THIRD ANNUAL MESSAGE.

WASHINGTON, _December 4, 1883_.

_To the Congress of the United States:_

At the threshold of your deliberations I congratulate you upon the

favorable aspect of the domestic and foreign affairs of this Government.

Our relations with other countries continue to be upon a friendly

footing. With the Argentine Republic, Austria, Belgium, Brazil, Denmark,

Hayti, Italy, Santo Domingo, and Sweden and Norway no incident has

occurred which calls for special comment. The recent opening of new

lines of telegraphic communication with Central America and Brazil

permitted the interchange of messages of friendship with the Governments

of those countries.

During the year there have been perfected and proclaimed consular and

commercial treaties with Servia and a consular treaty with Roumania,

thus extending our intercourse with the Danubian countries, while our

Eastern relations have been put upon a wider basis by treaties with

Korea and Madagascar. The new boundary-survey treaty with Mexico, a

trade-marks convention and a supplementary treaty of extradition with

Spain, and conventions extending the duration of the Franco-American

Claims Commission have also been proclaimed.

Notice of the termination of the fisheries articles of the treaty of

Washington was duly given to the British Government, and the reciprocal

privileges and exemptions of the treaty will accordingly cease on July

1, 1885. The fisheries industries, pursued by a numerous class of our

citizens on the northern coasts, both of the Atlantic and Pacific

oceans, are worthy of the fostering care of Congress. Whenever brought

into competition with the like industries of other countries, our

fishermen, as well as our manufacturers of fishing appliances and

preparers of fish products, have maintained a foremost place. I suggest

that Congress create a commission to consider the general question of

our rights in the fisheries and the means of opening to our citizens,

under just and enduring conditions, the richly stocked fishing waters

and sealing grounds of British North America.

Question has arisen touching the deportation to the United States from

the British Islands, by governmental or municipal aid, of persons unable

there to gain a living and equally a burden on the community here. Such

of these persons as fall under the pauper class as defined by law have

been sent back in accordance with the provisions of our statutes. Her

Majesty's Government has insisted that precautions have been taken

before shipment to prevent these objectionable visitors from coming

hither without guaranty of support by their relatives in this country.

The action of the British authorities in applying measures for relief

has, however, in so many cases proved ineffectual, and especially so

in certain recent instances of needy emigrants reaching our territory

through Canada, that a revision of our legislation upon this subject

may be deemed advisable.

Correspondence relative to the Clayton-Bulwer treaty has been continued

and will be laid before Congress.

The legislation of France against the importation of prepared swine

products from the United States has been repealed. That result is due

no less to the friendly representations of this Government than to a

growing conviction in France that the restriction was not demanded by

any real danger to health.

Germany still prohibits the introduction of all swine products from

America. I extended to the Imperial Government a friendly invitation to

send experts to the United States to inquire whether the use of those

products was dangerous to health. This invitation was declined. I have

believed it of such importance, however, that the exact facts should be

ascertained and promulgated that I have appointed a competent commission

to make a thorough investigation of the subject. Its members have shown

their public spirit by accepting their trust without pledge of

compensation, but I trust that Congress will see in the national and

international bearings of the matter a sufficient motive for providing

at least for reimbursement of such expenses as they may necessarily

incur.

The coronation of the Czar at Moscow afforded to this Government an

occasion for testifying its continued friendship by sending a special

envoy and a representative of the Navy to attend the ceremony.

While there have arisen during the year no grave questions affecting the

status in the Russian Empire of American citizens of other faith than

that held by the national church, this Government remains firm in its

conviction that the rights of its citizens abroad should be in no wise

affected by their religious belief.

It is understood that measures for the removal of the restrictions which

now burden our trade with Cuba and Puerto Rico are under consideration

by the Spanish Government.

The proximity of Cuba to the United States and the peculiar methods of

administration which there prevail necessitate constant discussion and

appeal on our part from the proceedings of the insular authorities. I

regret to say that the just protests of this Government have not as yet

produced satisfactory results.

The commission appointed to decide certain claims of our citizens

against the Spanish Government, after the recognition of a satisfactory

rule as to the validity and force of naturalization in the United

States, has finally adjourned. Some of its awards, though made more than

two years ago, have not yet been paid. Their speedy payment is expected.

Claims to a large amount which were held by the late commission to be

without its jurisdiction have been diplomatically presented to the

Spanish Government. As the action of the colonial authorities which has

given rise to these claims was admittedly illegal, full reparation for

the injury sustained by our citizens should be no longer delayed.

The case of the _Masonic_ has not yet reached a settlement. The

Manila court has found that the proceedings of which this Government has

complained were unauthorized, and it is hoped that the Government of

Spain will not withhold the speedy reparation which its sense of justice

should impel it to offer for the unusual severity and unjust action of

its subordinate colonial officers in the case of this vessel.

The Helvetian Confederation has proposed the inauguration of a class

of international treaties for the referment to arbitration of grave

questions between nations. This Government has assented to the proposed

negotiation of such a treaty with Switzerland.

Under the treaty of Berlin liberty of conscience and civil rights

are assured to all strangers in Bulgaria. As the United States have

no distinct conventional relations with that country and are not a

party to the treaty, they should, in my opinion, maintain diplomatic

representation at Sofia for the improvement of intercourse and the

proper protection of the many American citizens who resort to that

country as missionaries and teachers. I suggest that I be given

authority to establish an agency and consulate-general at the

Bulgarian capital.

The United States are now participating in a revision of the tariffs of

the Ottoman Empire. They have assented to the application of a license

tax to foreigners doing business in Turkey, but have opposed the

oppressive storage tax upon petroleum entering the ports of that

country.

The Government of the Khedive has proposed that the authority of the

mixed judicial tribunals in Egypt be extended so as to cover citizens of

the United States accused of crime, who are now triable before consular

courts. This Government is not indisposed to accept the change, but

believes that its terms should be submitted for criticism to the

commission appointed to revise the whole subject.

At no time in our national history has there been more manifest need of

close and lasting relations with a neighboring state than now exists

with respect to Mexico. The rapid influx of our capital and enterprise

into that country shows, by what has already been accomplished, the vast

reciprocal advantages which must attend the progress of its internal

development. The treaty of commerce and navigation of 1848 has been,

terminated by the Mexican Government, and in the absence of conventional

engagements the rights of our citizens in Mexico now depend upon the

domestic statutes of that Republic. There have been instances of harsh

enforcement of the laws against our vessels and citizens in Mexico and

of denial of the diplomatic resort for their protection. The initial

step toward a better understanding has been taken in the negotiation by

the commission authorized by Congress of a treaty which is still before

the Senate awaiting its approval.

The provisions for the reciprocal crossing of the frontier by the troops

in pursuit of hostile Indians have been prolonged for another year. The

operations of the forces of both Governments against these savages have

been successful, and several of their most dangerous bands have been

captured or dispersed by the skill and valor of United States and

Mexican soldiers fighting in a common cause.

The convention for the resurvey of the boundary from the Rio Grande

to the Pacific having been ratified and exchanged, the preliminary

reconnoissance therein stipulated has been effected. It now rests with

Congress to make provision for completing the survey and relocating the

boundary monuments.

A convention was signed with Mexico on July 13, 1882, providing for

the rehearing of the cases of Benjamin Weil and the Abra Silver Mining

Company, in whose favor awards were made by the late American and

Mexican Claims Commission. That convention still awaits the consent of

the Senate. Meanwhile, because of those charges of fraudulent awards

which have made a new commission necessary, the Executive has directed

the suspension of payments of the distributive quota received from

Mexico.

Our geographical proximity to Central America and our political and

commercial relations with the States of that country justify, in my

judgment, such a material increase of our consular corps as will place

at each capital a consul-general.

The contest between Bolivia, Chile, and Peru has passed from the stage

of strategic hostilities to that of negotiation, in which the counsels

of this Government have been exercised. The demands of Chile for

absolute cession of territory have been maintained and accepted by the

party of General Iglesias to the extent of concluding a treaty of peace

with the Government of Chile in general conformity with the terms of the

protocol signed in May last between the Chilean commander and General

Iglesias. As a result of the conclusion of this treaty General Iglesias

has been formally recognized by Chile as President of Peru and his

government installed at Lima, which has been evacuated by the Chileans.

A call has been issued by General Iglesias for a representative

assembly, to be elected on the 13th of January, and to meet at Lima on

the 1st of March next. Meanwhile the provisional government of General

Iglesias has applied for recognition to the principal powers of America

and Europe. When the will of the Peruvian people shall be manifested,

I shall not hesitate to recognize the government approved by them.

Diplomatic and naval representatives of this Government attended at

Caracas the centennial celebration of the birth of the illustrious

Bolivar. At the same time the inauguration of the statue of Washington

in the Venezuelan capital testified to the veneration in which his

memory is there held.

Congress at its last session authorized the Executive to propose to

Venezuela a reopening of the awards of the mixed commission of Caracas.

The departure from this country of the Venezuelan minister has delayed

the opening of negotiations for reviving the commission. This Government

holds that until the establishment of a treaty upon this subject the

Venezuelan Government must continue to make the payments provided for

in the convention of 1866.

There is ground for, believing that the dispute growing out of the

unpaid obligations due from Venezuela to France will be satisfactorily

adjusted. The French cabinet has proposed a basis of settlement which

meets my approval, but as it involves a recasting of the annual quotas

of the foreign debt it has been deemed advisable to submit the proposal

to the judgment of the cabinets of Berlin, Copenhagen, The Hague,

London, and Madrid.

At the recent coronation of His Majesty King Kalakaua this Government

was represented both diplomatically and by the formal visit of a vessel

of war.

The question of terminating or modifying the existing reciprocity treaty

with Hawaii is now before Congress. I am convinced that the charges of

abuses and frauds under that treaty have been exaggerated, and I renew

the suggestion of last year's message that the treaty be modified

wherever its provisions have proved onerous to legitimate trade between

the two countries. I am not disposed to favor the entire cessation of

the treaty relations which have fostered good will between the countries

and contributed toward the equality of Hawaii in the family of nations.

In pursuance of the policy declared by this Government of extending our

intercourse with the Eastern nations, legations have during the past

year been established in Persia, Siam, and Korea. It is probable that

permanent missions of those countries will ere long be maintained in the

United States. A special embassy from Siam is now on its way hither.

Treaty relations with Korea were perfected by the exchange at Seoul,

on the 19th of May last, of the ratifications of the lately concluded

convention, and envoys from the King of Tah Chosen have visited this

country and received a cordial welcome. Korea, as yet unacquainted with

the methods of Western civilization, now invites the attention of those

interested in the advancement of our foreign trade, as it needs the

implements and products which the United States are ready to supply. We

seek no monopoly of its commerce and no advantages over other nations,

but as the Chosenese, in reaching for a higher civilization, have

confided in this Republic, we can not regard with indifference any

encroachment on their rights.

China, by the payment of a money indemnity, has settled certain of the

long-pending claims of our citizens, and I have strong hopes that the

remainder will soon be adjusted.

Questions have arisen touching the rights of American and other foreign

manufacturers in China under the provisions of treaties which permit

aliens to exercise their industries in that country. On this specific

point our own treaty is silent, but under the operation of the

most-favored-nation clause we have like privileges with those of other

powers. While it is the duty of the Government to see that our citizens

have the full enjoyment of every benefit secured by treaty, I doubt

the expediency of leading in a movement to constrain China to admit an

interpretation which we have only an indirect treaty right to exact.

The transference to China of American capital for the employment there

of Chinese labor would in effect inaugurate a competition for the

control of markets now supplied by our home industries.

There is good reason to believe that the law restricting the immigration

of Chinese has been violated, intentionally or otherwise, by the

officials of China upon whom is devolved the duty of certifying that the

immigrants belong to the excepted classes.

Measures have been taken to ascertain the facts incident to this

supposed infraction, and it is believed that the Government of China

will cooperate with the United States in securing the faithful

observance of the law.

The same considerations which prompted Congress at its last session to

return to Japan the Simonoseki indemnity seem to me to require at its

hands like action in respect to the Canton indemnity fund, now amounting

to $300,000.

The question of the general revision of the foreign treaties of Japan

has been considered in an international conference held at Tokyo, but

without definite result as yet. This Government is disposed to concede

the requests of Japan to determine its own tariff duties, to provide

such proper judicial tribunals as may commend themselves to the Western

powers for the trial of causes to which foreigners are parties, and to

assimilate the terms and duration of its treaties to those of other

civilized states.

Through our ministers at London and at Monrovia this Government has

endeavored to aid Liberia in its differences with Great Britain touching

the northwestern boundary of that Republic. There is a prospect of

adjustment of the dispute by the adoption of the Mannah River as the

line. This arrangement is a compromise of the conflicting territorial

claims and takes from Liberia no country over which it has maintained

effective jurisdiction.

The rich and populous valley of the Kongo is being opened to commerce

by a society called the International African Association, of which the

King of the Belgians is the president and a citizen of the United States

the chief executive officer. Large tracts of territory have been ceded

to the association by native chiefs, roads have been opened, steamboats

placed on the river, and the nuclei of states established at twenty-two

stations under one flag which offers freedom to commerce and prohibits

the slave trade. The objects of the society are philanthropic. It does

not aim at permanent political control, but seeks the neutrality of the

valley. The United States can not be indifferent to this work nor to the

interests of their citizens involved in it. It may become advisable for

us to cooperate with other commercial powers in promoting the rights of

trade and residence in the Kongo Valley free from the interference or

political control of any one nation.

In view of the frequency of invitations from foreign governments to

participate in social and scientific congresses for the discussion of

important matters of general concern, I repeat the suggestion of my last

message that provision be made for the exercise of discretionary power

by the Executive in appointing delegates to such convocations. Able

specialists are ready to serve the national interests in such capacity

without personal profit or other compensation than the defrayment of

expenses actually incurred, and this a comparatively small annual

appropriation would suffice to meet.

I have alluded in my previous messages to the injurious and vexatious

restrictions suffered by our trade in the Spanish West Indies, Brazil,

whose natural outlet for its great national staple, coffee, is in and

through the United States, imposes a heavy export duty upon that

product. Our petroleum exports are hampered in Turkey and in other

Eastern ports by restrictions as to storage and by onerous taxation.

For these mischiefs adequate relief is not always afforded by

reciprocity treaties like that with Hawaii or that lately negotiated

with Mexico and now awaiting the action of the Senate. Is it not

advisable to provide some measure of equitable retaliation in our

relations with governments which discriminate against our own? If, for

example, the Executive were empowered to apply to Spanish vessels and

cargoes from Cuba and Puerto Rico the same rules of treatment and scale

of penalties for technical faults which are applied to our vessels and

cargoes in the Antilles, a resort to that course might not be barren of

good results.

The report of the Secretary of the Treasury gives a full and interesting

exhibit of the financial condition of the country.

It shows that the ordinary revenues from all sources for the fiscal year

ended June 30, 1883, amounted to $398,287,581.95, whereof there was

received--

From customs $214,706,496.93

From internal revenue 144,720,368.98

From sales of public lands 7,955,864.42

From tax on circulation and deposits of national banks 9,111,008.85

From profits on coinage, bullion deposits, and assays 4,460,205.17

From other sources 17,333,637.60

______________

Total 398,287,581.95

For the same period the ordinary expenditures were:

For civil expenses $22,343,285.76

For foreign intercourse 2,419,275.24

For Indians 7,362,590.34

For pensions $66,012,573.64

For the military establishment, including river and

harbor improvements and arsenals 48,911,382.93

For the naval establishment, including vessels,

machinery, and improvements at navy-yards 15,283,437.17

For miscellaneous expenditures, including public

buildings, light-houses, and collecting the revenue 40,098,432.73

For expenditures on account of the District of Columbia 3,817,028.48

For interest on the public debt 59,160,131.25

______________

Total 265,408,137.54

Leaving a surplus revenue of $132,879,444.41, which, with an amount

drawn from the cash balance in the Treasury of $1,299,312.55, making

$134,178,756.96, was applied to the redemption--

Of bonds for the sinking fund $44,850,700.00

Of fractional currency for the sinking fund 46,556.96

Of funded loan of 1881, continued at 3-1/2 per cent. 65,380,250.00

Of loan of July and August, 1861,

continued at 3-1/2 per cent. 20,594,600.00

Of funded loan of 1907 1,418,850.00

Of funded loan of 1881 719,150.00

Of loan of February, 1861 18,000.00

Of loan of July and August, 1861 266,600.00

Of loan of March, 1863 116,850.00

Of loan of July, 1882 47,650.00

Of five-twenties of 1862 10,300.00

Of five-twenties of 1864 7,050.00

Of five-twenties of 1865 9,600.00

Of ten-forties of 1864 133,550.00

Of consols of 1865 40,800.00

Of consols of 1867 235,700.00

Of consols of 1868 154,650.00

Of Oregon War debt 5,450.00

Of refunding certificates 109,150.00

Of old demand, compound-interest, and other notes 13,300.00

______________

Total 134,178,756.96

The revenue for the present fiscal year, actual and estimated, is as

follows:

=======================================================================

For the

Source For the quarter remaining

ended September three quarters

30, 1883 of the year

(actual) (estimated)

From customs $57,402,975 67 $137,597,024 33

From internal revenue 29,662,078.60 90,337,921.40

From sales of public lands 2,932,635.17 5,067,364.83

From tax on circulation and deposits

of national banks 1,557,800.88 1,542,199.12

From repayment of interest and sinking

fund, Pacific Railway companies 521,059.51 1,478,940.49

From customs fees, fines, penalties, etc. 298,696.78 901,303.22

From fees--consular, letters patent,

and lands 863,209.80 2,436,790.20

From proceeds of sales of Government

property 112,562.23 167,437.77

From profits on coinage, etc. 950,229.46 3,149,770.54

From deposits for surveying public lands 172,461.31 327,538.69

From revenues of the District of Columbia 256,017.99 1,643,982.01

From miscellaneous sources 1,237,189.63 2,382,810.37

____________ ____________

Total receipts 95,966,917.03 247,033,082.97

=======================================================================

The actual and estimated expenses for the same period are:

=======================================================================

For the

Object For the quarter remaining

ended September three quarters

30, 1883 of the year

(actual) (estimated)

For civil and miscellaneous expenses,

including public buildings,

light-houses, and collecting

the revenue $15,385,799.42 $51,114,200.58

For Indians 2,623,390.54 4,126,609.46

For pensions 16,285,261.98 53,714,738.02

For military establishment, including

fortifications, river and harbor

improvements, and arsenals 13,512,204.33 26,487,795.67

For naval establishment, including

vessels and machinery, and

improvements at navy-yards 4,199,299.69 12,300,700.31

For expenditures on account of the

District of Columbia 1,138,836.41 2,611,163.59

For interest on the public debt 14,797,297.96 39,702,702.04

_____________ ______________

Total ordinary expenditures 67,942,090.33 190,057,909.67

=======================================================================

Total receipts, actual and estimated $343,000,000.00

Total expenditures, actual and estimated 258,000,000.00

______________

85,000,000.00

Estimated amount due the sinking fund 45,816,741.07

______________

Leaving a balance of 39,183,258.93

If the revenue for the fiscal year which will end on June 30, 1885,

be estimated upon the basis of existing laws, the Secretary is of the

opinion that for that year the receipts will exceed by $60,000,000 the

ordinary expenditures including the amount devoted to the sinking fund.

Hitherto the surplus, as rapidly as it has accumulated, has been devoted

to the reduction of the national debt.

As a result the only bonds now outstanding which are redeemable at the

pleasure of the Government are the 3 percents, amounting to about

$305,000,000.

The 4-1/2 percents, amounting to $250,000,000, and the $737,000,000 4

percents are not payable until 1891 and 1907, respectively.

If the surplus shall hereafter be as large as the Treasury estimates now

indicate, the 3 per cent bonds may all be redeemed at least four years

before any of the 4-1/2 percents can be called in. The latter at the

same rate of accumulation of surplus can be paid at maturity, and the

moneys requisite for the redemption of the 4 percents will be in the

Treasury many years before those obligations become payable.

There are cogent reasons, however, why the national indebtedness should

not be thus rapidly extinguished. Chief among them is the fact that only

by excessive taxation is such rapidity attainable.

In a communication to the Congress at its last session I recommended

that all excise taxes be abolished except those relating to distilled

spirits and that substantial reductions be also made in the revenues

from customs. A statute has since been enacted by which the annual tax

and tariff receipts of the Government have been cut down to the extent

of at least fifty or sixty millions of dollars.

While I have no doubt that still further reductions may be wisely made,

I do not advise the adoption at this session of any measures for large

diminution of the national revenues. The results of the legislation of

the last session of the Congress have not as yet become sufficiently

apparent to justify any radical revision or sweeping modifications of

existing law.

In the interval which must elapse before the effects of the act of March

3, 1883, can be definitely ascertained a portion at least of the surplus

revenues may be wisely applied to the long-neglected duty of

rehabilitating our Navy and providing coast defenses for the protection

of our harbors. This is a matter to which I shall again advert.

Immediately associated with the financial subject just discussed is the

important question what legislation is needed regarding the national

currency.

The aggregate amount of bonds now on deposit in the Treasury to support

the national-bank circulation is about $350,000,000. Nearly $200,000,000

of this amount consists of 3 percents, which, as already stated, are

payable at the pleasure of the Government and are likely to be called in

within less than four years unless meantime the surplus revenues shall

be diminished.

The probable effect of such an extensive retirement of the securities

which are the basis of the national-bank circulation would be such a

contraction of the volume of the currency as to produce grave commercial

embarrassments.

How can this danger be obviated? The most effectual plan, and one whose

adoption at the earliest practicable opportunity I shall heartily

approve, has already been indicated.

If the revenues of the next four years shall be kept substantially

commensurate with the expenses, the volume of circulation will not be

likely to suffer any material disturbance; but if, on the other hand,

there shall be great delay in reducing taxation, it will become

necessary either to substitute some other form of currency in place of

the national-bank notes or to make important changes in the laws by

which their circulation is now controlled.

In my judgment the latter course is far preferable. I commend to your

attention the very interesting and thoughtful suggestions upon this

subject which appear in the Secretary's report.

The objections which he urges against the acceptance of any other

securities than the obligations of the Government itself as a foundation

for national-bank circulation seem to me insuperable.

For averting the threatened contraction two courses have been suggested,

either of which is probably feasible. One is the issuance of new bonds,

having many years to run, bearing a low rate of interest, and

exchangeable upon specified terms for those now outstanding. The other

course, which commends itself to my own judgment as the better, is the

enactment of a law repealing the tax on circulation and permitting the

banks to issue notes for an amount equal to 90 per cent of the market

value instead of, as now, the face value of their deposited bonds. I

agree with the Secretary in the belief that the adoption of this plan

would afford the necessary relief.

The trade dollar was coined for the purpose of traffic in countries

where silver passed at its value as ascertained by its weight and

fineness. It never had a legal-tender quality. Large numbers of these

coins entered, however, into the volume of our currency. By common

consent their circulation in domestic trade has now ceased, and they

have thus become a disturbing element. They should not be longer

permitted to embarrass our currency system. I recommend that provision

be made for their reception by the Treasury and the mints, as bullion,

at a small percentage above the current market price of silver of like

fineness.

The Secretary of the Treasury advises a consolidation of certain of the

customs districts of the country, and suggests that the President be

vested with such power in relation thereto as is now given him in

respect to collectors of internal revenue by section 3141 of the Revised

Statutes. The statistics upon this subject which are contained in his

report furnish of themselves a strong argument in defense of his views.

At the adjournment of Congress the number of internal-revenue collection

districts was 126. By Executive order dated June 25, 1883, I directed

that certain of these districts be consolidated. The result has been a

reduction of one-third their number, which at present is but 83.

From the report of the Secretary of War it will be seen that in only a

single instance has there been any disturbance of the quiet condition of

our Indian tribes. A raid from Mexico into Arizona was made in March

last by a small party of Indians, which was pursued by General Crook

into the mountain regions from which it had come. It is confidently

hoped that serious outbreaks will not again occur and that the Indian

tribes which have for so many years disturbed the West will hereafter

remain in peaceable submission.

I again call your attention to the present condition of our

extended seacoast, upon which are so many large cities whose wealth and

importance to the country would in time of war invite attack from modern

armored ships, against which our existing defensive works could give no

adequate protection. Those works were built before the introduction of

modern heavy rifled guns into maritime warfare, and if they are not put

in an efficient condition we may easily be subjected to humiliation

by a hostile power greatly inferior to ourselves. As germane to this

subject, I call your attention to the importance of perfecting our

submarine-torpedo defenses. The board authorized by the last Congress

to report upon the method which should be adopted for the manufacture

of heavy ordnance adapted to modern warfare has visited the principal

iron and steel works in this country and in Europe. It is hoped that

its report will soon be made, and that Congress will thereupon be

disposed to provide suitable facilities and plant for the manufacture

of such guns as are now imperatively needed.

On several occasions during the past year officers of the Army have at

the request of the State authorities visited their militia encampments

for inspection of the troops. From the reports of these officers

I am induced to believe that the encouragement of the State militia

organizations by the National Government would be followed by very

gratifying results, and would afford it in sudden emergencies the aid

of a large body of volunteers educated in the performance of military

duties.

The Secretary of the Navy reports that under the authority of the acts

of August 5, 1882, and March 3, 1883, the work of strengthening our Navy

by the construction of modern vessels has been auspiciously begun. Three

cruisers are in process of construction--the _Chicago_, of 4,500

tons displacement, and the _Boston_ and _Atlanta_, each of 2,500 tons.

They are to be built of steel, with the tensile strength and ductility

prescribed by law, and in the combination of speed, endurance, and

armament are expected to compare favorably with the best unarmored war

vessels of other nations. A fourth vessel, the _Dolphin_, is to be

constructed of similar material, and is intended to serve as a fleet

dispatch boat.

The double-turreted monitors _Puritan, Amphitrite,_ and _Terror_

have been launched on the Delaware River and a contract has been made

for the supply of their machinery. A similar monitor, the _Monadnock_,

has been launched in California.

The Naval Advisory Board and the Secretary recommend the completion

of the monitors, the construction of four gunboats, and also of three

additional steel vessels like the _Chicago, Boston,_ and _Dolphin_.

As an important measure of national defense, the Secretary urges also

the immediate creation of an interior coast line of waterways across the

peninsula of Florida, along the coast from Florida to Hampton Roads,

between the Chesapeake Bay and the Delaware River, and through Cape Cod.

I feel bound to impress upon the attention of Congress the necessity of

continued progress in, the reconstruction of the Navy. The condition of

the public Treasury, as I have already intimated, makes the present an

auspicious time for putting this branch of the service in a state of

efficiency.

It is no part of our policy to create and maintain a Navy able to cope

with that of the other great powers of the world.

We have no wish for foreign conquest, and the peace which we have long

enjoyed is in no seeming danger of interruption.

But that our naval strength should be made adequate for the defense

of our harbors, the protection of our commercial interests, and the

maintenance of our national honor is a proposition from which no

patriotic citizen can withhold his assent.

The report of the Postmaster-General contains a gratifying exhibit of

the condition and prospects of the interesting branch of the public

service committed to his care.

It appears that on June 30, 1883, the whole number of post-offices was

47,863, of which 1,632 were established during the previous fiscal year.

The number of offices operating under the system of free delivery was

154.

At these latter offices the postage on local matter amounted to

$4,195,230.52, a sum exceeding by $1,021,894.01 the entire cost of the

carrier service of the country.

The rate of postage on drop letters passing through these offices is now

fixed by law at 2 cents per half ounce or fraction thereof. In offices

where the carrier system has not been established the rate is only half

as large.

It will be remembered that in 1863, when free delivery was first

established by law, the uniform single-rate postage upon local letters

was 1 cent, and so it remained until 1872, when in those cities where

carrier service was established it was increased in order to defray the

expense of such service.

It seems to me that the old rate may now with propriety be restored, and

that, too, even at the risk of diminishing, for a time at least, the

receipts from postage upon local letters.

I can see no reason why that particular class of mail matter should

be held accountable for the entire cost of not only its own collection

and delivery, but the collection and delivery of all other classes;

and I am confident, after full consideration of the subject, that the

reduction of rate would be followed by such a growing accession of

business as to occasion but slight and temporary loss to the revenues

of the Post-Office. The Postmaster-General devotes much of his report

to the consideration in its various aspects of the relations of the

Government to the telegraph. Such reflection as I have been able to give

to this subject since my last annual message has not led me to change

the views which I there expressed in dissenting from the recommendation

of the then Postmaster-General that the Government assume the same

control over the telegraph which it has always exercised over the mail.

Admitting that its authority in the premises is as ample as has ever

been claimed for it, it would not, in my judgment, be a wise use of that

authority to purchase or assume the control of existing telegraph lines,

or to construct others with a view of entering into general competition

with private enterprise.

The objections which may be justly urged against either of those

projects, and indeed against any system which would require an enormous

increase in the civil-service list, do not, however, apply to some of

the plans which have lately provoked public comment and discussion. It

has been claimed, for example, that Congress might wisely authorize the

Postmaster-General to contract with some private persons or corporation

for the transmission of messages, or of a certain class of messages, at

specified rates and under Government supervision. Various such schemes,

of the same general nature, but widely differing in their special

characteristics, have been suggested in the public prints, and the

arguments by which they have been supported and opposed have doubtless

attracted your attention.

It is likely that the whole subject will be considered by you at the

present session.

In the nature of things it involves so many questions of detail that

your deliberations would probably be aided slightly, if at all, by any

particular suggestions which I might now submit.

I avow my belief, however, that the Government should be authorized by

law to exercise some sort of supervision over interstate telegraphic

communication, and I express the hope that for attaining that end some

measure may be devised which will receive your approbation.

The Attorney-General criticises in his report the provisions of existing

law fixing the fees of jurors and witnesses in the Federal courts. These

provisions are chiefly contained in the act of February 26, 1853, though

some of them were introduced into that act from statutes which had been

passed many years previous. It is manifest that such compensation as

might when these laws were enacted have been just and reasonable would

in many instances be justly regarded at the present day as inadequate.

I concur with the Attorney-General in the belief that the statutes

should be revised by which these fees are regulated.

So, too, should the laws which regulate the compensation of district

attorneys and marshals. They should be paid wholly by salaries instead

of in part by fees, as is now the case.

The change would prove to be a measure of economy and would discourage

the institution of needless and oppressive legal proceedings, which it

is to be feared have in some instances been conducted for the mere sake

of personal gain.

Much interesting and varied information is contained in the report of

the Secretary of the Interior.

I particularly call your attention to his presentation of certain phases

of the Indian question, to his recommendations for the repeal of the

preemption and timber-culture acts, and for more stringent legislation

to prevent frauds under the pension laws. The statutes which prescribe

the defnitions and punishments of crimes relating to pensions could

doubtless be mads more effective by certain amendments and additions

which are pointed out in the Secretary's report.

I have previously referred to the alarming state of illiteracy in

certain portions of the country, and again submit for the consideration

of Congress whether some Federal aid should not be extended to public

primary education wherever adequate provision therefor has not already

been made.

The Utah Commission has submitted to the Secretary of the Interior

its second annual report. As a result of its labors in supervising the

recent election in that Territory, pursuant to the act of March 22,

1882, it appears that persons by that act disqualified to the number of

about 12,000, were excluded from the polls. This fact, however, affords

little cause for congratulation, and I fear that it is far from

indicating any real and substantial progress toward the extirpation of

polygamy. All the members elect of the legislature are Mormons. There

is grave reason to believe that they are in sympathy with the practices

that this Government is seeking to suppress, and that its efforts in

that regard will be more likely to encounter their opposition than to

receive their encouragement and support. Even if this view should

happily be erroneous, the law under which the commissioners have been

acting should be made more effective by the incorporation of some such

stringent amendments as they recommend, and as were included in bill

No. 2238 on the Calendar of the Senate at its last session.

I am convinced, however, that polygamy has become so strongly

intrenched in the Territory of Utah that it is profitless to attack

it with any but the stoutest weapons which constitutional legislation

can fashion. I favor, therefore, the repeal of the act upon which the

existing government depends, the assumption by the National Legislature

of the entire political control of the Territory, and the establishment

of a commission with such powers and duties as shall be delegated to it

by law.

The Department of Agriculture is accomplishing much in the direction

of the agricultural development of the country, and the report of the

Commissioner giving the results of his investigations and experiments

will be found interesting and valuable.

At his instance a convention of those interested in the cattle

industry of the country was lately held at Chicago. The prevalence of

pleuro-pneumonia and other contagious diseases of animals was one of the

chief topics of discussion. A committee of the convention will invite

your cooperation in investigating the causes of these diseases and

providing methods for their prevention and cure.

I trust that Congress will not fail at its present session to put Alaska

under the protection of law. Its people have repeatedly remonstrated

against our neglect to afford them the maintenance and protection

expressly guaranteed by the terms of the treaty whereby that Territory

was ceded to the United States. For sixteen years they have pleaded in

vain for that which they should have received without the asking.

They have no law for the collection of debts, the support of education,

the conveyance of property, the administration of estates, or the

enforcement of contracts; none, indeed, for the punishment of criminals,

except such as offend against certain customs, commerce, and navigation

acts.

The resources of Alaska, especially in fur, mines, and lumber, are

considerable in extent and capable of large development, while its

geographical situation is one of political and commercial importance.

The promptings of interest, therefore, as well as considerations of

honor and good faith, demand the immediate establishment of civil

government in that Territory.

Complaints have lately been numerous and urgent that certain

corporations, controlling in whole or in part the facilities for the

interstate carriage of persons and merchandise over the great railroads

of the country, have resorted in their dealings with the public to

divers measures unjust and oppressive in their character.

In some instances the State governments have attacked and suppressed

these evils, but in others they have been unable to afford adequate

relief because of the jurisdictional limitations which are imposed upon

them by the Federal Constitution.

The question how far the National Government may lawfully interfere in

the premises, and what, if any, supervision or control it ought to

exercise, is one which merits your careful consideration.

While we can not fail to recognize the importance of the vast railway

systems of the country and their great and beneficent influences upon

the development of our material wealth, we should, on the other hand,

remember that no individual and no corporation ought to be invested

with absolute power over the interest of any other citizen or class

of citizens. The right of these railway corporations to a fair and

profitable return upon their investments and to reasonable freedom in

their regulations must be recognized; but it seems only just that, so

far as its constitutional authority will permit, Congress should protect

the people at large in their interstate traffic against acts of

injustice which the State governments are powerless to prevent.

In my last annual message I called attention to the necessity of

protecting by suitable legislation the forests situated upon the public

domain. In many portions of the West the pursuit of general agriculture

is only made practicable by resort to irrigation, while successful

irrigation would itself be impossible without the aid afforded by

forests in contributing to the regularity and constancy of the supply of

water.

During the past year severe suffering and great loss of property have

been occasioned by profuse floods followed by periods of unusually low

water in many of the great rivers of the country.

These irregularities were in great measure caused by the removal from

about the sources of the streams in question of the timber by which the

water supply had been nourished and protected.

The preservation of such portions of the forests on the national domain

as essentially contribute to the equable flow of important water courses

is of the highest consequence.

Important tributaries of the Missouri, the Columbia, and the

Saskatchewan rise in the mountain region of Montana, near the northern

boundary of the United States, between the Blackfeet and Flathead Indian

reservations. This region is unsuitable for settlement, but upon the

rivers which flow from it depends the future agricultural development

of a vast tract of country. The attention of Congress is called to the

necessity of withdrawing from public sale this part of the public domain

and establishing there a forest preserve.

The industrial exhibitions which have been held in the United States

during the present year attracted attention in many foreign countries,

where the announcement of those enterprises had been made public through

the foreign agencies of this Government. The Industrial Exhibition at

Boston and the Southern Exposition at Louisville were largely attended

by the exhibitors of foreign countries, notwithstanding the absence of

any professed national character in those undertakings.

The Centennial Exposition to be held next year at New Orleans in

commemoration of the centenary of the first shipment of cotton from

a port of the United States bids fair to meet with like gratifying

success. Under the act of Congress of the 10th of February, 1883,

declaring that exposition to be national and international in its

character, all foreign governments with which the United States

maintain relations have been invited to participate.

The promoters of this important undertaking have already received

assurances of the lively interest which it has excited abroad.

The report of the Commissioners of the District of Columbia is herewith

transmitted. I ask for it your careful attention, especially for those

portions which relate to assessments, arrears of taxes, and increase of

water supply.

The commissioners who were appointed under the act of January 16, 1883,

entitled "An act to regulate and improve the civil service of the United

States," entered promptly upon the discharge of their duties.

A series of rules, framed in accordance with the spirit of the statute,

was approved and promulgated by the President.

In some particulars wherein they seemed defective those rules were

subsequently amended. It will be perceived that they discountenance any

political or religious tests for admission to those offices of the

public service to which the statute relates.

The act is limited in its original application to the classified

clerkships in the several Executive Departments at Washington

(numbering about 5,600) and to similar positions in customs districts

and post-offices where as many as fifty persons are employed.

A classification of these positions analogous to that existing in

the Washington offices was duly made before the law went into effect.

Eleven customs districts and twenty-three post-offices were thus

brought under the immediate operation of the statute.

The annual report of the Civil Service Commission which will soon be

submitted to Congress will doubtless afford the means of a more definite

judgment than I am now prepared to express as to the merits of the new

system. I am persuaded that its effects have thus far proved beneficial.

Its practical methods appear to be adequate for the ends proposed, and

there has been no serious difficulty in carrying them into effect.

Since the 16th of July last no person, so far as I am aware, has been

appointed to the public service in the classified portions thereof

at any of the Departments, or at any of the post-offices and customs

districts above named, except those certified by the Commission to be

the most competent on the basis of the examinations held in conformity

to the rules.

At the time when the present Executive entered upon his office his

death, removal, resignation, or inability to discharge his duties would

have left the Government without a constitutional head.

It is possible, of course, that a similar contingency may again arise

unless the wisdom of Congress shall provide against its recurrence.

The Senate at its last session, after full consideration, passed an act

relating to this subject, which will now, I trust, commend itself to the

approval of both Houses of Congress.

The clause of the Constitution upon which must depend any law regulating

the Presidential succession presents also for solution other questions

of paramount importance.

These questions relate to the proper interpretation of the phrase

"inability to discharge the powers and duties of said office," our

organic law providing that when the President shall suffer from such

inability the Presidential office shall devolve upon the Vice-President,

who must himself under like circumstances give place to such officer as

Congress may by law appoint to act as President.

I need not here set forth the numerous and interesting inquiries which

are suggested by these words of the Constitution. They were fully stated

in my first communication to Congress and have since been the subject of

frequent deliberations in that body.

It is greatly to be hoped that these momentous questions will find

speedy solution, lest emergencies may arise when longer delay will be

impossible and any determination, albeit the wisest, may furnish cause

for anxiety and alarm.

For the reasons fully stated in my last annual message I repeat my

recommendation that Congress propose an amendment to that provision of

the Constitution which prescribes the formalities for the enactment of

laws, whereby, in respect to bills for the appropriation of public

moneys, the Executive may be enabled, while giving his approval to

particular items, to interpose his veto as to such others as do not

commend themselves to his judgment.

The fourteenth amendment of the Constitution confers the rights of

citizenship upon all persons born or naturalized in the United States

and subject to the jurisdiction thereof. It was the special purpose of

this amendment to insure to members of the colored race the full

enjoyment of civil and political rights. Certain statutory provisions

intended to secure the enforcement of those rights have been recently

declared unconstitutional by the Supreme Court.

Any legislation whereby Congress may lawfully supplement the guaranties

which the Constitution affords for the equal enjoyment by all the

citizens of the United States of every right, privilege, and immunity

of citizenship will receive my unhesitating approval.

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