Omaha Daily Bee Newspaper, December 7, 1881, Page 1

A et CHESTER'S CHARCE. Yo the Wisdom of tha Country in Coagress Assembled, The Relations the United States Bustainas T wards Foreign Governments, The Splandid Financial Exhibit Made by ths Treasury Department, Repeal Recrmm>3nded of the Law Rogu ating the Coin- age of Silyer Money. He Also Recommeds the Abo- lition of Certain I.ternal Ravenue Taxation. And Adrvises Iocrease of the Army to a Maximum of Thirty Thousand. Attention Paid to the Nacessi- ty for Inoreased and Effec- tive Naval Pow.r, Bxhaustive Review of the In- dian Problem and « Reme- . dy Suggested. A Moeasure Protosed Whereby the Mormon Iniquity May be Run to Earth. The Problem of Civil Servioce Reform the Subj-ct of Lengthy Review. The Electoral Vote and Prosiden. tial “1noapaoity.” INTRODUCTORY- CONGRATULATION. WasaiNaToN, December 7.—To the senate and houss of representatives of the United States : An appylling calamity has befallon the American people since their chosen Topresentatives last met in the halls where you are now assembled. We might also recall with un- altered content the continued prosperity with which throughout the ear the nation has been blessed. Its ests have been plenteous; its va- rious industries have thriven; the health of its people has been . preserved; it has main- tained with foreign governments the undisturbed relations of amity and peace. For these manifestations of His favor we owe to Him who holds our destiny in His hands the tribute of our grateful devotions. DEPARTMENT OF STATE. THE FORTUNE BAY AWARD, Bave for the correspondence to which I shall hereafter refor to in re- Iation to the proposed canal across the Isthmus of Panama, little has occurred worth mention in the diplomatic rela- tions of the couutries. Kurly in the yeur the Fortune Bay claims were sat isfactorily settled by the British gov- ernment paying in the sum of £15,000, most of which has already beon distri- buted. Aa the terms of the settle- ment, including compensation for in- juries suffered by our fishermen at Aspen Buy, there has been retuin from the gross award a sum which deemed aduequate for those claims, THE AUSTRALIAN EXHIBITIONS The participation of Americans in the exhibitions at Melbourne and Syd- ney will be approvingly mentioned in the reports of the two exhibitions soon to bu presented to Congress. They will disclose the readiness of our coun- trymen to make a successful compoti- tivn in those ficlds of enterprise. INTERNATIONAL COPYRIGHT, Negotiations for an international copyright convention are in hopeful progress. THE DOMINION BORDER, The surrender of Sitting Bull and is forces upon the Canada frontier has allayed all appreliension, although bodies of hostile Indiana still cross the border in quest of sustenance. Upon this subject a correspondence has been opcued which promises an ade- quate understanding. Our troops havo orders to avoid, meanwhile, all collisions with alien Indians, THE YORKTOWN VISITORS, The presence at the Yorktown cele- bration of representatives of the French republic and descendents of Lafayette and of his gallant com- patriots who were our allios in the revolution, has served to strength n the apirit of good will which has always existed betweon the two na- tions, You will be furnished with the proceedings of THE BI-METALLIC CONFERENCE held during the summor at the aty of Paris, No accord was reached, but a valuable interchange of views was had, aud the conterence will next year bo renewed. THE FLECTVICAL CONGRESS, At the elsetvical exhibition and con- gress also held at Paris, this country was creditably represent, by emi- nent specialiats, who in the absence of &n appropriation gonoerally lent their efficiont aid at the instance of the state departmen While our exhibi- tion in this alm st distinctively Ameri can field of achievements huave won geveral awards, I recommend that congress provide for the repayment of the personal cxpenses incurred i the Germany have arisen during the year, | and the causes of complaint, especially in Alsace and Loraine, have practic- ally ceased throuvh the liberal action of the imperial government in accept ing our often expressed views on the subject. The application of the treaty of 1868 to the lately acquired Rhein- ish provinces has roceived very earn est attention, and definite and lasting agreoment on this point is confidently expected. The participation of the deacendants of Baron Von Steuben in the Yorktown festivitios and their subsequent reception by their Ameri can amnsmen strikingly evinced the ties of the good will which unmite the German people and our own, SPAIN AND AMERICAN SHIPPING, Our intercourse with Spain has been friendly, An agreement, con cluded in February last, fixes o term for the labors for the Spanish and American claims commisson, The Spanish government has been request- od to pay the late awards of the com- mission, aud will, it is believed, ac- cede to the request as promptly and courteously as on former occasions. By recent legislation onerous fines have been impesed upon American shipping in 8;anish and colonial ports for slight irregularitios in manifosts, One case of hardship is specially worthy of attention. The bark Ma- souic, bound for Japan, entered Man- illa in distress and is there sought to be confiseated under the Spanish reve- nue laws for an alleged shortage in her traus-shipped cargo. Though ef- forts for her reliof hvae thus far proved unavailing, it is expected that the whole will be adjusted m afriend- ly spirit, RUSSIAN RBLATIONS, The scnate resolution of condolence on the assassination ot Czar Alexan- der II. was appropriately communi- cated to the Russian government, which in tarn has expressed its sym- pathy in our late national bereave- ment. It desirable that our cordial relations wWith Russia should be strengthened by proper engagements, assuring to penceablo Americans who visit the empire the consideration which is due to them as citizens of a friendly state. This is especially needful with respect to American Is raclites whose classification with the natiye Hebrews has evoked energetic remonstrances from this government. ITALIAN CONRULAR SERVICE. Consular agreement with Ttaly has been sanctioned and proclsimed, which puts at rest couflicts of juris- diction in the case of crime on ship- board, Several important international conferences have been held in Italy during the year. At the geographical congres of Venice, the Bouiface con gress of Milan,and the Nice congress of Turin, this country was represented by delegates from branches of the public service or by private citizens duly accredited in au honorary ca- pacity. It is hoped that congress will give such prominence to the results of their patriotic action as they may seem to doserve, THE DUTCH COLONIES, The abolition of all discriminating duties against the Dutch colonial pro- ductions of -the Dutch East Indies, as are_imported hither from the Hol- lands, have been already considered by congress. I trust that at the pres- sent session the matter may be fa- vorably concluded. MISSION ARIES IN TURKEY, e destruction to life and proper- ty in many parts of Turkey has given rise t) correspondence with the porte, looking particularly to the better pro- tection of American missionaries in tho empire. The condemned mur- derer of the eminent missiona Justink W, Parsons, has not yet heen exeeutod, although this government has repeatedly demanded 1t SWISS CRIMINAL EMIGRATION, The Kwiss government has wolicited the good offices of our diplo- watic and consular ayents for the pro- tection of its citizens in countrie where it itself is not represented This request has, within proper lim- its,been granted. Our agents have been instructed to protest against the con- duct of the authorities of certain communes in permitting the emi- gration to this country of criminals and other objectionablo porsons Several such peisons, through the corporation of the cimmissioner of emigration at New York, have been sent back on the steamers which brought them. A continuation of this course may prove a more effectual rom- edy than diplomatic remonstance, KOUMANIA AND SERVIA, Treaties of commerce and naviga- tion for tho regulation of consulur rivileges, have been concluded with Roumania and Servia since their ad- mission iuto the family of the Euro- pean states, OUR RELATIONS WITH MEXICO, As'is natural with contiguous states having like institutions and like aims of advancement and development, the frlendship of the Uhited States and Mexico FIM been constantly main- tained, The government has lost no occasion of encouraging the Mexican government to a beneficial realization of the mutual advantages which will rosult from more intimate commercial intercourse, and from the opening of tho rich interior of Mexico to railway enterprise. 1 deem it important that means be provided to restrain the lawlessness unfortunately 8o common on the frontier, and to suppress the forays of the rescrvation Indians on cither side of the Rio Graude, CENTRAL AMERICAN BTATES, The neighboring states of Central | America have prescrved internal peace | and their outward relations toward us have boen those of intimate friend- ship. There are encouraging signs of their growing dispogition to subordi nate their local interests to those | which are common to them by roason of their geographical relations, Guate- mala and Mexico has atforded this public interest by the honorary com- missionera and delezates. AMERBICAN UITIZENS A“WJ.AXI, No now questions respeeting the .status of our naturalized citizens in government an apportunity to exeroise its good offices for preventing a rup turo between these states aud for pro- | vemsels of the Unit OMAHA, WEDNE w of our relations of amity with both countries our friondly counsel will prevail. The Costa Rican government lately formed an engagement with Columbia for settling by arbitration the boun- dary question between those countrios, providing that the post of arbitrant should be offered successively to the king of the Belgians, king of Spain and the president of the Argentine Confederation. The king of the Bel gians has declined to act, but T am not as yet advised of the action of the king of Spain. As we have certain interests in tho disputed territory which are protected by our treaty en- gagement with ene of the parties, it is important that the arbitration should not without our consent affect our rights, and this government has ac cordingly thought proper to make its vicws kiown to the parties to the agreemont as well as to intimate them to the Belgian government. THE PANAMA CANAL. The questions growing out of the proposed _interoceanic water-way across the Isthmus of Panama are of grave national importance. This gov- ernmont has not oeen unmindful of the solemn obligations imposed upon it by its compact of 1846 with Colum- bis as tho independont and sovereign mistress «f the territory crossed by the proposed canal, and has sought to ron- der them effective by fresh engage: ments with the Columbian republic looking to their practical exocution, The nggotiations to this end, after they md reached what ap- peared to be a mutually satisfactory solution hers, were met in Columbia by a disavowad of the powers which its enyoy hed sssumed aud by a pro- posal for renewed wegetiations on a tortified basis, Meanwhile this gov- ernment learned that Columbia had proposed to the European powers to Jjoin in a guarantee of the neutrality of the proposed Panama canal, a guarautee which would be in direct contravention of our obligation as the sole guarantor of the integrity of Columbia territory and of the neu- trality of the canal itself. My la- mented predecesor felt it his duty to place beforo the European powers the reasons which made the prior guaran- tee of the United States indispensible and for which the interjection of any foreign guarantee might be re- garded as a superfluous and un- friendly act. Foreseeing the prob- able reliance of the British government on the provisions of the Clayton-Bulwer treaty of 1850, as af- fording room for a shure in the guar- antees which the United States cove- nanted with Columbia four years be- fore, 1 have not hesitated to supple- ment the action of my predecessor by proposing 1o her majesty’s govern: ment the moditication of that instru- ment and the abrogation of such clausos thereof as do not comport with the oblizations of the United States toward Columbia, or with the vital needs of the two friendly parties to the compact. THE SOUTH AMVRICAN DIFFICULTY, The government sees with great concern the continuauces of the hos- tile relations between Chili, Bolivia and Peru. An early peace between these republics is much to be desired, not enly that they may themselves be spared further misery aud bloodshed, but because their continued antagon- ism threatens consequences which are, in my opinion, dangerous to the interests of republican government on this continent, and calculated to de- stroy the best clements of our free and peaceful ci on. A in the present excited condition of popular feeling in these countries, there haye beon serious misapprehen sions of the positim of the Unite States, and as separate duiplomatic in- tercourse with each thro gh independ- ent munistors is som:times subject (owing to the want of prompt recipro- cal communication) to temporary mis understanding, I have deemed it ju- dicious at tho present time to send a special eavoy, accreditod to all and oach of them, and furnished with gan- eral mstructions, which will, T trust, enable him to bring these powers into fricndly relations. TIE VEN ELA DEBT, The government of Venezuela main- tains its attitude of warm frieudship, and coutinues with grest regularity its payment of the monthly quota of the diplomatic debt. Without sug gesting the direction in which con- yross should act, 1 ask attention to the pending questions affecting the distribution of tho sums thus far re- ceived. The relations between Vone- zuela and France, growing out of the same dobt, have been, for some time past, in an unsatisfactory state, and this government, as the neighbor and that of the largest of creditors of Venezuela, has interposed itself with the t'rench government with the view ot producing a friendly and honorable adjustment. BRAZILIAN INTERENTH, I regret that the commercial interests botween the United States and Brazil, from which great ad- vantagos wero hoped a year ago, have suffored from the withdrawal of the American lines of communication be- twoen Brazilian ports and our own. NATIONAL INTERVENTION, Thoeugh the efforts ot our munister resident at Buenos Ayres and the United States minister at Santiago, a trepty has been concluded betwoen the Argentine Republic and Chili, disposing of the longgpending Pata: gonian boundary quostion. It is & matter of congratulation that our government has boon offered the op- portunity of succe-fully exerting its good influences for the prevention of disugreements between the republics of the American continent, THE ASIATIC TREATIES, The clauses of the treaties which forbid the purticipation of citizens or 1 Brates in the opium trade will doubtless receive your approval, and they will attest the sincere nterest which our people and government manifest in the commend- able efforts of the Chinese government to put & stop to this demorslizing and distructive traffic In relation, both curing & peaceful solution of the ques- sion, I cherish & strong bope that in to China and Japan, some changes nre deatrable in our presant mystem of ) \ SDAY N1 consular jurisdietion. T hopeat rome future time to lay before you u scheme for its improvoment in the entire east, CHINESR IMMIGRATION 1 am glad to inform you that the treaties lately negotiated with (‘hina have been duly ratified on both sides and the exchange made at Peking Logislation is necessary to carry it provision into effect. ~ The prompt apirit with which the Chineso govern ment, at the request of the United States, conceded the modification of existing treaties, sheuld secure caro- ful rogard for the interest and suscop tibilities of that government in the enactment of any laws relating to Chinese immigration. JAPAN. The intimacy betweon our country and Japan, the most advanced of the oastern nations, has continued to he cordial. T am advised that the em peror contemplates the establishment of a constitutional government, and that he has already summoncd o par linmentary congress for the purpose of effecting the change. Sach o ro- markablo step toward completo as similation with the westorn syatem cannot fail to bring Japan into closer and more benefisial relationship with ourselves, CONNULAR JURISDICTION As the ohief Pagific power, & quos- tion has arisen in relation to the cx ercise 1n that country of tho judiciil functions conferred upon our minis- tors and consuls, The indictment, trial and conviction in the consular court at Yokahama of John Ross, a merchant seaman on board an Ameri- can veasel, have mado it necessary for the goverument to institute a careful examination into the nature and meth- ods of this Jurisdietion. It appeared that Ross was 1y shipped under the tlag of éniwd States but was , bicth » Brit- ish subject. predecessor felt it his duty to magmtain the position, that during his service as a regularly seaman on board an American wer- chant vessel, Ross was subject to the laws of that service, and to the jml-indictiun of the United States con- sul, ? THAT OLD INDEMNITY FUNL, I renew the recommendation which has horetofore been urged by the ex- ecutive, after the deduction of such amount (as ¥may be found due to American citizens, the balance of the indemmty funds heretofore obtained from China and Japan, and which are now in the hands of the state depart- ment. be returned to the govern- ments of those countries. THE SANDWICH TRLANDS. The king of the Hawaii, in the course of his homeward return, after a journey around the world, has lately virited this country. While our re- lations with that k‘zngdom are friend- | their pry G, DE JEMBER 7, p act of congress, approved M rch 3, 1879, Tis aphere of duty was en larged by the act of June 2d in the same year. By the last named act the board was required to inati tute such measures as might be deom. ed necossary for preventiog the intro duction of contagious or infoctious disenses from foreign countries into the United States or from one state into anothe The execution of the rules and regulations propared by tho bonrd ana approved by my prodocess or has done much to arrest the prog of epidomic d seases and has thus rondered substantial service to the na- tion. The interuational sauitary co ference to which T have referred adopt ed a form of a bill of health te bo used by all vesscls seeking to enter the ports of the countries participating i it deliberations. This — form has since been prescribed by the national board of health and incorporated with its rules and rezu'ations which have been ap- proved by m Pho health of the peoplo is of supreme importance, All measures looking to tection aguingt the spread of contagious diseases and the nerease of our sanitary knowledge for such purposes, deserve the attention of congress, TREANURY DEPARTMENT. PINANCIAL BXHIDIT, of the scerotary of the troasury represents in detail a highly tory exhibit of the state of tho finances and the condition of the vas ous branches of the public & rvice ad- ministered by that department. The ordinary resources from all sources for the fiseal year ending June 30, 1881, were as follows: From customs ternal reveuue m public iands ¥ Foom tax on ci culation and deposits of national 2108 banks . e From repavment of intes est by the Pacinic rail Wy sompanies s, From sinktug fund for the c railrond compa- nies ... e . 805,180.54 From customs feow, fines, penalties, ete. ..., .., 3 From fees, consular lo tors patent ndland« From proceeds of sales of government ¢ roperty. F om protits on coinage From revenue of tue Dis- trict of Colt mbia. From misc llaneous sour- 3,116,118.72 §10,883,80 6,206 880, Total ordinary receipts, & 361,752,207 00 The ordinary expenditures for the samo period w re as follows: Ko civil expenses SR 17.941177 19 For foreign intercourse. ... 11,093 03, For pens s F ¢ the wil tary establivh- ment, including river and harbor improvements and orsenaly............ For the naval establish- 40,466,460 55 ly, this government has viewed with concern the efforts to seck replenish- ment of the diminishing population of the 1eland from outlawed sources o a degree which may impair the native’ sovereigntyandindependence, in which tho United StateZwps among the firat to testifiy a lively intereut. MISCELLANEOUS FORBIGN KELATION Relations ot unimpeached amity have been maintained throughout the year with the respective governments of Austria, Hungury, Bolgium, Den- mark, Hayti, Paragusy and Uruguny, Portugal, and Sweden and Norway, and this may also be said of Groeece and Ecuador, although our relations with theso states have for some years been severed by the withdrawal of ap- propriations for diplomatic represe: - tatives at Athens and Quito. It seems oxpedient to restore these missions, even on a reduced s:ule, and T decidedly recommend such a courso with respect to Keuador, which is likely, within the near fu- ture, to play an important part among the nations of the South Pacific, THE GENEVA CONVENTION, At the last extra session attention was called to the text of tho Geneva convention for the relief of tho wound- edin war. 1 trust this action fo s such interest in tho subject as will result in the adhesion of ‘the ates to that humane and commendable engagemeont, RULES FOR OCEAN TRAVEL, T invite your attention to the pro- priety of adopting the new code of in- ternational rules for the prevention of cdllisions on the high seas and of ¢ m- forming domestic legislation of the United States thereto, so that no con- fusion may arise frou the applica‘ion of conflicting vossels of different nationalitics meeting in tidal waters, These international rules differ but slightly from our own. They have been adopted by the navy department for the government of the war ships of the Umted Statos on the high seus and in foreign waters, and through the uction of the state department in dis- seminating the rulos and in acquaint- ing the shipmastersin_the opiion of ntorming to them without the juris- ment. including v. swols, miwhire y and imp o, ments at navy yards. For miscellaneous expendi- tures, includiug public Vuildinvs, light houses and colle tingthe revenue Yor expenditures on ac- count of the D strict of Columbia . For interest o For premium on bouds purchased = Noimye 15,681,671 66 41,887,280 b1 8,58,9 2 03 pu 52,508,741 1+ 24878 Total expenditures. ... 260,712,887 50 This left a surplus of rovenue of £100.069,404.98, which was applied as follow To the redeption of bonds v the kinking fund.. .8 74,371,200 00 Fractional carrevey for the sinking fund.... : Loan of February, 1561 48 of ING4 . s of 1862 W of 186 5.20's of 186 Consols £ 1865 Consols of 1867 Conos f 1863 i Lown indemnity s ook, .. . Old demand, comp und iu 1erest and other notes The iner.aso of cash in the Tre sury ks Totl ...£100,060,104 9% The requiremonts of tho sinking fund for the year amounted to $00,- 786,064.02, and which sum includoes a balance of £49,817,125 78 not provid- ed for during the previous fiscal year, The sum of $74 480,201 06 was ap plied to this fund which left a deficit of §1¢ 6 873 40, Tho i of the revenues for 1881 over those of the previous year was 820 35 It is estimated that the r ing tho present fiscal your will £400,000,000, and the expenditures £270,000,000, leaving a surplus of £130,000 000 applicable to tho sinking fund and the redemption of the pub lic debt. RETIREMENT OF SILVER CERTIFICATEN, I approve the recommeadations of the secretary of the treasury that provision bLe made for the early retiement of silver cer- titicates and that the act requiring their issuo bo ropealed. Thoy were iwsued in pursuance of the policy of 7,100 00 10,900 (0 dictional waters of the United Siates, They are now very gonerally known and obeyed. FOREIGN LABOE AND TRADK NTATISTICS, The state department still continues to publish to the country the trade and manufacturing reports received froni its ofticers abroud. The success of tlus course warrants its continu- ance, and such appropriation as may be required to meet the rapidly in creasing demand for thoso publica tions. With special reference to the Atlanta cotton exposition, the Octo ner number of the reports was devoted to a valuable collection of papers on the cotton goods trade of the world. THE INTEKNATIONAL HANITARY CON- FERENC for which in 1879 congress made pro vision, assembled in this city early in January last, and its sessions were prolonged until March. Although it reached no apocific conclusion affecting the future action of the participant powers, the interchange of views proved to be most valuable, The full protocols of the session have already been presented to the state. As per- tineut to this general subject, 1 call your attention to the operations of the national baard of health astahlighed the government to muintain. silver at or near the gold standard, and were accordingly made receivable for all customs, tuxes and public dues. About $66,000,000 of them are now outstand- g, ey formed an unnecessary addition to the piper currency, a in pursuance of the law, | 076.02, au increase of 811,637 611 42 1881 forbidden by law to retiro their currency, excopt upon reasonable no: tice of their intention 8o to do. Such legislation would seem to be justified by the recont action of certain banks on the occasion reforred in the secre. tary's roport. FRACTIONAL CURRRNCY, There are fifteen millions of frac- tional _currency atill outstanding Only about £80,000 has been redeem- ed in the past year. The suggestion that this amount may properly be dropped from future statements of the public debt seems worthy of approval; 80, also, does the suegestion of the sucrotary, as to the advi-ability of re- lieving the calendar of the United Stal courts in the southern district of New York by the transfer to an- other tribunal of the numerous suits lrl‘u-rn pending againat the collector ho REVENUE FROM CUSTOMS for tho past fiscal year was 190,150, rthat of the preceding year; Q138,008,662 30 of this amount was collected at tho port of New York, leaving' 850,251,113 63 as the amount ccllected at all the other ports of the country., Of this sum, $47,977,137 63 was collec! on sugar and molasses, §27 on wool and its manufactures, §21,- 462,034 on iron and steel and manu factures thereof, $19,038,666.81 on manafactures of sik, §10,825,1156 21 n - manufactures of cotton, and £0,400,643.04 on wines and spirits; making the total revenue from those sources of 8133,058,720.81. Thy ex- ponsus of colloction for the past year wera 86,419, 846.20, an_incroase over the proceding year of $387,410.04 Notwithstanding the increase in the revonue from customs over tho pro- coding year, tho gross value of the imports, including free woods, decreased over §25,000,- 000. The marked decrease was in the value of unmanufactured wool §14,- 023,682 and in that of scrap and pig iron 812,810,671, IMPORTS AND EXPORTS. The value of tho importa of sugar on the other hand showed an incrense of 87,457,474, of steel rails 4,340,- 621, of barloy $2,164,204, and of steel in bars, ingots, etc., $620,046. Contrasted with the imports the ex- ports were as follvws: Domestic mer- chandine, §90,837,250.47; foreign mer- chandise,$184,613 99; total, §002 377, 946; imports of morchandise, 8642, 664,628; excess of exports over im- ports of merchandise, &59,712,718; ageregate of exports and imports, 816,460,419 74, Compared with the 2 [ provious year thero was an increase of $06,738,688 in the value of the ex ports of merchandiso, and a decrease of §20,200,118 1 the value of im- ports. The annual average ot in- crease of imports of mercliandise over exports thereof for the ten years previous to June 30, 1878, was $104,806,922, but for the laat six years there has been an excess of exports over imports of merchandise amounting to $1,180,- 608,103, an annual'average of $196,. 778,017. The specie value of the ex- ports of domestic merchandise was $376,616.473 in 1870, and $883,925,- 947 in 1871, an increase of §307,309,- 474, or 1 3.6 per cont. ‘The value of the imports was £135,958,408 in 1870 and §642,604,628 in 188l—an in- croase of $206,706,220, or 47 per cent. During each year from 1862 to 1870 inclusive, theexports of specioexceeded the imports. 'T'he laruest excess of such exports over imports was renched during the year 1864, when it amount- ed to 802,204,929, but during the year ending June 30th, 1880, the im- ports of coin and bullion exceeded tho exports by $75,801391, and during the lust firenl yoar tho oxcess of im- ports over exports was 891,168,650, THE REFUNDING OPERATIONS, Tn the last aunual report of the sec retary of the treasury, the attention of congress was called to tho fact that £469,651,060 in b per centum bonds and §203,673, 60 in 6 por centumn bonds would beeome redeemuble dur- ing tho year, and congress was asked to authorize the refunding of these bonds at a lower rate of interost. The bill for such refunding having failed to becomo a law, the secretary of the treasury, in April last, notifivd the holders of the £195,690,400 of 6 I sturn bonds then outstanding that the bonds would be paid at par on the 1st day of July following, or thet they might be “‘continued” at the pleasure of the government to bear intereet at the rate of pe centum per annum, Under this no- tico 8178,006,150 of the 6 per contum bonds wero continued at the lower rate, and $17, ,200 were redeomed, 1l the month of May, u like notice was given respocting the redemption or continuance of the $430,841,350 of 5 per centum bonds then outstanding, id of theso §401,604,900 were con- tinued at 3} per centum per annum and $38,1336,460 redeemed. BOND REDEMPTION, The 6 per centum bonds of the luan of February 8, 1861, and of the Ore. gon war debt, amounting together to $14,125,800, having matured during tho yoar, the secretary of the treasury wive notice of his intention to redeem tho same and such as_have boen pre- sonted have been pmd from the sur- P suflicient smount of which may bo readily supplicd by the national banks. AGE OF SILVER, In accordance with the act of Fob- ruary 28th, 78, tho treasury de purtmont has monthly caused at least $10,000,000 in value of silves bullion to be coined into standard silver dol- lars. Oue hundred and two millions of these dollars have been stoadily coined, only about thirty-four millions are in circulation, LEGISLATION KECOMMENDED, For the scasons which he specifies, I concur in the seeretary’s recolamen- dation that the provision requiring the coinage of a fixed amount each month bo ropealed, aud that hereaf- ter only 80 much bo coined as shall be necessary to supply the demand. The secrotary advisos that the issue of gold certificates should not for the present bo rosumed, and suggests that the national banks may pronorly bel plus revenuo. There have also been redeemed at par 816,179,100 of the 34 per contum *continued” bonds, ik g » total of bonds redeemed, or which bave ceased to bear interost during the year of §121,960,600, The veduction of the annualintcrest on the public debt through theso tiansuctions is an follows: By reduction of interest to 3} per cent., 810,473.952.27; hy redemption of bonds, $6 total, $10,826,202.27, centum bonds, being payable plessure of the government, are able for the investmont of surplus rev enue without the paymemt of prein ium, Unless theso bonds can he funded at @ much lower rate of inter- ost than they now bear, I agreo with past year s to yield by taxation a large surplus of income to the govern- ment. 1f the revenue laws remain unchanged, this surplus must year Ly year increase, on account of the reduction of the public debt and its burden of intorest, and because of the rapid increase of population. ¥ 1860, just prior to the inatitution of our internal revenuo system, our pop- ulation but slightly exceeded 30,000,- 000 By the census of 1880, it is found to exceed 50,000,000 1t is es- timated that even if the annual re- coipts and expenditures should con- tinue as at present, the entire debt weuld bo paid in ton years, In view, however, of the heavy load of taxa- tion which our poople have already borne, we may well consider whethor it is not the part of wisdom to reduoce the revenues, even if we delay a lit tle paymeont of the debt. INTERNAL REVENUE TAXATION, Tt scoms to me that the time has ar- rived when tho people may justly de- nand some relief from their present onormous burden, and that by due cconomy in the various branches of the public service this may readily be afforded. T therefore concur with the secrctary in recommending the aboli- tion of all internal revenue taxes ex- cept thuse upon tobuceos in its various forms and n[mu distilled and firmented liquers, and except also the special tax upon thoe manufacturers of, and denlers in such artcles. The inten- tion of the latter tax is desirable as aflording the officers of the goveen- ment @ proper supervision of these articles for the prevention of fraud. 1 agroo with the seretary of the treas- ury that the law imposing a stamp tax on ma ches, proprictory articles, vlaying cards, checks and drafts, may with proprioty be repealed, and the law also by which bauks and bankers are assessod upon the capital and de- posits. There scems to be a general sentiment in favor of this course, In the present condition of our revenues, the tax upon deposita is especially un- just. It was never imposed iu ,this oountry until it was required by the necesmtios of war, and was never exacted, I beliove, even in its groatest. exigencies, NATIONAL BANK CIRCULATION. Bankera are required to secure their circulation by pledging with the treasurer of the Vuited States bonds of the general goverument. The in- terest upon those bonds, which at the time when the tax was imposed was 9 por cent. is now 1n most instances 3} per cent, and besides the entire circulation was originally limited by law and no incresse was allowable. When the existing banks had prac- tically 8 monopoly of the business, there was force in the suggestion that for the franchise to the favored granteos the government might very {:mpurly exact & tax on circulation, ut for years the system has been froe and the amount of circulation regu- lated by the public domand. The re- tention of this tax has been suggested a8 a means of reimbursing the govern- ment for the dxpense of printing and furnishing the circulating*'notes. If the tax should be repealed it would certainly seem proper to require the national banks to pay the amount of such expenso to the comptroller of the currency. NO REDUCTION ON TOBACCO OR LIQUOK. It is, perhaps, doubtful whether the immediate reduction of the rate of taxation upon liquors and tobacco is advisable, especislly in view of the drain_upon’ the treasury which must attend the payment of arrears of pen- sions. A comparison, however, of the amount of taxes collected under the varying rulcs of taxation which have at different times prevailed, sug- gests the intimation that some reduc tion may soon be mace without material diminution of the revenue. TIE TARLFF LAWY also need revision, but that a due ro- gard mav be paid to the couflicting intorosts of our citizens, important changes should be made with caution. If a careful revision cannot be made at this session, & commussion, such as as lately a proved by the senate, and is now recommended by the s retary of tho treasury, would doubt- lows lighten tho labors of congress whenever this subject shall be brought to its consideration. WARIDEPARTMENT. INCREABE THE ARMY, Tho accompanying report cf the necrotary of war will ke kuown the operations of the department for the year. He suggests mousures for pro- tho secrotary of the treasury, that no legislation respecting them is desir- able. It is & mattor of congratula- téon that the business of the country baw haen 4a neasnerss during the moting the efliciency of the army, without adding to the number of its ofticers, and recommends the legisla- tion necessary to increase the num- ber of enlisted men to make 30,000 the maximum allowed by law. This he deems necessary to maintain quiet- ness on our ever-shifting frontier, to preserve peace, and suppress disorder and marauding in nev settlements, to protect settlers and their property against Indians, and Indi against the encroachments of intruders, and to ¢nable peaceful immigrants to es- tablish howes in tho most remote poarts of our country. The army is now necessarily scattered over such a vast extent of territory, that v hen- over an outbreak occurs, reinforce- ments must be hurried from many quartors over great distances, and always at heavy cost for m....r.ru- tion of men, horses, wagons and sup- plies, T concur in the recommenda- tion of the secretary for increasing tho army to the strength of 30,000 enlisted men. FRONTIER WORK, Tt appears by the secretary’s report that in the absence of disturbances on the fronticr, the troops have been ao- tively employed in collecting Indians Intherto hostile and locating them on thoir proper reservations; that Sitting Bull and his adherents are now pris- oners at Kort Randall; that the Utes lhave been moved to their new reser- vation in Utah; that during the re cont outbreak of the Apachvs it was necessary to reinforce garrisons in Arizopa by troops withdrawn frome Now Mexiso, and that some Apaches aro naw hold prisoners for hiar‘:hilo