Chicago Daily Tribune Newspaper, December 4, 1877, Page 9

THIE CHICAGO SSDAY, DECEMBER 4, I877—-TWELVE PAGER THE NATIO president Hayos' Message Sub- mitted to the Forty-fifth Congress. He Strongly Favors the Early Resumption of Specie= Payments; Thinks the Remonctizatlon of Silver Would Aid in Iis Consummation ; But Would Not Apply Silver Coin to the Redemption of Govern- meont Bonds, Believing Such Payment Would Be Injurious to the National Credit. The Mexican Border Ques- tion Considered at Great Length, Important Recommenda- tions in_thé Interest of the Indians. National Finances-==Report of the Secretary of the Treasury. Army Matters--~-Report of the Secretary of War. The Post-Offloe Department—Roport of the Postmastor-General, THE SOUTII. RECONCILIATIO! FrLLOW-CITIZENS OF THH. BENATE AND flouse oF REFRESENTATIVES: With great gratl- tude to the bountiful Giver of all good, I con- gratulato you at tho berlnning of vour first regular scsslon. You find our country blessed with health and peace and abundant hacvests, and with encouraginz prospects of an early re- turn of general prosperity. THE BOUTHERN TOLIOY, To completo and make permauent the pacifica~ tion of the country will continue to be, until it 3 {ully accomplished, the most fmportaut of all sur mpational intereats, ‘The carmest pur- poso of good citizens zenerally to unite thelr efforts in those endeavors Is evident. 1t found declded expression in the resolutions announced in 1876 hy the Natlonal Convention of the leading political pariies of the cuuntry. There was a widesprend apprehicnsion that Lhg wamentous results In our progress as a nution, marked by the recent amendmentsto the Conati- tutlon, were IN IMMINENT JEOTARDTY} that the good understanding which prompted their ndoption in the Interest of a loyal devo- tlou to the general woltare might prove a bar- ren truce; and that the scctlons of the count onco engared In efvil atrife might be again al- most as widely severed and disunited us they were when arrayed i arms against each other. The course to be pursucd which fn my judg- ment scemed wisest in the frcwm emerzency was platnly {ndicated tn my Inaugural address. 1t puinted to the thme, which a)) our people de- sire to ace, when a genuine lover of our whole country, aud of all that concerus s welfare, thall supplant the destructive forces of mutual aulmosity of races und ol & AECTIONAL MOSTILITT, Opinlons have dlifered widely as to the m ures best calculnted to sccure this great result, and this was to be expected. Tho measures adopted by the Admiuistration have been sub- Jected 1o° severo and varfed criticiame, Any courso whatever which might bave been entered upon would certululy have encountercd distrust and opposition. These messdres were, In my jJudzment, such us were most in hormony with the Conatl- tutionand with tho gemus of our people, and best adapted. unacr all the clreumstauces, to sttain tho end n view. Beneficent results, al- ready apparent, prove that thess endeavors are bot to be rearded as o picro experiment, and thould sustain and encourage us in our eorts. Already in the brief perfod hich has clapsed tue finmedinte effective- uo less than the justice, of the course pur- sued, 1s demonstrated, and 1 bave an abi ing faith that time wiil furnish z 118 AMPLE VINDICATION in the minds of tho great majority of my fellow- stizens, The discontinuance ot ~the use of the anny for the purpose of upbolding local gov- truments in two States of tho Unlon was noless 3 constitutional duty and requirement under tho clrcumstances existing at the tiwe, than it was & much-needed menaurs for the festoration local self-government. wd the Jlromnflnn of natfonal” harmony. Tho withdrawal of the troups from such erii- pla‘ymv:nt was effectod dellberately and with follcitous caro for the peace and good order ot suclety aud the protection ot tha property and geumu and every right ufall classes of cltizens. he resulta that Lavs followea ara Iudeed slg- eiticant and encouraging, Al apprehension of danger from remitting thosc States to LOUAL HELF-GOVELNMENT Is dispellcd, and n_most salutary change tn the minds of the pmfile hus begunuiid{s In progress In every part oI that section of country, oncethe theatre of unhappy civil strife, substituting for susplelon, distzgat, and aversion, concond, [nendship, aog® patriotic attachment to .the ufon, No unprejudiced mind will denly that the often fata) collfsiona which for scveralyewrs Bave been of frequent vecurrence, and have tlarmed the publie inind, have ALMOGT ENTIHELY CEABED, nd that o spirit of mutual forbearance and Learty uatlonal Interest have succeuded. There has been u general ro-cstobllshment of order sud of the crderly admiu- stration of justice. Instunces of remain- In lawicsgucss hava becomo of rare occurrcnce. “litical turmoll oud turbulence have disa ared, Useful fndustries huve been resumed, iblie credit in the Southern States has been freatly strongthened, and the encouraging Jeuclits of a rovival of commiercy between the sections of tbw coustry lately embrojled iu Ulvil War are freely cufoyed. Buch are some of the reults already attalocy upon which the tountry I8 to b congratulated. Thoy sre of juch toportance that we wmay with coutldence 3utloslly await the deslred consurnmation thuy nill surely come with the natural progress of wools, [t may not bo tiupropet here ¢ that it impropwr bere to say A dould be our tixed aud unalteravle determina- ton to protect, by all avallable and preper Deans under the Constitution and the laws, the latelr ewancipated race fu the experiment of thet righty and ?rl\'llcgv:l. and | urge unon those towhow nervtolore tie colored people have nl:fuuul the relution of bundmen, the wisdom [ Justies of humane aud liveral fucal legialus ;:ixh\vnh respect to thelr education and general Tellare,—n firm adhiereuce to thie laws, both nu- flefi.l aud Statcy us to the civil aud political ;i ¥ of the colored peaple, now advauced to pread equal cltizeuship. The imucdiato re- mfinllun and sure punishment by the national lurhdml authorlties within thelr respective "l:‘l?x:'e'u n{o ever] 'I‘I:Aunt:s o‘ul‘“;’llf“ng‘:. Wi e v T iy sucs required for the CES, ; OF BOTI A :fig I8 justly dewmanded by the pLdlic opinfon of o t“wumr) aud tho age. Iu this wuy the w' ration 6f hermony and “good will und the mlll‘l)uh:m protection of every citlzen to the full surly gt of every coustitutional richt will ul:'f.y be attaiuel.” Wiatever authority resta lunhfm {0 this eud, T ehall uot hesitate to put i Whatever velongs to the puwer of Con- Hiowd sad the Jurlsdiction of tho vourts of the mu&..lm wioy cuntidently bo relied upon to fhuvmu. aud perform, And to the Legislatures, ieveurts, and the Exccutive authoritles of the ) eral Statew, L carnestly appeal to secure by Mm&ne. spuropriate, gud ressouably mweaus o thelr borders these comwon Uberinlioria rights of thy united people. TLY abbors oppression wnd roveres Justice. These objects are very dear to my heart, I shall continue most eurnestly to stvive for thele ttainment. The cordial co-oneration of all classes of all scctiana of the country and of both rac- 8 {8 required for this purposc, and with tiiese blesainga asmcd, and not otherwire, wo moy safely hopo to hand down our free institu- tions of government unimpaired to the geners- tions that wiil sycceed u FINANCE. TIE CURRENCY, Among the other suhjeets of great and gen- eral importance to the people of this country, T cannot be mistaken, I think, inregarding as pre- eminent the polley and measures which are de- signed to sccurs tha restoration of the curreney to that normal aud henlthfal condition in which, by the resumption of specie payments, our In- ternal trado and forelgn commerce may bo brought Into harmony with tho aystem of ex- changes which s based upon the precious met- s as the intrinsic money of the wotld. Inthe public Judgment that this end should be souzht and compassed s specdily and as securely as the resources of the people and the wisdon: of tlefr Government can nccomplish, thero Is n much greater degree of unaniinty thau upon the speclile measures which wili bring the coun- try to THIS DESINRD EXD, or the rapidity of the steps by which 1t can bo safely reached, Upon & most “anxious and de- Tiberata examination, which I have felt it to be my duty to give to_the sublect, Tam but tho more confirmed Inthe opinfou which | expressed in accepting the nowmination for the Presidency, and again upon my inanuration, that THE POLICT OF IESUMPTION should be pursied by every suitable means, and that no legislation woulc be wise that shnuld alsparage the importance or retard the attain. ment of that resnit. I have no disposition, and certalnly no "Fm' to question the sincerity or the intégrity of opposing opiulans, and would neither ~conceal nor undervalue the con- sliderable diflicultles, and ecven occasfonal distresscs, which may attend the progress of the oatfon toward {his primary condition to its general and permanent prosperity. 1 must, however, adhere to my most earncst conviction that any wavering fu purpose, or unsteadiness In metliods, so far from Avelding cr reducing the inconvenience inscimrshble from the tran- sitfon from an irredeemeble to a redeemablo paper currency, would only tend to INCREABED AND PROLONOED DISTURDANCE in values, and, unlecs retleved, must cnd i se- rlous disorder, dishonor, and disaster In the fiuancial nfTuirs of the Government and of the peaple, The wischiefs which I apprehend and urgeutly deprecate are confined Lo no claes of the people, indeed, but seem to me most certaln- 1y to threaten the Industriotis masses, whether l{wlr oceupations ore of skilted or comnion labor. To them, it eecms to me, it s of prime finportauce that thelr labor sliould be compen- sated in money which Is in itself fixed o ex- changeablo value, by being IRREVOCABLY MEASURED by the labor necessary to its production, This permanent quality of the money of the [wopln {8 sought for and can only be gained by the re- sumption of specle payiment. The rich, tho speculative, the operatl "f' thie money-deating classes, may not Always feel the mnlschiefs of, or way find casunl profits In, a variable curren- ¢y, but the misfortunes of such a currency to thosa who arc pald salaries or wages arc inevit- able und remodiless, THE 81LVAR QUESTION, Closely connected with this guneral subject of the resumption of specla paymients, s one of subordinate but stilf of wrave lmportance, I wcnn. the readjustment of our coinage system THE NENEWAL OF TOE SILVER DOLLAR, as an clement in our speclejeurreuey, endawed by legisiation with the quality of fegal-tender to a greater or less extent. As there is no doubt of the puwer of Congress, under the Corstitu- tion, to coln woney and regulate the value there- of, and os thia P"“’“ covers the whule range of authority applicable to the metal, the rated yalug and the legal-tender tlunmv whichi shall he adopted for the coinage, the considerations which should fnduce or discoursge n particalar measure connected with the coluage belong clearly to TIE PHOVINCE OF LEGISLATIVE DISCRETION, and of publle expediency. Without intruding upon this provinee of legislation in the least, 1 have yet thought the subject of such critical finportance, in the actunl ‘condition of our af- falrs, a8 to present an oceaslon for the exercise of thio duty tpused by the Constitution un the President, of recomwending tothe consideration of Coneress such measures as 'ho sholl judge necessury and expedient, holding the oplnfou, 2s 1 do, thut neither the luterests of the Gov- crument nor of the people of the Unfted States would be promoted by disparaging silver as ouo of the two preclous metals which furnish the coinage of the world, and that legisiation which looks to malntaining the volume of intrinale nioney to as [ull a measurs of both metals as thelr “relative commerclal value will permit would bo neither unjust nor fnexpedient, I must nsk your indulgence to a bricf and definite statement of CHITAIN BSSENTIAL FPEATURESR in any such legialative measure, which T feel it my duty to recoinmnend. [ do not propose to cuter the debate represented on both sldes Ly such able disputauts in Congress an:l Lefore tho peoplo and In the press as to the oxtent to which the legfelation ot any one natlun can con- trol this questfon, even within It own borders, ngalnst *ho laws of trade or the positive lawa of otber CGoveromients, ‘Tho wisdom of Congress in -lmplns any feular law that may be presented for my approval, inay wholly super- sede the necessity of my cntering into thelr considerations, aid I wlilingly avold cither vague or intricate Inquiries. It is ouly certain PLAIN AND FPIACTICAL TRAITS of such leglelation that 1 desire to recommed to your attention, In any leuislation providing or o silver culuage, rezulating its value, nnd fmparting to it the quatity of legal-tender, it seceina to me of great linportance that Congress shiould not loso sight of its action as operating 1n a two-fold capscity, and in two distinet direes tions, 1f tho United States Governmgnt wore free from o public debt, ts leaislative dealinz with_ the guestion of sliver cotnagy would be purely soverelgn wud Qovermmnental, under no restralnts but those of Constitutiunal power as affécting the public good by the probosed legistation; but the actual” cireumstances of the nution, with a vast publlc debt, distrib- uted very widely among dar own citlzens and hiold m creat amounts ulso ahroad, the uatura of the sllvercoinage incasuré as allecting this relation of the Government to, $he holders of the public debt becomnes a matter in auy pro- poscd legislution of the highest coucern. The obligation of the public fath transcends all quest fona of profit or public udvantage, other- wise, .aud {ts unquestionable maintenance s the ulumrfltcll of the highest expedlenc S as of most necessary duty, and will ever birefully guarded by Congress snd the peoplcMike. It cannot even add to our peo- ple's seuse of this objection to know, as they do, that such maintenance is the dictate as well of the highest expediency as of the most neceasary duty. TIIE PUDLIO DEDT of tha Upited Btates to the amount of $729,000,- (00 bears Interest at the rate of ¢ per cent and $703,000,000 ot the rate of B per cent, and tho only way (n which the country can bo relleved froin the payment of the high rates of Interest is by udvmmllufi,l.lw refugding the fudebtedn: Whether the debt fu ulthuately paid o gold o silver coln is of BUT LITTLE MOMENT compared with the possible reduction of the in- terest one-third by refunding it at such reduced vate. If the United States biad the unquestion- sliver coin, tho Jit- would bo greath i by the lujurlou:“l efln::l ul‘n:i nt, mado, a8 Propus szaing e Roheat canvictiona of" the public. creditors. All the bonds that have been issued stuce Fob, 2 when gold becamo the only un- Jimited legal-tender metallle curroucy of the country, arv justly payable fu guld coln or In coln of equal value. Duriug the time of theso issues, tho only dollar that could bo or was ro- ceived hy the' (uvernment in eschangs for bonde was the gold dollar. To require the pub- blic creditors to tuke iu repsyment suy dollar of less commercial value woukl by regarded by themn as & repudiation of the fuli oblizution ws- sumed. The bonds fssued prior to 1573 were fi- sued at & time when tho gold dollar was the ouly coln in dreulation or contemplated by eiter tho Goverument or the holders of the bonds as the coin in which they were to be paid. It I8 far better to pay these bonds in that coin than to scem to take advautage of the unforeseen full of ellyer bullion to pay in a new fssue of sllver con that {s mude so much less valuable. ‘The power of the Uulted Btates to coln woney aud to regulste the value thereol OUGUT NEVER TO LE EXELCISND for the purpose of cuabling the Uovernment to ay its obligutions iu a coin of less value than flm contemplated by the purtles when the bouds were Issued. Avy attemnpt to pay the nativnal indebtedness fn & coftage of less com- wervial valuo thao the moncy of the world would iovolve & violation of the ublic fatth uod work irrcparable fnju; he public credit, 1t was the great werit of the et of March, 1568, fo etreustheniog the puolie credit, tbat_ removed ull doudbt us to tho pur- s of the Unlted Statea to pn{ their bonded S‘ém luculp, That act was aceepted o8 a pledge ot public fulth. The Goverument bus DEBIVED UBBAT UENEVIT VUOM IT in the provress thus far wade o refunding the ublic debt st @ low rate of intereat. An oad- crence to,the wise wnd just polley o an exact obscryauce f the public faith wil eoabls the Government rapldly to reduce t nterest on Ll.e Lational debt to an amount ex- ceeding 820,000,000 per annum. and effect an nagregate saving to tiie United States of more than $300,000000 Defure the Londs can he fully pald, In adupting Lhe new aflser cofnage to the ordinary uses of currel In the every day transactions of iife, and pre- rersing the quality of legal-tender to he as- sigied to i, @ conslderation ot L iirst inpor- tance should be so to adjust the rates hetween the sllyer and the gold eninaze, which now con- stitutes onur speclal curren. o to IED BND fon ot the two metallic currencles and Keeping up the volume of the two precious metais as our intrinsic money. It Is n mixed queetion of aclentific reasoning and historical experience to deterniue how far and hy what mcthods a_practicable eqnilibrium can he maintalned which will keep both metals in cireulation tn thelr appropriate apheres of common use. An absolute equality of comacrelal valug, free from disturbing fluctuations, Is hardly attain. able, and without it an untried legal-tender for private transactions, a<signed to both netals, would tend to drive out of circulatlon the dear- est coinage and disappolnt the principal ubject rmnu-c(l by the legistation in view, 1 aptre- hend therefore that the two conditions ol a near approach Lo equality of commercial saluy between the gold and sllver cofnare of the same denomination, and of n lmitation of the anmounts for which the silver comnare 18 to be i lezal-tender, are easential to_maintalning both in efreulation. If these conditions can be sue- cessfully observed, the fssue from the mint of silver dollars would APPORD MATENIAL ASSISTANCE o the community fn_the transition to redeem- able paper money and would faciiitate the re- sunption of apecie payment and its permnnent establlshment, 1Wthout these conditlons I fear that only ischief and misfortune would tlow from a colnage of allver dollars with the quality of unlimited legal-tender cven In private traus- actions. Any oxpectation of temporary ease from an lssue of silver cofnage, to pass a legal- tender at 4 rate materially sbove its commerctal value, I3, I am persuaded, & deluston, nor can 1 think that there Is any substantial distinetion between an originnl Issiie of silver sdollarant o nominal value materially above their commer- clal value, and the restoration uf the silver dol- lar at arate which once was bt hus ceased to be its commercial value. Certainly the fssue of our gold voinaze reduced in weight materially helow 1ts legal-tender value would tot be any the less . A PRESENT DENASEMENT of the colnage by reason of it sequaling or even exceeding In welght n good coinaze which at some past time had been commerclally equal to the legal-tender value assigued to the new issue. In recommending that the rezulationof any sliver colnage which mny be authorized by Con- gress should observd tlicse cotditions of commercial value and Hmited legal- tenders, I am governed by the feeling that every posalble Increase ahould be given to the volume of metalllc money which can be kept in clrculation, and thereby every posslble ald afforaed to the people in the process of resuming specie payments. 1t is beeause of my conviction that a dfsregurd of tnese conditions would frustrate the woud results which are de- slred from the proposed cotnaire, and cmbarrass with new elements of confusion anluncertafuty the businees of the country, that I urge upon your attentton these constderations. 1 respect fully rerommend to Conuress that in nn{ lecislation providing for a silver colnoge and Jmparting to it the quality of ezal-tender there b lmpreased on the measure & firm pro- yislon exempting the publle debt heretofore tssuead and now outstanding from payment, eltherof principal or interest, 1nany cuiiage of Tess value than the preseat gold coliage of the country, CIVIL-S8ERVICE REFORM, WIIAT' 18 NEEDED, The orzanization of the Civil-Service of the country has for a number of years attracted more and more of public attention. So gencral s become the opinton that the methods of ad- misslon to It aud the conditions of remaining In it oro unsound that both the great political parties have agreed in the most explicit declara- tions of the necessity of reform and in themost emphatic demands forit. 1 have fully consid- cred the declarations and demands to be the ex- ‘presafons of aincere corvictionsof the lutelligeut manases of the people upon the subject, and thas they should be recognized amd followed by earnest and prompt action on the part of the Leglslativo and Exzecutlve Departinents of the Government, In pursuatee ot the purpose ine dicated before my accession to ofllee, I ca- deavored to have my own views distinctly un- derstood, and upon iy insuguration my acvord with the mhlle opinlon was stated n terms be- Meved to FLAIN AND UNAMBIGCOUS. My cxperionce In the Executive datics has strongly conflrmed the bellef in the great nd- vantage the country would find in “opserving strictly the plan of ibe Coustitution, which fm- poses upon the Executive the sole duty nnd re- sponsibllity of the sclection of thyses Foderal ufticers who I:ly law are appolnted, not eleeted, and which in ke manner assigns to the Scuate the complete right to ad- viso und consent 1o as well as reject thenomina- tlons ro made, whilat the Houss of Representa- tives stands us the public censor of the perform. ance of ofilcinl dutles, with the prerogative of Investigation aud providing In° all cases of derelection. The Llemisnes unud {mperfections in the Civll Sorvive may, us 1 think, be traced 1o most cases to A PILACTIOAL CONPUSION of the duties asslgned to tho several depart- ments of the Government., My purpose in this respect hos been to return to the system established by the fundamental Iaw, and to do this with tha heartlest co-upera- tion and nust cordial understanding with' the Scnate and House of Represeutatives, The 1 diflculties In theselection of numerons cers for posts of widely-varylne responsiblil- tics and duties are acknowledeed to b very great. Noavstem can be oxpeced to sccure absulute freedom from mistakes, and the be- ginning of any attempted change of custom {s quitd likely to he more emtburrassed in this re- spect than a% any subsequent period. It Is liere that the Constitu- tlon secms to best prove its claim tothe great wisdom accorded toit, It glves to the Executive the assistunce of the kuowledize aud experiouce of the Eenate, which, when st ing upon numinutious as to whicn they mny be DISINTERESTED AND IMPARTIAL JUDORS, and sccures a8 strong o guarunty of freedom from errors of lmsaruncu us 13 perhips posst. blo In human sifairs, In addition to this, T recornize the public advantoze of making all nominations as ucarly as poaslble finpersonal, In tho senso of boing free from mere caprice or fa- vor in these directions; and in those oflices in which apecial training 18 of greatly increased valug [ beliove such a rule us to the tenure of office should obtain us may laduce men of proner qualitications to apply themselyes ludus- triously to the task of becoming proflcients, Tearing these things in mind, I have endeavored to reducs tho number of chianses in subordinate laces usually made upon the change of. the leneral Admintstration, and shall most heartily co-uperate with Congress In better svetematiz- furr snch methods and rules of sdinisston to the publie servive, and of promotion within it, as may promise to be most successful in making thorough vompetency, efliclency, and churacter TIR DRCISIVE TESTS 1n theso matters. 1 usk the rencwed attention hat has alreudy bevn done by tho Civil Bervics l.‘ummllllull"ln]mulc\l in pur- suatice of an act of Congress by my predecessor, to nre‘nw and reviso the Civil Servico rales. In regund to much of the departmental sorvice, es- pecially at Washiugton, it may va difticut to organlze n hetter system than that which has thus fur been provided, aud s now belng used to a considerable extent under wy dircetion. The Commisrion has still & legsl existence, although for several years no apuropriation has been wmule for defraying its expen: Believing that this Cownmlssion has rendered vatusbla e, and will be & most ubusual lfi!llfly fufmproving the administration of the Clvil Service, I ree- omwend that A SUITABLE APPLOPRIATION bo immediately madle to emable it to continuo ftaervice. [L{smy porpese to transmit to Congress, as early as practicable, s report by tuo Chuirman of the Commission, and to asl your attention to such measares upon this sub- i;' a8 in my opinlon will further promote the provement of tha Civil Service, FOREIGN RELATIONS, TUE RUSSO-TURKISU WaK, Duriog the past year the United States have continued to mulntain peaceful relutions with torelgu Power§ The outbreak of war between Russia and Turkey, though atone timé ajtended by grave apprehensions as ld_-.g:‘.q et _upon otler Europeau nstions, hus had n&feudency to disturb the smicable relations esliting be- twecn the United States aud each of the con- tendlug Powers. Au sttitude of just aud fm- partlal ne\ltlfi ty has beeu preserved, and | am ratifivd to state tLat fu the widet of thelr bos- litics buth the Russfan and Turkish Govero- menty buvy shown av caruest deslrs to adbere tu the obhsnuou of ull treatice with ths United Statcs and lflw due regurd to the rights of Aucrican citizeus. ITALT. By the terms of the treaty, defliulog tho rigbts, immuuities, and privilezes of Cunsuls, betweca Italy and the United Btates, ratified fu 1883, _dentlal offiee, It Teo, &, to either (lover t fter the lnpse of ten years, terminate the exiaten e of the treaty by giving twelve montti' notlee of ita intention. The (iovernment of 1taly, availing {taclf of thia facility, has now glyen the required notice, and the treaty will_aceordingly end on the 15th of Beptember, 1878, Tt s understood, however, that the Itallan Government wishes to renew it in fta general seape, desiring only certain moditleations In sotne of ita articles. Inthis dispositton I concur, and shall kope that no serlous obstacles may intervene to prevent or delay the negotlation of a satisfactory treaty. GERMARY, Numerous questions in regard to passports, naturalization, and exemption from militer service have rontinued to arlse in cases of eml- granta from Germany who have returned to thefr native eountry. The provisions of the treaty of Feb, 22, 1855, howerer, have proved to Lie s minnle and ko judleloua that the Legatlon of the Unlted States at Berlin bas been abie to ndjust all elaims arising under u’ nut only with- out detriment to the amicable relations exiating Letween the two Governments, but, It is° lelleved. without finjury or injustice to duly naturalized Amerizan citizens, it s de- glrabla that the treaty originally made with the North German Union in 1847 should now be ex- tended ao as to apply equally to all tne States ol the Emplre of Germany, FRANCE, The Invitation of the Government of France Lo purticiimte la the exposition of the products of agrieuiture, industey, und the fine arts, to be held at Paris -|urlmx the coming year, was sub- mitted for your conslderation at "tho extra sca- gfon, It {anot donbted that its acceptanee by the United States, and a well-selected exhib- tion of the products of Awerlean’ industry on that eccasion, will tend to stimulate Interna- tional commearce and emigration, ne well as to promote the traditions! friendship between the two countries, OREAT DRITAIN, A question orose some time tince na to the proper meaning of the extradition articles of he treaty of 1513 between the United States and Ureat Brilain. Both Governments, howey- er, are now {n accord in the belie! that the yuestion fs not one that should be allowed to rustrate the cnds of justics or to disturb the Iriendship butween the two natlons, No scrigus difticuity has nrisen in accomplishing the extra- dition ot eriminals when necesaary, 1t Is proba- bl that the points of disagreement wlil in due time be settled, and It need be nore explieit declarations can be made in a new treaty, THE PISUERY COMMIIRION, under Artlcles XVIIL to XXV., [reaty of Washington, has concluded its scsaion. sult of the deliberations of the Commission, as made public by the Commissfoners, will be communiated to Congress. A treaty fur the protection of trade-marks tias been negotlated with Great Dritaln, which has {)‘eun submitted to the Scnato for its considera- loim MEXICO. ‘The revolutlon which recently occurred in Mexico was followed vy the accession of the aucs cesaful party to power and the installation of ita Chilef tieneral, Porfirfo Diaz, in the Iresl- has been the custom of the when such changes of Govern- heretofalo occurred in. Mex- 1 recognize and enter into official * relations with the de facto Cov- croment ac soon, g 1L _should apbpear to have the npproval of the Mexiean geople, and should manifest n dlspusition to adhere to the oblizations of treaties and International friend- slilp. In the prescnt case sush officlal recornl- tion has been deferred by the oceurrences on the Rio Grande border, the records of which have already been comimuniented to each House of Congress, in augwer to thetr imperative reso- lutions of inquiry. Assurances have been re- ceived that the authorities at the seat uf the Mexiean Govermnent have both tha disposition and the power to prevent and punish such unlawful igeagons and depreda. tlons. 1t 1s carnestly to §o hoped that events may prove these u-urnu;fl to be well founded. United Statce ment have The beat futerests of bot§ countries roquire the maintenance of pogee vptm the bordes sud the development of commerge between the two Re- publics, It {8 gratifying to add that this tempuorary interruption of olliclal relations has not prevented due atkntion by the representn- 1ives ot the United States in Mexico to the pro- tection of Amcerican citizens as far as possible, nor has it uterferred with the prompt payment of the amounts Gue from Mexieo to the Carted States under the treaty of July 4, 1583, uud the awards of the Jolut Commisston, While 1 do not antleipate un tnterruvtion of friendly re- lations with Mexico, yet I eannat but look with sonie_solicjtude upon o continuance of border divor:lers as expoaing the twvo countries to frri- tations of popular teellng and mischances of action whict are naturaliv unfavorable to com- plete amity. Firmly determined that nothing #hall be wanting ou my part to promote a Juxl understanding between the two natlons, 1 vet must ask the attention of Congress ta the actu- al oceurrences on the bonder, that the lives and property of our citizens may be sdeauately pro- teeted and peace preserved, SPALN, Another year has passed without bringing to a close the protracted coutest between the Spanish Govermnent and the Insurrectlon In thie Taland of Cuba, While the United St have sedulously sustalned from any jnterven- tion in this controversy, it 14 Impossible not to feel it s nttended by lucldents nifecting the rights of Amerlcan citlzens. Apart from the elfvct of the hostilitica upon trade between the United States and Cuba, thelr pragress Is In- evitably sccompamed by complaints, having more or less foundation, of rearclics, orrests, cinbariroes, and oppressive taxes upon the prop- erty ol Amerlean residents, and of unprovoked Interfereneo with Amerfean vessels and comn- meree. It i due to the Guvernmnent of Spain to say that durlng the past year it ins promptly dis- avowedand offered reparation for any unauthor- fzed ueta of unduly zealous subordinates, when ever such acts have been brought tofts at- tentlon, Nevertheless, suich ocvurrences cannot but tend to excite feelings of annoyance, sua- plelot, and resentment, which are rmuly to be depreented between the respective subjects aud citizens of two {riendly Powers, BOUTIL AMERICA. Much delay, conscquent uimn accusations of fraud In some of the awards, has occurred in reapeet to the distribution of the limited amounts reectved from Venezuela under the treaty of April 23,1564, applicable to the awanis of tho Joint Comuulssion created by that treaty, S0 lune us_these matiers are pending in Coi- gress, the Executive cannot assume elther to puss upon the questious presented or to distrib- utu the fund reeetved. It is eminently desirable that definite legislutive action should’ bo taken, elther declding the awards to be fiual or provid- ing some method for re-examination of the clulms, Our relations with ‘the Hepublics of Central and South Americs and with the Emplre of DUrozil lave continued without serfous change, further thaw the temporary in- terruption of diplomatic Intercourse with Venezuela and with Guatemala. Amicable ro- Intions huve already been fully restored with Venezucla, oud it “is not dolbted that all grounds of misunderstanding with Guatemaln will speedily bo removed. From all these coun- triva there ave favorable ludications of a dispo- sition on the part of thelr Governments and peoplu to reciprocate our efforts in tho direction of fucreasad comiercial fntercourse, BAMOA, The Government of the Samoan Islands has scnt an envay in tho person of ita Becretary of Btate to {nvite the Governmtnt of tho United Buates to advise and protect theirindependence, to cetablish commercial relations with their Ewuplu und to ssslat them in thelr steps owande responsiblo and regular government. ‘The {vhabltants of these Islands, bavine made considerable progress iu Christlan_civillzation aud the developuwient of trade, are doubtful of their abllity to matutaln peace and independ- ence withuut the ald of some stronger Puwer, ‘The subject is deemed worthy of respectful at- teation, sud the clatius uponour ussjstance by this distaut colmunity will be carefully cou- wldered, OUR POREIGN TRADE. Thelong commercinl depression fa the United States has dirceted attention to thu subject of the possible tucreass of our foreign trade snd the inethods for fts developmeat, not only with Europe, but with other countries, and especially with the States and Sovercigutice of the Western Homlsphere, Iustructions from the Du;-rumncul ot State were issucd to the va- rious diplomatic and consular officers of the Government asking teutlon to the question of methods by which trade Dbetween the respect- ive countrics of their ottleial residences nud the United States could be most judiciously found- ed, In obedience to the instructions. cxamina- tlons, aud reports upon this subject have been wade by many of these oftle nd transmitted o the Department, and the samo are submitted 10 the cosideration of Congress. DEPARTMENTAL. TUE TREASURY. ‘The suoual report of the Becretary of the ‘Treasury on tho stato of the fosuces presents fwportant questions for the actlon of Congress, upou some of which T have alfeady remarked. ‘The revenues of the Government durlug the Bacal year ending Juue 80 1877, were $260,000,- 556.0% The totsl expenditurcs for the same period wers $233,000,003.93; leavig & surplus revenuo of $30,340,5i7.03. Tlis bas substsu- tlally supplied the roquircients of the sinking fund for that year. Tho eatimated revenues of the curreut scal year aro $305,500.000, and the esthmated uxwud{mxen lor the same period are $LRA30.088 11 these eatiwutes prove to b correct, there will be & surplus revenus of themn to devote at- rlence not only of our own country, countries, to bo eastiy eollected without loss by coffee would produce a reve 000,000, and thus enable Congress to repeal 8 repealed ; and collee all forms of futernal taxation may be 9 —an amount nearly sufficlent for the siokmg fund tor that year. ~ The estimated revenuea for the next fiscal vear are 200,250, 000. 1t appears from the report that durin £ the Tast fiscal yearthe revemtes of the Government, cumpared with the previous year MAVE LARGELY DECREASED. This decreaee, m:ounting to the sum of 818,481, 452, was mainly in cuatoma dutlcs, caused part- Iy by a Jarge falling off of the anount of - ,mr\cd dutlable gotds and partly by the general all of prices in the marketa of productions of such articles as pay valorein taxes, Whiie this {s feit ln‘Jurhmdy tu the dimlnu- tlon of the revenue, {t has been axompanled with s very large increase of expurtations, The total exports during the last fiscal year, inclu- ing cultyy Nas been $6:33,637, 467, und the Inports have heen 8392007510, lecaving a balaoce of trade in favor of the United Ktates amounting to the surn of $160.530.617, the beneficlal cffects of which extend to all branchiea of business. The estimated revenne for the next fiscal year will impose upon Conzresa the duty ot strictly hmiting appropriations, incluaing the requisite sum for the inaintenance of the snking fund, within the nzgrewate-estimated receipts. While the -zfxregalc of taxes should not Le increasad, amendmenta might be tnade to the revenus laws that would, without Jiminishing the reve- 3nn, relieve the people from unnecessary bur- cns. TEA ASD COPFER. A tax vn tea and coffee is shown by the expe- ut of uther undervaluation or fraud, and largely borne in the conntry of productd Atax of 10 centa apound oh tea and 2 cents per pound on ue exceeding $13,- muititude of annoving taxes vielding a reverun not exceeding that suin. The Internal-Revenue systemn grew out of the necessitics of the War, and must of the lezlslatlon imbosteg taxes upon domestie rwdu('lu under this systern lias been by the substitution ofa tax on tea repealed except that on whisky, spirits, tobace co, and becr. rRAUDS, Attention {salso called to the neceasity of enacting more vigorous laws for the protection of the revenue and for the punishinent of frauds and smuggling. This can be best dune by Judicious provisiuns that will luduce the dls- smugelme, Al revenue laws should be lein thele provistons and ecasily under- stood, Ko far us practicable, the rotes of taxa- tiou should be in the form of specifle duties and not ad valorem, requiring the judgment of ex- periznced men tu ascertain values, and exposing the revenue to the temptation of fraud, CUSTOM-IOUSE FRAUDY. My attestion has been called during recess of Cuugreu 10 nbuses existing In the colleetion of the Customs, and streuuous efforts huve bien wmade fur thelr correction by Executive orders. The recommendations submitted to the Secreta- ry ot the Treasury by & Commisslon appointed to exmnine into the tollection of customs dutles ot the port of New York contafn muny sugges- tions for the modification of the Custums lawa to which the attention ot Cunuress is Invited. It {s matter for congratulation that potwith- standing the eevere burdens cuused by the War, thie publfe faith with all creditors” hns be: preserved, and as the result of this policy the publie eredit has continually advanced und our public sccurities are regarded with the highest 1avor in the markets of the world. 1 trust that no act of the Government will cast a shadow upon fts credle, The progress ot re- funding the public debt has been HAPID AND BATISPACTORTY, Under the contract cxistinz when Ientered upon the discharge of the dutles of my oflice, Londs bearinu interest ot the rate ot 4}i Ter cent were belnig rapldly sold, and within three months the agereate sales of these bonds had reached the “sim of $200,000,000. With my sauction, the Sceretary ot the ‘Ireasury entered Into @ new contruct for the eale of 4 per cent bomds, ond within thirty days after the rwular subscription for sich bonds was opened, subscriptions were had amounting to §75,4) ), walen were pald tor within ninety duavs ufter the date of sub- seription. By " this process, within but little more than one year the anntial intercst on the w}:llc debt was reduced o the sum ol 83,770, imurc of attempted fraud by undervaluation I recommend that suitable provision be made to enable the people to eaally convert thelr sav- ings futo Govermpent seciritics, as the beat mode fn which small savivgs may be well se- cured, and yleld o moderate interest. Itds AN OBJECT 0¥ PUBLIC POLICY to retain among our own lwunlc the sceurlties of the United States, o this way our country {s puarded ugalnst their sudden return frotis forefzn countries, caused Ly war or other dis- turbances bcyum.l our itmits. COMMENRCE, The commerre of the Unlted States with forcign nations, and especially the export of dotnestic vbroductions, hins of late vears largely {nereased, but the greater purtion of this trude I conducted fn forelun vessela, The fin. portance of enlarglys our foreixn trade, and especially by dirces and speedy futerchange with countries on this contiuenty CANNOT DR OVERESTIMATED, and it s amatter of great moment that our own shipping interest should recetve to the ut- terinost Pruulml extent the beneflt of onr com- merce with other Jands. Theso coneiderations are foreibly urized Ly all the large commercinl cities of the country,and public atteation is eenerally and wisely attracted to the solution of the problem they present, It{s not doubted that Congress will tako them up In the broad spirit of liberality, and respond to the pubiie l‘!u;mml by practicable legistation upou this sub- ject. WAR DEPARTMENT. The report of the Sucmllr{ of war shows that the army has been actively employed dur- ing the yeary and has rendered very fmportant service In revresslug hostilities in” toe Tndtan country aud preserving the peace, and protect. ing 1ife ond property In the terior as well as along the Mexican border. A long and ardu. ous catpaign lns been prosecuted. with tinol cumplete puceess, nralust w portfon of the Nez Perces tribe of Indians, A full account of this campalgn will be found in the report of the Ueneral of the Army. It will be seen that iu its course scveral battles were fought, In which a nomber of gallant offlcers and men lost thelr lives, I join with the Secretary of War aud the General of the Ann{ n awarding tothe otlicers and mer employed inthe long and tollsome pursuit and inthe final capture of these Tudians the bonur and praise which ls so justly thelr aue. THE RAILNOAD RIOTS. ‘The very seilous riots which accurred in sey- erol of the Stutes InJuly last rendered neces- sary the employment of “a couslderable portion of the ariny to preserve the peace and maintuln order, In'the States of West Virinia, Mary- Iaud, Pennsylvanis, and Ihuols thess disturb- ances becaie so formidable as to defy the local and State nuthorities, and the Nattovs! Execu- tive wos called upon fo the mode provided by the Constitution aund Iaws to furnish military, and ] am gratitied to bo abla to stute that the troops sent Iy response to the calle for ald in the suppression of domestic viole were able, by the intluence of thelr presence in the dis- tured regions, 1o preserye the peace and re- storo ol without the uso of furce. Inthe discharge of this delicate und fuiportant duty both otllcers and men seted with great prudence aud courage, und for thelr services deserve the thanks of the country. THR MEXICAN DORDEI. Disturbances stouy the Rio (irande, in Texas, to which I have already refurred, huve rendered necessary the coustant employment of a mili- tary forve in that vicinlty, A Tull report of all recent nilitury operutions {1, that quarter has been travsmitted to the House of Revresenta- tives, inanswer to a resolution of that body, aud it will not. therefore, be necessary to enter fnta detalls. Iregret to say thet these lawless excursions - inte our territory by armed-bodies from the Mexican side of the Hne, for the pur- pose of rubbery, have been of frequent vceur- rence, and, in spite of the most vigorous etforts of the commander of vur forces, the warsuders bavu geuerally BUCCERDXD IN BSOAPING iuto Mexico with tnewr pruader, 1u May last 1 rave orders for the exerclhe of the utmost vigi: lance ou the part of our troobs for the suppres- sion of theso raids, and the punishment of the Rguilty parties, as well us the recapture of prop- erty stolen by them. 2 J n, Ord, commanding in Toxas, was directed to inyite tue co-operation of the Mexicau au- thorities lu efforts to this end, sud assure them that 1 was auxious to avold giving the least offense to Mexlco; ut the sume tine he was di- rected to give uotjee ot my deteraination to PUT AN END TO THE INVASION OV OUR TE&- BITORY our ceful citizens, even if the effectual punishwent of thu ovutlaws sbould muke the crossing of the border Ly our troops in thelr ursuis necessary. 1t is buileved that this palicy Eulml the cfféct to check somewhat these depredations, and that with a coualderable in- crease uf our force upon that frootier aud the estublishwent ot several additioval military posts n!ouflhn Rio Gruude,so as woreefectunlly to quard that extensive burder, peace miny be rescrved, und the lives aud propeity of dtlzeos Texas fully protected. THR ARNT. Prior to the 1st day of Jul. in accordance with law, red, to the wuxi- wut of 25,000 eulisted weMbelng a reduction of 2,800 below this forve previously authorized. This reduction was made, aa required by law, entirely from the lutuutry sud azithiery brauches of the serviee, without suy reduction of the cavalry. Under tbe law ad it Bow stuuds it 1 ttho aroiy was, by lawless bands Intcut upon the plunder of necessary that the cavaley reziments be re- crufted to 1 men fn each ¢ompany 1or service on the Mexkcan and Indian (rontiers. The nee- esanry effeet of this Teximlatian (s to reduce the infantry anl artillery arms of the rervice helow the nuwmber mlmml for eflictenct, and 1 comcur with the Becretary of War in recommending that authority be given fo re- eruft atl compantes of {nfantey to st least fifty mien, and all Latteries of ardilery Lo at least seventy-five men, with power in case of emer- geney to increase tha former to 100 and the lat- ter to 125 men cach, b RECOMMENDATIONS, I invite your special attentlon to the follow- ing recommendations ot the Secretary of War: irst—That provision be made for supplying 1o the army a more abundant and better subpty of reading matler. Secund—That varly actlon be taken by Con- 58 Jooking to n complete revislon and repub- eation of the army requlations, Third—That Scc. 1,259 of the Revised Statutes, limiting the number of oflicers on the retired Hl!‘he repealad. wurth—That the claims arlsing under the act of July 4. 1834, for sunplica taken by the army duriug the War, bo taken from the oillces of the Quartermaster and Commissary Generals and transferred to the Southern Commission or some other telbunal having more time and better facllitles for thefr prompt Investigation and declslon than are posscased by these officera. Fifth—-Tnat Cnnzren}:ruvhle foran annuity fund for the famltles of deceased snldiers, as recommended by the Paymaster-General of the army. TNR NAVY. The report of the Secretars of the Nary shutvs that we have six squadrons now engaged in the Jvrn(ucl!un of our forefirn commerce and other duties pertalning to the naval serview. The condition and operations of the Depart- ment are also shown. The total expenditures for the fltu\l!'iur endlng June 30, 1877, were 810,073,074.54. There are unpaid clatms ogalust the Demariiment chargeable to the last year whichare presented to the consideration of Congress by the report of the Sceretary. The estimates for the flscal year commencing July 1, 157, are 310,255, 24,40, exclusive of the swn of §2,314,231 submitted for new bulldings, re- g,:m, and lmprovements at the scveral Navy- ards. The -umuyrlu\l fur the present flseal year connnencing July, 1877, are 313.502,952.00, ‘The amount drawn from the Treasury from July 1 to Nov. 1, 1577, fs $3,313,087.40, of which there is estimated to be yet avallable, g 723,80, showing the amount of actual expenditure durinz the first four months of thie present fiseal year to have been $4,313,500.10. TIE POST-OPPICE. The renort of the Postmaster-(icneral con- tains a full and clear statement of the opera- tlons aud condition of the Post-Offlce Depurtment, The ordinary revenues of the Departmient for the liseal year end- fng June 1877, ducluding roceipts from the noney-order business and from oflicial stamps and stamped envel- ooes amounted to the sum of 87531, 845,20, “The additional sum of £1,013,000 was realized from apyropriations from the tGeneral Treasury for various purposer, making the re- ceits from all sources, &H.664.835.20. The total cxpenditures during the tlscal year amounted Lo $35,430,320.44, leavingan excess of total recelpts over total expenditures of £1,008,562.52 and at cxcess of total expenditures over ordinary re- ceipts uf €5050.93718. Deducting from’ the total recelpts the sum of $63,291,541 re- ceived from International monev-orders of the receding fiscal year, aud deduct- ing drom the total * cxpenditures the sutn of $103,818.20 patd on labilities Lncurred inthe previons fiscal vear, the exoendl- tures and recelpts avpertatnini tothe businessof the last fircal year were as follows: Expendl- tures, Ra23004.245 recelnts (unlinary, from muney-onler Lusiness and from ofiicial pustage- stamus), £27,408,824.42. Exceas of expenditures, $4.854,180.42, The ordinary revenue of the Post-Oilico De- partmrent for the year ending June 80, 1870, are esttinated at an increase of ¥ per cent over those of 1577, making 820,34,003.29, and the expend- ftures for the same vear are catimated at #:33,- 27,771, leaving an estimated deticlency for 1570 of $7.308,002.02 The additional leglslation recommended by the Postmaster-Gieneral for fmprovements ol the mali service and to protect the postal rev- enucs from the abuses practived under existing laws, is respectfully commended to the careful conslueration of the Congresslonal. ‘THE DEPAHRTMENT OF JOSTICE. The report of the Attorney-General contains several sigzestions ua the” aumiuistration of Justice to whien 1invite yourattention. The pressuro of bustness in the” Supreme Court nnd w eertain Clrealt Courts of the United States 15 now such thut surious delays to the ercat in- jury ond even oppressfon of suitors veeur, ond @ remedy should souznt for this comlition of affatrs. Whether t will be found in the plan brieliv sketehied in the report of tncreasing the num. ber of Judees of the Clreutt Conrts, and, by means of this addition to the judiinl force, of creating intesmediate Court of Errors and Apoeals, or whether eome other mode can be devised for onviating the dificuities which now exist, I-leave to your mature consideration. THE INDIANS, ‘The present condition of the Indian tribes on the territory of the United States, and our rela- tlons with them, are fully set forth In the re- rts of the Secrctary of'the Interfor and the mmissioner of Indlan Afuirs. ~ After a ries of nost deplorable conflicts, the suceessful termination of which, while reflect- ing honor upon the brave soldicrs who accomplished i, connot Jessen our regretat the accurrence, We nrc now at peave with all the Tudiun tribes on our burders. To preserve that peave by a just and hunest polley will be the opject of wy carnest cudeavors, Whatever may be sald ol thelr character und savage pro- peusitivs, of the ditlicalties of introducing among them the habits of clvilized e, und the obsta- cles they have olfered to the progress of settling certain purts of the coun- try, the Iudlans are certaluly entiuled to our sympathy and to a consclentlous respeet on our part for thelr claims upon vur seuse of justice, Thevy were the uboriginal oe cupants of the land we now possess, Theyhave been driven from place to place, The purchass niouey pald to them bn some cases for what they called thelr vwn haa still teft them poor. In meny fnstances when thoy had settled down upon laud assigned to them by compact and ve- gan to support themselves by their own labor, they were rudely Jostled off and thrust into the wilderness agatn. Maoy if not wmost of our Indlan “wars have bhad thelr origin in broken promises and acts of injustice upon our anl, sud the advance of the Indlane In civ- fization hus been slow because the treatment they recelved did not permit it to bo faster and mofe eeneral. Wo cannot expect thiem to fm- prove and to follow our guldunce unless we KERP PAITIL WITHL THEM in respecting the rights they vossess, and un- 1 uatead of depriviog them of thelr obpor- tunitics, we lenl them w helping hand, 1 cor- dially approve the poticy reganiing the manage- ment of Indlan affulrs vutlined in the reports of the Becretary of the Interior and of tho Commisaioner of Indian Atfairs, The faith- ful perfurmance of our promise fe the first con- dition of a gool understanding with the In- diaus, 1 canvot toourgently recommendto Con- eress tbat prompt aud lberul provision be made fur the conscientious Tulfiliment of sl lfn‘u- mieuts eutered uto by the Government with In- dian tribes, To withlold the means necessary tur the performance of a prombse s always false ccobomy, and Is spt to prove diastrous in its cousequences, An especiul vare is recommended to provide for ldians seitled on their reservations cat- tle und ugricultural fmplewents toald them in whatever cfforts ""fi way make to support themselves, and by the rewstablishment and mufutenance of schools to bring them under the control of efvillzed intluences, Isecnoreason why Lndisns-who can give éatisfuctory proof ot huviug, by thefr own' labor, supported their fumilivs for u vumber of years, and who are willlng to detach themselves from thelr tribal relations, shuuld not be admitted to the bouctits of the Homestesd act aml the wrivileges of cittecustilp, aud I recommend the passage of a law to thut etfect, It will bean act of justics as well us a incasure of eucouragement. Earn- effurts are beteg made to purlly the Indian crvlie su that every dollar appropriated by Congress ahull redound to the benellt of the Indiaus beuctited. These efforts will bave my fira support. Witn an improved service aud every sible encournzeuent held ont to the Indiana to better thelr conditions, and w elevate themselyes o the scale of civilization, wu may bupe 1o do at the same thue s good work for them and for ourselves. THE TIMDER STEALS, 1 fuvite the attention of Cungress to the fn- P""‘“"" uf the statcwcnts and suggestivns by he Becretary of the Interior coucerning the depredatious cowmitied upon the thnber lands of the United States, and the necessity for the preservation of forests. It 18 belicved ™ thut the measures taken fu pursuance of the exlsting law to arrest these depredations will be entirely successtul 1 Congress, by st lp\:ruvrhtwn [ that purpose, rendens their contluued cofurce- et poasibl Toe experienceof other nations teachea usthat & country canuot be stripped of Its forests with fmpunity, and we skall ex oursclves to the gruvest cobsequetices U tue wastetul, fwprovident nisnuer {o which by forests i the Lulted Stales ure deatroyed be cilectually checked, 1 vn!uc'nllg recouimend that the micas- ures sugeestut by the Beerctary of tie Interlor fur the suppression of depredatlons on the ublic thuber lauds of the United States, for Le scllwg of tlmber lands, avd<for the '::-Fent- of the prescrvation of forests bo embodied In Iaw, and that, considering the urgent necesaity of enabling tho people of certaln Btates and Territories to purchase timber from the public i 1noi4 [n a legal manner, which at present they caunot do, sucha law be passcd without un- avoidable delay. i DESERT LANDS, 7 1 would also call the attention of Congrees ta etatenients made by the S::retary of the Inte- tlor cuncerning the dispsition that mixnt be made of the descrt lands not irrigated west of the one hundredth merian. These Inuds are practlcally uesalable under exlisting laws, anil the suggestion Is worthy of cousideration, thal a syst.im of leasehold tenure would make them a source of profit to the United States, while at the same time legalizing the business of cattle. {flnlng, which s at present caxried on upon hem. AGRICULTURAL. ‘The report of the Commissioner of Agricul- ture vontains the gratifying announcement of the extravrlinary auccess which hoa rewarded the agricultural [ndustey of the country for the Putrur. With the falr prices which obtaln or the products of the soll, especially for the surplus which our people have to export, we may confldently turn to thia as the most impor- tant of all ur resources for the revival of the rc“a_rmcd industrics of the country. he report shows our agricultural progress during the year, and contains a statement of the work dotie by this Department for the ad- vancement of agricultural industry, upon whi-h the prosperity of our people so targely depends. Matters of information are included of great intercst to all who seek by the expericnce of uthers to Improve their own methods of cult!- vation. The efforts of the Dapartment to in. crease the production of important articles of umsumfu!ou, will, It {s hoped, Improve he de- mand for labor, and advance the business of the country, and eventually result In saving rome of the tany millions that ure now an nually paid to forefgn natfons for sugar sud other etaple products which hatitual use made necessary in our domestic every<lay ife, THE CENTENNIAL EXTOSITION. The Board on behalf of the United States ex- ecutlve departments atthe International Expost tion of 1576 has concluded its labors. The Ennl report of the Board was transmitted to Cou- gress at the last session, As these papers a underatood to contaln interesting and valuab! fuformatlon, and wlll constitute the only report emanating from the Guvernment on the suo- Ject of the exhibition, I Invite actention to the matter, and recommend that the report be pub- lished for gencral informaticn, DISTRICT OF COLUMBIA. I3 NEEDS. Cougress {8 empowered by the Constitution with the authorlty of exclusive leglslation ovey the District of Columbls, In which the seat of Government of the natlon s located. ‘the In terests of the District baving no direct repro sentatlon In Congress are entitled to eapecia’ conslderation and carc at the bouds of the Gen- eral Government. ‘The Capital of the United States belongs to the natfon, and it is natural that the Ameriean veonle should take pride in the seat of their Natiunal Guvernment, and de- sire it to be AN ORNAMENT TO THR COUNTRY. Much has been done to render it healthlul, con- veulent, and atiractive, but muci remains to be tlone which' its permanent inhabitants are not able and ought uot to be expected tudo, To impose wpon them a large proportion of the vost reaulred for public linprovetnents which are ina great measure plaoued and executed for the convenience of the Uovernment, and of the many thousands of vlsitors from ail parte of ‘the country who temporarily reslde in the Capital of the nation, Is an evl- dent iujustice. Speclal attention s asked by the Cummlssioners of the Dbstrict In thelr repurt, whichi Is herewith transmitted, to the importance of a permancnt adjustment by Congress of the financlul relations between the United States and the District, Involving the HEGULAR ANNUAL CONIRIBUKION by the United States of its just uraportlon of the expenses of the District Government, and of the outlay for all needed publie improvements, and such measure of relief from the burden of taxa. tiun now resting on the people of the District as 1 the wisdom uf Congress may be deeted just. The report of the Commissioners ehow thay the affairs of the District are in a condition s satisfactory a8 could be expected in view of the beavy debt iestiue upon it, and Its very hmited meaus for the necessary expenses, The debt uf the district (s os follows: Funded debt, 33,87,001.9); 8.05 bonds guaranteed by the Unlted s'“e.h #13,743,2505 " total bonded debt, §22,122,04] to which should be alded certaln vutstanding claims as explutued in the report of the Commissioners, — £1.182,204.53: l{;x:klm: the total debt of the dustrict, 123,310, ‘The Commlesioners also ask attention to the mpuortatice of the inproveraeat of THE FOTOMAC RIVER and the reclamution of the marshes bordering the City of Washington, and thelr views upon thissubject are coucurred in by the members of the "Board of lHealth, whose rovort Is aiso herewith travemitted. Both - the cowm- merddal and sanitary interests of the District will be greatly promoted, I doubt no! by this fiprovement.” Your attention Is fuvite: to the sugizestion of the Commisstoners and of the Board of Health for the organization of & Board of Charitivs to have superviston and cone trol of the disbursement of all moneys tor charitable purposes from the District Treasury, desire, alsu, to nsk your especlal attention io the need of adding to the eliclency of TIE PLULIC CHOOLS of the District by supplemental ald from the Natlonal Treasury, This ls cspectally just, since 80 large m number of thowe atiending the schools are children of cinployes of the Gov- erument. [ earncstly commend to your care the lutercsts of the people of the District who areso intimately assoclated with the Govern- ment establishment, and to whose coterprise the cood onder and attractiveness of the Capital are lurgely dues and 1 ask your attentlon to the request of the Comintssloners for legisiation lo behull of the interests jutrusted to tnelr care. ‘The appropriations asked fur tke care of tho reservations ~ belonging to the (lovernment within the city by the Commissoners of Publle Bulldiogs and Grounds are ulso commended to your favorable consideration, WABLINGTON MONUMRNT. ‘The report of thedoint Comnmission created by the act approved Aug, 2, 1876, AL DIOV.ILZ for the colnpletion of the Washingion monu. mient, {s also berowith transmitted with accom. panying documents. The Board of Fugineer Otlleers, detatled to examiue the monument, in compllance with the second sectlon of the act, have relmled thut the foundatiou is insutliclent, No authority exists for making tha oxpenditure neeggsary to secure [ta stability. 1 there. (ur& recomiend that the ~Commlssion be Sauthorized to expeud such portior of tho sum appropriated by the sct as may be necessary for the purvose. The present untin. i1shed conditiou ol the monument, begun sa long ago. Is & reproach to the natlou. 1t canoot be doubted that the patriotic sense of the coun- trv will mainly respond to such prompt pro- vislun us may be madv for its completion at an early day, and 1 urge upon Cungress the pro- !:rlev. and nevessity of immedute legislation or this purpose, . EDUCATIONAL. CONGRESSIONAL AID TO STATES. ‘The wisdom of lcgislation upon the part of Congress tuald of the States for education of the whule people ju thoss branches of study which are taught fn the common schools of the counsry is no longer a question. ‘The tutelligent Judgment of the coutry woes still further re- gavding it, as alio both constitutional and ex- pedient for the General Goverument to cxtend to techulval and higher education such sid as is deemed essential to the general welfare and to our due promincnce among the enlightened and cultured pations of the world. Ths ultimate scttlement of all questions of future, whether of sdministrstion or finance, or of true natlonality of seutiment, depends upon the virtue and litelligence of thepeople. Itis vaiu to hope for the success of & fres Govern- ment without the ineans of Jusuring the intel. ligenve of those who are the source of power, No lcas than vne-seventh of the entire votlug population of vur country are VET UNABLE TO KEAD AND WRITN. It is encouraming to observe in connection with the growth of fruternal feeting in thuss Btates u which sluvery foriuerly existed evidences of fucreasing futerest in unlversal educatlon, and 1 shutl glad tu give my approval to auy appropriate tneasures which may be en- acied by Congress fur the purposs of supple- menting with national ald the local eystems of education fn these Stutes, and (o il the States; und buviog sircady Invited your stteation to tho needs of the District of Columbis with re- spect 10 its public schuol systew, 1 here add that I belfeve it desiruble uot so much with ref- crenve tothe loual wants of the Ulstrict, but the great and lasting bonefit of 1LY ENTILE COUNTRY, sud that this system should be cruwned with & unlversity fu all respects {n keeplug with the Natloual Oypital, aud thereby reulizo the cher- Ished hopes Wedhlugton ou this subject. §ulso earnebly comamend the request of the withsouian Iostitute that an squate appropriation be wade fur-publish- went and conduc of 4 vatlunsl wuseun under thelr supervislon. Thu request of providiug tor the presesvation aud growtl of the librury of Cougzress i3 alsv wue of vatloual Tuportauce as the depusdtury ot i