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] VOLUME 28, SILVER AND PLATED WAR: Nilver Bridal (Gits. The Gorham Company,. SILVEReMITNS, LSTADLIAOED 1831 No. 1 Bond-st,, N. ¥, Rich Dridal Gifts---Tostimonial Pleces---Fam- ily Silver---Forks and 8poons---Services for Ten, Dinuer, Luuch, &e., &e., of:Sterling Purity only, Those destrous of obtaiatng a-tlolos of Solid Silvor, boazlug tha Gorham Statllng Statap (Llon, Aclior, and tholattar G, Wwh ot 18 & positive goaranton of purits, may do so through tho londing Jowelora of this clty upon tarms s farorablo as 1f obtalned from the Gorham Oome panydioct. FIRE INSURANCE, TIGLEE GTREWS MOMTANCE RORICY,; 162 LA SALLE-ST. Commencial Union Assurance Company, London, Assets, $17,010,309.88, Adriati; Tus, Co, iow York, Assets, $300,000. Sliop & Leather Tns.Co,, Boston, Assets, $500,000. Pregeolt Tnsarance o, Doston, Assets, $300,000. Policios issuod covoring degirable hazards in Chicngo and vicinity upon application at our office. RILROAD TULE YABLE, Oommoneing Daa. 6, I’nnscn%flr Trains will copast from and arrive at the Companvy’s Dopot, foot of Scuth Wator-su, au followas Teave 7:40 a.m, and 6:40 p.m, Arrive 8:35 0. m, and 8:35 p.m. Paltman Cars on nizht trein through to ‘Washington oad Baltimore. TIOEWT OFFIOES, No, 02 LaSalle-st. and ot Depot. W. 0. QUINCY, Gonoval Manegor, Proposals for Wronght and Uast-Iron Work for 1he Unifed States Custom-1ouse and Post-Otlice, Bt. Touis, Ilo, Urirep StaTrs Cusraw-oucs axn ) PORLUFTICE, LT, LOTIIR, 0., Offico o1 Supatinivadent, Nov, 15, i\ Sealed Proporals will Lo zeeoived et thn eifico of the Bupe.intondeaz uutil 13m, of the 16:h day of Decamnbor, 1574, for mrnisbing, dofivering, Hitian, and paving 16 placo the Wroughy aad Cagi-lron Wark, compriviud tha Tidlied-tron iearas of Bacomont znd First I loves, aad e Tast-fron Columnus, &o., of Basomenr, all as oxhilbited vn tup Deawinga, dosoriood In tho Spectfications, and calle Torin (e Bcnoduls, Coples of tho Drvinge, Spaclfieations, and Fohodula 3y bo had on apulleation at bhis omico, Al gcalolding rakizad by e ceairastors to put the ‘work{n placy wll be Yaraisiied byilio Govoratmaut frie o Cliarge, but will bo erectodt by thy contractor. Teopiaaia will by mady by tho piceo o vialgt, for, e saious e ol work s saltcd fus 15 1ha Sohdiivlo. "due work will not be snbdivided among ditfornt. Diddors, hut wili be eonsiderad {n 1A axgrozata. The wholo of tha Eollod Beams of tho Baacment Floor mukt bo delivored and sot 1 position wlthio Uieeg inontha from dato of o- S3piAnca ot propeeal, aud tiio Colomns of Basement and iteams of First ¥loor within four mouths from eame dute, or ar requied by the Buporintoudent and tao Prozross of tho work. Pavincnts will bo msda montbly, deduating 10 por u untl tito final complotlon o tho sontesciy s must bo accompatuod by a ponal hond, of twa susibla pateone, i (ko tuw of Tonty-five Thcusand 13 (435,000), 1Bat the biddne will accopt and periorin Zan convract AF awardod him, tho snflolency f (ho aae ity 1o bo cortified by the Uultud Btatos Julje, Clark of thy United States Coutt, or the Dhtriot Atidrnuy of tiis Diatrlot wheroin the biddor rosidas, I o Daprrimont resprvos the right € rajoot any orall bidy, If ¢ bo deenied for tho Litoroat of tho Govornwicat {o'dbeo. livary bid must homado oa tho printed forin, tobnabtaiaod at thisetice, £ud ronstconforin fn overy Eeapect, 0 tho requiremonts of this aUYORtisOmoBt, oF 1% will not bo consldorod. Trupnsals wil not b recotvad fram partlos who zvo not themvalve engnged 1 1o mannfagtir of Verousht wid Ct-fzon Wank, and who have Bos 10 ecassary facilitios ZLor gettiog aut tho work, DEcpcaals i) b inclored In a sealed envelone, fndorsod ids for Wrouphr and Ons:.lron Worls for tuie Unitei Btates Chstom.Houss ud It auly, Mo., aud Sddroinad fo Bupcrintandent. FINANOLAL, Ris AR AR A A FONEY TO LOAN, G200, 85,000, aud largor cums ta Josuton city property 8tYazd 10 por cont. Saucs wiways ap hind, Aok, PALMER, IR, Roows 16 and 17, Ut Washlowcdast, $1,000 T0 LOAN Tor throp voars, at 10 per oant, on Chlengs roal estate, witha widonnareing eush fn band. URNER & NA)SIE, 103 Washington-t, ALLISYEED IN 1855, Fifth-av. Loan Office. D, & J. CASTY, 41 Tifthaay,, o mosdss Watehan, Sowcissy Groibines st sl pvods of galuo, e MISOELLANEGSUS, [LLINOIS CRNTRAL . R, DT IRAmIAn - SPROIAL TNGTICR, Osmmenolug Saturdas, Dac, by the &t, Louts NI 3 prissliavos TG0 38 520 D e WL P B o B ouls evoey niuitly roaciiag L. ‘Louls alBH8 a e, oid lipur by uavanos of any atuer roitto, s Cuiro tnd Now Drloans NIcht Exnrens will alo tun wery uigut botwosn Glicage and Colizalle, Asriving st Uoniralta at 7:00 &, m. hp;’::\ ‘A:‘r‘fli'ur Lfill.‘u nmlulhu Sz\nnn‘:_l!lnl\fl;m ‘(:,‘m(,." on urdss Bight, Wil JoR7o COATTANA BUN tny ALY . i, ¥ ! W B TSR Genetal Passunigor Agoat, LN Oonnection with thin efflon w3 have tho most officent LAy DEPALTMENT in the W nd are prapurad loe Eeporstpracitesac 4 tor, rodcing bosids 1100 .Jous » e, Notles to wham It mey eoncoru, _The sopartnorship erptviore €xlating bmveon Jubn Powoll Rud durepi alor 1n tla day disiolrod By mutual ronssut.’ dunht Dawall will seorive all mouoy dis the lata tirtn uid pay ull ho aebts oI raid mm‘-h »lln‘inl[ Pu|m2’l§vl l“onauuuuv the u-in0 3 of rootig At the old starl aurth-ar, Civago Log, 4 W74 POWKLL & JSALOR, g FURS, A R TR 7 AT R RS T2 50 S S SN L B T R AN LS TR0 A T ) I O 0 Tre SRS LOW PRICES RULE THE DAY ‘WR BHALL CLOSE OUT THR BDAL- ANOH OF OUR STOUK FURST AT THE FOLLOWING PRICES: 300 Children's Fur Cavs at 15 ol8, 900 sels Children’s Inflation Ermine ~~ $1.28 100 stls River Mink 400 15 5215 Lynx Mof 2d Boa 7.00 50 sels Fronch Seal 7.00 100 sels Prime Hlvk 10,00 50 s8ls Choles Mink 12.00 63 & 65 WASHINGTON-8T, Botwoea States nd Dearborn-sts. Branch Homse, Twenly-second-st, and Mickigan-ar, R T I T I RSO VNEE A L TRV E Y I 2 L s Lo MR O R A A e T P Y O e 3000 Sots of Mink, Seal, Lynx, Royal Ermine, Chinchil- 1a, and other Fine Furs. The entire product of a manufactory at facto- Ty prices. EDDY, HARVEY & CARTER, 289 & 241 Madison-st, _ CLOCKS! A largo lot Biantel Clocks and Bronzes of beantiful desigus, Travellny Clocks, Goneva Wartches, and Faney Articles cse peeially appropriate for "Christ- mas and Bridal Presents, just re- ceived from our Pavis Ageuncy. GILES, BRO. & CO,, 268 Wabash-av. COFFEES, i 23 a Having just put up on our Ppremises, 1 and 3 orth Clark- s%., two of the largest size Pat- ont Bteam Coffee Roasters, wo will hereafterbe able to furnish Coffee-Drinkers with the finest qualities of both roasted and ground Coffees, hot from the roaster. HONG ZONG TEA 09, 1 and 3 North Clavk-st, 14 and 10 Sonth Hnlsted.st, Dield & Leiter Market, cor. State & Twenticth-sts, BUSINESS CATIDE. MSTABLISHED 1856, A H MILLER, 61 Washington-st., hetween State and Dearhorn. Tiom Reaty, New Vear's Calling Cand, Originsl_desicuu; minted fn colors, gold, sopia, and Blati,” For suo, iholntalo and sotail, by L 3 ROSIH: THAL, 163 Tadallo.st., Onicago. = Pnhfll ¥ dewrl, wples cau bavo & full got of twonty. five by omittiug oo, ToRSALE., o Enoigs ud Bulss, tal, Uprigh, el Portsble, nnd Mecbinory of il Kine Al lot seconsl-hund Engines, Hojlors, Lathes, Dlapn tieadforclroulg. HAGLE wornies B cuata s Dound. . paund Rl Upwards.). AdUross Ll PREUR T Cotestioner, Ciiva. GTOCKHOLTERS MEETING, “Mofiee of Stockolls’ Hletng T Tho annual moeting of tho Ktockholders of thoe Tifth National ank of Chioago, fortho eloction of Directors for the cnsatng sear, and fo voloon any olianga In the Capltal fitack af sald Bank, will bs held at tho Office aa sntd Hank fn Chicano, on Tucsday, Janm, 13, 1815, be- twaon tho huurs of 3 and 4 p.m, ISAAC Q. LOMBARD, Casbier, Chleego. Deo, 2, 810, TO RENT. For Rent. 'Tlat valuable Wirarf property adjolning Baltimore & Qhlo Railrond Plary, Looust Point, Baltimore, wlth docp waterond rallrord fo Whart, Woll sultod for Westorn Btorzo and Bhipping businoss. Apply to JOLN W, ROSY & ©O,, No, 7 Pattorson-:,, Baltimoro, 3d, Itolor ta Mossrs, U, A, Mals & Co,y 10and 11 Osiontal Bubiding: James O, Claski T i d - Bubding: dunee 0. Uinsks, Ky, Soporiaiondua Lk CHICAGO, TUESDAY, DECEMBER 8, 1874---TWELVE PAGES. THE NATION. Sixth Annual Message of President Grant. The Prostration of Busi- nesgs-Its Causes and * Remedies. A Return to Specie Pay- ments the Great Requi- site of a Return to Prosperity. The Legal-Tender Clauso Should Bo Repealed, and. Free- Banking™"Authorizeds ;] Interfercnce in Cuban Affairs May Become a Matter of Self-Necessity. Our Rovenues Should Be Hucreased, or Expenditures Diminished--- How tho Tarifl Should Bo Readjusted. The President Desires to Avoid, if Possible, Interference with the Affairs of a Siate. Civil-Servieo Reform fo Do Abandoned Un- less Congross Shall Eegislato Positively Thercon, Suggestions Looking to the Revival of Our Carry- ing Trade. Report of the Secretary of the Treasury on the State . of the Finances, A Convineing Argument in Favor of Resumption of Specie Payments, The Resources and Diabilities of the National Banks. The Haval Budgei-.-$16,909,436 Re- quired for Next Year's Expenses. THE NATION. MESSAGE OF PRESIDENT GRANT, Digpatch to the Western Aasocinted Press, ‘WasmNcroy, Dee, 7,—Congress met at noon to-dny ; and, at abous 1:30, the Presidont’s An- nual Measage was received sud read, as follows ¢ THE MESHAGE. T the Senate and Iouss of Rexresentalives? Sinco the convening of Congress one yenr 8go, tho Nation han undergono a YROSTRATION IN BUBINL3S AND INDUSTMER such na hoa not been witnossed with us for mavy yoara, Speculation s to tho causes for this prostration might be indulged in without proflt, becauss ae many theorios would bo ad- vaneed as thera would bo indopondont writors,— thoso who oxpressod their own views, without borrowing upon tho subject. Without indulging in theorics ag to tho causo of thin prostration, theroforo, I will eall your attention only to the fact, and to sowma quostions as to which it would saem thore should Lo uo disagrecment. During this prostration, two ewsential elos monts of prospority have hoen most abundant, LADOR AND CAPITAL loth have been largely unemployed. Whete sccurity has boen undoubted, capital as baen attainnble at very modorato rates. Where labor lins been wanted, ¢ bas beon found in abundanco at cheap rates, compared iith what of the nee- Acsaries and comforts of life conld bo purchased with tho wages demanded? 'T'wogreat elemonts of prosperity therofore hava not beeu donied us. A third might bo sdded. Our goil aud climato aro wnequaled within tho lhmits of sny don- tiguoun territory under ona natiomnlity, ‘for ita varieties of products to foed and clotho the peoplo, and in tho amount of surplus to spare to food less-favoroed poople. ‘Therefors, with thess facts in view, it seems to mo that wiso statosmanship at this session of Congress would dietato ignoring the past and DIFTRIBUTING 1N PROPLR CHANNELS thoso great eloments of prospority to any pac- ple. Debt abroad is tho only element that can, with alweya a sound curroncy, enter into our af~ falra to causo any continued doprossion in the ju- dustrion and prosperity of our poople. A groat contliot for national exiotenoe made necosanry, for temporary purposos, the raislog of large sums of money from whatover woureo attalugble, It made it necossary, in iho wisdem of Congrows, 2nid I donot doubt thole wisdom in the promisos, regmding the nocoupity of the timms, to dovise asystem of natiopal curroncy which proved to bo INPOUSINLIL TO KEEP ON A PAR with tho recognized curroncy of the eivillzed world, This begot a spirit of epooulutlon, iue yolving au extravaganco and luxury not roquired for tho Lappiucss or prospority of o people, sud {uvolving, both directly and fn. dircotly, foreign Indobredness. The cure rency, being of such finctuating value ag to be unsnfe to bold for logitimate tranwaoctions ros «quirlng wonoey, became & subjoct of #peculation in itself, Theso two czuses, howover, havo in- volved usin a foroign indobtednnss, contractod i good faith by borowor and londer, whioh BHOULD DE PAID IN COIN, and aceording Lo the bond agreod upon wlhen the dobt waw contractad,—gold or its cquivalout. Tho goad faith of the Government cannot bo violated towards ercditora without national dis- Yace, Our contmgdres should o encouraged ; Amor- can hipbnilding aod carrylug cepaoity bs n- ctonsed; foreign markots sought for products of the noll and manufactories,~io the end that wo moy bo able to pay tlese dobis, Whers o markot oan bo ecreatod for tho male of our vtaduacts, efther of tho soil, the mine, or the manufactory, 6 now menns is discovered of util- izlug idlo eapital and labor, to tho advantsgoe of the whole peoplo. DBut, in my judgment, the firat slop towards sccontplishing tius object ls 10 securo s ourrency 00D WRENEVER CIVILIZATION REIONS § ono which, if it becomes suporsbundant with one poople, will find a market with some other ; n currency which as s itabasistho labor neces- sary to produco it, which will give its value. Gold and silver aro now tho recognized medituna of exchange the civilized world over, and to this we nliould raturn with tho loast practicable dalny. In viow of tho pledges of tha Amorican Con- groas when our present-legal-tender systom wos adoptod and .debt contracted, there should bo no delay~—ceriainly no unnecessary delay—in Jxing, by legisiation, o method by which wo will return to speclo. To the accomplishmont of this ond, Iinvite your epocial nttention. I belleve firmly that thoro can be 1o prosporons and por- manent revival of businosa and industries until a policy is edopted, with legislation to wvarsy it out, looking to 5 A RETURN 70 A OPUCIE BASIS. 1t is easy to concervo that tho dabtor and apecu- Iativo classes may think it of volue to makean so-called mouoy abundans until thoy ean throw o portion of their burdons upon others ; but evan these, 1 beliove, would bo dinappointed in tho rosult If a courso should bs pursued swhich will keep in doubt the value of tho logal~ tendor medium of exchange,—a rovival of pro- duotive industrioa nooded by sll classes, by nono mors than {he holders of property of whatover eort, with debts to liquidate from' reslization upon its anle, But, admitzing that the two claeses of citizens are to be benefitad by oxpan- sion, e YOULD IT I HONLST togiveit? Would not tho goneral losa bo too zreat to jusly euch relle?? Would it not bo Just ay bonest and prudeut to authorize ench debtor to iseun bis own legal-tenders to the ex- toat of bis linbilitica as to do this? Would it not bo mafor, for fear of over-issues by un~ scrapulous creditors, to eny that all” debt- obligntions aro oblitaratod in the United Blates, und NOW WO commence Rnew,—oach possossing a1l bio has at tho time, troo from incumbrance ? Thess proposttions aro too absurd to ba ont tained for & moment by thinking poople. Every, delay in proparation for fiual resumplion TARTAKES OP THIS DIGHONESTY, and is only loss in dezreo ao the bopo is keld out that o convouiont ssason will at last ariivo for the good work of redeeming our pledgos to com- merco. It will nover como, in my opinion, ex- eopt by positive action by Cougress, or by National disastors winoh will'_doestroy, for o time at loast, tho crodit of individunly and the Stata at largo, A sound carremey must bo reached by tofal bankruploy, or tho eredit aund mtefitity of tho nation and of individuale. 1 belicyo it {8 in tho power of Congrees, at this Aeexion, to deviso such legislation as will renow confidenco, roviva all industrics, start us on a careor of prosperity to last for mauy yaars, and to save the crodit of tho nation and of the peoplo, Steps toward tho returu to a spacie-basis are TIF, GREAT NEQUISITES to this dovoutly to bo songht for end. Theroara others which 1 may touch upon hovenftor, A nation dealing in & curronoy Lolow that of specie in valite, Inbors under two grent dis- advantages. Piret, baving no uso for the world's scknowlodgod medium of exchange, gold and siivor, theso are driven out of the country be- causo thore is no demand for thelruse. Second, tho medium of exchango in use, boing of n flugtuating value, for,—nfter ~all, it is only worth just what it will purchase of gold and eilver, motala baving an_intrinsic valuo just in proportion to the honest Inbor it takes to pro- duca them,—s large margin must be nllowed for profit by tho manufacturer aud preducer. It is wmounths from the dnte of production to tho date of roalization. Interest upon capital must ba oharged, and risk of fluctuation in the value of that which is to be received in paymont added. Hones high prices, neting as-a protection to the foreign producer, who receives nothing in ex- chango for the product of his slafl and ~ labor oxeept n eurroncy good at a ntable valno the world over, IL scems to mo that nothing is clearer than thet tho greater part of the burdon of the existing prostration, for tho waut of o sound financial rystom, TALLA UPON THE WORKING 3(AX, who must, &fter all, produce the wealtl, and the salmied man, who superintends and conduuts business, ‘The burdeu falla upon thom in two ways: by the deprivation of omploymont, and by tho decreased puichasiug power of their sularies, 1t in the duty of Congress to dovise the method of correeting the ovils which are acknowledged to exist, and not mine ; but Iwill venturo tosugyost two or three things which secm to mo s aLA0- Intely necessary o n roturn to specte-payments, The firot great requisito in o raturn to pros- pority i, that the legnl-tendor clauso to tho law authorizing the issus of cnrroency by tha Nation- al Government SIDULD DE REPPALED, tnko effact as to nli contracts ontered into after & dry fixed in tho repenling act, not to apply, howaevaer, to payments of salatics by tho Goveri- ment, or for othter expenses now provided by law to bo paid in currency. Intho interval pend- mg betwaon the repeal: and finat resumption, ‘provision should bo made by which the Secrotn- xy of tho Treasury can obinin gold a8 it baconies nocessary from time to timo till tho dato when Apocio resumption commencos, To tlus might and should be added n revenue sufticiently in oxcens of expenden o inyure un _accumulativn of fold in the Proasury to sustain rodemption, 1 commend this” subject to your careful con- sideration, bellgving thiat a favorable wolution ls attainable; and that, if rvenched by this Con- gress, tho present and future gouorations will ever graiefully romember it ns thoir doliveror Irom n thialidor of evil and dingrace. With resamption, THEE DAN £ may bo anthorized with safaty,~giving tho full protection to bill-holdera which they hive under oxlsting Jaws, Indeed, I weuld Iree banlug we essontial, It wonld gl propor olnsticity {o the currency. As more cur- reucy should bho required” for the traneac- tion _of legitimato businoss, now Danks would . ba ‘started, and, in twn, buks wonld wind up theit business when it was found thora was o auporabundouce of currency. ‘'he exporionco and judgment of the peopls cin best dagido just how muoh eurrency is roquircd for tho transnotion of the businexs of the conn- try. It ia unsate o leave tho Aoviiement of ting quostion to Oongress, tho Becratary of the Trens- wry, or the Exenutive, Congross ahould make ‘l‘hnz rogulations nader which banks may exist, u . RITOULD NOT'MAKE BANKING A MGNOPOLY by Hmitiug the nmount of redeemabls paper- citrronoy that whall be authorized, Such impor- tnnco do I attack to thiy subjoct, and Ro oarnestly do X commond it to your attention, thet I give it (rominonce by introduelng it nt tho beginning of this messago. FOIEIGN RELATIONS. Dnrln%tlm pant year nothing has_ocourrod to disturb the generai friendly and cordial relations of the United Bates with other Powors, “The carraspondenco stubmitted herowith batweon this Govornment and 1ts_diplomatio ropresontatives in other countries shiows s eatlafactory condi- tlon of all tha questions botweon tho Unitod Btatos and the most of those countries, and, withi fow oxcoptious, to which roferonco is hiore- after mado, tho absonco of any points of dif- Toronce to bo adjusted, BLLOIY, The notice directod by tho resolution of Con- fi;u'" of June 17, 1874, to be given to torminato 0 convontion of July 17, 1858, betweon the United States and Bolgium, hay been given, and tha troaty will accordingly tormiuato on the 18t dsy of July, 1875 'fhis conven- tlon socured to “certsin Belgian vessols ontering tho ports of tho Unltod) Htatos oxcop- tlonal privilege whicli ara not accorded to our own venrnls, -~ Othor foatures of tho convantion havo praved matlafactory, and hnva tondod to the enitivation of mutually bonatlelal commorelal in- tor¢durno and friondly rolations botweon the twa couttirion, I hopo that negotiations which have beon nitlated will rosult {n tho conclusion of an- other trealy, which may tend to tho intorosts ot both couutries. CIIRA, Outr rolations with Cluna continue tobo friond- Iy, Dnrdng tho past yoar tho fenr of hoatilition botweon Olina and _Japan, growing out of tho lzuding of an arned fores upon fiw Tsland of Yormoun by tho Isttor, hon ocensioned uncesi nees, Itis esrnestly lopod, howaver, that the difficaltles arlsing from thls eatimo will bo adjuated, and that the advancs of civilization in thess Empires may not bo rotnrded by & ntats of war. 1n cousequencs of tho part taken by core u}m citizons of tho United Staten in this expo- ditlon, our ropresentativos in those couutries havo boon instructed to impress upon tha Gov~ ernmenty of Chigs aud Japan tho firm intention of thin country to maintain_ntrict nentrality 1n tho ovent of Nioatilities, and earefully to prevont eny infraction of law on the part of our cltizena. CRUMKSE IMIONATION, In conncetion with this subjoct, I eall the at- tention of Congross lo n generally-concoded fact, that tho_gront proportion ‘of Chincxo immigrants who como to our shoros do not como volunterily to, maka their homon with us, and their labor productiva af tho gon- oral progperity, but come unddr contract with hoad-men, who own them almost absolutely. In & worso form doos thin apply to Ohinose women, Hnrdly & percoptible percontage of them per~ form any honorablo iabor, T} u{ aro brought for shamaful purposes, to tha dlsgrace of the communities whora settled, and to tho great do- moralizasion of tho youths whoro located, If thin ovil practice can bo legislated against, it will bomy plossnre, an woll au_duty, to enforco any regulation to socuro so desirablo an end. JAPAN. 4 It i hoped that negotiations hetween tho Gor- ernment of Japro and tho Troaty Powers, look- gz to tho further opening of the Empiro, and to tho removal of verious 1estrictionn wpon trado and travel, may soon produce tho result desired, whichs eannot fail to fuuro to tho henefit of all tho parties, b Haviug on provious occasions mibmitted to tho conejdoration of Congress tho propriety of 1ho rolonno of the Jopauveso Government from tho further pnymont of indemnity under the con- vantion of Oct. 22, 1874, aud a8 no action hod boen taken thoreon, it Lecame my duly to regard the obligationg of tho convention agin forca ; aud, 28 tho othor Powors - interested have obimined thoir portion of the indemmity in full, tho Min- ister of the United States in Jspan has, in behalf of this Government, received tbo romaindes of tho amount ~ dus to tho United States under the convention of Simousoky. I submit,tho propricty of applylng tho incowoe of s part, if uot the whole, of this fund, to the education in the Japnnese Ianginagoe of ovumberof young mon, o bo under obliga- tiony to sorve the Govornment for a specitiod timo 08 {utorpraters at ibo Legation and tho Coungulates In Japan. A limited numbor of Japenose youths might, at tho same time, bo educated ~in our own vemnacular, and mutual benefit would result to~ both Governments, The importance of hay- iug our own citizons compolent and familiar with the language of Japau, to act ny interprot- or, and in othor capacitics consocted with the Lepation and Consulates in that country, cannot readily bo over-cstimated. GREAT DRITAIN. Tho smount awarded to the Governmont of Great Duitain DLy tho Mixed Commirsion organ- ized under the provisions of the I'reaty of Wash- wmgton, in settlemont of the claims of Dritish subjects arising trom ncts committed botwonn April 18, 1841, sud April 9, 1803, became payablo, uuder tho terms of the troaty, within tho past year, and was paid upon tho 2at day of Hoplem- ber, 1674, AX ALICN-CTATHS COURT. In this conuection, I renew my recommenda- tion, mado nt tho opauing of tholast kession of Congress, ibat o Apeciul court bhe oreated to Loar and determino sl claims of sliens agninsg the Umited Stales, mising from acts committed # :ainet thoir persous or provorty during the in- surrection, 1bappeara aquitable that opportu- nity should be offered to othor Btates to present their claims, as well ns to thomo British sub- Jocta whose cleims woro not admissible under the Iste Commiasion, to tho ecarly decision of Bome compotent tribunal. Vo this end, I rocom- mend tho necossery logislation to organize o Court to dispose of those clains of alious, of the natura refersed to, in an cquitablo end satisfno- tory manuer, and to relieve Congress nud the Dopertmonty from the consideration of these queations, NEWFOUNDLAND. The legislation necessary to oxtond to the Col- ouy of Newfoundlznd certuin articles of Wash- ington, of tho 8th dny of May, 1871, having been Jind, o protocol to that etfoct wns eigned, in be- half of tho United States and of Great Britain, on the 28th day of May last, apd was duly pro- clniwed on tho following day. A copy of the proclsmation is submitted horowith. TiIE NORTHWESTERN JOUNDART. A copy of the report of the Commigsion ap- pointed under the net of March 19, 1872, for sur- veyiug and markiog the boundary botween thoe United States and tho DBritish Possessiony, from tho Lnke of tho Woods to tho suwmit of the Racky Monntains, iu horowith tranemitted. Iam_ happy to announce that the field-work of the Commigsion has heen complated, and tho eutiro lino, from tho northwest corher of the “Lalko of the Woods to tho sumwit of the Rocky Monbtaing, has been run and marked upon tho surfaco of tho earth. 1t 18 believed that the smotin( remniving unexpended of the appro- priation made ot tho Inst sesmon of Congresy will bo suflicicont to completn the offico-work, I rccommend that authority of Congress bo givon to uso tho unexpendod halanco of tho ap- propriation in tho complation of the work of the Commisgion, in making tho report aud priiting the necessary maps. TIHE ALADAMA CLAINE. The Cowrt known as the Court of Commis- wionors of the Alabama Claims, created by an ace of Cougress nt the last session, haw organ- ized aud commencod to work ; aua it is to be hoped thet the claima sdinissible under tho pro- visions of thoact may bo epeedily ascertained and paid. TUNRRY, Tt has been deomed advisuble {ofoxerciao the diu- cretiou conferred upou the Bxceutive as the last #eesion, by accepting tho conditions required by the Wovernmons of Turksy for the pivilego of sllowing citizens of the United States to hold reul ostato in tha former conutry, and by assant- {ng to o certain chauge {n tho jurisdiction of the conrts in the latter. A copy of the proclamation upon these subjects is herewith commuuicatod, ‘TITE §PANISH-AWERICAN HTATES, Thore has beon no materisl chauge in our re- latious with tho indepondent Btutes of Lbis hemisphoro which wore formerly under tho do- minioh of Hpain. MARAUDING ON TIE MEXIOAN FRONTIGH. Blarauding on tho frontlers botween Moxico and Yoxay still fraquently takes placo, despito tho vigilance of the civil and mililary auchort- tiea in thut Guorler, ‘I'ne dificully of cheoking auoh trespnises nlong the couwrss of » river of such longth as the ltio Crande, sud 8o often fordable, is obvious, Tt ialhoped that tho offorly of this Gavernmout will bo secondod by those of Dexico, to the eectunl wupprossion of ucts of wrong. 2 AMIRICAN AND MEXIGAN TOINT-CLAIME COMMIS~ BION, From a yeport upon tho condition of the busi- nesy before tho Amoviean and Mosican Joint- Clauns Commission, made by the Agont on tho part of the United Btates, dated Oct. 28, 1874, it apponrs that, of the 1,017 claimy filed on tho piet of citizens of the Umited Btates, 483 hud Lcun tingily decided, und 75 wero in the hauds of tho Umpirs,~lonving 402 to bo_diepused of. And, of the D98 clnims flled aguinse the United Btates, 726 lad been finally de- oidod on, oue was before the Umpire, nnd 471 romeined to be disposed of. Since tho dato of such report, other c¢laimy have Leow dis- posed of, reduoing vomowhat tho numbor stitl ponding; rnd othors linve been pssed upon by tho arbitrators. It hias bocomo apparent, i view of these fignres, wud of tho facy thut ha work devolviug on tho umpiro i partiondarly lnborious, that the Commission would be unablo to disposs of the outira number of claime pounding prior “ to tho 1et day of Fobrusry, 1875, —the dalo fixed Yor its expintion. Nogotiations nsre pondiug looking to the aoouring of tho results of the decislons which hiave hieon reaghed, uud to u furthor extonsion of the Commisaton for a limitod time, which, it is confldently hoped, will suftice to bring all the busiuoss 0w befora it to o closo, A TIE ARGENTINE REPUNLIC, Tho atrifo in gho Argentino Iepnbliv.is Lo be deplored, both on account of theparties thorato, and from tho probablo offects on tho intovest of those engagoed in trado to that quarter, of whom tho United Htates aro among the priucipal. An yob, mo far as I am aware, thore bas boont o violntlon of our’ nautrality-rights ; which, so well nm our dutios In that reapoct, it sliall be my endoavor to maintain and obaorve. VINNZUELA. Ttln with rogrob I aunounce that no farther naymont hns boon received from tho tiovornmont of Vouozuola ont account of wards in favor of citlzons of tho Uuitod States. 1lopos have boen ontortaitted that, If the llo;»ubnn could escapo Doth forvign and civil war, forn forv years, its front natural rogources would enabl it to honor is obligations, Tuough it is now understood to bo at poaco with “other countrics, a serious in~ surrcction 6 roported lo o In progrors in an im- portant region of that Republic, This mey bo taken ndvantago of s anothor ronton to delny the payiment of tho dues of our citizons, CURA, T'ho deplorabla nixifo in Cubs continues, with- out any marked chunge in the relalive ndvant- ugen of the contending foreos, T'ho insurroction continues, hut Spain bns gainod no superiovity. Six years of atrifo give tho insurreotion n aignifi- canco which cannot bo -desied, Ita duration, and the tenacity of ita oxiotance, togother with tho absence of manifestad power of supprassion on the part of Bpain, cavnok be controverled, und may mako somo positive stops on the part of other Powers a mattor of salf-neconsity. BPAIN, Lbad confidantly hoped at thia timoe to ha abla to anuounco tho atxangoment of some of tho im- portant questions betweou this Govornment and that of Spain ; but the negotiations havo baou protracted. Tho unhappy intestine disecnsions of H{Anln commuud our profound sympathy, and must bo aceopted ng, pm'hn{w # couso of somo dolny. An carly sottloment, In part ab least, of tho Ruoutlonu botween tho Govornments i hoped. Intho meantimo, awsiting tho results of immediatcly-ponding negotiatious, T dofer o further and fuller communication on the subject of the relations of this country aud Spain, . EXPATRINTION, 1 inva again to call tho attontion of Congress ta tho unuatisfuctory condition of the exiatiog laws with referance to expatriation, nod the olec- tion of nationality. Formerly, umid contlicting oniions and decisions, It ssas diNloult to exactly detormitio how for the dacirine of perpetunl al- logianco was applicablo to citizens of tuo United Btaten, Congreas, by tho act of the 27th of Ju- Iy, 1868, assorted tho abutract right of expatria- tion ny a fubdamentsl prixmfile of this Govern- ment. Notwitlstanding such assertion, and_tho nacnssh{y of fruquont epplication of the princi- ple, no fogislation has beou Lad dofining what zetg or formalities sball work expalristion, or whon o atzen shall Lo deemed to havo renounced or to bave Jost . lug citizenship, Tne importance of such dofinition is obvious, The representativos of tho Unjted Biates in foreign conntries aro continualty called upon to Jend theff aid, and the protoction of tho Unitod Ktatos, {o persons concoruing tho goot faith or the reality of whoso citizouship thero is at loast great question, In gomo casos, the pra- vigtons of tha trosties farnish somo_guido; in othars, it scoms lelt to tho poraons claiming tho benetit of citizonship, while living In forsign country, coutributing in no monuer to the performonce of tho dulies of a citizen of the United States, and without_intention at any time to return snd undertako thoso duties, "to uso the claims of citizenship of tho United Slates simply ny a #biold from tho performance of the obligations of a citizon elsowhere, Tho status of Ameriean children born of Amoricen paronts residing in a foreign conntry; of Awmarican women who have married aliens ; of American citizons reslding abroad, whero suck queation is not rogulated by treaty, are all souices of froquont difficulty and discussion. Legislation, ou theso and similar questions, and patticularly dollning whon and uodor what circumntances oxpatristion can bo accomplished, ar {8 to be presumeaq, is eepocially needad, , FEAUDCLENT NATURALIZATION. In this connoction T oninestly call tho aiten- tion of Congross to the difiieulties arising from fraudulont naturalization, Tho Unltcd States wisely, freoly, and liberally, offers ita citizonship ta all who may como in good faith to reside with- in tta limits, on their complymg with certain pre- ecribed reasonablo and simplo formalitics and conditions, ~ Among tho Lighest duties of the Government i thab to afford tirn, eillcient, and effectual protection to el its citizens, whother native-born or naturalized, Caro ehonld bo taken that & right carzying with it such support from tho Government should not bo traudulontly obtained, and shauld be bestowed only upon full proof of o complianco with the law, There sro frequent instauces of illegal and fraudulont naturalization, and of thoe unsuthor- izod use of certificates thus improperly obtained. I somo oases, tho fraudulont character of the naturalization hias appeared upon the faco of tho certificato iteell ; n others, oxamunation dis- clmies thut tho holder bad not complied with the lawd; and, in others, cortiticatos' Lnve been oh- teanod whero tho persons holding them not only were not entitled to bo naturalized, but had not aven beon within tho Ubited Biates at the timo of the pretonded naturalization. Iustances of encly of thozo classes of fraud ere discovered at our Legatlous, whon thecottifleatos of nnturali- zntion are presented, cither for the pur- ose _of obtaining pansports, - or in 'de~ manding the protoction of the Logation. When tho fraud s plsin on tho face of such cortificates, they are taken up by the represontatives of the Government, and for- warded to the Department of Ktate. DBut aven the record of the Court in which the fraudulent naturalization occurrod remains, and duplicato certificatos ero readily obtainable. Upon tho pregentation of these for tho iseus of Lthe prss- ports, or domanding the protection of the Gov- ernment, tho fyaud somotimes oucapes notico: aud such certitlentes are not infrequontly used in transactions of busiucss, to the deception and Xu{ury of innocent parties. WVithout placiug ony additionsl obstacle in the way of “tho = obtainment of = citi- zonshlp by the worthy and woll-intention- ed forolgner who comos_in good faith to cest his lob with us, I earncktly recom- mond further legislation fo panish frandalent naturalization, and to seccuro tho ready cancolla~ ;qu of ]tuo ragord of evory naturalization made s fraud. THEATIES, Sinco my Jzat annual message, tho oxchange has boon made of tho ratification of frentics of oxtradition with Belglum, Beundor, Leru, sud Balvador ; olgo of o troaty of commerco and nav- igation with Peru, and ouo of comumerco and Consulas privileges with Ban Salvador,—all of which L&ve beon_duly proclaimed ; as has aléo a daclaration with Russia with referenco to frade- ks, THE TREASURY DEPARTMINT, . Ths report of tho Socretary of tio Treasury, which by Inw is mado directly to Congress, and forms no purt of this mesuage, will show the ro- cefpis and expenditares of the Govorument for tho lust fisonl year, the amonnt recolved from ouch source of vevenus, ond the amount paid out for ench of tho Nopartments of the the Goy- ornment, It will be observed from this report that tho amount of raccipts over expoenditires has Leow bnt #2,344 832,80 for tho fiseal yenr ending Juno 80, 1874; and tbet, for tho currant fleeal vear, the estimated recoipty over oxpendilures will mnot much oxcced 89,000,000, In viow of tho larga XNatiounl dobt exieting, and the obligationa to add 1per cont por snnum to the sinlung fund,—a wum amonnting now to over 234,000,000 per an- uum—1 submit whetbor rovenues should uot bo increased or expenditures diminished to ronch this awouvt of surplus, Not to provide for the ninking fund Is n partial foilure ta com- ply with thoe contracts and obligations of the Govorument, At the last sesslon of Congross, a very considerable reduction wha made iu rnton of taxntion, and tho number of articles sub- jected to taxation ; the quostion may woll ba askod, whather or not, iu soms instunces, uu- wiselys Iu connection with this subjeot, too, I venture tho opinion that tho mouny of gullewting the rov- snue, especinlly from imports, inve been 6o em- Darragsed by legislution ns to make it quentione- blo g to whothor or not Inrge nmounts ayo not lost by faslure to colloct, to tho direct loss of the P'rensiwry, anid to the projudico of houost ime portora and tax-payors, NECONMENDATIONS OF THR SECRETARY OF THE TREARUNT. Tho Bocrotary of the Treasury, in his roport, favors legislation looking to wpeciv-paymonin, ~thus supporting views proviously. expressed in this meswago. in approprations; ealls attention to tho losaof royvonue from repesling tha tax on toa and coifeo, without honeils to tho constor; recom- mondi an ncreaso of 10 oonts_a gallou on whis- hy 3 and, furtber, that no modification be mano in tho Davking and Carreucy bill passod st the Inst wessisn of Congresn, nnloss moditleation should biacomo necensary by eason of tho adop- tion of measmes for yoturning to speclo-pay-~ monts, 1n theso recomumendations 1 cordimlly Join. T TARIFE 1 would suggost to Congreau thoe proprioly of o also recommonds economy, NUMBER 108, roadjusling the tarif so as to increase the revonuo, nnd, b ihe wamo time, doe croass the numbor of articles upou which duos .o lovied, Thoso _articloa which onter into oitr snnufactaroy, and aro not produicad at hoino, it scoma to mo should bo ane tered froo. Those rticlen of mannfacturo whiclh wo producon constituont part of, but do not pro- duco tho whola, that part which wo do not pro- duco ehould entor freo alvo, I will Instauce fina wool, dyos, ete. 'Plicso articlea must be import~ od to form o Plr& of tho manufactaro of the bigler grades of woolen goodn, Chomicala nsad @ dyeu, comnounded Iu madicines, und weed fo varioun waye in manufactures, como undor thia aluss, Tho ntroduction, frea of dues, of such wooln g wo do mob produce, atould stipulate the menufecture of goads roquire ing thews, an well a8 of thowo wo da Eruducn, and thorofore would bo o benefit ta omo-production. There aro many articlos on- tering Into home-manufacturcs whicl wo do not produce ourselves, tho {arif upon which in. creases the cont of producing the mavufactursd article, All corrections in thin rezard avo in the dirootion of Ytinging Iabor mnd capital o hiare mony with ooch other, and of supplyiug ono of tho olombnts proporty no much neodod. TIE, ARMY, 'Tho roport of tha Beoretary of War, borewitl atlached, and forming o payt of this monsago, gives nll the information concerning the oper- ationg, wants, and necessitics of the army, end contains many suggestions sud recommonda tioun which I commond to yonr special attention. Thara is uo closs of Qovernment employes wha are harder-worlked than the army ofticors nnd mon,—nous who porform their tasks more choor~ {ully and efliciently, and under cirenmatances ot grantor privations nud havdships. Logiehition fa dozirablo t~reuder more ofliciont this brauch of the publl v RECOM3L o ".q;-umm EECNETARY OF WAR, \\'A"xm s '"-/,s-,,fl) ¢ tho Hocrototy of ar I regaril n. “T-gppocially conme mend to your stioms: /0 R T “»~Thio con- solidation of Govornmew. "y, “Satorne tiou of milenge to ofileors trave * £ 9, Alors; the uxnmglmn of monoy raceivea . "/ Ao sala of subsistouco tores, from being cove.éd inta tho Treasury; the use of appropniations fou tho purchpdo of subaistenco stores, withe out walting for tha bogiuping of tha fiacal yoar for ‘which the appropristion is made; for edditionnl appropriations for the colloction of torpedo-matorinl; for incrensed spproprias tions for tho manufacturo of arms; for relieving tho varlous Statos from indebtoduocss for atma charged to thom duriug the Rebellion ; for drop fug ofticers from tho rolls of tho arary, without rigl, for tho offongo of drawing pay mora thau once for tho samo period: for tho discourage. mont of tho plno to pay saldiors by checks ; and for tho catnblishment of o Professorship of Rhotorio and English Litorature at West Point, The reasonr for tho recommendations are ab. vious, and are got forth sufticiently in the roport attached. . THE 8TATY CONLS. T alao rocommond that the status of the Stall Corps of the army be fixed, whore this has not olready heen doue, so that promotions may ba made, and vacancioa filled as thoy occur in encly grado, wheu reduced bolow the number to ba fixed by law, The negossity for anch lopalation is spocially folt now in the Iay Dopartmont,— the number of vacancles in that Dopnrtment being below the numbor adeguato to tha per< formanco of the duties roquired of them by law. THR NAVY, The officiency of the navy Lins been inc creased duriug” fho Jast year, under tho im. pulso of tho forcizn complications which throatened us at the commencement of the tast session’ of Congross. Most of our oflicient woodon slups wero put in condition for immedic ato sorvice, and tho repnirs of our iron-clad fleef ‘wore pushied with tho uumost vigor. Tho result ir, thut moat of theso nroin an oifective condi- tion, and need only to bo manned and set i commiggion to go at once into sorvice. Somo of tho new eloops anthorized by Conyrens are al< rendy in comnussion, most of tho remninder are lounched, and wsit only the comple« tion of {fheir machinety to eonable them to tako their places a3 part of onr offectiva forca. Two iron torpedo-ships have hoen complatod during thae last yonr, and four of our large double-turreted iron-cinds ore now undorgoing repairs. Wien these are finished, evervthing that is ncodful of our navy as now nuthorized will be in condition for service; and, with the advance in the science of torpodo-war- faro, the American navy, comparatively small ag it 18, will bo found at any time poworful for the purgoses of a peacoful nution. BCIENCE. Much has also beou accomplished, during the year, in aid of scionco, and to incrcase the snng ot gonoral kuowledge, and further tho interesty of commorce and civilization, Extensivo and much-ncoded soundings have boon made for* Dvdrographio purposes, aud_to fix ilhe proper routes of ocennteiographs. Furilier surveys of tho Darien Isthmus have hoon undertaken aud uomfizlnlnd; aud two vessels of tho navy are now employed, in conjunction with those of Eugland, France, Gormany, and Russin, in obsorvationd conuected with the transit of Venus, useful and interosting to tho scientitio world, NAVAL ESTIMATES. The estimntes_for this branch of tho publie norvigo do not. differ materially from thowo of last yoar, tho gonoral mupport of the service boing somewbat less, and those for improve mauts at the various etations rathor larger, thaw the correspouding estimate mndo o year ugo. Tho regular maintonance, and a stoady incroaso in tho efficiency, of tiis most important arm, 1 proportion o the growth of. our maritima inter~ coureo and intorests, ave rocommended to tho at- tion of Congross. . NAVAL DXPLORATIONS. The uste of the navy during peacs might ho further utilized by s direcs authorization of the employment of naval vaasols in surveys of tha suppored pavigable waters of olher nationalitien on this continent,—ospocially the tributaries of ( tha two groat rivors of South Aineries, tlie | Orinocoand tho Amezon. Nothing provents, ' wundor oxisting Jaws, such uxploration, excopt that boyoud thoko usually provided forin the appro- ' priations, The fleld deignated is unguestionably ono of interost, and ons capablo of lurpe dovele opmont of commersinl intercsts, sdvantageous to tho peaplo roucied, and to those Who may entablish rolations with them. » THI, POST-OFFICE, Educztion of the peoplo entitled to oxercise the right of franchiso, 1regard esrontial to gen~ eral prosperity avorywhere, and especially so in. Repnblicy, whers Loth education and pravious condition do not enter {uto account in giving sulltago, Noxt to tho Publio School, tho Posi~ Ofilca” 1a tho great sgent of = education over our vust torritory. - The rapidity with which now scctions are being sottlod—thus ineresking the carrying of the mals in ‘s moro rapid ratio thau the increase of recsipts—is not alarming. The roport af tho Postmastar-Gener- al, berowith attachod, showa that thero was an inoreaso of revonue tu this Dopartimont, in 1873, over tho previous yeur, of 51,674,411, and an ineronse of cost, of errrying the mails and pay - ing employos, of $8,041,467.01, Tho report of the Postmuater-Goaatal gives interesting utatise tics of his Department, compured with the cor- rosponding statistics of n_yenr npo, showing & growth 1 overy braneh of the Department, i TOSIAL CONVENTIONS, A Poatal Convention has boeen concludod with New South Wxles ; an exchange of postal cards egtablished with Switzorlgud ; and negotintiony ponding for several yesrs past with Franco have torminated in o couvantion with thut country, which vont into offect Inst August. INTERNATIONAL POSTAT, CONGIETH. An_International Poatul Congress was con- venod In Berne, Switzerland, in Soptember Taat, ot which tho United Stutes was represonted by an bflicor of the Post-Offico Dopart- ment, of much espericnca oud qualifien tion for iho postion, A conyention for the aatablishment of au Intornationsl Postal Unlou was ugrecd upon by tho delogates of tho conntries ropresonted, subjeot to the approval of tho proper authorities of thoso conutrics, port of tho Poatmastor-General, and to hin Fuge gontiona in regurd to an aquitable adjustment of tho question of composgation to rallronds for carrying tha maile. LODIBIARA. Your attontion will vo dvawn to the unsettied condition of wilairs in somo of the Bouthern States, On the 14tk of Soptember Inaf, tho Governor of Louisiauu callod upon me, a8 vrovided by tho Constitution and Inws of the United Sthtes, to aid in supprossiing domostio violouco in hat Heato, Wl eall was mado in view of & prociamation Issued onthat day by D. B. Psnn, Htating that ho was olocted” Lioutenaul-Gove ernor i 14872, and ealling uzon the militin of the Btate to nrm, askemblo, aud drive from power *tho usirpors,” na ho' designnted the ofe 'a of the Stato Governmont, On the noxt dey Lisanod my proclamation, commanding the l insurgonts o disporso witain dvo days from tha oxpenilituros muat be mede in such expaaditions . T renpoctfully ditock your attontion to the re- R | RO e B