Omaha Daily Bee Newspaper, December 5, 1882, Page 2

{ \ tions through the medlam of the rep- | relieving the treasury of an excess of nanots. resontatives of their foreign ments. The admirabls system which has been built up by the enterprise of the Smithsonian Institution atfords & practiosl basis for our co-cperation In REDUCING THE REVENUE HOW IT SHOULD BE DONE, iin the event that congress fails to this scheme and arrangement has |,.\oh an early agreement for the re- boeen effected whereby that institation | guction of taxation, lhontil{ approve OF | the secretas the direction of the department of | aiste an will peform the necessary labor atate. therefor should be provided by law. A SALARIED SERVICE, 's recommendation of extensive reductions in A reasonable compensation | }o annual revenues of the govern- ment. It will »e remembered that I arged upon the attention of congress A clause in the act making appro-|at ita last session the importance of priations for the reorga; ¢ such service on a salaried basis, leav diplomatic and for- | relieving the industry and enterprise | & lar service contemplates the|of the country from the pressure of jon of both branches of | ®nnecessary taxation. It is one of the tritest maxims of political economy ing fees to inure to the benefit of the [ that all taxes are burdensome, however treasury. 1 cordially favor such a|wisely and prudently imposed, and projsct as likely to correct abuses in | though thero have alwrys been among the presant service. The secretary of | our people wide differences of senti- state will present to you at an eacly | ment as £o the best method of raising day a plan for such reorganization. TREASURY OPER ATIONS. REVENURS OF THE YEAR, the natlonal revenues and, indeed, es to the principles upon which taxation should be baeed, there has been sabstantial accord in the doctrine that only such taxes ought to be levied as A fall and interesting exhibit of | are” necessary for a wise and economi- the operations of the treasury depart: | cal adminiatration of the government. ment is afforded by the report of the | Ot late the public revenues have far socretary. as follows: From customs,. .. ........5220'421,730.75 [ ended From Internal Revenue, ... 146, From sales of public Iands, 4,753 From tax oncirculation and deposits of nat'n’l banks. From repsym’t of int. by Pacific Railway Cos.... From sinkingfund for Pi cific Reilway Cos..... ... From customs, fees, fines, penalties, etc . From fees consular, patent and lands From proceeds of government property From profits of coluage, bullion deposits and as- 810,554 87 706,271,42 134,334,800.00 2688,990,97 814,959.85 4,116,608.78 575,218.2 From deposits by individu. als { iblic lan 2,032,306,26 1,715,176.41 8,388,445.43 Total ordinary receipts. .uoa,aafi&ffi The ordinaty sxpenditures for the same period were: $18,012,386 42 1,387,686 19 1.786,747 40 61,845,108 9) ment, including river and barbor improvements and arsenal For the naval establish- ment, lnelndlng‘ vesiel im 41,670,494 19 . machinery and improve- ments at navy yard.... For miscellaveous expendi.. tul including public buildings, White House, collecting the revenue. . . For expenditures on mo- count of the District of Columbia. 15,082,046 26 82,589,237 50 3,330,543 87 2 06 67,081,489 17 Loaving a surplus revenue of $145,- 443,810,71, which with an amount drawn from the cash' balance in the treasury of $70,737,694 84, making $166,281,605,60, which wasapplied to the redemption of bonds for the sink- ing fund; $60,079,160.00 of fractional ourrenoy for the sinking fand; §5,705,- 560 of loan of July and August, 1861, £02,572.060 00 of loan of March 1863, 84 472,900.00 of funded loan of 1881, 194,450 00 of loan of 1858, 1,000,000 of foan of Fobruary, 1861, $303,000.00 of five-twenties ot 1862, $2,100.00 of five-twenties of 1864, 87,400 00 of five-twenties of 1865, $0,500.00 of ten-forties of 1804, $264,- 560 00 of consols of 1865, $86,450,00 of consols of 1867, $408,250.00 of consols of 1868, $141,400 of Oregon war debt, $675,260 of old demand, compound interest and other notes, $18 350 00; total $166,281,505.55, The FOREIGN COMMERCE of the United States during the last fiscal year, including imports and ex- ports of merchandise and specie, was #8 follows: .8700,742,272 19,417,479 9,751 630,574 42,472,390 800, 724, Tobal. s o il $ 707,111,964 Excess of exports overimports of merchandise............ 25,002,608 before any of the previous six years, as appears by the following table: Year ending June 30, ex- oess of exporta over im- . 176,796,434 81 161,152,094 00 207,814,784 00 264,661,666 (0 167,688,912 00 259,712,718 00 25,902,608 00 During the year there have been organized 171 national banks, and of these institutions there are now in operation 2,269, a larger number than ever before, The value of their notes in active circulation on July 1st, 1882, was $384,066,458. 1 commend to your attention the secretary’s views in respect to the likelihood of » serious ocontraction of this circulation, and to the mode by which that result may, in his judgment, be averted. In respeot to the UOINAGE OF SILVER DOLLARS and the retirement of the silver certi- ficates, I have seen nothing to alter but much t confirm the sentiments to which Lgave expression last year, A comparison between the reepective amounts of silver dollar circulation on November 1, 1881, and on November 1, 1882, shows a slight increase of a million and & half of dollars, but dur- ing the interval there had been in the whole number coined aun increate of $26,000,000. Of the 28,000,000 thus far minted little more than $35,(00,000 are in ocirculy- tion, The mass cf accumulated coin has grown so great that the vault room at present available tor storage is nearcely sufficient to contain it, It is not apparent why it is desirable to continue this umn?o 80 _enormously in excess of public demand. As to the silver certificates, in addition to the grounds which seemed last year to jus- tify thoie nllnmti may be men- tionod o effect of w! 18 likely to ensue 1+ m the supply of gold cer- tificates ¢ » which congress recently made provision and which are now in active , You cannot fail o the discussion It appears that the ordi-|xeeeded nary revenues from all sources for the| onecked by fiscal yoar ended June 30, 1882, are|sach excess wil that limit, and unless appropriate legislation continue to 1norense from year to year. For the fiscal yoar Jone 30, the surplus 497,095 45 | ravenue wmounted to $100,000,000. 3,141.69 | Bor. the fiseal yesr ending June 30, 95,679, 145.00 1882, the surplus was more than $145,000,000.- The report of the sec- retary wshows what disposition has been mmwde of these moneys. They have not only answered the uire- ments of the sinking tund, but have afforded a large balance applicable to other reductions of the public debt. But 1 renew the expression of my conviction that such rapid extingunish- meut of the publio indebtedness as is now taking place is by no meansa cause for congratulation, It isa cause rather for SERIOUS APPREHENSION, If it continues, 1t must speedily be followed by one of ‘the evil issues so clearly set forth in the report of the secretary. Either the surplus must be idle in the treasury, or the govern- ment will be forced to buy at market rates its bonds, not get redeemable, and which, under such ciroumstances, cannot fail to command an enormous premwium, or the swollen revenues will be devoted to extravagant expen- ditures, which, as experience has teught us, is ever the bane of an overflowing public treasury. Upon the showing of our financial condition at the close of tho last fiscal year, I foel gratified in recommending to congress the abolition of internal rovenue taxes except those upon to- bacco in its various forms and on dis- tilled spirits and fermented liquors, and except also the special tax upon the manufactarers and dealers in such arttcles. I venture now to suggest that unless it shall bo aacertained that tho probable expenditures of the gov- ernment for the coming year have been under-estimated, all internai revenus tax whioh relate to distilled spirits can bo prudently abrogated. Such a course, if accompanied by a simplification of the machinery of ool- lection, which would thus be easy of accomplishment, might reasonably be expected to result in dimiaishing the cost of such ocollection at least two million and a half dollars, and in the retirement from office of fvom fifteen SYSTEM OF EXCISE DUTIES have never commended itself to the favor of the American people. It has never been resorted to except for sup- plying doficienctes in the treasury, when, by reason of special exigencies, the duties on imports have proved in- adequate for the needs of the govern- ment. The sentiment of the country doubtless commends the present ex- cise tax shall be abolished as soon as such course can safely be pursued, It seems to me, however, for various ressons, so sweeping a measure as the total abolition of internal taxes would for the present be AN UNWISE STEP, Two of these reasons are deserving of special mention: Firat. It is by no means clear that even if the existtug system of duties ou imports is continued without mod fication the duties will alone be sul cient for all the needs of the gover: ment, It is estimated that $100,000, annual demand for that object has yet been reacned. Uncertainty ugon this question would alone justify in my judgment, the retention for the pres- ent of that portion of the system of internal revenue which is least objec- tionable to the people. L/ Second. A total abolition of excise taxes would almost inevitably prove a serious if not an insurmountable o jection to a thorough revision of the tariff and to any considerable reduc- tion in import duties, THE PRESENT TARIFF SYSTEM is in mnu! mreh unjust, It makes unequal distributions both of its bur- dens lnd‘ t:l its bonal:;l The fact was practioally ucofniz by a major- ity of each house ol oonguyu in ’tha passage of the act creating the tariff commission, The report of that com. mision will be placed before you at the beginning of this session, and will, T truat, lnrnl‘bh ou such information a8 to the condition und prosperity of the varicus ocramercial, agricultural, manufacturing, mining and other in- terests ot the country, and contain such suggestions for statutory revision as will practically aid your action upon this important subdject, THE REVENUE FROM CUSTOMS for the fiscal year ending June 30, 1879, amounted to $37,000,000. It hes io the three succeeding years reached first $186,000,000, then $19 000,000, and finally, ws has already been stated 6,000,000, The in- como from this service for the present year, which will end June 30, 1883, will doubtless be considerably in ex cess of the sum last meutioned, If the tax ou domestic spirita is to be retained it is plain they require that large reductions from customs revenue are entirely feasible. While recom- mending this reduction Tam fur from advising the sbandonment of the pol- icy of so discriminating in the adjust- ment of details as to afford ald and protestion to domestic labor, but the present system should be so revised as THE DATLY BEE--OMAHA TUESDAY, DECEMBER 5 ent needs of Industry, tering into minute detsll which un. der present circumatances is quite un- necomary, I recommend an enlarge- ment of the free list so as to include within it the numerous articles which yield inconsiderable and the simplification of the complex and inconslstent echedale of duties upon certain manufactures, particularly those of ocotton, iron :n(i steel, and a substantial reduction of the duties upon those articles and upon sugar, molasses, silk and woolen oods If a general revision of the tariff shall be found to be impractica- ble at this session, I express the hope that at least some of the more con- spicuous inequalities of the present law may be corrected before your final ad- journment, One of them is especially referred to by the secretary. In a recent decision of the supreme court the necessity of amending the law by which the dutics and standard of color is adopted as the test of saccharine strength of sugar is too obvious to require commont. It was made a parent in the course of the animated disoussion which this question arouses t the last session of congress that the licy of diminishing the revenue by iminishing taxation commands the genoral approval of the members of both houses, I regret that the con- flicting viewaas to the best method by which that policy should be made operative, none of its benefits have ar yet been reaped. In fulfillment of what I deem my constitutional duty, but with little hope thatI can make & valuable contribution to this vexed queation, I shall proceed to intimate briefly my own views in relation to it. ittt THE ARMY. OPERATIONS OF THE YEAR, From the report of the secretary of war It appears that the only outbr of Indians during the past year oc- ourred in Arizons and in the south- western part of New Mexico, They were promp'ly quelled, and the quiet which has prevailed in all other 't of the country has permitted su: additlon to be made In the military foroe in the region endangered by the Apaches that there is little reason to apprehend trouble in the future. The reports of the secretary, which relate to our sea coast defenses and their ar- mament, soggest the gravest refle tions. Our existing fortifications are notoriously inadequate to the defense of the great harbors and ocities for whose - protection they were built. The question of providing an ar ment suited to our present necessities has been the subject of consideration by a board whose report was trans- mitted to congress at the last session, Ponding the consideration of that re- port the war department has taken no steps for the manufacture or conver- sion of any heavy cannon, but the secretary expresses the hope that authority and means to begin that im- portant work will soon be provided 1 urge the attention of congress to the propriety of making more adequate provisions for arming and equipping the militia than is afforded by the act of 1806, which is still on the statute books, The matter has already been the subject of discussion in the senate and a bill which seeks to supply the deficiencies of existing laws is now upon its calgndar, The secretary of war calls attention to the fact that an embarrassment growing out of the re- cent act of congress making THE RETIREMENT OF OFFIOIALS of the army compulsory a% the age of 65. The act of 1878 is still in force which limits to 400 the number of thoss who can be retired for disability or upon their own application. The two acts, when construed together, em to forbid the relieving, even for absolute necessity, of officers who do not fall within the purview of the lat- ter statute, save at such time as there chances to be less than four hundred names on the retired list. There are now 420. It is not ikely congress in- tended this result, and 1 concur with the secretary that the law ought to be amended. The ground that induced me to withhold my signature from the bill entitled ‘‘An act making appro- priations for the construction, repair and preservation of ocertain works on rivers and harbors,” which became a law near the close of your last session, prompt me to express hope that no similar measure will be deemed neces- sary during the present session of congress. Indeed, such a measure would now be open to A SERIOUS OBJECTION, in addition to that which was lately urged ugon your attention, I am in- formed by the secretary of war that & portion of the sum appropriated for the varlous items specified in that act remains unexpended, - Of the new works which it anthorized expenses have been incurred on two only, for which the total appropriation was $210,000, The present avallable bal- ance is disclosed by the following table: Amount of appropriation b) act of A ‘;';!ns. 1882 ’.'m,m,m Amount of appropristion by + 10,000,000 r act of June 19th, 1882, Amount of lpyNBrhfl payments to J, B. Eads oose 304,000 Unexpended balance of former Sppropriations.............. 4,738,238 A R A 828,791,188 Loss ull:.o‘unl dr:vmla ‘“l’l.: ‘l’;&‘fl’, 78 ury between Jul aud November , 1882, 6,056,194 AL e 4 s d s 817,784,044 If s apparent by this exhibit that 20 far as concerns most of the items to which the act of August 2, 1882, re- lates, there can be no need of further appropriations until after the close of the present session, If, however, any action should seem to be necessary in respect to particular objects it will be entirely feasible to provide for those objects by appropriate legislation, It is probable, for example, that a delay until the assembly of the next con- .| gress to make addiiional provision for the Mississippi river improvement, might be attended with serious con. sequences If such should appear to be the case a just bill relating to that subject would command my approval, JUMBO LEGISLATION. AN IMPORTANT RECOMMENDATION, This leaves me to offer a suggestion, which I'trost will commend itselt to the wisdom of congress, Is it not ad- visablo that grants of considerable sums of money for diverse indepen- dent schemes of international im- provement should be made subjects of seperate and distinot legislative exact- ments, It will uuo:ry be gainsaid, even he those who favor the most lib- eral expenditures for such purposes as an | the veto of the executive. is commonly called the rivet and har- bor bill, that the practics of grouping in such & bill of appropriations for a & great diversity of objects widely separated either in their natures or locality with which they are con- cerned, or in both, is one which is much to be depreciated. Unless it is trredeemable it is inevitably tend- ing to secure the success of the bill as a whole, though many of the items, if separately considered, could scarcely fail of rejection. By the adop- tion of the course I have recom- mended, every member of congress when every opportunity should arise for giving hisinflusnce and vote for meritorious appropriations would be enabled 8o to do without being called upon to sanction others undeserving his approval. 8o also would the ex- ecutive be afforded thereby a fall op- portunity to exercise his constitution- al prerogative of opposing whatever appropriations seeméd to him object- ionable without imperiling the success of others which commended thom- selves to his judgment. It may be urged in opposition to these sugges- tions that the number of works of in- tornal improvement which are justly entitled to aid is s> great as to render impraoticable separate appropriation bills therefor, or even for such com- paratively limited number as made disposition of large sums of money. This objection may be well founded, and whether it be or not, the advan- tages which would be likely to ensue from the adoption of the course I have recommended may perhaps be more eflutndl{ attained by another, which I respectfally submit to congress as AN ALTERNATIVE PROPOBITION. It in provided by the constitutions of fourteen of our states that the execa- tive may dlsapprove any item or items ks | of & bill appropriating money, where- upon the part of the bill approved shall be law, and the part disapproved shall fail to become a law, unless re- passed according to the provisions vrescribed for the passage of bills over The states wherein such provision as the forego- ingis & fundamental law, are Alabama, Callfornia, Colorado, Florida, Georgia, Ir‘n:nk‘:,h!‘{"" lg.innnotfi, Ml;lol;:i,PNeb ow Jersey, New York, Penn- sylvania and West Virginia, I com- end to your careful consideration the question whether amendment of the federal conatitution in the partic- ular indicated would not afford the best remedy for what is often a grave - | embarrassment, both to members of congress and to theexecutive, and is sometimes a serious public mischief. THE NAVY. MOVEMENTS AT HOME AND ABROAD, The report of the secretary cf the home ana foreign waters, whers our officers and seamen with such ships as we possess, have continued to illus- trate the high character and excellont discipline of the naval organization On the 21st of December, 1881, in- formation was received that the ex- ploring steamer Jeannette had been crushed and abandoned in the Arctic ocean. The officers and crew, after a jonrmew a=-r {ho jce, embarked in whree Luaws for the coast of Siberia. One of the parties, under command of Chief Engineer George W. Melville, reached the land and, falling in with natives, was saved. Another, under Lieuter - Commander De Long, landed a barren region near the mouth of the Lona river after six weeks had elapsed and all bat two of the number died from fatigue and starvation, Notidings have beon received from the party in the third boat under the command of Lieutenant Chipp, but a long and fraitless inves- tigation leaves but little doubt that all its members perished at sea. As a slight tribute to their heroism I give in this communication THE NaMES OF THE GALLANT MEN who sac:ificed their lives on the expe- dition: Lientenant Commander Geo, W. DeLong, Sargeon James M. Am- bler, Jerome J. Collins, Hans Haller, Erichson Heinrich, H. Kaacke, Geo. A. Boyd, Walter Lee, Adolph Dres- sler, Carl Gorts, Nelse Svenson, the cook Ah Sam, and the Iudian Alexy. The officers and men in the missing boat are Lieutenant Charles W. Chipp, Commanding, Wm. Dunbar, Alfred Sweetman Walter Shootell, Albert O, Kuehne, Edwin Star, Henry D. Farren, and P. E. Johnson, Lieutenant Giles B, Harbert and Mester Wm. Scheutzviech are now bringing home the remains of Lieuten- ant DeLoog and comrades. ln pur- suance of the directions of congress the Rogers fitted for the relief of Jean- nette, in accordance of an st of con- gross of March 34, 1881, sailed from San Francisco June 16th, under the command of Lieutenant Robert M. Berry, On November 30, she was accidently destroyed by fire while in winter quarters in St, Lawrence Bay, but the ofticers and crew succeeded {n escaping to the shore. Licutenant Berry and one of his officers, after making a search for the Jeannette along the coast of Siberla fell in with Chlef Eogineer Melville's party and returned home by Way of Europe, The other officers and the crew of the Rogers were brought from St. Law rence Bay by the whaling steamer North Star. “Master Charles F. Pat- nam, who had been in charge of a depot of supplies at Cape Serdez, returning to his post from St. Law- rence Bay across the ice in a blinding snow storm, was carried out to sea and lost notwithstanding all efforts to resoue him, It appears by the secre- tary’s report that THE AVAIKABLE NAVAL FORCE of the United States consists of 37 oruisers, 14 single turretted monitors, built during the rebellion, a large number of smooth bore guns avd Par- rott rifles, and 87 rifl>d cabnon The cruising vessels should be gradually replaced by iron or steel ships, the monitors by modern armored vessels, and their armament by high power nifled guns. The reconstruction of our navy, which was recommended in the last message, was begun by con- gress authorizing in its recent act the coustruction of two large armored stoel vessels of the character recom- mended by the late navy advisory board, aud subject to the final appro- val of a new advi board, to be or- ganized as pro by thatact. I call your attention to ‘the recomwmen- dations of the secretary and the board that authority be given to construct two more cruisers of smaller dimen- and one fleet vessel, and that sppropriations made for Without en- | are songht to be accomplished by what | high power rifled cannon, for the for- 0 service, and for other harbo¥ de. mses. Pending the considération by congress of the policy to be hereaf- tor adopse2 4= conducting the eight large navy yards and their expensive establishments, the secretary advo cated the reduction of expenditures to the lowest possible amounts, for the purpose of sffording officers and sea- men of the navy opportunities of ex- ercise and discipline in their protes. slon under appropriate control and directions, The mecretary nadvises that THE LIGHT HOUSE SERVICE and coast survey be transferred as now organizad from the treasury to the navy department, and he also suggests for reasons which he assigns that a similar transfer may wisely be made of cruising revenue vessels, The secretary forcibly depicts the in- timate connection and inter-indepen- dence of the navy and commercial marine, and invites attention to the continued decadence of the latter and the corresponding transfer of our growing commerce to foreign nationa. The subject is one of the utmost im- portance to the national welfare. Methods of reviving American ship- building and of restorivg the United States flag in the ccean-carrying trade should receive the immediate atten- tion of congress, We have mechani- cal skill and abundant material for the manufacture ot modera iron steamships in fair compatition with our commercial rivals. Our dis tage in building ships is the greater cost of labor and 1n msailing, higher taxes and greater interest on capital, while the ocean highways are already monopolized by our formidable com- petitors. These obstacles should in some way be overcome, and for our rapid communication with foreign lands we should not continue to de- pend wholly upon vessels built in the yards of other countries and sailing under foreign flags. With no United States steamer on the principal ocean lines, or for any foreign ports, our facilities for extending our commerce are greatly reatricted, while the na- tions which build and sail the ships and carry the mails and passengers obtain thereby conapicuous advantages in increasiug their trade. THE rOSTOFFICE DEPART- MENT. FIGURES AND SU/GGZSTIONS, The report of the postmaster gen- eral gives evidence of the satisfactory condition of that department, and contains many valuable data and ac- companying suggestions, which cannot fail to be of interest The informa- tion which it affords that the receipta tor the tiscal year have exceeded the expenditures, must be very gratifying vy states that the movements of the to congress and to the people of "the | various equadrons during the year in country., As matters which may fair- ly claim particular attention, I refer you to his observations in reference to the advisability of changing the present basis for fixing salaries and al- lowances, of extending the money or- der system, of enlarging the functions of the postal establishment so as to put under its control the telegraph system of the country; though from this last and most important recom- mendation I must withhold my con- currence. At the last session of con. gress several bills were introduced into the house of representatives for THE REDUCTION OF LETTER POSTAGE to a rate of two cents per half ounce. I have given much study and reflec- tion to this subject and am thoroughly persuaded that such a reduction would be for the best interests of the public. 1t has been the policy of the govern- ment from its foundation to defray as far as possible the expenses of .carry- ing the mails by a direct tax in the form of postage. It has never been claimed, however, that this service ought to be productive of a net rev- enue. As has been stated already the report of the postmaster general shows that there is now a very considerable surplus in this department and that henceforth the receipts are likely to increase to a much greater ratio than the necessary expenditure. Unless some change 18 made in the existing laws the profits of the postal service willin a very few years swell the rev- enues of the government many million of dollars, The time seems auspicious, therafore, for some reduc- tion in the rates of postage. In what shall that reduction consist, a re- view of the legislation which has bsen had upon this subject during the last thirty years diecloses that domestic letters constitute the only class of mail matter which has never been favored by a substantial reduction of rates. Iam convinced that the burden of maintaining the service falls most on that class, and that more than auy other it is entitied to present relief. That sucH relief may be extended without detriment to other public interests will be dis- covered upon reviewing the results of former reductions. Immediately prior to the act of 1846 the postage upon a letter, composed of a single sheet, was as follows: Conveyed 30 miles or less, 6 cents; betweeu 30 and 80 miles, 10 cents; between 80 aud 160 miles 12 and 12} cents; between 160 and 400 miles 18] cornts; over 400 miles, 26 cents. By tha act of 1845 the postage on a sing'+ 'otter convey- od for any distance uider 30 miles was fixed at 6 oents, and for any greater at 10 cents. Hy the act of 1801 it was provided that a single letter, if prepaid, should be carried any distance not exceeding 3 000 miles for 3 cents, and any greater dis- tance for 6 cents. 1t will be noticad that both of these reductions were of & radical character and rela- tively quite as important as that mnow proposed. In each case there ensued a temporary loes of revenue but a sudden and LARGE INFLUX OF VISITORS, which substautially repiired that loss within three yo Unless the ex- perience of past legislation in this country and elsewheregoes for naught, it may be eafely predicted that the stimulus of 50 per cent. reduction on the tax for carriags would at once in. creage the number of letters consigned to the mail. The advantage cf secrecy would lead to a very general substitu- tion of sealed packets for postal cards and open circulars, and in divers other ways the volume of first-class matter would be enormously augmented. Such increase amounted in England in the first year after the adoption of the penny postage to more 126 per cent. As a rale careful estimate, the detalls of which cannoi be here stated, I have been convinced that the deficlency for the first year an- | b after the proposed reduction would not exeeed 7 cent of the expendi tures, or $3,000,000, while the de- ficiency, after the reduction of 1845, was mors than 14 per cent, and after that of 1851 was 27 per cent. Another interestiog comparison is offered by the postoffice depariment. The act of 1845 was passed in the face of the fact that there existed a deficiency of more than £30,00)., That of 1851 was en- couraged be the alight surplus of $132,000. The excess revenue in the next fiscal year i likely to be §3 800, 000. If congress should approve these suggestions it may be deemed desira- ble to supply to some extent the de- ficiency which must for a time result by increasing the charge for earrying merchandise, whioh is now only 16 cents per pound, _But even without such an increase I am confident that the receipts under the diminished rates would equal the expenditures after a lapse of three or four years, DEPARTMENT OF JUSTICE. ENLARGING THE SYSTEM The report of the department of justice brings anew to your notice the necessity of enlarging the present system of federal jurisprudence so ae to effectually answer tlie requirements of the ever increasing litigation with which it is called upon to deal. The attorney.general renews the sugges- tions of his predecessor that, in the interest of justice, better provisions than the existing laws offered should e in certain judicial distriots for guaranteeing the fees of witnesses and jurors. In the message of Dacember ast I referrod to the pending criminal Erouedingn grown out of fraud nown as the ‘'STAR ROUTE SERVICE” of the postoftice department, and ad- vised you that I had enjoined upon the attorney general and associate counsel, to whom the interests of the government were intrusted, the duty of prosecuting with the utmost vigor of the law all persons who might be found chargeable with the offenses. A trial of one of these cases has since occurred. It ocoupied for many weeks the attention of the supreme court of this district, and was conducted with great zeal and ability. It resalted in a disagreement of the jury, but the case has again been placed upon the calendar, and will shortly be retried. 1t any guilty persons shall finally. es- cape punishment for their offenser, , it will not be for lack of diligent and ur- gent efforts of the prosecution. I trust that some agreement may be reached that will speedily aid con. gress, with the concurrence of the ex- ecutive, to afford the commercial community the benefits of a national bankrupt law. THE INTERIOR. DEALING WITH INDIANS. The report ot the secretary of the interior, with ita accompanying docu- ments, presents a full statement of the various operations of that depart- ment, In respect to Indian affairs, nothing has occurred which has changed or seriously modified the views to which I devoted much space ina former communication to con- gress, Irenew the recpmmendations therein contained as to extending to the Indiaa the protection of law; al- lotting land in severalty to such as desire it and making suitable provis- ion for education of thq youth. Such provision as the secretary forcibly maintains will prove unavailing un- less it is broad enough to Include all those who are able and willing to make use of it, and should not solely relate to intellectual training but also to instruction in such manual labor and simple and useful srts as can ba made practicably avoidable. Among other important subjcts which are included in the eecretary’s report and which will doubtless farnish ocoasion for congressional action, is the neglect of railroad companies, to which large grants of land were made by acts of 1862 and 1864, TO TAKE TITLE THERETO and the consequent inequitable ex- emption from local taxation. No sur- vey of our material condition can faii to suggest inquiries as to the moral and intellectual progress of the people. The census returns show an alarming state of illiteracy in certain portions of the country where the provision for schools is mostly inadequate. It is a momentous question for the decision of congress whether immediate sub- stantial aid should be extended by the general government for supplementing the efforts of private benificence and of state and territorial legislature in beholf of education, REGULATING RAILROADS, The regulation of inter-state com- merce has already been the subject of your deliberations. Oce of . the irci- dente of the marvelous extension of the railway system of the county has been the adoption of such measures by the corporations which own or control the roads as has tended to impair the advantages of healthful competition and make hurtful discrimination in the adjustment of freightage. These in- equalities have been corrected in sev- eral of the states by appropriate legis- lation, the effect of which is necessarily restrioted to the limits of their own territory. 8o far as such mischiefs affect commerce between the states or between any one of the states and of foreign countries, they are subjects of national concern and congress alone can afford relief, THE MORMONS, The results which have thus far at- tended the enforcement of tho recent statute for the suppression of polyg- amy in the territories arv reported by the secretary of the interior. It is not probable that any additional leg- islation in this regard will be deemed desirable until the effect of existing laws shall be more closely observed and studied. The commissioners un- der whose supervision thuge laws have been put in operation, are encoaraged to believe that the evil at which thoy are aimed msy be suppressed without resort to such radical measures as in some quarters have been thought in- dispensablo for success. THE TERRITORIES The close relstions of the general government to the territories prepar- ing to be great states may well engage your especial attention. It is there that the Iadian disturbances occur and that polygamy has fornd room for its growth. I cannot doubt that a careful survey of the territorial question would be of the highest utility, more secure. The lisbility of out- breaks between Indians and whites Life and property would be | an: would be lessened, the public domain would be more securely guarded, and better proj be made in the 1n- struction of the young. ALASKA in still without any form of ecivil gov- ernment, If means were provided for the education cf its people and for the protection of their lives and property, the immense resources of the region would invite permanent settlements and open now fields for industry and anterprise. The report of the com- missioner of agriculture presents an account of the labors ¢f that depart. ment during the past year, and in- cludes information of much interest to the public. The condition of the FORBSTS OF THE COUNTRY and the wasteful manner in which their destruction ia taking place, give cause for serlous apprehension, Their action in protecting the earth’s surtace in modifying the extremes of climate and in replenishing and sustaining the flow of springs and streams is not yet underatood, and their importance in relation to the growth cf the coun- try cannot bo safely disregarded. They are fast disappearing before destructive fires, and the legitimate requirements of our increasing population and their total extinction cannot be long delayed unless better methods than now pre- vail shall be adopted for their protec- tion and cultivation. The attention of congress is invited to the neceesity of additional legislation to secure the proservation of the valuable forests still remaining public domain, espe- cially in the extreme western states and territories, where the mnecessity for their preservation is greater than in less mountainous regions, and where the prevailing dryness of the climate renders the restoration, if they are destroyed, well-nigh impoesible. CIVIL SERVICE. REFORM I8 NECESSARY, The communication which I made to congress at its first session in De- cember last contained a full statement of my sentiments in relation to the principles and rales which ought to govern appointments to public service. Ref8rring to the various plans which had heretofore been subjects of dla- cussion in the national legislature, plans which in the main were modeled upon the system which obtains in Great Britain, but which lacked cer- tain of the prominent features where- by that system is distinguished, I felt bound to intimate whether they or any of them would afford adequate remedy for the evils which they aimead to correct. I declared nevertheless that if the proposed measures should prove acceptable to congress they would receive the unhesitating support of the executive. Since the sugges- tions were submitted for your consid- eration there has been no leglslation upon the subject t» which they relate, but thero has meanwhile been an in- crease in public interest on that suject and the pcople of the country, appar- ently without distinction of party, have in various ways and upon fre- uent occasions given expressions to their earnest wish for prompt und definite action, In my judgment, such action should no longer be poat- poned. I mey add that my ownwense of its pressirg importancs has been quickened by observation in a practi- cal phase of the matter to which at- tention has more than once been called by my predeceasors. THE CIVIL LIST now comprises about 100,000 persons, the larger part of which must, under the terms "of the constitution, be se- lected by the president, either directly or through his own appoin. tees, In the early years of the admin- istration of the government the perso- nal direction of appointments in the civil service may not have been an irksome task for the executive, but now that the burden has increased fully e hundredfold, it has become greater than he ought to bear, and it necessarily diverts his time and atten- tion from the proper discharge of other duties no less delicate and responsible, and which, in the very nature of things, cannot be delegated to other hands, In the judgment of not a few, who have given study and reflection to this matter, the nation has outgrown the provisions which the the covstitution establishes for filling the minor offices in public service, but_whatever may be thought of the wisdom or expediency of changing the fundamental law in this regard, 1t is certaln that much relief may be afforded, not only to the president and to the heads of the departments, but to seaators and representatives in con- gress, By discreet legislation they would be protected in a great measure by the bill now pending before the senate, or by any other which would embody its important features from the pressure of personal importunity and from the labor of exawining con- flicting claims and pretensions of candidates. 1 trust that before the close of the present session some de- cisive action may be taken for the cor- rection of eyils which inherit the pres. ent methods of appointment, and assure you of my hearty co-operation in any measures which are likely to conduce to that end, as they must fix the TERM AND TENURE OF OFFICIAL LIFE of the subordinate employes of the government. It seems to be general- ly agreed that whatever their extent or character the one should be defi- nite and the other stable, and that neither should be regulated by the eeat in the oftice of party or fidelity to the fortunss of an individual, = It matters lictle to the people at large what competent person is at the head of this department or of that bureau, if they foel assured that the removal of one and the accession of another will not involve the retirement of honest and faithful subordinates, whoso duties are purely administrative and have no legitimate connection with the triumph of any political principles or the sucsess of any po- litical party or faction, Tt is to this latter class of officers that the senate bill to which I have alrezdy exclusively applies, while neit:« - that bill nor any other prominent scheme for improving the ocivil service con. cerns the higher grade of officials who are appointed by the president and confirmed by the eenate. REMOVALS, 1 feel bound to correct a prevalent misapprehension as to the frequency with which the present executive has displaced the incumbent of an office appointed another in his etesd. It has been repeatedly ed that he has in this particular signally departed