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ThTMessage. President Cleveland Discusses the Nation's Affairs. cm free r.nii and iron. I VII lliih vwna n>? ....... Favors Repeal of the Differential Duty on Befmed Sugar, Suggests a Divorce of the Government and the Banks ?Exemption of Certain State Banks From Taxation on Circulation Recommended ? Pension Matters ?Our Foreign Relations and the Condition of Oar Governmental Departments. C ' ' .. ' ' ; -' 1 To tbe Congress of the United States: The assemblage within the Nation's legislative halls of those charged with the duty of making law* for the benefit of a generous and fre? people Impressively suggests the exalting oblitrntion and inexorable responsibility involved in their task. At the thrps hold of so oh labor now to be undertaken by the Congress of the United States, and In the discharge of an executive doty enjoined by the Constitution, I submitthls communication. containing a brief statement of the condition of our National affairs, and recommending such legislation as seems to me necessary and expedient. The history of our recent dealings with other Nations, and our peaceful relations with them at this time, additionally demonstrate the advantage of consistently adhering to * firm but just foreign polioy, free from envious or ambitious National schemes and characterized by entire honesty and sincerity. TBEATT WITH CHINA. On the 17th of March last, a new treaty with China In further regulation of emigration was signed at Washington,and on August IS, it received the sanction of the Senate. Batiflcatlon on the part of China and formal exohangeare awaited to give effect to this mutually beneficial convention. . A gratifying recognition of the uniform impartially of this oountry towards all foreign States was manifested by the colnoldent request of the Chinese and Japanese Governments, that the agents of the United States should, within proper limits, afford Jnotectlon to the subjects of the other dur- , ngthe suspension of diplomatic relations due to a state of war. Thi-t delicate office accepted, and a misapprehension, whloh , gavr) rise to the belief "that in affording this kindly unofficial protection oar ; ? cents would v exercise the same authority which the withdrawn agents of the 1 belligerents had exercised, was promptly corrected. Although the war between China 1 anil Japan endangers no -policy of the 1 United Stales, it deserves our greatest con- I ^deration, by reason of its disturbance of 1 our growing commercial Interests in the two 1 countries and the increased dangers whloh ' may result to our citizens domiciled or so- 1 journing In the interior of China. Acting under a stipulation in' our treaty with Korea (the first concluded with a West- 1 frn power) I felt constrained at the begin- 1 nhic of the controversy to tender our good ; offloee to induce an amicable arrangement ' of the initial difficulty growing out of the 1 Japanese demands for administrative re- < forms in Korea; bnt tne unhappy precipita- 1 tloa of actual hostilities delsatea this kindly ' purpose. l)eptoring the destructive war -between 1 the most powerful of the Eastern Nations 1 and anxious that our commercial interests J ' ta these countries may be preserved, and ' that the safety of our citizens there shall not ' be jeopardized. I would not hesitate to heed : any intimation that our friendly aid tor the honorable termination of hostilities would be acceptable to both belligerents. hawaii vxd japan. Since communicating the voluminous correspondence In regard to Hawaii and the , ciion taken by the Senate and Hoose of Bepresontatrves on certain questions submitted to the judgment ani wider discre- ; tion of Congress, the organization of a government in place of the provisional arrangement which followed the deposition of the Queen has been announced with evidence of its effective operation. The recognition usual in such cases has been accorded the new Government. i turret's treatment or missionaries. In my last annual message I adverted to ; the olalm on the part of Turkey of the right ' to expel, as persons undesirable and danserous, Armenians naturalized in the United States and returning to Turkteh jurisdiction. ; Numerous questions In this relation have ' arisen. While this Government acquiesces in the asserted right of expulsion, It will not consent that Armenians may be Imprisoned 1 or otherwise punished for no other reason than having acquired without Imperial con- [ ant American citizenship. Three of the assailants of Miss Helton, an American teacher in Mosul, have been con rlcted by tne Ottoman conns, ana 1 am advised that an appeal against the acaalttal of the remaining five has been taken by the > Turkish prosecuting officer. CONDITIO* or TEX T&EABVRY. The Secretary of the Treasury reports that the receipts ot the Government from all sources jf revenue daring the flsoal rear en ling Jane 30, 1894. amounted to $872,803,498 29, and its expenditures to $442,605,753.87. leaving a deficit ot $69,803,360.68. There was a decrease of $15,952,674.66 In the ordidary expenses of the Government, as compared with the fiscal year 1893. Tnere was collected from the customs $131,818,630.62, and from Interna! revenue $147,165,449.70. The balance of the Income for the year, amounting to $93,815,517.97. was derived from the sales of lands ana other sources. The value of our total dutiable imDorts mounted to 8275.199,086, being $148,657,625 lefts than daring the preceding year, and the importations free of duty amounted to $379,795,536. being 864,748.675 less than during the preceding year. The receipts from customs were $73,536,486.11 less, and from internal revenue 813,836,539.97 leas than in 1893. Tup to-al tax collected from distilled spirits was $85,259,250.25; on manufactured tobacco #28,617,898.62 .and on fermented liqaors,$31 ,414.783.04. Oar sports of merchandise, domestic and foreign, amounted during the year to $892,140,572, being an increase over the preceding year of 844,495,378. The total amount ot gold exported during the fiscal year was $76,898,061, against $108,680,444 during the fiscal year 1893. The amount imported was $72,449,118, as against $21 .174,381 during the previous year. | Tne imports of silver were $13,286,552, end the exports were $50,451,265. It is hardly necessary to recall the faet that in obedience'to the commands of the Constitution and laws, and for the purpose ?f protecting the property of the United States, aiding the process of Federal courts and removing lawless obstructions to the performance by the Government of its legitimate functions, it bec.nme necessary In various localities during the year to employ a considerable portion of tne regular troops. The duty was discharged vrnmntlv*. eourazeouslv and with marked Siscretlon by the officers and men, and the most gratifying proof was thus afforded that the army deserves that complete confidence In its efficiency and discipline whioh the country hus at all times manifested. The year has been free from disturbances by Indians, and the chances of further depredations on their part are constantly becoming more remote and improbable. The condition of the Apache Indians, held as prisoners by the Government for eight years at a cost of halt a million dollars, has been changed during the yearirom captivity to one which gives them an opportunity to demonstrate their capacity for selfsupport and at least partial civilization. Legislation enacted at the late session of Congress gave the War Depirtment authority to transfer the survivors, numbering 346, from Mount Vernon rracks, in Alabama, to any suitable reservation. The department- selected as their luture home the military lands near Fort Bill, Indian Territory, where, under military surveillance, the former prisoners hav? hAon established In asnrtoulture under conditions favorable to their advancement. In recognition of the long and distinguished military servloes and faithful discharge of delicate and responsible civil duties by Major-General John M. Schofleld, now the General commanding the Army, it is suggested to Congress thnt the temporary revival of the grade of Lleatonant-General in his behalf would be a just and gracious act, and would permit his retirement, now near at band, with rank befitting his merits. DEFICIESCT m THE POSTAL SEBVIOE. The transactions ofthe postal service Indicate with, barometlc certainty the fluctuations in the business of the country. Inasmuoh, therefore, as business complications continued to exist throughout the last year to an unforeseen extent It Is not surprising that the deficiency of revenue to meet the expenditures of the Postofflce Department, which was estimated in a-ivanco at about eight million dollars, should be exceeded by nearly one and a quarter million dollars. The ascertained revenues of the last year, Txrovck tha hncfanf /ml tan lfiMrm for the current year, being less than estimated, the deflolency for the current year will be correspondingly greater, though the Postmaster-General states that the latest Indications are so favorablo that be confidentially predicts an Increase of at least eight per cent, in the revenues of the current year over those qf the last year. The expenditures increase steadily and necessarily with the growth and needs of the country, so that the deficiency Is greater or less in any year depending upon the volume of receipts. The Postmaster-General says that this deflolency is unnecessary and might be obviated at onoe If the la^r regulating rates upon mail matter of the second-class was modified. The rate received for the transmission of this Hecond-olass matter is one cent per pound, while the cost of suoh transmission to the Government is eight times that amount. In the general terms of the law this rate covers newspapers and periodicals. The extensions of the meaning of these terms from time to rime have admitted to the privileges Intended for legitimate newsDapers and periodicals asur? ?* ? ?? ? ?? ? * ??VlJ*?4lA?a nn/1 I prising rauKf ui (luuuuauviu uuu vinuvu abases the cost of which amount in the aggregate to the total defloienoy of the Postoffice Department. Pretended newspapers are started by business houses for the mere purpose of advertising goods, complying with the law in form onl> and discountlng the publications as soon as the period of advertising Is over. "Sample copies" of pretended newspapers are Issued in great numbers for a like purpose only. The result Is a great loss ol revenue to the Government, besides Its humiliating use as an agenoy to aid In carrying out the scheme of a business house to aavertlse Its goocti by means of a trlok upon both Its rival bouses and the regular and legitimate newspapers. Paper-covered literature, consisting mainly of trashy novels,- to the extent of many thousand tons is sent through the malls at one cent per pound, while the publishers of standard works are required to pay eight times that amount in sending thelrpublioatlons. Another abase consists in the free carriage through the malls of hundreds of tons of seed and grain uselessly distributed through the Department of Agriculture. The Postmaster-General predicts that If the law be so amended as to eradloate these abuses not only will the Postofflce Department show no defloienoy, but he believes that In the near future all legitimate newspapers and periodical magazines might be nt-nnarlv frnnamlffnrl thrnnffh the mails tO their subscribers free of cost. I Invito your prompt consideration of this subject, and fully indorse the views of the PostmasterGeneral. OUB NAVY. Attention is called to the report of the Secretary of the Navy, which shows very gratifying progress in the construction of ships tor our new navy. All the vessels now building, Including ther three torpedo boats authorized at the last session of Congress and ^accepting the first-class ship Iowa, will probably be completed during tne coming fiscal year. The Secretary presents with much earnestness a plea for t&e authorization of three Additional battle ships and ten or twelve torpedo boats. While the unarmored vessels heretofore authorized, Including those now Qearing completion, will constitute a fleet, which it is believed is sufficient for ordinary cruising purposes In time of peace, we have now completed and in process of nnnnfmnHnn hnt fnnr ftrat.plnsfl hattlfl shins and bat few torpedo boats. If we are to have a navy for warlike operations, offensive and defensive, we certainly ought to Increase both the number of battle ships and torpedo boats. The manufacture of armor requires expensive plant and the aggregation of many Bkllled workmen- All the armor necesaary to complete the vessels now building will be delivered before the first of June next. If no new contracts are given out, contractors must disband their workmen and their plants must lie idle. Battle ships authorized at this time would not be well under Vay until late In the coming fiscal year, and at least three rears and a half from the date of the contract would be required for their completion. The Secretary states that not more than fifteen per cent, of the cost of suoh snips need be inoluded in the appropriations for the coming year. I recommend that provision be made for the construction of additional battle ships and torpedo boats. The war now in progress between China nni? Ttnnn hna runilflrfln If nflf.pqsarv or 0X pedtenf to despatch eight vessels to those waters. PUBLIC LANDS. The public land disposed of daring the year amounted to 10,407,100.77 acres, lnoln ding 28.876.05 of Indian lands. I fully indpree the recommendation of the Secretarr that adequate protection be provided for our forest reserves and that a comprehensive forestry system ba Inaugurated. Such keepers and superintendents as are necessary to protect the forest already reserved should be provided. I am of the opinion that there should be an abandonment of the policy sanctioned bv present laws under which the Government,for a very small consideration, is rapidly losing title to immense tracts of land covered with timber whloh should be properly reserved as permanent sources of Umber supply. I concur In the opinion that tne Commissioner of the General Land Office should be relieved from the duty of deciding litigated lnnri that a nonDftrtlsan court should be created to pass on such oases, and that the decisions of this court should be final, at least so far as the decisions of the department are now final. The proposed court might be given authority to certify questions of law, In matters of especial Importance, to the Supreme Court of the United States or the Court of Apppeals for the District of Columbia for decision. The oreation of such a tribunal would expedite the disposal of cases and insure decisions of a more satisfactory character. The registers and receivers who originally hear aad deolde these disputes should not be Invested with authority to compel witness to attend and testify before them. THE IXDIAXS. Though the condition of the Indians shows a steady and healthy progress, their situation Is not satisfactory at all points. Some of them to whom allotments of land have been made are found to be unable or disinclined to follow agricultural pursuits or to otherwise benefloially manage their land. The Intelligent Indian sohool management of the past year has been followed by gratifying results. Efforts nave been made to advance the work in a sound and praotloal manner. Five Institutes of Indian teaohers have been held during the year, and have proved very benefloial through the views exchanged and methods discussed particularly applicable to Indian education. -Efforts are being made in the direction of I a gradual reduction of the number of Indian contract schools, so that in a comparatively short time they may give way altogether to Government sohools, and it is hoped that the change may be so gradual as to be perfected without too great expense to the Government or undue disregard of investments made bv those who have estab lisherl and are maintaining suoh contract schools. The appropriation for the ourrent year, ending June 80,1895, applicable to the ordinary expenses of the Indian service, amounts to $6,733,003.18, being less by 8663,240.64 than tne sum appropriated on the same account for the previous year. PENSION JIATTEES. At the close of the last fiscal year, on the 30th day of June, 1894, there were 969,544 persons on our pension rolls, being a net Increase of 3532 over the number reported at the end of the previous year. These pensioners may be classified as follows : Soldiers and sailors, survivors of all wars, 753,968; widows and relatives of deceased soldiers. 215.162: armv nursss in the War of the Rebellion, 414. Of these pensioners 82,039 are surviving soldiers of Indian and other wars prior to the Civil War, and the widows and relatives of suoh soldiers. The remainder, numbering 937,505, are receiving pensions on account of the War of the Rebellion, and of these 469,344 are on the rolls under the authority of the net of June 27,1890, sometimes called the dependent pension law. The total amount expended for pensions during the year was $199,804,461.05, leaving an unexpected balance from the sum approprlated of $25,205,712.65. The sum necessary to meet pension expenditures for the year ending June 30, 1890, Is estimated at $140,000,000. The Commissioner of Pensions is of the opinion that the year 1895, being the thirtieth after the close of the War df the Rebellion, must, according to all sensible human calculation, see the highest limit of the pension roll, and that after that year it must begin to decline. The claims pending In the bureau have decreased more than 90,000 during the year. A large proportion of the new claims filed are for Increase of pension by those now on the rolls. The number of certificates issued was 80, 919. The names dropped from the rolls ror ; all causes during the year numbered 87,951. Among our pensioners are nine widows and three daughters of soldiers of the Revolution and forty-Qve survivors of the War of 1812. The barefaced and extensive pension frauds exposed under the direction of the courageous and generoos veteran soldier now at the head of the bureau leave no room for the claim that no purgation of our pension rolls was needed, or that continued vlgllanoe and prompt aotlon are not necessary to t^e same end. Tne aocusatlon that an effort to detect pension frauds 1s evldenoe of unfriendliness towards our worthy vsferans and a denial of their claims to the generosity of the Government, suggests an unfortunate lndlfferenoe to the commission of any offense which has for its motive the securing of a pension, and Indicates a willingness to be blind to the existence of mean and treacherous crimes which play upon demagogic fears and make sport of the patrlotlo impulse of a grateful people. Aonxoux/nnux attaibs. Thft flsaretarv of A?rlouIture in his report reviews the operation* ot his department for the last fiscal year, and makes recommendations lor the farther extension ot its usefulness. He reports a saving In expenditures during the year of $600,000. which is oovered baok into the Treasury. This sum lstwentythree per cent, of the entire appropriation. A special study has been made of the demand for American farm products in all foreign markets, especially Great Britain. That country received from the United States during the nine months ending September 30, 1894, 305,910 live beef oattle, valued at $26,500,000, as against 182,611 oattle, valued at $16,634,000. during the same period for 1893. During the llrst six months of 1894 the United Kingdom took, also, 112,000,000 pounds of dressed beef from the United States, valued at nearly $10,000,000. The report shows that during the nine months Immediately preceding September 80, 1894, the United States exported to Great Britain 222,676,000 pounds of pork; of Apples, 1,900,000 bushels, valued at $2,500,000; and of horses, 2811. at an average value of $139 per head. There was a falling off in American wheat exports ot 13,505,000 bushels, and the Secretary is Inclined to believe that wheat may not, in the future, be the staple export cereal product of oar country, bat that corn will continue to advance In importance as an export on acoount of the new uses to which it is constantly being appropriated. The exports of agricultural products from the United States for the fiscal year ending Jane 80,1894, amounted to $628,363,033, being 72.28 per oent. ot American exports of every description, and the United Kingdom of Great Britain took more than fifty-four per cent, of all farm products finding foreign markets. The Department of Agrioulture has undertaken during the year two ndw and important lines of research. The first relates to grasses and forage plants, with the' purpose of instructing and famllarizlng the people as to the distinctive grasses of the united States, and teaohlng them how to introduce valuable foreign forage plants which may be adapted to this country. The second relates to agricultural soil and crop production, Involving the analyses of samples of soils from all sections of the American Union, to demonstrate their adaptability to particular plants and crops. Mechanloal analyses of soils may be ot such inestimable utility that it Is (nmmnrt ?Vio naTsr llnnn nf ?c?Hf?nlHiral rft search, and the Secretary therefore recommends that a division having it In charge be permanently established In the department. The recommendation contained In the report of the Seoretary for 1893, that the vicious system of free distribution of its department documents bo abandoned Is acraln urged. These publications may well be furnished without cost to public libraries, educational Institutions and the officers and libraries of States and of the Federal Government. Bat from all individuals applying for them a prloe covering the cost of the document asked for should be required. Thus the publications and documents would be secured by those who really desire them for proper purposes. Half a million of copies of the report of the Secretary of Agriculture are printed for distribution at an annual cost of about $300,000. Large numbers of them are cumbering store rooms at the Capitol and the shelves of second-hand book stores throughout the oountry. All this labor and waste might be avoided if the recommendations of tlm HftorotnT-r trnrn adontad. The Secretary also again recommends that the gratuitous distribution ot seeds oease and that no money be apDropriated for that | purpose, except to experiment stations. He reiterates t&e reasons given In his report for 1893 for discontinuing this unjustifiable gratuity. and I fully concur in the oonoluslons which he has reached. It is deemed possible that an agricultural census may be taken eaoh year through the agents of the statistical division of the deoartment. Suoh a course is commended for trial by the chief of that division. Its scope would be t (1) The area under each of the more Important orops. (2) The aggregate products of each of snob crops. (8) The quantity of wheat and corn in the hands of farmers at a date after the spring sowings and plantings and before the beginning of hunrpBt ? and alno the auantitv of ootton and tobaoco remaining In the hands ol planters, either at the same date or at some other designated time. The cost of the work is estimated at 9590, 000. CIVIL SEBTICE BEFOBM. The advantages to the publlo service of an adherence to the prlnotples of civil servloe reform are constantly more apparent, and nothing is so encoaeaglng to those in offlolal life who honestly desire good government as the increasing appreciation by oar people of these advantages. A vast majority of the voters of the land are ready to insist that the time and attention of those they select to perform for them important pnblio duties, should not be distracted by doling out minor offices, and they are growing to be unanimous in regarding party organization us something that should be used in,establishing party principles instead of dictating the distribution of public places as rewards of partisan activity. Numeroas additional offloes and places have lately been brought within Civil Service rules and regulations, and some others will probably soon be lnoluded. The report of the Commissioners will b9 submitted to the Congress, and I Invite careful attention to the recommendations it uuutajuia. MATIONAI. BOABD OF HEALTH. I am entirely convinced that we ought not to be longer without a National Board of Health, or National Health Officer, charged with no other duties than such as pertain to the protection of our country from the invasion of pestilence and disease. This would involve the establishment, by such board or officer, of proper quarantine precautions, or the necessary aid and counsel to local authorities on the subject, prompt advice and assistance to local boards of health or health officers in the suppression of contagious disease, and in cases where there are no suchlocal boards or officers, the Immediate direction by the National Board or offioer of measures of suppression, constant and authentic information concerning the health of foreign countries and all parts of our own country as related to contagious diseases, and consideration of regulations to be enforoed in foreign ports to prevent the introduction of contagion lato our cities, and the measures which should be adoptea to secure their enforcement. There seems to be-at this time a decided ' Inclination to discuss measuros of protection against contagions disease In International , conference, with a view of adopting means of mutual assistance. The creation of snob a National health establishment would greatly aid our Standing In saolr conferences and improve dor opportunities to avail oarselves of their benefits. I earnestly rqpommejid the loaagaaatlon of a National Board of Health, or similar National instrumentality, believing the same to be a needed preoautlon against contagious disease and In the interest of the safety and health of oar people. EATLROADB AXP THEIB EMPLOYES. By virtue of a statue of the United States, passed in 1888,1 appointed In July last Hon. John D. Keman, of the State of New York, and Hon. Nicholas E. Worthlngfon, of the State of Illinois, to form with with Hon. Carroll D. Wright, Commissioner of Labor, who was designated by said statute, a commission for the purpose of making careful Inquiry Into the causes of the controversies oetween certain railroads and their employes, which had resulted In an extensive and destruotlva I strike, accompanied by mnch violence and dangerous disturbance, with considerable I loss of life and great destruction of property. [ The report of the commissioners has been submitted to me and will be transmitted to the Congress with the evidence ialsen upon their investigation. Their work has been well done and their standing andlntelllgenoe give assurance that the report and suggestions they make are worthy of careful consideration. FAYOBS FEEE GOAL AITO IBOJf. The tariff act passed at the last session ot the Congress needs Important amendments If It Is to be executed effectively and with certainty. In addition to such, necessary amendments as will not change rates of duty, I am still vary deoldedly in favor of putting coal oftd Iron upon the free list. So fa* as the sugar sohedule Is concerned, I would be glad, under exiting aggravations to see ev^ry partible of differential dnty in favor of refined sugar stricken out of our tariff law. If with all the favor now accorded the sugar-refining Interests In our tariff laws It still languishes to the extent of closed refineries and thousands of discharged workmen, It would seam to present a hopeless case for reasonable legislative aid. Whatever else is done or omitted, I earnestly repeat here the recommendation I have made In another portion of this com* munioatlf") tbat the'additional duty of one* tenth of , caat per nonnd laid upon sugar imported from countries paying a bounty on its export, be abrogate! It seems to me that exceedingly important considerations point to the propriety of this amendment. With the advent of a new tariff policy not only calculated to relieve the consumers of our land in the cost of their dally life, but to invite a better development of American thrift and. create for us closer and more profitable commercial relations with the rest of the world, it follows as a logical and imperative necessity that we should at once remove the chief If not the only qbstacle which has so long prevented our participation in the foreign carrying trade of the sea?a tariff built upon the theory that it is well to oheok imports and that a home market should bound the industry and effort of Amerloan registry to vessels built abroad though owned and navigated by our people, thus exhibiting a willingness to abandon all contest for the advantages of, fnnannoanlA r?nrrln?7A: Oar I ALUOllUau new tariff policy, buiif npon the theory that It is veil to encourage such importations as our people need, and that our products and manufactures should find markets in every part of the habitable globe, Is consistently supplemented by the greatest possible liberty to our citizens in the ownership and navigation of ships In w&loh our products and manufactures may be transported. The millions now paid to foreigners for carrying American passengers and products across the sea should be turned into American hands. Shipbuilding, which has been proteoted to strangulation, should be revived by the prospect of profitable employment for shtp3 when built, anl the American sailor should be resurrected and again tafce ht3 place?a sturdy and industrious citizen in time of peace and a patriotic and safe defender of American Interests in the day of conflict. The ancient provision of our law denying American registry to ships built abroad ana owned by Americans, appears in the light ot present conditions not only to be a failure for good at evety point, but to be nearer a relic of barbarism than anytmng tnar exists under the permission of a statute of the United States. I earnestly recommend Its prompt repeal. THE BOSD ISSUE. During the last month the gold reserved in the Treasury for the purpose of redeeming the notes of the Government circulating as monevin the hands of the people became so reduced, and its further depletion in the near future seemed so certain, that in the exercise of proper care for the puplio welfare, it became necessary to replenish this reserve and thus maintain popular faith in the ability and determination of the Government to meet, as agreed, its pecuniary obligations. It would have been weir; if in this emergency. authority had existed to issue the bonds of the Government bearing a low rate of interest and maturing within a short period; but the Congress having failed to confer such authority, resort was necessarily had to the resumption act of 1875. and pursuant to its provisions, bonds were issued drawing Interest at the rate of live per cent, uer annum and maturing ten Tear* alter I their .issue, that being the shortest time authorized by the aot. I am glad to say, however, that on the sale of these bonds, the premiums received, operated to reduce the rate of Interest to be paid by the Government to less than three per oent. I oannot fbr a moment believe that any oi our citizens are deliberately willing that their Government Bbou Id default in its pecuniary obligations or that its financial operations should be reduoed to a silver busts. At any rate I should not feel that my duty was done it I omitted any effort I could make to avert Buoh a calamity. As long therefore as no provision is made for the final redemption or the putting aside of the currenoy obligation now used to repeatedly and constantly draw from the Government Its gold, and as long as no better authority for bond issues is allowed than at present exists, suoh authority will be utilized whenever and as often is It becomes necessary to maintain a sufficient gold reserve. and la abundant time to save the credit of oar country and make good the financial declarations of our Goverameat. DIVOBaE OOVEBNMENT AND BANKS. The absolute divorcement of the Goverameat from the buslaess of bauklug Is the Ideal relationship of the Goverameat to the circulation of the currenoy of the oouatry. This coadlUoa cannot be immediately reached; but as a step ia that dtrectlou and as a means of securlug a more elastic curreaoy and obviating other objeotloas to the preseat arrangement of bank circulation, tfte Secretary of the Treasury presents la his report a scheme modlfylug present banking laws and providing for the Issue ot cir* oulatlng notes by 8tate hanks, froe from taxation under certain limitations. EXEMPTING STATE BANKS. Another very important feature of this plan is the exemption, of State banks from taxation by the United States in cases wh9re it Is shown to the satisfaction of the Secretary of the Treasury and Comptroller of the Currency by banks claiming auoh exemption that they have not had outstanding their circulating notes exceeding sevtfnty-flve per cent, of their paid-up and unimpaired capital; that theirstookholdirs are individually liable for the redemptioa of their circulatiag notes to the full extent of their ownership of stock; that the liability of such banks upon their circulating uotes coastltutes uader their State law a first Ilea upoa their assets; that such bauk3 have kept and maintained a guarantee fund in United States legal tender notes, including Treasury notes of 1890, equal to thirty per cent, of their oustaudiug circu idling noieu, anu him suuu ununs u.ivo promptly redeemed their circulating notes when presented at their principal or branch offices. I conclude this communication fully appreciating that the responsibility for all legislation affecting the people of the United States rests upon their representatives in the Congress, ana assuring them that, whether in accordance with recommendations I have made or not, I shall co-operate in perfecting any legislation that tends to the prosperity and welfare of our country. Gbover Cleveland, Executive Mansion, December 3, 1894. Army officers are to be retained as , Indian agents. HO CABINET 1111 BEPOBTS OF SECBETABIES SMITH AND MOETON. Review of the Operations of the Interior Department?The Pension Statistics?The Work of the Department of Agri culture?Suggestions by the Secretary. Secretary Hoke Smith has transmitted to the President hl9 annual report on the operations of the Interior Department. The Secretary reviews the problem of effective work for the advancement of the Indiana. He discusses tho subject of education and of allotments of lands In severalty, and ursres that the eduoatlon of the Indians should be for the purpose of fitting them to perform the particular resDOnslblllties most likely to fall to their after lot. He presents the possibilities of the reservation as land to be improved and developed, to whioh the Indians should be taught to apply those modes of agriculture recognized In civilized life. Their education should fit them for this work, and they should be led on with the assurance that the Gov? eramcnt, in dealing wltti this land, will treat the Indians wUh perfect honesty and make no further effort to trade them oul of It for the benefit of those who wish to settle upon it. In urging a lib* eral appropriation for field matrons for, the Indian Service the Secretary has "no doubt that $50,000 spent in this way would accomplish more than any $50,000 spent In any school that we support." The Secretary calls attention to the duty which rests upon the United 8tates to preserve law and order throughout the Indian Territory, where at prea-j ent a sfate of lawlessness prevails.' The Secretary condemns In strong terms tha establishment of saloons unon the line o( Indian reservations. The report shows that} the pnbllo lands disposed of during the put flsoal year aggregate 10,477,224.72 acres and approximate* the vacant lands remaining at 606,040,313.71 acre*. exolmlve of Alaska: which contains 360.000,000 acres ana military and other reservations. !Fwenty-nIne million acres in round nam-) bers are embraced In the lists of select Ions; by railroad and wagon road' companies awaiting examination and settlement at the. olose of the fiscal year. The aggregate selection of swamp landp since the passage of the act of 1840 is 80.556.168.51 acres". ' Dur-, tng the past year 188,159.47 aored were pat-J ented under this head. The great Import^ ance of the special service division of the General Land Office is urged.; Coneress is asked to make suffloient approSriations to employ at least one Superintend ent on each reserve, and upon the larger^ reserves to provide a sufficient force of as?j liatants to prevent public property from be-* Ing wantonly destroyed. Under the head, of pensions the report shows that the entire number of pensioners upon the rolls on. Jane 30, 1894, was 969,544. The total amount expended for pension* during the fiscal year was $199,804,461.05, leaving aj balance from the appropriation in the Treasury of $25,205,712.65. The estimate for the; fiscal year 1896 is $140,000,000. The number of pensioners added to the roll during the year was 89,085, while the total number dropped was 37,951. The greater part of the oases now pending in the bureau are old cases. Many of them have been pending for years, and had been examined one or more times prior to this Administration., Upon examination it had been found In many instances that proof was not sufficient to sustain a pension. The attention of the applicants having been called to the defect in some cases, efforts had been made to supply the needed testimony. The great discrepancy between the number of cases now being allowed and the number allowed two or more years ago grows out of the fact that the pending cases constitute a remnant of an Immense number of claims, of whioh those well established have been adjudicated. The number of appeals, motions, etc., filed from April 15, 1893, to November 1,1894, was 5817. The number of motions, appeals, eto.. that-have been acted ???? V? 1.U/V A. DanfliAna Aaelafanfl upuu UJ VUD uvatu Vt * "UOIWUO (IUU Secretly from April 15,1893, to November 1,1894,was 10,714. This volume of work, accomplished In eighteen and a half months, Is unprecedented In the history of the department, and the Secretary says Is more than twice the number of coses disposed oi in a like period by tbe prior Administration. There were 22,546 patents granted, including reissues and designs,! and 1856 trade markB registered! during the past year. The number of) patents whion expired was 13,167. The totar expenditure** of the Patent Office amounted to 81,053,962. The reoeipts exceeded the' expenditures $129,560. The total disbursements to date for the Eleventh Cen-' 8U9 amount to 810,865,676. In the last1, annual report it was state 1 that something) less than $500,000 would be ample to finish i the census. It is now apparent that 8275,-1 COO will complete the work. A lan?e portion of the force of the Oensus Office has been discharged. By January 1 the! force will be reduced to 'about 200,' and by March 1 it will be disbanded, with the exception of a small number who wlllbe retained to supervise proof reading and actual publication. The Seoretaryi oloses his report with a recommendation fori an additional building for tbe Interior Department, as $352,689 was paid out for rental In mKlok rt 1 K*a n/lK OQ V/l UUUUIU^O Ui WU1UU OOVOIUI tiUwiivw vt. the department have their offlccs. The Agricultural Report. Secretary Morton, who is in his mental characteristics a most interesting member of the Cabinet, has given to the farmer a lot' of Interesting reading in his annual report. He doesn't deal with seeds and cugs and thistles exclusively. At the very end of his report he drops agriculture for finance* and, after telling the farmer that the imports of farm products for the fiscal year 1894 amounted to upward of 6328,000,000, he asks abruptly: "Would the $60,000,000 worth of farm products from the United States sold last year to foreign nations have been as remunerative to the American farmer if they had been paid for in silver as they have been when paid for in gold or its equivalent? "When the standard ooln of the Republic shall be made of metal worth as muoh after it is melted as It purports to be wortlvin coin, and the mint valuo and ttie bullion valna ot all cofaqi fe poorly the same, wTfl not the American Tarmer and all other citizens become more permenently prosperous? II the Amerloan farmer, laborer and manufacturer are compelled by law to submit to the measurement of the value of the produots of their efforts by a sliver standard, will not the foreigner In buying those products always use the same measure? With his beef, pork and cereals the Amerloan farmer buys money, and why should he not demand as superlative quality in that whloh he buys as the domestic and foreign purchasers Insist upon, In that whloh he sells? If tbose buyers dotoand 'Driiae* beef and 'prime' pOrfe, why * should not the farmer demand 'prime' currency, the best measure of value, the most f fair and facile mediation of exohanges, in ;the most unfluctuating money which th< [world of commerce has ever evolved?" Mr. I Morton devotes a lot of spaoe to our exports. He shows that Oreat Britain takes the great bulk of all we send ( abroad, and that she pays American: less than she pays Canadians and Danes .and others for similar exports, be.'cause they cater to British taste with greater success than Americans ao. six. ; Morton gives a dig at potato raising byshowing: that British potato exporters do not loob .to the United States markets for Bales until the New York price raises to about 82.25 a sack. The Secretary continues: Then 'is a growing demand in England foi American horses. During the first nine months of the year 1894 the English market took 2811 American driving horses, at an average vitlue of 8189 per head. Last year the average price ot those shipped was 8230. A sound, light, draught horse, in good condition. of the size and weight adapted to omnibus work in cities, will generally bring, in Liverpool or London, 8150. The Secretary recommends that the purchase of seeds for gratuitous and promiscuous distribution be utterly abolished, and that not one cent be appropriated for such distribution. During, I the fiscal year ending June 30, 1894, thej geed Division gave out to Senators, Representatives and Delegates in Congress. 7,440,918 papers of vegetable seeds, 640065 papers ot flower seeds, 63,746 papers of tobacco seed. 182,542 papers of turnip seed, 35 quarts or mangei-wurcle seed, 621 quarts of sugar beet seed, 4878 quarts of rape seed, 60 quarts of oats,35 quarts of sorghum, 11,706 quarts of corn, 10,16< quarts of gross seed, 9248 quarts of clovei seed, aud 21,166 quarts of cottoa seed. Id the distribution, denature, Representative! and Delegates in Congress sent oul 8,885,120 packages; county statistical correspondents of the Agricultural Department, 507,661; State statist!<ml acents of the danarrmenf- 14.1 1991 experiment stations and experimental farms, 62,228} agricultural associations and mlscel? laneous applicants, 469,180, so that th? aggregate number of packages ol seed gratuitously distributed by th< Government of the United State! in the fiscal year is 9,555,818. The 'cost ol this enormous distribntlon, not ln? eluding the carriage of the packages, which jamount in weight to more than three hundred tons, as dead matter by the postal ser< vioe. is <128.642.51. FOOTBAIilERa KILLED. Ban Down by a Locomotive on ai Grade Crossing. ! The 9.85 a. m. passenger train on the New York and New England Railroad struok a; barge containing the SoothbrldgeY. M. C. A. football eleven and substitutes as it was! crossing the tracks at Centre street, 8outh-; bridge, Mass., on the way to the football' field to play the Worcester Polytechnio In-' stitute eleven, and as a result of the disaster i two of the young men were dead, five others, It was thought on the day after the tragedy, j fatally hurt, while nine others reoelveaj serious injuries. i The dead are Charles Gauthler, agedf thirty, Soathbrldge, farm hand, leaves aj wife and two children; Joseph Cook, agedi eighteen, son of Mrs. Fannie Cook, South-. hrlitrn amnlnVMl In t-h? A m?r)?on ! WoSB. ; Those who were probably mortally In-1 Jored are: John Street, aged twenty-two, tee. Mass.,. brother of the quarter back on Williams' College eleven and himself half back on the freshman eleven; skull fractured. Internal Injuries. Andrew Taylor, Southbridge: skull frao-< tared, both eyes lost. Internal injuries. Victor Keteon, aged twenty-three, Southbridge ; skull fractured, leg broken, internal Injuries. Alfred F. Hughes, aged nineteen. South-) bridge i skull fractured, internal injuries. Charles Simpson, aged seventeen, son of Andrew Simpson. Southbridge; leg broken; la two plases and Internal injuries. The train for Worcester, due to leave, Southbridge at 9.45 a. m., was -delayed at; the station by an accident to Brakeman E. P. Carlson, whose foot was crushed, audi the train was running fast to make up time.! The football eleven of the Y. M. C. A. had started from their rooms to walk to the] grounds, and meeting the barge that had< carried their opponents, the Worcester Poly-! technic Institute eleven, returning, they tumbled in and urged the driver to hurry as they were late. tiie horses were on the trask at the Central street crossing when a sharp whistle from the locomotive, hidden by a curve and a high building on the left side of the street,^ was the llrst warning to the sixteen occupants ol the barge. JUriver Cj. v. ouaujueniuu uuuuu mo uuiogg .end the men on the seat by his side Jumped. They were too late. The engine struck the barne on the left side, between the wheel?, and tore along for 150 yards, crashing the barge. The crowd on the football held could s4e the engine when it came to a standstill, and scores of persons were soon at work search' lng for friends and relatives In the wreck. Charles Gauthler was found dead near the crossing, evidently Instantly killed by being dashed against the rocks. Pinned In the debris In front of the encrlne were John Street, quarter back of the Williams College eleven, who was visiting the Taylor boys, his college friends, and was to help out on the Soatftbridae eleven. Joseph Cook died in twenty minutes at the electrlo light station were the Injared men were taken. Everything possible waa done for the Injared men, bat little hopes of recovery were expressed for four or five of them. The Worcester Technology team returned home on the noon train completely on ?J nervea Dy me aocmeui, mo gumo uaiw^ been abandoned. FIFTY-THIRD CONQRESS. In the Senate. 2d Da*.?Only routine business was transacted. Several bills were introduced bv Mr. Peffer and referred. Among them was one "To provide a proper disposition of the remains of deceased members, of the Senate and House of Representatives who die at the Capital during the sessions of Congress." Another was to repeal that part of the Resumption aot provides for the sale ol bonds. And a third was to provide for the Government control of freignt railroads. Mr. Bianchard offered a resolution instructing the Committee on Appropriations to report an amendment to the Urgency Deficiency bill appropriating a sufficient amount to pay the sugar bounty on the sugar orop of 1894, under the terms of the act of *1890. It was laid over. Secretary Carlisle's report containing his plan for the reform of the currency was then submitted. t>?v a rmnlutlon cailine for informa tlon as to the torture of two alleged Japanese spies In Shanghai was referred to the Foreign Relations Committee. The discussion of a closure resolution was began. Mr. Hoar Introduced a bill granting a pension of $100 per month to the widow of the late General N. P. Banks. A large batch of nominations was received from the President. In the House. 2d DAT.?There were only 100 members present. Mr. Baker asked unanimous consent for the consideration of a resolution calling on the Secretary of War for the report of the Board of Engineers on the New York and New Jersey Bridge bill, passed last session, and information as to what action, if any, had been taken thereon. Referred. The bill for the dedication of the Ohlckamauga and Chattanooga National Park, appropriating $20,000, was passed. After the adoption of an amendment reducing the appropriation of $150,000 to $75,000 for a r>n?tr rtn th? hattlefleld of Shlloh. I UJAJUlUftJ J^W*a, VM the bill was passed. The annual report of J Secretary Carlisle was received. Other business wa9 of a routine nature. 3d Day.?ThePrlntiag bill was passed. Mr. Hooker introduced a joint resolution repealing Section 3 of the act providing for | the resumption ol specie payments, which authorizes the Secretary or the Treasury to sell bonds described In the act of July 14, 1875. SENATOB MORGAN ELECTED. The Alabama Legislature Selects Him j to Succeed HimselC | A ballot was taken In both Houses of the Alabama General Assembly at Montgomery tor United States Senator to succeed John T. Morgan. Morgan received twenty-three i votes in the Senate and sixty-one in tho I tartnaa Wiirran Reese ("Pop.), ot Montgom JOnS T. 2SOBQAN. ery, received nine votes in the Senate and twenty-four in the House. A joint convention was held next day which declared Morgan (Dem.) elected. Reese, it was said, would contest the seat, and it was said that the ballot for blm was the first step la organisation of tie Kolb government. ? ITHNOFTMiM. AUOTAL REPORT OF, THE SECRETARY OF WAR. Estimates and Suggestions?Battal- * ion- Formation Urged ? More Troops Are Needed ?Coast Defences ? Better Recrtilts and Fewer Desertions. ' Secretary of War Lamonr, In bis annual report, says that the total number of enlisted men in the service on October 31 was 25,516. Of this number 23,775 were distributed as follows amonsr the various departments : California, 13?5; Colorado, 8,223; Columbia. 1506; Dakota, 8180; East, 6626; Missouri,'8754 ; Platte, 2106; Texas, 1988. ' The ??xpenditure8 for the fiscal year were 6RA noo nno oa * vw(wtf(;,wv9,tfi, o^^ivpiaiivua JUI usvoi year ending in 1895. $52,429,112.78; estimates for that year, $52,818,629.55. The Secretary earnestly recommends legislation to establish the three-battalion formation now adopted by th? armies of every other civilized Nation. To effect that change he recommends a return to the law of 1870, fixing at 80,000 the limit. of the army. By the changes proposed the army will be increased twenty per cent. In efficiency.' It is proposed to add two companies to each of the twenty-five infantry regiments and two batteries to each ot the five artillery regiments. No increase in oavalryis proposed The cost of the increased number ot enlisted men would be $1,200,00# annually, but as retrenchment has reduced administrative expenses of the War Department $500,000. efficient organization and greater strength may be obtained at on Increase of t only $700,000. It is proposed to meet the necessary increase in line officers by reductions In the staff, and to this end a consolidation of the Quartermaster's Fay and Subsistence Departments into the Bureau of Supply is recommended. Tne concentration or troops daring tne !>ast year at Important centers has been elected without lessening necessary protection heretofore afforded to- any put of the country. Tbe three recruiting depots have been abolished, adding 1500 men to the'effectlve , strength and reducing expenditures about (250,900. Post and regimental recruiting, which Involves little or nc expense and brings recruits immediately into the commands with which they are to serve, will be extended. The character of recruits is improved, and last year only 7517 out of 27,581 applicants were accepted. All recruits must' now write the English language and must be citizens of | the United States or must have declared their intentions. Of 2701 men discharged by expiration of service 2079 re-enlisted. Desertions show a large decrease. { Seven regiments have been armed with the new magazine rifle, and by May 1,1895, the infantry will be completely equipped with the new arm. The manufacture of modern field and siege artillery i^ns been continued. Sea coast defence may now be prosecuted as rapidly as Congress makes appropriations. The total cost of finishing the armament of our twenty-eight chief seaports, of which the first fourteen are Portland, Me.. Boston, Narragansett Bay, New York, Philadelphia, Washington, Baltimore, Hampton Boads, Wilmington, Charleston, Savannah, Key West, Mobile and San Francisco, is estimated to be (20,639,987 for guns. (9,801,120 for mortars. $12,500,000 for gun carriages and $5,232,000 for mortar carriages, a total, including contract wort, of (60.277,248. Annual appropriations of 84,250,000 will be required for armament during the next twelve years, which will build and mount 683 high power guns and 824 high power mortars. By the end of December we shall have seyenty-seven high. ' power guns ' awaiting carriages. One . twelve-inch gun is mounted at 8andy Hook, and another will soon be, and three of this calibre are to be mounted during the year at San Francisco. One battery of sixteen mortars, commanding the southern entrance to New York Harbor, is nearly completed, and by July a second battery commanding the eastern entrance, and like the batteries at Boston and San Francisco, will be mounted. Such progress has been made in sea coast defence that a board of artillery officers has been appointed to develop a system to direct the fire of the fortifications at the ' Narrows. New Tork, against a hostile fleet. More liberal provislous of law for arming and equipping the National Guard are recommended. The mllltla numbers 117,583 officers and men, an increase of about 5000 since last year. The artillery arm, maintained by thirty-three States, numbers 5922 , the cavalry arm, maintained by twenty-six States, 5069. Secretary Lamont refers briefly to the use /\f trnr r?Q tn ornmiM fh? nMAfn nf fhfl TTnttoH States courts last summer, and to the thorough efficiency of every branch of the service then demonstrated. ,. Secretary Lamont recommends that a statue of General Grant be erected at Washington, between tbe Capitol and the Congressional Library. The construction of a memorial bridge over the Potomac?, as an approach to the National Cemetery at Arlington, to oonnect Washington and Fort Slyer, is again recommended. THE LABOR WORLD. The Pullman strike of 1391 cost the State Of Illinois 5403,000. The shoe industry lends all othera in approaching full production. Ponxs have overspread the greatest part of Long Island as farm laborers. In Murano, a small island near Venice, ho i* ?ho nnftra nninlftHnn work at gl ass ma Icing. Thi Amalgamated Soolety of Carpenters and Joiners ot Great Britain and Ireland ore thirty-four years old. Johv Bcnxq, the English labor leader, has. sailed for America to attend the meeting ol the Federation of Labor. Dux's Review of Tbids says the mast hopeful stgn of better times is the larger employment of labor everywhere. Eyeby workman in Japan wears on his cap and on his baok an inscription giving his business and his employer's name. Jcjdge Coolet pointed oat the dangers in compulsory arbitration in an address to the Post-Graduate Club at Ann Arbor, Mich. geneiial masteb wobkjtax sovereiox, Of the Knights of Labor, has voluntarily reduoed his salary from $3600 to (2500 a year. Boston garment workers propose to establish co-operative shops, undor the jurlsdltion ol the United Garment Workers ol - America. T>m. nt fha 'Padaril TTnlnn of KinSiU City Is to gather Into oae organization men whose occupations are not represented la the various unions. Five hundbed cheese factories in Door, Brown, Kowane^, Manitowoc and Ouatagaml Counties, Wisconsin, have shut dowi until next May. Foes hundred men employed in the Canton Copper Works at Baltimore, Md., hav? been notified that on next pay day wages will be increased ten per cent. At one stroke the Italian Government ha* suppressed flfty-flvo labor associations, Some of the societies were centers of dangerous propaganda among the working classes and menaced the public peacp. A London oilman was lined for working four boys under foureten years of ag< eighty-six hours a week. Under the shop hours act youDg persous must not bo employed over seventy-four hours a weels. m i 1 1 ?T?,ar,?> m?UG mis ueeu u laig'j c.wiuo Canadian families to the New England States oflate. It Is estimated that nearly 3000 havo left Canada for Lowell, Holyoki and other milling canters In Massachusetts since the middlo of October. Judge Dallas, of the United States Cour. in Philadelphia, decided against the petitioi of Reading employes, who asked tnat theii proposed dismissal by the raceivers beoaus* ' of their connection with the Brotherhood o Bail way Trainmen be prohibited. Kobbebs at Shiner, Texas, blew up a vault j containing a large sum of money, which j they secured; the explosion caused a fire which did $100,000 damage. 1