I present this subject to the earnest consideration of Congress.

In the meantime, and unless Congress otherwise direct, I shall not oppose

the landing of any telegraphic cable which complies with and assents to the

points above enumerated, but will feel it my duty to prevent the landing of

any which does not conform to the first and second points as stated, and

which will not stipulate to concede to this Government the precedence in

the transmission of its official messages and will not enter into a

satisfactory arrangement with regard to its charges.

Among the pressing and important subjects to which, in my opinion, the

attention of Congress should be directed are those relating to fraudulent

naturalization and expatriation.

The United States, with great liberality, offers its citizenship to all who

in good faith comply with the requirements of law. These requirements are

as simple and upon as favorable terms to the emigrant as the high privilege

to which he is admitted can or should permit. I do not propose any

additional requirements to those which the law now demands; but the very

simplicity and the want of unnecessary formality in our law have made

fraudulent naturalization not infrequent, to the discredit and injury of

all honest citizens, whether native or naturalized. Cases of this character

are continually being brought to the notice of the Government by our

representatives abroad, and also those of persons resident in other

countries, most frequently those who, if they have remained in this country

long enough to entitle them to become naturalized, have generally not much

overpassed that period, and have returned to the country of their origin,

where they reside, avoiding all duties to the United States by their

absence, and claiming to be exempt from all duties to the country of their

nativity and of their residence by reason of their alleged naturalization.

It is due to this Government itself and to the great mass of the

naturalized citizens who entirely, both in name and in fact, become

citizens of the United States that the high privilege of citizenship of the

United States should not be held by fraud or in derogation of the laws and

of the good name of every honest citizen. On many occasions it has been

brought to the knowledge of the Government that certificates of

naturalization are held and protection or interference claimed by parties

who admit that not only they were not within the United States at the time

of the pretended naturalization, but that they have never resided in the

United States; in others the certificate and record of the court show on

their face that the person claiming to be naturalized had not resided the

required time in the United States; in others it is admitted upon

examination that the requirements of law have not been complied with; in

some cases, even, such certificates have been matter of purchase. These are

not isolated cases, arising at rare intervals, but of common occurrence,

and which are reported from all quarters of the globe. Such occurrences can

not, and do not, fail to reflect upon the Government and injure all honest

citizens. Such a fraud being discovered, however, there is no practicable

means within the control of the Government by which the record of

naturalization can be vacated; and should the certificate be taken up, as

it usually is, by the diplomatic and consular representatives of the

Government to whom it may have been presented, there is nothing to prevent

the person claiming to have been naturalized from obtaining a new

certificate from the court in place of that which has been taken from him.

The evil has become so great and of such frequent occurrence that I can not

too earnestly recommend that some effective measures be adopted to provide

a proper remedy and means for the vacating of any record thus fraudulently

made, and of punishing the guilty parties to the transaction.

In this connection I refer also to the question of expatriation and the

election of nationality.

The United States was foremost in upholding the right of expatriation, and

was principally instrumental in overthrowing the doctrine of perpetual

allegiance. Congress has declared the right of expatriation to be a natural

and inherent right of all people; but while many other nations have enacted

laws providing what formalities shall be necessary to work a change of

allegiance, the United States has enacted no provisions of law and has in

no respect marked out how and when expatriation may be accomplished by its

citizens. Instances are brought to the attention of the Government where

citizens of the United States, either naturalized or native born, have

formally become citizens or subjects of foreign powers, but who,

nevertheless, in the absence of any provisions of legislation on this

question, when involved in difficulties or when it seems to be their

interest, claim to be citizens of the United States and demand the

intervention of a Government which they have long since abandoned and to

which for years they have rendered no service nor held themselves in any

way amenable.

In other cases naturalized citizens, immediately after naturalization, have

returned to their native country; have become engaged in business; have

accepted offices or pursuits inconsistent with American citizenship, and

evidence no intent to return to the United States until called upon to

discharge some duty to the country where they are residing, when at once

they assert their citizenship and call upon the representatives of the

Government to aid them in their unjust pretensions. It is but justice to

all bona fide citizens that no doubt should exist on such questions, and

that Congress should determine by enactment of law how expatriation may be

accomplished and change of citizenship be established.

I also invite your attention to the necessity of regulating by law the

status of American women who may marry foreigners, and of defining more

fully that of children born in a foreign country of American parents who

may reside abroad; and also of some further provision regulating or giving

legal effect to marriages of American citizens contracted in foreign

countries. The correspondence submitted herewith shows a few of the

constantly occurring questions on these points presented to the

consideration of the Government. There are few subjects to engage the

attention of Congress on which more delicate relations or more important

interests are dependent.

In the month of July last the building erected for the Department of State

was taken possession of and occupied by that Department. I am happy to

announce that the archives and valuable papers of the Government in the

custody of that Department are now safely deposited and properly cared

for.

The report of the Secretary of the Treasury shows the receipts from customs

for the fiscal year ending June 30, 1874, to have been $163,103,833.69, and

for the fiscal year ending June 30, 1875, to have been $157,267,722.35, a

decrease for the last fiscal year of $5,936,111.34. Receipts from internal

revenue for the year ending the 30th of June, 1874, were $102,409,784.90,

and for the year ending June 30, 1875, $110,007,493.58; increase,

$7,597,708.68.

The report also shows a complete history of the workings of the Department

for the last year, and contains recommendations for reforms and for

legislation which I concur in, but can not comment on so fully as I should

like to do if space would permit, but will confine myself to a few

suggestions which I look upon as vital to the best interests of the whole

people--coming within the purview of "Treasury;" I mean specie resumption.

Too much stress can not be laid upon this question, and I hope Congress may

be induced, at the earliest day practicable, to insure the consummation of

the act of the last Congress, at its last session, to bring about specie

resumption "on and after the 1st of January, 1879," at furthest. It would

be a great blessing if this could be consummated even at an earlier day.

Nothing seems to me more certain than that a full, healthy, and permanent

reaction can not take place in favor of the industries and financial

welfare of the country until we return to a measure of values recognized

throughout the civilized world. While we use a currency not equivalent to

this standard the world's recognized standard, specie, becomes a commodity

like the products of the soil, the surplus seeking a market wherever there

is a demand for it.

Under our present system we should want none, nor would we have any, were

it not that customs dues must be paid in coin and because of the pledge to

pay interest on the public debt in coin. The yield of precious metals would

flow out for the purchase of foreign productions and the United States

"hewers of wood and drawers of water," because of wiser legislation on the

subject of finance by the nations with whom we have dealings. I am not

prepared to say that I can suggest the best legislation to secure the end

most heartily recommended. It will be a source of great gratification to me

to be able to approve any measure of Congress looking effectively toward

securing "resumption."

Unlimited inflation would probably bring about specie payments more

speedily than any legislation looking to redemption of the legal-tenders in

coin; but it would be at the expense of honor. The legal-tenders would have

no value beyond settling present liabilities, or, properly speaking,

repudiating them. They would buy nothing after debts were all settled.

There are a few measures which seem to me important in this connection and

which I commend to your earnest consideration:

A repeal of so much of the legal-tender act as makes these notes receivable

for debts contracted after a date to be fixed in the act itself, say not

later than the 1st of January, 1877. We should then have quotations at real

values, not fictitious ones. Gold would no longer be at a premium, but

currency at a discount. A healthy reaction would set in at once, and with

it a desire to make the currency equal to what it purports to be. The

merchants, manufacturers, and tradesmen of every calling could do business

on a fair margin of profit, the money to be received having an unvarying

value. Laborers and all classes who work for stipulated pay or salary would

receive more for their income, because extra profits would no longer be

charged by the capitalists to compensate for the risk of a downward

fluctuation in the value of the currency.

Second. That the Secretary of the Treasury be authorized to redeem, say,

not to exceed $2,000,000 monthly of legal-tender notes, by issuing in their

stead a long bond, bearing interest at the rate of 3.65 per cent per annum,

of denominations ranging from $50 up to $1,000 each. This would in time

reduce the legal-tender notes to a volume that could be kept afloat without

demanding redemption in large sums suddenly.

Third. That additional power be given to the Secretary of the Treasury to

accumulate gold for final redemption, either by increasing revenue,

curtailing expenses, or both (it is preferable to do both); and I recommend

that reduction of expenditures be made wherever it can be done without

impairing Government obligations or crippling the due execution thereof.

One measure for increasing the revenue--and the only one I think of--is the

restoration of the duty on tea and coffee. These duties would add probably

$18,000,000 to the present amount received from imports, and would in no

way increase the prices paid for those articles by the consumers.

These articles are the products of countries collecting revenue from

exports, and as we, the largest consumers, reduce the duties they

proportionately increase them. With this addition to the revenue, many

duties now collected, and which give but an insignificant return for the

cost of collection, might be remitted, and to the direct advantage of

consumers at home.

I would mention those articles which enter into manufactures of all sorts.

All duty paid upon such articles goes directly to the cost of the article

when manufactured here, and must be paid for by the consumers. These duties

not only come from the consumers at home, but act as a protection to

foreign manufacturers of the same completed articles in our own and distant

markets.

I will suggest or mention another subject bearing upon the problem of "how

to enable the Secretary of the Treasury to accumulate balances." It is to

devise some better method of verifying claims against the Government than

at present exists through the Court of Claims, especially those claims

growing out of the late war. Nothing is more certain than that a very large

percentage of the amounts passed and paid are either wholly fraudulent or

are far in excess of the real losses sustained. The large amount of losses

proven--on good testimony according to existing laws, by affidavits of

fictitious or unscrupulous persons--to have been sustained on small farms

and plantations are not only far beyond the possible yield of those places

for any one year, but, as everyone knows who has had experience in tilling

the soil and who has visited the scenes of these spoliations, are in many

instances more than the individual claimants were ever worth, including

their personal and real estate.

The report of the Attorney-General, which will be submitted to Congress at

an early day, will contain a detailed history of awards made and of claim

pending of the class here referred to.

The report of the Secretary of War, accompanying this message, gives a

detailed account of Army operations for the year just passed, expenses for

maintenance, etc., with recommendations for legislation to which I

respectfully invite your attention. To some of these I invite special

attention:

First. The necessity of making $300,000 of the appropriation for the

Subsistence Department available before the beginning of the next fiscal

year. Without this provision troops at points distant from supply

production must either go without food or existing laws must be violated.

It is not attended with cost to the Treasury.

Second. His recommendation for the enactment of a system of annuities for

the families of deceased officers by voluntary deductions from the monthly

pay of officers. This again is not attended with burden upon the Treasury,

and would for the future relieve much distress which every old army officer

has witnessed in the past--of officers dying suddenly or being killed,

leaving families without even the means of reaching their friends, if

fortunate enough to have friends to aid them.

Third. The repeal of the law abolishing mileage, and a return to the old

system.

Fourth. The trial with torpedoes under the Corps of Engineers, and

appropriation for the same. Should war ever occur between the United States

and any maritime power, torpedoes will be among if not the most effective

and cheapest auxiliary for the defense of harbors, and also in aggressive

operations, that we can have. Hence it is advisable to learn by experiment

their best construction and application, as well as effect.

Fifth. A permanent organization for the Signal-Service Corps. This service

has now become a necessity of peace as well as war, under the advancement

made by the present able management.

Sixth. A renewal of the appropriation for compiling the official records of

the war, etc.

The condition of our Navy at this time is a subject of satisfaction. It

does not contain, it is true, any of the powerful cruising ironclads which

make so much of the maritime strength of some other nations, but neither

our continental situation nor our foreign policy requires that we should

have a large number of ships of this character, while this situation and

the nature of our ports combine to make those of other nations little

dangerous to us under any circumstances.

Our Navy does contain, however, a considerable number of ironclads of the

monitor class, which, though not properly cruisers, are powerful and

effective for harbor defense and for operations near our own shores. Of

these all the single-turreted ones, fifteen in number, have been

substantially rebuilt, their rotten wooden beams replaced with iron, their

hulls strengthened, and their engines and machinery thoroughly repaired, so

that they are now in the most efficient condition and ready for sea as soon

as they can be manned and put in commission.

The five double-turreted ironclads belonging to our Navy, by far the most

powerful of our ships for fighting purposes, are also in hand undergoing

complete repairs, and could be ready for sea in periods varying from four

to six months. With these completed according to the present design and our

two iron torpedo boats now ready, our ironclad fleet will be, for the

purposes of defense at home, equal to any force that can readily be brought

against it.

Of our wooden navy also cruisers of various sizes, to the number of about

forty, including those now in commission, are in the Atlantic, and could be

ready for duty as fast as men could be enlisted for those not already in

commission. Of these, one-third are in effect new ships, and though some of

the remainder need considerable repairs to their boilers and machinery,

they all are, or can readily be made, effective.

This constitutes a fleet of more than fifty war ships, of which fifteen are

ironclad, now in hand on the Atlantic coast. The Navy has been brought to

this condition by a judicious and practical application of what could be

spared from the current appropriations of the last few years and from that

made to meet the possible emergency of two years ago. It has been done

quietly, without proclamation or display, and though it has necessarily

straitened the Department in its ordinary expenditure, and, as far as the

ironclads are concerned, has added nothing to the cruising force of the

Navy, yet the result is not the less satisfactory because it is to be found

in a great increase of real rather than apparent force. The expenses

incurred in the maintenance of an effective naval force in all its branches

are necessarily large, but such force is essential to our position,

relations, and character, and affects seriously the weight of our

principles and policy throughout the whole sphere of national

responsibilities.

The estimates for the regular support of this branch of the service for the

next year amount to a little less in the aggregate than those made for the

current year; but some additional appropriations are asked for objects not

included in the ordinary maintenance of the Navy, but believed to be of

pressing importance at this time. It would, in my opinion, be wise at once

to afford sufficient means for the immediate completion of the five

double-turreted monitors now undergoing repairs, which must otherwise

advance slowly, and only as money can be spared from current expenses.

Supplemented by these, our Navy, armed with the destructive weapons of

modern warfare, manned by our seamen, and in charge of our instructed

officers, will present a force powerful for the home purposes of a

responsible though peaceful nation.

The report of the Postmaster-General herewith transmitted gives a full

history of the workings of the Department for the year just past. It will

be observed that the deficiency to be supplied from the General Treasury is

increased over the amount required for the preceding year. In a country so

vast in area as the United States, with large portions sparsely settled, it

must be expected that this important service will be more or less a burden

upon the Treasury for many years to come. But there is no branch of the

public service which interests the whole people more than that of cheap and

rapid transmission of the mails to every inhabited part of our territory.

Next to the free school, the post-office is the great educator of the

people, and it may well receive the support of the General Government.

The subsidy of $150,000 per annum given to vessels of the United States for

carrying the mails between New York and Rio de Janeiro having ceased on the

30th day of September last, we are without direct mail facilities with the

South American States. This is greatly to be regretted, and I do not

hesitate to recommend the authorization of a renewal of that contract, and

also that the service may be increased from monthly to semi-monthly trips.

The commercial advantages to be gained by a direct line of American

steamers to the South American States will far outweigh the expense of the

service.

By act of Congress approved March 3, 1875, almost all matter, whether

properly mail matter or not, may be sent any distance through the mails, in

packages not exceeding 4 pounds in weight, for the sum of 16 cents per

pound. So far as the transmission of real mail matter goes, this would seem

entirely proper; but I suggest that the law be so amended as to exclude

from the mails merchandise of all descriptions, and limit this

transportation to articles enumerated, and which may be classed as mail

matter proper.

The discovery of gold in the Black Hills, a portion of the Sioux

Reservation, has had the effect to induce a large emigration of miners to

that point. Thus far the effort to protect the treaty rights of the Indians

to that section has been successful, but the next year will certainly

witness a large increase of such emigration. The negotiations for the

relinquishment of the gold fields having failed, it will be necessary for

Congress to adopt some measures to relieve the embarrassment growing out of

the causes named. The Secretary of the Interior suggests that the supplies

now appropriated for the sustenance of that people, being no longer

obligatory under the treaty of 1868, but simply a gratuity, may be issued

or withheld at his discretion.

The condition of the Indian Territory, to which I have referred in several

of my former annual messages, remains practically unchanged. The Secretary

of the Interior has taken measures to obtain a full report of the condition

of that Territory, and will make it the subject of a special report at an

early day. It may then be necessary to make some further recommendation in

regard to legislation for the government of that Territory.

The steady growth and increase of the business of the Patent Office

indicates in some measure the progress of the industrial activity of the

country. The receipts of the office are in excess of its expenditures, and

the office generally is in a prosperous and satisfactory condition.

The report of the General Land Office shows that there were 2,459,601 acres

less disposed of during this than during the last year. More than one-half

of this decrease was in lands disposed of under the homestead and

timber-culture laws. The cause of this decrease is supposed to be found in

the grasshopper scourge and the droughts which prevailed so extensively in

some of the frontier States and Territories during that time as to

discourage and deter entries by actual settlers. The cash receipts were

less by $690,322.23 than during the preceding year.

The entire surveyed area of the public domain is 680,253,094 acres, of

which 26,077,531 acres were surveyed during the past year, leaving

1,154,471,762 acres still unsurveyed.

The report of the Commissioner presents many interesting suggestions in

regard to the management and disposition of the public domain and the

modification of existing laws, the apparent importance of which should

insure for them the careful consideration of Congress.

The number of pensioners still continues to decrease, the highest number

having been reached during the year ending June 30, 1873. During the last

year 11,557 names were added to the rolls, and 12,977 were dropped

therefrom, showing a net decrease of 1,420. But while the number of

pensioners has decreased, the annual amount due on the pension rolls has

increased $44,733.13. This is caused by the greatly increased average rate

of pensions, which, by the liberal legislation of Congress, has increased

from $90.26 in 1872 to $103.91 in 1875 to each invalid pensioner, an

increase in the average rate of 15 per cent in the three years. During the

year ending June 30, 1875, there was paid on account of pensions, including

the expenses of disbursement, $29,683,116, being $910,632 less than was

paid the preceding year. This reduction in amount of expenditures was

produced by the decrease in the amount of arrearages due on allowed claims

and on pensions the rate of which was increased by the legislation of the

preceding session of Congress. At the close of the last fiscal year there

were on the pension rolls 234,821 persons, of whom 210,363 were army

pensioners, 105,478 being invalids and 104,885 widows and dependent

relatives; 3,420 were navy pensioners, of whom 1,636 were invalids and

1,784 widows and dependent relatives; 21,038 were pensioners of the War of

1812, 15,875 of whom were survivors and 5,163 were widows.

It is estimated that $29,535,000 will be required for the payment of

pensions for the next fiscal year, an amount $965,000 less than the

estimate for the present year.

The geological explorations have been prosecuted with energy during the

year, covering an area of about 40,000 square miles in the Territories of

Colorado, Utah, and New Mexico, developing the agricultural and mineral

resources and furnishing interesting scientific and topographical details

of that region.

The method for the treatment of the Indians adopted at the beginning of my

first term has been steadily pursued, and with satisfactory and encouraging

results. It has been productive of evident improvement in the condition of

that race, and will be continued, with only such modifications as further

experience may indicate to be necessary.

The board heretofore appointed to take charge of the articles and materials

pertaining to the War, the Navy, the Treasury, the Interior, and the

Post-Office Departments, and the Department of Agriculture, the Smithsonian

Institution, and the Commission of Food Fishes, to be contributed, under

the legislation of last session, to the international exhibition to be held

at Philadelphia during the centennial year 1876, has been diligent in the

discharge of the duties which have devolved upon it; and the preparations

so far made with the means at command give assurance that the governmental

contribution will be made one of the marked characteristics of the

exhibition. The board has observed commendable economy in the matter of the

erection of a building for the governmental exhibit, the expense of which

it is estimated will not exceed, say, $80,000. This amount has been

withdrawn, under the law, from the appropriations of five of the principal

Departments, which leaves some of those Departments without sufficient

means to render their respective practical exhibits complete and

satisfactory. The exhibition being an international one, and the Government

being a voluntary contributor, it is my opinion that its contribution

should be of a character, in quality and extent, to sustain the dignity and

credit of so distinguished a contributor. The advantages to the country of

a creditable display are, in an international point of view, of the first

importance, while an indifferent or uncreditable participation by the

Government would be humiliating to the patriotic feelings of our people

themselves. I commend the estimates of the board for the necessary

additional appropriations to the favorable consideration of Congress.

The powers of Europe almost without exception, many of the South American

States, and even the more distant Eastern powers have manifested their

friendly sentiments toward the United States and the interest of the world

in our progress by taking steps to join with us in celebrating the

centennial of the nation, and I strongly recommend that a more national

importance be given to this exhibition by such legislation and by such

appropriation as will insure its success. Its value in bringing to our

shores innumerable useful works of art and skill, the commingling of the

citizens of foreign countries and our own, and the interchange of ideas and

manufactures will far exceed any pecuniary outlay we may make.

I transmit herewith the report of the Commissioner of Agriculture, together

with the reports of the Commissioners, the board of audit, and the board of

health of the District of Columbia, to all of which I invite your

attention.

The Bureau of Agriculture has accomplished much in disseminating useful

knowledge to the agriculturist, and also in introducing new and useful

productions adapted to our soil and climate, and is worthy of the continued

encouragement of the Government.

The report of the Commissioner of Education, which accompanies the report

of the Secretary of the Interior, shows a gratifying progress in

educational matters.

In nearly every annual message that I have had the honor of transmitting to

Congress I have called attention to the anomalous, not to say scandalous,

condition of affairs existing in the Territory of Utah, and have asked for

definite legislation to correct it. That polygamy should exist in a free,

enlightened, and Christian country, without the power to punish so flagrant

a crime against decency and morality, seems preposterous. True, there is no

law to sustain this unnatural vice; but what is needed is a law to punish

it as a crime, and at the same time to fix the status of the innocent

children, the offspring of this system, and of the possibly innocent plural

wives. But as an institution polygamy should be banished from the land.

While this is being done I invite the attention of Congress to another,

though perhaps no less an evil--the importation of Chinese women, but few

of whom are brought to our shores to pursue honorable or useful

occupations.

Observations while visiting the Territories of Wyoming, Utah, and Colorado

during the past autumn convinced me that existing laws regulating the

disposition of public lands, timber, etc., and probably the mining laws

themselves, are very defective and should be carefully amended, and at an

early day. Territory where cultivation of the soil can only be followed by

irrigation, and where irrigation is not practicable the lands can only be

used as pasturage, and this only where stock can reach water (to quench its

thirst), can not be governed by the same laws as to entries as lands every

acre of which is an independent estate by itself.

Land must be held in larger quantities to justify the expense of conducting

water upon it to make it fruitful, or to justify utilizing it as pasturage.

The timber in most of the Territories is principally confined to the

mountain regions, which are held for entry in small quantities only, and as

mineral lands. The timber is the property of the United States, for the

disposal of which there is now no adequate law. The settler must become a

consumer of this timber, whether he lives upon the plain or engages in

working the mines. Hence every man becomes either a trespasser himself or

knowingly a patron of trespassers.

My opportunities for observation were not sufficient to justify me in

recommending specific legislation on these subjects, but I do recommend

that a joint committee of the two Houses of Congress, sufficiently large to

be divided into subcommittees, be organized to visit all the mining States

and Territories during the coming summer, and that the committee shall

report to Congress at the next session such laws or amendments to laws as

it may deem necessary to secure the best interests of the Government and

the people of these Territories, who are doing so much for their

development.

I am sure the citizens occupying the territory described do not wish to be

trespassers, nor will they be if legal ways are provided for them to become

owners of these actual necessities of their position.

As this will be the last annual message which I shall have the honor of

transmitting to Congress before my successor is chosen, I will repeat or

recapitulate the questions which I deem of vital importance which may be

legislated upon and settled at this session:

First. That the States shall be required to afford the opportunity of a

good common-school education to every child within their limits.

Second. No sectarian tenets shall ever be taught in any school supported in

whole or in part by the State, nation, or by the proceeds of any tax levied

upon any community. Make education compulsory so far as to deprive all

persons who can not read and write from becoming voters after the year

1890, disfranchising none, however, on grounds of illiteracy who may be

voters at the time this amendment takes effect.

Third. Declare church and state forever separate and distinct, but each

free within their proper spheres; and that all church property shall bear

its own proportion of taxation.

Fourth. Drive out licensed immorality, such as polygamy and the importation

of women for illegitimate purposes. To recur again to the centennial year,

it would seem as though now, as we are about to begin the second century of

our national existence, would be a most fitting time for these reforms.

Fifth. Enact such laws as will insure a speedy return to a sound currency,

such as will command the respect of the world.

Believing that these views will commend themselves to the great majority of

the right-thinking and patriotic citizens of the United States, I submit

the rest to Congress.

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