Evening Star Newspaper, December 3, 1894, Page 9

THE EVENING STAR, MONDAY, DECEMBER 3, 1894—SIXTEEN PAGES, THE MESSAGE (Continued from First Page. Bantos, naturalized citizen of the United Btates. Qur relations with the republic of France continue to be such as should exist be- tween nations so long bound together by friendly sympathy and similarity in their form of government. The recent cruel assassination of the president of this sister republic called forth such universal expressions of sor- row and cordolence from our people and government as to leave no doubt of the depth and sincerity of our attachment. The resolutions passed by the Senate and House of Representatives on the occasion have been communicated to the widow of President Carnot. American Beef and German Sugar. Acting upon the reported discovery of ‘Texas fever in cargoes of American cat- tle, the German prohibition against impor- tations of live stock and fresh meats from this country has been revived. It is hoped that Germany will soon become convinced that the inhibition ts as needless as It ts harmful to mutual interests. The German government has protested gainst the provision of the customs turiff @ct which imposes a discriminating duty of one-tenth of one cent a pound on sugars @oming from countries paying an export bounty thereon, claiming that the exaction of such duty is in contravention of articles 6 and 9 of the treaty of 1828 with Prussia. In the interests of the commerce of both countries and to avoid even the accusation of treaty violation, I recommend the repeal of so much of the statute as imposes that duty, and I invite attention to the accom- panying report of the Secretary of State, containing a discussion of the questions raised by the German protests. The Bering Sea Seal Question. arly in the present year an agreement was reached with Great Britain concerning instructions to be given to the naval com- manders of the two governments in Bering sea and the contiguous North Paciiic ocean for their guidance in the execution of the award of the Paris tribunal of arbitration and che enforcement of the regulations therein prescribed for the protection of seal life in the waters mentioned. An under- standing has also been reached for the payment by the United States of $425,000 in full satisfaction of all claims which may be made ly Great Britain for damages grow- ing out of the controversy as to fur seals in Bering sea or the seizure of British vessels engaged in taking seal in those waters. The award and finding of the Paris tribunal to a great extent determined the facts and principles upon which those claims should be adjusted, and they have been subjected by both governments to a thorough examination upon the principles as well as the facts which they involve. 1 am convinced that a settlement upon the terms mentioned would be an equitable and advantageous one, and I recommend that provision be made for the prompt payment of the stated sum. ‘Thus far only France and Portugal nave signified their willingness to adhere to the regulations established under the award of the Paris tribunal of arbitration. Preliminary surveys of the Alaskan boun- dary and a preparatory examination of the question of protection of food fish in the contiguous waters of the United States and the Dominion of Canada are in progress. The boundary of British Guiana still re- mains in dispute between Great Britain and Venezuela. Believing that its early settlement, on some just basis alike hon- erable to both parties, is in the line of our @stablished policy to remove from this bemisphere all causes of difference with powers beyond the sea, I shall renew the efforts heretofore made to bring about a restoration of diplomatic relations between the disputants and to induce a reference to arbitration, a resort which Great Britain so conspicuously favors in principle and respects in practice, and which 1s earn- estly sought by her weaker adversary. Just a Word as to Hawaii. Since communicating the voluminous correspondence in regard to Hawaii, and the action taken by the Senate and House of Representatives on certain questions submitted to the judgment and wider dis- cretion of Congress, the organization of a government in place of the provisional ar- rangement which followed the deposition of the queen has been announced, with evidence of its effective operation. The recognition usual in such cases has been accorded the new government. Under our present treaties of extradi- tion with Italy, miscarriages of justice have occurred, owing to the refusal of that government to surrender its own subjects. ‘Thus far our efforts to negotiate an amended convention obviating this diffi- culty have been unavailing. Speaks Pleasantly of Japan. Apart from the war in which the island empire is engaged, Japan attracts increas- ing attention in this country by her evi- dent desire to cultivate more liberal inter- course with ds, and to seek our kindly aid in furtherance of her laudable desire for complete autonomy tn her domestic affairs and full equality in the family of nations. ‘The Japanese empire of today ts no longer the Japan of the past, and our relations with this progressive nation should not be less broad and liberal than those with other powers. Good will, fostered by many interests in common, has marked our rela- etions with our nearest southern neighbor. Pence on the Meaican Border. #@eace being restored along her northern frontier, Mexico has asked the punishment of the late disturbers of her tranquillity. ‘There ought to be a new treaty of com- merce and navigation with that country to take the place of the one which termin- ated thirteen years ago. The friendliness of the intercourse between the two coun- tries is attested by the fact that during this long period the commerce of each has steadily increased under the role of mutual consideration, being neither stimulated by conventional arrangements nor retarded by Jealous rivalries or selfish distrust. An indemnity tendered by Mexico as a gracious act for the murder, tn 1887, of Leon Baldwin, an American citizen, by a band of marauders in Durango, has been accepted and is being paid in installments. The problem of the storage and use of the waters of the Rio Grande for irrigation should be solved by appropriate concur- rent action of the two interested countries. Rising in the Colorado heights the stream flows intermittently, yielding little water during the dry months to the irrigating channels already constructed along tts course. This scarcity is often severely felt in the regions where the river forms a com- | mon boundary. Moreover, the frequent changes tn Its course through level sands often raise embarrassing questions of ter- ritorial jurisdiction. eticlds dent. Prominent among the questions of the the Bluetlelds incident in what ts known as the Mosquito Indian strip, bor- dering on the Atlantic ocean and within the jurisdiction of Nicaragua. By the treaty of 1860 between Great Britain and Nicaragua the former government express- ly recognized the sovereignty of the latter over the strip and a limited form of self- government was guaranteed to the Mos- quito Indians, to be exercised according to their customs, for themselves and other dwellers within its limits. The so-called native government, which grew to be largely made up of aliens, for many years disputed the sovereignty of Nicaragua over the strip and’ claimed the right to main- tain therein a practically independent municipal government. Early in the past year eforts of Nicaragua to maintain sovereignty over the Mosquito territory led to serious disturbances, culminating in the suppression of the native government and the attempted substitution of an im- practicable, composite administration, in which Nicaragua and alien residents were to participate. Failure was followed by an insurrection, which for a time subverted Nicaraguan rule, expelling her officers and restoring the old organization. This, in turn, gave place to the existing local gov- ernment established and upheld by Nica- Tagua. Although the alien interests arrayed against Nicaragua in these transactions have been Jargely American, and the com- merce of that region for some time has been and still is chiefly controlled by our citizens, we cannot, for that reason, chal- lenge the rightful sovereignty of Nicaragua over this important part of her domain. For some months one, and during part of the time two, of our naval ships have been stationed at Bluetields for the protection of all legitimate interests of our citizens. In September last the government at Ma- nagua expelled from its territory twelve or more foreigners, including two Amert- cans, for alleged participation in the sedi- tious or revolutionary movements against the republic at Bluefields already men- tioned, but through the earnest remon- strance of this government the two Amert- cans have been permitted to return to the peaceful management of their business. Our naval commanders at the scene of these disturbances, by their constant ex- hibition of firmness and good judgment, contributed largely to the prevention of more serious consequences, and to the restoration of quiet and order. I regret that in the midst of these occurrences there happened a most grave and trritating fail- ure of Nicaraguan justice. An American citizen named Wilson, residing at Rama, in the Mosquito territory, was murdered by one Arguello, the acting governor of the town. After some delay the murderer was arrested, but so insecurely confined or guarded that he escaped, and, notwith- standing our repeated demands, -it is claimed his recapture has been impossible by reason of his flight beyond Nicaraguan Jurisdiction. The Nicaraguan authorities having given notice of forfeiture of their concession to the canal company, on grounds purely technical, and not embraced in the con- tract, have receded from «that position, Peru, I regret to say, shows symptoms of domestic disturbance, due probably to the slowness of her recuperation from the distresses of the war of 1881. Weakened in resources, her difiiculties in facing in- ternational obligations invite our kindly sympathy and justify our forbearance in pressing long pending claims. I have felt constrained to testify this sympathy in connection ‘with certain demands urgently preferred by other powers. Symprthy With Russia. The recent death of the Czar of Rus- sla called forth appropriate expressions of sorrow and sympathy on the part of our government with his bereaved family and the Russian peopie. As a further demonstration of respect and friendship our minister at St. Peters- burg was directed to represent our gov- ernment at the funeral ceremonies. The sealing interests of Russia in Bering sea are second only to our own. A modus vi- vendi has therefore been concluded with the imperial government restrictive of poaching on the Russian rookeries and of sealing tp waters which were not compre- hended in the protected area defined in the Paris award. Occasion has been found to urge upon the Russian gov- ernment equality of treatment for our great life insurance companies, whose op- erations have been extended throughout Europe. Admitting, as we do, forelgn corpora- tions to transact business in the United States, we naturally expect no less tol- erance for our own in the ample fields of competition abroad. But few cases of interference with natur- alized citizens returning to Russia have been reported during the current year. One Krzeminsk! was arrested last summer in a Polish province on a reported charge of unpermitted renunciation of Russian allegiance, but it transpired that the pro- ceedings originated in alleged malfeas- ance, committed by Krzeminski while an imperial official, a number of years ago. Efforts for his release, which yromised to be successful, were in progress when his death was reported. Salvador and Spain, The government of Salvador having been overthrown by an abrupt popular out- break, certain of its military and civil off- cers, while hotly pursued by infuriated in- surgents, sought refuge on board the Unit- ed States warship Bennington, then lying in a Salvadorean port. Although the prac- tice of asylum is not favored by this gov- ernment, yet in view of the imminent peril which threatened the fugitives, and solely from considerations of humanity,they were afforded shelter by our naval commander, and when afterward demanded under our treaty of extradition with Salvador for trial on charges of murder, arson and rob- bery, I directed that such of them as had not voluntarily left the ship be conveyed to one of our nearest ports, where a hearing could be had before a judicial officer in compliance with the terms of the treaty. On their arrival at San Francisco such a proceeding was promptly instituted before the United States district judge, who held that the acts constituting the alleged of- fenses were political,and discharged all the accused except one Cienfuegos, who was held for an attempt to murder. Thereupon I was constrained to divect his release for the reason that an attempt to murder was not one of the crimes charged against him, and upon which his surrender to the Sal- vadorean authorities had been demanded. Unreesonable and unjust fines tmposed by Spain on the vessels and commerce of the United States have demanded from time to time during the last twenty years earnest remonstrance on the part of our government. In the immediate past ex- orbitant penalties have been imposed upon our vessels and goods by customs authori ties of Cuba and Porto Rico for clerical errors of the most trivial character in tha manifesta or bills of iading. In some cases fines amounting to thousands of dollars have been levied upon cargoes or the car- rying vessels when the goods in question were entitled to free entry. Fines have been exacted even when the error had been detected and the Spanish authorities notified before the arrival of the goods in port, This conduct is in strange contrast with the ccusiderate and liberal treatment ex- tended to Spanish vessels and cargoes in our ports in like cases. No satisfactory settlement of these vexatious questions has yet been reached. The Mora case, referred to in my last an- nual message, remains unsettled. From the diplomatic correspondence on this ject, which has been iald before the Senate, it will ke seen that this government has offered to conclude a conveation with Spain for disposal by arbitration of outstand- ing claims between the two coun- tries, except the Mora claim, which, having beén long ago adjusted, now only awaits payment as stipulated, and, of course, it could not be included in the pro- i posed convention. It was hoped this offer would remove parliamentary obstacles en- countered by the Spanish government in providing payment of the Mora indemnity. I regret to say that no definite reply to this offer has yet been made, and all efforts to secure payment of this settled claim have been unavailing. Tarkey, the Armentuns and Vene- suela. In my last annual message I adverted to the claim on the part of Turkey of the right to expel, as persons undesirable and dangerous, Armenians naturalized in the United States and returning to Turkish jurisdiction. Numerous questions in this relation have arisen. ‘While this government acquiesces in the asserted right of expulsion, {t will not con- sent that Armenians may be imprisoned or otherwise punished for no other reason than having acquired, without imperial consent, American citizenship. Three of the assatlants of Miss Melton, an American teacher in Mosul, have been convicted by the Ottoman courts, and I am advised that an appeai against the acquittal of the re- maining five has been taken by the Turk- ish prosecuting officer. A convention has been concluded with Venezuela for the ar- bitration of a long disputed claim growing out of the seizure of certain vessels, the property of citizens of the United States. Although signed, the treaty of extradition with Venezuela is not yet in force, owing to the insistence of that government that, when surrendered, its citizens shall in no case be lable to capital punishment. The rules for the prevention of collisions atsea which were framed by the maritime. conference held in this city in 1889, having been concurrently incorporated in the stat- utes of the United States and Great Britain, have been announced to take effect March 1, 1895, and invitations have been extended all maritime nations to adhere to them. Favorable responses have thus far been re- ceived from Austria, France, Portugal, Spain and Sweden. Would Withdraw From Samoa. In my last annual message I referred briefly to the unsatisfactory state of af- faire in Samoa under the operation of the Berlin treaty, as signally illustrating the impolicy of entangling alliances with for- eign powers; and on May 9, 1804, in re- sponse to @ resolution of the Senate, I sent a special message and documents to’| that body on the same subject, which em- phasized my previously expressed opinions. Later occurrences, the correspondence in regard to which will be laid before Con- gress, further demonstrates that the yov- ernment which was devised by the three powers and forced upon the Samoans against their inveterate hostility can be maintained only by the continued presence of foreign military force, and at no small sacrifice of life and treasure. The suppres- sion of the Mataafa insurrection by the powers, and the subsequent banishmen: of the leader and eleven other chiefs, as re- cited in my last message, did not bring lasting peace to the isiands. Formidable uprisings continued, and finally a rebellion broke out in the capital island, Upolu, headed by Maara; the western district by the younger Tamasese and Matua; the eastern district by other leaders. The in- surgents ravaged the country and fought the government troops up to the very doors of Apia. The king again appealed to the powers for help, and the combined British and German naval forces reduced the Atauans to apparent subjection, not, how- ever, without considerable loss to the na- tives. A few days later Tamasese and his adherents, fearing the ships and the mar- ines, professed submission, Reports received from our agents at Apia do not justify the belief that the peace thus brought about will be of long dura- tion, It is their conviction that the natives are at heart hostile to the present govern- ment; that such of them as profess loyalty to it do so from fear of the powers, and that It would speedily go to pieces if the warships were withdrawn. In reporting to his government on the unsatisfactory situ- ation since the suppression of the late re- volt by foreign armed forces, the German consul at Apia stated: . A “That peace will be lasting Is hardly to be presumed. The lesson given by firing on Atua was not sufficiently sharp and in- cisive to leave a lasting impression on the forgetful Samoan temperament. In fact, conditions are existing which show that peace will not last and is not seriously in- tended. Malletoa, the king, and his chiefs are convinced that the departure of the war ships will be a signal for a renewal of war. The circumstance that the repre- sentatives of the villages of all the dis- tricts which were opposed to the govern- ment have already withdrawn to Atua to hold meetings, and that both Atua and Aana have forbidden inhabitants of those districts which fought on the side of the government to return to their villages, and have already partly burned down the lat- ter, indicates a real conciliation of the parties is still far off.” And in a note of the 18th ultimo, tnclos- ing @ copy of that report for the informa- tion of this government, the German am- bassador said: “The contents of the report awakened the Imperial government's ap- prehension that under existing circum- ‘ances the peace concluded with the rebels will afford no assurance of the lasting re- storation of tranquility in the islands.” The present government has utterly failed to correct, if, indeed, it has not ag- gravated, the very evils it was intended to prevent. It has not stimulated our com- merce with the islands. Our participation in its establishment against the wishes of the natives was in plain defiance of the conservative teachings and warnings of the wise and patriotic men who laid the foundations of our free Institutions, and I {nvite an expression of the judgment of Cengress on the propriety of steps being taken by this government looking to the withdrawal from its engagements with the other powers on some reasonable terms not prejudicial to any of our existing rights. Domestic Finances. The Secretary of the Treasury reports that the receipts of the government from all sources of revenue during the fiscal year ending June +30, 184, amounted to $372,802,498.29 and its expenditures to $442,605,758.87, leaving a deficit of $69,803,- 200.58. There was a decrease of $15,952,- 674.66 in the ordinary expenses of the government, as compared with the fiscal year 1893. There was collected from customs $131- 818,530.62, and from internal revenue $147,- 168,449.70. The balance of the income for the year, amounting to $93,815,517.97, was derived from the sales of lands and other sources, - The value of our total dutiable imports amounted to $275,199,086, being $146,657,625 less than during tfe preceding year, and the importations free cf duty amounted to $379,795,536, being $64,743,675 less than during the preceding year. The receipts from customs were $73,536,486.11 less and from internal revenue $13,836,539.97 less than in 1893. The total tax collected from distilled epirits was $85,259,250.25; on man- ufactured ‘tobacco, $28,617,808.62, and on fermented liquors, $31,414,788.04. Our ex- ports of merchandize, domestic and for- eign, amounted during the year to $892,- 140,572, being an increase over the pre- ceding year of $44,415,378. The total amount of gold exported dur- ing the fiscal year was $76,898,061, as against $108,680,444 during the fiscal year 1893. The amount imported was $72,449,119, as against $21,174,381 during the previous year. The imports of silver were $13,286,552, and the exports were $50,451,265. The total bounty paid upon the produc- tion of sugar in the United States for the fiscal year was $12,100,208.89, being an in- crease of $2,725,078.01 over the payments made during the preceding year. The amount of bounty paid from July 1, 1894, to August 28, 1804, the time when further payments ceased by operation of law, was $066,195.84. The total expense {mcurred in the payment of the bounty upon sugar during the fiscal year was $130,140.85. 5 It is estimated that upon the basis of the present revenue laws the receipts of the government during the current fiscal year ending June 30, 1805, will be $424,- 427,748.44, and its expenditures $444,427,- 748.44, resulting in a deficit of $20,000,000. On the first day of November, 1894, the total stock of money of all kinds in the country was $2,240,773,888, as against $2,- 204,651,000 on the ist day of November, 1893, and the money of all kinds in circula- tion, or not included in the treasury hold- ings, was $1,672,008,422, or $24.27 per capita upon an estimated population of 68,887,000. At the same date there was held in the treasury gold bullion amounting to $44,- 615,177.55, and silver bullion which was purchased at a cost of $127,779,988. The purchase of silver bullion, under the act of July 14, 1890, on the Ist day of November, 19U3, and up to that time there hiad been purch: during the fiscal year 11,917,653.78 fine ow at a cost of $8,715,- 521.32, an average cost of $0.7313 per fine ounce. The total afnount of silver pur- chased from the time that law took effect until the repeal of its purchasing clause, en the date last mentioned, was 168,674,- 682.53 fine ounces,. which cost $155,931,- 002.25,the average price per fine ounce being 90.9244. The total amount of standard sil- ver dollars coined at the mints of the United States since the passage of the act of February 28, 1878, is $421,776,408, of which $378,166,793 were coined under the provisions of that act, $38,531,143 under the provisions of the act of July 14, 1890, and $5,078,472 under the act providing for the coinage of trade dollar bullion. The total coinage of all metals at our mints during the last fiscal year consisted of 63,- 485,220 pieces, valued at $106,216,730.06, of which there were $99,474,912.50 in gold coined, $758 in standard silver dollars, $6,024,140.30 In subsidiary silver coin, and $716,910.26 in minor coin, During the calendar year 1893 the pro- duction of .precious metals in the United States was estimated at 1,739,323 fine ounces of gold, of the commercial and coin- age value of $35,955,000, and 60,000,000 fine ounces of silver, of the bullion or market value of $46,800,000, and of the cotnage value of $77,576,000. It is estimated that on the Ist day of July, 1804, the stock of metallic money in the United States, con- sisting of coin and bullion, amounted to $1,251,630,058, of which $627,023,201 was gold and $624,347,757 was. silver. Banks and Circulation. Fifty national banks were organized dur- ing the year ending October 31, 1894, with @ capital of $5,285,000, and seventy-nine, with a capital of $10,475,000, went into vol- untary liquidation. Twenty-one banks, with @ capital of $2,770,000, were placed in the hands of recetvers. The total number of national banks in existence on the Bist day of October last was 3,756, being forty less than on the 3ist day of October, 1893. The capital stock paid in was 3672,671,365, being $0,678,491 less than at the same time in the previous year, and the surplus fund and undivided profits, less expenses and taxes paid, amounted to $%4,121,082.10, which was $16,089,780 less than on October 31, 1893, The circulation was decreased $1,741,563. The obligations of the banks to each other were increased $17,268,334, and the indl- vidual deposits were $277,294,489 less than at the corresponding date in the previous year. Loans and discounts were $161,206,- 923 more than at the same time the pre- vious year, and checks and other cash items were $00,349,063 more. The total re- sources of the banks at the date men- tioned amounted to $3,473,022,055, as against $8,109, 568,284.36 in 1893, Recommends SUght Ent: the Army. ‘gement of From the report of the Secretary of War it appears that the strength of the army on September 30, 1894, was 2,135 officers and 25,765 enlisted men. Althovgh this {s apparently ® very slight decrease compared with the previous year, the actual effective ‘force has been in- creased to the equivalent of nearly two regiments through the reorganization of the system of récrtiiting and the conse- quent release to;regimental duty of the large force of men Nitherto serving at the recruiting depots. The abolition of these depots, it is predicted, will furthermore effect an annual reduction approximating $250,000 in the direct expenditures, besides promoting generally the health, morale and discipline of the troops. The execu- tion of the policy of concentrating the army at Important centers of population and transportation, foreshadowed in the last annual report of the Secretary, has resulted in the abandonment of fifteen of the smaller posts, which was effected un- der a plan which assembles organizations of the same regiments hitherto widely separated. ‘This renders our small forces more readily effective for any service which they may be called upon to perform, increases the ex- tent of the territory under protection with: out diminishing the security heretofore a: forded to any locality, improves the disctp- line, training and esprit de corps of the army, besides considerably decreasing the cost of {ts maintenance. j Though the forces of the Department of the East have been somewhat increased, more than three-fourths of the army Is still stationed west of the Mississippi. This carefully matured policy, which se- cures the best and greatest service in the interest of the general welfare from the small force comprising our regular army, should not be thoughtlessly embarrassed by the creation of new and unnecessary posts through acts of Congress to gratify the ambitions or Interests of localities. While the maximum legal strength of the army 1s 25,000 men, the effective strength, through various causes, is but little over 20,000 men. The purpose of Congress does not, therefore, seem to be fully attained by the existing condition. While no con- siderable increase in the army is, in my Judgment, demanded by recent events, the policy of seacoast fortification, in the prosecution of which we have been steadily engaged for some years, has so far developed as to suggest tMat the ef fective strength of the army be now made at least equal to the legal strength. Meas- ures taken by the department during the year, as indicated, have already cunsidera- bly augmented the effective force, and the Secretary of War presents a plan, which I recommend to the consideration of Con- gress, to attain tne desired end. Econo- mies effected in the department in other lines of its work will offset to a great ex- tent the expenditure involved in the propo- sition submitted. Axtiong other things this contemplates the adoption of the three battalion formation of regiments, which for several years hgs!becn indorsed by the Secretaries of War, and the generals com- manding the army.yCompact in Itself, it provides a skeleton organization, ready to be filled out in the event of war, which is peculiarly adapted to our strength and re- quirements, and thé fact that every other nation, with a single exception, has adopt- ed this formation to meet the conditions of modern warfare shguld alone secure for the recommendation‘an early consideration. Compliments for the Federal Troops. It is hardly necessary to recall the fact that in obedience to the comraands of the Constitution and the laws, and for the purpose of protecting the property of the United States, aiding the process of fed- eral courts and removing lawless obstruc- tions to the performance hy the govern- ment of Its legitimate functions, it became necessary in various localitles during the year to employ a considerable portion of the regular troops. The duty was discharg- ed promptly, courageously and with mark- ed discretion by the officers and nen, and the most gratifying proof was thus af- forded that the army deserves that com- plete confidence in its efficiency and dis- cipline which the country has at all times manifested. The year has been free from disturbances by Indians, and the chances of further Gep- 9 a redations on their part are constantly be- coming more remote and improbable. ‘The total expenditures for the War De- partment for the year ended June 50, 1804, amounted to $56,030,000.34. Of this sum $2,000,614.99 was for salaries and contingent expenses; $238,065,156.16 for the support of the military establishmen*; $5,001,682.28 for miscellaneous objects, and $25,371,850.96 for public works. This lattor sum includes $19,494,087.49 for river and harbor improve- ments, and $3,047,863.56 for fortiflcattons and other works of defense. The appro- priations for the current year agsregate $52,429,112.78, and the sstimates submitted by the Secretary of War for the next fiscal year call fcr appropriations amounting to $52,318,629.55. Heavy Ordnance and Militia. ‘The skill and industry of our ordnance officers and inventors have, it is belleved, overcome the mechanical obstacles which have heretofore delayed the armament of our coasts, and thts great national under- taking, upon which we have entered, may now proceed as rapidly as Congress shall determine. With a supply of finished guns of large caliber alrcady on hand, to which additions should now rapidly follow, the wisdom of providing carriages and em- placements for their mount cannot be too strongly urged. ‘The total enrollment of the militia of the several states is 117,533 officers and en- listed men, an increase of 3,343 over the number reported at the close of the pre- vious year. The reports of militia inspec- tions by regular army officers show a mark- ed increase in interest and fficiency among the state organizations, and I strongly recommend a continuance of the policy of affording every practical en- couragement possible to this important auxili@y of our military establishment. ‘The condition of the Apache Indians held as prisoners by the government for eight years at a cost of half 4 million dollars has been changed during the year from captivity to one which gives them an op- portunity to demonstrate their capacity for self support, and at least partial civiiiza- tion. Legislation enacted at the late ses- sion of Congress gave the War Department authority to transfer the survivors, num- bering 346, from Mount Vernon Barracks, in Alabama, to any suitable reservation. ‘The department selected as thelr future home the military lands near Fort Sill, Indian Territory, where, under military surveillance, the former prisoners have been established in agriculture under con- ditions favorable to their advancement. In recoghition of the long and distin- guished military services ind faithful dis- charge of delicate and responsible civil duties by Maj. Gen. John M. Schofield, now the general commanding the army, it is suggested to Congress that the temporary revival of the grade of Heutenant general in his behalf would be a just and gracious act, and would permit his retirement, now near at hand, with rank befitting his merits. In the Attorney General's Realm. The report of the Attorney General notes the gratifying progress made by the Su- preme Court in overcoming the arrears of its business and in reaching a condition in which it will be able to dispose of cases as they arise, without any unreasonable delay. This result is, of course, very largely due to the successful working of the plan inaugurating circuit courts of appeals. In respect to these tribunals the suggestion is made in quarters entitled to the highest consideration that an addition- al circuit. judge for each circuit would greatly strengthen these courts and the confidence refosed in their adjudications; and that such an addition would not create @ greater force ot judges than the increas- ing business of such courts requires. 1 commend the suggestion to the careful consideration of the Congress. Other im- portant topics are adverted to in the re- port, accompanied by recommendations, many of which have been treated at large in previous messages, and at this time therefore need only be named. I refer to the abolition of the fee system as a meas- ure of compensation to federal officers; the enlargement of the powers of United States commissioners, at least in the territories; the allowance of writs of error in criminal cases on behalf of the United States, and the establishment of degrees in the crime of murder. A topic dealt with by the At- torney General of much importance is the condition of the administration of justice in the Indian territory. The permanent solution of what is called the Indian prob- lem {is probably not to be expected at once, but meanwhile such ameliorations of pres- ent conditions as the existing system will admit of ought not to be neglected. I am satisfied there should be a federal court established for the territory with sufficient judges, and that this court should sit within the territory and have the same jurisdiction as to territorial affairs as is now vested in the federal courts sitting in Arkansas and Texas. Another, subject of pressing moment re- ferred to by the Attorney General is the reorganization of the Union Pacific Rail- way Company on a basis equitable as re- gards all private interests and as favor- able to the government as existing condi- tions will permit. The operation of a rail- road ty a court through a receiver is an anomalous state of things which should be terminated, on all grounds, public and private, at the earliest possible moment. Besides, not to enact the needed enabling legislation at the present session post- pones the whole matter until the assem- bling of a new Congress, and inevitably increases ‘all the complications of the sit- uation, and could not but be regarded as a signa’ failure to solve a problem which has practically been before the present Congrers ever since its organization. Fight years ago, in my annual message, I urged upon the Congress as strongly as I could the location and construction of two prisons for the confinement of United States prisoners. A similar recommenda- tion bas been made from time to time since, and a few years ago a law was passed providing for the selection of sites for three such institutions. No appropria- tion has, however, been made to carry the act into effect, and the old an® discredit- able condition still exists. It is not my purpose at this time to re- peat the considerations which make an impregnable case in favor of the owner- ship and management by the government of the penal institutions in which federal prisoners are confined. I simply desire to again urge former recommendations on the subject, and to particularly call the attention of the Congress to that part of the report of the Secretary of War in which he states that the military prison at Fort Leavenworth, Kansas, can be turned over to the government as a prison for federal comvicts, without the least diffi- culty and with an actual saving of money from every point of view. Pending & more complete reform, I hope that by the adoptioneof the suggestion of the Secretary of War this easy step may be taken In the direction of the proper care of its convicts by the government of the United States. As to the Post Office Depar:ment. The report of the Postmaster General presents a comprehensive statement of the operetions of the Post Oflice Department for the last fiscal year. The receipts of the department during the year amounted to $75,050,479.04, and the expenditures to $84,324,414.15, ‘The transactions of the postal servize in- dicats with barometric certainty the fluctu- ations in the business of the country. In- asmuch, therefore, as business complica- tions continued to exist throughout the last year to an unforeseen extent, It is not surprising that the deficiency of revenue to meet the expenditures of the Post Office Department, which wes estimated in ad- vance at about $8,000,000, should be ex- ceeded by nearly one and a quarter mil- lion dollars. The ascertained revenues of the last year, which were the basis of cal- culation for the current year, being less than estimated, the deficiency for the cur- rent year will be correspondingly greater, though the Postmaster General rtates that the latest indications are so favorable that he confidently predicts an increase of at least 8 per cent in the revenues of the cur- rent year over those of last year. The expenditures increase steadily and necessarliy with the growth and needs of the country, so that the deficiency is great- er or less in any year depending upon the volume of receipts. ‘The Postmaster General states that this deficiency is unnecessary, and might be obviated at once if the law regulating rates upon mat) matter of the second class was modified. The rate recelved for the trans- mission of this second-class matter Is one cent per pound, while the cost of suc! transmission to the government Is eight times that amount. In the general terms of the law this rate covers newspapers and periodicals. ‘The extensions of the mean- ing of these terms from time to time have admitted to the privileges intended for legitimate newspapers and periodicals a surprising range of publications, and cre- ated abuses, the cost of which amount in thd aggregate to the total deficiency of the Post Uffice Department. Pretended news- papers are started by business houses for the mere purpose of advertising. goods, complying with the law in form only, and discontinuing the publications as soon as the period of advertising ts over. “Sample copies” of pretended newspapers are issued im great numbers for @ like purpose only. The result is a great loss of revenue to the government, besides its humiliating use as an agency to aid in carrying out the scheme of a business house to advertise its goods by means of a trick upon both its rival houses and the regular and legiti- mate newspapers. Paper-covered Hterature, consisting mainly of trashy novels, to the extent of many thousands of tons, is sent through the mails at one cent per pound, while the publishers of standard works are required to pay eight times that amount in sending their publications. Another abuse consists in the free carriage through the matis of hundreds of tons of seed and grafh uselessly distributed through the Department of Agriculture. The Post- mester General predicts that if the law be 80 amended as to eradicate these abuses not only will the Post Office Department show no deficiency, but he believes that in the near future all legitimate newspapers and periodical magazines might be properly transmitted through the mails to their subscribers free of cost. I invite your prompt consideration of this subject, and fully indorse the views of the Postmaster General. ‘The total number of post offices in the United States on the 30th day of June, 1804, was 0,805, an increase of 1,403 over the preceding year. Of these 3,428 were presi- dential, an increase in that class of 68 over the preceding year. Lack of Funds tor-Free Delivery. Six hundred and ten cities and towns are provided with free delivery. Ninety-three other cities and towns entitled to this serv- ice under the law have not been accorded it on account of insufficient funds. The ¢x- pense of free delivery for the current fiscal year wili be more than $12,300,000, and un- der existing legislation this item of expendi- ture is subject to constant increase. The estimated cost of rural free delivery gen- erally Js 80 very large that it ought not to be considered in the present condition of affairs. During the year 830 additional domestic money order offices were estab- lished. The total number of these offices at the close of the year was 19,264. There were 14,304,041 money orders issued dufing the year, being an increase over the pre- ceding year of 994,306. The value of these orders amounted to $138,793,579.49, an in- crease of $11,217,145.84. There were also issued during the year postal notes amounting to $12,649,004.55. During the year 218 international money order offices were added to those already established, making a total of 2,625 such offices in operation June 30, 1894. The num- ber of international money orders issued during the year was 917,823, a decrease in number of 138,176; and their value was $13,792,455.31, a decrease in amount of $2,549,382.65. The number of orders paid was 361,180, an increase over the preceding year of 60, and their value was $6,563,- 493.78, an increase’ of $1,285,118.08, From the foregoing statements it appears ‘hat the total issue of money orders and postal notes for the year amounted to §$165,235,- 129.35. The number of letters and packages mail- ed during the year for special delivery was 3,436,970. The special delivery stamps used upon these “letters and packages amounted to $343,697. The messengers’ fees paid for thelr delivery amounted to $261,- 209.70, leaving a balance in favor of the government of $82,487.30. The report shows most gratifying results in the way of econ- omies worked out, without affecting tlie efficiency of the postal service. These con- sist in the abrogation of steamship sub~ sidy contracts, reletting of mail transpor- tation contracts and in the cost and amount of supplies used in the service, amounting in all to $16,619,047.42. Should Prepare for the Great Postal Congress, This report also contains a valuable con- tribution to the history of the universal postal union, an arrangement which ainounts practically to the establishment of one postal system for the entire civilized world. Special attention is directed to this subject at this time, In view of the fact that the next Congress of the union will meet in Washington in 1897, and it is hoped that timely action will be taken in the di- rection of perfecting preparations for that event. The Postmaster General renews the suggestion made in a previous report that the department organization be increased to the extent of creating a direct district supervision of all postal affairs, and in this suggestion I fully concur. There are now connected with the post office establishment 32,661 employes, who are in the classified service. This includes many who have been classified upon the suggestion of the Postmaster General. He states that another year’s experience at ‘the head of the department serves only to stfengthen the conviction as to the excel- ent working of the civil service law in this branch of the public service. Favors More Battleships and Torpedo Bonts. Attention {s called to che report of the Secretary of the Navy, which shows very gratifying progress in the construction of ships for our rew navy. All the vessels now building, including the three torpedo boats authorized at the last session cf Cengress and excepting the first-class bat- tleship Iowa, will probably be completed during the coming fiscal year. The estimates for the increase of the navy for the year ending June 30, 1896, are large, but they Include practically the entire sum necessary to complete and equip all the new ships not now in commission, so that unless new ships are author- ized the appropriations for the naval service for the fiscal year ending June 30, 1897, should fall below the estimates for the coming year by at least $12,000,000. The Secretary presents with much earnestness a plea for the authorization of three additional battleships and ten or twelve torpedo boats. While the un- armored vessels heretofore authorized, In- cluding those now nearing completion, will constitute a fleet which, it is believed, ts sufficient for ordinary cruising purposes in time of peace, we have now completed and in process of construction but four first- class battleships and but few torpedo beats. If we are to have a navy for war- like operations, offensive and defensive, we certainly ought to Increase both the nun:- ber of battleships and torpedo boats. ‘The manufacture of armor requires ex pensive plant and the aggregation of man: skilled workmen. All the armor necessary: to complete the vessels now building will be delivered before the Ist of June next. If no new contracts are given out con- tractors must disband their workmen and’ their plants must He idle. Battleships au- thorized at this time would not be well: under way until lat> in the coming fiscal year, and at least three years and a halt! from the date of the contract would be» required for their completion. The Sec- retary states that not more than 15 per cent of the cost of such ships need be in- cluded in the appropriations for the com- ing year. I recommend that provision be made for the construction of additional battleships and torpedo boats. @ Wanted for the Reserve Navy. The Secretary recommends the manufac- ture not only of a reserve supply of ord- mance and ordnance material for ships of the navy, but also a supply for the auxili- ary fleet. Guns and thelr appurtenances should be provided and kept on hand for: both these purposes. We have not today @ single gun that could be put upon the ships Paris or New York of the Interna- tional Navigation Company, or any other ship of our reserve navy. The manufacture of guns at the Wash- ington navy yard is proceeding satisfactor- ily, and none of our new ships will be re- quired to wait for their guns or ordnance equipment. An important order has been issued by the Secretary of the Navy co-ordinating the duties of the several bureaus concerned tm the construction of ships. This. order, it is believed, will secure to a greater extent than has heretofore been possible the harmonious action of these several bu- reaus and make the attainment of the best results more certain. During the past fiscal year there has beer an unusual and pressing demand in many quarters of the world for the presence oft vessels to guard American terests. Inv January last, during the Brazilian insur- rection, a large fleet was concentrated in the harbor of Rio de Janeiro. The vigorous* action of Rear Admiral Benham tn protect- ing the personal and commercial rights of our citizens during the disturbed condi- tions afforded results which will, it is be- lieved, have a far-reaching and whviesome influence whenever in like circumstances it may become necessary for our naval commanders to interfere oa behalf of our people in foreign ports. The war now im Progress between China and Japan has rendered it necessary or expedient to dis- patch eight vessels to those waters, The Navy Should © Both the Secretary of the Navy and the Secretary of the Treasury recommend the transfer of the work of the coast survey proper to the Navy Department. I heartily concur iu this recommendation. Excluding» Alaska and a very small area besides all the work of mapping and charting our coasts has been completed. The hydro- graphic work, which must be done over and over again, by reason of the shifting and varying depths of water, consequent upon the action of streams and tides, has heretofore been done under the direction of naval cfficers in subordination to the superintendent of the coast survey. There seems to be no good reason why the navy should not have entire charge hereafter of such work, especially as the hydrographic office of the Navy Department is now, and: has been for many years, engaged in mak- ing efficient maps entirely similar to those prepared by the coast survey. I feel it my imperative duty to call attention to the recommendation of the Secretary in re- gard to the personnel of the line of the: navy. The stagnation of promotion in this, the vital branch of the eervice, is so great as to seriously impair its efficieney. I consider it of the utmost importance: that the young and middle-aged olticers should, before the eve of retirement, be» permitted to reach a grade eniitling them to active and important duty. Navy Yard Reform Works Well. The system adopted a few years ago regulating the employment of labor at the navy yards is rigidly upheld, and has fully demonstrated its usefulness and expe- diency. It is within the domain of civil service reform, inasmuch as workmen are em- ployed through a board of labor, selected at each havy yard, and are given work with- out reference to politics and in the order of their application, preference, however, be- ing given tc army and navy veterans and those having former navy yard expe- rience. Amendments, suggested by experience, have been mad; to the rules regulating the system. ‘Through its operation the work at our navy yards has been vastly improved in efficiency, and the opportunity to work has been honestly and fairly awarded to willing and competent applicants. It is hoped that if this system continues to be strictly adhered to there will soon be, @s a natural consequence, such an equal- ization of party benefit as will remove all temptation to relax or abandon it. Secretary Smith Commended. The report of the Secretary of the In- terior exhibits the situation of the numer- ous and interesting branches of the pub- Me service connected with his depart- ment. I commend this report and the valuable recommendations of the Secre- tary to the careful attention of the Con- gress. The public land disposed ef during the year amounted to 10,406,100.77 acres, In- cluding 28,876.05 of Indian lands. It is estimated that the public domain still remaining amounts to a little more than 600,000,000 acres, excluding, however, about 360,000,000 acres in Alaska, as well as military reservations and railrbad and other selections of lands yet unadjudicated. The total cash receipts from sale of lands amounted to $2,674,286.79, including $91,981.03 received for Indian lands, Thirty-five thousand patents were Issued for agricultural lands and thirty-one hun- dred patents were issved to Indians on allotments of their holdings in severality, the land so allotted being inalienable by the Indian allotiees, and for a period of twenty-five years after patent. There were certified and patented on ac- ccunt of railroad ard wagon road grants during the year 805,556.45 acres of land, and at the close of the year 2,000,000 acres were embraced in the lists of selections mede by railroad and wagon road coim- panies and awaited settlement. The selections of swamp lands and that taken as indemnity therefor since the pass: age of the act providing for the same in 1846 amount to nearly or quite 80,500,000 acres, of which 58,000,000,have been patented to states. About 134,000 acres were patented during the last year. Nearly $20,000 acres of school and education grants were ap- proved during the year, and at its close 1,250,303.81 acres remained unadjusted. It appears that the appropriation for the cvrrent year on account of special service for the protection of the public lands and the timber thereon is much less than those for previous years and inadequate for an efficient performance of the work. A larger sum of money than has been ap- propriated during a number of years past on this account has been returned to the government as a result of the labors of those employed in the particular service mentioned, and I hope it will not be crip- pled by insuflicient appropriation. I fully indorse the recommendation of the Seo- retary that adequate protection be pro- vided for our forest reserves, and that a ccmprehensive forestry system be inaugu- rated. Such keepers and superintendents ag are necessary to protect the forests already re- 1 should be provided. I am of the nm that there should, be an gbandon-