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State of the Union Addresses of Grover Cleveland

The addresses are separated by three asterisks: ***

Dates of addresses by Grover Cleveland in this eBook:

December 8, 1885

December 6, 1886

December 6, 1887

December 3, 1888

December 4, 1893

December 3, 1894

December 2, 1895

December 7, 1896

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State of the Union Address

Grover Cleveland

December 8, 1885

To the Congress of the United States:

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

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

United States. His distinguished public services, his complete integrity

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

record in his country's history.

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

by his fellow-countrymen were manifested by his election to offices of the

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

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

The Constitution, which requires those chosen to legislate for the people

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

President to give to Congress information of the state of the Union and

recommend to their consideration such measures as he shall deem necessary

and expedient. At the threshold of a compliance with these constitutional

directions it is well for us to bear in mind that our usefulness to the

people's interests will be promoted by a constant appreciation of the scope

and character of our respective duties as they relate to Federal

legislation. While the Executive may recommend such measures as he shall

deem expedient, the responsibility for legislative action must and should

rest upon those selected by the people to make their laws.

Contemplation of the grave and responsible functions assigned to the

respective branches of the Government under the Constitution will disclose

the partitions of power between our respective departments and their

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

intrusted to each in that spirit of comity and cooperation which is

essential to the proper fulfillment of the patriotic obligations which rest

upon us as faithful servants of the people.

The jealous watchfulness of our constituencies, great and small,

supplements their suffrages, and before the tribunal they establish every

public servant should be judged.

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

all foreign powers continue to be friendly. Our position after nearly a

century of successful constitutional government, maintenance of good faith

in all our engagements, the avoidance of complications with other nations,

and our consistent and amicable attitude toward the strong and weak alike

furnish proof of a political disposition which renders professions of good

will unnecessary. There are no questions of difficulty pending with any

foreign government.

The Argentine Government has revived the long dormant question of the

Falkland Islands by claiming from the United States indemnity for their

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

Lexington in breaking up a piratical colony on those islands in 1831, and

their subsequent occupation by Great Britain. In view of the ample

justification for the act of the Lexington and the derelict condition of

the islands before and after their alleged occupation by Argentine

colonists, this Government considers the claim as wholly groundless.

Question has arisen with the Government of Austria-Hungary touching the

representation of the United States at Vienna. Having under my

constitutional prerogative appointed an estimable citizen of unimpeached

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

Austria-Hungary invited this Government to take cognizance of certain

exceptions, based upon allegations against the personal acceptability of

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

appointment should be withdrawn. The reasons advanced were such as could

not be acquiesced in without violation of my oath of office and the

precepts of the Constitution, since they necessarily involved a limitation

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

Executive and required such an application of a religious test as a

qualification for office under the United States as would have resulted in

the practical disfranchisement of a large class of our citizens and the

abandonment of a vital principle in our Government. The Austro-Hungarian

Government finally decided not to receive Mr. Keiley as the envoy of the

United States, and that gentleman has since resigned his commission,

leaving the post vacant. I have made no new nomination, and the interests

of this Government at Vienna are now in the care of the secretary of

legation, acting as charge d'affaires ad interim.

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

of Guatemala to consolidate the several States into a single government. In

these contests between our neighboring States the United States forebore to

interfere actively, but lent the aid of their friendly offices in

deprecation of war and to promote peace and concord among the belligerents,

and by such counsel contributed importantly to the restoration of

tranquillity in that locality.

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

demanded of the Government at the beginning of this Administration the

employment of armed forces to fulfill its guaranties under the thirty-fifth

article of the treaty of 1846, in order to keep the transit open across the

Isthmus of Panama. Desirous of exercising only the powers expressly

reserved to us by the treaty, and mindful of the rights of Colombia, the

forces sent to the Isthmus were instructed to confine their action to

"positively and efficaciously" preventing the transit and its accessories

from being "interrupted or embarrassed."

The execution of this delicate and responsible task necessarily involved

police control where the local authority was temporarily powerless, but

always in aid of the sovereignty of Colombia.

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

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

expressions of its satisfaction.

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

restoration of peace on the Isthmus by the reestablishment of the

constituted Government there being thus accomplished, the forces of the

United States were withdrawn.

Pending these occurrences a question of much importance was presented by

decrees of the Colombian Government proclaiming the closure of certain

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

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

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

closure of ports not in the possession of the Government, but held by

hostile partisans, could not be recognized; neither could the vessels of

insurgents against the legitimate sovereignty be deemed hostes humani

generis within the precepts of international law, whatever might be the

definition and penalty of their acts under the municipal law of the State

against whose authority they were in revolt. The denial by this Government

of the Colombian propositions did not, however, imply the admission of a

belligerent status on the part of the insurgents.

The Colombian Government has expressed its willingness to negotiate

conventions for the adjustment by arbitration of claims by foreign citizens

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

insurrectionary forces.

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

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

repeatedly manifested during the last half century.

My immediate predecessor caused to be negotiated with Nicaragua a treaty

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

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

the action of that body thereon, I withdrew the treaty for reexamination.

Attentive consideration of its provisions leads me to withhold it from

resubmission to the Senate.

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

day, which proscribe entangling alliances with foreign states, I do not

favor a policy of acquisition of new and distant territory or the

incorporation of remote interests with our own.

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

that irresistible tide of commercial expansion which, as the concomitant of

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

increasing facilities of production, transportation, and communication to

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

instructs us to address ourselves mainly to the development of the vast

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

of the arts of peace within our own borders, though jealously alert in

preventing the American hemisphere from being involved in the political

problems and complications of distant governments. Therefore I am unable to

recommend propositions involving paramount privileges of ownership or

right outside of our own territory, when coupled with absolute and

unlimited engagements to defend the territorial integrity of the state

where such interests lie. While the general project of connecting the two

oceans by means of a canal is to be encouraged, I am of opinion that any

scheme to that end to be considered with favor should be free from the

features alluded to.

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

competent scientists to afford an entirely practicable transit for vessels

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

The obvious advantages of such a route, if feasible, over others more

remote from the axial lines of traffic between Europe and the pacific, and

particularly between the Valley of the Mississippi and the western coast of

North and South America, are deserving of consideration.

Whatever highway may be constructed across the barrier dividing the two

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

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

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

for warlike ambition. An engagement combining the construction, ownership,

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

defensive alliance for its protection, with the foreign state whose

responsibilities and rights we would share is, in my judgment, inconsistent

with such dedication to universal and neutral use, and would, moreover,

entail measures for its realization beyond the scope of our national polity

or present means.

The lapse of years has abundantly confirmed the wisdom and foresight of

those earlier Administrations which, long before the conditions of maritime

intercourse were changed and enlarged by the progress of the age,

proclaimed the vital need of interoceanic transit across the American

Isthmus and consecrated it in advance to the common use of mankind by their

positive declarations and through the formal obligation of treaties. Toward

such realization the efforts of my Administration will be applied, ever

bearing in mind the principles on which it must rest, and which were

declared in no uncertain tones by Mr. Cass, who, while Secretary of State,

in 1858, announced that "what the United States want in Central America,

next to the happiness of its people, is the security and neutrality of the

interoceanic routes which lead through it."

The construction of three transcontinental lines of railway, all in

successful operation, wholly within our territory, and uniting the Atlantic

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

interesting and impressive nature, and has created new conditions, not in

the routes of commerce only, but in political geography, which powerfully

affect our relations toward and necessarily increase our interests in any

transisthmian route which may be opened and employed for the ends of peace

and traffic, or, in other contingencies, for uses inimical to both.

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

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

Our experience already has proven the great importance of having the

competition between land carriage and water carriage fully developed, each

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

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

vast corporations.

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

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

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

nations and subject to the ambitions and warlike necessities of none.

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

made by Chief Engineer Menocal, will be communicated for your information.

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

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

negotiation for a claims convention with Chile, providing for their

submission to arbitration.

The harmony of our relations with China is fully sustained.

In the application of the acts lately passed to execute the treaty of 1880,

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

individual cases of hardship have occurred beyond the power of the

Executive to remedy, and calling for judicial determination.

The condition of the Chinese question in the Western States and Territories

is, despite this restrictive legislation, far from being satisfactory. The

recent outbreak in Wyoming Territory, where numbers of unoffending

Chinamen, indisputably within the protection of the treaties and the law,

were murdered by a mob, and the still more recent threatened outbreak of

the same character in Washington Territory, are fresh in the minds of all,

and there is apprehension lest the bitterness of feeling against the

Mongolian race on the Pacific Slope may find vent in similar lawless

demonstrations. All the power of this Government should be exerted to

maintain the amplest good faith toward China in the treatment of these men,

and the inflexible sternness of the law in bringing the wrongdoers to

justice should be insisted upon.

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

outbreaks and to aid the representatives of China in their investigation of

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

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

with Chinese laborers.

Race prejudice is the chief factor in originating these disturbances, and

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

and the good relationship we strive to maintain with China.

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

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

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

Chinese labor is demanded in other countries where like conditions prevail

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

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

inadequate to compass the end in view, I shall be prepared to give earnest

consideration to any further remedial measures, within the treaty limits,

which the wisdom of Congress may devise.

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

the sovereignty of His Majesty the King of the Belgians, who assumes its

chief magistracy in his personal character only, without making the new

State a dependency of Belgium. It is fortunate that a benighted region,

owing all it has of quickening civilization to the beneficence and

philanthropic spirit of this monarch, should have the advantage and

security of his benevolent supervision.

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

recognize the flag of the International Association of the Kongo has been

followed by formal recognition of the new nationality which succeeds to its

sovereign powers.

A conference of delegates of the principal commercial nations was held at

Berlin last winter to discuss methods whereby the Kongo basin might be kept

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

States on the understanding that their part should be merely deliberative,

without imparting to the results any binding character so far as the United

States were concerned. This reserve was due to the indisposition of this

Government to share in any disposal by an international congress of

jurisdictional questions in remote foreign territories. The results of the

conference were embodied in a formal act of the nature of an international

convention, which laid down certain obligations purporting to be binding on

the signatories, subject to ratification within one year. Notwithstanding

the reservation under which the delegates of the United States attended,

their signatures were attached to the general act in the same manner as

those of the plenipotentiaries of other governments, thus making the United

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

international engagement imposing on the signers the conservation of the

territorial integrity of distant regions where we have no established

interests or control.

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

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

to share in the obligation of enforcing neutrality in the remote valley of

the Kongo would be an alliance whose responsibilities we are not in a

position to assume, I abstain from asking the sanction of the Senate to

that general act.

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

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

country and his recommendations for the establishment of commercial

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

The commission appointed by my predecessor last winter to visit the Central

and South American countries and report on the methods of enlarging the

commercial relations of the United States therewith has submitted reports,

which will be laid before you.

No opportunity has been omitted to testify the friendliness of this

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

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

application made by the Korean Government to be allowed to employ American

officers as military instructors, to which the assent of Congress becomes

necessary, and I am happy to say this request has the concurrent sanction

of China and Japan.

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

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

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

impartial trial on announced charges and with all guaranties of defense

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

correspondence and repeated and earnest representations on our part Mr.

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

general decree of amnesty and pardoned by the Ecuadorian Executive and

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

Ecuadorian Government, but insisted upon by our own.

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

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

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

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

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

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

American citizens against France for spoliations committed prior to 1801.

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

before you.

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

France continue, notwithstanding the abundant demonstration of the absence

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

better understanding of the matter this vexatious prohibition will be

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

Germany, Austria, and other countries, where such food products are

absolutely excluded, without present prospect of reasonable change.

The interpretation of our existing treaties of naturalization by Germany

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

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

residential restrictions to which returning naturalized citizens of German

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

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

class of questions will doubtless lead to a satisfactory understanding.

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

Islands has attracted the attention of this Government by reason of

extensive interests of American citizens having grown up in those parts

during the past thirty years, and because the question of ownership

involves jurisdiction of matters affecting the status of our citizens under

civil and criminal law. While standing wholly aloof from the proprietary

issues raised between powers to both of which the United States are

friendly, this Government expects that nothing in the present contention

shall unfavorably affect our citizens carrying on a peaceful commerce or

there domiciled, and has so informed the Governments of Spain and Germany.

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

maintained during the past year.

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

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

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

ventures, of the operations of citizens of the United States engaged in

fishing in British American waters but for a diplomatic understanding

reached with Her Majesty's Government in June last, whereby assurance was

obtained that no interruption of those operations should take place during

the current fishing season.

In the interest of good neighborhood and of the commercial intercourse of

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

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

extensory arrangement above described was negotiated, I recommend that the

Congress provide for the appointment of a commission in which the

Governments of the United States and Great Britain shall be respectively

represented, charged with the consideration and settlement, upon a just,

equitable, and honorable basis, of the entire question of the fishing

rights of the two Governments and their respective citizens on the coasts

of the United States and British North America. The fishing interests being

intimately related to other general questions dependent upon contiguity and

intercourse, consideration thereof in all their equities might also

properly come within the purview of such a commission, and the fullest

latitude of expression on both sides should be permitted.

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

arctic exploring steamer Alert, which was generously given by Her Majesty's

Government to aid in the relief of the Greely expedition, was, after the

successful attainment of that humane purpose, returned to Great Britain, in

pursuance of the authority conferred by the act of March 3, 1885.

The inadequacy of the existing engagements for extradition between the

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

of the treaty of 1842, one of the earliest compacts in this regard entered

into by us, stipulated for surrender in respect of a limited number of

offenses. Other crimes no less inimical to the social welfare should be

embraced and the procedure of extradition brought in harmony with present

international practice. Negotiations with Her Majesty's Government for an

enlarged treaty of extradition have been pending since 1870, and I

entertain strong hopes that a satisfactory result may be soon attained.

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

treaty of cession with Russia, follows the demarcation assigned in a prior

treaty between Great Britain and Russia. Modern exploration discloses that

this ancient boundary is impracticable as a geographical fact. In the

unsettled condition of that region the question has lacked importance, but

the discovery of mineral wealth in the territory the line is supposed to

traverse admonishes that the time has come when an accurate knowledge of

the boundary is needful to avert jurisdictional complications. I recommend,

therefore, that provision be made for a preliminary reconnoissance by

officers of the United States, to the end of acquiring more precise

information on the subject. I have invited Her Majesty's Government to

consider with us the adoption of a more convenient line, to be established

by meridian observations or by known geographical features without the

necessity of an expensive survey of the whole.

The late insurrectionary movements in Hayti having been quelled, the

Government of that Republic has made prompt provision for adjudicating the

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

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

determined.

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

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

claimant has been made, which by the terms of the engagement is final. It

remains for Congress to provide for the payment of the stipulated moiety of

the expenses.

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

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

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

was sentenced to imprisonment, and, under the operation of a Haytian

statute, was denied relief secured to a native Haytian. This Government

asserted his treaty right to equal treatment with natives of Hayti in all

suits at law. Our contention was denied by the Haytian Government, which,

however, while still professing to maintain the ground taken against Mr.

Van Bokkelen's right, terminated the controversy by setting him at liberty

without explanation.

An international conference to consider the means of arresting the spread

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

adjourned to meet again on further notice. An expert delegate on behalf of

the United States has attended its sessions and will submit a report.

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

neighbors between whom the strongest ties of friendship and commercial

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

institutions and geographical propinquity.

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

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

unavoidably delayed, but I apprehend no difficulty in securing a

prolongation of the period for its accomplishment.

The lately concluded commercial treaty with Mexico still awaits the

stipulated legislation to carry its provisions into effect, for which one

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

in February last and since ratified on both sides.

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

adjoining countries, has been constitutionally confirmed by the treaty-

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

effective may not be long delayed.

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

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

material well-being of our sister Republic. Lines of railway, penetrating

to the heart and capital of the country, bring the two peoples into

mutually beneficial intercourse, and enlarged facilities of transit add to

profitable commerce, create new markets, and furnish avenues to otherwise

isolated communities.

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

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

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

conflict with Chile, and with the restoration of civil authority in that

distracted country, it is hoped that pending war claims of our citizens

will be adjusted.

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

existing treaties of commerce and extradition between the United States and

that country will terminate March 31, 1886.

Our good relationship with Russia continues.

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

Siberia bearing the testimonials voted by Congress to those who generously

succored the survivors of the unfortunate Jeannette expedition.

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

Spain.

The long-pending claim of the owners of the ship Masonic for loss suffered

through the admitted dereliction of the Spanish authorities in the

Philippine Islands has been adjusted by arbitration and an indemnity

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

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

gratifying confirmation.

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

consideration with a view to just and honorable settlement.

The operation of the commercial agreement with Spain of January 2--February

13, 1884, has been found inadequate to the commercial needs of the United

States and the Spanish Antilies, and the terms of the agreement are

subjected to conflicting interpretations in those islands.

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

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

neighborly intercourse of proximate communities, to which I elsewhere

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

annoying restrictions; and although a satisfactory termination is promised,

I am compelled to delay its announcement.

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

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

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

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

interesting and important subject of international copyright has been

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

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

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

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

subject.

The termination of the commercial treaty of 1862 between the United States

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

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

commercial rights of our citizens in Turkey come under the favored-nation

guaranties of the prior treaty of 1830, and as equal treatment is admitted

by the Porte, no inconvenience can result from the assent of this

Government to the revision of the Ottoman tariffs, in which the treaty

powers have been invited to join.

Questions concerning our citizens in Turkey may be affected by the Porte's

nonacquiescence in the right of expatriation and by the imposition of

religious tests as a condition of residence, in which this Government can

not concur. The United States must hold in their intercourse with every

power that the status of their citizens is to be respected and equal civil

privileges accorded to them without regard to creed, and affected by no

considerations save those growing out of domiciliary return to the land of

original allegiance or of unfulfilled personal obligations which may

survive, under municipal laws, after such voluntary return.

The negotiation with Venezuela relative to the rehearing of the awards of

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

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

point advanced by this Government, that the effects of the old treaty could

only be set aside by the operation of a new convention. A result in

substantial accord with the advisory suggestions contained in the joint

resolution of March 3, 1883, has been agreed upon and will shortly be

submitted to the Senate for ratification.

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

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

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

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

now no procurable stocks paying so high a rate of interest, the letter of

the statute is at present inapplicable, but its spirit is subserved by

continuing to make investments of this nature in current stocks bearing the

highest interest now paid. The statute, however, makes no provision for the

disposal of such accretions. It being contrary to the general rule of this

Government to allow interest on claims, I recommend the repeal of the

provision in question and the disposition, under a uniform rule, of the

present accumulations from investment of trust funds.

The inadequacy of existing legislation touching citizenship and

naturalization demands your consideration.

While recognizing the right of expatriation, no statutory provision exists

providing means for renouncing citizenship by an American citizen, native

born or naturalized, nor for terminating and vacating an improper

acquisition of citizenship. Even a fraudulent decree of naturalization can

not now be canceled. The privilege and franchise of American citizenship

should be granted with care, and extended to those only who intend in good

faith to assume its duties and responsibilities when attaining its

privileges and benefits. It should be withheld from those who merely go

through the forms of naturalization with the intent of escaping the duties

of their original allegiance without taking upon themselves those of their

new status, or who may acquire the rights of American citizenship for no

other than a hostile purpose toward their original governments. These evils

have had many flagrant illustrations.

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

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

naturalization granted by the various courts throughout the United States

now invested with that power.

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

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

definition by statute. The stranger coming hither with intent to remain,

establishing his residence in our midst, contributing to the general

welfare, and by his voluntary act declaring his purpose to assume the

responsibilities of citizenship, thereby gains an inchoate status which

legislation may properly define. The laws of certain States and Territories

admit a domiciled alien to the local franchise, conferring on him the

rights of citizenship to a degree which places him in the anomalous

position of being a citizen of a State and yet not of the United States

within the purview of Federal and international law.

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

right of alien domicile as distinguished from Federal naturalization.

The commercial relations of the United States with their immediate

neighbors and with important areas of traffic near our shores suggest

especially liberal intercourse between them and us.

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

reciprocal exemption from customs duties, other similar treaties were

initiated by my predecessor.

Recognizing the need of less obstructed traffic with Cuba and Puerto Rico,

and met by the desire of Spain to succor languishing interests in the

Antilles, steps were taken to attain those ends by a treaty of commerce. A

similar treaty was afterwards signed by the Dominican Republic.

Subsequently overtures were made by Her Britannic Majesty's Government for

a like mutual extension of commercial intercourse with the British West

Indian and South American dependencies, but without result.

On taking office I withdrew for reexamination the treaties signed with

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

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

character not covering the entire traffic.

These treaties contemplated the surrender by the United States of large

revenues for inadequate considerations. Upon sugar alone duties were

surrendered to an amount far exceeding all the advantages offered in

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

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

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

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

were contemplated. Moreover, embarrassing questions would have arisen under

the favored-nation clauses of treaties with other nations.

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

diminishes that independent control over its own revenues which is

essential for the safety and welfare of any government. Emergency calling

for an increase of taxation may at any time arise, and no engagement with a

foreign power should exist to hamper the action of the Government.

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

certain reductions and contingent exemptions from tonnage dues were made as

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

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

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

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

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

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

the United States from their home ports. This Government, however, holds

that the privileges granted by the act are purely geographical, inuring to

any vessel of any foreign power that may choose to engage in traffic

between this country and any port within the defined zone, and no warrant

exists under the most-favored-nation clause for the extension of the

privileges in question to vessels sailing to this country from ports

outside the limitation of the act.

Undoubtedly the relations of commerce with our near neighbors, whose

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

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

special and considerate treatment. It rests with Congress to consider what

legislative action may increase facilities of intercourse which contiguity

makes natural and desirable.

I earnestly urge that Congress recast the appropriations for the

maintenance of the diplomatic and consular service on a footing

commensurate with the importance of our national interests. At every post

where a representative is necessary the salary should be so graded as to

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

the so-called notarial extra official fees, which our officers abroad are

now permitted to treat as personal perquisites, should be done away with.

Every act requiring the certification and seal of the officer should be

taxable at schedule rates and the fee therefor returned to the Treasury. By

restoring these revenues to the public use the consular service would be

self-supporting, even with a liberal increase of the present low salaries.

In further prevention of abuses a system of consular inspection should be

instituted.

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

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

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

be authorized.

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

service as military or naval attaches at legations.

Some foreign governments do not recognize the union of consular with

diplomatic functions. Italy and Venezuela will only receive the appointee

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

a bond and submission to the responsibilities of an office whose duties he

can not discharge. The superadded title of consul-general should be

abandoned at all missions.

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

the extraterritorial courts in Oriental countries should replace the

present system, which labors under the disadvantage of combining judicial

and executive functions in the same office.

In several Oriental countries generous offers have been made of premises

for housing the legations of the United States. A grant of land for that

purpose was made some years since by Japan, and has been referred to in the

annual messages of my predecessor. The Siamese Government has made a gift

to the United States of commodious quarters in Bangkok. In Korea the late

minister was permitted to purchase a building from the Government for

legation use. In China the premises rented for the legation are favored as

to local charges. At Tangier the house occupied by our representative has

been for many years the property; this Government, having been given for

that purpose in 1822 by the Sultan of Morocco. I approve the suggestion

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

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

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

view to permanency and security. To this end I recommend that authority be

given to accept the gifts adverted to in Japan and Siam, and to purchase in

the other countries named, with provision for furniture and repairs. A

considerable saving in rentals would result.

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

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

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

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

knowledge of the varied manufactures and productions of this country and

their availability in exchange for the productions of those regions.

Past Congresses have had under consideration the advisability of abolishing

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

American artists. The odium of the policy which subjects to a high rate of

duty the paintings of foreign artists and exempts the productions of

American artists residing abroad, and who receive gratuitously advantages

and instruction, is visited upon our citizens engaged in art culture in

Europe, and has caused them with practical unanimity to favor the abolition

of such an ungracious distinction; and in their interest, and for other

obvious reasons, I strongly recommend it.

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

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

with his Department. The suggestions of the Secretary relating to the

practical operations of this important Department, and his recommendations

in the direction of simplification and economy, particularly in the work of

collecting customs duties, are especially urged upon the attention of

Congress.

The ordinary receipts from all sources for the fiscal year ended June 30,

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

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

given above, were $24,829,163.54 less than those for the year ended June

30, 1884. This diminution embraces a falling off of $13,595,550.42 in the

receipts from customs and $9,687,346.97 in the receipts from internal

revenue.

The total ordinary expenditures of the Government for the fiscal year were

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

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

the close of the previous year.

The expenditures are classified as follows:

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

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

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

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

the Treasury, applicable to the general purposes of the Government, the sum

of $66,818,292.38.

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

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

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

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

estimated at $70,000,000.

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

the last fiscal year was as follows:

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

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

Our imports during the year were as follows:

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

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

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

following articles of import:

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

economical administration of the Government justifies a reduction in the

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

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

are applied which they have adopted for their benefit and protection; and

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

observed than when the people's taxation for its support is scrupulously

limited to the actual necessity of expenditure and distributed according to

a just and equitable plan.

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