Section 2 of Railway Mail Rule IV is hereby amended by substituting for

clause (_b_) of said section the following:

(_b_) The Commission shall certify from the register of the State or

Territory in which the vacancy exists the names of the three eligibles

thereon having the highest averages, resident in the counties of said

State or Territory through or on the borders of which the section of the

road passes on which the person to be appointed is to serve, who have

not been three times certified: _Provided_, That if there are not three

eligibles resident in said counties, then certification shall be made in

like manner from the counties of said State or Territory nearest to the

line of said road in which there are three eligibles; or if there are

not three eligibles upon the register of said State or Territory, then

certification may be made from the register of any adjoining State or

Territory: _Provided further_, That if upon the register of the State

or Territory in which vacancy exists there are the names of eligibles

having a claim of preference under section 1754, Revised Statutes, the

names of such eligibles shall be certified before the names of other

eligibles of higher grade.

At the end of the rule add an additional section, as follows:

7. In case of public and pressing exigency demanding the immediate

employment of experienced railway mail clerks who can not be at once

supplied in the manner provided for in section 2 of this rule, or by

transfer under Rule V, or reappointment under Rule VI, there may be

employed, without examination or certification, under such regulations

as the Postmaster-General may prescribe, for a period not to exceed

thirty days, which, with the consent of the Commission, may be extended

to sixty days, any persons who have been in the railway mail service,

who have the requisite knowledge and experience, who may be available.

Every such employment and the reasons therefor shall be at once

reported to the Commission.

Approved, November 1, 1889.

BENJ. HARRISON.

AMENDMENT OF CIVIL-SERVICE RULES.

Special Customs Rule No. 1 is hereby amended by adding to the places

excepted from examination at the port of New York the following:

Office of the General Appraiser: Chief clerk and law clerk.

Approved, November 18, 1889.

BENJ. HARRISON.

FIRST ANNUAL MESSAGE.

EXECUTIVE MANSION, _Washington, December 3, 1889_.

_To the Senate and House of Representatives_:

There are few transactions in the administration of the Government

that are even temporarily held in the confidence of those charged

with the conduct of the public business. Every step taken is under the

observation of an intelligent and watchful people. The state of the

Union is known from day to day, and suggestions as to needed legislation

find an earlier voice than that which speaks in these annual

communications of the President to Congress.

Good will and cordiality have characterized our relations and

correspondence with other governments, and the year just closed leaves

few international questions of importance remaining unadjusted. No

obstacle is believed to exist that can long postpone the consideration

and adjustment of the still pending questions upon satisfactory and

honorable terms. The dealings of this Government with other states have

been and should always be marked by frankness and sincerity, our

purposes avowed, and our methods free from intrigue. This course has

borne rich fruit in the past, and it is our duty as a nation to preserve

the heritage of good repute which a century of right dealing with

foreign governments has secured to us.

It is a matter of high significance and no less of congratulation that

the first year of the second century of our constitutional existence

finds as honored guests within our borders the representatives of all

the independent States of North and South America met together in

earnest conference touching the best methods of perpetuating and

expanding the relations of mutual interest and friendliness existing

among them. That the opportunity thus afforded for promoting closer

international relations and the increased prosperity of the States

represented will be used for the mutual good of all I can not permit

myself to doubt. Our people will await with interest and confidence the

results to flow from so auspicious a meeting of allied and in large part

identical interests.

The recommendations of this international conference of enlightened

statesmen will doubtless have the considerate attention of Congress and

its cooperation in the removal of unnecessary barriers to beneficial

intercourse between the nations of America. But while the commercial

results which it is hoped will follow this conference are worthy of

pursuit and of the great interests they have excited, it is believed

that the crowning benefit will be found in the better securities which

may be devised for the maintenance of peace among all American nations

and the settlement of all contentions by methods that a Christian

civilization can approve. While viewing with interest our national

resources and products, the delegates will, I am sure, find a higher

satisfaction in the evidences of unselfish friendship which everywhere

attend their intercourse with our people.

Another international conference having great possibilities for good has

lately assembled and is now in session in this capital. An invitation

was extended by the Government, under the act of Congress of July 9,

1888, to all maritime nations to send delegates to confer touching the

revision and amendment of the rules and regulations governing vessels

at sea and to adopt a uniform system of marine signals. The response to

this invitation has been very general and very cordial. Delegates from

twenty-six nations are present in the conference, and they have entered

upon their useful work with great zeal and with an evident appreciation

of its importance. So far as the agreement to be reached may require

legislation to give it effect, the cooperation of Congress is

confidently relied upon.

It is an interesting, if not, indeed, an unprecedented, fact that the

two international conferences have brought together here the accredited

representatives of thirty-three nations.

Bolivia, Ecuador, and Honduras are now represented by resident envoys of

the plenipotentiary grade. All the States of the American system now

maintain diplomatic representation at this capital.

In this connection it may be noted that all the nations of the Western

Hemisphere, with one exception, send to Washington envoys extraordinary

and ministers plenipotentiary, being the highest grade accredited to

this Government. The United States, on the contrary, sends envoys of

lower grades to some of our sister Republics. Our representative in

Paraguay and Uruguay is a minister resident, while to Bolivia we send a

minister resident and consul-general. In view of the importance of our

relations with the States of the American system, our diplomatic agents

in those countries should be of the uniform rank of envoy extraordinary

and minister plenipotentiary. Certain missions were so elevated by the

last Congress with happy effect, and I recommend the completion of the

reform thus begun, with the inclusion also of Hawaii and Hayti, in view

of their relations to the American system of states.

I also recommend that timely provision be made for extending to Hawaii

an invitation to be represented in the international conference now

sitting at this capital.

Our relations with China have the attentive consideration which their

magnitude and interest demand. The failure of the treaty negotiated

under the Administration of my predecessor for the further and more

complete restriction of Chinese labor immigration, and with it the

legislation of the last session of Congress dependent thereon, leaves

some questions open which Congress should now approach in that wise and

just spirit which should characterize the relations of two great and

friendly powers. While our supreme interests demand the exclusion of

a laboring element which experience has shown to be incompatible with

our social life, all steps to compass this imperative need should be

accompanied with a recognition of the claim of those strangers now

lawfully among us to humane and just treatment.

The accession of the young Emperor of China marks, we may hope, an era

of progress and prosperity for the great country over which he is called

to rule.

The present state of affairs in respect to the Samoan Islands is

encouraging. The conference which was held in this city in the summer

of 1887 between the representatives of the United States, Germany, and

Great Britain having been adjourned because of the persistent divergence

of views which was developed in its deliberations, the subsequent course

of events in the islands gave rise to questions of a serious character.

On the 4th of February last the German minister at this capital, in

behalf of his Government, proposed a resumption of the conference at

Berlin. This proposition was accepted, as Congress in February last was

informed.

Pursuant to the understanding thus reached, commissioners were appointed

by me, by and with the advice and consent of the Senate, who proceeded

to Berlin, where the conference was renewed. The deliberations extended

through several weeks, and resulted in the conclusion of a treaty which

will be submitted to the Senate for its approval. I trust that the

efforts which have been made to effect an adjustment of this question

will be productive of the permanent establishment of law and order in

Samoa upon the basis of the maintenance of the rights and interests of

the natives as well as of the treaty powers.

The questions which have arisen during the past few years between Great

Britain and the United States are in abeyance or in course of amicable

adjustment.

On the part of the government of the Dominion of Canada an effort has

been apparent during the season just ended to administer the laws and

regulations applicable to the fisheries with as little occasion for

friction as was possible, and the temperate representations of this

Government in respect of cases of undue hardship or of harsh

interpretations have been in most cases met with measures of transitory

relief. It is trusted that the attainment of our just rights under

existing treaties and in virtue of the concurrent legislation of the two

contiguous countries will not be long deferred and that all existing

causes of difference may be equitably adjusted.

I recommend that provision be made by an international agreement for

visibly marking the water boundary between the United States and Canada

in the narrow channels that join the Great Lakes. The conventional line

therein traced by the northwestern boundary survey years ago is not in

all cases readily ascertainable for the settlement of jurisdictional

questions.

A just and acceptable enlargement of the list of offenses for which

extradition may be claimed and granted is most desirable between this

country and Great Britain. The territory of neither should become a

secure harbor for the evil doers of the other through any avoidable

shortcoming in this regard. A new treaty on this subject between the two

powers has been recently negotiated and will soon be laid before the

Senate.

The importance of the commerce of Cuba and Puerto Rico with the United

States, their nearest and principal market, justifies the expectation

that the existing relations may be beneficially expanded. The

impediments resulting from varying dues on navigation and from the

vexatious treatment of our vessels on merely technical grounds of

complaint in West India ports should be removed.

The progress toward an adjustment of pending claims between the United

States and Spain is not as rapid as could be desired.

Questions affecting American interests in connection with railways

constructed and operated by our citizens in Peru have claimed the

attention of this Government. It is urged that other governments in

pressing Peru to the payment of their claims have disregarded the

property rights of American citizens. The matter will be carefully

investigated with a view to securing a proper and equitable adjustment.

A similar issue is now pending with Portugal. The Delagoa Bay Railway,

in Africa, was constructed under a concession by Portugal to an American

citizen. When nearly completed the road was seized by the agents of the

Portuguese Government. Formal protest has been made through our minister

at Lisbon against this act, and no proper effort will be spared to

secure proper relief.

In pursuance of the charter granted by Congress and under the terms of

its contract with the Government of Nicaragua the Interoceanic Canal

Company has begun the construction of the important waterway between the

two oceans which its organization contemplates. Grave complications for

a time seemed imminent, in view of a supposed conflict of jurisdiction

between Nicaragua and Costa Rica in regard to the accessory privileges

to be conceded by the latter Republic toward the construction of works

on the San Juan River, of which the right bank is Costa Rican territory.

I am happy to learn that a friendly arrangement has been effected

between the two nations. This Government has held itself ready to

promote in every proper way the adjustment of all questions that might

present obstacles to the completion of a work of such transcendent

importance to the commerce of this country, and, indeed, to the

commercial interests of the world.

The traditional good feeling between this country and the French

Republic has received additional testimony in the participation of

our Government and people in the international exposition held at

Paris during the past summer. The success of our exhibitors has been

gratifying. The report of the commission will be laid before Congress

in due season.

This Government has accepted, under proper reserve as to its policy in

foreign territories, the invitation of the Government of Belgium to take

part in an international congress, which opened at Brussels on the 16th

of November, for the purpose of devising measures to promote the

abolition of the slave trade in Africa and to prevent the shipment of

slaves by sea. Our interest in the extinction of this crime against

humanity in the regions where it yet survives has been increased by the

results of emancipation within our own borders.

With Germany the most cordial relations continue. The questions arising

from the return to the Empire of Germans naturalized in this country are

considered and disposed of in a temperate spirit to the entire

satisfaction of both Governments.

It is a source of great satisfaction that the internal disturbances of

the Republic of Hayti are at last happily ended, and that an apparently

stable government has been constituted. It has been duly recognized by

the United States.

A mixed commission is now in session in this capital for the settlement

of long-standing claims against the Republic of Venezuela, and it is

hoped that a satisfactory conclusion will be speedily reached. This

Government has not hesitated to express its earnest desire that the

boundary dispute now pending between Great Britain and Venezuela may be

adjusted amicably and in strict accordance with the historic title of

the parties.

The advancement of the Empire of Japan has been evidenced by the recent

promulgation of a new constitution, containing valuable guaranties of

liberty and providing for a responsible ministry to conduct the

Government.

It is earnestly recommended that our judicial rights and processes in

Korea be established on a firm basis by providing the machinery

necessary to carry out treaty stipulations in that regard.

The friendliness of the Persian Government continues to be shown by its

generous treatment of Americans engaged in missionary labors and by the

cordial disposition of the Shah to encourage the enterprise of our

citizens in the development of Persian resources.

A discussion is in progress touching the jurisdictional treaty rights of

the United States in Turkey. An earnest effort will be made to define

those rights to the satisfaction of both Governments.

Questions continue to arise in our relations with several countries in

respect to the rights of naturalized citizens. Especially is this the

case with France, Italy, Russia, and Turkey, and to a less extent with

Switzerland. From time to time earnest efforts have been made to

regulate this subject by conventions with those countries. An improper

use of naturalization should not be permitted, but it is most important

that those who have been duly naturalized should everywhere be accorded

recognition of the rights pertaining to the citizenship of the country

of their adoption. The appropriateness of special conventions for that

purpose is recognized in treaties which this Government has concluded

with a number of European States, and it is advisable that the

difficulties which now arise in our relations with other countries on

the same subject should be similarly adjusted.

The recent revolution in Brazil in favor of the establishment of a

republican form of government is an event of great interest to the

United States. Our minister at Rio de Janeiro was at once instructed to

maintain friendly diplomatic relations with the Provisional Government,

and the Brazilian representatives at this capital were instructed by

the Provisional Government to continue their functions. Our friendly

intercourse with Brazil has therefore suffered no interruption.

Our minister has been further instructed to extend on the part of this

Government a formal and cordial recognition of the new Republic so soon

as the majority of the people of Brazil shall have signified their

assent to its establishment and maintenance.

Within our own borders a general condition of prosperity prevails. The

harvests of the last summer were exceptionally abundant, and the trade

conditions now prevailing seem to promise a successful season to the

merchant and the manufacturer and general employment to our working

people.

The report of the Secretary of the Treasury for the fiscal year ending

June 30, 1889, has been prepared and will be presented to Congress.

It presents with clearness the fiscal operations of the Government, and

I avail myself of it to obtain some facts for use here.

The aggregate receipts from all sources for the year were

$387,050,058.84, derived as follows:

From customs $223,832,741.69

From internal revenue 130,881,513.92

From miscellaneous sources 32,335,803.23

The ordinary expenditures for the same period were $281,996,615.60,

and the total expenditures, including the sinking fund, were

$329,579,929.25. The excess of receipts over expenditures was, after

providing for the sinking fund, $57,470,129.59.

For the current fiscal year the total revenues, actual and estimated,

are $385,000,000, and the ordinary expenditures, actual and estimated,

are $293,000,000, making with the sinking fund a total expenditure of

$341,321,116.99, leaving an estimated surplus of $43,678,883.01.

During the fiscal year there was applied to the purchase of bonds, in

addition to those for the sinking fund, $90,456,172.35, and during the

first quarter of the current year the sum of $37,838,937.77, all of

which were credited to the sinking fund. The revenues for the fiscal

year ending June 30, 1891, are estimated by the Treasury Department at

$385,000,000, and the expenditures for the same period, including the

sinking fund, at $341,430,477.70. This shows an estimated surplus for

that year of $43,569,522.30, which is more likely to be increased than

reduced when the actual transactions are written up.

The existence of so large an actual and anticipated surplus should

have the immediate attention of Congress, with a view to reducing the

receipts of the Treasury to the needs of the Government as closely as

may be. The collection of moneys not needed for public uses imposes an

unnecessary burden upon our people, and the presence of so large a

surplus in the public vaults is a disturbing element in the conduct

of private business. It has called into use expedients for putting

it into circulation of very questionable propriety. We should not

collect revenue for the purpose of anticipating our bonds beyond the

requirements of the sinking fund, but any unappropriated surplus in the

Treasury should be so used, as there is no other lawful way of returning

the money to circulation, and the profit realized by the Government

offers a substantial advantage.

The loaning of public funds to the banks without interest upon the

security of Government bonds I regard as an unauthorized and dangerous

expedient. It results in a temporary and unnatural increase of the

banking capital of favored localities and compels a cautious and gradual

recall of the deposits to avoid injury to the commercial interests. It

is not to be expected that the banks having these deposits will sell

their bonds to the Treasury so long as the present highly beneficial

arrangement is continued. They now practically get interest both upon

the bonds and their proceeds. No further use should be made of this

method of getting the surplus into circulation, and the deposits now

outstanding should be gradually withdrawn and applied to the purchase of

bonds. It is fortunate that such a use can be made of the existing

surplus, and for some time to come of any casual surplus that may exist

after Congress has taken the necessary steps for a reduction of the

revenue. Such legislation should be promptly but very considerately

enacted.

I recommend a revision of our tariff law both in its administrative

features and in the schedules. The need of the former is generally

conceded, and an agreement upon the evils and inconveniences to be

remedied and the best methods for their correction will probably not be

difficult. Uniformity of valuation at all our ports is essential, and

effective measures should be taken to secure it. It is equally desirable

that questions affecting rates and classifications should be promptly

decided.

The preparation of a new schedule of customs duties is a matter of great

delicacy because of its direct effect upon the business of the country,

and of great difficulty by reason of the wide divergence of opinion as

to the objects that may properly be promoted by such legislation. Some

disturbance of business may perhaps result from the consideration of

this subject by Congress, but this temporary ill effect will be reduced

to the minimum by prompt action and by the assurance which the country

already enjoys that any necessary changes will be so made as not to

impair the just and reasonable protection of our home industries. The

inequalities of the law should be adjusted, but the protective principle

should be maintained and fairly applied to the products of our farms as

well as of our shops. These duties necessarily have relation to other

things besides the public revenues. We can not limit their effects by

fixing our eyes on the public Treasury alone. They have a direct

relation to home production, to work, to wages, and to the commercial

independence of our country, and the wise and patriotic legislator

should enlarge the field of his vision to include all of these. The

necessary reduction in our public revenues can, I am sure, be made

without making the smaller burden more onerous than the larger by reason

of the disabilities and limitations which the process of reduction puts

upon both capital and labor. The free list can very safely be extended

by placing thereon articles that do not offer injurious competition to

such domestic products as our home labor can supply. The removal of the

internal tax upon tobacco would relieve an important agricultural

product from a burden which was imposed only because our revenue from

customs duties was insufficient for the public needs. If safe provision

against fraud can be devised, the removal of the tax upon spirits used

in the arts and in manufactures would also offer an unobjectionable

method of reducing the surplus.

A table presented by the Secretary of the Treasury showing the amount

of money of all kinds in circulation each year from 1878 to the present

time is of interest. It appears that the amount of national-bank notes

in circulation has decreased during that period $114,109,729, of which

$37,799,229 is chargeable to the last year. The withdrawal of bank

circulation will necessarily continue under existing conditions. It is

probable that the adoption of the suggestions made by the Comptroller

of the Currency, namely, that the minimum deposit of bonds for the

establishment of banks be reduced and that an issue of notes to the

par value of the bonds be allowed, would help to maintain the bank

circulation. But while this withdrawal of bank notes has been going on

there has been a large increase in the amount of gold and silver coin in

circulation and in the issues of gold and silver certificates.

The total amount of money of all kinds in circulation on March 1,

1878, was $805,793,807, while on October 1, 1889, the total was

$1,405,018,000. There was an increase of $293,417,552 in gold coin,

of $57,554,100 in standard silver dollars, of $72,311,249 in gold

certificates, of $276,619,715 in silver certificates, and of $14,073,787

in United States notes, making a total of $713,976,403. There was during

the same period a decrease of $114,109,729 in bank circulation and of

$642,481 in subsidiary silver. The net increase was $599,224,193. The

circulation per capita has increased about $5 during the time covered by

the table referred to.

The total coinage of silver dollars was on November 1, 1889,

$343,638,001, of which $283,539,521 were in the Treasury vaults and

$60,098,480 were in circulation. Of the amount in the vaults

$277,319,944 were represented by outstanding silver certificates,

leaving $6,219,577 not in circulation and not represented by

certificates.

The law requiring the purchase by the Treasury of $2,000,000 worth of

silver bullion each month, to be coined into silver dollars of 412-1/2

grains, has been observed by the Department, but neither the present

Secretary nor any of his predecessors has deemed it safe to exercise the

discretion given by law to increase the monthly purchases to $4,000,000.

When the law was enacted (February 28, 1878) the price of silver in the

market was $1.204 Per ounce, making the bullion value of the dollar 93

cents. Since that time the price has fallen as low as 91.2 cents per

ounce, reducing the bullion value of the dollar to 70.6 cents. Within

the last few months the market price has somewhat advanced, and on the

1st day of November last the bullion value of the silver dollar was 72

cents.

The evil anticipations which have accompanied the coinage and use of the

silver dollar have not been realized. As a coin it has not had general

use, and the public Treasury has been compelled to store it. But this

is manifestly owing to the fact that its paper representative is more

convenient. The general acceptance and the use of the silver certificate

show that silver has not been otherwise discredited. Some favorable

conditions have contributed to maintain this practical equality in their

commercial use between the gold and silver dollars; but some of these

are trade conditions that statutory enactments do not control and of the

continuance of which we can not be certain.

I think it is clear that if we should make the coinage of silver at the

present ratio free we must expect that the difference in the bullion

values of the gold and silver dollars will be taken account of in

commercial transactions; and I fear the same result would follow any

considerable increase of the present rate of coinage. Such a result

would be discreditable to our financial management and disastrous to all

business interests. We should not tread the dangerous edge of such a

peril. And, indeed, nothing more harmful could happen to the silver

interests. Any safe legislation upon this subject must secure the

equality of the two coins in their commercial uses.

I have always been an advocate of the use of silver in our currency.

We are large producers of that metal, and should not discredit it. To

the plan which will be presented by the Secretary of the Treasury for

the issuance of notes or certificates upon the deposit of silver bullion

at its market value I have been able to give only a hasty examination,

owing to the press of other matters and to the fact that it has been

so recently formulated. The details of such a law require careful

consideration, but the general plan suggested by him seems to satisfy

the purpose--to continue the use of silver in connection with our

currency and at the same time to obviate the danger of which I have

spoken. At a later day I may communicate further with Congress upon this

subject.

The enforcement of the Chinese exclusion act has been found to be very

difficult on the northwestern frontier. Chinamen landing at Victoria

find it easy to pass our border, owing to the impossibility with the

force at the command of the customs officers of guarding so long an

inland line. The Secretary of the Treasury has authorized the employment

of additional officers, who will be assigned to this duty, and every

effort will be made to enforce the law. The Dominion exacts a head tax

of $50 for each Chinaman landed, and when these persons, in fraud of our

law, cross into our territory and are apprehended our officers do not

know what to do with them, as the Dominion authorities will not suffer

them to be sent back without a second payment of the tax. An effort will

be made to reach an understanding that will remove this difficulty.

The proclamation required by section 3 of the act of March 2, 1889,

relating to the killing of seals and other fur-bearing animals, was

issued by me on the 21st day of March,[2] and a revenue vessel was

dispatched to enforce the laws and protect the interests of the United

States. The establishment of a refuge station at Point Barrow, as

directed by Congress, was successfully accomplished.

Judged by modern standards, we are practically without coast defenses.

Many of the structures we have would enhance rather than diminish the

perils of their garrisons if subjected to the fire of improved guns, and

very few are so located as to give full effect to the greater range of

such guns as we are now making for coast-defense uses. This general

subject has had consideration in Congress for some years, and the

appropriation for the construction of large rifled guns made one year

ago was, I am sure, the expression of a purpose to provide suitable

works in which these guns might be mounted. An appropriation now made

for that purpose would not advance the completion of the works beyond

our ability to supply them with fairly effective guns.

The security of our coast cities against foreign attacks should not rest

altogether in the friendly disposition of other nations. There should be

a second line wholly in our own keeping. I very urgently recommend an

appropriation at this session for the construction of such works in our

most exposed harbors.

I approve the suggestion of the Secretary of War that provision be made

for encamping companies of the National Guard in our coast works for

a specified time each year and for their training in the use of heavy

guns. His suggestion that an increase of the artillery force of the Army

is desirable is also, in this connection, commended to the consideration

of Congress.

The improvement of our important rivers and harbors should be promoted

by the necessary appropriations. Care should be taken that the

Government is not committed to the prosecution of works not of public

and general advantage and that the relative usefulness of works of that

class is not overlooked. So far as this work can ever be said to be

completed, I do not doubt that the end would be sooner and more

economically reached if fewer separate works were undertaken at the same

time, and those selected for their greater general interest were more

rapidly pushed to completion. A work once considerably begun should not

be subjected to the risks and deterioration which interrupted or

insufficient appropriations necessarily occasion.

The assault made by David S. Terry upon the person of Justice Field,

of the Supreme Court of the United States, at Lathrop, Cal., in August

last, and the killing of the assailant by a deputy United States marshal

who had been deputed to accompany Justice Field and to protect him from

anticipated violence at the hands of Terry, in connection with the legal

proceedings which have followed, suggest questions which, in my

judgment, are worthy of the attention of Congress.

I recommend that more definite provision be made by law not only for the

protection of Federal officers, but for a full trial of such cases in

the United States courts. In recommending such legislation I do not at

all impeach either the general adequacy of the provision made by the

State laws for the protection of all citizens or the general good

disposition of those charged with the execution of such laws to give

protection to the officers of the United States. The duty of protecting

its officers, as such, and of punishing those who assault them on

account of their official acts should not be devolved expressly or by

acquiescence upon the local authorities.

Events which have been brought to my attention happening in other

parts of the country have also suggested the propriety of extending by

legislation fuller protection to those who may be called as witnesses in

the courts of the United States. The law compels those who are supposed

to have knowledge of public offenses to attend upon our courts and grand

juries and to give evidence. There is a manifest resulting duty that

these witnesses shall be protected from injury on account of their

testimony. The investigations of criminal offenses are often rendered

futile and the punishment of crime impossible by the intimidation of

witnesses.

The necessity of providing some more speedy method for disposing of the

cases which now come for final adjudication to the Supreme Court becomes

every year more apparent and urgent. The plan of providing some

intermediate courts having final appellate jurisdiction of certain

classes of questions and cases has, I think, received a more general

approval from the bench and bar of the country than any other. Without

attempting to discuss details, I recommend that provision be made for

the establishment of such courts.

The salaries of the judges of the district courts in many of the

districts are, in my judgment, inadequate. I recommend that all such

salaries now below $5,000 per annum be increased to that amount. It is

quite true that the amount of labor performed by these judges is very

unequal, but as they can not properly engage in other pursuits to

supplement their incomes the salary should be such in all cases as to

provide an independent and comfortable support.

Earnest attention should be given by Congress to a consideration of the

question how far the restraint of those combinations of capital commonly

called "trusts" is matter of Federal jurisdiction. When organized, as

they often are, to crush out all healthy competition and to monopolize

the production or sale of an article of commerce and general necessity,

they are dangerous conspiracies against the public good, and should be

made the subject of prohibitory and even penal legislation.

The subject of an international copyright has been frequently commended

to the attention of Congress by my predecessors. The enactment of such a

law would be eminently wise and just.

Our naturalization laws should be so revised as to make the inquiry into

the moral character and good disposition toward our Government of the

persons applying for citizenship more thorough. This can only be done

by taking fuller control of the examination, by fixing the times for

hearing such applications, and by requiring the presence of some one who

shall represent the Government in the inquiry. Those who are the avowed

enemies of social order or who come to our shores to swell the injurious

influence and to extend the evil practices of any association that

defies our laws should not only be denied citizenship, but a domicile.

The enactment of a national bankrupt law of a character to be a

permanent part of our general legislation is desirable. It should be

simple in its methods and inexpensive in its administration.

The report of the Postmaster-General not only exhibits the operations

of the Department for the last fiscal year, but contains many valuable

suggestions for the improvement and extension of the service, which are

commended to your attention. No other branch of the Government has so

close a contact with the daily life of the people. Almost everyone uses

the service it offers, and every hour gained in the transmission of the

great commercial mails has an actual and possible value that only those

engaged in trade can understand.

The saving of one day in the transmission of the mails between New York

and San Francisco, which has recently been accomplished, is an incident

worthy of mention.

The plan suggested of a supervision of the post-offices in separate

districts that shall involve instruction and suggestion and a rating

of the efficiency of the postmasters would, I have no doubt, greatly

improve the service.

A pressing necessity exists for the erection of a building for the joint

use of the Department and of the city post-office. The Department was

partially relieved by renting outside quarters for a part of its force,

but it is again overcrowded. The building used by the city office never

was fit for the purpose, and is now inadequate and unwholesome.

The unsatisfactory condition of the law relating to the transmission

through the mails of lottery advertisements and remittances is clearly

stated by the Postmaster-General, and his suggestion as to amendments

should have your favorable consideration.

The report of the Secretary of the Navy shows a reorganization of the

bureaus of the Department that will, I do not doubt, promote the

efficiency of each.

In general, satisfactory progress has been made in the construction of

the new ships of war authorized by Congress. The first vessel of the new

Navy, the _Dolphin_, was subjected to very severe trial tests and to

very much adverse criticism; but it is gratifying to be able to state

that a cruise around the world, from which she has recently returned,

has demonstrated that she is a first-class vessel of her rate.

The report of the Secretary shows that while the effective force of the

Navy is rapidly increasing by reason of the improved build and armament

of the new ships, the number of our ships fit for sea duty grows very

slowly. We had on the 4th of March last 37 serviceable ships, and though

4 have since been added to the list, the total has not been increased,

because in the meantime 4 have been lost or condemned. Twenty-six

additional vessels have been authorized and appropriated for; but it is

probable that when they are completed our list will only be increased to

42--a gain of 5. The old wooden-ships are disappearing almost as fast as

the new vessels are added. These facts carry their own argument. One of

the new ships may in fighting strength be equal to two of the old, but

it can not do the cruising duty of two. It is important, therefore, that

we should have a more rapid increase in the number of serviceable ships.

I concur in the recommendation of the Secretary that the construction of

8 armored ships, 3 gunboats, and 5 torpedo boats be authorized.

An appalling calamity befell three of our naval vessels on duty at the

Samoan Islands, in the harbor of Apia, in March last, involving the

loss of 4 officers and 47 seamen, of two vessels, the _Trenton_ and the

_Vandalia_, and the disabling of a third, the _Nipsic_. Three vessels of

the German navy, also in the harbor, shared with our ships the force of

the hurricane and suffered even more heavily. While mourning the brave

officers and men who died facing with high resolve perils greater than

those of battle, it is most gratifying to state that the credit of the

American Navy for seamanship, courage, and generosity was magnificently

sustained in the storm-beaten harbor of Apia.

The report of the Secretary of the Interior exhibits the transactions

of the Government with the Indian tribes. Substantial progress has been

made in the education of the children of school age and in the allotment

of lands to adult Indians. It is to be regretted that the policy of

breaking up the tribal relation and of dealing with the Indian as an

individual did not appear earlier in our legislation. Large reservations

held in common and the maintenance of the authority of the chiefs and

headmen have deprived the individual of every incentive to the exercise

of thrift, and the annuity has contributed an affirmative impulse toward

a state of confirmed pauperism.

Our treaty stipulations should be observed with fidelity and our

legislation should be highly considerate of the best interests of

an ignorant and helpless people. The reservations are now generally

surrounded by white settlements. We can no longer push the Indian back

into the wilderness, and it remains only by every suitable agency to

push him upward into the estate of a self-supporting and responsible

citizen. For the adult the first step is to locate him upon a farm,

and for the child to place him in a school.

School attendance should be promoted by every moral agency, and those

failing should be compelled. The national schools for Indians have been

very successful and should be multiplied, and as far as possible should

be so organized and conducted as to facilitate the transfer of the

schools to the States or Territories in which they are located when the

Indians in a neighborhood have accepted citizenship and have become

otherwise fitted for such a transfer. This condition of things will be

attained slowly, but it will be hastened by keeping it in mind; and in

the meantime that cooperation between the Government and the mission

schools which has wrought much good should be cordially and impartially

maintained.

The last Congress enacted two distinct laws relating to negotiations

with the Sioux Indians of Dakota for a relinquishment of a portion of

their lands to the United States and for dividing the remainder into

separate reservations. Both were approved on the same day--March 2.

The one submitted to the Indians a specific proposition; the other

(section 3 of the Indian appropriation act) authorized the President

to appoint three commissioners to negotiate with these Indians for

the accomplishment of the same general purpose, and required that any

agreements made should be submitted to Congress for ratification.

On the 16th day of April last I appointed Hon. Charles Foster, of Ohio,

Hon. William Warner, of Missouri, and Major-General George Crook, of the

United States Army, commissioners under the last-named law. They were,

however, authorized and directed first to submit to the Indians the

definite proposition made to them by the act first mentioned, and only

in the event of a failure to secure the assent of the requisite number

to that proposition to open negotiations for modified terms under the

other act. The work of the commission was prolonged and arduous, but the

assent of the requisite number was, it is understood, finally obtained

to the proposition made by Congress, though the report of the commission

has not yet been submitted. In view of these facts, I shall not, as at

present advised, deem it necessary to submit the agreement to Congress

for ratification, but it will in due course be submitted for

information. This agreement releases to the United States about

9,000,000 acres of land.

The commission provided for by section 14 of the Indian appropriation

bill to negotiate with the Cherokee Indians and all other Indians owning

or claiming lands lying west of the ninety-sixth degree of longitude for

the cession to the United States of all such lands was constituted by

the appointment of Hon. Lucius Fairchild, of Wisconsin, Hon. John F.

Hartranft, of Pennsylvania, and Hon. Alfred M. Wilson, of Arkansas,

and organized on June 29 last. Their first conference with the

representatives of the Cherokees was held at Tahlequah July 29, with

no definite results. General John F. Hartranft, of Pennsylvania, was

prevented by ill health from taking part in the conference. His death,

which occurred recently, is justly and generally lamented by a people he

had served with conspicuous gallantry in war and with great fidelity in

peace. The vacancy thus created was filled by the appointment of Hon.

Warren G. Sayre, of Indiana.

A second conference between the commission and the Cherokees was begun

November 6, but no results have yet been obtained, nor is it believed

that a conclusion can be immediately expected. The cattle syndicate now

occupying the lands for grazing purposes is clearly one of the agencies

responsible for the obstruction of our negotiations with the Cherokees.

The large body of agricultural lands constituting what is known as the

"Cherokee Outlet" ought not to be, and, indeed, can not long be, held

for grazing and for the advantage of a few against the public interests

and the best advantage of the Indians themselves. The United States

has now under the treaties certain rights in these lands. These will

not be used oppressively, but it can not be allowed that those who by

sufferance occupy these lands shall interpose to defeat the wise and

beneficent purposes of the Government. I can not but believe that the

advantageous character of the offer made by the United States to the

Cherokee Nation for a full release of these lands as compared with other

suggestions now made to them will yet obtain for it a favorable

consideration.

Under the agreement made between the United States and the Muscogee (or

Creek) Nation of Indians on the 19th day of January, 1889, an absolute

title was secured by the United States to about 3,500,000 acres of land.

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