This Department was enabled during the past year to find temporary, though

crowded, accommodations and a safe depository for a portion of its records

in the completed east wing of the building designed for the State, War, and

Navy Departments. The construction of the north wing of the building, a

part of the structure intended for the use of the War Department, is being

carried forward with all possible dispatch, and the work should receive

from Congress such liberal appropriations as will secure its speedy

completion.

The report of the Secretary of the Navy shows continued improvement in that

branch of the service during the last fiscal year. Extensive repairs have

been made upon vessels, and two new ships have been completed and made

ready for sea.

The total expenditures of the year ended June 30, 1879, including specific

appropriations not estimated for by the Department, were $13,555,710.09.

The expenses chargeable to the year, after deducting the amount of these

specific appropriations, were $13,343,317.79; but this is subject to a

reduction of $283,725.99, that amount having been drawn upon warrants, but

not paid out during the year. The amount of appropriations applicable to

the last fiscal year was $14,538,646.17. There was, therefore, a balance of

$1,479,054.37 remaining unexpended and to the credit of the Department on

June 30, 1879. The estimates for the fiscal year ending June 30, 1881, are

$14,864,147.95, which exceeds the appropriations for the present fiscal

year $361,897.28. The reason for this increase is explained in the

Secretary's report. The appropriations available for the present fiscal

year are $14,502,250.67, which will, in the opinion of the Secretary,

answer all the ordinary demands of the service. The amount drawn from the

Treasury from July 1 to November 1, 1879 was $5,770,404.12, of which

$1,095,440.33 has been refunded, leaving as the expenditure for that period

$4,674,963.79. If the expenditures of the remaining two-thirds of the year

do not exceed the proportion for these four months, there will remain

unexpended at the end of the year $477,359.30 of the current

appropriations. The report of the Secretary shows the gratifying fact that

among all the disbursing officers of the Pay Corps of the Navy there is not

one who is a defaulter to the extent of a single dollar. I unite with him

in recommending the removal of the observatory to a more healthful

location. That institution reflects credit upon the nation, and has

obtained the approbation of scientific men in all parts of the world. Its

removal from its present location would not only be conducive to the health

of its officers and professors, but would greatly increase its usefulness.

The appropriation for judicial expenses, which has heretofore been made for

the Department of Justice in gross, was subdivided at the last session of

Congress, and no appropriation whatever was made for the payment of the

fees of marshals and their deputies, either in the service of process or

for the discharge of other duties; and since June 30 these officers have

continued the performance of their duties without compensation from the

Government, taking upon themselves the necessary incidental outlays, as

well as rendering their own services. In only a few unavoidable instances

has the proper execution of the process of the United States failed by

reason of the absence of the requisite appropriation. This course of

official conduct on the part of these officers, highly creditable to their

fidelity, was advised by the Attorney-General, who informed them, however,

that they would necessarily have to rely for their compensation upon the

prospect of future legislation by Congress. I therefore especially

recommend that immediate appropriation be made by Congress for this

purpose.

The act making the principal appropriation for the Department of Justice at

previous sessions has uniformly contained the following clause: And for

defraying the expenses which my 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. No

appropriation was made for this purpose for the current year. As no general

election for Members of Congress occurred, the omission was a matter of

little practical importance. Such election will, however, take place during

the ensuing year, and the appropriation made for the pay of marshals and

deputies should be sufficient to embrace compensation for the services they

may be required to perform at such elections.

The business of the Supreme Court is at present largely in arrears. It can

not be expected that more causes can be decided than are now disposed of in

its annual session, or that by any assiduity the distinguished magistrates

who compose the court can accomplish more than is now done. In the courts

of many of the circuits also the business has increased to such an extent

that the delay of justice will call the attention of Congress to an

appropriate remedy. It is believed that all is done in each circuit which

can fairly be expected from its judicial force. The evils arising from

delay are less heavily felt by the United States than by private suitors,

as its causes are advanced by the courts when it is seen that they involve

the discussion of questions of a public character.

The remedy suggested by the Attorney-General is the appointment of

additional circuit judges and the creation of an intermediate court of

errors and appeals, which shall relieve the Supreme Court of a part of its

jurisdiction, while a larger force is also obtained for the performance of

circuit duties.

I commend this suggestion to the consideration of Congress. It would seem

to afford a complete remedy, and would involve, if ten additional circuit

judges are appointed, an expenditure, at the present rate of salaries, of

not more than $60,000 a year, which would certainly be small in comparison

with the objects to be attained.

The report of the Postmaster-General bears testimony to the general revival

of business throughout the country. The receipts of the Post-Office

Department for the fiscal year ended June 30, 1879, were $30,041,982.86,

being $764,465.91 more than the revenues of the preceding year. The amount

realized from the sale of postage stamps, stamped envelopes, and postal

cards was $764,465.91 more than in the preceding year, and $2,387,559.23

more than in 1877. The expenditures of the Department were $33,449,899.45,

of which the sum of $376,461.63 was paid on liabilities incurred in

preceding years.

The expenditures during the year were $801,209.77 less than in the

preceding year. This reduction is to be attributed mainly to the operation

of the law passed June 17, 1878, changing the compensation of postmasters

from a commission on the value of stamps sold to a commission on stamps

canceled.

The amount drawn from the Treasury on appropriations, in addition to the

revenues of the Department, was $3,031,454.96, being $2,276,197.86 less

than in the preceding year.

The expenditures for the fiscal year ending June 30, 1881, are estimated at

$39,920,900 and the receipts from all sources at $32,210,000, leaving a

deficiency to be appropriated for out of the Treasury of $7,710,900.

The relations of the Department with railroad companies have been

harmonized, notwithstanding the general reduction by Congress of their

compensation by the appropriation for special facilities, and the railway

post-office lines have been greatly extended, especially in the Southern

States. The interests of the Railway Mail Service and of the public would

be greatly promoted and the expenditures could be more readily controlled

by the classification of the employees of the Railway Mail Service as

recommended by the Postmaster-General, the appropriation for salaries, with

respect to which the maximum limit is already fixed by law, to be made in

gross.

The Postmaster-General recommends an amendment of the law regulating the

increase of compensation for increased service and increased speed on star

routes, so as to enable him to advertise for proposals for such increased

service and speed. He also suggests the advantages to accrue to the

commerce of the country from the enactment of a general law authorizing

contracts with American-built steamers, carrying the American flag, for

transporting the mail between ports of the United States and ports of the

West Indies and South America, at a fixed maximum price per mile, the

amount to be expended being regulated by annual appropriations, in like

manner with the amount paid for the domestic star service.

The arrangement made by the Postmaster-General and the Secretary of the

Treasury for the collection of duty upon books received in the mail from

foreign countries has proved so satisfactory in its practical operation

that the recommendation is now made that Congress shall extend the

provisions of the act of March 3, 1879, under which this arrangement was

made, so as to apply to all other dutiable articles received in the mails

from foreign countries.

The reports of the Secretary of the Interior and of the Commissioner of

Indian Affairs, setting forth the present state of our relations with the

Indian tribes on our territory, the measures taken to advance their

civilization and prosperity, and the progress already achieved by them,

will be found of more than ordinary interest. The general conduct of our

Indian population has been so satisfactory that the occurrence of two

disturbances, which resulted in bloodshed and destruction of property, is

all the more to be lamented.

The history of the outbreak on the White River Ute Reservation, in western

Colorado, has become so familiar by elaborate reports in the public press

that its remarkable incidents need not be stated here in detail. It is

expected that the settlement of this difficulty will lead to such

arrangements as will prevent further hostile contact between the Indians

and the border settlements in western Colorado.

The other disturbance occurred at the Mescalero Agency, in New Mexico,

where Victoria, at the head of a small band of marauders, after committing

many atrocities, being vigorously chased by a military force, made his way

across the Mexican border and is now on foreign soil.

While these occurrences, in which a comparatively small number of Indians

were engaged, are most deplorable, a vast majority of our Indian population

have fully justified the expectations of those who believe that by humane

and peaceful influences the Indian can be led to abandon the habits of

savage life and to develop a capacity for useful and civilized occupations.

What they have already accomplished in the pursuit of agricultural and

mechanical work, the remarkable success which has attended the experiment

of employing as freighters a class of Indians hitherto counted among the

wildest and most intractable, and the general and urgent desire expressed

by them for the education of their children may be taken as sufficient

proof that they will be found capable of accomplishing much more if they

continue to be wisely and fairly guided. The "Indian policy" sketched in

the report of the Secretary of the Interior, the object of which is to make

liberal provision for the education of Indian youth, to settle the Indians

upon farm lots in severalty, to give them title in fee to their farms,

inalienable for a certain number of years, and when their wants are thus

provided for to dispose by sale of the lands on their reservations not

occupied and used by them, a fund to be formed out of the proceeds for the

benefit of the Indians, which will gradually relieve the Government of the

expenses now provided for by annual appropriations, must commend itself as

just and beneficial to the Indians, and as also calculated to remove those

obstructions which the existence of large reservations presents to the

settlement and development of the country. I therefore earnestly recommend

the enactment of a law enabling the Government to give Indians a title in

fee, inalienable for twenty-five years, to the farm lands assigned to them

by allotment. I also repeat the recommendation made in my first annual

message, that a law be passed admitting Indians who can give satisfactory

proof of having by their own labor supported their families for a number of

years, and who are willing to detach themselves from their tribal

relations, to the benefit of the homestead act, and to grant them patents

containing the same provision of inalienability for a certain period.

The experiment of sending a number of Indian children of both sexes to the

Hampton Normal and Agricultural Institute, in Virginia, to receive an

elementary English education and practical instruction in farming and other

useful industries, has led to results so promising that it was thought

expedient to turn over the cavalry barracks at Carlisle, in Pennsylvania,

to the Interior Department for the establishment of an Indian school on a

larger scale. This school has now 158 pupils, selected from various tribes,

and is in full operation. Arrangements are also made for the education of a

number of Indian boys and girls belonging to tribes on the Pacific Slope in

a similar manner, at Forest Grove, in Oregon. These institutions will

commend themselves to the liberality of Congress and to the philanthropic

munificence of the American people.

Last spring information was received of the organization of an extensive

movement in the Western States, the object of which was the occupation by

unauthorized persons of certain lands in the Indian Territory ceded by the

Cherokees to the Government for the purpose of settlement by other Indian

tribes.

On the 26th of April I issued a proclamation warning all persons against

participation in such an attempt, and by the cooperation of a military

force the invasion was promptly checked. It is my purpose to protect the

rights of the Indian inhabitants of that Territory to the full extent of

the executive power; but it would be unwise to ignore the fact that a

territory so large and so fertile, with a population so sparse and with so

great a wealth of unused resources, will be found more exposed to the

repetition of such attempts as happened this year when the surrounding

States are more densely settled and the westward movement of our population

looks still more eagerly for fresh lands to occupy. Under such

circumstances the difficulty of maintaining the Indian Territory in its

present state will greatly increase, and the Indian tribes inhabiting it

would do well to prepare for such a contingency. I therefore fully approve

of the advice given to them by the Secretary of the Interior on a recent

occasion, to divide among themselves in severalty as large a quantity of

their lands as they can cultivate; to acquire individual title in fee

instead of their present tribal ownership in common, and to consider in

what manner the balance of their lands may be disposed of by the Government

for their benefit. By adopting such a policy they would more certainly

secure for themselves the value of their possessions, and at the same time

promote their progress in civilization and prosperity, than by endeavoring

to perpetuate the present state of things in the Territory.

The question whether a change in the control of the Indian service should

be made was in the Forty-fifth Congress referred to a joint committee of

both Houses for inquiry and report. In my last annual message I expressed

the hope that the decision of that question, then in prospect, would

"arrest further agitation of this subject, such agitation being apt to

produce a disturbing effect upon the service as well as on the Indians

themselves." Since then, the committee having reported, the question has

been decided in the negative by a vote in the House of Representatives.

For the reasons here stated, and in view of the fact that further

uncertainty on this point will be calculated to obstruct other much-needed

legislation, to weaken the discipline of the service, and to unsettle

salutary measures now in progress for the government and improvement of the

Indians, I respectfully recommend that the decision arrived at by Congress

at its last session be permitted to stand.

The efforts made by the Department of the Interior to arrest the

depredations on the timber lands of the United States have been continued,

and have met with considerable success. A large number of cases of trespass

have been prosecuted in the courts of the United States; others have been

settled, the trespassers offering to make payment to the Government for the

value of the timber taken by them. The proceeds of these prosecutions and

settlements turned into the Treasury far exceed in amount the sums

appropriated by Congress for this purpose. A more important result,

however, consists in the fact that the destruction of our public forests by

depredation, although such cases still occur, has been greatly reduced in

extent, and it is probable that if the present policy is vigorously pursued

and sufficient provision to that end is made by Congress such trespasses,

at least those on a large scale, can be entirely suppressed, except in the

Territories, where timber for the daily requirements of the population can

not, under the present state of the law, be otherwise obtained. I therefore

earnestly invite the attention of Congress to the recommendation made by

the Secretary of the Interior, that a law be enacted enabling the

Government to sell timber from the public lands without conveying the fee,

where such lands are principally valuable for the timber thereon, such

sales to be so regulated as to conform to domestic wants and business

requirements, while at the same time guarding against a sweeping

destruction of the forests. The enactment of such a law appears to become a

more pressing necessity every day.

My recommendations in former messages are renewed in favor of enlarging the

facilities of the Department of Agriculture. Agriculture is the leading

interest and the permanent industry of our people. It is to the abundance

of agricultural production, as compared with our home consumption, and the

largely increased and highly profitable market abroad which we have enjoyed

in recent years, that we are mainly indebted for our present prosperity as

a people. We must look for its continued maintenance to the same

substantial resource. There is no branch of industry in which labor,

directed by scientific knowledge, yields such increased production in

comparison with unskilled labor, and no branch of the public service to

which the encouragement of liberal appropriations can be more appropriately

extended. The omission to render such aid is not a wise economy, but, on

the contrary, undoubtedly results in losses of immense sums annually that

might be saved through well-directed efforts by the Government to promote

this vital interest.

The results already accomplished with the very limited means heretofore

placed at the command of the Department of Agriculture is an earnest of

what may be expected with increased appropriations for the several purposes

indicated in the report of the Commissioner, with a view to placing the

Department upon a footing which will enable it to prosecute more

effectively the objects for which it is established.

Appropriations are needed for a more complete laboratory, for the

establishment of a veterinary division and a division of forestry, and for

an increase of force.

The requirements for these and other purposes, indicated in the report of

the Commissioner under the head of the immediate necessities of the

Department, will not involve any expenditure of money that the country can

not with propriety now undertake in the interests of agriculture.

It is gratifying to learn from the Bureau of Education the extent to which

educational privileges throughout the United States have been advanced

during the year. No more fundamental responsibility rests upon Congress

than that of devising appropriate measures of financial aid to education,

supplemental to local action in the States and Territories and in the

District of Columbia. The wise forethought of the founders of our

Government has not only furnished the basis for the support of the

common-school systems of the newer States, but laid the foundations for the

maintenance of their universities and colleges of agriculture and the

mechanic arts. Measures in accordance with this traditional policy, for the

further benefit of all these interests and the extension of the same

advantages to every portion of the country, it is hoped will receive your

favorable consideration.

To preserve and perpetuate the national literature should be among the

foremost cares of the National Legislature. The library gathered at the

Capitol still remains unprovided with any suitable accommodations for its

rapidly increasing stores. The magnitude and importance of the collection,

increased as it is by the deposits made under the law of copyright, by

domestic and foreign exchanges, and by the scientific library of the

Smithsonian Institution, call for building accommodations which shall be at

once adequate and fireproof. The location of such a public building, which

should provide for the pressing necessities of the present and for the vast

increase of the nation's books in the future, is a matter which addresses

itself to the discretion of Congress. It is earnestly recommended as a

measure which should unite all suffrages and which should no longer be

delayed.

The joint commission created by the act of Congress of August 2, 1876, for

the purpose of supervising and directing the completion of the Washington

National Monument, of which commission the President is a member, has given

careful attention to this subject, and already the strengthening of the

foundation has so far progressed as to insure the entire success of this

part of the work. A massive layer of masonry has been introduced below the

original foundation, widening the base, increasing the stability of the

structure, and rendering it possible to carry the shaft to completion. It

is earnestly recommended that such further appropriations be made for the

continued prosecution of the work as may be necessary for the completion of

this national monument at an early day.

In former messages, impressed with the importance of the subject, I have

taken occasion to commend to Congress the adoption of a generous policy

toward the District of Columbia. The report of the Commissioners of the

District, herewith transmitted, contains suggestions and recommendations,

to all of which I earnestly invite your careful attention. I ask your early

and favorable consideration of the views which they express as to the

urgent need of legislation for the reclamation of the marshes of the

Potomac and its Eastern Branch within the limits of the city, and for the

repair of the streets of the capital, heretofore laid with wooden blocks

and now by decay rendered almost impassable and a source of imminent danger

to the health of its citizens. The means at the disposal of the

Commissioners are wholly inadequate for the accomplishment of these

important works, and should be supplemented by timely appropriations from

the Federal Treasury.

The filling of the flats in front of the city will add to the adjacent

lands and parks now owned by the United States a large and valuable domain,

sufficient, it is thought, to reimburse its entire cost, and will also, as

an incidental result, secure the permanent improvement of the river for the

purposes of navigation.

The Constitution having invested Congress with supreme and exclusive

jurisdiction over the District of Columbia, its citizens must of necessity

look to Congress alone for all needful legislation affecting their

interests; and as the territory of this District is the common property of

the people of the United States, who equally with its resident citizens are

interested in the prosperity of their capital, I can not doubt that you

will be amply sustained by the general voice of the country in any measures

you may adopt for this purpose.

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