the operations and condition of the Post-Office Department. The ordinary
revenues of the Department for the fiscal year ending June 30, 1877,
including receipts from the money-order business and from official stamps
and stamped envelopes, amounted to the sum of $27,531,585.26. The
additional sum of $7,013,000 was realized from appropriations from the
general Treasury for various purposes, making the receipts from all sources
$34,544,885.26. The total expenditures during the fiscal year amounted to
$33,486,322.44, leaving an excess of total receipts over total expenditures
of $1,058,562.82, and an excess of total expenditures over ordinary
receipts of $5,954,737.18. Deducting from the total receipts the sum of
$63,261.84, received from international money orders of the preceding
fiscal year, and deducting from the total expenditures the sum of
$1,163,818.20, paid on liabilities incurred in previous fiscal years, the
expenditures and receipts appertaining to the business of the last fiscal
year were as follows:
Expenditures - $32,322,504.24
Receipts (ordinary, from money-order business and
from official postage stamps) - 27,468,323,420 -
***
State of the Union Address
Rutherford B. Hayes
December 2, 1878
Fellow-Citizens of the Senate and House of Representatives:
Our heartfelt gratitude is due to the Divine Being who holds in His hands
the destinies of nations for the continued bestowal during the last year of
countless blessings upon our country.
We are at peace with all other nations. Our public credit has greatly
improved, and is perhaps now stronger than ever before. Abundant harvests
have rewarded the labors of those who till the soil, our manufacturing
industries are reviving, and it is believed that general prosperity, which
has been so long anxiously looked for, is at last within our reach.
The enjoyment of health by our people generally has, however, been
interrupted during the past season by the prevalence of a fatal pestilence
(the yellow fever) in some portions of the Southern States, creating an
emergency which called for prompt and extraordinary measures of relief. The
disease appeared as an epidemic at New Orleans and at other places on the
Lower Mississippi soon after midsummer. It was rapidly spread by fugitives
from the infected cities and towns, and did not disappear until early in
November. The States of Louisiana, Mississippi, and Tennessee have suffered
severely. About 100,000 cases are believed to have occurred, of which about
20,000, according to intelligent estimates, proved fatal. It is impossible
to estimate with any approach to accuracy the loss to the country
occasioned by this epidemic It is to be reckoned by the hundred millions of
dollars. The suffering and destitution that resulted excited the deepest
sympathy in all parts of the Union. Physicians and nurses hastened from
every quarter to the assistance of the afflicted communities. Voluntary
contributions of money and supplies, in every needed form, were speedily
and generously furnished. The Government was able to respond in some
measure to the call for help, by providing tents, medicines, and food for
the sick and destitute, the requisite directions for the purpose being
given in the confident expectation that this action of the Executive would
receive the sanction of Congress. About 1,800 tents, and rations of the
value of about $25,000, were sent to cities and-towns which applied for
them, full details of which will be furnished to Congress by the proper
Department.
The fearful spread of this pestilence has awakened a very general public
sentiment in favor of national sanitary administration, which shall not
only control quarantine, but have the sanitary supervision of internal
commerce in times of epidemics, and hold an advisory relation to the State
and municipal health authorities, with power to deal with whatever
endangers the public health, and which the municipal and State authorities
are unable to regulate. The national quarantine act approved April 29,
1878, which was passed too late in the last session of Congress to provide
the means for carrying it into practical operation during the past season,
is a step in the direction here indicated. In view of the necessity for the
most effective measures, by quarantine and otherwise, for the protection of
our seaports and the country generally from this and other epidemics, it is
recommended that Congress give to the whole subject early and careful
consideration.
The permanent pacification of the country by the complete protection of all
citizens in every civil and political right continues to be of paramount
interest with the great body of our people. Every step in this direction is
welcomed with public approval, and every interruption of steady and uniform
progress to the desired consummation awakens general uneasiness and
widespread condemnation. The recent Congressional elections have furnished
a direct and trustworthy test of the advance thus far made in the practical
establishment of the right of suffrage secured by the Constitution to the
liberated race in the Southern States. All disturbing influences, real or
imaginary, had been removed from all of these States.
The three constitutional amendments which conferred freedom and equality of
civil and political rights upon the colored people of the South were
adopted by the concurrent action of the great body of good citizens who
maintained the authority of the National Government and the integrity and
perpetuity of the Union at such a cost of treasure and life, as a wise and
necessary embodiment in the organic law of the just results of the war. The
people of the former slaveholding States accepted these results, and gave
in every practicable form assurances that the thirteenth, fourteenth, and
fifteenth amendments, and laws passed in pursuance thereof, should in good
faith be enforced, rigidly and impartially, in letter and spirit, to the
end that the humblest citizen, without distinction of race or color, should
under them receive full and equal protection in person and property and in
political rights and privileges. By these constitutional amendments the
southern section of the Union obtained a large increase of political power
in Congress and in the electoral college, and the country justly expected
that elections would proceed, as to the enfranchised race, upon the same
circumstances of legal and constitutional freedom and protection which
obtained in all the other States of the Union. The friends of law and order
looked forward to the conduct of these elections as offering to the general
judgment of the country an important opportunity to measure the degree in
which the right of suffrage could be exercised by the colored people and
would be respected by their fellow-citizens; but a more general enjoyment
of freedom of suffrage by the colored people and a more just and generous
protection of that freedom by the communities of which they form a part
were generally anticipated than the record of the elections discloses. In
some of those States in which the colored people have been unable to make
their opinions felt in the elections the result is mainly due to influences
not easily measured or remedied by legal protection; but in the States of
Louisiana and South Carolina at large, and in some particular Congressional
districts outside of those States, the records of the elections seem to
compel the conclusion that the rights of the colored voters have been
overridden and their participation in the elections not permitted to be
either general or free.
It will be for the Congress for which these elections were held to make
such examinations into their conduct as may be appropriate to determine the
validity of the claims of members to their seats. In the meanwhile it
becomes the duty of the executive and judicial departments of the
Government, each in its province, to inquire into and punish violations of
the laws of the United States which have occurred. I can but repeat what I
said in this connection in my last message, that whatever authority rests
with me to this end I shall not hesitate to put forth; and I am unwilling
to forego a renewed appeal to the legislatures, the courts, the executive
authorities, and the people of the States where these wrongs have been
perpetrated to give their assistance toward bringing to justice the
offenders and preventing a repetition of the crimes. No means within my
power will be spared to obtain a full and fair investigation of the alleged
crimes and to secure the conviction and just punishment of the guilty.
It is to be observed that the principal appropriation made for the
Department of Justice at the last session contained the following clause:
And for defraying the expenses which may be incurred in the enforcement of
the act approved February 28, 1871, entitled "An act to amend an act
approved May 31, 1870, entitled 'An act to enforce the rights of citizens
of the United States to vote in the several States of this Union, and for
other purposes,'" or any acts amendatory thereof or supplementary thereto.
It is the opinion of the Attorney-General that the expenses of these
proceedings will largely exceed the amount which was thus provided, and I
rely confidently upon Congress to make adequate appropriations to enable
the executive department to enforce the laws.
I respectfully urge upon your attention that the Congressional elections,
in every district, in a very important sense, are justly a matter of
political interest and concern throughout the whole country. Each State,
every political party, is entitled to the share of power which is conferred
by the legal and constitutional suffrage. It is the right of every citizen
possessing the qualifications prescribed by law to east one unintimidated
ballot and to have his ballot honestly counted. So long as the exercise of
this power and the enjoyment of this right are common and equal,
practically as well as formally, submission to the results of the suffrage
will be accorded loyally and cheerfully, and all the departments of
Government will feel the true vigor of the popular will thus expressed. No
temporary or administrative interests of Government, however urgent or
weighty, will ever displace the zeal of our people in defense of the
primary rights of citizenship. They understand that the protection of
liberty requires the maintenance in full vigor of the manly methods of free
speech, free press, and free suffrage, and will sustain the full authority
of Government to enforce the laws which are framed to preserve these
inestimable rights. The material progress and welfare of the States depend
on the protection afforded to their citizens. There can be no peace without
such protection, no prosperity without peace, and the whole country is
deeply interested in the growth and prosperity of all its parts.
While the country has not yet reached complete unity of feeling and
reciprocal confidence between the communities so lately and so seriously
estranged, I feel an absolute assurance that the tendencies are in that
direction, and with increasing force. The power of public opinion will
override all political prejudices and all sectional or State attachments in
demanding that all over our wide territory the name and character of
citizen of the United States shall mean one and the same thing and carry
with them unchallenged security and respect.
Our relations with other countries continue peaceful. Our neutrality in
contests between foreign powers has been maintained and respected.
The Universal Exposition held at Paris during the past summer has been
attended by large numbers of our citizens. The brief period allowed for the
preparation and arrangement of the contributions of our citizens to this
great exposition was well employed in energetic and judicious efforts to
overcome this disadvantage. These efforts, led and directed by the
commissioner-general, were remarkably successful, and the exhibition of the
products of American industry was creditable and gratifying in scope and
character. The reports of the United States commissioners, giving its
results in detail, will be duly laid before you. Our participation in this
international competition for the favor and the trade of the world may be
expected to produce useful and important results--in promoting intercourse,
friendship, and commerce with other nations.
In accordance with the provisions of the act of February 28, 1878, three
commissioners were appointed to an international conference on the subject
of adopting a common ratio between gold and silver, for the purpose of
establishing internationally the use of bimetallic money and securing
fixity of relative value between those metals.
Invitations were addressed to the various governments which had expressed a
willingness to participate in its deliberations. The conference held its
meetings in Paris in August last. The report of the commissioners, herewith
submitted, will show its results. No common ratio between gold and silver
could be agreed upon by the conference. The general conclusion was reached
that it is necessary to maintain in the world the monetary functions of
silver as well as of gold, leaving the selection of the use of one or the
other of these two metals, or of both, to be made by each state.
Congress having appropriated at its last session the sum of $5,500,000 to
pay the award of the joint commission at Halifax, if, after correspondence
with the British Government on the subject of the conformity of the award
to the requirements of the treaty and to the terms of the question thereby
submitted to the commission, the President shall deem it his duty to make
the payment, communications upon these points were addressed to the British
Government through the legation of the United States at London. Failing to
obtain the concurrence of the British Government in the views of this
Government respecting the award, I have deemed it my duty to tender the sum
named within the year fixed by the treaty, accompanied by a notice of the
grounds of the payment and a protest against any other construction of the
same. The correspondence upon this subject will be laid before you.
The Spanish Government has officially announced the termination of the
insurrection in Cuba and the restoration of peace throughout that island.
Confident expectations are expressed of a revival of trade and prosperity,
which it is earnestly hoped may prove well rounded. Numerous claims of
American citizens for relief for injuries or restoration of property have
been among the incidents of the long-continued hostilities. Some of these
claims are in process of adjustment by Spain, and the others are promised
early and careful consideration.
The treaty made with Italy in regard to reciprocal consular privileges has
been duly ratified and proclaimed.
No questions of grave importance have arisen with any other of the European
powers.
The Japanese Government has been desirous of a revision of such parts of
its treaties with foreign powers as relate to commerce, and it is
understood has addressed to each of the treaty powers a request to open
negotiations with that view. The United States Government has been inclined
to regard the matter favorably. Whatever restrictions upon trade with Japan
are found injurious to that people can not but affect injuriously nations
holding commercial intercourse with them. Japan, after a long period of
seclusion, has within the past few years made rapid strides in the path of
enlightenment and progress, and, not unreasonably, is looking forward to
the time when her relations with the nations of Europe and America shall be
assimilated to those which they hold with each other. A treaty looking to
this end has been made, which will be submitted for the consideration of
the Senate.
After an interval of several years the Chinese Government has again sent
envoys to the United States. They have been received, and a permanent
legation is now established here by that Government. It is not doubted that
this step will be of advantage to both nations in promoting friendly
relations and removing causes of difference.
The treaty with the Samoan Islands, having been duly ratified and accepted
on the part of both Governments, is now in operation, and a survey and
soundings of the harbor of Pago-Pago have been made by a naval vessel of
the United States, with a view of its occupation as a naval station if
found desirable to the service.
Since the resumption of diplomatic relations with Mexico correspondence has
been opened and still continues between the two Governments upon the
various questions which at one time seemed to endanger their relations.
While no formal agreement has been reached as to the troubles on the
border, much has been done to repress and diminish them. The effective
force of United States troops on the Rio Grande, by a strict and faithful
compliance with instructions, has done much to remove the sources of
dispute, and it is now understood that a like force of Mexican troops on
the other side of the river is also making an energetic movement against
the marauding Indian tribes. This Government looks with the greatest
satisfaction upon every evidence of strength in the national authority of
Mexico, and upon every effort put forth to prevent or to punish incursions
upon our territory. Reluctant to assume any action or attitude in the
control of these incursions by military movements across the border not
imperatively demanded for the protection of the lives and property of our
own citizens, I shall take the earliest opportunity consistent with the
proper discharge of this plain duty to recognize the ability of the Mexican
Government to restrain effectively violations of our territory. It is
proposed to hold next year an international exhibition in Mexico, and it is
believed that the display of the agricultural and manufacturing products of
the two nations will tend to better understanding and increased commercial
intercourse between their people.
With Brazil and the Republics of Central and South America some steps have
been taken toward the development of closer commercial intercourse.
Diplomatic relations have been resumed with Colombia and with Bolivia. A
boundary question between the Argentine Republic and Paraguay has been
submitted by those Governments for arbitration to the President of the
United States, and I have, after careful examination, given a decision upon
it.
A naval expedition up the Amazon and Madeira rivers has brought back
information valuable both for scientific and commercial purposes. A like
expedition is about visiting the coast of Africa and the Indian Ocean. The
reports of diplomatic and consular officers in relation to the development
of our foreign commerce have furnished many facts that have proved of
public interest and have stimulated to practical exertion the enterprise of
our people.
The report of the Secretary of the Treasury furnishes a detailed statement
of the operations of that Department of the Government and of the condition
of the public finances.
The ordinary revenues from all sources for the fiscal year ended June 30,
1878, were $257,763,878.70; the ordinary expenditures for the same period
were $236,964,326.80, leaving a surplus revenue for the year of
$20,799,551.90. The receipts for the present fiscal year, ending June 30,
1879, actual and estimated, are as follows: Actual receipts for the first
quarter, commencing July 1, 1878, $73,389,743.43; estimated receipts for
the remaining three quarters of the year, $191,110,256.57; total receipts
for the current fiscal year, actual and estimated, $264,500,000. The
expenditures for the same period will be, actual and estimated, as follows:
For the quarter commencing July 1, 1878, actual expenditures,
$73,344,573.27; and for the remaining three quarters of the year the
expenditures are estimated at $166,755,426.73, making the total
expenditures $240,100,000, and leaving an estimated surplus revenue for the
year ending June 30, 1879, of $24,400,000. The total receipts during the
next fiscal year, ending June 30, 1880, estimated according to existing
laws, will be $264,500,000, and the estimated ordinary expenditures for the
same period will be $236,320,412.68, leaving a surplus of $28,179,587.32
for that year.
In the foregoing statements of expenditures, actual and estimated, no
amount is allowed for the sinking fund provided for by the act approved
February 25, 1862, which requires that 1 per cent of the entire debt of the
United States shall be purchased or paid within each fiscal year, to be set
apart as a sinking fund. There has been, however, a substantial compliance
with the conditions of the law. By its terms the public debt should have
been reduced between 1862 and the close of the last fiscal year
$518,361,806.28; the actual reduction of the ascertained debt in that
period has been $720,644,739.61, being in excess of the reduction required
by the sinking fund act $202,282,933.33.
The amount of the public debt, less cash in the Treasury, November 1, 1878,
was $2,024,200,083.18 a reduction since the same date last year of
$23,150,617.39.
The progress made during the last year in refunding the public debt at
lower rates of interest is very gratifying. The amount of 4 per cent bonds
sold during the present year prior to November 23, 1878, is $100,270,900,
and 6 per cent bonds, commonly known as five-twenties, to an equal amount,
have been or will be redeemed as calls mature.
It has been the policy of the Department to place the 4 per cent bonds
within easy reach of every citizen who desires to invest his savings,
whether small or great, in these securities. The Secretary of the Treasury
recommends that the law be so modified that small sums may be invested, and
that through the post-offices or other agents of the Government the freest
opportunity may be given in all parts of the country for such investments.
The best mode suggested is that the Department be authorized to issue
certificates of deposit, of the denomination of $10, bearing interest at
the rate of 3.65 per cent per annum and convertible at any time within one
year after their issue into the 4 per cent bonds authorized by the
refunding act, and to be issued only in exchange for United States notes
sent to the Treasury by mail or otherwise. Such a provision of law,
supported by suitable regulations, would enable any person readily, without
cost or risk, to convert his money into an interest-bearing security of the
United States, and the money so received could be applied to the redemption
of 6 per cent bonds.
The coinage of gold during the last fiscal year was $52,798,980. The
coinage of silver dollars under the act passed February 28, 1878, amounted
on the 23d of November, 1878, to $19,814,550, of which amount $4,984,947
are in circulation, and the balance, $14,829,603, is still in the
possession of the Government.
With views unchanged with regard to the act under which the coinage of
silver proceeds, it has been the purpose of the Secretary faithfully to
execute the law and to afford a fair trial to the measure.
In the present financial condition of the country I am persuaded that the
welfare of legitimate business and industry of every description will be
best promoted by abstaining from all attempts to make radical changes in
the existing financial legislation. Let it be understood that during the
coming year the business of the country will be undisturbed by governmental
interference with the laws affecting it, and we may confidently expect that
the resumption of specie payments, which will take place at the appointed
time, will be successfully and easily maintained, and that it will be
followed by a healthful and enduring revival of business prosperity.
Let the healing influence of time, the inherent energies of our people, and
the boundless resources of our country have a fair opportunity, and relief
from present difficulties will surely follow.