FIRST ANNUAL MESSAGE.

WASHINGTON, _December 8, 1885_.

_To the Congress of the United States_:

Your assembling is clouded by a sense of public bereavement, caused by

the recent and sudden death of Thomas A. Hendricks, Vice-President of

the United States. His distinguished public services, his complete

integrity and devotion to every duty, and his personal virtues will find

honorable record in his country's history.

Ample and repeated proofs of the esteem and confidence in which he was

held by his fellow-countrymen were manifested by his election to offices

of the most important trust and highest dignity; and at length, full of

years and honors, he has been laid at rest amid universal sorrow and

benediction.

The Constitution, which requires those chosen to legislate for the

people to annually meet in the discharge of their solemn trust, also

requires the President to give to Congress information of the state of

the Union and recommend to their consideration such measures as he shall

deem necessary and expedient. At the threshold of a compliance with

these constitutional directions it is well for us to bear in mind that

our usefulness to the people's interests will be promoted by a constant

appreciation of the scope and character of our respective duties as they

relate to Federal legislation. While the Executive may recommend such

measures as he shall deem expedient, the responsibility for legislative

action must and should rest upon those selected by the people to make

their laws.

Contemplation of the grave and responsible functions assigned to the

respective branches of the Government under the Constitution will

disclose the partitions of power between our respective departments and

their necessary independence, and also the need for the exercise of all

the power intrusted to each in that spirit of comity and cooperation

which is essential to the proper fulfillment of the patriotic

obligations which rest upon us as faithful servants of the people.

The jealous watchfulness of our constituencies, great and small,

supplements their suffrages, and before the tribunal they establish

every public servant should be judged.

It is gratifying to announce that the relations of the United States

with all foreign powers continue to be friendly. Our position after

nearly a century of successful constitutional government, maintenance of

good faith in all our engagements, the avoidance of complications with

other nations, and our consistent and amicable attitude toward the

strong and weak alike furnish proof of a political disposition which

renders professions of good will unnecessary. There are no questions of

difficulty pending with any foreign government.

The Argentine Government has revived the long dormant question of the

Falkland Islands by claiming from the United States indemnity for their

loss, attributed to the action of the commander of the sloop of war

_Lexington_ in breaking up a piratical colony on those islands in

1831, and their subsequent occupation by Great Britain. In view of the

ample justification for the act of the _Lexington_ and the derelict

condition of the islands before and after their alleged occupation by

Argentine colonists, this Government considers the claim as wholly

groundless.

Question has arisen with the Government of Austria-Hungary touching

the representation of the United States at Vienna. Having under my

constitutional prerogative appointed an estimable citizen of unimpeached

probity and competence as minister at that court, the Government of

Austria-Hungary invited this Government to take cognizance of certain

exceptions, based upon allegations against the personal acceptability

of Mr. Keiley, the appointed envoy, asking that in view thereof the

appointment should be withdrawn. The reasons advanced were such as

could not be acquiesced in without violation of my oath of office

and the precepts of the Constitution, since they necessarily involved a

limitation in favor of a foreign government upon the right of selection

by the Executive and required such an application of a religious test

as a qualification for office under the United States as would have

resulted in the practical disfranchisement of a large class of our

citizens and the abandonment of a vital principle in our Government. The

Austro-Hungarian Government finally decided not to receive Mr. Keiley as

the envoy of the United States, and that gentleman has since resigned

his commission, leaving the post vacant. I have made no new nomination,

and the interests of this Government at Vienna are now in the care of

the secretary of legation, acting as chargé d'affaires _ad interim_.

Early in March last war broke out in Central America, caused by the

attempt of Guatemala to consolidate the several States into a single

government. In these contests between our neighboring States the United

States forebore to interfere actively, but lent the aid of their

friendly offices in deprecation of war and to promote peace and concord

among the belligerents, and by such counsel contributed importantly to

the restoration of tranquillity in that locality.

Emergencies growing out of civil war in the United States of Colombia

demanded of the Government at the beginning of this Administration

the employment of armed forces to fulfill its guaranties under the

thirty-fifth article of the treaty of 1846, in order to keep the transit

open across the Isthmus of Panama. Desirous of exercising only the

powers expressly reserved to us by the treaty, and mindful of the rights

of Colombia, the forces sent to the Isthmus were instructed to confine

their action to "positively and efficaciously" preventing the transit

and its accessories from being "interrupted or embarrassed."

The execution of this delicate and responsible task necessarily involved

police control where the local authority was temporarily powerless, but

always in aid of the sovereignty of Colombia.

The prompt and successful fulfillment of its duty by this Government was

highly appreciated by the Government of Colombia, and has been followed

by expressions of its satisfaction.

High praise is due to the officers and men engaged in this service.

The restoration of peace on the Isthmus by the reestablishment of the

constituted Government there being thus accomplished, the forces of the

United States were withdrawn.

Pending these occurrences a question of much importance was presented by

decrees of the Colombian Government proclaiming the closure of certain

ports then in the hands of insurgents and declaring vessels held by

the revolutionists to be piratical and liable to capture by any power.

To neither of these propositions could the United States assent. An

effective closure of ports not in the possession of the Government, but

held by hostile partisans, could not be recognized; neither could the

vessels of insurgents against the legitimate sovereignty be deemed

_hostes humani generis_ within the precepts of international law,

whatever might be the definition and penalty of their acts under the

municipal law of the State against whose authority they were in revolt.

The denial by this Government of the Colombian propositions did not,

however, imply the admission of a belligerent status on the part of the

insurgents.

The Colombian Government has expressed its willingness to negotiate

conventions for the adjustment by arbitration of claims by foreign

citizens arising out of the destruction of the city of Aspinwall by the

insurrectionary forces.

The interest of the United States in a practicable transit for ships

across the strip of land separating the Atlantic from the Pacific has

been repeatedly manifested during the last half century.

My immediate predecessor caused to be negotiated with Nicaragua a treaty

for the construction, by and at the sole cost of the United States,

of a canal through Nicaraguan territory, and laid it before the Senate.

Pending the action of that body thereon, I withdrew the treaty for

reexamination. Attentive consideration of its provisions leads me to

withhold it from resubmission to the Senate.

Maintaining, as I do, the tenets of a line of precedents from

Washington's day, which proscribe entangling alliances with foreign

states, I do not favor a policy of acquisition of new and distant

territory or the incorporation of remote interests with our own.

The laws of progress are vital and organic, and we must be conscious of

that irresistible tide of commercial expansion which, as the concomitant

of our active civilization, day by day is being urged onward by those

increasing facilities of production, transportation, and communication

to which steam and electricity have given birth; but our duty in the

present instructs us to address ourselves mainly to the development of

the vast resources of the great area committed to our charge and to

the cultivation of the arts of peace within our own borders, though

jealously alert in preventing the American hemisphere from being

involved in the political problems and complications of distant

governments. Therefore I am unable to recommend propositions involving

paramount privileges of ownership or right outside of our own territory,

when coupled with absolute and unlimited engagements to defend the

territorial integrity of the state where such interests lie. While the

general project of connecting the two oceans by means of a canal is to

be encouraged, I am of opinion that any scheme to that end to be

considered with favor should be free from the features alluded to.

The Tehuantepec route is declared by engineers of the highest repute and

by competent scientists to afford an entirely practicable transit for

vessels and cargoes, by means of a ship railway, from the Atlantic to

the Pacific. The obvious advantages of such a route, if feasible, over

others more remote from the axial lines of traffic between Europe and

the Pacific, and particularly between the Valley of the Mississippi and

the western coast of North and South America, are deserving of

consideration.

Whatever highway may be constructed across the barrier dividing the two

greatest maritime areas of the world must be for the world's benefit--a

trust for mankind, to be removed from the chance of domination by any

single power, nor become a point of invitation for hostilities or a

prize for warlike ambition. An engagement combining the construction,

ownership, and operation of such a work by this Government, with an

offensive and defensive alliance for its protection, with the foreign

state whose responsibilities and rights we would share is, in my

judgment, inconsistent with such dedication to universal and neutral

use, and would, moreover, entail measures for its realization beyond the

scope of our national polity or present means.

The lapse of years has abundantly confirmed the wisdom and foresight

of those earlier Administrations which, long before the conditions of

maritime intercourse were changed and enlarged by the progress of the

age, proclaimed the vital need of interoceanic transit across the

American Isthmus and consecrated it in advance to the common use of

mankind by their positive declarations and through the formal obligation

of treaties. Toward such realization the efforts of my Administration

will be applied, ever bearing in mind the principles on which it must

rest, and which were declared in no uncertain tones by Mr. Cass, who,

while Secretary of State, in 1858, announced that "what the United

States want in Central America, next to the happiness of its people,

is the security and neutrality of the interoceanic routes which lead

through it."

The construction of three transcontinental lines of railway, all in

successful operation, wholly within our territory, and uniting the

Atlantic and the Pacific oceans, has been accompanied by results of a

most interesting and impressive nature, and has created new conditions,

not in the routes of commerce only, but in political geography, which

powerfully affect our relations toward and necessarily increase our

interests in any transisthmian route which may be opened and employed

for the ends of peace and traffic, or, in other contingencies, for uses

inimical to both.

Transportation is a factor in the cost of commodities scarcely second to

that of their production, and weighs as heavily upon the consumer.

Our experience already has proven the great importance of having the

competition between land carriage and water carriage fully developed,

each acting as a protection to the public against the tendencies to

monopoly which are inherent in the consolidation of wealth and power in

the hands of vast corporations.

These suggestions may serve to emphasize what I have already said on the

score of the necessity of a neutralization of any interoceanic transit;

and this can only be accomplished by making the uses of the route open

to all nations and subject to the ambitions and warlike necessities of

none.

The drawings and report of a recent survey of the Nicaragua Canal route,

made by Chief Engineer Menocal, will be communicated for your

information.

The claims of citizens of the United States for losses by reason of the

late military operations of Chile in Peru and Bolivia are the subject of

negotiation for a claims convention with Chile, providing for their

submission to arbitration.

The harmony of our relations with China is fully sustained.

In the application of the acts lately passed to execute the treaty of

1880, restrictive of the immigration of Chinese laborers into the United

States, individual cases of hardship have occurred beyond the power of

the Executive to remedy, and calling for judicial determination.

The condition of the Chinese question in the Western States and

Territories is, despite this restrictive legislation, far from being

satisfactory. The recent outbreak in Wyoming Territory, where numbers of

unoffending Chinamen, indisputably within the protection of the treaties

and the law, were murdered by a mob, and the still more recent

threatened outbreak of the same character in Washington Territory, are

fresh in the minds of all, and there is apprehension lest the bitterness

of feeling against the Mongolian race on the Pacific Slope may find vent

in similar lawless demonstrations. All the power of this Government

should be exerted to maintain the amplest good faith toward China in the

treatment of these men, and the inflexible sternness of the law in

bringing the wrongdoers to justice should be insisted upon.

Every effort has been made by this Government to prevent these violent

outbreaks and to aid the representatives of China in their investigation

of these outrages; and it is but just to say that they are traceable to

the lawlessness of men not citizens of the United States engaged in

competition with Chinese laborers.

Race prejudice is the chief factor in originating these disturbances,

and it exists in a large part of our domain, jeopardizing our domestic

peace and the good relationship we strive to maintain with China.

The admitted right of a government to prevent the influx of elements

hostile to its internal peace and security may not be questioned, even

where there is no treaty stipulation on the subject. That the exclusion

of Chinese labor is demanded in other countries where like conditions

prevail is strongly evidenced in the Dominion of Canada, where Chinese

immigration is now regulated by laws more exclusive than our own. If

existing laws are inadequate to compass the end in view, I shall be

prepared to give earnest consideration to any further remedial measures,

within the treaty limits, which the wisdom of Congress may devise.

The independent State of the Kongo has been organized as a government

under the sovereignty of His Majesty the King of the Belgians, who

assumes its chief magistracy in his personal character only, without

making the new State a dependency of Belgium. It is fortunate that a

benighted region, owing all it has of quickening civilization to the

beneficence and philanthropic spirit of this monarch, should have the

advantage and security of his benevolent supervision.

The action taken by this Government last year in being the first to

recognize the flag of the International Association of the Kongo has

been followed by formal recognition of the new nationality which

succeeds to its sovereign powers.

A conference of delegates of the principal commercial nations was held

at Berlin last winter to discuss methods whereby the Kongo basin might

be kept open to the world's trade. Delegates attended on behalf of the

United States on the understanding that their part should be merely

deliberative, without imparting to the results any binding character

so far as the United States were concerned. This reserve was due to

the indisposition of this Government to share in any disposal by an

international congress of jurisdictional questions in remote foreign

territories. The results of the conference were embodied in a formal act

of the nature of an international convention, which laid down certain

obligations purporting to be binding on the signatories, subject to

ratification within one year. Notwithstanding the reservation under

which the delegates of the United States attended, their signatures

were attached to the general act in the same manner as those of the

plenipotentiaries of other governments, thus making the United States

appear, without reserve or qualification, as signatories to a joint

international engagement imposing on the signers the conservation of the

territorial integrity of distant regions where we have no established

interests or control.

This Government does not, however, regard its reservation of liberty

of action in the premises as at all impaired; and holding that an

engagement to share in the obligation of enforcing neutrality in the

remote valley of the Kongo would be an alliance whose responsibilities

we are not in a position to assume, I abstain from asking the sanction

of the Senate to that general act.

The correspondence will be laid before you, and the instructive and

interesting report of the agent sent by this Government to the Kongo

country and his recommendations for the establishment of commercial

agencies on the African coast are also submitted for your consideration.

The commission appointed by my predecessor last winter to visit the

Central and South American countries and report on the methods of

enlarging the commercial relations of the United States therewith has

submitted reports, which will be laid before you.

No opportunity has been omitted to testify the friendliness of this

Government toward Korea, whose entrance into the family of treaty powers

the United States were the first to recognize. I regard with favor the

application made by the Korean Government to be allowed to employ

American officers as military instructors, to which the assent of

Congress becomes necessary, and I am happy to say this request has the

concurrent sanction of China and Japan.

The arrest and imprisonment of Julio R. Santos, a citizen of the United

States, by the authorities of Ecuador gave rise to a contention with

that Government, in which his right to be released or to have a speedy

and impartial trial on announced charges and with all guaranties of

defense stipulated by treaty was insisted upon by us. After an elaborate

correspondence and repeated and earnest representations on our part Mr.

Santos was, after an alleged trial and conviction, eventually included

in a general decree of amnesty and pardoned by the Ecuadorian Executive

and released, leaving the question of his American citizenship denied by

the Ecuadorian Government, but insisted upon by our own.

The amount adjudged by the late French and American Claims Commission to

be due from the United States to French claimants on account of injuries

suffered by them during the War of Secession, having been appropriated

by the last Congress, has been duly paid to the French Government.

The act of February 25, 1885, provided for a preliminary search of the

records of French prize courts for evidence bearing on the claims of

American citizens against France for spoliations committed prior to

1801. The duty has been performed, and the report of the agent will be

laid before you.

I regret to say that the restrictions upon the importation of our pork

into France continue, notwithstanding the abundant demonstration of the

absence of sanitary danger in its use; but I entertain strong hopes that

with a better understanding of the matter this vexatious prohibition

will be removed. It would be pleasing to be able to say as much with

respect to Germany, Austria, and other countries, where such food

products are absolutely excluded, without present prospect of reasonable

change.

The interpretation of our existing treaties of naturalization by Germany

during the past year has attracted attention by reason of an apparent

tendency on the part of the Imperial Government to extend the scope of

the residential restrictions to which returning naturalized citizens of

German origin are asserted to be liable under the laws of the Empire.

The temperate and just attitude taken by this Government with regard to

this class of questions will doubtless lead to a satisfactory

understanding.

The dispute of Germany and Spain relative to the domination of the

Caroline Islands has attracted the attention of this Government by

reason of extensive interests of American citizens having grown up in

those parts during the past thirty years, and because the question of

ownership involves jurisdiction of matters affecting the status of our

citizens under civil and criminal law. While standing wholly aloof from

the proprietary issues raised between powers to both of which the United

States are friendly, this Government expects that nothing in the present

contention shall unfavorably affect our citizens carrying on a peaceful

commerce or there domiciled, and has so informed the Governments of

Spain and Germany.

The marked good will between the United States and Great Britain has

been maintained during the past year.

The termination of the fishing clauses of the treaty of Washington, in

pursuance of the joint resolution of March 3, 1883, must have resulted

in the abrupt cessation on the 1st of July of this year, in the midst

of their ventures, of the operations of citizens of the United States

engaged in fishing in British American waters but for a diplomatic

understanding reached with Her Majesty's Government in June last,

whereby assurance was obtained that no interruption of those operations

should take place during the current fishing season.

In the interest of good neighborhood and of the commercial intercourse

of adjacent communities, the question of the North American fisheries is

one of much importance. Following out the intimation given by me when

the extensory arrangement above described was negotiated, I recommend

that the Congress provide for the appointment of a commission in which

the Governments of the United States and Great Britain shall be

respectively represented, charged with the consideration and settlement,

upon a just, equitable, and honorable basis, of the entire question of

the fishing rights of the two Governments and their respective citizens

on the coasts of the United States and British North America. The

fishing interests being intimately related to other general questions

dependent upon contiguity and intercourse, consideration thereof in all

their equities might also properly come within the purview of such a

commission, and the fullest latitude of expression on both sides should

be permitted.

The correspondence in relation to the fishing rights will be submitted.

The arctic exploring steamer _Alert_, which was generously given by

Her Majesty's Government to aid in the relief of the Greely expedition,

was, after the successful attainment of that humane purpose, returned to

Great Britain, in pursuance of the authority conferred by the act of

March 3, 1885.

The inadequacy of the existing engagements for extradition between

the United States and Great Britain has been long apparent. The tenth

article of the treaty of 1842, one of the earliest compacts in this

regard entered into by us, stipulated for surrender in respect of a

limited number of offenses. Other crimes no less inimical to the social

welfare should be embraced and the procedure of extradition brought in

harmony with present international practice. Negotiations with Her

Majesty's Government for an enlarged treaty of extradition have been

pending since 1870, and I entertain strong hopes that a satisfactory

result may be soon attained.

The frontier line between Alaska and British Columbia, as defined by

the treaty of cession with Russia, follows the demarcation assigned

in a prior treaty between Great Britain and Russia. Modern exploration

discloses that this ancient boundary is impracticable as a geographical

fact. In the unsettled condition of that region the question has lacked

importance, but the discovery of mineral wealth in the territory the

line is supposed to traverse admonishes that the time has come when an

accurate knowledge of the boundary is needful to avert jurisdictional

complications. I recommend, therefore, that provision be made for a

preliminary reconnoissance by officers of the United States, to the end

of acquiring more precise information on the subject. I have invited

Her Majesty's Government to consider with us the adoption of a more

convenient line, to be established by meridian observations or by known

geographical features without the necessity of an expensive survey of

the whole.

The late insurrectionary movements in Hayti having been quelled, the

Government of that Republic has made prompt provision for adjudicating

the losses suffered by foreigners because of hostilities there, and the

claims of certain citizens of the United States will be in this manner

determined.

The long-pending claims of two citizens of the United States, Pelletier

and Lazare, have been disposed of by arbitration, and an award in favor

of each claimant has been made, which by the terms of the engagement is

final. It remains for Congress to provide for the payment of the

stipulated moiety of the expenses.

A question arose with Hayti during the past year by reason of the

exceptional treatment of an American citizen, Mr. Van Bokkelen, a

resident of Port-au-Prince, who, on suit by creditors residing in the

United States, was sentenced to imprisonment, and, under the operation

of a Haytian statute, was denied relief secured to a native Haytian.

This Government asserted his treaty right to equal treatment with

natives of Hayti in all suits at law. Our contention was denied by the

Haytian Government, which, however, while still professing to maintain

the ground taken against Mr. Van Bokkelen's right, terminated the

controversy by setting him at liberty without explanation.

An international conference to consider the means of arresting the

spread of cholera and other epidemic diseases was held at Rome in May

last, and adjourned to meet again on further notice. An expert delegate

on behalf of the United States has attended its sessions and will submit

a report.

Our relations with Mexico continue to be most cordial, as befits

those of neighbors between whom the strongest ties of friendship and

commercial intimacy exist, as the natural and growing consequence of our

similarity of institutions and geographical propinquity.

The relocation of the boundary line between the United States and Mexico

westward of the Rio Grande, under the convention of July 29, 1882, has

been unavoidably delayed, but I apprehend no difficulty in securing a

prolongation of the period for its accomplishment.

The lately concluded commercial treaty with Mexico still awaits the

stipulated legislation to carry its provisions into effect, for which

one year's additional time has been secured by a supplementary article

signed in February last and since ratified on both sides.

As this convention, so important to the commercial welfare of the

two adjoining countries, has been constitutionally confirmed by the

treaty-making branch, I express the hope that legislation needed to make

it effective may not be long delayed.

The large influx of capital and enterprise to Mexico from the United

States continues to aid in the development of the resources and in

augmenting the material well-being of our sister Republic. Lines of

railway, penetrating to the heart and capital of the country, bring

the two peoples into mutually beneficial intercourse, and enlarged

facilities of transit add to profitable commerce, create new markets,

and furnish avenues to otherwise isolated communities.

I have already adverted to the suggested construction of a ship railway

across the narrow formation of the territory of Mexico at Tehuantepec.

With the gradual recovery of Peru from the effects of her late

disastrous conflict with Chile, and with the restoration of civil

authority in that distracted country, it is hoped that pending war

claims of our citizens will be adjusted.

In conformity with notification given by the Government of Peru, the

existing treaties of commerce and extradition between the United States

and that country will terminate March 31, 1886.

Our good relationship with Russia continues.

An officer of the Navy, detailed for the purpose, is now on his way to

Siberia bearing the testimonials voted by Congress to those who

generously succored the survivors of the unfortunate _Jeannette_

expedition.

It is gratifying to advert to the cordiality of our intercourse with

Spain.

The long-pending claim of the owners of the ship _Masonic_ for loss

suffered through the admitted dereliction of the Spanish authorities in

the Philippine Islands has been adjusted by arbitration and an indemnity

awarded. The principle of arbitration in such cases, to which the United

States have long and consistently adhered, thus receives a fresh and

gratifying confirmation.

Other questions with Spain have been disposed of or are under diplomatic

consideration with a view to just and honorable settlement.

The operation of the commercial agreement with Spain of January

2-February 13, 1884, has been found inadequate to the commercial needs

of the United States and the Spanish Antilles, and the terms of the

agreement are subjected to conflicting interpretations in those islands.

Negotiations have been instituted at Madrid for a full treaty not open

to these objections and in the line of the general policy touching the

neighborly intercourse of proximate communities, to which I elsewhere

advert, and aiming, moreover, at the removal of existing burdens and

annoying restrictions; and although a satisfactory termination is

promised, I am compelled to delay its announcement.

An international copyright conference was held at Berne in September, on

the invitation of the Swiss Government. The envoy of the United States

attended as a delegate, but refrained from committing this Government to

the results, even by signing the recommendatory protocol adopted. The

interesting and important subject of international copyright has been

before you for several years. Action is certainly desirable to effect

the object in view; and while there may be question as to the relative

advantage of treating it by legislation or by specific treaty, the

matured views of the Berne conference can not fail to aid your

consideration of the subject.

The termination of the commercial treaty of 1862 between the United

States and Turkey has been sought by that Government. While there is

question as to the sufficiency of the notice of termination given, yet

as the commercial rights of our citizens in Turkey come under the

favored-nation guaranties of the prior treaty of 1830, and as equal

treatment is admitted by the Porte, no inconvenience can result from the

assent of this Government to the revision of the Ottoman tariffs, in

which the treaty powers have been invited to join.

Questions concerning our citizens in Turkey may be affected by the

Porte's nonacquiescence in the right of expatriation and by the

imposition of religious tests as a condition of residence, in which

this Government can not concur. The United States must hold in their

intercourse with every power that the status of their citizens is to be

respected and equal civil privileges accorded to them without regard

to creed, and affected by no considerations save those growing out of

domiciliary return to the land of original allegiance or of unfulfilled

personal obligations which may survive, under municipal laws, after such

voluntary return.

The negotiation with Venezuela relative to the rehearing of the awards

of the mixed commission constituted under the treaty of 1866 was resumed

in view of the recent acquiescence of the Venezuelan envoy in the

principal point advanced by this Government, that the effects of the old

treaty could only be set aside by the operation of a new convention. A

result in substantial accord with the advisory suggestions contained in

the joint resolution of March 3, 1883, has been agreed upon and will

shortly be submitted to the Senate for ratification.

Under section 3659 of the Revised Statutes all funds held in trust by

the United States and the annual interest accruing thereon, when not

otherwise required by treaty, are to be invested in stocks of the United

States bearing a rate of interest not less than 5 per cent per annum.

There being now no procurable stocks paying so high a rate of interest,

the letter of the statute is at present inapplicable, but its spirit is

subserved by continuing to make investments of this nature in current

stocks bearing the highest interest now paid. The statute, however,

makes no provision for the disposal of such accretions. It being

contrary to the general rule of this Government to allow interest on

claims, I recommend the repeal of the provision in question and the

disposition, under a uniform rule, of the present accumulations from

investment of trust funds.

The inadequacy of existing legislation touching citizenship and

naturalization demands your consideration.

While recognizing the right of expatriation, no statutory provision

exists providing means for renouncing citizenship by an American

citizen, native born or naturalized, nor for terminating and vacating

an improper acquisition of citizenship. Even a fraudulent decree of

naturalization can not now be canceled. The privilege and franchise of

American citizenship should be granted with care, and extended to those

only who intend in good faith to assume its duties and responsibilities

when attaining its privileges and benefits. It should be withheld from

those who merely go through the forms of naturalization with the intent

of escaping the duties of their original allegiance without taking upon

themselves those of their new status, or who may acquire the rights of

American citizenship for no other than a hostile purpose toward their

original governments. These evils have had many flagrant illustrations.

I regard with favor the suggestion put forth by one of my predecessors

that provision be made for a central bureau of record of the decrees of

naturalization granted by the various courts throughout the United

States now invested with that power.

The rights which spring from domicile in the United States, especially

when coupled with a declaration of intention to become a citizen, are

worthy of definition by statute. The stranger coming hither with intent

to remain, establishing his residence in our midst, contributing to the

general welfare, and by his voluntary act declaring his purpose to

assume the responsibilities of citizenship, thereby gains an inchoate

status which legislation may properly define. The laws of certain

States and Territories admit a domiciled alien to the local franchise,

conferring on him the rights of citizenship to a degree which places him

in the anomalous position of being a citizen of a State and yet not of

the United States within the purview of Federal and international law.

It is important within the scope of national legislation to define this

right of alien domicile as distinguished from Federal naturalization.

The commercial relations of the United States with their immediate

neighbors and with important areas of traffic near our shores suggest

especially liberal intercourse between them and us.

Following the treaty of 1883 with Mexico, which rested on the basis of a

reciprocal exemption from customs duties, other similar treaties were

initiated by my predecessor.

Recognizing the need of less obstructed traffic with Cuba and Puerto

Rico, and met by the desire of Spain to succor languishing interests

in the Antilles, steps were taken to attain those ends by a treaty of

commerce. A similar treaty was afterwards signed by the Dominican

Republic. Subsequently overtures were made by Her Britannic Majesty's

Government for a like mutual extension of commercial intercourse with

the British West Indian and South American dependencies, but without

result.

On taking office I withdrew for reexamination the treaties signed with

Spain and Santo Domingo, then pending before the Senate. The result has

been to satisfy me of the inexpediency of entering into engagements of

this character not covering the entire traffic.

These treaties contemplated the surrender by the United States of large

revenues for inadequate considerations. Upon sugar alone duties were

surrendered to an amount far exceeding all the advantages offered in

exchange. Even were it intended to relieve our consumers, it was evident

that so long as the exemption but partially covered our importation such

relief would be illusory. To relinquish a revenue so essential seemed

highly improvident at a time when new and large drains upon the Treasury

were contemplated. Moreover, embarrassing questions would have arisen

under the favored-nation clauses of treaties with other nations.

As a further objection, it is evident that tariff regulation by treaty

diminishes that independent control over its own revenues which is

essential for the safety and welfare of any government. Emergency

calling for an increase of taxation may at any time arise, and no

engagement with a foreign power should exist to hamper the action of the

Government.

By the fourteenth section of the shipping act approved June 26, 1884,

certain reductions and contingent exemptions from tonnage dues were made

as to vessels entering ports of the United States from any foreign port

in North and Central America, the West India Islands, the Bahamas and

Bermudas, Mexico, and the Isthmus as far as Aspinwall and Panama. The

Governments of Belgium, Denmark, Germany, Portugal, and Sweden and

Norway have asserted, under the favored-nation clause in their treaties

with the United States, a claim to like treatment in respect of vessels

coming to the United States from their home ports. This Government,

however, holds that the privileges granted by the act are purely

geographical, inuring to any vessel of any foreign power that may choose

to engage in traffic between this country and any port within the

defined zone, and no warrant exists under the most-favored-nation clause

for the extension of the privileges in question to vessels sailing to

this country from ports outside the limitation of the act.

Undoubtedly the relations of commerce with our near neighbors, whose

territories form so long a frontier line difficult to be guarded, and

who find in our country, and equally offer to us, natural markets,

demand special and considerate treatment. It rests with Congress to

consider what legislative action may increase facilities of intercourse

which contiguity makes natural and desirable.

I earnestly urge that Congress recast the appropriations for the

maintenance of the diplomatic and consular service on a footing

commensurate with the importance of our national interests. At every

post where a representative is necessary the salary should be so graded

as to permit him to live with comfort. With the assignment of adequate

salaries the so-called notarial extraofficial fees, which our officers

abroad are now permitted to treat as personal perquisites, should be

done away with. Every act requiring the certification and seal of the

officer should be taxable at schedule rates and the fee therefor

returned to the Treasury. By restoring these revenues to the public use

the consular service would be self-supporting, even with a liberal

increase of the present low salaries.

In further prevention of abuses a system of consular inspection should

be instituted.

The appointment of a limited number of secretaries of legation at large,

to be assigned to duty wherever necessary, and in particular for

temporary service at missions which for any cause may be without a head,

should also be authorized.

I favor also authorization for the detail of officers of the regular

service as military or naval attachés at legations.

Some foreign governments do not recognize the union of consular with

diplomatic functions. Italy and Venezuela will only receive the

appointee in one of his two capacities, but this does not prevent the

requirement of a bond and submission to the responsibilities of an

office whose duties he can not discharge. The superadded title of

consul-general should be abandoned at all missions.

I deem it expedient that a well-devised measure for the reorganization

of the extraterritorial courts in Oriental countries should replace the

present system, which labors under the disadvantage of combining

judicial and executive functions in the same office.

In several Oriental countries generous offers have been made of

premises for housing the legations of the United States. A grant of

land for that purpose was made some years since by Japan, and has been

referred to in the annual messages of my predecessor. The Siamese

Government has made a gift to the United States of commodious quarters

in Bangkok. In Korea the late minister was permitted to purchase a

building from the Government for legation use. In China the premises

rented for the legation are favored as to local charges. At Tangier

the house occupied by our representative has been for many years the

property of this Government, having been given for that purpose in 1822

by the Sultan of Morocco. I approve the suggestion heretofore made,

that, in view of the conditions of life and administration in the

Eastern countries, the legation buildings in China, Japan, Korea, Siam,

and perhaps Persia, should be owned and furnished by the Government

with a view to permanency and security. To this end I recommend that

authority be given to accept the gifts adverted to in Japan and Siam,

and to purchase in the other countries named, with provision for

furniture and repairs. A considerable saving in rentals would result.

The World's Industrial Exposition, held at New Orleans last winter, with

the assistance of the Federal Government, attracted a large number of

foreign exhibits, and proved of great value in spreading among the

concourse of visitors from Mexico and Central and South America a wider

knowledge of the varied manufactures and productions of this country and

their availability in exchange for the productions of those regions.

Past Congresses have had under consideration the advisability of

abolishing the discrimination made by the tariff laws in favor of the

works of American artists. The odium of the policy which subjects to

a high rate of duty the paintings of foreign artists and exempts the

productions of American artists residing abroad, and who receive

gratuitously advantages and instruction, is visited upon our citizens

engaged in art culture in Europe, and has caused them with practical

unanimity to favor the abolition of such an ungracious distinction; and

in their interest, and for other obvious reasons, I strongly recommend

it.

The report of the Secretary of the Treasury fully exhibits the condition

of the public finances and of the several branches of the Government

connected with his Department. The suggestions of the Secretary relating

to the practical operations of this important Department, and his

recommendations in the direction of simplification and economy,

particularly in the work of collecting customs duties, are especially

urged upon the attention of Congress.

The ordinary receipts from all sources for the fiscal year ended June

30, 1885, were $322,690,706.38. Of this sum $181,471,939.34 was received

from customs and $112,498,725.54 from internal revenue. The total

receipts, as given above, were $24,829,163.54 less than those for the

year ended June 30, 1884. This diminution embraces a falling off of

$13,595,550.42 in the receipts from customs and $9,687,346.97 in the

receipts from internal revenue.

The total ordinary expenditures of the Government for the fiscal year

were $260,226,935.50, leaving a surplus in the Treasury at the close of

the year of $63,463,771.27. This is $40,929,854.32 less than the surplus

reported at the close of the previous year.

The expenditures are classified as follows:

For civil expenses $23,826,942.11

For foreign intercourse 5,439,609.11

For Indians 6,552,494.63

For pensions 56,102,267.49

For the military, including river and harbor 42,670,578.47

improvements and arsenals

For the Navy, including vessels, machinery, and 16,021,079.69

improvements of navy-yards

For interest on the public debt 51,386,256.47

For the District of Columbia 3,499,650.95

For miscellaneous expenditures, including public 54,728,056.21

buildings, light-houses, and collecting the revenue

The amount paid on the public debt during the fiscal year ended June 30,

1885, was $45,993,235.43, and there has been paid since that date and up

to November 1, 1885, the sum of $369,828, leaving the amount of the debt

at the last-named date $1,514,475,860.47. There was, however, at that

time in the Treasury, applicable to the general purposes of the

Government, the sum of $66,818,292.38.

The total receipts for the current fiscal year ending June 30, 1886,

ascertained to October 1, 1885, and estimated for the remainder of the

year, are $315,000,000. The expenditures ascertained and estimated for

the same time are $245,000,000, leaving a surplus at the close of the

year estimated at $70,000,000.

The value of the exports from the United States to foreign countries

during the last fiscal year was as follows:

Domestic merchandise $726,682,946.00

Foreign merchandise 15,506,809.00

742,189,755.00

Gold 8,477,892.00

Silver 33,753,633.00

784,421,280.00

Some of the principal exports, with their values and the percentage they

respectively bear to the total exportation, are given as follows:

Articles. Value. Percentage.

Cotton and cotton manufactures $213,799,049 29.42

Breadstuffs 160,370,821 22.07

Provisions 107,332,456 14.77

Oils--mineral, vegetable, and animal 54,326,202 7.48

Tobacco and its manufactures 24,767,305 3.41

Wood and its manufactures 21,464,322 2.95

Our imports during the year were as follows:

Merchandise $579,580,053.80

Gold 26,691,696.00

Silver 16,550,627.00

622,822,376.80

The following are given as prominent articles of import during the year,

with their values and the percentage they bear to the total importation:

Articles. Value. Percentage.

Sugar and molasses $76,738,713 13.29

Coffee 46,723,318 8.09

Wool and its manufactures 44,656,482 7.73

Silk and its manufactures 40,393,002 6.99

Chemicals, dyes, drugs, and medicines 35,070,816 6.07

Iron and steel and their manufactures 34,563,689 5.98

Flax, hemp, jute, and their manufactures 32,854,874 5.69

Cotton and its manufactures 28,152,001 4.88

Hides and skins other than fur skins 20,586,443 3.56

Of the entire amount of duties collected 70 per cent was collected from

the following articles of import:

Percentage.

Sugar and molasses 29

Wool and its manufactures 15

Silk and its manufactures 8

Iron and steel and their manufactures 7

Cotton manufactures 6

Flax, hemp, and jute, and their manufactures 5

The fact that our revenues are in excess of the actual needs of an

economical administration of the Government justifies a reduction in the

amount exacted from the people for its support. Our Government is but

the means established by the will of a free people by which certain

principles are applied which they have adopted for their benefit and

protection; and it is never better administered and its true spirit is

never better observed than when the people's taxation for its support is

scrupulously limited to the actual necessity of expenditure and

distributed according to a just and equitable plan.

The proposition with which we have to deal is the reduction of the

revenue received by the Government, and indirectly paid by the people,

from customs duties. The question of free trade is not involved, nor is

there now any occasion for the general discussion of the wisdom or

expediency of a protective system.

Justice and fairness dictate that in any modification of our present

laws relating to revenue the industries and interests which have

been encouraged by such laws, and in which our citizens have large

investments, should not be ruthlessly injured or destroyed. We should

also deal with the subject in such manner as to protect the interests of

American labor, which is the capital of our workingmen. Its stability

and proper remuneration furnish the most justifiable pretext for a

protective policy.

Within these limitations a certain reduction should be made in our

customs revenue. The amount of such reduction having been determined,

the inquiry follows, Where can it best be remitted and what articles can

best be released from duty in the interest of our citizens?

I think the reduction should be made in the revenue derived from a

tax upon the imported necessaries of life. We thus directly lessen the

cost of living in every family of the land and release to the people in

every humble home a larger measure of the rewards of frugal industry.

During the year ended November 1, 1885, 145 national banks were

organized, with an aggregate capital of $16,938,000, and circulating

notes have been issued to them amounting to $4,274,910. The whole number

of these banks in existence on the day above mentioned was 2,727.

The very limited amount of circulating notes issued by our national

banks, compared with the amount the law permits them to issue upon a

deposit of bonds for their redemption, indicates that the volume of our

circulating medium may be largely increased through this

instrumentality.

Nothing more important than the present condition of our currency and

coinage can claim your attention.

Since February, 1878, the Government has, under the compulsory

provisions of law, purchased silver bullion and coined the same at the

rate of more than $2,000,000 every month. By this process up to the

present date 215,759,431 silver dollars have been coined.

A reasonable appreciation of a delegation of power to the General

Government would limit its exercise, without express restrictive words,

to the people's needs and the requirements of the public welfare.

Upon this theory the authority to "coin money" given to Congress by the

Constitution, if it permits the purchase by the Government of bullion

for coinage in any event, does not justify such purchase and coinage to

an extent beyond the amount needed for a sufficient circulating medium.

The desire to utilize the silver product of the country should not lead

to a misuse or the perversion of this power.

The necessity for such an addition to the silver currency of the nation

as is compelled by the silver-coinage act is negatived by the fact that

up to the present time only about 50,000,000 of the silver dollars so

coined have actually found their way into circulation, leaving more than

165,000,000 in the possession of the Government, the custody of which

has entailed a considerable expense for the construction of vaults for

its deposit. Against this latter amount there are outstanding silver

certificates amounting to about $93,000,000.

Every month two millions of gold in the public Treasury are paid out for

two millions or more of silver dollars, to be added to the idle mass

already accumulated.

If continued long enough, this operation will result in the substitution

of silver for all the gold the Government owns applicable to its general

purposes. It will not do to rely upon the customs receipts of the

Government to make good this drain of gold, because the silver thus

coined having been made legal tender for all debts and dues, public and

private, at times during the last six months 58 per cent of the receipts

for duties has been in silver or silver certificates, while the average

within that period has been 20 per cent. The proportion of silver and

its certificates received by the Government will probably increase as

time goes on, for the reason that the nearer the period approaches when

it will be obliged to offer silver in payment of its obligations the

greater inducement there will be to hoard gold against depreciation in

the value of silver or for the purpose of speculating.

This hoarding of gold has already begun.

When the time comes that gold has been withdrawn from circulation, then

will be apparent the difference between the real value of the silver

dollar and a dollar in gold, and the two coins will part company.

Gold, still the standard of value and necessary in our dealings with

other countries, will be at a premium over silver; banks which have

substituted gold for the deposits of their customers may pay them with

silver bought with such gold, thus making a handsome profit; rich

speculators will sell their hoarded gold to their neighbors who need it

to liquidate their foreign debts, at a ruinous premium over silver, and

the laboring men and women of the land, most defenseless of all, will

find that the dollar received for the wage of their toil has sadly

shrunk in its purchasing power. It may be said that the latter result

will be but temporary, and that ultimately the price of labor will be

adjusted to the change; but even if this takes place the wage-worker

can not possibly gain, but must inevitably lose, since the price he is

compelled to pay for his living will not only be measured in a coin

heavily depreciated and fluctuating and uncertain in its value, but

this uncertainty in the value of the purchasing medium will be made

the pretext for an advance in prices beyond that justified by actual

depreciation.

The words uttered in 1834 by Daniel Webster in the Senate of the United

States are true to-day:

The very man of all others who has the deepest interest in a sound

currency, and who suffers most by mischievous legislation in money

matters, is the man who earns his daily bread by his daily toil.

The most distinguished advocate of bimetallism, discussing our silver

coinage, has lately written:

No American citizen's hand has yet felt the sensation of cheapness,

either in receiving or expending the silver-act dollars.

And those who live by labor or legitimate trade never will feel that

sensation of cheapness. However plenty silver dollars may become, they

will not be distributed as gifts among the people; and if the laboring

man should receive four depreciated dollars where he now receives but

two, he will pay in the depreciated coin more than double the price he

now pays for all the necessaries and comforts of life.

Those who do not fear any disastrous consequences arising from the

continued compulsory coinage of silver as now directed by law, and who

suppose that the addition to the currency of the country intended as its

result will be a public benefit, are reminded that history demonstrates

that the point is easily reached in the attempt to float at the same

time two sorts of money of different excellence when the better will

cease to be in general circulation. The hoarding of gold which has

already taken place indicates that we shall not escape the usual

experience in such cases. So if this silver coinage be continued we may

reasonably expect that gold and its equivalent will abandon the field of

circulation to silver alone. This of course must produce a severe

contraction of our circulating medium, instead of adding to it.

It will not be disputed that any attempt on the part of the Government

to cause the circulation of silver dollars worth 80 cents side by

side with gold dollars worth 100 cents, even within the limit that

legislation does not run counter to the laws of trade, to be successful

must be seconded by the confidence of the people that both coins will

retain the same purchasing power and be interchangeable at will.

A special effort has been made by the Secretary of the Treasury to

increase the amount of our silver coin in circulation; but the fact

that a large share of the limited amount thus put out has soon returned

to the public Treasury in payment of duties leads to the belief that the

people do not now desire to keep it in hand, and this, with the evident

disposition to hoard gold, gives rise to the suspicion that there

already exists a lack of confidence among the people touching our

financial processes. There is certainly not enough silver now in

circulation to cause uneasiness, and the whole amount coined and now on

hand might after a time be absorbed by the people without apprehension;

but it is the ceaseless stream that threatens to overflow the land which

causes fear and uncertainty.

What has been thus far submitted upon this subject relates almost

entirely to considerations of a home nature, unconnected with the

bearing which the policies of other nations have upon the question. But

it is perfectly apparent that a line of action in regard to our currency

can not wisely be settled upon or persisted in without considering the

attitude on the subject of other countries with whom we maintain

intercourse through commerce, trade, and travel. An acknowledgment of

this fact is found in the act by virtue of which our silver is

compulsorily coined. It provides that--

The President shall invite the governments of the countries composing

the Latin Union, so called, and of such other European nations as he may

deem advisable, to join the United States in a conference to adopt a

common ratio between gold and silver for the purpose of establishing

internationally the use of bimetallic money and securing fixity of

relative value between those metals.

This conference absolutely failed, and a similar fate has awaited all

subsequent efforts in the same direction. And still we continue our

coinage of silver at a ratio different from that of any other nation.

The most vital part of the silver-coinage act remains inoperative and

unexecuted, and without an ally or friend we battle upon the silver

field in an illogical and losing contest.

A Compilation of the Messages and Papers of the Presidents. Volume 8, part 3: Grover Cleveland, First Term · 第 79 / 872 题