their varied and varying needs and circumstances. + +The Indian Bureau, burdened as it is with their general oversight and with +the details of the establishment, can hardly possess itself of the minute +phases of the particular cases needing treatment; and thus the propriety of +creating an instrumentality auxiliary to those already established for the +care of the Indians suggests itself. + +I recommend the passage of a law authorizing the appointment of six +commissioners, three of whom shall be detailed from the Army, to be charged +with the duty of a careful inspection from time to time of all the Indians +upon our reservations or subject to the care and control of the Government, +with a view of discovering their exact condition and needs and determining +what steps shall be taken on behalf of the Government to improve their +situation in the direction of their self-support and complete civilization; +that they ascertain from such inspection what, if any, of the reservations +may be reduced in area, and in such cases what part not needed for Indian +occupation may be purchased by the Government from the Indians and disposed +of for their benefit; what, if any, Indians may, with their consent, be +removed to other reservations, with a view of their concentration and the +sale on their behalf of their abandoned reservations; what Indian lands now +held in common should be allotted in severalty; in what manner and to what +extent the Indians upon the reservations can be placed under the protection +of our laws and subjected to their penalties, and which, if any, Indians +should be invested with the right of citizenship. The powers and functions +of the commissioners in regard to these subjects should be clearly defined, +though they should, in conjunction with the Secretary of the Interior, be +given all the authority to deal definitely with the questions presented +deemed safe and consistent. + +They should be also charged with the duty of ascertaining the Indians who +might properly be furnished with implements of agriculture, and of what +kind; in what cases the support of the Government should be withdrawn; +where the present plan of distributing Indian supplies should be changed; +where schools may be established and where discontinued; the conduct, +methods, and fitness of agents in charge of reservations; the extent to +which such reservations are occupied or intruded upon by unauthorized +persons, and generally all matters related to the welfare and improvement +of the Indian. + +They should advise with the Secretary of the Interior concerning these +matters of detail in management, and he should be given power to deal with +them fully, if he is not now invested with such power. + +This plan contemplates the selection of persons for commissioners who are +interested in the Indian question and who have practical ideas upon the +subject of their treatment. + +The expense of the Indian Bureau during the last fiscal year was more than +six and a halt million dollars. I believe much of this expenditure might be +saved under the plan proposed; that its economical effects would be +increased with its continuance; that the safety of our frontier settlers +would be subserved under its operation, and that the nation would be saved +through its results from the imputation of inhumanity, injustice, and +mismanagement. + +In order to carry out the policy of allotment of Indian lands in severalty, +when deemed expedient, it will be necessary to have surveys completed of +the reservations, and, I hope that provision will be made for the +prosecution of this work. + +In May of the present year a small portion of the Chiricahua Apaches on the +White Mountain Reservation, in Arizona, left the reservation and committed +a number of murders and depredations upon settlers in that neighborhood. +Though prompt and energetic action was taken by the military, the renegades +eluded capture and escaped into Mexico. The formation of the country +through which these Indians passed, their thorough acquaintance with the +same, the speed of their escape, and the manner in which they scattered and +concealed themselves among the mountains near the scene of their outrages +put our soldiers at a great disadvantage in their efforts to capture them, +though the expectation is still entertained that they will be ultimately +taken and punished for their crimes. + +The threatening and disorderly conduct of the Cheyennes in the Indian +Territory early last summer caused considerable alarm and uneasiness. +Investigation proved that their threatening attitude was due in a great +measure to the occupation of the land of their reservation by immense herds +of cattle, which their owners claimed were rightfully there under certain +leases made by the Indians. Such occupation appearing upon examination to +be unlawful notwithstanding these leases, the intruders were ordered to +remove with their cattle from the lands of the Indians by Executive +proclamation. The enforcement of this proclamation had the effect of +restoring peace and order among the Indians, and they are now quiet and +well behaved. + +By an Executive order issued on February 27, 1885, by my predecessor, a +portion of the tract of country in the territory known as the Old Winnebago +and Crow Creek reservations was directed to be restored to the public +domain and opened to settlement under the land laws of the United States, +and a large number of persons entered upon those lands. This action alarmed +the Sioux Indians, who claimed the territory as belonging to their +reservation under the treaty of 1868. This claim was determined, after +careful investigation, to be well rounded, and consequently the Executive +order referred to was by proclamation of April 17, 1885, declared to be +inoperative and of no effect, and all persons upon the land were warned to +leave. This warning has been substantially complied with. + +The public domain had its origin in cessions of land by the States to the +General Government. The first cession was made by the State of New York, +and the largest, which in area exceeded all the others, by the State of +Virginia. The territory the proprietorship of which became thus vested in +the General Government extended from the western line of Pennsylvania to +the Mississippi River. These patriotic donations of the States were +encumbered with no condition except that they should the held and used "for +the common benefit of the United States." By purchase with the common fund +of all the people additions were made to this domain until it extended to +the northern line of Mexico, the Pacific Ocean, and the Polar Sea. The +original trust, "for the common benefit of the United States," attached to +all. In the execution of that trust the policy of many homes, rather than +large estates, was adopted by the Government. That these might be easily +obtained, and be the abode of security and contentment, the laws for their +acquisition were few, easily understood, and general in their character. +But the pressure of local interests, combined with a speculative spirit, +have in many instances procured the passage of laws which marred the +harmony of the general plan and encumbered the system with a multitude of +general and special enactments which render the land laws complicated, +subject the titles to uncertainty, and the purchasers often to oppression +and wrong. Laws which were intended for the "common benefit" have been +perverted so that large quantities of land are vesting in single +ownerships. From the multitude and character of the laws, this consequence +seems incapable of correction by mere administration. + +It is not for the "common benefit of the United States" that a large area +of the public lands should be acquired, directly or through fraud, in the +hands of a single individual. The nation's strength is in the people. The +nation's prosperity is in their prosperity. The nation's glory is in the +equality of her justice. The nation's perpetuity is in the patriotism of +all her people. Hence, as far as practicable, the plan adopted in the +disposal of the public lands should have in view the original policy, which +encouraged many purchases of these lands for homes and discouraged the +massing of large areas. Exclusive of Alaska, about three-fifths of the +national domain has been sold or subjected to contract or grant. Of the +remaining two-fifths a considerable portion is either mountain or desert. A +rapidly increasing population creates a growing demand for homes, and the +accumulation of wealth inspires an eager competition to obtain the public +land for speculative purposes. In the future this collision of interests +will be more marked than in the past, and the execution of the nation's +trust in behalf of our settlers will be more difficult. I therefore commend +to your attention the recommendations contained in the report of the +Secretary of the Interior with reference to the repeal and modification of +certain of our land laws. + +The nation has made princely grants and subsidies to a system of railroads +projected as great national highways to connect the Pacific States with the +East. It has been charged that these donations from the people have been +diverted to private gain and corrupt uses, and thus public indignation has +been aroused and suspicion engendered. Our great nation does not begrudge +its generosity, but it abhors speculation and fraud; and the favorable +regard of our people for the great corporations to which these grants were +made can only be revived by a restoration of confidence, to be secured by +their constant, unequivocal, and clearly manifested integrity. A faithful +application of the undiminished proceeds of the grants to the construction +and perfecting of their roads, an honest discharge of their obligations, +and entire justice to all the people in the enjoyment of their rights on +these highways of travel are all the public asks, and it will be content +with no less. To secure these things should be the common purpose of the +officers of the Government, as well as of the corporations. With this +accomplishment prosperity would be permanently secured to the roads, and +national pride would take the place of national complaint. + +It appears from the report of the Commissioner of Pensions that there were +on the 1st day of July, 1885, 345,125 persons borne upon the pension rolls, +who were classified as follows: Army invalids, 241,456; widows, minor +children, and dependent relatives of deceased soldiers, 78,841; navy +invalids, 2,745; navy widows, minor children, and dependents, 1,926; +survivors of the War of 1812, 2,945; and widows of those who served in that +war, 17,212. About one man in ten of all those who enlisted in the late war +are reported as receiving pensions, exclusive of the dependents of deceased +soldiers. On the 1st of July, 1875, the number of pensioners was 234,821, +and the increase within the ten years next thereafter was 110,304. + +While there is no expenditure of the public funds which the people more +cheerfully approve than that made in recognition of the services of our +soldiers living and dead, the sentiment underlying the subject should not +be vitiated by the introduction of any fraudulent practices. Therefore it +is fully as important that the rolls should be cleansed of all those who by +fraud have secured a place thereon as that meritorious claims should be +speedily examined and adjusted. The reforms in the methods of doing the +business of this Bureau which have lately been inaugurated promise better +results in both these directions. + +The operations of the Patent Office demonstrate the activity of the +inventive genius of the country. For the year ended June 30, 1885, the +applications for patents, including reissues, and for the registration of +trade-marks and labels, numbered 35,688. During the same period there were +22,928 patents granted and reissued and 1,429 trade-marks and labels +registered. The number of patents issued in the year 1875 was 14,387. The +receipts during the last fiscal year were $ 1,074,974.35, and the total +expenditures, not including contingent expenses, $934,123.11. + +There were 9,788 applications for patents pending on the 1st day of July, +1884, and 5,786 on the same date in the year 1885. There has been +considerable improvement made in the prompt determination of applications +and a consequent relief to expectant inventors. + +A number of suggestions and recommendations are contained in the report of +the Commissioner of patents which are well entitled to the consideration of +Congress. + +In the Territory of Utah the law of the United States passed for the +Suppression of polygamy has been energetically and faithfully executed +during the past year, with measurably good results. A number of convictions +have been secured for unlawful cohabitation, and in some cases pleas of +guilty have been entered and a slight punishment imposed, upon a promise by +the accused that they would not again offend against the law, nor advise, +counsel, aid, or abet in any way its violation by others. + +The Utah commissioners express the opinion, based upon such information as +they are able to obtain, that but few polygamous marriages have taken place +in the Territory during the last year. They further report that while there +can not be found upon the registration lists of voters the name of a man +actually guilty of polygamy, and while none of that class are holding +office, yet at the last election in the Territory all the officers elected, +except in one county, were men who, though not actually living in the +practice of polygamy, subscribe to the doctrine of polygamous marriages as +a divine revelation and a law unto all higher and more binding upon the +conscience than any human law, local or national. Thus is the strange +spectacle presented of a community protected by a republican form of +government, to which they owe allegiance, sustaining by their suffrages a +principle and a belief which set at naught that obligation of absolute +obedience to the law of the land which lies at the foundation of republican +institutions. + +The strength, the perpetuity, and the destiny of the nation rest upon our +homes, established by the law of God, guarded by parental care, regulated +by parental authority, and sanctified by parental love. + +These are not the homes of polygamy. + +The mothers of our land, who rule the nation as they mold the characters +and guide the actions of their sons, live according to God's holy +ordinances, and each, secure and happy in the exclusive love of the father +of her children, sheds the warm light of true womanhood, unperverted and +unpolluted, upon all within her pure and wholesome family circle. + +These are not the cheerless, crushed, and unwomanly mothers of polygamy. + +The fathers of our families are the best citizens of the Republic. Wife and +children are the sources of patriotism, and conjugal and parental affection +beget devotion to the country. The man who, undefiled with plural marriage, +is surrounded in his single home with his wife and children has a stake in +the country which inspires him with respect for its laws and courage for +its defense. + +These are not the fathers of polygamous families. + +There is no feature of this practice or the system which sanctions it which +is not opposed to all that is of value in our institutions. + +There should be no relaxation in the firm but just execution of the law now +in operation, and I should be glad to approve such further discreet +legislation as will rid the country of this blot upon its fair fame. + +Since the people upholding polygamy in our Territories are reenforced by +immigration from other lands, I recommend that a law be passed to prevent +the importation of Mormons into the country. + +The agricultural interest of the country demands just recognition and +liberal encouragement. It sustains with certainty and unfailing strength +our nation's prosperity by the products of its steady toil, and bears its +full share of the burden of taxation without complaint. Our agriculturists +have but slight personal representation in the councils of the nation, and +are generally content with the humbler duties of citizenship and willing to +trust to the bounty of nature for a reward of their labor. But the +magnitude and value of this industry are appreciated when the statement is +made that of our total annual exports more than three-fourths are the +products of agriculture, and of our total population nearly one-half are +exclusively engaged in that occupation. + +The Department of Agriculture was created for the purpose of acquiring and +diffusing among the people useful information respecting the subjects it +has in charge, and aiding in the cause of intelligent and progressive +farming, by the collection of statistics, by testing the value and +usefulness of new seeds and plants, and distributing such as are found +desirable among agriculturists. This and other powers and duties with which +this Department is invested are of the utmost importance, and if wisely +exercised must be of great benefit to the country. The aim of our +beneficent Government is the improvement of the people in every station and +the amelioration of their condition. Surely our agriculturists should not +be neglected. The instrumentality established in aid of the farmers of the +land should not only be well equipped for the accomplishment of its +purpose, but those for whose benefit it has been adopted should be +encouraged to avail themselves fully of its advantages. + +The prohibition of the importation into several countries of certain of our +animals and their products, based upon the suspicion that health is +endangered in their use and consumption, suggests the importance of such +precautions for the protection of our stock of all kinds against disease as +will disarm suspicion of danger and cause the removal of such an injurious +prohibition. + +If the laws now in operation are insufficient to accomplish this +protection, I recommend their amendment to meet the necessities of the +situation; and I commend to the consideration of Congress the suggestions +contained in the report of the Commissioner of Agriculture calculated to +increase the value and efficiency of this Department. + +The report of the Civil Service Commission, which will be submitted, +contains an account of the manner in which the civil-service law has been +executed during the last year and much valuable information on this +important subject. + +I am inclined to think that there is no sentiment more general in the minds +of the people of our country than a conviction of the correctness of the +principle upon which the law enforcing civil-service reform is based. In +its present condition the law regulates only a part of the subordinate +public positions throughout the country. It applies the test of fitness to +applicants for these places by means of a competitive examination, and +gives large discretion to the Commissioners as to the character of the +examination and many other matters connected with its execution. Thus the +rules and regulations adopted by the Commission have much to do with the +practical usefulness of the statute and with the results of its +application. + +The people may well trust the Commission to execute the law with perfect +fairness and with as little irritation as is possible. But of course no +relaxation of the principle which underlies it and no weakening of the +safeguards which surround it can be expected. Experience in its +administration will probably suggest amendment of the methods of its +execution, but I venture to hope that we shall never again be remitted to +the system which distributes public positions purely as rewards for +partisan service. Doubts may well be entertained whether our Government +could survive the strain of a continuance of this system, which upon every +change of Administration inspires an immense army of claimants for office +to lay siege to the patronage of Government, engrossing the time of public +officers with their importunities, spreading abroad the contagion of their +disappointment, and filling the air with the tumult of their discontent. + +The allurements of an immense number of offices and places exhibited to the +voters of the land, and the promise of their bestowal in recognition of +partisan activity; debauch the suffrage and rob political action of its +thoughtful and deliberative character. The evil would increase with the +multiplication of offices consequent upon our extension, and the mania for +office holding, growing from its indulgence, would pervade our population +so generally that patriotic purpose, the support of principle, the desire +for the public good, and solicitude for the nation's welfare would be +nearly banished from the activity of our party contests and cause them to +degenerate into ignoble, selfish, and disgraceful struggles for the +possession of office and public place. + +Civil-service reform enforced by law came none too soon to check the +progress of demoralization. + +One of its effects, not enough regarded, is the freedom it brings to the +political action of those conservative and sober men who, in fear of the +confusion and risk attending an arbitrary and sudden change in all the +public offices with a change of party rule, cast their ballots against such +a chance. + +Parties seem to be necessary, and will long continue to exist; nor can it +be now denied that there are legitimate advantages, not disconnected with +office holding, which follow party supremacy. While partisanship continues +bitter and pronounced and supplies so much of motive to sentiment and +action, it is not fair to hold public officials in charge of important +trusts responsible for the best results in the performance of their duties, +and yet insist that they shall rely in confidential and important places +upon the work of those not only opposed to them in political affiliation, +but so steeped in partisan prejudice and rancor that they have no loyalty +to their chiefs and no desire for their success. Civil-service reform does +not exact this, nor does it require that those in subordinate positions who +fail in yielding their best service or who are incompetent should be +retained simply because they are in place. The whining of a clerk +discharged for indolence or incompetency, who, though he gained his place +by the worst possible operation of the spoils system, suddenly discovers +that he is entitled to protection under the sanction of civil-service +reform, represents an idea no less absurd than the clamor of the applicant +who claims the vacant position as his compensation for the most +questionable party work. + +The civil-service law does not prevent the discharge of the indolent or +incompetent clerk, but it does prevent supplying his place with the unfit +party worker. Thus in both these phases is seen benefit to the public +service. And the people who desire good government, having secured this +statute, will not relinquish its benefits without protest. Nor are they +unmindful of the fact that its full advantages can only be gained through +the complete good faith of those having its execution in charge. And this +they will insist upon. + +I recommend that the salaries of the Civil Service Commissioners be +increased to a sum more nearly commensurate to their important duties. + +It is a source of considerable and not unnatural discontent that no +adequate provision has yet been made for accommodating the principal +library of the Government. Of the vast collection of books and pamphlets +gathered at the Capitol, numbering some 700,000, exclusive of manuscripts, +maps, and the products of the graphic arts, also of great volume and value, +only about 300,000 volumes, or less than half the collection, are provided +with shelf room. The others, which are increasing at the rate of from +twenty-five to thirty thousand volumes a year, are not only inaccessible to +the public, but are subject to serious damage and deterioration from other +causes in their present situation. + +A consideration of the facts that the library of the Capitol has twice been +destroyed or damaged by fire, its daily increasing value, and its +importance as a place of deposit of books under the law relating to +copyright makes manifest the necessity of prompt action to insure its +proper accommodation and protection. + +My attention has been called to a controversy which has arisen from the +condition of the law relating to railroad facilities in the city of +Washington, which has involved the Commissioners of the District in much +annoyance and trouble. I hope this difficulty will be promptly settled by +appropriate legislation. + +The Commissioners represent that enough of the revenues of the District are +now on deposit in the Treasury of the United States to repay the sum +advanced by the Government for sewer improvements under the act of June 30, +1884. They desire now an advance of the share which ultimately should be +borne by the District of the cost of extensive improvements to the streets +of the city. The total expense of these contemplated improvements is +estimated at $1,000,000, and they are of the opinion that a considerable +sum could be saved if they had all the money in hand, so that contracts for +the whole work could be made at the same time. They express confidence that +if the advance asked for should be made the Government would be reimbursed +the same within a reasonable time. I have no doubt that these improvements +could be made much cheaper if undertaken together and prosecuted according +to a general plan. + +The license law now in force within the District is deficient and uncertain +in some of its provisions and ought to be amended. The Commissioners urge, +with good reason, the necessity of providing a building for the use of the +District government which shall better secure the safety and preservation +of its valuable books and records. + +The present condition of the law relating to the succession to the +Presidency in the event of the death, disability, or removal of both the +President and Vice-President is such as to require immediate amendment. +This subject has repeatedly been considered by Congress, but no result has +been reached. The recent lamentable death of the Vice-President, and +vacancies at the same time in all other offices the incumbents of which +might immediately exercise the functions of the presidential office, has +caused public anxiety and a just demand that a recurrence of such a +condition of affairs should not be permitted. + +In conclusion I commend to the wise care and thoughtful attention of +Congress the needs, the welfare, and the aspirations of an intelligent and +generous nation. To subordinate these to the narrow advantages of +partisanship or the accomplishment of selfish aims is to violate the +people's trust and betray the people's interests; but an individual sense +of responsibility on the part of each of us and a stern determination to +perform our duty well must give us place among those who have added in +their day and generation to the glory and prosperity of our beloved land. + +*** + +State of the Union Address +Grover Cleveland +December 6, 1886 + +To the Congress of the United States: + +In discharge of a constitutional duty, and following a well-established +precedent in the Executive office, I herewith transmit to the Congress at +its reassembling certain information concerning the state of the Union, +together with such recommendations for legislative consideration as appear +necessary and expedient. + +Our Government has consistently maintained its relations of friendship +toward all other powers and of neighborly interest toward those whose +possessions are contiguous to our own. Few questions have arisen during the +past year with other governments, and none of those are beyond the reach of +settlement in friendly counsel. + +We are as yet without provision for the settlement of claims of citizens of +the United States against Chile for injustice during the late war with Peru +and Bolivia. The mixed commissions organized under claims conventions +concluded by the Chilean Government with certain European States have +developed an amount of friction which we trust can be avoided in the +convention which our representative at Santiago is authorized to +negotiate. + +The cruel treatment of inoffensive Chinese has, I regret to say, been +repeated in some of the far Western States and Territories, and acts of +violence against those people, beyond the power of the local constituted +authorities to prevent and difficult to punish, are reported even in +distant Alaska. Much of this violence can be traced to race prejudice and +competition of labor, which can not, however, justify the oppression of +strangers whose safety is guaranteed by our treaty with China equally with +the most favored nations. + +In opening our vast domain to alien elements the purpose of our lawgivers +was to invite assimilation, and not to provide an arena for endless +antagonism. The paramount duty of maintaining public order and defending +the interests of our own people may require the adoption of measures of +restriction, but they should not tolerate the oppression of individuals of +a special race. I am not without assurance that the Government of China, +whose friendly disposition toward us I am most happy to recognize, will +meet us halfway in devising a comprehensive remedy by which an effective +limitation of Chinese emigration, joined to protection of those Chinese +subjects who remain in this country, may be secured. + +Legislation is needed to execute the provisions of our Chinese convention +of 1880 touching the opium traffic. + +While the good will of the Colombian Government toward our country is +manifest, the situation of American interests on the Isthmus of Panama has +at times excited concern and invited friendly action looking to the +performance of the engagements of the two nations concerning the territory +embraced in the interoceanic transit. With the subsidence of the Isthmian +disturbances and the erection of the State of Panama into a federal +district under the direct government of the constitutional administration +at Bogota, a new order of things has been inaugurated, which, although as +yet somewhat experimental and affording scope for arbitrary exercise of +power by the delegates of the national authority, promises much +improvement. + +The sympathy between the people of the United States and France, born +during our colonial struggle for independence and continuing today, has +received a fresh impulse in the successful completion and dedication of the +colossal statue of "Liberty Enlightening the World" in New York Harbor--the +gift of Frenchmen to Americans. + +A convention between the United States and certain other powers for the +protection of submarine cables was signed at Paris on March 14, 1884, and +has been duly ratified and proclaimed by this Government. By agreement +between the high contracting parties this convention is to go into effect +on the 1st of January next, but the legislation required for its execution +in the United States has not yet been adopted. I earnestly recommend its +enactment. + +Cases have continued to occur in Germany giving rise to much correspondence +in relation to the privilege of sojourn of our naturalized citizens of +German origin revisiting the land of their birth, yet I am happy to state +that our relations with that country have lost none of their accustomed +cordiality. + +The claims for interest upon the amount of tonnage dues illegally exacted +from certain German steamship lines were favorably reported in both Houses +of Congress at the last session, and I trust will receive final and +favorable action at an early day. + +The recommendations contained in my last annual message in relation to a +mode of settlement of the fishery rights in the waters of British North +America, so long a subject of anxious difference between the United States +and Great Britain, was met by an adverse vote of the Senate on April 13 +last, and thereupon negotiations were instituted to obtain an agreement +with Her Britannic Majesty's Government for the promulgation of such joint +interpretation and definition of the article of the convention of 1818 +relating to the territorial waters and inshore fisheries of the British +Provinces as should secure the Canadian rights from encroachment by the +United States fishermen and at the same time insure the enjoyment by the +latter of the privileges guaranteed to them by such convention. + +The questions involved are of long standing, of grave consequence, and from +time to time for nearly three-quarters of a century have given rise to +earnest international discussions, not unaccompanied by irritation. + +Temporary arrangements by treaties have served to allay friction, which, +however, has revived as each treaty was terminated. The last arrangement, +under the treaty of 1871, was abrogated after due notice by the United +States on June 30, 1885, but I was enabled to obtain for our fishermen for +the remainder of that season enjoyment of the full privileges accorded by +the terminated treaty. + +The joint high commission by whom the treaty had been negotiated, although +invested with plenary power to make a permanent settlement, were content +with a temporary arrangement, after the termination of which the question +was relegated to the stipulations of the treaty of 1818, as to the first +article of which no construction satisfactory to both countries has ever +been agreed upon. + +The progress of civilization and growth of population in the British +Provinces to which the fisheries in question are contiguous and the +expansion of commercial intercourse between them and the United States +present to-day a condition of affairs scarcely realizable at the date of +the negotiations of 1818. + +New and vast interests have been brought into existence; modes of +intercourse between the respective countries have been invented and +multiplied; the methods of conducting the fisheries have been wholly +changed; and all this is necessarily entitled to candid and careful +consideration in the adjustment of the terms and conditions of intercourse +and commerce between the United States and their neighbors along a frontier +of over 3,500 miles. + +This propinquity, community of language and occupation, and similarity of +political and social institutions indicate the practicability and obvious +wisdom of maintaining mutually beneficial and friendly relations. + +Whilst I am unfeignedly desirous that such relations should exist between +us and the inhabitants of Canada, yet the action of their officials during +the past season toward our fishermen has been such as to seriously threaten +their continuance. + +Although disappointed in my efforts to secure a satisfactory settlement of +the fishery question, negotiations are still pending, with reasonable hope +that before the close of the present session of Congress announcement may +be made that an acceptable conclusion has been reached. + +As at an early day there may be laid before Congress the correspondence of +the Department of State in relation to this important subject, so that the +history of the past fishing season may be fully disclosed and the action +and the attitude of the Administration clearly comprehended, a more +extended reference is not deemed necessary in this communication. + +The recommendation submitted last year that provision be made for a +preliminary reconnoissance of the conventional boundary line between Alaska +and British Columbia is renewed. + +I express my unhesitating conviction that the intimacy of our relations +with Hawaii should be emphasized. As a result of the reciprocity treaty of +1875, those islands, on the highway of Oriental and Australasian traffic, +are virtually an outpost of American commerce and a stepping-stone to the +growing trade of the Pacific. The Polynesian Island groups have been so +absorbed by other and more powerful governments that the Hawaiian Islands +are left almost alone in the enjoyment of their autonomy, which it is +important for us should be preserved. Our treaty is now terminable on one +year's notice, but propositions to abrogate it would be, in my judgment, +most ill advised. The paramount influence we have there acquired, once +relinquished, could only with difficulty be regained, and a valuable ground +of vantage for ourselves might be converted into a stronghold for our +commercial competitors. I earnestly recommend that the existing treaty +stipulations be extended for a further term of seven years. A recently +signed treaty to this end is now before the Senate. + +The importance of telegraphic communication between those islands and the +United States should not be overlooked. + +The question of a general revision of the treaties of Japan is again under +discussion at Tokyo. As the first to open relations with that Empire, and +as the nation in most direct commercial relations with Japan, the United +States have lost no opportunity to testify their consistent friendship by +supporting the just claims of Japan to autonomy and independence among +nations. + +A treaty of extradition between the United States and Japan, the first +concluded by that Empire, has been lately proclaimed. + +The weakness of Liberia and the difficulty of maintaining effective +sovereignty over its outlying districts have exposed that Republic to +encroachment. It can not be forgotten that this distant community is an +offshoot of our own system, owing its origin to the associated benevolence +of American citizens, whose praiseworthy efforts to create a nucleus of +civilization in the Dark Continent have commanded respect and sympathy +everywhere, especially in this country. Although a formal protectorate over +Liberia is contrary to our traditional policy, the moral right and duty of +the United States to assist in all proper ways in the maintenance of its +integrity is obvious, and has been consistently announced during nearly +half a century. I recommend that in the reorganization of our Navy a small +vessel, no longer found adequate to our needs, be presented to Liberia, to +be employed by it in the protection of its coastwise revenues. + +The encouraging development of beneficial and intimate relations between +the United States and Mexico, which has been so marked within the past few +years, is at once the occasion of congratulation and of friendly +solicitude. I urgently renew my former representation of the need or speedy +legislation by Congress to carry into effect the reciprocity commercial +convention of January 20, 1883. + +Our commercial treaty of 1831 with Mexico was terminated, according to its +provisions, in 1881, upon notification given by Mexico in pursuance of her +announced policy of recasting all her commercial treaties. Mexico has since +concluded with several foreign governments new treaties of commerce and +navigation, defining alien rights of trade, property, and residence, +treatment of shipping, consular privileges, and the like. Our yet +unexecuted reciprocity convention of 1883 covers none of these points, the +settlement of which is so necessary to good relationship. I propose to +initiate with Mexico negotiations for a new and enlarged treaty of commerce +and navigation. + +In compliance with a resolution of the Senate, I communicated to that body +on August 2 last, and also to the House of Representatives, the +correspondence in the case of A. K. Cutting, an American citizen, then +imprisoned in Mexico, charged with the commission of a penal offense in +Texas, of which a Mexican citizen was the object. + +After demand had been made for his release the charge against him was +amended so as to include a violation of Mexican law within Mexican +territory. + +This joinder of alleged offenses, one within and the other exterior to +Mexico, induced me to order a special investigation of the case, pending +which Mr. Cutting was released. + +The incident has, however, disclosed a claim of jurisdiction by Mexico +novel in our history, whereby any offense committed anywhere by a +foreigner, penal in the place of its commission, and of which a Mexican is +the object, may, if the offender be found in Mexico, be there tried and +punished in conformity with Mexican laws. + +This jurisdiction was sustained by the courts of Mexico in the Cutting +case, and approved by the executive branch of that Government, upon the +authority of a Mexican statute. The appellate court in releasing Mr. +Cutting decided that the abandonment of the complaint by the Mexican +citizen aggrieved by the alleged crime (a libelous publication) removed the +basis of further prosecution, and also declared justice to have been +satisfied by the enforcement of a small part of the original sentence. + +The admission of such a pretension would be attended with serious results, +invasive of the jurisdiction of this Government and highly dangerous to our +citizens in foreign lands. Therefore I have denied it and protested against +its attempted exercise as unwarranted by the principles of law and +international usages. + +A sovereign has jurisdiction of offenses which take effect within his +territory, although concocted or commenced outside of it; but the right is +denied of any foreign sovereign to punish a citizen of the United States +for an offense consummated on our soil in violation of our laws, even +though the offense be against a subject or citizen of such sovereign. The +Mexican statute in question makes the claim broadly, and the principle, if +conceded, would create a dual responsibility in the citizen and lead to +inextricable confusion, destructive of that certainty in the law which is +an essential of liberty. + +When citizens of the United States voluntarily go into a foreign country, +they must abide by the laws there in force, and will not be protected by +their own Government from the consequences of an offense against those laws +committed in such foreign country; but watchful care and interest of this +Government over its citizens are not relinquished because they have gone +abroad, and if charged with crime committed in the foreign land a fair and +open trial, conducted with decent regard for justice and humanity, will be +demanded for them. With less than that this Government will not be content +when the life or liberty of its citizens is at stake. + +Whatever the degree to which extraterritorial criminal jurisdiction may +have been formerly allowed by consent and reciprocal agreement among +certain of the European States, no such doctrine or practice was ever known +to the laws of this country or of that from which our institutions have +mainly been derived. + +In the case of Mexico there are reasons especially strong for perfect +harmony in the mutual exercise of jurisdiction. Nature has made us +irrevocably neighbors, and wisdom and kind feeling should make us friends. + +The overflow of capital and enterprise from the United States is a potent +factor in assisting the development of the resources of Mexico and in +building up the prosperity of both countries. + +To assist this good work all grounds of apprehension for the security of +person and property should be removed; and I trust that in the interests of +good neighborhood the statute referred to will be so modified as to +eliminate the present possibilities of danger to the peace of the two +countries. + +The Government of the Netherlands has exhibited concern in relation to +certain features of our tariff laws, which are supposed by them to be aimed +at a class of tobacco produced in the Dutch East Indies. Comment would seem +unnecessary upon the unwisdom of legislation appearing to have a special +national discrimination for its object, which, although unintentional, may +give rise to injurious retaliation. + +The establishment, less than four years ago, of a legation at Teheran is +bearing fruit in the interest exhibited by the Shah's Government in the +industrial activity of the United States and the opportunities of +beneficial interchanges. + +Stable government is now happily restored in Peru by the election of a +constitutional president, and a period of rehabilitation is entered upon; +but the recovery is necessarily slow from the exhaustion caused by the late +war and civil disturbances. A convention to adjust by arbitration claims of +our citizens has been proposed and is under consideration. + +The naval officer who bore to Siberia the testimonials bestowed by Congress +in recognition of the aid given to the Jeannette survivors has successfully +accomplished his mission. His interesting report will be submitted. It is +pleasant to know that this mark of appreciation has been welcomed by the +Russian Government and people as befits the traditional friendship of the +two countries. + +Civil perturbations in the Samoan Islands have during the past few years +been a source of considerable embarrassment to the three +Governments-Germany, Great Britain, and the United States--whose relations +and extraterritorial rights in that important group are guaranteed by +treaties. The weakness of the native administration and the conflict of +opposing interests in the islands have led King Malietoa to seek alliance +or protection in some one quarter, regardless of the distinct engagements +whereby no one of the three treaty powers may acquire any paramount or +exclusive interest. In May last Malietoa offered to place Samoa under the +protection of the United States, and the late consul, without authority, +assumed to grant it. The proceeding was promptly disavowed and the +overzealous official recalled. Special agents of the three Governments have +been deputed to examine the situation in the islands. With a change in the +representation of all three powers and a harmonious understanding between +them, the peace, prosperity, autonomous administration, and neutrality of +Samoa can hardly fail to be secured. + +It appearing that the Government of Spain did not extend to the flag of the +United States in the Antilles the full measure of reciprocity requisite +under our statute for the continuance of the suspension of discriminations +against the Spanish flag in our ports, I was constrained in October last to +rescind my predecessor's proclamation of February 14, 1884, permitting such +suspension. An arrangement was, however, speedily reached, and upon +notification from the Government of Spain that all differential treatment +of our vessels and their cargoes, from the United States or from any +foreign country, had been completely and absolutely relinquished, I availed +myself of the discretion conferred by law and issued on the 27th of October +my proclamation declaring reciprocal suspension in the United States. It is +most gratifying to bear testimony to the earnest spirit in which the +Government of the Queen Regent has met our efforts to avert the initiation +of commercial discriminations and reprisals, which are ever disastrous to +the material interests and the political good will of the countries they +may affect. + +The profitable development of the large commercial exchanges between the +United States and the Spanish Antilles is naturally an object of +solicitude. Lying close at our doors, and finding here their main markets +of supply and demand, the welfare of Cuba and Puerto Rico and their +production and trade are scarcely less important to us than to Spain. Their +commercial and financial movements are so naturally a part of our system +that no obstacle to fuller and freer intercourse should be permitted to +exist. The standing instructions of our representatives at Madrid and +Havana have for years been to leave no effort unessayed to further these +ends, and at no time has the equal good desire of Spain been more hopefully +manifested than now. + +The Government of Spain, by removing the consular tonnage fees on cargoes +shipped to the Antilles and by reducing passport fees, has shown its +recognition of the needs of less trammeled intercourse. + +An effort has been made during the past year to remove the hindrances to +the proclamation of the treaty of naturalization with the Sublime Porte, +signed in 1874, which has remained inoperative owing to a disagreement of +interpretation of the clauses relative to the effects of the return to and +sojourn of a naturalized citizen in the land of origin. I trust soon to be +able to announce a favorable settlement of the differences as to this +interpretation. + +It has been highly satisfactory to note the improved treatment of American +missionaries in Turkey, as has been attested by their acknowledgments to +our late minister to that Government of his successful exertions in their +behalf. + +The exchange of ratifications of the convention of December 5, 1885, with +Venezuela, for the reopening of the awards of the Caracas Commission under +the claims convention of 1866, has not yet been effected, owing to the +delay of the Executive of that Republic in ratifying the measure. I trust +that this postponement will be brief; but should it much longer continue, +the delay may well be regarded as a rescission of the compact and a failure +on the part of Venezuela to complete an arrangement so persistently sought +by her during many years and assented to by this Government in a spirit of +international fairness, although to the detriment of holders of bona fide +awards of the impugned commission. + +I renew the recommendation of my last annual message that existing +legislation concerning citizenship and naturalization be revised. We have +treaties with many states providing for the renunciation of citizenship by +naturalized aliens, but no statute is found to give effect to such +engagements, nor any which provides a needed central bureau for the +registration of naturalized citizens. + +Experience suggests that our statutes regulating extradition might be +advantageously amended by a provision for the transit across our territory, +now a convenient thoroughfare of travel from one foreign country to +another, of fugitives surrendered by a foreign government to a third state. +Such provisions are not unusual in the legislation of other countries, and +tend to prevent the miscarriage of justice. It is also desirable, in order +to remove present uncertainties, that authority should be conferred on the +Secretary of State to issue a certificate, in case of an arrest for the +purpose of extradition, to the officer before whom the proceeding is +pending, showing that a requisition for the surrender of the person charged +has been duly made. Such a certificate, if required to be received before +the prisoner's examination, would prevent a long and expensive judicial +inquiry into a charge which the foreign government might not desire to +press. I also recommend that express provision be made for the immediate +discharge from custody of persons committed for extradition where the +President is of opinion that surrender should not be made. + +The drift of sentiment in civilized communities toward full recognition of +the rights of property in the creations of the human intellect has brought +about the adoption by many important nations of an international copyright +convention, which was signed at Berne on the 18th of September, 1885. + +Inasmuch as the Constitution gives to the Congress the power "to promote +the progress of science and useful arts by securing for limited times to +authors and inventors the exclusive right to their respective writings and +discoveries," this Government did not feel warranted in becoming a +signatory pending the action of Congress upon measures of international +copyright now before it; but the right of adhesion to the Berne convention +hereafter has been reserved. I trust the subject will receive at your hands +the attention it deserves, and that the just claims of authors, so urgently +pressed, will be duly heeded. + +Representations continue to be made to me of the injurious effect upon +American artists studying abroad and having free access to the art +collections of foreign countries of maintaining a discriminating duty +against the introduction of the works of their brother artists of other +countries, and I am induced to repeat my recommendation for the abolition +of that tax. + +Pursuant to a provision of the diplomatic and consular appropriation act +approved July 1, 1886, the estimates submitted by the Secretary of State +for the maintenance of the consular service have been recast on the basis +of salaries for all officers to whom such allowance is deemed advisable. +Advantage has been taken of this to redistribute the salaries of the +offices now appropriated for, in accordance with the work performed, the +importance of the representative duties of the incumbent, and the cost of +living at each post. The last consideration has been too often lost sight +of in the allowances heretofore made. The compensation which may suffice +for the decent maintenance of a worthy and capable officer in a position of +onerous and representative trust at a post readily accessible, and where +the necessaries of life are abundant and cheap, may prove an inadequate +pittance in distant lands, where the better part of a year's pay is +consumed in reaching the post of duty, and where the comforts of ordinary +civilized existence can only be obtained with difficulty and at exorbitant +cost. I trust that in considering the submitted schedules no mistaken +theory of economy will perpetuate a system which in the past has virtually +closed to deserving talent many offices where capacity and attainments of a +high order are indispensable, and in not a few instances has brought +discredit on our national character and entailed embarrassment and even +suffering on those deputed to uphold our dignity and interests abroad. + +In connection with this subject I earnestly reiterate the practical +necessity of supplying some mode of trustworthy inspection and report of +the manner in which the consulates are conducted. In the absence of such +reliable information efficiency can scarcely be rewarded or its opposite +corrected. + +Increasing competition in trade has directed attention to the value of the +consular reports printed by the Department of State, and the efforts of the +Government to extend the practical usefulness of these reports have created +a wider demand for them at home and a spirit of emulation abroad. +Constituting a record at the changes occurring in trade and of the progress +of the arts and invention in foreign countries, they are much sought for by +all interested in the subjects which they embrace. + +The report of the Secretary of the Treasury exhibits in detail the +condition of the public finances and of the several branches of the +Government related to his Department. I especially direct the attention of +the Congress to the recommendations contained in this and the last +preceding report of the Secretary touching the simplification and amendment +of the laws relating to the collection of our revenues, and in the interest +of economy and justice to the Government I hope they may be adopted by +appropriate legislation. + +The ordinary receipts of the Government for the fiscal year ended June 30, +1886, were $336,439,727.06. Of this amount $192,905,023.41 was received +from customs and $116,805,936.48 from internal revenue. The total receipts, +as here stated, were $13,749,020.68 greater than for the previous year, but +the increase from customs was $11,434,084.10 and from internal revenue +$4,407,210.94, making a gain in these items for the last year of +$15,841,295.04, a falling off in other resources reducing the total +increase to the smaller amount mentioned. + +The expense at the different custom-houses of collecting this increased +customs revenue was less than the expense attending the collection of such +revenue for the preceding year by $490,608, and the increased receipts of +internal revenue were collected at a cost to the Internal-Revenue Bureau +$155,944.99 less than the expense of such collection for the previous +year. + +The total ordinary expenses of the Government for the fiscal year ended +June 30, 1886, were $242,483,138.50, being less by $17,788,797 than such +expenditures for the year preceding, and leaving a surplus in the Treasury +at the close of the last fiscal year of $93,956,588.56, as against +$63,463,771.27 at the close of the previous year, being an increase in such +surplus of $30,492,817.29. + +The expenditures are compared with those of the preceding fiscal year and +classified as follows: + +For the current year to end June 30, 1887, the ascertained receipts up to +October 1, 1886, with such receipts estimated for the remainder of the +year, amount to $356,000,000. + +The expenditures ascertained and estimated for the same period are +$266,000,000, indicating an anticipated surplus at the close of the year of +$90,000,000. + +The total value of the exports from the United States to foreign countries +during the fiscal year is stated and compared with the preceding year as +follows: + +The value of some of our leading exports during the last fiscal year, as +compared with the value of the same for the year immediately preceding, is +here given, and furnishes information both interesting and suggestive: + +Our imports during the last fiscal year, as compared with the previous +year, were as follows: + +In my last annual message to the Congress attention was directed to the +fact that the revenues of the Government exceeded its actual needs, and it +was suggested that legislative action should be taken to relieve the people +from the unnecessary burden of taxation thus made apparent. + +In view of the pressing importance of the subject I deem it my duty to +again urge its consideration. + +The income of the Government, by its increased volume and through economies +in its collection, is now more than ever in excess of public necessities. +The application of the surplus to the payment of such portion of the public +debt as is now at our option subject to extinguishment, if continued at the +rate which has lately prevailed, would retire that class of indebtedness +within less than one year from this date. Thus a continuation of our +present revenue system would soon result in the receipt of an annual income +much greater than necessary to meet Government expenses, with no +indebtedness upon which it could be applied. We should then be confronted +with a vast quantity of money, the circulating medium of the people, +hoarded in the Treasury when it should be in their hands, or we should be +drawn into wasteful public extravagance, with all the corrupting national +demoralization which follows in its train. + +But it is not the simple existence of this surplus and its threatened +attendant evils which furnish the strongest argument against our present +scale of Federal taxation. Its worst phase is the exaction of such a +surplus through a perversion of the relations between the people and their +Government and a dangerous departure from the rules which limit the right +of Federal taxation. + +Good government, and especially the government of which every American +citizen boasts, has for its objects the protection of every person within +its care in the greatest liberty consistent with the good order of society +and his perfect security in the enjoyment of his earnings with the least +possible diminution for public needs. When more of the people's substance +is exacted through the form of taxation than is necessary to meet the just +obligations of the Government and the expense of its economical +administration, such exaction becomes ruthless extortion and a violation of +the fundamental principles of a free government. + +The indirect manner in which these exactions are made has a tendency to +conceal their true character and their extent. But we have arrived at a +stage of superfluous revenue which has aroused the people to a realization +of the fact that the amount raised professedly for the support of the +Government is paid by them as absolutely if added to the price of the +things which supply their daily wants as if it was paid at fixed periods +into the hand of the tax gatherer. + +Those who toil for daily wages are beginning to understand that capital, +though sometimes vaunting its importance and clamoring for the protection +and favor of the Government, is dull and sluggish till, touched by the +magical hand of labor, it springs into activity, furnishing an occasion for +Federal taxation and gaining the value which enables it to bear its burden. +And the laboring man is thoughtfully inquiring whether in these +circumstances, and considering the tribute he constantly pays into the +public Treasury as he supplies his daily wants, he receives his fair share +of advantages. + +There is also a suspicion abroad that the surplus of our revenues indicates +abnormal and exceptional business profits, which, under the system which +produces such surplus, increase without corresponding benefit to the people +at large the vast accumulations of a few among our citizens, whose +fortunes, rivaling the wealth of the most favored in antidemocratic +nations, are not the natural growth of a steady, plain, and industrious +republic. + +Our farmers, too, and those engaged directly and indirectly in supplying +the products of agriculture, see that day by day, and as often as the daily +wants of their households recur, they are forced to pay excessive and +needless taxation, while their products struggle in foreign markets with +the competition of nations, which, by allowing a freer exchange of +productions than we permit, enable their people to sell for prices which +distress the American farmer. + +As every patriotic citizen rejoices in the constantly increasing pride of +our people in American citizenship and in the glory of our national +achievements and progress, a sentiment prevails that the leading strings +useful to a nation in its infancy may well be to a great extent discarded +in the present stage of American ingenuity, courage, and fearless +self-reliance; and for the privilege of indulging this sentiment with true +American enthusiasm our citizens are quite willing to forego an idle +surplus in the public Treasury. + +And all the people know that the average rate of Federal taxation upon +imports is to-day, in time of peace, but little less, while upon some +articles of necessary consumption it is actually more, than was imposed by +the grievous burden willingly borne at a time when the Government needed +millions to maintain by war the safety and integrity of the Union. + +It has been the policy of the Government to collect the principal part of +its revenues by a tax upon imports, and no change in this policy is +desirable. But the present condition of affairs constrains our people to +demand that by a revision of our revenue laws the receipts of the +Government shall be reduced to the necessary expense of its economical +administration; and this demand should be recognized and obeyed by the +people's representatives in the legislative branch of the Government. + +In readjusting the burdens of Federal taxation a sound public policy +requires that such of our citizens as have built up large and important +industries under present conditions should not be suddenly and to their +injury deprived of advantages to which they have adapted their business; +but if the public good requires it they should be content with such +consideration as shall deal fairly and cautiously with their interests, +while the just demand of the people for relief from needless taxation is +honestly answered. + +A reasonable and timely submission to such a demand should certainly be +possible without disastrous shock to any interest; and a cheerful +concession sometimes averts abrupt and heedless action, often the outgrowth +of impatience and delayed justice. + +Due regard should be also accorded in any proposed readjustment to the +interests of American labor so far as they are involved. We congratulate +ourselves that there is among us no laboring class fixed within unyielding +bounds and doomed under all conditions to the inexorable fate of daily +toil. We recognize in labor a chief factor in the wealth of the Republic, +and we treat those who have it in their keeping as citizens entitled to the +most careful regard and thoughtful attention. This regard and attention +should be awarded them, not only because labor is the capital of our +workingmen, justly entitled to its share of Government favor, but for the +further and not less important reason that the laboring man, surrounded by +his family in his humble home, as a consumer is vitally interested in all +that cheapens the cost of living and enables him to bring within his +domestic circle additional comforts and advantages. + +This relation of the workingman to the revenue laws of the country and the +manner in which it palpably influences the question of wages should not be +forgotten in the justifiable prominence given to the proper maintenance of +the supply and protection of well-paid labor. And these considerations +suggest such an arrangement of Government revenues as shall reduce the +expense of living, while it does not curtail the opportunity for work nor +reduce the compensation of American labor and injuriously affect its +condition and the dignified place it holds in the estimation of our +people. + +But our farmers and agriculturists--those who from the soil produce the +things consumed by all--are perhaps more directly and plainly concerned +than any other of our citizens in a just and careful system of Federal +taxation. Those actually engaged in and more remotely connected with this +kind of work number nearly one-half of our population. None labor harder or +more continuously than they. No enactments limit their hours of toil and no +interposition of the Government enhances to any great extent the value of +their products. And yet for many of the necessaries and comforts of life, +which the most scrupulous economy enables them to bring into their homes, +and for their implements of husbandry, they are obliged to pay a price +largely increased by an unnatural profit, which by the action of the +Government is given to the more favored manufacturer. + +I recommend that, keeping in view all these considerations, the increasing +and unnecessary surplus of national income annually accumulating be +released to the people by an amendment to our revenue laws which shall +cheapen the price of the necessaries of life and give freer entrance to +such imported materials as by American labor may be manufactured into +marketable commodities. + +Nothing can be accomplished, however, in the direction of this much-needed +reform unless the subject is approached in a patriotic spirit of devotion +to the interests of the entire country and with a willingness to yield +something for the public good. + +The sum paid upon the public debt during the fiscal year ended June 30, +1886, was $44,551,043.36. + +During the twelve months ended October 31,1886, 3 per cent bonds were +called for redemption amounting to $127,283,100, of which $80,643,200 was +so called to answer the requirements of the law relating to the sinking +fund and $46,639,900 for the purpose of reducing the public debt by +application of a part of the surplus in the Treasury to that object. Of the +bonds thus called $102,269,450 became subject under such calls to +redemption prior to November 1, 1886. The remainder, amounting +to $25,013,650, matured under the calls after that date. + +In addition to the amount subject to payment and cancellation prior to +November 1, there were also paid before that day certain of these bonds, +with the interest thereon, amounting to $5,072,350, which were anticipated +as to their maturity, of which $2,664,850 had not been called, Thus +$107,341,800 had been actually applied prior to the 1st of November, 1886, +to the extinguishment of our bonded and interest-bearing debt, leaving on +that day still outstanding the sum of $1,153,443,112. Of this amount +$86,848,700 were still represented by 3 per cent bonds. They however, have +been since November 1, or will at once be, further reduced by $22,606,150, +being bonds which have been called, as already stated, but not redeemed and +canceled before the latter date. + +During the fiscal year ended June 30, 1886, there were coined, under the +compulsory silver-coinage act of 1878,29,838,905 silver dollars, and the +cost of the silver used in such coinage was $23,448,960.01. There had been +coined up to the close of the previous fiscal year under the provisions of +the law 203,882,554 silver dollars, and on the 1st day of December, 1886, +the total amount of such coinage was $247,131,549. + +The Director of the Mint reports that at the time of the passage of the law +of 1878 directing this coinage the intrinsic value of the dollars thus +coined was 94 1/4 cents each, and that on the 31st day of July, 1886, the +price of silver reached the lowest stage ever known, so that the intrinsic +or bullion price of our standard silver dollar at that date was less than +72 cents. The price of silver on the 30th day of November last was such as +to make these dollars intrinsically worth 78 cents each. + +These differences in value of the coins represent the fluctuations in the +price of silver, and they certainly do not indicate that compulsory coinage +by the Government enhances the price of that commodity or secures +uniformity in its value. + +Every fair and legal effort has been made by the Treasury Department to +distribute this currency among the people. The withdrawal of United States +Treasury notes of small denominations and the issuing of small silver +certificates have been resorted to in the endeavor to accomplish this +result, in obedience to the will and sentiments of the representatives of +the people in the Congress. On the 27th day of November, 1886, the people +held of these coins, or certificates representing them, the nominal sum of +$166,873,041, and we still had $79,464,345 in the Treasury as against about +$142,894,055 so in the hands of the people and $72,865,376 remaining in the +Treasury one year ago. The Director of the Mint again urges the necessity +of more vault room for the purpose of storing these silver dollars which +are not needed for circulation by the people. + +I have seen no reason to change the views expressed in my last annual +message on the subject of this compulsory coinage, and I again urge its +suspension on all the grounds contained in my former recommendation, +reenforced by the significant increase of our gold exportations during the +last year, as appears by the comparative statement herewith presented, and +for the further reasons that the more this currency is distributed among +the people the greater becomes our duty to protect it from disaster, that +we now have abundance for all our needs, and that there seems but little +propriety in building vaults to store such currency when the only pretense +for its coinage is the necessity of its use by the people as a circulating +medium. + +The great number of suits now pending in the United States courts for the +southern district of New York growing out of the collection of customs +revenue at the port of New York and the number of such suits that are +almost daily instituted are certainly worthy the attention of the Congress. +These legal controversies, based upon conflicting views by importers and +the collector as to the interpretation of our present complex and +indefinite revenue laws, might be largely obviated by an amendment of those +laws. + +But pending such amendment the present condition of this litigation should +be relieved. There are now pending about 2,500 of these suits. More than +1,100 have been commenced within the past eighteen months, and many of the +others have been at issue for more than twenty-five years. These delays +subject the Government to loss of evidence and prevent the preparation +necessary to defeat unjust and fictitious claims, while constantly accruing +interest threatens to double the demands involved. + +In the present condition of the dockets of the courts, well filled with +private suits, and of the force allowed the district attorney, no greater +than is necessary for the ordinary and current business of his office, +these revenue litigations can not be considered. + +In default of the adoption by the Congress of a plan for the general +reorganization of the Federal courts, as has been heretofore recommended, I +urge the propriety of passing a law permitting the appointment of an +additional Federal judge in the district where these Government suits have +accumulated, so that by continuous sessions of the courts devoted to the +trial of these cases they may be determined. + +It is entirely plain that a great saving to the Government would be +accomplished by such a remedy, and the suitors who have honest claims would +not be denied justice through delay. + +The report of the Secretary of War gives a detailed account of the +administration of his Department and contains sundry recommendations for +the improvement of the service, which I fully approve. + +The Army consisted at the date of the last consolidated return of 2,103 +officers and 24,946 enlisted men. + +The expenses of the Department for the last fiscal year were +$36,990,903.38, including $6,294,305.43 for public works and river and +harbor improvements. + +I especially direct the attention of the Congress to the recommendation +that officers be required to submit to an examination as a preliminary to +their promotion. I see no objection, but many advantages, in adopting this +feature, which has operated so beneficially in our Navy Department, as well +as in some branches of the Army. + +The subject of coast defenses and fortifications has been fully and +carefully treated by the Board on Fortifications, whose report was +submitted at the last session of Congress; but no construction work of the +kind recommended by the board has been possible during the last year from +the lack of appropriations for such purpose. + +The defenseless condition of our seacoast and lake frontier is perfectly +palpable. The examinations made must convince us all that certain of our +cities named in the report of the board should be fortified and that work +on the most important of these fortifications should be commenced at once. +The work has been thoroughly considered and laid out, the Secretary of War +reports, but all is delayed in default of Congressional action. + +The absolute necessity, judged by all standards of prudence and foresight, +of our preparation for an effectual resistance against the armored ships +and steel guns and mortars of modern construction which may threaten the +cities on our coasts is so apparent that I hope effective steps will be +taken in that direction immediately. + +The valuable and suggestive treatment of this question by the Secretary of +War is earnestly commended to the consideration of the Congress. + +In September and October last the hostile Apaches who, under the leadership +of Geronimo, had for eighteen months been on the war path, and during that +time had committed many murders and been the cause of constant terror to +the settlers of Arizona, surrendered to General Miles, the military +commander who succeeded General Crook in the management and direction of +their pursuit. + +Under the terms of their surrender as then reported, and in view of the +understanding which these murderous savages seemed to entertain of the +assurances given them, it was considered best to imprison them in such +manner as to prevent their ever engaging in such outrages again, instead of +trying them for murder. Fort Pickens having been selected as a safe place +of confinement, all the adult males were sent thither and will be closely +guarded as prisoners. In the meantime the residue of the band, who, though +still remaining upon the reservation, were regarded as unsafe and suspected +of furnishing aid to those on the war path, had been removed to Fort +Marion. The women and larger children of the hostiles were also taken +there, and arrangements have been made for putting the children of proper +age in Indian schools. + +The report of the Secretary of the Navy contains a detailed exhibit of the +condition of his Department, with such a statement of the action needed to +improve the same as should challenge the earnest attention of the +Congress. + +The present Navy of the United States, aside from the ships in course of +construction, consists of-- + +First. Fourteen single-turreted monitors, none of which are in commission +nor at the present time serviceable. The batteries of these ships are +obsolete, and they can only be relied upon as auxiliary ships in harbor +defense, and then after such an expenditure upon them as might not be +deemed justifiable. + +Second. Five fourth-rate vessels of small tonnage, only one of which was +designed as a war vessel, and all of which are auxiliary merely. + +Third. Twenty-seven cruising ships, three of which are built of iron, of +small tonnage, and twenty-four of wood. Of these wooden vessels it is +estimated by the Chief Constructor of the Navy that only three will be +serviceable beyond a period of six years, at which time it may be said that +of the present naval force nothing worthy the name will remain. + +All the vessels heretofore authorized are under contract or in course of +construction except the armored ships, the torpedo and dynamite boats, and +one cruiser. As to the last of these, the bids were in excess of the limit +fixed by Congress. The production in the United States of armor and gun +steel is a question which it seems necessary to settle at an early day if +the armored war vessels are to be completed with those materials of home +manufacture. This has been the subject of investigation by two boards and +by two special committees of Congress within the last three years. The +report of the Gun Foundry Board in 1884, of the Board on Fortifications +made in January last, and the reports of the select committees of the two +Houses made at the last session of Congress have entirely exhausted the +subject, so far as preliminary investigation is involved, and in their +recommendations they are substantially agreed. + +In the event that the present invitation of the Department for bids to +furnish such of this material as is now authorized shall fail to induce +domestic manufacturers to undertake the large expenditures required to +prepare for this new manufacture, and no other steps are taken by Congress +at its coming session, the Secretary contemplates with dissatisfaction the +necessity of obtaining abroad the armor and the gun steel for the +authorized ships. It would seem desirable that the wants of the Army and +the Navy in this regard should be reasonably met, and that by uniting their +contracts such inducement might be offered as would result in securing the +domestication of these important interests. + +The affairs of the postal service show marked and gratifying improvement +during the past year. A particular account of its transactions and +condition is given in the report of the Postmaster-General, which will be +laid before you. + +The reduction of the rate of letter postage in 1883, rendering the postal +revenues inadequate to sustain the expenditures, and business depression +also contributing, resulted in an excess of cost for the fiscal year ended +June 30, 1885, of eight and one-third millions of dollars. An additional +check upon receipts by doubling the measure of weight in rating sealed +correspondence and diminishing one-half the charge for newspaper carriage +was imposed by legislation which took effect with the beginning of the past +fiscal year, while the constant demand of our territorial development and +growing population for the extension and increase of mail facilities and +machinery necessitates steady annual advance in outlay, and the careful +estimate of a year ago upon the rates of expenditure then existing +contemplated the unavoidable augmentation of the deficiency in the last +fiscal year by nearly $2,000,000. The anticipated revenue for the last year +failed of realization by about $64,000, but proper measures of economy have +so satisfactorily limited the growth of expenditure that the total +deficiency in fact fell below that of 1885, and at this time the increase +of revenue is in a gaining ratio over the increase of cost, demonstrating +the sufficiency of the present rates of postage ultimately to sustain the +service. This is the more pleasing because our people enjoy now both +cheaper postage proportionably to distances and a vaster and more costly +service than any other upon the globe. + +Retrenchment has been effected in the cost of supplies, some expenditures +unwarranted by law have ceased, and the outlays for mail carriage have been +subjected to beneficial scrutiny. At the close of the last fiscal year the +expense of transportation on star routes stood at an annual rate of cost +less by over $560,000 than at the close of the previous year and steamboat +and mail-messenger service at nearly $200,000 less. + +The service has been in the meantime enlarged and extended by the +establishment of new offices, increase of routes of carriage, expansion of +carrier-delivery conveniences, and additions to the railway mail +facilities, in accordance with the growing exigencies of the country and +the long-established policy of the Government. + +The Postmaster-General calls attention to the existing law for compensating +railroads and expresses the opinion that a method may be devised which will +prove more just to the carriers and beneficial to the Government; and the +subject appears worthy of your early consideration. + +The differences which arose during the year with certain of the ocean +steamship companies have terminated by the acquiescence of all in the +policy of the Government approved by the Congress in the postal +appropriation at its last session, and the Department now enjoys the utmost +service afforded by all vessels which sail from our ports upon either +ocean--a service generally adequate to the needs of our intercourse. +Petitions have, however, been presented to the Department by numerous +merchants and manufacturers for the establishment of a direct service to +the Argentine Republic and for semimonthly dispatches to the Empire of +Brazil, and the subject is commended to your consideration. It is an +obvious duty to provide the means of postal communication which our +commerce requires, and with prudent forecast of results the wise extension +of it may lead to stimulating intercourse and become the harbinger of a +profitable traffic which will open new avenues for the disposition of the +products of our industry. The circumstances of the countries at the far +south of our continent are such as to invite our enterprise and afford the +promise of sufficient advantages to justify an unusual effort to bring +about the closer relations which greater freedom of communication would +tend to establish. + +I suggest that, as distinguished from a grant or subsidy for the mere +benefit of any line of trade or travel, whatever outlay may be required to +secure additional postal service, necessary and proper and not otherwise +attainable, should be regarded as within the limit of legitimate +compensation for such service. + +The extension of the free-delivery service as suggested by the +Postmaster-General has heretofore received my sanction, and it is to be +hoped a suitable enactment may soon be agreed upon. + +The request for an appropriation sufficient to enable the general +inspection of fourth-class offices has my approbation. + +I renew my approval of the recommendation of the Postmaster-General that +another assistant be provided for the Post-Office Department, and I invite +your attention to the several other recommendations in his report. + +The conduct of the Department of Justice for the last fiscal year is fully +detailed in the report of the Attorney-General, and I invite the earnest +attention of the Congress to the same and due consideration of the +recommendations therein contained. + +In the report submitted by this officer to the last session of the Congress +he strongly recommended the erection of a penitentiary for the confinement +of prisoners convicted and sentenced in the United States courts, and he +repeats the recommendation in his report for the last year. + +This is a matter of very great importance and should at once receive +Congressional action. United States prisoners are now confined in more than +thirty different State prisons and penitentiaries scattered in every part +of the country. They are subjected to nearly as many different modes of +treatment and discipline and are far too much removed from the control and +regulation of the Government. So far as they are entitled to humane +treatment and an opportunity for improvement and reformation, the +Government is responsible to them and society that these things are +forthcoming. But this duty can scarcely be discharged without more absolute +control and direction than is possible under the present system. + +Many of our good citizens have interested themselves, with the most +beneficial results, in the question of prison reform. The General +Government should be in a situation, since there must be United States +prisoners, to furnish important aid in this movement, and should be able to +illustrate what may be practically done in the direction of this reform and +to present an example in the treatment and improvement of its prisoners +worthy of imitation. + +With prisons under its own control the Government could deal with the +somewhat vexed question of convict labor, so far as its convicts were +concerned, according to a plan of its own adoption, and with due regard to +the rights and interests of our laboring citizens, instead of sometimes +aiding in the operation of a system which causes among them irritation and +discontent. + +Upon consideration of this subject it might be thought wise to erect more +than one of these institutions, located in such places as would best +subserve the purposes of convenience and economy in transportation. The +considerable cost of maintaining these convicts as at present, in State +institutions, would be saved by the adoption of the plan proposed, and by +employing them in the manufacture of such articles as were needed for use +by the Government quite a large pecuniary benefit would be realized in +partial return for our outlay. + +I again urge a change in the Federal judicial system to meet the wants of +the people and obviate the delays necessarily attending the present +condition of affairs in our courts. All are agreed that something should be +done, and much favor is shown by those well able to advise to the plan +suggested by the Attorney-General at the last session of the Congress and +recommended in my last annual message. This recommendation is here renewed, +together with another made at the same time, touching a change in the +manner of compensating district attorneys and marshals; and the latter +subject is commended to the Congress for its action in the interest of +economy to the Government, and humanity, fairness, and justice to our +people. + +The report of the Secretary of the Interior presents a comprehensive +summary of the work of the various branches of the public service connected +with his Department, and the suggestions and recommendations which it +contains for the improvement of the service should receive your careful +consideration. + +The exhibit made of the condition of our Indian population and the progress +of the work for their enlightenment, notwithstanding the many +embarrassments which hinder the better administration of this important +branch of the service, is a gratifying and hopeful one. + +The funds appropriated for the Indian service for the fiscal year just +passed, with the available income from Indian land and trust moneys, +amounting in all to $7,850,775.12, were ample for the service under the +conditions and restrictions of laws regulating their expenditure. There +remained a balance on hand on June 30, 1886, of $1,660,023.30, of which $ +1,337,768.21 are permanent funds for fulfillment of treaties and other like +purposes, and the remainder, $322,255.09, is subject to be carried to the +surplus fund as required by law. + +The estimates presented for appropriations for the ensuing fiscal year +amount to $5,608,873.64, or $442,386.20 less than those laid before the +Congress last year. + +The present system of agencies, while absolutely necessary and well adapted +for the management of our Indian affairs and for the ends in view when it +was adopted, is in the present stage of Indian management inadequate, +standing alone, for the accomplishment of an object which has become +pressing in its importance--the more rapid transition from tribal +organizations to citizenship of such portions of the Indians as are capable +of civilized life. + +When the existing system was adopted, the Indian race was outside of the +limits of organized States and Territories and beyond the immediate reach +and operation of civilization, and all efforts were mainly directed to the +maintenance of friendly relations and the preservation of peace and quiet +on the frontier. All this is now changed. There is no such thing as the +Indian frontier. Civilization, with the busy hum of industry and the +influences of Christianity, surrounds these people at every point. None of +the tribes are outside of the bounds of organized government and society, +except that the Territorial system has not been extended over that portion +of the country known as the Indian Territory. As a race the Indians are no +longer hostile, but may be considered as submissive to the control of the +Government. Few of them only are troublesome. Except the fragments of +several bands, all are now gathered upon reservations. + +It is no longer possible for them to subsist by the chase and the +spontaneous productions of the earth. + +With an abundance of land, if furnished with the means and implements for +profitable husbandry, their life of entire dependence upon Government +rations from day to day is no longer defensible. Their inclination, long +fostered by a defective system of control, is to cling to the habits and +customs of their ancestors and struggle with persistence against the change +of life which their altered circumstances press upon them. But barbarism +and civilization can not live together. It is impossible that such +incongruous conditions should coexist on the same soil. + +They are a portion of our people, are under the authority of our +Government, and have a peculiar claim upon and are entitled to the +fostering care and protection of the nation. The Government can not relieve +itself of this responsibility until they are so far trained and civilized +as to be able wholly to manage and care for themselves. The paths in which +they should walk must be clearly marked out for them, and they must be led +or guided until they are familiar with the way and competent to assume the +duties and responsibilities of our citizenship. + +Progress in this great work will continue only at the present slow pace and +at great expense unless the system and methods of management are improved +to meet the changed conditions and urgent demands of the service. + +The agents, having general charge and supervision in many cases of more +than 5,000 Indians, scattered over large reservations, and burdened with +the details of accountability for funds and supplies, have time to look +after the industrial training and improvement of a few Indians only. The +many are neglected and remain idle and dependent, conditions not favorable +for progress and civilization. + +The compensation allowed these agents and the conditions of the service are +not calculated to secure for the work men who are fitted by ability and +skill to properly plan and intelligently direct the methods best adapted to +produce the most speedy results and permanent benefits. + +Hence the necessity for a supplemental agency or system directed to the end +of promoting the general and more rapid transition of the tribes from +habits and customs of barbarism to the ways of civilization. + +With an anxious desire to devise some plan of operation by which to secure +the welfare of the Indians and to relieve the Treasury as far as possible +from the support of an idle and dependent population, I recommended in my +previous annual message the passage of a law authorizing the appointment of +a commission as an instrumentality auxiliary to those already established +for the care of the Indians. It was designed that this commission should be +composed of six intelligent and capable persons--three to be detailed from +the Army--having practical ideas upon the subject of the treatment of +Indians and interested in their welfare, and that it should be charged, +under the direction of the Secretary of the Interior, with the management +of such matters of detail as can not with the present organization be +properly and successfully conducted, and which present different phases, as +the Indians themselves differ in their progress, needs, disposition, and +capacity for improvement or immediate self-support. + +By the aid of such a commission much unwise and useless expenditure of +money, waste of materials, and unavailing efforts might be avoided; and it +is hoped that this or some measure which the wisdom of Congress may better +devise to supply the deficiency of the present system may receive your +consideration and the appropriate legislation be provided. + +The time is ripe for the work of such an agency. + +There is less opposition to the education and training of the Indian youth, +as shown by the increased attendance upon the schools, and there is a +yielding tendency for the individual holding of lands. Development and +advancement in these directions are essential, and should have every +encouragement. As the rising generation are taught the language of +civilization and trained in habits of industry they should assume the +duties, privileges, and responsibilities of citizenship. + +No obstacle should hinder the location and settlement of any Indian willing +to take land in severalty; on the contrary, the inclination to do so should +be stimulated at all times when proper and expedient. But there is no +authority of law for making allotments on some of the reservations, and on +others the allotments provided for are so small that the Indians, though +ready and desiring to settle down, are not willing to accept such small +areas when their reservations contain ample lands to afford them homesteads +of sufficient size to meet their present and future needs. + +These inequalities of existing special laws and treaties should be +corrected and some general legislation on the subject should be provided, +so that the more progressive members of the different tribes may be settled +upon homesteads, and by their example lead others to follow, breaking away +from tribal customs and substituting therefor the love of home, the +interest of the family, and the rule of the state. + +The Indian character and nature are such that they are not easily led while +brooding over unadjusted wrongs. This is especially so regarding their +lands. Matters arising from the construction and operation of railroads +across some of the reservations, and claims of title and right of occupancy +set up by white persons to some of the best land within other reservations +require legislation for their final adjustment. + +The settlement of these matters will remove many embarrassments to progress +in the work of leading the Indians to the adoption of our institutions and +bringing them under the operation, the influence, and the protection of the +universal laws of our country. + +The recommendations of the Secretary of the Interior and the Commissioner +of the General Land Office looking to the better protection of public lands +and of the public surveys, the preservation of national forests, the +adjudication of grants to States and corporations and of private land +claims, and the increased efficiency of the public-land service are +commended to the attention of Congress. To secure the widest distribution +of public lands in limited quantities among settlers for residence and +cultivation, and thus make the greatest number of individual homes, was the +primary object of the public-land legislation in the early days of the +Republic. This system was a simple one. It commenced with an admirable +scheme of public surveys, by which the humblest citizen could identify the +tract upon which he wished to establish his home. The price of lands was +placed within the reach of all the enterprising, industrious, and honest +pioneer citizens of the country. It was soon, however, found that the +object of the laws was perverted, under the system of cash sales, from a +distribution of land among the people to an accumulation of land capital by +wealthy and speculative persons. To check this tendency a preference right +of purchase was given to settlers on the land, a plan which culminated in +the general preemption act of 1841. The foundation of this system was +actual residence and cultivation. Twenty years later the homestead law was +devised to more surely place actual homes in the possession of actual +cultivators of the soil. The land was given without price, the sole +conditions being residence, improvement, and cultivation. Other laws have +followed, each designed to encourage the acquirement and use of land in +limited individual quantities. But in later years these laws, through +vicious administrative methods and under changed conditions of +communication and transportation, have been so evaded and violated that +their beneficent purpose is threatened with entire defeat. The methods of +such evasions and violations are set forth in detail in the reports of the +Secretary of the Interior and Commissioner of the General Land Office. The +rapid appropriation of our public lands without bona fide settlements or +cultivation, and not only without intention of residence, but for the +purpose of their aggregation in large holdings, in many cases in the hands +of foreigners, invites the serious and immediate attention of the +Congress. + +The energies of the Land Department have been devoted during the present +Administration to remedy defects and correct abuses in the public-land +service. The results of these efforts are so largely in the nature of +reforms in the processes and methods of our land system as to prevent +adequate estimate; but it appears by a compilation from the reports of the +Commissioner of the General Land Office that the immediate effect in +leading cases which have come to a final termination has been the +restoration to the mass of public lands of 2,750,000 acres; that 2,370,000 +acres are embraced in investigations now pending before the Department or +the courts, and that the action of Congress has been asked to effect the +restoration of 2,790,000 acres additional; besides which 4,000,000 acres +have been withheld from reservation and the rights of entry thereon +maintained. + +I recommend the repeal of the preemption and timber-culture acts, and that +the homestead laws be so amended as to better secure compliance with their +requirements of residence, improvement, and cultivation for the period of +five years from date of entry, without commutation or provision for +speculative relinquishment. I also recommend the repeal of the desert-land +laws unless it shall be the pleasure of the Congress to so amend these laws +as to render them less liable to abuses. As the chief motive for an evasion +of the laws and the principal cause of their result in land accumulation +instead of land distribution is the facility with which transfers are made +of the right intended to be secured to settlers, it may be deemed advisable +to provide by legislation some guards and checks upon the alienation of +homestead rights and lands covered thereby until patents issue. + +Last year an Executive proclamation was issued directing the removal of +fences which inclosed the public domain. Many of these have been removed in +obedience to such order, but much of the public land still remains within +the lines of these unlawful fences. The ingenious methods resorted to in +order to continue these trespasses and the hardihood of the pretenses by +which in some cases such inclosures are justified are fully detailed in the +report of the Secretary of the Interior. + +The removal of the fences still remaining which inclose public lands will +be enforced with all the authority and means with which the executive +branch of the Government is or shall be invested by the Congress for that +purpose. + +The report of the Commissioner of Pensions contains a detailed and most +satisfactory exhibit of the operations of the Pension Bureau during the +last fiscal year. The amount of work done was the largest in any year since +the organization of the Bureau, and it has been done at less cost than +during the previous year in every division. + +On the 30th day of June, 1886, there were 365,783 pensioners on the rolls +of the Bureau. + +Since 1861 there have been 1,018,735 applications for pensions filed, of +which 78,834 were based upon service in the War of 1812. There were 621,754 +of these applications allowed, including 60,178 to the soldiers of 1812 and +their widows. + +The total amount paid for pensions since 1861 is $808,624,811.57. + +The number of new pensions allowed during the year ended June 30, 1886, is +40,857, a larger number than has been allowed in any year save one since +1861. The names of 2,229 pensioners which had been previously dropped from +the rolls were restored during the year, and after deducting those dropped +within the same time for various causes a net increase remains for the year +of 20,658 names. + +From January 1, 1861, to December 1, 1885, 1,967 private pension acts had +been passed. Since the last-mentioned date, and during the last session of +the Congress, 644 such acts became laws. + +It seems to me that no one can examine our pension establishment and its +operations without being convinced that through its instrumentality justice +can be very nearly done to all who are entitled under present laws to the +pension bounty of the Government. + +But it is undeniable that cases exist, well entitled to relief, in which +the Pension Bureau is powerless to aid. The really worthy cases of this +class are such as only lack by misfortune the kind or quantity of proof +which the law and regulations of the Bureau require, or which, though their +merit is apparent, for some other reason can not be justly dealt with +through general laws. These conditions fully justify application to the +Congress and special enactments. But resort to the Congress for a special +pension act to overrule the deliberate and careful determination of the +Pension Bureau on the merits or to secure favorable action when it could +not be expected under the most liberal execution of general laws, it must +be admitted opens the door to the allowance of questionable claims and +presents to the legislative and executive branches of the Government +applications concededly not within the law and plainly devoid of merit, but +so surrounded by sentiment and patriotic feeling that they are hard to +resist. I suppose it will not be denied that many claims for pension are +made without merit and that many have been allowed upon fraudulent +representations. This has been declared from the Pension Bureau, not only +in this but in prior Administrations. + +The usefulness and the justice of any system for the distribution of +pensions depend upon the equality and uniformity of its operation. + +It will be seen from the report of the Commissioner that there are now paid +by the Government 131 different rates of pension. + +He estimates from the best information he can obtain that 9,000 of those +who have served in the Army and Navy of the United States are now +supported, in whole or in part, from public funds or by organized +charities, exclusive of those in soldiers' homes under the direction and +control of the Government. Only 13 per cent of these are pensioners, while +of the entire number of men furnished for the late war something like 20 +per cent, including their widows and relatives, have been or now are in +receipt of pensions. + +The American people, with a patriotic and grateful regard for our +ex-soldiers, too broad and too sacred to be monopolized by any special +advocates, are not only willing but anxious that equal and exact justice +should be done to all honest claimants for pensions. In their sight the +friendless and destitute soldier, dependent on public charity, if otherwise +entitled, has precisely the same right to share in the provision made for +those who fought their country's battles as those better able, through +friends and influence, to push their claims. Every pension that is granted +under our present plan upon any other grounds than actual service and +injury or disease incurred in such service, and every instance of the many +in which pensions are increased on other grounds than the merits of the +claim, work an injustice to the brave and crippled, but poor and +friendless, soldier, who is entirely neglected or who must be content with +the smallest sum allowed under general laws. + +There are far too many neighborhoods in which are found glaring cases of +inequality of treatment in the matter of pensions, and they are largely due +to a yielding in the Pension Bureau to importunity on the part of those, +other than the pensioner, who are especially interested, or they arise from +special acts passed for the benefit of individuals. + +The men who fought side by side should stand side by side when they +participate in a grateful nation's kind remembrance. + +Every consideration of fairness and justice to our ex-soldiers and the +protection of the patriotic instinct of our citizens from perversion and +violation point to the adoption of a pension system broad and comprehensive +enough to cover every contingency, and which shall make unnecessary an +objectionable volume of special legislation. + +As long as we adhere to the principle of granting pensions for service, and +disability as the result of the service, the allowance of pensions should +be restricted to cases presenting these features. + +Every patriotic heart responds to a tender consideration for those who, +having served their country long and well, are reduced to destitution and +dependence, not as an incident of their service, but with advancing age or +through sickness or misfortune. We are all tempted by the contemplation of +such a condition to supply relief, and are often impatient of the +limitations of public duty. Yielding to no one in the desire to indulge +this feeling of consideration, I can not rid myself of the conviction that +if these ex-soldiers are to be relieved they and their cause are entitled +to the benefit of an enactment under which relief may be claimed as a +right, and that such relief should be granted under the sanction of law, +not in evasion of it; nor should such worthy objects of care, all equally +entitled, be remitted to the unequal operation of sympathy or the tender +mercies of social and political influence, with their unjust +discriminations. + +The discharged soldiers and sailors of the country are our fellow-citizens, +and interested with us in the passage and faithful execution of wholesome +laws. They can not be swerved from their duty of citizenship by artful +appeals to their spirit of brotherhood born of common peril and suffering, +nor will they exact as a test of devotion to their welfare a willingness to +neglect public duty in their behalf. + +On the 4th of March, 1885, the current business of the Patent Office was, +on an average, five and a half months in arrears, and in several divisions +more than twelve months behind. At the close of the last fiscal year such +current work was but three months in arrears, and it is asserted and +believed that in the next few months the delay in obtaining an examination +of an application for a patent will be but nominal. + +The number of applications for patents during the last fiscal year, +including reissues, designs, trade-marks, and labels, equals 40,678, which +is considerably in excess of the number received during any preceding +year. + +The receipts of the Patent Office during the year aggregate $1,205,167.80, +enabling the office to turn into the Treasury a surplus revenue, over and +above all expenditures, of about $163,710.30. + +The number of patents granted during the last fiscal year, including +reissues, trade-marks, designs, and labels, was 25,619, a number also quite +largely in excess of that of any preceding year. + +The report of the Commissioner shows the office to be in a prosperous +condition and constantly increasing in its business. No increase of force +is asked for. + +The amount estimated for the fiscal year ending June 30, 1886, was +$890,760. The amount estimated for the year ending June 30, 1887, was +$853,960. The amount estimated for the fiscal year ending June 30, 1888, is +$778,770. + +The Secretary of the Interior suggests a change in the plan for the payment +of the indebtedness of the Pacific subsidized roads to the Government. His +suggestion has the unanimous indorsement of the persons selected by the +Government to act as directors of these roads and protect the interests of +the United States in the board of direction. In considering the plan +proposed the sole matters which should be taken into account, in my +opinion, are the situation of the Government as a creditor and the surest +way to secure the payment of the principal and interest of its debt. + +By a recent decision of the Supreme Court of the United States it has been +adjudged that the laws of the several States are inoperative to regulate +rates of transportation upon railroads if such regulation interferes with +the rate of carriage from one State into another. This important field of +control and regulation having been thus left entirely unoccupied, the +expediency of Federal action upon the subject is worthy of consideration. + +The relations of labor to capital and of laboring men to their employers +are of the utmost concern to every patriotic citizen. When these are +strained and distorted, unjustifiable claims are apt to be insisted upon by +both interests, and in the controversy which results the welfare of all and +the prosperity of the country are jeopardized. Any intervention of the +General Government, within the limits of its constitutional authority, to +avert such a condition should be willingly accorded. + +In a special message transmitted to the Congress at its last session I +suggested the enlargement of our present Labor Bureau and adding to its +present functions the power of arbitration in cases where differences arise +between employer and employed. When these differences reach such a stage as +to result in the interruption of commerce between the States, the +application of this remedy by the General Government might be regarded as +entirely within its constitutional powers. And I think we might reasonably +hope that such arbitrators, if carefully selected and if entitled to the +confidence of the parties to be affected, would be voluntarily called to +the settlement of controversies of less extent and not necessarily within +the domain of Federal regulation. + +I am of the opinion that this suggestion is worthy the attention of the +Congress. + +But after all has been done by the passage of laws, either Federal or +State, to relieve a situation full of solicitude, much more remains to be +accomplished by the reinstatement and cultivation of a true American +sentiment which recognizes the equality of American citizenship. This, in +the light of our traditions and in loyalty to the spirit of our +institutions, would teach that a hearty cooperation on the part of all +interests is the surest path to national greatness and the happiness of all +our people; that capital should, in recognition of the brotherhood of our +citizenship and in a spirit of American fairness, generously accord to +labor its just compensation and consideration, and that contented labor is +capital's best protection and faithful ally. It would teach, too, that the +diverse situations of our people are inseparable from our civilization; +that every citizen should in his sphere be a contributor to the general +good; that capital does not necessarily tend to the oppression of labor, +and that violent disturbances and disorders alienate from their promoters +true American sympathy and kindly feeling. + +The Department of Agriculture, representing the oldest and largest of our +national industries, is subserving well the purposes of its organization. +By the introduction of new subjects of farming enterprise and by opening +new sources of agricultural wealth and the dissemination of early +information concerning production and prices it has contributed largely to +the country's prosperity. Through this agency advanced thought and +investigation touching the subjects it has in charge should, among other +things, be practically applied to the home production at a low cost of +articles of food which are now imported from abroad. Such an innovation +will necessarily, of course, in the beginning be within the domain of +intelligent experiment, and the subject in every stage should receive all +possible encouragement from the Government. + +The interests of millions of our citizens engaged in agriculture are +involved in an enlargement and improvement of the results of their labor, +and a zealous regard for their welfare should be a willing tribute to those +whose productive returns are a main source of our progress and power. + +The existence of pleuro-pneumonia among the cattle of various States has +led to burdensome and in some cases disastrous restrictions in an important +branch of our commerce, threatening to affect the quantity and quality of +our food supply. This is a matter of such importance and of such +far-reaching consequences that I hope it will engage the serious attention +of the Congress, to the end that such a remedy may be applied as the limits +of a constitutional delegation of power to the General Government will +permit. + +I commend to the consideration of the Congress the report of the +Commissioner and his suggestions concerning the interest intrusted to his +care. + +The continued operation of the law relating to our civil service has added +the most convincing proofs of its necessity and usefulness. It is a fact +worthy of note that every public officer who has a just idea of his duty to +the people testifies to the value of this reform. Its staunchest, friends +are found among those who understand it best, and its warmest supporters +are those who are restrained and protected by its requirements. + +The meaning of such restraint and protection is not appreciated by those +who want places under the Government regardless of merit and efficiency, +nor by those who insist that the selection of such places should rest upon +a proper credential showing active partisan work. They mean to public +officers, if not their lives, the only opportunity afforded them to attend +to public business, and they mean to the good people of the country the +better performance of the work of their Government. + +It is exceedingly strange that the scope and nature of this reform are so +little understood and that so many things not included within its plan are +called by its name. When cavil yields more fully to examination, the system +will have large additions to the number of its friends. + +Our civil-service reform may be imperfect in some of its details; it may be +misunderstood and opposed; it may not always be faithfully applied; its +designs may sometimes miscarry through mistake or willful intent; it may +sometimes tremble under the assaults of its enemies or languish under the +misguided zeal of impracticable friends; but if the people of this country +ever submit to the banishment of its underlying principle from the +operation of their Government they will abandon the surest guaranty of the +safety and success of American institutions. + +I invoke for this reform the cheerful and ungrudging support of the +Congress. I renew my recommendation made last year that the salaries of the +Commissioners be made equal to other officers of the Government having like +duties and responsibilities, and I hope that such reasonable appropriations +may be made as will enable them to increase the usefulness of the cause +they have in charge. + +I desire to call the attention of the Congress to a plain duty which the +Government owes to the depositors in the Freedman's Savings and Trust +Company. + +This company was chartered by the Congress for the benefit of the most +illiterate and humble of our people, and with the intention of encouraging +in them industry and thrift. Most of its branches were presided over by +officers holding the commissions and clothed in the uniform of the United +States. These and other circumstances reasonably, I think, led these simple +people to suppose that the invitation to deposit their hard-earned savings +in this institution implied an undertaking on the part of their Government +that their money should be safely kept for them. + +When this company failed, it was liable in the sum of $2,939,925.22 to +61,131 depositors. Dividends amounting in the aggregate to 62 per cent have +been declared, and the sum called for and paid of such dividends seems to +be $1,648,181.72. This sum deducted from the entire amount of deposits +leaves $1,291,744.50 still unpaid. Past experience has shown that quite a +large part of this sum will not be called for. There are assets still on +hand amounting to the estimated sum of $16,000. + +I think the remaining 38 per cent of such of these deposits as have +claimants should be paid by the Government, upon principles of equity and +fairness. + +The report of the commissioner, soon to be laid before Congress, will give +more satisfactory details on this subject. + +The control of the affairs of the District of Columbia having been placed +in the hands of purely executive officers, while the Congress still retains +all legislative authority relating to its government, it becomes my duty to +make known the most pressing needs of the District and recommend their +consideration. + +The laws of the District appear to be in an uncertain and unsatisfactory +condition, and their codification or revision is much needed. + +During the past year one of the bridges leading from the District to the +State of Virginia became unfit for use, and travel upon it was forbidden. +This leads me to suggest that the improvement of all the bridges crossing +the Potomac and its branches from the city of Washington is worthy the +attention of Congress. + +The Commissioners of the District represent that the laws regulating the +sale of liquor and granting licenses therefor should be at once amended, +and that legislation is needed to consolidate, define, and enlarge the +scope and powers of charitable and penal institutions within the District. + +I suggest that the Commissioners be clothed with the power to make, within +fixed limitations, police regulations. I believe this power granted and +carefully guarded would tend to subserve the good order of the +municipality. + +It seems that trouble still exists growing out of the occupation of the +streets and avenues by certain railroads having their termini in the city. +It is very important that such laws should be enacted upon this subject as +will secure to the railroads all the facilities they require for the +transaction of their business and at the same time protect citizens from +injury to their persons or property. + +The Commissioners again complain that the accommodations afforded them for +the necessary offices for District business and for the safe-keeping of +valuable books and papers are entirely insufficient. I recommend that this +condition of affairs be remedied by the Congress, and that suitable +quarters be furnished for the needs of the District government. + +In conclusion I earnestly invoke such wise action on the part of the +people's legislators as will subserve the public good and demonstrate +during the remaining days of the Congress as at present organized its +ability and inclination to so meet the people's needs that it shall be +gratefully remembered by an expectant constituency. + +*** + +State of the Union Address +Grover Cleveland +December 6, 1887 + +To the Congress of the United States: + +You are confronted at the threshold of your legislative duties with a +condition of the national finances which imperatively demands immediate and +careful consideration. + +The amount of money annually exacted, through the operation of present +laws, from the industries and necessities of the people largely exceeds the +sum necessary to meet the expenses of the Government. + +When we consider that the theory of our institutions guarantees to every +citizen the full enjoyment of all the fruits of his industry and +enterprise, with only such deduction as may be his share toward the careful +and economical maintenance of the Government which protects him, it is +plain that the exaction of more than this is indefensible extortion and a +culpable betrayal of American fairness and justice. This wrong inflicted +upon those who bear the burden of national taxation, like other wrongs, +multiplies a brood of evil consequences. The public Treasury, which should +only exist as a conduit conveying the people's tribute to its legitimate +objects of expenditure, becomes a hoarding place for money needlessly +withdrawn from trade and the people's use, thus crippling our national +energies, suspending our country's development, preventing investment in +productive enterprise, threatening financial disturbance, and inviting +schemes of public plunder. + +This condition of our Treasury is not altogether new, and it has more than +once of late been submitted to the people's representatives in the +Congress, who alone can apply a remedy. And yet the situation still +continues, with aggravated incidents, more than ever presaging financial +convulsion and widespread disaster. + +It will not do to neglect this situation because its dangers are not now +palpably imminent and apparent. They exist none the less certainly, and +await the unforeseen and unexpected occasion when suddenly they will be +precipitated upon us. + +On the 30th day of June, 1885, the excess of revenues over public +expenditures, after complying with the annual requirement of the +sinking-fund act, was $17,859,735.84; during the year ended June 30, 1886, +such excess amounted to $49,405,545.20, and during the year ended June 30, +1887, it reached the sum of $55,567,849.54. + +The annual contributions to the sinking fund during the three years above +specified, amounting in the aggregate to $138,058,320.94, and deducted from +the surplus as stated, were made by calling in for that purpose outstanding +3 per cent bonds of the Government. During the six months prior to June 30, +1887, the surplus revenue had grown so large by repeated accumulations, and +it was feared the withdrawal of this great sum of money needed by the +people would so affect the business of the country, that the sum of +$79,864,100 of such surplus was applied to the payment of the principal and +interest of the 3 per cent bonds still outstanding, and which were then +payable at the option of the Government. The precarious condition of +financial affairs among the people still needing relief, immediately after +the 30th day of June, 1887, the remainder of the 3 per cent bonds then +outstanding, amounting with principal and interest to the sum of +$18,877,500, were called in and applied to the sinking-fund contribution +for the current fiscal year. Notwithstanding these operations of the +Treasury Department, representations of distress in business circles not +only continued, but increased, and absolute peril seemed at hand. In these +circumstances the contribution to the sinking fund for the current fiscal +year was at once completed by the expenditure of $27,684,283.55 in the +purchase of Government bonds not yet due bearing 4 and 41/2 per cent +interest, the premium paid thereon averaging about 24 per cent for the +former and 8 per cent for the latter. In addition to this, the interest +accruing during the current year upon the outstanding bonded indebtedness +of the Government was to some extent anticipated, and banks selected as +depositories of public money were permitted to somewhat increase their +deposits. + +While the expedients thus employed to release to the people the money lying +idle in the Treasury served to avert immediate danger, our surplus revenues +have continued to accumulate, the excess for the present year amounting on +the 1st day of December to $55,258,701.19, and estimated to reach the sum +of $113,000,000 on the 30th of June next, at which date it is expected that +this sum, added to prior accumulations, will swell the surplus in the +Treasury to $140,000,000. + +There seems to be no assurance that, with such a withdrawal from use of the +people's circulating medium, our business community may not in the near +future be subjected to the same distress which was quite lately produced +from the same cause. And while the functions of our National Treasury +should be few and simple, and while its best condition would be reached, I +believe, by its entire disconnection with private business interests, yet +when, by a perversion of its purposes, it idly holds money uselessly +subtracted from the channels of trade, there seems to be reason for the +claim that some legitimate means should be devised by the Government to +restore in an emergency, without waste or extravagance, such money to its +place among the people. + +If such an emergency arises, there now exists no clear and undoubted +executive power of relief. Heretofore the redemption of 3 per cent bonds, +which were payable at the option of the Government, has afforded a means +for the disbursement of the excess of our revenues; but these bonds have +all been retired, and there are no bonds outstanding the payment of which +we have a right to insist upon. The contribution to the sinking fund which +furnishes the occasion for expenditure in the purchase of bonds has been +already made for the current year, so that there is no outlet in that +direction. + +In the present state of legislation the only pretense of any existing +executive power to restore at this time any part of our surplus revenues to +the people by its expenditure consists in the supposition that the +Secretary of the Treasury may enter the market and purchase the bonds of +the Government not yet due, at a rate of premium to be agreed upon. The +only provision of law from which such a power could be derived is found in +an appropriation bill passed a number of years ago, and it is subject to +the suspicion that it was intended as temporary and limited in its +application, instead of conferring a continuing discretion and authority. +No condition ought to exist which would justify the grant of power to a +single official, upon his judgment of its necessity, to withhold from or +release to the business of the people, in an unusual manner, money held in +the Treasury, and thus affect at his will the financial situation of the +country; and if it is deemed wise to lodge in the Secretary of the Treasury +the authority in the present juncture to purchase bonds, it should be +plainly vested, and provided, as far as possible, with such checks and +limitations as will define this official's right and discretion and at the +same time relieve him from undue responsibility. + +In considering the question of purchasing bonds as a means of restoring to +circulation the surplus money accumulating in the Treasury, it should be +borne in mind that premiums must of course be paid upon such purchase, that +there may be a large part of these bonds held as investments which can not +be purchased at any price, and that combinations among holders who are +willing to sell may unreasonably enhance the cost of such bonds to the +Government. + +It has been suggested that the present bonded debt might be refunded at a +less rate of interest and the difference between the old and new security +paid in cash, thus finding use for the surplus in the Treasury. The success +of this plan, it is apparent, must depend upon the volition of the holders +of the present bonds; and it is not entirely certain that the inducement +which must be offered them would result in more financial benefit to the +Government than the purchase of bonds, while the latter proposition would +reduce the principal of the debt by actual payment instead of extending +it. + +The proposition to deposit the money held by the Government in banks +throughout the country for use by the people is, it seems to me, +exceedingly objectionable in principle, as establishing too close a +relationship between the operations of the Government Treasury and the +business of the country and too extensive a commingling of their money, +thus fostering an unnatural reliance in private business upon public funds. +If this scheme should be adopted, it should only be done as a temporary +expedient to meet an urgent necessity. Legislative and executive effort +should generally be in the opposite direction, and should have a tendency +to divorce, as much and as fast as can be safely done, the Treasury +Department from private enterprise. + +Of course it is not expected that unnecessary and extravagant +appropriations will be made for the purpose of avoiding the accumulation of +an excess of revenue. Such expenditure, besides the demoralization of all +just conceptions of public duty which it entails, stimulates a habit of +reckless improvidence not in the least consistent with the mission of our +people or the high and beneficent purposes of our Government. + +I have deemed it my duty to thus bring to the knowledge of my countrymen, +as well as to the attention of their representatives charged with the +responsibility of legislative relief, the gravity of our financial +situation. The failure of the Congress heretofore to provide against the +dangers which it was quite evident the very nature of the difficulty must +necessarily produce caused a condition of financial distress and +apprehension since your last adjournment which taxed to the utmost all the +authority and expedients within executive control; and these appear now to +be exhausted. If disaster results from the continued inaction of Congress, +the responsibility must rest where it belongs. + +Though the situation thus far considered is fraught with danger which +should be fully realized, and though it presents features of wrong to the +people as well as peril to the country, it is but a result growing out of a +perfectly palpable and apparent cause, constantly reproducing the same +alarming circumstances--a congested National Treasury and a depleted +monetary condition in the business of the country. It need hardly be stated +that while the present situation demands a remedy, we can only be saved +from a like predicament in the future by the removal of its cause. + +Our scheme of taxation, by means of which this needless surplus is taken +from the people and put into the public Treasury, consists of a tariff or +duty levied upon importations from abroad and internal-revenue taxes levied +upon the consumption of tobacco and spirituous and malt liquors. It must be +conceded that none of the things subjected to internal-revenue taxation +are, strictly speaking, necessaries. There appears to be no just complaint +of this taxation by the consumers of these articles, and there seems to be +nothing so well able to bear the burden without hardship to any portion of +the people. + +But our present tariff laws, the vicious, inequitable, and illogical source +of unnecessary taxation, ought to be at once revised and amended. These +laws, as their primary and plain effect, raise the price to consumers of +all articles imported and subject to duty by precisely the sum paid for +such duties. Thus the amount of the duty measures the tax paid by those who +purchase for use these imported articles. Many of these things, however, +are raised or manufactured in our own country, and the duties now levied +upon foreign goods and products are called protection to these home +manufactures, because they render it possible for those of our people who +are manufacturers to make these taxed articles and sell them for a price +equal to that demanded for the imported goods that have paid customs duty. +So it happens that while comparatively a few use the imported articles, +millions of our people, who never used and never saw any of the foreign +products, purchase and use things of the same kind made in this country, +and pay therefor nearly or quite the same enhanced price which the duty +adds to the imported articles. Those who buy imports pay the duty charged +thereon into the public Treasury, but the great majority of our citizens, +who buy domestic articles of the same class, pay a sum at least +approximately equal to this duty to the home manufacturer. This reference +to the operation of our tariff laws is not made by way of instruction, but +in order that we may be constantly reminded of the manner in which they +impose a burden upon those who consume domestic products as well as those +who consume imported articles, and thus create a tax upon all our people. + +It is not proposed to entirely relieve the country of this taxation. It +must be extensively continued as the source of the Government's income; and +in a readjustment of our tariff the interests of American labor engaged in +manufacture should be carefully considered, as well as the preservation of +our manufacturers. It may be called protection or by any other name, but +relief from the hardships and dangers of our present tariff laws should be +devised with especial precaution against imperiling the existence of our +manufacturing interests. But this existence should not mean a condition +which, without regard to the public welfare or a national exigency, must +always insure the realization of immense profits instead of moderately +profitable returns. As the volume and diversity of our national activities +increase, new recruits are added to those who desire a continuation of the +advantages which they conceive the present system of tariff taxation +directly affords them. So stubbornly have all efforts to reform the present +condition been resisted by those of our fellow-citizens thus engaged that +they can hardly complain of the suspicion, entertained to a certain extent, +that there exists an organized combination all along the line to maintain +their advantage. + +We are in the midst of centennial celebrations, and with becoming pride we +rejoice in American skill and ingenuity, in American energy and enterprise, +and in the wonderful natural advantages and resources developed by a +century's national growth. Yet when an attempt is made to justify a scheme +which permits a tax to be laid upon every consumer in the land for the +benefit of our manufacturers, quite beyond a reasonable demand for +governmental regard, it suits the purposes of advocacy to call our +manufactures infant industries still needing the highest and greatest +degree of favor and fostering care that can be wrung from Federal +legislation. + +It is also said that the increase in the price of domestic manufactures +resulting from the present tariff is necessary in order that higher wages +may be paid to our workingmen employed in manufactories than are paid for +what is called the pauper labor of Europe. All will acknowledge the force +of an argument which involves the welfare and liberal compensation of our +laboring people. Our labor is honorable in the eyes of every American +citizen; and as it lies at the foundation of our development and progress, +it is entitled, without affectation or hypocrisy, to the utmost regard. The +standard of our laborers' life should not be measured by that of any other +country less favored, and they are entitled to their full share of all our +advantages. + +By the last census it is made to appear that of the 17,392,099 of our +population engaged in all kinds of industries 7,670,493 are employed in +agriculture, 4,074,238 in professional and personal service (2,934,876 of +whom are domestic servants and laborers), while 1,810,256 are employed in +trade and transportation and 3,837,112 are classed as employed in +manufacturing and mining. + +For present purposes, however, the last number given should be considerably +reduced. Without attempting to enumerate all, it will be conceded that +there should be deducted from those which it includes 375,143 carpenters +and joiners, 285,401 milliners, dressmakers, and seamstresses, 172,726 +blacksmiths, 133,756 tailors and tailoresses, 102,473 masons, 76,241 +butchers, 41,309 bakers, 22,083 plasterers, and 4,891 engaged in +manufacturing agricultural implements, amounting in the aggregate to +1,214,023, leaving 2,623,089 persons employed in such manufacturing +industries as are claimed to be benefited by a high tariff. + +To these the appeal is made to save their employment and maintain their +wages by resisting a change. There should be no disposition to answer such +suggestions by the allegation that they are in a minority among those who +labor, and therefore should forego an advantage in the interest of low +prices for the majority. Their compensation, as it may be affected by the +operation of tariff laws, should at all times be scrupulously kept in view; +and yet with slight reflection they will not overlook the fact that they +are consumers with the rest; that they too have their own wants and those +of their families to supply from their earnings, and that the price of the +necessaries of life, as well as the amount of their wages, will regulate +the measure of their welfare and comfort. + +But the reduction of taxation demanded should be so measured as not to +necessitate or justify either the loss of employment by the workingman or +the lessening of his wages; and the profits still remaining to the +manufacturer after a necessary readjustment should furnish no excuse for +the sacrifice of the interests of his employees, either in their +opportunity to work or in the diminution of their compensation. Nor can the +worker in manufactures fail to understand that while a high tariff is +claimed to be necessary to allow the payment of remunerative wages, it +certainly results in a very large increase in the price of nearly all sorts +of manufactures, which, in almost countless forms, he needs for the use of +himself and his family. He receives at the desk of his employer his wages, +and perhaps before he reaches his home is obliged, in a purchase for family +use of an article which embraces his own labor, to return in the payment of +the increase in price which the tariff permits the hard-earned compensation +of many days of toil. + +The farmer and the agriculturist, who manufacture nothing, but who pay the +increased price which the tariff imposes upon every agricultural implement, +upon all he wears, and upon all he uses and owns, except the increase of +his flocks and herds and such things as his husbandry produces from the +soil, is invited to aid in maintaining the present situation; and he is +told that a high duty on imported wool is necessary for the benefit of +those who have sheep to shear, in order that the price of their wool may be +increased. They, of course, are not reminded that the farmer who has no +sheep is by this scheme obliged, in his purchases of clothing and woolen +goods, to pay a tribute to his fellow-farmer as well as to the manufacturer +and merchant, nor is any mention made of the fact that the sheep owners +themselves and their households must wear clothing and use other articles +manufactured from the wool they sell at tariff prices, and thus as +consumers must return their share of this increased price to the +tradesman. + +I think it may be fairly assumed that a large proportion of the sheep owned +by the farmers throughout the country are found in small flocks, numbering +from twenty-five to fifty. The duty on the grade of imported wool which +these sheep yield is 10 cents each pound if of the value of 30 cents or +less and 12 cents if of the value of more than 30 cents. If the liberal +estimate of 6 pounds be allowed for each fleece, the duty thereon would be +60 or 72 cents; and this may be taken as the utmost enhancement of its +price to the farmer by reason of this duty. Eighteen dollars would thus +represent the increased price of the wool from twenty-five sheep and $36 +that from the wool of fifty sheep; and at present values this addition +would amount to about one-third of its price. If upon its sale the farmer +receives this or a less tariff profit, the wool leaves his hands charged +with precisely that sum, which in all its changes will adhere to it until +it reaches the consumer. When manufactured into cloth and other goods and +material for use, its cost is not only increased to the extent of the +farmer's tariff profit, but a further sum has been added for the benefit of +the manufacturer under the operation of other tariff laws. In the meantime +the day arrives when the farmer finds it necessary to purchase woolen goods +and material to clothe himself and family for the winter. When he faces the +tradesman for that purpose, he discovers that he is obliged not only to +return in the way of increased prices his tariff profit on the wool he +sold, and which then perhaps lies before him in manufactured form, but that +he must add a considerable sum thereto to meet a further increase in cost +caused by a tariff duty on the manufacture. Thus in the end he is aroused +to the fact that he has paid upon a moderate purchase, as a result of the +tariff scheme, which when he sold his wool seemed so profitable, an +increase in price more than sufficient to sweep away all the tariff profit +he received upon the wool he produced and sold. + +When the number of farmers engaged in wool raising is compared with all the +farmers in the country and the small proportion they bear to our population +is considered; when it is made apparent that in the case of a large part of +those who own sheep the benefit of the present tariff on wool is illusory; +and, above all, when it must be conceded that the increase of the cost of +living caused by such tariff becomes a burden upon those with moderate +means and the poor, the employed and unemployed, the sick and well, and the +young and old, and that it constitutes a tax which with relentless grasp is +fastened upon the clothing of every man, woman, and child in the land, +reasons are suggested why the removal or reduction of this duty should be +included in a revision of our tariff laws. + +In speaking of the increased cost to the consumer of our home manufactures +resulting from a duty laid upon imported articles of the same description, +the fact is not ever looked that competition among our domestic producers +sometimes has the effect of keeping the price of their products below the +highest limit allowed by such duty. But it is notorious that this +competition is too often strangled by combinations quite prevalent at this +time, and frequently called trusts, which have for their object the +regulation of the supply and price of commodities made and sold by members +of the combination. The people can hardly hope for any consideration in the +operation of these selfish schemes. + +If, however, in the absence of such combination, a healthy and free +competition reduces the price of any particular dutiable article of home +production below the limit which it might otherwise reach under our tariff +laws, and if with such reduced price its manufacture continues to thrive, +it is entirely evident that one thing has been discovered which should be +carefully scrutinized in an effort to reduce taxation. + +The necessity of combination to maintain the price of any commodity to the +tariff point furnishes proof that someone is willing to accept lower prices +for such commodity and that such prices are remunerative; and lower prices +produced by competition prove the same thing. Thus where either of these +conditions exists a case would seem to be presented for an easy reduction +of taxation. + +The considerations which have been presented touching our tariff laws are +intended only to enforce an earnest recommendation that the surplus +revenues of the Government be prevented by the reduction of our customs +duties, and at the same time to emphasize a suggestion that in +accomplishing this purpose we may discharge a double duty to our people by +granting to them a measure of relief from tariff taxation in quarters where +it is most needed and from sources where it can be most fairly and justly +accorded. + +Nor can the presentation made of such considerations be with any degree of +fairness regarded as evidence of unfriendliness toward our manufacturing +interests or of any lack of appreciation of their value and importance. + +These interests constitute a leading and most substantial element of our +national greatness and furnish the proud proof of our country's progress. +But if in the emergency that presses upon us our manufacturers are asked to +surrender something for the public good and to avert disaster, their +patriotism, as well as a grateful recognition of advantages already +afforded, should lead them to willing cooperation. No demand is made that +they shall forego all the benefits of governmental regard; but they can not +fail to be admonished of their duty, as well as their enlightened +self-interest and safety, when they are reminded of the fact that financial +panic and collapse, to which the present condition tends, afford no greater +shelter or protection to our manufactures than to other important +enterprises. Opportunity for safe, careful, and deliberate reform is now +offered; and none of us should be unmindful of a time when an abused and +irritated people, heedless of those who have resisted timely and reasonable +relief, may insist upon a radical and sweeping rectification of their +wrongs. + +The difficulty attending a wise and fair revision of our tariff laws is not +underestimated. It will require on the part of the Congress great labor and +care, and especially a broad and national contemplation of the subject and +a patriotic disregard of such local and selfish claims as are unreasonable +and reckless of the welfare of the entire country. + +Under our present laws more than 4,000 articles are subject to duty. Many +of these do not in any way compete with our own manufactures, and many are +hardly worth attention as subjects of revenue. A considerable reduction can +be made in the aggregate by adding them to the free list. The taxation of +luxuries presents no features of hardship; but the necessaries of life used +and consumed by all the people, the duty upon which adds to the cost of +living in every home, should be greatly cheapened. + +The radical reduction of the duties imposed upon raw material used in +manufactures, or its free importation, is of course an important factor in +any effort to reduce the price of these necessaries. It would not only +relieve them from the increased cost caused by the tariff on such material, +but the manufactured product being thus cheapened that part of the tariff +now laid upon such product, as a compensation to our manufacturers for the +present price of raw material, could be accordingly modified. Such +reduction or free importation would serve besides to largely reduce the +revenue. It is not apparent how such a change can have any injurious effect +upon our manufacturers. On the contrary, it would appear to give them a +better chance in foreign markets with the manufacturers of other countries, +who cheapen their wares by free material. Thus our people might have the +opportunity of extending their sales beyond the limits of home consumption, +saving them from the depression, interruption in business, and loss caused +by a glutted domestic market and affording their employees more certain and +steady labor, with its resulting quiet and contentment. + +The question thus imperatively presented for solution should be approached +in a spirit higher than partisanship and considered in the light of that +regard for patriotic duty which should characterize the action of those +intrusted with the weal of a confiding people. But the obligation to +declared party policy and principle is not wanting to urge prompt and +effective action. Both of the great political parties now represented in +the Government have by repeated and authoritative declarations condemned +the condition of our laws which permit the collection from the people of +unnecessary revenue, and have in the most solemn manner promised its +correction; and neither as citizens nor partisans are our countrymen in a +mood to condone the deliberate violation of these pledges. + +Our progress toward a wise conclusion will not be improved by dwelling upon +the theories of protection and free trade. This savors too much of bandying +epithets. It is a condition which confronts us, not a theory. Relief from +this condition may involve a slight reduction of the advantages which we +award our home productions, but the entire withdrawal of such advantages +should not be contemplated. The question of free trade is absolutely +irrelevant, and the persistent claim made in certain quarters that all the +efforts to relieve the people from unjust and unnecessary taxation are +schemes of so-called free traders is mischievous and far removed from any +consideration for the public good. + +The simple and plain duty which we owe the people is to reduce taxation to +the necessary expenses of an economical operation of the Government and to +restore to the business of the country the money which we hold in the +Treasury through the perversion of governmental powers. These things can +and should be done with safety to all our industries, without danger to the +opportunity for remunerative labor which our workingmen need, and with +benefit to them and all our people by cheapening their means of subsistence +and increasing the measure of their comforts. + +The Constitution provides that the President "shall from time to time give +to the Congress information of the state of the Union." It has been the +custom of the Executive, in compliance with this provision, to annually +exhibit to the Congress, at the opening of its session, the general +condition of the country, and to detail with some particularity the +operations of the different Executive Departments. It would be especially +agreeable to follow this course at the present time and to call attention +to the valuable accomplishments of these Departments during the last fiscal +year; but I am so much impressed with the paramount importance of the +subject to which this communication has thus far been devoted that I shall +forego the addition of any other topic, and only urge upon your immediate +consideration the "state of the Union" as shown in the present condition of +our Treasury and our general fiscal situation, upon which every element of +our safety and prosperity depends. + +The reports of the heads of Departments, which will be submitted, contain +full and explicit information touching the transaction of the business +intrusted to them and such recommendations relating to legislation in the +public interest as they deem advisable. I ask for these reports and +recommendations the deliberate examination and action of the legislative +branch of the Government. + +There are other subjects not embraced in the departmental reports demanding +legislative consideration, and which I should be glad to submit. Some of +them, however, have been earnestly presented in previous messages, and as +to them I beg leave to repeat prior recommendations. + +As the law makes no provision for any report from the Department of State, +a brief history of the transactions of that important Department, together +with other matters which it may hereafter be deemed essential to commend to +the attention of the Congress, may furnish the occasion for a future +communication. + +*** + +State of the Union Address +Grover Cleveland +December 3, 1888 + +To the Congress of the United States: + +As you assemble for the discharge of the duties you have assumed as the +representatives of a free and generous people, your meeting is marked by an +interesting and impressive incident. With the expiration of the present +session of the Congress the first century of our constitutional existence +as a nation will be completed. + +Our survival for one hundred years is not sufficient to assure us that we +no longer have dangers to fear in the maintenance, with all its promised +blessings, of a government rounded upon the freedom of the people. The time +rather admonishes us to soberly inquire whether in the past we have always +closely kept in the course of safety, and whether we have before us a way +plain and clear which leads to happiness and perpetuity. + +When the experiment of our Government was undertaken, the chart adopted for +our guidance was the Constitution. Departure from the lines there laid down +is failure. It is only by a strict adherence to the direction they indicate +and by restraint within the limitations they fix that we can furnish proof +to the world of the fitness of the American people for self-government. + +The equal and exact justice of which we boast as the underlying principle +of our institutions should not be confined to the relations of our citizens +to each other. The Government itself is under bond to the American people +that in the exercise of its functions and powers it will deal with the body +of our citizens in a manner scrupulously honest and fair and absolutely +just. It has agreed that American citizenship shall be the only credential +necessary to justify the claim of equality before the law, and that no +condition in life shall give rise to discrimination in the treatment of the +people by their Government. + +The citizen of our Republic in its early days rigidly insisted upon full +compliance with the letter of this bond, and saw stretching out before him +a clear field for individual endeavor. His tribute to the support of his +Government was measured by the cost of its economical maintenance, and he +was secure in the enjoyment of the remaining recompense of his steady and +contented toil. In those days the frugality of the people was stamped upon +their Government, and was enforced by the free, thoughtful, and intelligent +suffrage of the citizen. Combinations, monopolies, and aggregations of +capital were either avoided or sternly regulated and restrained. The pomp +and glitter of governments less free offered no temptation and presented no +delusion to the plain people who, side by side, in friendly competition, +wrought for the ennoblement and dignity of man, for the solution of the +problem of free government, and for the achievement of the grand destiny +awaiting the land which God had given them. + +A century has passed. Our cities are the abiding places of wealth and +luxury; our manufactories yield fortunes never dreamed of by the fathers of +the Republic; our business men are madly striving in the race for riches, +and immense aggregations of capital outrun the imagination in the magnitude +of their undertakings. + +We view with pride and satisfaction this bright picture of our country's +growth and prosperity, while only a closer scrutiny develops a somber +shading. Upon more careful inspection we find the wealth and luxury of our +cities mingled with poverty and wretchedness and unremunerative toil. A +crowded and constantly increasing urban population suggests the +impoverishment of rural sections and discontent with agricultural pursuits. +The farmer's son, not satisfied with his father's simple and laborious +life, joins the eager chase for easily acquired wealth. + +We discover that the fortunes realized by our manufacturers are no longer +solely the reward of sturdy industry and enlightened foresight, but that +they result from the discriminating favor of the Government and are largely +built upon undue exactions from the masses of our people. The gulf between +employers and the employed is constantly widening, and classes are rapidly +forming, one comprising the very rich and powerful, while in another are +found the toiling poor. + +As we view the achievements of aggregated capital, we discover the +existence of trusts, combinations, and monopolies, while the citizen is +struggling far in the rear or is trampled to death beneath an iron heel. +Corporations, which should be the carefully restrained creatures of the law +and the servants of the people, are fast becoming the people's masters. + +Still congratulating ourselves upon the wealth and prosperity of our +country and complacently contemplating every incident of change inseparable +from these conditions, it is our duty as patriotic citizens to inquire at +the present stage of our progress how the bond of the Government made with +the people has been kept and performed. + +Instead of limiting the tribute drawn from our citizens to the necessities +of its economical administration, the Government persists in exacting from +the substance of the people millions which, unapplied and useless, lie +dormant in its Treasury. This flagrant injustice and this breach of faith +and obligation add to extortion the danger attending the diversion of the +currency of the country from the legitimate channels of business. + +Under the same laws by which these results are produced the Government +permits many millions more to be added to the cost of the living of our +people and to be taken from our consumers, which unreasonably swell the +profits of a small but powerful minority. + +The people must still be taxed for the support of the Government under the +operation of tariff laws. But to the extent that the mass of our citizens +are inordinately burdened beyond any useful public purpose and for the +benefit of a favored few, the Government, under pretext of an exercise of +its taxing power, enters gratuitously into partnership with these +favorites, to their advantage and to the injury of a vast majority of our +people. + +This is not equality before the law. + +The existing situation is injurious to the health of our entire body +politic. It stifles in those for whose benefit it is permitted all +patriotic love of country, and substitutes in its place selfish greed and +grasping avarice. Devotion to American citizenship for its own sake and for +what it should accomplish as a motive to our nation's advancement and the +happiness of all our people is displaced by the assumption that the +Government, instead of being the embodiment of equality, is but an +instrumentality through which especial and individual advantages are to be +gained. + +The arrogance of this assumption is unconcealed. It appears in the sordid +disregard of all but personal interests, in the refusal to abate for the +benefit of others one iota of selfish advantage, and in combinations to +perpetuate such advantages through efforts to control legislation and +improperly influence the suffrages of the people. + +The grievances of those not included within the circle of these +beneficiaries, when fully realized, will surely arouse irritation and +discontent. Our farmers, long suffering and patient, struggling in the race +of life with the hardest and most unremitting toil, will not fail to see, +in spite of misrepresentations and misleading fallacies, that they are +obliged to accept such prices for their products as are fixed in foreign +markets where they compete with the farmers of the world; that their lands +are declining in value while their debts increase, and that without +compensating favor they are forced by the action of the Government to pay +for the benefit of others such enhanced prices for the things they need +that the scanty returns of their labor fail to furnish their support or +leave no margin for accumulation. + +Our workingmen, enfranchised from all delusions and no longer frightened by +the cry that their wages are endangered by a just revision of our tariff +laws, will reasonably demand through such revision steadier employment, +cheaper means of living in their homes, freedom for themselves and their +children from the doom of perpetual servitude, and an open door to their +advancement beyond the limits of a laboring class. Others of our citizens, +whose comforts and expenditures are measured by moderate salaries and fixed +incomes, will insist upon the fairness and justice of cheapening the cost +of necessaries for themselves and their families. + +When to the selfishness of the beneficiaries of unjust discrimination under +our laws there shall be added the discontent of those who suffer from such +discrimination, we will realize the fact that the beneficent purposes of +our Government, dependent upon the patriotism and contentment of our +people, are endangered. + +Communism is a hateful thing and a menace to peace and organized +government; but the communism of combined wealth and capital, the outgrowth +of overweening cupidity and selfishness, which insidiously undermines the +justice and integrity of free institutions, is not less dangerous than the +communism of oppressed poverty and toil, which, exasperated by injustice +and discontent, attacks with wild disorder the citadel of rule. + +He mocks the people who proposes that the Government shall protect the rich +and that they in turn will care for the laboring poor. Any intermediary +between the people and their Government or the least delegation of the care +and protection the Government owes to the humblest citizen in the land +makes the boast of free institutions a glittering delusion and the +pretended boon of American citizenship a shameless imposition. + +A just and sensible revision of our tariff laws should be made for the +relief of those of our countrymen who suffer under present conditions. Such +a revision should receive the support of all who love that justice and +equality due to American citizenship; of all who realize that in this +justice and equality our Government finds its strength and its power to +protect the citizen and his property; of all who believe that the contented +competence and comfort of many accord better with the spirit of our +institutions than colossal fortunes unfairly gathered in the hands of a +few; of all who appreciate that the forbearance and fraternity among our +people, which recognize the value of every American interest, are the +surest guaranty of our national progress, and of all who desire to see the +products of American skill and ingenuity in every market of the world, with +a resulting restoration of American commerce. + +The necessity of the reduction of our revenues is so apparent as to be +generally conceded, but the means by which this end shall be accomplished +and the sum of direct benefit which shall result to our citizens present a +controversy of the utmost importance. There should be no scheme accepted as +satisfactory by which the burdens of the people are only apparently +removed. Extravagant appropriations of public money, with all their +demoralizing consequences, should not be tolerated, either as a means of +relieving the Treasury of its present surplus or as furnishing pretext for +resisting a proper reduction in tariff rates. Existing evils and injustice +should be honestly recognized, boldly met, and effectively remedied. There +should be no cessation of the struggle until a plan is perfected, fair and +conservative toward existing industries, but which will reduce the cost to +consumers of the necessaries of life, while it provides for our +manufacturers the advantage of freer raw materials and permits no injury to +the interests of American labor. + +The cause for which the battle is waged is comprised within lines clearly +and distinctly defined. It should never be compromised. It is the people's +cause. + +It can not be denied that the selfish and private interests which are so +persistently heard when efforts are made to deal in a just and +comprehensive manner with our tariff laws are related to, if they are not +responsible for, the sentiment largely prevailing among the people that the +General Government is the fountain of individual and private aid; that it +may be expected to relieve with paternal care the distress of citizens and +communities, and that from the fullness of its Treasury it should, upon the +slightest possible pretext of promoting the general good, apply public +funds to the benefit of localities and individuals. Nor can it be denied +that there is a growing assumption that, as against the Government and in +favor of private claims and interests, the usual rules and limitations of +business principles and just dealing should be waived. + +These ideas have been unhappily much encouraged by legislative +acquiescence. Relief from contracts made with the Government is too easily +accorded in favor of the citizen; the failure to support claims against the +Government by proof is often supplied by no better consideration than the +wealth of the Government and the poverty of the claimant; gratuities in the +form of pensions are granted upon no other real ground than the needy +condition of the applicant, or for reasons less valid; and large sums are +expended for public buildings and other improvements upon representations +scarcely claimed to be related to public needs and necessities. + +The extent to which the consideration of such matters subordinate and +postpone action upon subjects of great public importance, but involving no +special private or partisan interest, should arrest attention and lead to +reformation. + +A few of the numerous illustrations of this condition may be stated. + +The crowded condition of the calendar of the Supreme Court, and the delay +to suitors and denial of justice resulting therefrom, has been strongly +urged upon the attention of the Congress, with a plan for the relief of the +situation approved by those well able to judge of its merits. While this +subject remains without effective consideration, many laws have been passed +providing for the holding of terms of inferior courts at places to suit the +convenience of localities, or to lay the foundation of an application for +the erection of a new public building. + +Repeated recommendations have been submitted for the amendment and change +of the laws relating to our public lands so that their spoliation and +diversion to other uses than as homes for honest settlers might be +prevented. While a measure to meet this conceded necessity of reform +remains awaiting the action of the Congress, many claims to the public +lands and applications for their donation, in favor of States and +individuals, have been allowed. + +A plan in aid of Indian management, recommended by those well informed as +containing valuable features in furtherance of the solution of the Indian +problem, has thus far failed of legislative sanction, while grants of +doubtful expediency to railroad corporations, permitting them to pass +through Indian reservations, have greatly multiplied. + +The propriety and necessity of the erection of one or more prisons for the +confinement of United States convicts, and a post-office building in the +national capital, are not disputed. But these needs yet remain answered, +while scores of public buildings have been erected where their necessity +for public purposes is not apparent. + +A revision of our pension laws could easily be made which would rest upon +just principles and provide for every worthy applicant. But while our +general pension laws remain confused and imperfect, hundreds of private +pension laws are annually passed, which are the sources of unjust +discrimination and popular demoralization. + +Appropriation bills for the support of the Government are defaced by items +and provisions to meet private ends, and it is freely asserted by +responsible and experienced parties that a bill appropriating money for +public internal improvement would fail to meet with favor unless it +contained items more for local and private advantage than for public +benefit. + +These statements can be much emphasized by an ascertainment of the +proportion of Federal legislation which either bears upon its face its +private character or which upon examination develops such a motive power. + +And yet the people wait and expect from their chosen representatives such +patriotic action as will advance the welfare of the entire country; and +this expectation can only be answered by the performance of public duty +with unselfish purpose. Our mission among the nations of the earth and our +success in accomplishing the work God has given the American people to do +require of those intrusted with the making and execution of our laws +perfect devotion, above all other things, to the public good. + +This devotion will lead us to strongly resist all impatience of +constitutional limitations of Federal power and to persistently check the +increasing tendency to extend the scope of Federal legislation into the +domain of State and local jurisdiction upon the plea of subserving the +public welfare. The preservation of the partitions between proper subjects +of Federal and local care and regulation is of such importance under the +Constitution, which is the law of our very existence, that no consideration +of expediency or sentiment should tempt us to enter upon doubtful ground. +We have undertaken to discover and proclaim the richest blessings of a free +government, with the Constitution as our guide. Let us follow the way it +points out; it will not mislead us. And surely no one who has taken upon +himself the solemn obligation to support and preserve the Constitution can +find justification or solace for disloyalty in the excuse that he wandered +and disobeyed in search of a better way to reach the public welfare than +the Constitution offers. + +What has been said is deemed not inappropriate at a time when, from a +century's height, we view the way already trod by the American people and +attempt to discover their future path. + +The seventh President of the United States--the soldier and statesman and +at all times the firm and brave friend of the people--in vindication of his +course as the protector of popular rights and the champion of true American +citizenship, declared: The ambition which leads me on is an anxious desire +and a fixed determination to restore to the people unimpaired the sacred +trust they have confided to my charge; to, heal the wounds of the +Constitution and to preserve it from further violation; to persuade my +countrymen, so far as I may, that it is not in a splendid government +supported by powerful monopolies and aristocratical establishments that +they will find happiness or their liberties protection, but in a plain +system, void of pomp, protecting all and granting favors to none, +dispensing its blessings like the dews of heaven, unseen and unfelt save in +the freshness and beauty they contribute to produce. It is such a +government that the genius of our people requires--such an one only under +which our States may remain for ages to come united, prosperous, and free. +In pursuance of a constitutional provision requiring the President from +time to time to give to the Congress information of the state of the Union, +I have the satisfaction to announce that the close of the year finds the +United States in the enjoyment of domestic tranquillity and at peace with +all the nations. + +Since my last annual message our foreign relations have been strengthened +and improved by performance of international good offices and by new and +renewed treaties of amity, commerce, and reciprocal extradition of +criminals. + +Those international questions which still await settlement are all +reasonably within the domain of amicable negotiation, and there is no +existing subject of dispute between the United States and any foreign power +that is not susceptible of satisfactory adjustment by frank diplomatic +treatment. + +The questions between Great Britain and the United States relating to the +rights of American fishermen, under treaty and international comity, in the +territorial waters of Canada and Newfoundland, I regret to say, are not yet +satisfactorily adjusted. + +These matters were fully treated in my message to the Senate of February 20 +1888, together with which a convention, concluded under my authority with +Her Majesty's Government on the 15th of February last, for the removal of +all causes of misunderstanding, was submitted by me for the approval of the +Senate. + +This treaty having been rejected by the Senate, I transmitted a message to +the Congress on the 23d of August last reviewing the transactions and +submitting for consideration certain recommendations for legislation +concerning the important questions involved. + +Afterwards, on the 12th of September, in response to a resolution of the +Senate, I again communicated fully all the information in my possession as +to the action of the government of Canada affecting the commercial +relations between the Dominion and the United States, including the +treatment of American fishing vessels in the ports and waters of British +North America. + +These communications have all been published, and therefore opened to the +knowledge of both Houses of Congress, although two were addressed to the +Senate alone. + +Comment upon or repetition of their contents would be superfluous, and I am +not aware that anything has since occurred which should be added to the +facts therein stated. Therefore I merely repeat, as applicable to the +present time, the statement which will be found in my message to the Senate +of September 12 last, that--Since March 3, 1887, no case has been reported +to the Department of State wherein complaint was made of unfriendly or +unlawful treatment of American fishing vessels on the part of the Canadian +authorities in which reparation was not promptly and satisfactorily +obtained by the United States consul-general at Halifax. Having essayed in +the discharge of my duty to procure by negotiation the settlement of a +long-standing cause of dispute and to remove a constant menace to the good +relations of the two countries, and continuing to be of opinion that the +treaty of February last, which failed to receive the approval of the +Senate, did supply "a satisfactory, practical, and final adjustment, upon a +basis honorable and just to both parties, of the difficult and vexed +question to which it related," and having subsequently and unavailingly +recommended other legislation to Congress which I hoped would suffice to +meet the exigency created by the rejection of the treaty, I now again +invoke the earnest and immediate attention of the Congress to the condition +of this important question as it now stands before them and the country, +and for the settlement of which I am deeply solicitous. + +Near the close of the month of October last occurrences of a deeply +regrettable nature were brought to my knowledge, which made it my painful +but imperative duty to obtain with as little delay as possible a new +personal channel of diplomatic intercourse in this country with the +Government of Great Britain. + +The correspondence in relation to this incident will in due course be laid +before you, and will disclose the unpardonable conduct of the official +referred to in his interference by advice and counsel with the suffrages of +American citizens in the very crisis of the Presidential election then near +at hand, and also in his subsequent public declarations to justify his +action, superadding impugnment of the Executive and Senate of the United +States in connection with important questions now pending in controversy +between the two Governments. + +The offense thus committed was most grave, involving disastrous +possibilities to the good relations of the United States and Great Britain, +constituting a gross breach of diplomatic privilege and an invasion of the +purely domestic affairs and essential sovereignty of the Government to +which the envoy was accredited. + +Having first fulfilled the just demands of international comity by +affording full opportunity for Her Majesty's Government to act in relief of +the situation, I considered prolongation of discussion to be unwarranted, +and thereupon declined to further recognize the diplomatic character of the +person whose continuance in such function would destroy that mutual +confidence which is essential to the good understanding of the two +Governments and was inconsistent with the welfare and self-respect of the +Government of the United States. + +The usual interchange of communication has since continued through Her +Majesty's legation in this city. + +My endeavors to establish by international cooperation measures for the +prevention of the extermination of fur seals in Bering Sea have not been +relaxed, and I have hopes of being enabled shortly to submit an effective +and satisfactory conventional projet with the maritime powers for the +approval of the Senate. + +The coastal boundary between our Alaskan possessions and British Columbia, +I regret to say, has not received the attention demanded by its importance, +and which on several occasions heretofore I have had the honor to recommend +to the Congress. + +The admitted impracticability, if not impossibility, of making an accurate +and precise survey and demarcation of the boundary line as it is recited in +the treaty with Russia under which Alaska was ceded to the United States +renders it absolutely requisite for the prevention of international +jurisdictional complications that adequate appropriation for a +reconnoissance and survey to obtain proper knowledge of the locality and +the geographical features of the boundary should be authorized by Congress +with as little delay as possible. + +Knowledge to be only thus obtained is an essential prerequisite for +negotiation for ascertaining a common boundary, or as preliminary to any +other mode of settlement. + +It is much to be desired that some agreement should be reached with Her +Majesty's Government by which the damages to life and property on the Great +Lakes may be alleviated by removing or humanely regulating the obstacles to +reciprocal assistance to wrecked or stranded vessels. + +The act of June 19, 1878, which offers to Canadian vessels free access to +our inland waters in aid of wrecked or disabled vessels, has not yet become +effective through concurrent action by Canada. + +The due protection of our citizens of French origin or descent from claim +of military service in the event of their returning to or visiting France +has called forth correspondence which was laid before you at the last +session. + +In the absence of conventional agreement as to naturalization, which is +greatly to be desired, this Government sees no occasion to recede from the +sound position it has maintained not only with regard to France, but as to +all countries with which the United States have not concluded special +treaties. + +Twice within the last year has the imperial household of Germany been +visited by death; and I have hastened to express the sorrow of this people, +and their appreciation of the lofty character of the late aged Emperor +William, and their sympathy with the heroism under suffering of his son the +late Emperor Frederick. + +I renew my recommendation of two years ago for the passage of a bill for +the refunding to certain German steamship lines of the interest upon +tonnage dues illegally exacted. + +On the 12th [2d] of April last I laid before the House of Representatives +full information respecting our interests in Samoa; and in the subsequent +correspondence on the same subject, which will be laid before you in due +course, the history of events in those islands will be found. + +In a message accompanying my approval, on the 1st day of October last, of a +bill for the exclusion of Chinese laborers, I laid before Congress full +information and all correspondence touching the negotiation of the treaty +with China concluded at this capital on the 12th day of March, 1888, and +which, having been confirmed by the Senate with certain amendments, was +rejected by the Chinese Government. This message contained a recommendation +that a sum of money be appropriated as compensation to Chinese subjects who +had suffered injuries at the hands of lawless men within our jurisdiction. +Such appropriation having been duly made, the fund awaits reception by the +Chinese Government. + +It is sincerely hoped that by the cessation of the influx of this class of +Chinese subjects, in accordance with the expressed wish of both +Governments, a cause of unkind feeling has been permanently removed. + +On the 9th of August, 1887, notification was given by the Japanese minister +at this capital of the adjournment of the conference for the revision of +the treaties of Japan with foreign powers, owing to the objection of his +Government to the provision in the draft jurisdictional convention which +required the submission of the criminal code of the Empire to the powers in +advance of its becoming operative. This notification was, however, +accompanied with an assurance of Japan's intention to continue the work of +revision. + +Notwithstanding this temporary interruption of negotiations, it is hoped +that improvements may soon be secured in the jurisdictional system as +respects foreigners in Japan, and relief afforded to that country from the +present undue and oppressive foreign control in matters of commerce. + +I earnestly recommend that relief be provided for the injuries accidentally +caused to Japanese subjects in the island Ikisima by the target practice of +one of our vessels. + +A diplomatic mission from Korea has been received, and the formal +intercourse between the two countries contemplated by the treaty of 1882 is +now established. + +Legislative provision is hereby recommended to organize and equip consular +courts in Korea. + +Persia has established diplomatic representation at this capital, and has +evinced very great interest in the enterprise and achievements of our +citizens. I am therefore hopeful that beneficial commercial relations +between the two countries may be brought about. + +I announce with sincere regret that Hayti has again become the theater of +insurrection, disorder, and bloodshed. The titular government of president +Saloman has been forcibly overthrown and he driven out of the country to +France, where he has since died. + +The tenure of power has been so unstable amid the war of factions that has +ensued since the expulsion of President Saloman that no government +constituted by the will of the Haytian people has been recognized as +administering responsibly the affairs of that country. Our representative +has been instructed to abstain from interference between the warring +factions, and a vessel of our Navy has been sent to Haytian waters to +sustain our minister and for the protection of the persons and property of +American citizens. + +Due precautions have been taken to enforce our neutrality laws and prevent +our territory from becoming the base of military supplies for either of the +warring factions. + +Under color of a blockade, of which no reasonable notice had been given, +and which does not appear to have been efficiently maintained, a seizure of +vessels under the American flag has been reported, and in consequence +measures to prevent and redress any molestation of our innocent merchantmen +have been adopted. + +Proclamation was duly made on the 9th day of November, 1887, of the +conventional extensions of the treaty of June 3, 1875, with Hawaii, under +which relations of such special and beneficent intercourse have been +created. + +In the vast field of Oriental commerce now unfolded from our Pacific +borders no feature presents stronger recommendations for Congressional +action than the establishment of communication by submarine telegraph with +Honolulu. + +The geographical position of the Hawaiian group in relation to our Pacific +States creates a natural interdependency and mutuality of interest which +our present treaties were intended to foster, and which make close +communication a logical and commercial necessity. + +The wisdom of concluding a treaty of commercial reciprocity with Mexico has +been heretofore stated in my messages to Congress, and the lapse of time +and growth of commerce with that close neighbor and sister Republic confirm +the judgment so expressed. + +The precise relocation of our boundary line is needful, and adequate +appropriation is now recommended. + +It is with sincere satisfaction that I am enabled to advert to the spirit +of good neighborhood and friendly cooperation and conciliation that has +marked the correspondence and action of the Mexican authorities in their +share of the task of maintaining law and order about the line of our common +boundary. + +The long-pending boundary dispute between Costa Rica and Nicaragua was +referred to my arbitration, and by an award made on the 22d of March last +the question has been finally settled to the expressed satisfaction of both +of the parties in interest. + +The Empire of Brazil, in abolishing the last vestige of slavery among +Christian nations, called forth the earnest congratulations of this +Government in expression of the cordial sympathies of our people. + +The claims of nearly all other countries against Chile growing out of her +late war with Bolivia and Peru have been disposed of, either by arbitration +or by a lump settlement. Similar claims of our citizens will continue to be +urged upon the Chilean Government, and it is hoped will not be subject to +further delays. + +A comprehensive treaty of amity and commerce with Peru was proclaimed on +November 7 last, and it is expected that under its operation mutual +prosperity and good understanding will be promoted. + +In pursuance of the policy of arbitration, a treaty to settle the claim of +Santos, an American citizen, against Ecuador has been concluded under my +authority, and will be duly submitted for the approval of the Senate. + +Like disposition of the claim of Carlos Butterfield against Denmark and of +Van Bokkelen against Hayti will probably be made, and I trust the principle +of such settlements may be extended in practice under the approval of the +Senate. + +Through unforeseen causes, foreign to the will of both Governments, the +ratification of the convention of December 5, 1885, with Venezuela, for the +rehearing of claims of citizens of the United States under the treaty of +1866, failed of exchange within the term provided, and a supplementary +convention, further extending the time for exchange of ratifications and +explanatory of an ambiguous provision of the prior convention, now awaits +the advice and consent of the Senate. + +Although this matter, in the stage referred to, concerns only the +concurrent treaty-making power of one branch of Congress, I advert to it in +view of the interest repeatedly and conspicuously shown by you in your +legislative capacity in favor of a speedy and equitable adjustment of the +questions growing out of the discredited judgments of the previous mixed +commission of Caracas. With every desire to do justice to the +representations of Venezuela in this regard, the time seems to have come to +end this matter, and I trust the prompt confirmation by both parties of the +supplementary action referred to will avert the need of legislative or +other action to prevent the longer withholding of such rights of actual +claimants as may be shown to exist. + +As authorized by the Congress, preliminary steps have been taken for the +assemblage at this capital during the coming year of the representatives of +South and Central American States, together with those of Mexico, Hayti, +and San Domingo, to discuss sundry important monetary and commercial +topics. + +Excepting in those cases where, from reasons of contiguity of territory and +the existence of a common border line incapable of being guarded, +reciprocal commercial treaties may be found expedient, it is believed that +commercial policies inducing freer mutual exchange of products can be most +advantageously arranged by independent but cooperative legislation. + +In the mode last mentioned the control of our taxation for revenue will be +always retained in our own hands unrestricted by conventional agreements +with other governments. + +In conformity also with Congressional authority, the maritime powers have +been invited to confer in Washington in April next upon the practicability +of devising uniform rules and measures for the greater security of life and +property at sea. A disposition to accept on the part of a number of the +powers has already been manifested, and if the cooperation of the nations +chiefly interested shall be secured important results may be confidently +anticipated. + +The act of June 26, 1884, and the acts amendatory thereof, in relation to +tonnage duties, have given rise to extended correspondence with foreign +nations with whom we have existing treaties of navigation and commerce, and +have caused wide and regrettable divergence of opinion in relation to the +imposition of the duties referred to. These questions are important, and I +shall make them the subject of a special and more detailed communication at +the present session. + +With the rapid increase of immigration to our shores and the facilities of +modern travel, abuses of the generous privileges afforded by our +naturalization laws call for their careful revision. + +The easy and unguarded manner in which certificates of American citizenship +can now be obtained has induced a class, unfortunately large, to avail +themselves of the opportunity to become absolved from allegiance to their +native land, and yet by a foreign residence to escape any just duty and +contribution of service to the country of their proposed adoption. Thus, +while evading the duties of citizenship to the United States, they may make +prompt claim for its national protection and demand its intervention in +their behalf. International complications of a serious nature arise, and +the correspondence of the State Department discloses the great number and +complexity of the questions which have been raised. + +Our laws regulating the issue of passports should be carefully revised, and +the institution of a central bureau of registration at the capital is again +strongly recommended. By this means full particulars of each case of +naturalization in the United States would be secured and properly indexed +and recorded, and thus many cases of spurious citizenship would be detected +and unjust responsibilities would be avoided. + +The reorganization of the consular service is a matter of serious +importance to our national interests. The number of existing principal +consular offices is believed to be greater than is at all necessary for the +conduct of the public business. It need not be our policy to maintain more +than a moderate number of principal offices, each supported by a salary +sufficient to enable the incumbent to live in comfort, and so distributed +as to secure the convenient supervision, through subordinate agencies, of +affairs over a considerable district. + +I repeat the recommendations heretofore made by me that the appropriations +for the maintenance of our diplomatic and consular service should be +recast; that the so-called notarial or unofficial fees, which our +representatives abroad are now permitted to treat as personal perquisites, +should be forbidden; that a system of consular inspection should be +instituted, and that a limited number of secretaries of legation at large +should be authorized. + +Preparations for the centennial celebration, on April 30, 1889, of the +inauguration of George Washington as President of the United States, at the +city of New York, have been made by a voluntary organization of the +citizens of that locality, and believing that an opportunity should be +afforded for the expression of the interest felt throughout the country in +this event, I respectfully recommend fitting and cooperative action by +Congress on behalf of the people of the United States. + +The report of the Secretary of the Treasury exhibits in detail the +condition of our national finances and the operations of the several +branches of the Government related to his Department. + +The total ordinary revenues of the Government for the fiscal year ended +June 30, 1888, amounted to $379,266,074.76, of which $219,091,173.63 was +received from customs duties and $124,296,871.98 from internal revenue +taxes. + +The total receipts from all sources exceeded those for the fiscal year +ended June 30, 1887, by $7,862,797.10. + +The ordinary expenditures of the Government for the fiscal year ending June +30, 1888, were $259,653,958.67, leaving a surplus of $119,612,116.09. + +The decrease in these expenditures as compared with the fiscal year ended +June 30, 1887, was $8,278,221.30, notwithstanding the payment of more than +$5,000,000 for pensions in excess of what was paid for that purpose in the +latter-mentioned year. + +The revenues of the Government for the year ending June 30, 1889, +ascertained for the quarter ended September 30, 1888, and estimated for the +remainder of the time, amount to $377,000,000, and the actual and estimated +ordinary expenditures for the same year are $273,000,000, leaving an +estimated surplus of $104,000,000. + +The estimated receipts for the year ending June 30, 1890, are $377,000,000, +and the estimated ordinary expenditures for the same time are +$275,767,488.34, showing a surplus of $101,232,511.66. + +The foregoing statements of surplus do not take into account the sum +necessary to be expended to meet the requirements of the sinking-fund act, +amounting to more than $47,000,000 annually. + +The cost of collecting the customs revenues for the last fiscal year was +2.44 per cent; for the year 1885 it was 3.77 per cent. + +The excess of internal-revenue taxes collected during the last fiscal year +over those collected for the year ended June 30, 1887, was $5,489,174.26, +and the cost of collecting this revenue decreased from 3.4 per cent in 1887 +to less than 3.2 per cent for the last year. The tax collected on +oleomargarine was $723,948.04 for the year ending June 30, 1887, and +$864,139.88 for the following year. + +The requirements of the sinking-fund act have been met for the year ended +June 30, 1888, and for the current year also, by the purchase of bonds. +After complying with this law as positively required, and bonds sufficient +for that purpose had been bought at a premium, it was not deemed prudent to +further expend the surplus in such purchases until the authority to do so +should be more explicit. A resolution, however, having been passed by both +Houses of Congress removing all doubt as to Executive authority, daily +purchases of bonds were commenced on the 23d day of April, 1888, and have +continued until the present time. By this plan bonds of the Government not +yet due have been purchased up to and including the 30th day of November, +1888, amounting to $94,700,400, the premium paid thereon amounting to +$17,508,613.08. + +The premium added to the principal of these bonds represents an investment +yielding about 2 per cent interest for the time they still had to run, and +the saving to the Government represented by the difference between the +amount of interest at 2 per cent upon the sum paid for principal and +premium and what it would have paid for interest at the rate specified in +the bonds if they had run to their maturity is about $27,165,000. + +At first sight this would seem to be a profitable and sensible transaction +on the part of the Government, but, as suggested by the Secretary of the +Treasury, the surplus thus expended for the purchase of bonds was money +drawn from the people in excess of any actual need of the Government and +was so expended rather than allow it to remain idle in the Treasury. If +this surplus, under the operation of just and equitable laws, had been left +in the hands of the people, it would have been worth in their business at +least 6 per cent per annum. Deducting from the amount of interest upon the +principal and premium of these bonds for the time they had to run at the +rate of 6 per cent the saving of 2 per cent made for the people by the +purchase of such bonds, the loss will appear to be $55,760,000. + +This calculation would seem to demonstrate that if excessive and +unnecessary taxation is continued and the Government is forced to pursue +this policy of purchasing its own bonds at the premiums which it will be +necessary to pay, the loss to the people will be hundreds of millions of +dollars. + +Since the purchase of bonds was undertaken as mentioned nearly all that +have been offered were at last accepted. It has been made quite apparent +that the Government was in danger of being subjected to combinations to +raise their price, as appears by the instance cited by the Secretary of the +offering of bonds of the par value of only $326,000 so often that the +aggregate of the sums demanded for their purchase amounted to more than $ +19,700,000. + +Notwithstanding the large sums paid out in the purchase of bonds, the +surplus in the Treasury on the 30th day of November, 1888, was +$52,234,610.01, after deducting about $20,000,000 just drawn out for the +payment of pensions. + +At the close of the fiscal year ended June 30, 1887, there had been coined +under the compulsory silver-coinage act $266,988,280 in silver dollars, +$55,504,310 of which were in the hands of the people. + +On the 30th day of June, 1888, there had been coined $299,708,790; and of +this $55,829,303 was in circulation in coin, and $200,387,376 in silver +certificates, for the redemption of which silver dollars to that amount +were held by the Government. + +On the 30th day of November, 1888, $312,570,990 had been coined, +$60,970,990 of the silver dollars were actually in circulation, and +$237,418,346 in certificates. + +The Secretary recommends the suspension of the further coinage of silver, +and in such recommendation I earnestly concur. + +For further valuable information and timely recommendations I ask the +careful attention of the Congress to the Secretary's report. + +The Secretary of War reports that the Army at the date of the last +consolidated returns consisted of 2,189 officers and 24,549 enlisted men. + +The actual expenditures of the War Department for the fiscal year ended +June 30, 1888, amounted to $41,165,107.07, of which sum $9,158,516.63 was +expended for public works, including river and harbor improvements. + +"The Board of Ordnance and Fortifications" provided for under the act +approved September 22 last was convened October 30, 1888, and plans and +specifications for procuring forgings for 8, 10, and 12 inch guns, under +provisions of section 4, and also for procuring 12-inch breech-loading +mortars, cast iron, hooped with steel, under the provisions of section 5 of +the said act, were submitted to the Secretary of War for reference to the +board, by the Ordnance Department, on the same date. + +These plans and specifications having been promptly approved by the board +and the Secretary of War, the necessary authority to publish advertisements +inviting proposals in the newspapers throughout the country was granted by +the Secretary on November 12, and on November 13 the advertisements were +sent out to the different newspapers designated. The bids for the steel +forgings are to be opened on December 20, 1888, and for the mortars on +December 15, 1888. + +A board of ordnance officers was convened at the Watervliet Arsenal on +October 4, 1888, to prepare the necessary plans and specifications for the +establishment of an army gun factory at that point. The preliminary report +of this board, with estimates for shop buildings and officers' quarters, +was approved by the Board of Ordnance and Fortifications November 6 and 8. +The specifications and form of advertisement and instructions to bidders +have been prepared, and advertisements inviting proposals for the +excavations for the shop building and for erecting the two sets of +officers' quarters have been published. The detailed drawings and +specifications for the gun-factory building are well in hand, and will be +finished within three or four months, when bids will be invited for the +erection of the building. The list of machines, etc., is made out, and it +is expected that the plans for the large lathes, etc., will be completed +within about four months, and after approval by the Board of Ordnance and +Fortifications bids for furnishing the same will be invited. The machines +and other fixtures will be completed as soon as the shop is in readiness to +receive them, probably about July, 1890. + +Under the provisions of the Army bill for the procurement of pneumatic +dynamite guns, the necessary specifications are now being prepared, and +advertisements for proposals will issue early in December. The guns will +probably be of 15 inches caliber and fire a projectile that will carry a +charge each of about 500 pounds of explosive gelatine with full-caliber +projectiles. The guns will probably be delivered in from six to ten months +from the date of the contract, so that all the guns of this class that can +be procured under the provisions of the law will be purchased during the +year 1889. + +I earnestly request that the recommendations contained in the Secretary's +report, all of which are, in my opinion, calculated to increase the +usefulness and discipline of the Army, may receive the consideration of the +Congress. Among these the proposal that there should be provided a plan for +the examination of officers to test their fitness for promotion is of the +utmost importance. This reform has been before recommended in the reports +of the Secretary, and its expediency is so fully demonstrated by the +argument he presents in its favor that its adoption should no longer be +neglected. + +The death of General Sheridan in August last was a national affliction. The +Army then lost the grandest of its chiefs. The country lost a brave and +experienced soldier, a wise and discreet counselor, and a modest and +sensible man. Those who in any manner came within the range of his personal +association will never fail to pay deserved and willing homage to his +greatness and the glory of his career, but they will cherish with more +tender sensibility the loving memory of his simple, generous, and +considerate nature. + +The Apache Indians, whose removal from their reservation in Arizona +followed the capture of those of their number who engaged in a bloody +and murderous raid during a part of the years 1885 and 1886, are now held +as prisoners of war at Mount Vernon Barracks, in the State of Alabama. They +numbered on the 31st day of October, the date of the last report, 83 men, +170 women, 70 boys, and 59 girls; in all, 382 persons. The commanding +officer states that they are in good health and contented, and that they +are kept employed as fully as is possible in the circumstances. The +children, as they arrive at a suitable age, are sent to the Indian schools +at Carlisle and Hampton. + +Last summer some charitable and kind people asked permission to send two +teachers to these Indians for the purpose of instructing the adults as well +as such children as should be found there. Such permission was readily +granted, accommodations were provided for the teachers, and some portions +of the buildings at the barracks were made available for school purposes. +The good work contemplated has been commenced, and the teachers engaged are +paid by the ladies with whom the plan originated. + +I am not at all in sympathy with those benevolent but injudicious people +who are constantly insisting that these Indians should be returned to their +reservation. Their removal was an absolute necessity if the lives and +property of citizens upon the frontier are to be at all regarded by the +Government. Their continued restraint at a distance from the scene of their +repeated and cruel murders and outrages is still necessary. It is a +mistaken philanthropy, every way injurious, which prompts the desire to see +these savages returned to their old haunts. They are in their present +location as the result of the best judgment of those having official +responsibility in the matter, and who are by no means lacking in kind +consideration for the Indians. A number of these prisoners have forfeited +their lives to outraged law and humanity. Experience has proved that they +are dangerous and can not be trusted. This is true not only of those who on +the warpath have heretofore actually been guilty of atrocious murder, but +of their kindred and friends, who, while they remained upon their +reservation, furnished aid and comfort to those absent with bloody intent. + +These prisoners should be treated kindly and kept in restraint far from the +locality of their former reservation; they should be subjected to efforts +calculated to lead to their improvement and the softening of their savage +and cruel instincts, but their return to their old home should be +persistently resisted. + +The Secretary in his report gives a graphic history of these Indians, and +recites with painful vividness their bloody deeds and the unhappy failure +of the Government to manage them by peaceful means. It will be amazing if a +perusal of this history will allow the survival of a desire for the return +of these prisoners to their reservation upon sentimental or any other +grounds. + +The report of the Secretary of the Navy demonstrates very intelligent +management in that important Department, and discloses the most +satisfactory progress in the work of reconstructing the Navy made during +the past year. Of the ships in course of construction five, viz, the +Charleston, Baltimore, Yorktown, Vesuvius, and the Petrel, have in that +time been launched and are rapidly approaching completion; and in addition +to the above, the Philadelphia, the San Francisco, the Newark, the +Bennington, the Concord, and the Herreshoff torpedo boat are all under +contract for delivery to the Department during the next year. The progress +already made and being made gives good ground for the expectation that +these eleven vessels will be incorporated as part of the American Navy +within the next twelve months. + +The report shows that notwithstanding the large expenditures for new +construction and the additional labor they involve the total ordinary or +current expenditures of the Department for the three years ending June 30, +1888, are less by more than 20 per cent than such expenditures for the +three years ending June 30, 1884. + +The various steps which have been taken to improve the business methods of +the Department are reviewed by the Secretary. The purchasing of supplies +has been consolidated and placed under a responsible bureau head. This has +resulted in the curtailment of open purchases, which in the years 1884 and +1885 amounted to over 50 per cent of all the purchases of the Department, +to less than 11 per cent; so that at the present time about 90 per cent of +the total departmental purchases are made by contract and after +competition. As the expenditures on this account exceed an average of +$2,000,000 annually, it is evident that an important improvement in the +system has been inaugurated and substantial economies introduced. + +The report of the Postmaster-General shows a marked increase of business in +every branch of the postal service. + +The number of post-offices on July 1, 1888, was 57,376, an increase of +6,124 in three years and of 2,219 for the last fiscal year. The +latter-mentioned increase is classified as follows: + +New England States - + +Middle States - 181 + +Southern States and Indian Territory (41) - 1,406 + +The States and Territories of the Pacific Coast - 190 + +The ten States and Territories of the West and Northwest - 435 + +District of Columbia - 2 - + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GROVER CLEVELAND *** + +This file should be named sucle11.txt or sucle11.zip +Corrected EDITIONS of our eBooks get a new NUMBER, sucle12.txt +VERSIONS based on separate sources get new LETTER, sucle10a.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. 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