The New York Herald Newspaper, December 8, 1874, Page 6

6 THE MESSAGE lL I The President’s Financial Pol- icy Its Chief Topic. Specie Resumption, Repeal of the Legal Tender Act and Free Banking the Specifics. CONDITION OF THE SOUTH. The Constitutional Amendments ; To Be Enforced. RELATIONS WITH OTHER POWERS WasHINeTon, Dec. 7, 1874 To THE SENATE AND House OF REPRESENTATIVES :— Since the convening of Congress one year ago the nation has undergone a prostration in busi- ness and industries such as bas not been wit- nessea with us for many years, Speculation as te@the causes for this prostration might be in- Quiged in without profit, vecause as many theo- ries would be advanced as there would be inde- pendent writers—those who expressed their own views without borrowing upon the subject. With- out indulging in theories as to the cause of this prostration, therefore, I will call your attention only to the fact and to some questions as to which it would seem there should be,no disagreement, LABOR AND CAPITAL UNBMPLOYED. During this prostration two essential elements of | prosperity have been most abundant. Labor and | capital both have been largely unemployed. | Where security has been undoubted capital has been attainable at very moderate rates, Where | labor has been wanted it has been found in abun. | dance at cheap rates compared witn what of neces- saries and comforts of life could be purchased | with the wages demanded. Two great elements | of prosperity, therefore, have not been denied us, | A third might be added, Our soil and climate are unequalled within the limits of any contiguous ter- ritory under one nationality for its variety of pro. Gucts to feed and clothe a people, and in the | amount of surplus to spare to feed leas favored | peoples. NECESSARY FINANCIAL LEGISLATION, Therefore, with these facts in view, it seems to me that wise statesmanstip at this session of Congress would dictate legislation ignoring the past, directing in proper channeis these great elements of prosperity to any people. Debt abroad ts the only element that can, with always @ sound currency, enter into our affairs to cause any continued depression in the industries and prosperity of our people, HISTORY OF THE NATIONAL CURRENCY. A great confict for national existence made necessary for temporary purposes the raising of large sums of money from whatever source attain- able. It made it necessary, in the wisdom of Congress, and I do not doubt their wisdom in the premises, regarding the necessity of the times, to devise a system of national currency which proved to be impossible to keep on @ par with the recognized currency of the civilized world. This begot a spirit of speculation involving an extravagance and luxury not required for the happiness or prosperity of a people, and involving | both directly and indirectuy foreign indebted- bess. The currency, being of a fluctuating value and therejore unsafe to hold for legitimate transactions requiring money, became a subject Of speculation in itself, Toese two causes, how- ever, have involved us in a foreign indebtedness contracted in good faith by borrower and tender, which should be paid in coin, and, according to tae bond agreed upon when the debt was con- tracted, in gold or its equivalent. The good faith of the government cannot be violated toward creditors without national disgrace. COMMERCE SHOULD BE ENCOURAGED. But our commerce should be encouraged, Ameri- ¢an shipbaliding and carrying capacity increased, and joreign markets sought for the products of the soil and manufactories to the end that we May be able to pay these debts. Where a new market can be created for the sale of our products, either of the soil, tne mine or the manufactory, a ew means is discovered of utilizing our idie capital and labor to the advantage of the wnole people. THE FIRST STEP A GOOD CURRENCY. But in my judgment the first step toward accom- plishing this object is to secure a curreney good Wherever civilization reigns—one which, if it be. comes superabundant with one people, will find a market with some other—a currency which has as its basis the lavor necessary to produce it, which wil give to it its value. Gold and silver are now the recognized mediums of exchange | ing laws, Indeed { would regard free banking as the civilized world over and to this | ‘we should revarn with the least practical delay. | In view of the pledges of the American Congress, ‘when our present legal tender system was adopted | and aebt contracted, there should be no delay— | certainly no unnecessary delay—in fixing by leg- | isiation @ method by which we will return to specie. NECESSITY OF SPEEDY RESUMPTION. To the accomplishment of this end I invite your Special attention. I believe firmly tha: there can be no prosperous and permanent revival of busi- ness and industries until a policy is adopted, witn | legislation to carry it out, looking toa return to a epecie basis. EXPANSION— DEBTORS AND SPECULATORS. [t is easy to conceive that the debtor and specuiative classes may think it of vaiue to them to make so-called money abundant until they can throw a portion of their burdens upon | others; but even these, 1 believe, would be disappointed in the result if a course should be pursued which will keep in doubt the value of the iegal tender medium of exchange. A revival of productive inaus- | tries 18 needed by all classes and by none more than the holders of property of whatever sort, with debts to liquidate from the realization upon its | saie. But, admitting that these two classes of citizens are to be benefited by expansion, would | it be honest togive it? Would not the genera; | loss be too great to justify such relief? Would it Dot be just as honest und prudent to autnorize each debtor to issue his own legal tenders to the extent of bis Mabilities? Then, to do ths would it not ve safer, for fear of overissne by | Unscrupulous Creditors. to say that ail debt and ob- | lgations are obiiterated in the United States, and bow we commence anew, each possessing all he has at the time free from incumbrance. DELAY OF SPECIE RESUMPTION IS DISHONESTY. These propositions are too absurd to be enter- | tained for 4 moment by thinking or honest people, Yet every delay in preparation for final resump- | tion partakes of this dishonesty, and is only less in degree aa the hope is held out that a convenient season will at last arrive for the good work of redeeming our pledges to commence, It will never come, in my opinion, except by posi- tive action by Congress or by national disasters, ‘which wili destroy, for atime at least, the credit Of the individual and tne State at large. A sound currency might be reached by total bankruptcy and discredit of the integrity of the nation and of individuals. WHAT CONGRESS CAN DO, I believe it is im the power of Congress at this sesseion to devise such ilegisiation as will renew confidence, revive ail the indus- tries, start us om & career of prosperity to last for many years and to save the credit of ‘the nation and of the people. Steps toward the | Fetarn to a specie basis are the great requisites to | this devoutly to be sought for end. There are others which I may touch upon hereafter. DISADVANTAGES OF A DEPRECIATED CURRENCY. | worse form does it apply to Chinese women. | Hardly a perceptible percentage of them perform A nation dealing in a currency below that of @pecie tn value labors under two great disadvan- tages. First, having no use for the world's ac- knowledged mediums of exchange—gold and stiver, These are driven out of tne country becanse there is no demand for their use. Second, the medium of exchange in use being of & fluctuating value, for after all it is only worth just what tt will purchase of gold and silver metals having an intrinsic value just tn | | claims a8 well proportion to the honest labor it takes to produce them, A larger margin must be allowed for profit by the manufacturer and producer. It 18 months trom to the date of realization. Interest on capital | eguitabie and satisfactory manner, Congress and the must be charged and the risk of fluctuation in the value of that which is to be received in payment | added. Hence high prices, acting as a protection to the foreign producer, who receives nothing in exchange for the product of his skilled labor ex- ceptacurrency good at a staple value the world over. THE BURDEN ON THE WORKINGMAN. It seems to me that nothing is clearer than that the greater part of the burden of existing prostra- tion, for the want of asound financial system, falls upon the workingman, who must, after all, pro- duce the wealth, anu the salaried man who super- Intends and conducts business, The burden fails upon them in two ways: by the deprivatiun of em- ployment and by the decreased purchasing power of their salaries, THE PRESIDENT’S REMEDIES. It is the duty of Congress to devise the method of correcting the evils which are acknowledged to exist and notmine, But 1 will venture to suggest | two or three things which seem to me as absolutely | necessary to a return to specie payments—the first | great requisite in a return to prosperity. REPEAL OP THE LEGAL TENDER. The legal tender clause to the law authorizing the issue of currency by the national government | should be repealed, to take effect as to all contracts entered into after a day fixed in the repealing act; not to apply, however, to payments of salaries by government, or for other expenditures now pro- vided for by law to be paid im currency. In the interval pending between the repeal and final | resumption provision should be made by | which the Secretary of the Treasury can ob- tain gold as 1t may become necessary from | time tqtime from the date when specie redemp- | tion commences, To this might and should be added a revenue sufficiently in excess of expenses to insure an accumulation of gold in the Treasury to sustain redemption, I commend this subject to your careful consideration, believing that a favorable solution is attainable, and that if reached by this Congress, that the present and future generations will ever gratefully remember itas their deliverer trom a thralidom of evil and disgrace. FREE BANKING, With resumption, free banking may be author- ized with safety, giving the {ull protection to bill holders which they have under exist- | essential. It would give prover elasticity to the | currency. AS more currency should be required for the transaction of legitimate business pew banks would be started, and in turn banks would wind up their business when it was found there was a superabundance of currency. The experience and judgment of the people can best decide just how much curreacy 1s required for the transaction of tae business of the country. It is unsafe to leave the settlement of tnis question to Vongress, the sec- retary of the Treasury or the Executive. Con- gress should make the regulation under which banks may exist, but should not make banking & monopoly by limiting the amount of redeemable paper currency that shall be authorized. Such importance do I attach to this subject and so earnestly do Icommend it to your attention that Igive it prominence by introducing it at the be- ginning of this Message. FRIENDLY RELATIONS WITH OTHER POWERS. Daring the past year notuing has occurred to disturb the general iriendly and cordial relations of the United States with other Powers, The correspondence submitted herewith between the date of production | | last session by accepting the condition required | latter. ; tons with the inaependent States of this hemi- this government and its diplomatic representa- tives, as also with the representatives of other | on account of awards 1u favor of citizens 0; the countries, shows @ satisfactory condition of all | United states. Hopes have been entertained that questions between the United Statesand tne most | !! the Republic could escape both toreign and any points of difference to be adjusted. THE UNITED STATES AND BELGIUM. The notice directed by the resolution of Con- gress of June 17, 1874, to be given to terminate the convention of July 17, 1858, between the United States and Belgium has been given and the treaty will accordingly terminate on the 1st day of July, 1875.- This convention secured to certain Belgian vessels entering the ports of the United States exceptional privileges which are Not accorded to our own vessels. Other features of the convention have proved satisfactory, and | have tended to the cultivation of mutually bene- | ficial commercial intercourse and friendly relation between the two countries. 1 hope that the negotia- tions which have been invited will result in the celebration of another treaty which may tend to the interests of both countries. CHINA—THE FORMOSAN DIFFICULTY. Our relations with China continue to be friendly. During the past year the fear of hostilities between China and Japan, grow- ing out of the landing of an armed force upon the Island of Formsoa by the latter, has | of those countries, and with few exceptions, to | gources would enabie it to honor its obligationg, which reference is hereaiter made, the absence of | Though itis now understood to be at peace with | announce the arrangement of | important | ernments 1s hoped for. In the meantime, awaiting occasioned uneasiness, It is earnestly hoped, how- ever, that the difficulties arising from this cause will be adjusted, and that the advance of civiliza- tion In these empires may not be retarded by a state of war. In consequence of the part taken by certain citizens of the United States in this expedition, our representatives in those countries have been instructed to impress npon the govern- ments of China and Japan the firm intention of this country to maintain strict neutrality in the event of hostilities and to careluily prevent any infraction of law on the part of our citizens, CHINESE IMMIGRANTS TO THE UNITED STATES. In connection with this subject | cali the attention of Congress toa generally conceded fact that the great proportion of the Chinese immigrants who | come to our shores do not come voluntarily to make their homes with us and their labor productive of general prosperity, but come under contracts with head men, whoown them almost absolutely. Ina any honorable lapor, but they are bought for shame- ful purposes tothe disgrace of the communities where settled, and to the great demoralization of the youth of those localities. Ifthis evil practice can be legislated against it will be my pleasure as well as duty to enforce any resolution to secure 60 desirable an end. JAPAN, It 18 hoped that negotiations between the gov- ernment of Japan and the treaty Powers, looking | to the farther opening of the Empire and to the removal of various restrictions upon trade and travel, May soon produce the results desired, which cannot fail to inure to the benefit of all the parties, THE JAPANESE INDEMNITY. Having, on previous occasions, submitted to the consideration of Congress the propriety of the release of the Japanese government from the fur- ther payment of the indemnity under the Conven- tion of October 22, 1864, and as no action had been taken thereon, it became my duty to regard the obligations of the Convention as in force, and as the other Powers interested haye reteived their portion of the indemnity in full, the Minister of | the United States in Japan has, in be- half of this government, received the re- mainder of the amount due vhe United States under the Convention of Simonoseky, submit the propriety of applying the income of @ part, if not the whole, of this fund to the educa- tion im the Japanese language of a number of young men, to be under obligations to serve the government for a specified time as interpreters at the legation and the consulates in Japan. A lim- ited number of Japanese youths might at tne same time be educated in our vernacular, and mutual benetit would result to both governments. The importance of having our own citizens com- petent and familiar with the language of Japan, to act as interpreters and in other capacities con- hected with the legation and the consulates in that country, cannot be readily overestamated,. GREAT BRITAIN—THE MIXED COMMISSION, The amount awarded to the government of Great Britain by the Mixed Commission organized under the provisions of the Treaty of Washington in settlement of the claims of Brit- | States | Prescribed reasonable and simple formalities and | not even been within the United States at the ish subjects, arising from acts committed between April 13, 1861, and April 9, 1565, became payavie uuder the terms of the treaty wittn the pas year and was paid upon the 2ist day of September, 1874. In this connection | renew my recommenda- tion, made at the opening of tne St session of Congress, that a special court be created to hear and determine ali claims of aliens against tne | United States arising (row acts committed against their persons or property during tbe insurrection. It appears equitable that opportunity should ve offered vo citizens of other States to presert their as to those British subjects whose claims were not admissible under the 1a.e commission to the early decision of some compe- tent tribunal. To this end | recommena the neces- sary legisiation to organize @ court to dispose of all claims of aliens of the nature referred to in an nd to relieve departments ‘rom the consider- TREATY OF WASHINGTON. The legislation uecessary to extend to the colony | of Newioundland certain articles of the Treaty of Washington of the 8th of May, 1871, having been had, @ protocol to it effect was signed in bebali of the United States and Great Britain on the 28th day of May last, and was duly prociaimed on tne following oy A copy of the proclamation is submitted here wit! BOUNDARY REPORT. A copy of the report of the Commissioner ap pointed under the act of Marcn 19, 1872, for sur- veying and marking tue boundary between the United States and the British Possessions, from tue Lake of the Woods to the sumaut of the Rocky | Mountains, i® herewith transmitted. 1 am Lappy to announce that the fleid work of the Commission has been completed, and the entire line, from the northwest corner of the Lake of the Woods to the summit of the Rocky Mountains, has been run and Marked upon tue surface of the earth. Itis believed that the amount remaining unex- pended of the appropropriation made at the last session of Congress Will be sufficient to complete the office work. I recommend that the authority of Congress be given to the ase of the unex- pended balance ol the appropriation in the com- | pietion of the work of the Coramission in making its report and preparing the necessary maps. ALABAMA CLAIMS COMMISSION, The court known as the Court of Commissioners of Alabama Claims, created by an act of Congress of the last session, bas organized and commenced its work, and it is to be hoped that the claims ad- missibie under the provisions of the act may be speedily ascertained and paid. RELATIONS WITH TURKEY. It has been deemed advisable to exercise the discretion conferred upon the Executive at the by the government of Turkey for the privilege of allowing citizens of the United States to hold real estate in the former country, and by assenung to a certain change in the jurisdiction of courts in the | Acopy of the proclamation upon these subjects is herewith communicated. THE SPANISH AMBRICAN STATES, There hes been no material change in our rela- sphere which were formerly under the dominion of Spain. MEXICO—MARAUDING ON —1E FRONTIER, Marauding on the frontiers between Mexico and Texas still requently takes place, despite the vig- ilance of the civil and military authorities in that quarter. The difficulty oj checking such trespasses along the course of @ river of such lengtn as the Rio Grande and so fordable ts obvious, It is hoped that she efforts of this government will be sec- onded by those of Mexico to the effectual suppres- sion of the acts of wrong. THE MEXICAN CLAIMS COMMISSION. From @ report upow the condition of the business before the American and Mexican Joint Commission, made by the agent on the part of the Untied States, and dated October 28, 1874, 1b Sppeara that of the 1,017 clatms filed on the part of citizens 01 the United States, 483 had been finally decided and seventy-five were in the hands of the umpire, leaving 462 to be disposed 01 ; and of the 998 claims filed against the United States, 726 had been finally decided, one was be- fore the umpire, and 271 remained to be disposed of, Since the date of such report other claims have been disposed of, reducing somewhat the number still pending, and others ,have been ope upon by tne arbitrators. It has come apparent, in view of these figures and of the fact that the work de- volving on the umptre is particularly laborious, that the Commission would be unable to dispose of the entire number of claims pending prior to to the lst day of Fevruary, 1875, tue date fixed for its “expiration. Negotiations are pend- ing looking to the securing of the results of the decisions which have been reachea and toa further extension of the Commission for a limited dime which it 1s confidently hoped will suffice to bring ail the business now bejore it toa final close, THE ARGENTINE REPUBLIC. The strife in the Argentine Republicis to be de- Plored, botn on account o1 the parties thereto and irom the probable effects on the interest of those engaged in the trade, to that quarter of whom the United States are among the principal. As yet, sv far as I am _ sware, there has been no violation of our neutrality rights, which, as ‘Well as our duties in that respect, it shall be my endeavor to maintain and observe. It is witn regret [ anonOunce that noiurther payment has been received trom the government of Venezuela civil war for a few years its great natural re- other countries a serious insurrection 1s reported | to be in progress in an important region of that Republic. This may be taken advantage of as another reason to delay the payment oi the dues of our ciuzens. THE CIVIL WAR IN CUBA. The deplorable striie in Cuba continues without any marked change in the rela- | tive advantages of the contending forces. ‘The | insurrection continues . but Spain has gained | no superiority. Six years of strife gives the insur- rection @ significance which cannot be denied, Its duration and the tenacity of its adherence, to- | gether with the absence of manifested power of suppression onthe part of Spain, cannot be con- troverted, and may make some positive steps on the part of other Powers @ matter of sell-neces- sity. 1 had OUR RELATIONS WITH SPAIN. | confidently hoped at this time to | some of the questions between this govern- ment and that of Spain, but the negotia- tions have been protracted. The unnappy intes- tine disseusions of Spaiz command our projound sympathy, and must we accepted as, peseeee a cause of some deiay. AD Lad settlement, in Part at least, of the questions between the gov- the results of Immediately pending negotiations, I gefer a further and fuller communication on the subject of the relations of this country and Spain. EXPATRIATION AND ELECTION OF NATIONALITY. T have again to call tue attention of Congress to the unsatistactory condition of the existing laws with reference to eXpatriation and the elec- tion of pationality, Formerly, amid conflicting | opinions and decisions, it was dificult to exactly determine how far the doctrine of perpetual alle- ance Was applicable to citizens of the United States, Congress, by the act of July 27,/1868, as- serted the abstract right of expatriation as @ 1uD- damental principle of this government. Notwith- standing such assertionand the necessity of the frequent application of the principle no legisia- tion has been had defining what acts or formall- ties shali work expatriation or when a citizen shail be deemed to have renounced or to have lost his citizenship, The importance of sucu defil- nition is obvious, Tne representatives of the United States in foreign countries are continually called upon to lend their aid and the protection of the United States to persons concerning the good faitu or the reality of whose citizenship there ig at least great question, In some cases the provisions of the treaties furnish some guide. In others it seems jelt tu the persons claiming the benefit of eles) while living in a ioreign country, contributing in no manner tp the per- formance of the duties ofa citizen of the United States and withont intention at any time to re- turn and undertake those duties, to use the claims of citizenship of the United States simply asa shield irom the performance of the obiigations of | @ citizen elsewhere. Te status of children born of American parents residing in a foreign country, of American women who have married aliens, of American citizens residing abroad, where such question is not regulated by treaty, are ail sources of frequent difficulty and discussion. Legislation on these and similar questior and particularly defining when and under what circumstances expatriation can be accomplished or it isto be presumed is especiaily needed, FRAUDULENT NATURALIZATION. In this connection I earnestly call the attention of Congress to the difficulties aris- ‘ng from fraudulent naturalization, The United sely, freely and liverally offers its citizen- ship to all who may come in good faith to reside WIThIN its limits, on their complying with certain conditions. Among the highest duties of the gov- ernment ia that to afford firm, efficient and equal protection to ali {ts citizens, whether native born or naturalized, Care shouid be taken that a right Carrying With tt such support Irom the governmeat should not be fraudulently obtained, aud snould be bestowed only upon full proof of a compliance th the law; apd yet there are frequent ine ances of tilegal and fraudulent naturaiization and oi the unauthorized use of certificates thus improperly obtained. In some Cases the fraudu- lent character of the naturalization has appeared upon the face of the certificate itsell; in otners ex- amination discioses that the hoider tad not com- plied with the law, and in others certificates have been obtained where the persons holding them notonly were pot entitied to be naturalized, but had time of the pretended naturalization. Instances of each Of these Classes Of {raud are discovered at our iegations, Where the certificates of naturali- zation are presented, either ior the purpose of ob- taining passports or in demanding protection of the Jé@gations, When the fraud 18 apparent on the face of such certificates they are taken up by the representatives of the government and forwarded to the Department of State. But even then the record of the Court in which the fraudulent naturalization ocourred remains, aud duplicate certificates are readily obtainable. Upon the presentation of these for the issue of passports, or on demanding protection of the government, the fraua sume- umes escapes notice, and such certificates are not infrequently used tv transactions of business to the deception and injury of innocent parties. Without placing any vdditional obstacies in the way of the ootainment of citizenship by the worthy NEW YORK HERALD, TUESDAY, DECEMBER 8, t | lent naturalization and to secure the ready can- | and Englisu literature at West Point. | steady increase in tne efficiency of this most | good faith to cast his lot with ours, I earnestly recommend further legisiation to punish traudu- cellauon of the record of every naturalization made ip traud, TREATIES OF EXTRADITION. Since my last annual Message the exchange has been made Of the ratification of treaties of extra- dition with Belgium, Keuador, Peru and Salvador; 1874.-QUADRUPLE SHEET. . tries. I respectfully direct your attention to me report of the Postmaster General and to his gug- | legisiauon asked Jor by bim, rt of tne Secretary or the intertor and to the ‘The domestic’ tne gestions in regara to an equitavie fbn Of | terests of the people are more intimate), pees the question of compensation to railro: rying the matis, CONDITION OF THS SOUTHERN STATES—LOUISIANA, Your attention will be drawn to the unsettled condition of affairs in some of the Southern States, On the 14th of September last the Governor of jor car- | nectea with this department than with elt the other departments of the vernment. Ite duties have been added to from time to time until they have become so Onerous that without tue Most periect system ana order it will be im ble for any Secretary of the Interior to keep also ol a treaty of commerce and navigation with | Louisiana called upon me, as provided by the con- | trace sactions having his sanc- Peru and one of commerce and consular privileges | stitution and laws of the United States, to | tion <i Ag ais and tar whieh, he is” with Salvador, all of which have been duly pro- | aid in Sapereming domestic violence in that | held personall: responsible. The policy adopted claimed, a8 has also a declaration with Russia | State. This call was made in view @ | for the mi ment of Indian affairs, known as with reierence to trade marks. roclamation issued on that day oF the peace icy, has been adhered to with most TREASURY RECEIPTS AND EXPENDITURES. . B. Penn, claiming that he was elected | beneficial results, itis confidently hoped that & The report of the Secretary of the Treasury, | Lieutenant Governor in 1872, and calling | few years more will relieve our frontiers from which by law is made directly to Congress and | upon the militia of the State to arm, | danger of indian depredations. 1 commend the ms no part of ae Lar at will show ee 5 > | ae ane eee som ower ad the eroemencenen of the Secretary for the exten- ceipts and expenditures 01 e government for ignat ie officers | sion of the nest the last fiscal year, the amount received. from | of the Stac® government, On the next Homestead laws to the Indians and for each source of revenue and the amount paid out for euch of the departments of government, | It will be observed irom this report that the | amount of receipts over expenditures has | been but $2,344,882 30 for the fiscal year ending June 30, 1874, and that the current fiscal year the estimated receipts over expenditures will not much exceed $9,000,000, In view of the large national debt existing and the obligation to add one per cent per annum to the sinking fund, @ sum @mounting now to over $34,000,000 per an- num. SHALL THE REVENUES BE INCREASED? I submit whether the revenues should not be increased or expenditures diminished to reach this amount of surplus. Not to provide lor the sinking |und 1s @ partial failure to comply with the contracta and obligations of the government. At the last ton of Congress @ very co siderable reduction was made in rat of taxation and in the number of articles sub- mitted to taxation. The question may well be asked whether or not In some instances unwisely? EMBARRASSMENT IN COLLECTING DUTIRS. In connection with this subject, too, l venture the opinion that the means of collecting the revenues, especially from imports, have been so embarrassed by legislation as to make it qpestionadie whether or not large amounts are not lost by failure to col- lect, to the direct loss of the Treasury and to the Prejudice of the interests of honest importers aud taxpayers, ‘ THR SECRETARY'S RECOMMENDATIONS. The Secretary of the Treasary, in Te- port, favors legislation looking to an early return to specie payments, thus supporting views previously expressed in this Message. He also recommends economy in appropriations, calls attention to the lows of revenue irom repealing the tax on tea and coffee without benefit to the consumer, recommends an increase of ten cents | @ gallon on whiskey, and, jurther, that no modifi- cation be made in the Banking and Currency bill passed at the last session of Congress uniess modi- fication should become necessary by reason of the adoption of measures for iebied os 3 to specie pay- ments. In these recommendations I cordially join. READJUSTMENT OF THE TARIFS. I would suggest to Congress the propriety of readjusting the tariff soas to increase the revenue and at the same time decrease the number of articles upon whioh duties are levied. Those articles which enter into our manufactures and are not produced at home, it seems to me, should be entered free. Those articles of manu- facture which we produce @ constituent part ol, but do not produce the whole, that wich we do ot produce should enter tree also. I wili instance fine wool, dyes, &o. These articles must be im- pueee to form & part of the manufacture of the igher grades o1 woollen goods, chemicals used as dyes, compounded in medicines and used in vari- ous Ways In manufactures, come under this class. ‘The introauction tree of duty of such woois as we do not produce should stimulate the manulacture of goods requiring the use of those we do roduce, and, therefore, would be a beneflt to ome production. There are many articles enter- ing into home manufactures which we do not pro- duce ourselves, the tariff upon which increases the cost of producing the manufactured article. All corrections in this regard are in the direction | of bringing labor and capital m harmony with each other and of supplying one of the elements of Property 80 much needed. THE WAR DEPARTMENT. The report of the Secretary of War, here- with attached and forming a part of this Message, gives all the iniormation concern- ing the operations, wants and necessities of the army, and contains many suggestions and recommendations which I commend to your special attention. There is no class of govern- ment employés who are harder worked than the army officers and men, none wno periorm their tasks more cheerfully and efficiently and under circumstances of greater privations and hara- ships. Legislation is desirable to render more efficient this branch of the public service. Ali the recommendations of the Secretary of War L regard as judicious, and I especially commend to your attention the lfollowing:—The consolidation of the government arsenals; the restoration of. mileage to officers traveiling under orders; tne exemption of money received from the sale of sub- sistence stores irom being covered into the Treas- ury; the use 0: aprropriations for the purchase of subsistence stores without waiting lor the begin- ning of the fiscal year for which the appro- priation is made; for additional Spproprianions for she collection of torpedo material; for in- creased appropriations for the manuilacture of arms; for relieving the various States from in- debtedness for arms charged to them during the rebellion; for dropping officers from the rolls of the army, without trial, ior drawing pay more than once ior the same period; jor the discouragement of the plan to pay soldiers by checks, and for the establishment of @ professorship of rhetoric The reasons for these recommendations are ob- vious and are set forth sufficiently in the report attached. I also recommend that the status of the stat! corps of the srmy be fixed, where this has not already been done, so that promotions may be made and vacancies filled as they occur in each grade, when reduced below the number to be fixed by law. The necessity for such legislation is specially felu now in the Pay Depart ment. ‘The number of officers in that department is below the number adequate - zie periormance of the duties required of them yy law. THE NAVY DRPARTMENT. The efficiency of the navy has been largely in- creased during the last year. Under the impulse of the foreiga complications which threatened us at the commencement of the last session of Con- ess Most Of Our efficient wooden ps were put jd condition for immediate service, and tne re- | Pairs of our tron-clad fleet were pushed with the Utmost vigor. The result is that most of these are now in au effective state and need only to be Manned and put in commission to go at once into service. Some of the new sloops author- ized by Congress are already in commission and | most Of the remainder are launehed and wait only the completion of their machinery to enable them to take their places as part 01 our effective for: Two tron torpedo slips have been completed dui ing the last year and jour of our large doubie-tu reted iron-clads are now undergoing repairs. | When these are finisbed everything that is useful | of our navy as now authorized will be in condition for service, and with the advance in the science ol torpedo wariare the | American navy, couparatively small as it 1s, will be sound at any time powerful for the purposes of @ peaceful nation. SCIENTIFIC WORK OF THE GOVERNMENT. Much has also been accomplished during the | cording to the election returos, was approved by | out a hearsay, day lissuea my prociamation, commanded the in- surge! to disperse within five days irom the date thereof, and subsequently learned that on that day they bad taken forcible possession of the State House. Troops were taken by me to support the existing ana recognized State government, but besore the expiration of the five days the insurrec- ‘ionary movement was practical ybandoned, and the officers of the State government, with some mi- hor exceptions, reaumed their powers and duties, Considering that the present State administration of Louisiana has been the only government in that State tor nearly two years; that it has been tacitly acknowledged and julesced au sucn by Congress, and more than once expressly recognized by me, I regarded it as my clear duty, when legally called on for Yuat pur Pose, to prevent its overthrow by an armed mob unaer pretence of pi and irregularity in the election of 1872, have heretoiore called the attention of Congress ti at on account of the frauds end forgert at said election, and because it appears that the returns thereof were never legally canvassed, it was impossibie to tell thereby who were chosen, But, from the best sources of information at my command, I have always believed the present State officers received a majority of the legal votes actually cast at that election. Irepeat what! said be my special measag of February 1 1873—that in the event of no action by Congress I must con- tinue to recognize the government, heretolore recognized by me, THE WHITE LEAGUES, I regret to say that with the preparations for the late election decided indications ap- peared in some localities in the Southern States of a determination by acts of violence and | intimidation to deprive citizens of the ireedom of | the ballot because of their political opinions. Bands of men, masked and armed, made their ap- pearance, White Leagues and otner societies were | Jormed, large quantities of arms and ummunition | were imported and distributed to these organiza- tions, military arills with menacing demonstra- tions were held, and with ail these, murders enough were colmitted to spread terror among those Whose political action was to be suppressed, If pos- sible, by these intolerant and criminal proceed- ings. In some places colored laborers were com- peiled to vote according to the wishes of their em- ployers, under threats of discharge if they acted otherwise; and there are too many instances in which, when these threats were disregarded, they were remorseiessly executed by those who made them. FEDERAL INTERFERENCE AT THE SOUTH. Tunderstand that the Filteenth amendment to the Constitution was made to prevent this like state of things, and the act of May 31, 1870, with amendments, was passed to enforce its provisious, the object of this being to guarantee to all citizens the right to vote and to provect them tn the free enjoyment of that right enjoined by the constitution to take care that the laws be faithfully executed ; and con- vinced by undoubted evidence that violations of said act had been committed and that a wide- spread and flagrant disregard of it was convem- plated, the proper officers were instructed to prosecute the offenders, and troops were stationed at convenient points to aid these oft. cers, if necessary, in the performance of their oMcial duties, Complaints are made or this interference by federal authority, but if said amendment and act do not proviae for such interference under the circumstances, as @oove stated, then they are without meaning, force or effect, and the whole scheme of colored enfranchisemen: is Worsé than mockery and little better than a crime. Possibly Congress may find it due to truth and justice to ascertain, by means of a committee, Whether the alleged wrongs to colored citizens for political purposes are real or whether the reports thereof were manulactured jor the occasion. TROOPS IN THE SOUTH, The whole number of troops in the States of Louisiana, Alabama, Georgia, Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, Mississippi, Maryland and Virginia at | the time of the election were 4,082, This embraces the garrisons of all tne forts irom the Delaware to the Gulf of Mexico, THE TROUBLES IN ABKANSAS. Another trouble has arisen in Arkansas, Ar- ticle 18 of the constitution of that State | (wnich was adopted in 1868,and upon the ap- , proval of which by Congress the State was re- | stored to representation as one of the States of the Union) provides in effect that belore any amendments proposed to this constitution siall be- come a part thereof they shall be passed by two successive Assemblies and then be submitted to and ratified by & majority of the electora of the State voting thereon. Un the 11th of May, 1874, the Governor convened an extra session of the General Assembly of the State, which, on the 18th of the same month, passed an act providing for a convention to frame a new constitution pur- suant Co this ac:, and at an election held on the 30th of June, 1874, the convention was approved. and delegates were choseu thereto on the 14th of last July, and formed @ new constitution, the schedule oi which provided for the election of an entire new set of State officers, in a manner con- trary to the then existing elect.on laws 0! the State. On the 13th of October, 1874, this constitution, as herein provided, was submitted to the people for their approval or rejection, and, ac- a large majority of tnose qualified to vote thereon, and at the same election persons were chosen to fill all the State, county and township offices. The Governor elected in 1872 for the term of four years | turned over his office to the Governor chosen un- der the new constitution, whereupon the Lieuten- ant Governor, also elected in 1872 for a term of four years, claiming to act as Governor, | aod alleging that said proceedings by which the new constitution was made and @ new set of officers eiecied were unconstitue tional, illegal and void, calied upon me, a8 pro- vided in section 4, article 4, of the constitution, to rotect the State against domestic violence. As Jongress is now investigating the political affairs of Arkansas, | have declined to interlere. THE PRESIDENT ON EXRCUTIVE INTERFERENCE. The whole subject o! Executive interierence with the affairs of a State is repugnant to pudiic opin- ion, to the feeling of those who, from their official capacity, Must be used in such imterposition, and to him or those who must direct. | Uniess most clearly on the side of } law such interference becomes a crime. | With the law to support it it 1s condemned with- 1 desire, thereiore, that all neces- | sity for Executive direction in locai affairs may | become unnecessary aua obsolete. | ASKS THE PEOPLE TO CONSIDER THESE QUESTIONS, | I invite the attention, not of Congress, but | year 1n aid of science and to increase the sum of general knowledge and iurther the .interests of commerce and civilization; extensive and much | Needed soundings have been made for hydro- seapbic arposes, and to fix the . proper Toutes of ocean telegraphy further surveys | of the great Isthmus have been undertaken, and | completed, and two vessels of the navy are now | employed, in conjunction with those of England, | France, Germany and Russia, in observations con- | nected with the transit of Venus, 80 useful and in- | teresting to the scientific world, Tne estimates | for this branch of the public service do not differ materially from those of last year, those for the general support of the service betng some- | what less and those ‘or permanent improve- ments at the various stations rather larger than the corresponding estimate made | & year ago. The regular maintenance and a | important arm in proportion to the growth of our | maritime intercourse and interests is recom. | mended to the attention of Congress. The use of | the navy in time of peace might be further utii- ized by & direct authorization of the employment of navai vessels in explorations and surveys of the supposed navigable waters of other nationali- ties on this Conunent, especially the tributaries of the twogreat rivers of South America, tne Orinoco and the Amazon ; nothing prevents, under existing laws such exploration, except that expenditures be made in such expeditions beyond those usually provided tor in the appropriations. The field designated is unquestionably one of interest and ope capable of large developments 0: commer- | cial interests advantageous to the peoples reached and to those who may establish relations with them. EDUCATION OF THE PEOPLE. The education of the people entitied to the exercise of the right of- franchise I regard essential to general prosperity everywhere, and especially so in republios where education or pre- vious condition does not enter into account in giv- ing suffrage. ; THE POSTAL SERVICE. Next to the public school the Post Ofmce is the great agent of ¢ducation over our vast territory. Th gt 4 with which new sec- tions are being settied, thus increasing the carry- ing of mails ma more rapid ratio than the in- crease of receipts, 18 not alarming, The re- port of the Postmaster General herewith attached shows that there was an increase of revenue in his department in 1873 over the previous year of $1,674,411 and an increase Of the cost of carrying the mails and paying employés of $3,041,463 91. The report of the jtmaster General gives inter- esting statistics of his department, and compares them with she corr nding statistics of a year ago, showing @ growth in every branch of the de- partment. A postal convention has been con- | uabie recommendations relating to the administra- cluded with New South Wales, an ex- | tion bef ae tl the courts of the United States, to change of postal cards establisned with | whicn linvite your aitention. 1 respecitully sug- Switzerland, and the negotiations pending | gest to Congress the propriety of increasing the for several years past with France have ter- | number of juriicial districts tm the United minated in @ Convention With that country, Which | States to cleven, the present number be went into effect last August. THE POSTAL CONVENTION AT BERNE. An international Postal Congress was convened at Berne, Switzerland, in September last, at which the United States was represented by an officer of the Post Oflice department of mucn experience and of qualification for the posi- tion, A convention for the establishment of an internatjonal postal union was agreed of the peopie of the United Sta.es, to the ; causes and effects of these unhappy ques- | tions, Is there not @ disposition on one | side to magnify wrongs and outrages and | on the other side to belittle them or Justify them ? If pubitc opinion could be airected to w correct survey of what is and to rebuking wrong aud aiding the proper authorities in pan- ishing it @ better state of feeling would be incui- cated, and the sooner we would have tbat peace which would leave the States iree indeed to regulate their own domestic affairs. THE PRESIDENTS VIEWS OF THE SOUTH. I believe on the part of our citizens of the Southern States, the better part of them, there is | @ disposition to be Jaw-abiding, and to do no vio- | lence, either to individuals or to the laws existing, | but do they do right in ignoring the existence of violence and bloodshed, in resistance of constitu ted authority? 1 sympathize with their prostrate condition, aud would do all in my power to relieve | them, acknowledging that in some instances they have had most irying governments to live under, | and very oppressive ones in the way ol taxation, | for nominal improvement, not giving benefits equal to the hardships imposed; but can they proclaim tuemselves entirely irresponsible for this condi- tion, they cannot. Violence nas been rampant in | some localities, and has elther been justified or | denied vy those who could have prevented itt | THE CONSTITUTIONAL AMENDMENTS TO BE EN- | ORC ‘ORCED. i The theory is even raised that there 1s to be no | fartner interierence on the part of the general government to protect citizens within a State where the State authorities fail to give protection, This 18 @ great mistake. While I remain Executive all the laws of Congress and the provisions of the constitution, Including the recent amendments added thereto, will be eniorced with rigor, but With regret that they should have added one jot or tittle to the execative duties or powers, FAIRNESS AND FAIR DISCUSSION. Let there be fairness in the discussion of the Southern A lf ad and the advocates of both or | ail political parties give honest, truthful reports, | of occurrences, eee aa the wrong and upholding the right, and soon ail will be well. Under existing conditions the negro votes the republican ticket, vecause he knows iis friends are of that party. Many a good citizen yotes the opposite, not because he agrees with | the great principles of State which separate par- | ties, but because generally he is opposed to negro rue. This is @ most delusive cry. Treat the negro as a citizen and voter, ashe is and must Yemain, and soon parties wiil be divided, not on the color line, but on principle. Then we shall have no complaint of sectional interference, THE JUDICIARY, The report of the Attorney General contains val- ing nine, and the creation of two additional judgeships, The territory to be traversed by tne Circuit Judges is so great and the business of the courts 60 steadily increasing that itis growing more and more Impossible for them to keep up with the business requiring their asvention. Whether this woald invoive the necessity of adding two more Justices of the Supreme Court to the present number 1 submit to the judgment of | gress | above stated as } the District of Columbia should Some sort of Territorial government for the Indian Territory. eat majority of the Indians occupying this Territory are believed to be inca- Ppable of Terris ete rights against the more civilized and enlightened white men. Any ter: torial form of government given tiem, thererore, should protect them in their homes and property for a period of at least twenty year: before its final adoption should be ratified by’ a majority of those aifected. The report of the Secretary of the Interior, herewith attached, gives much inter- esting statistical information, which I abstain from giving 9u abstract of, but refer you to the report s a SOUTHERN PENSIONERS OF 1812, The act of Congress providing the oath which pensioners must subscribe belore drawing their pensions cuts off from toils bounty a few survivors of the war of 1812 residing in the Southern States. I recommend the restoration of tnis bounty to ail such. The number of persons whgse names woula thus be restored to the list of pensioners is not large. They are all old anger who could have taken no as the sebe ve sud the services for which were awarded pensions were in de: the whole country. sera ag THE CENTENNIAL CELEBRATION, The report of the Commissioner of Agriculture, herewith presented, contains suggestions of much interest tothe general public, and refers to the approach! Centennial and the part his depart- ment 1s ready to take in it. I feel that the nation at large is interested in having this expositions success, and commend to Congress such action as will secure @ greater general interest in tt, Al- ready many foreign nations have signified their intention to be represented at it, and it may be enecien that every olvilized nation will be repre- e1 THE CIVIL SERVICE RULES. The rules adopted to improve the civil sere vice of the government have been adhered to as closely a8 has been practicable with the Opposition with which they meet. The effect, I beileve, has been beneficial on tue whole, and has tended to the elevation of the service ; but i¢ is un- practicable to maintain them without direct and Positive support of Congress. Generally the sup- Port which this reform receives is from those who give it their support oniy to find fault when the rules are apparently departed from. Removals trom office without preferring chargea against the parties removed are frequently cited 3 departures from the rules adopted, and the re« tention of those against whom charges are made by irresponsible persons, and without goog | ad is alao often condemned as a violation ee THE SYSTEM TO BE ABANDONED, Under these circumstances, therefore, I ane nounce that if Congress adjourns without pos- tive legislation on the subject of civil service reform, Will regard such action a3 & disapproval of the system, and will abandon It, except so far as to require examination for certain appointees to determine their fitness. Competitive examinations will be abandoned. The gentlemen who have given their services without compensation as members of the Board to devise rules and regulations for the government of the Civil service of the country have shown much zeal and earnestness in their work, and to them, as well as to myself, it will be a suurce of morufication if it is to be thrown away. But I repeat that it is impossible to carry this system to @ successiul issue without general approval aod assistance and positive law to support i EMPLOYMENT OF LABOR, Thave stated that three elements of presperiiy to the nation—capital, labor, skilled and uns: 5 and products of the soti—still remain with as. To direct the employment of these is a problem deserving the most serious attention of Congress, if employment can be given to all labor offering itself prosperity necessarily follows. I have ex- Pressed the opinion, and repeat it, that tue first Tequisite is the substitution of und currency in place of one of @ fluctuating value. This se- | cured, there are many interests that might he fos- tered to the great profit of both labor and capital. pk to induce capital to employ lavor is the ques jon. OHEAP TRANSPORTATION. The subject of cheap transportation has om cupied the attention of Cougress. Much new light on this question will, wituout doubt, be given by the committee appointed by the last Congress ta investigate and report upon this subject. A re~ vival of shipbuilding, aod particularly of iron steamship building is of vast importance to our national prosperity. MSI ig now paying over $100,000,000 per annum for freights and pass. age on foreign ships, to be carried abroad and expended in the employment and support. of other Peoples, beyond @ fair percentage of what should go to foreign vessels, estimating on the tonnage and travel of each respectively. It is to be regretted that this disparity in the carrying trade exists, and to correct itl would be willin to see a great departure from the usual course ol government in supporting what might usually be termed private enterprise. I would no! ggest as @ Temedy direct subsidy to American steamship lines, but I would suggest the atrect offer of ample compensation ior carrying the mails between At- lantic seaboard cities and the continent on Amer- ican owned and American built steamers, and would extend this liberality to vessels carrying the mails to the South American States and tu Central America and Mexico and would pursue the same policy irom our Pacific seaports to foreigm seaports on the Pacific. Is mignt be demanded that vessels bulltior this service should come up to a standard fixeé by legislation in the tonnage, speed and all othe: qualities, 1ooking to the possi- bility o1 the governnent requiring them at some time for war purposes, The right also of taking possession of them iu such emergency should pe guarded, 1 offer theseyuggestions, believing them. worthy of consideration in a!l seriousness, affect- ing ali sections and all interests alike. It anything better cap be done to direct the country into a course of general prosperry no one wi.l be more ready than [ to second the ylan. THE DISTRICT OF COLUMBIA. Forwarded herewith wili be found the reportot the Coumissioners appointed ander an act of Con- approved June 20, hiz4, to wind up the affairs of the District goverament, It will be seen irom the report that the ne\aebt of the Dis- trict of Columbia, less securitie: on hand and available, is:—Bonded dept issied prior to July 1, 1874, $8,883,946 43; 8.65 sonas, act of Congress June 20, 1874, $2,088,168 73: certificates of the Bosra of Audit, $4,770,53945, Total, $1 667 61. Less special improvenmnt assess- ments chargeable to private property ‘n excess or ny demands against such asseisments, $1,614,054 37; less ~~ Chesapeake = and = Uhio Canal bonds, $75,000, and Washingtoh and Aiexandria Ratlroad bonds, $69,000; i the hands of the Sinking Fund, $1,448,053 37, Jeaving the actual debt, less said agg- sets, $13,994,613 24 In addition to this there are cisims pretetred against the government of the District, amounting, in the estimated aggregate Teported by the Board of Audit, to $3,147,757 48, of Which the greater part will probably be rejected. This sum can with no more propriety be included in the debt account of the District government than can the thousands of cimims against the geueral government be ine cluded a8 @ portion of tue national debt, but the aggregate sum thus stated inciudes something more than the funded debt chargeable exclustvely to the District of Columbia, The act of Seek O1 June 28, 1874, contemplates an apportionment between the United States government and the District of Columbia in respect of the payment of the principal and interest of tae 3,65 bonds, There- fore, in bate eat 4 with precision in the bonded debt of the district, the aggregate sums Tespects 3.65 bonds now issued, the out-standing certificates of the Board of Audit and the unadjusted claims pending before that Board should be reduced to the extent of the amount to be apportioned to the United States y«overnment. In the matter indicated in the act of Congress of June 20, 1874, lL especially invite yoar attention to the recom- mendations of the Commissioners of the Sinking Fund relative to the ambiguity of the acto: June 20, 1874, the Interest on the Pistrict bonds and the consolidation of the indebtedness of tne Distric 1 feel much indebted to the gentlemen who con- sented to leave their private affairs and come from ® distance to attend to the busi- ness of this District, and for the able and satisfactory manner in which it has been conducted. I am sure their services will be equally appreciated by the entire country. It will ve seen from the accompanying full report of the Board o! Health tnat toe sanitary condition of the District is very satistactory. In my opinion regarded as the grounds of the national capital, in which the en- tire people are inter id, 1 do not aliude to this to urge generous appropriations to the District but to draw the attention of Congress in iraming & law for the government of the District to the mags nificent scale on which the city was planned by the tounders of the government, the manner im which, Jor ornamental purposes, the reservations, streets and avenues were laid out and the propor= tlon of the property actually possessed by the general government, 1 think the proportion of the expenses of the government and improve- ments to be borne by the general government, the cities of Washington and Georgetown and the county sbould be caretully and equitably defined, THE MOUTH OF THE MISSISSIPPI. In accordance with section 3, act approved June 23, 1874, I appointed a board to make @ survey the mouth vi the Mississippi River with a view to determine the best method of obtaining and main« taining @ depth of water sufficient, and in ag- cordance with an act to provide jor the appointment of a commission of ongineera to investigate and report a permanent plat for thé excavation o: the alluvial basin of the Mississippi Kiver, subject to tnundationy | fps omted # commission of gineors, Heiner oard has yet completed its labors. Whet their & upon and signe by the delegates of the countries represented, subject to the f@nd wel! intentioned (oreigner woo comes ia @pprovai of the prover authorities of those coun- Congress. THE INTERIOR DREPARTMENT, ‘The attention of Congress ia tnviged to the re- reports are received they q@ill be forwarded bo Congress without delay. U. By GHANT, EXECUTIVE MANSION. Dao, 7. 1674