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I _ lewis m. grist, Proprietor.! j^n fnbcjpbcnt Jfantilj ^tttuspHpcr: Jor % |) rant of ion of t{it political, Social, Agricultural anb Commercial Interests of tjie Sontjj. j TERMS?$3.00 A YEAR, IN ADVANCE. VOL. SO. YOEKVILLE, S. C., THURSDAY, DECEMBER 17, 1874. HO. 51. JUfaiw of the Ration. ! PRESIDENT'S MESSAGE.1 . Washington, December 7, 1874. To the Senate and House of Representatives:j ' Since the conveniug of Congress, one year , ago, the nation has undergone a prostration ' in business and industries, such as has not been witnessed with us for many years. Speculation as to the causes for this prostratiou j might be indulged in without profit, because as many theories would be advanced as there | would be independent writers, or those who expressed their own views without borrowing rupon the subject. Without indulging in the theories as to the cause of this prostration, j therefore, I will call your attention to the fact! and to some plain questions, as to which it j would seem, there should oe no aisagreemcuu ; During this prostration two essential elements of prosperity have been most abundant. La-1 bor and capital both have been largely em-1 ployed. Where security has been undoubted, j capital bgftj&en attainable at very moderate rates. "W here labor has been wanted, it has 1 been found iu abundance at cheap rates, com- i pared with that of necessaries, and the com- j forts of life could be purchased with the wages i demanded. Two great elements of prosperi-1 ty, therefore, have been denied us. A third 1 might be added. Our soil and climate are ; ? "" unequaled within the limits of any contiguous territory under our nationality, for its va- | riety of products to feed and clothe a people, j and in that amount of surplus to spare to feed j1 less favored people. Therefore, with these 1 facts in view, it seems to me that wise states- I manship at this session of Congress would die- 1 tate legislation ignoring the past, directing, in 1 proper channels, these great elements of pros- I perity to any people. Debt abroad is the j only element that can, with always a sound J curreucy, enter into our affairs, to cause any i J continued depression in the industries and ,1 prosperity of our people. A great conflict for |' national existence, made necessary, for tempo- j< rary purposes, the raising of large sums of ' money from whatever source attainable. It i1 made it necessary, in the wisdom of Congress, J J and I do not doubt their wisdom in the premi-11 ses, regarding the necessity of the times, to < devise a system of national currency, which j ] * * 3 A - *? - ? - 4-w 1? AArv An no r npitK ! j 11 proved 10 ue niipussiuie i.v nccpuu j/i?? ...v.. , ^ the recognized currency of the civilized world. ' This begot a spirit of speculation, involving j an extravagance and luxury, not required for j I the happiness or prosperity of the people, and j ] involving, both directly and indirectly, for- ] eign indebtedness, the currency being of flue- j ' tuating value, and therefore unsafe to hold for i legitimate transactions, requiring money to : s become a subject of speculation in itself. 11 These two causes, however, have involved us j in foreign indebtedness, contracted in good 11 faith by borrower and lender, which shall be j i paid in coiu, and according to bond agreed 1 < upon, when the debt was contracted, in gold j or its equivalent. The good faith of the gov-1 < ernment cannot be violated toward creditors i without national disgrace ; but our commerce should be encouraged, American shipbuilding | and carrying capacity increased, foreign markets sought for the products of the soil and ' manuufactories, to the end that we may be able o? pay these debts. Where a new market can , be created for the sale of our products, either of i the soil, the mine, or the manufactory, a new < means is discovered of utilizing our idle capi- | tal aud labor to the advantage of the whole < people ; but in my judgment the first step to- t w ward accomplishing this object is to secure a 11 currency of fixed stable value; a currency, i good wherever civilization reigns; one which j i if it becomes superabundant with one people | will find a market with some other; acurren- j i cy which has as its basis the labor necessary j, to produce it which will give to it its value, j Gold and silver are now the recognized me- i diuras of exchange the civilized world over, | aud to this we should return with the least! practicable delay. In view of the pledges of j the American Congress, when our present le-' l * - J . L /i/?rt I gai tender system ?us wuwpicu ouu ucuk mu- j traded, there should be no delay, certainly j no unnecessary delay, in fixing by legislation j a method by which we will return to specie. To the accomplishment of this end I invoke your special attention. I believe firmly that j there can he no prosperous and permanent re- ; vival of business and industries till a policy is adopted, with legislation to carry it out, looking to a return to a specie basis. P It is easy to conceive that debtor and spec| - ulative classes may think it of value to them to make so-called money abundant till they can draw a portion of their burdens upon others; but even these, I believe, would be disappointed in the result if a course should be pursued which will keep iu doubt the value of the legal tender medium of exchange. A revival of productive industry is needed by all classes?by none more than the holders of property of whatever sort, with debts to liqui-, date from realization on its sale. But admit ting that these two classes of citizens are to be benefitted by expansion, would it be honest to give it? Would not the general loss be too great to justify such relief? Would it not be just as honest and prudent to authorize each : debtor to issue his own legal tender to the ex- j tent of his liabilites. Than to do this, would ' it not be safer, for fear of over-issues by un- j scrupulous creditors, to say that all debt obli- j gations arejobliterated in the United States, and now we commence even, each possessing all he has at the time, free from incumbrance? The propositions are too absurd to be enter-: taiued for a moment by thinking or honest w people. Yet every delay in preparation for the final resumption partakes of this dishon- j esty, and is only less in degree as the hope is j held out that a convenient season will at last arrive for the good work of redeeming our ! mnimpnw Tt will npvpr come in I KV VV *<wuvv. > "... ?-w . .. - ? . my opinion, except by positive action by Con-1 gress, or by national disasters which will de- j stroy, for a time, at least, the credit of indi-J viduals and the State at large. A sound cur-! rency might be reached by total bankruptcy and discredit of the nation and of individuals. I believe it is in the power of Congress at this session to devise such legislation as will renew conBdence, revive all the industries, start us on a career of prosperity to last for many years, and to save the credit of the nation and of the people. Steps toward the return to a specie basis are the requisites to this devoutly ( to be sought for end. There are others which j I may touch on hereafter. A nation dealing in a currency below that of sp oie in value labors under two great disadvantages. 1st. Having no use for the world's acknowl- J edged medium of exchange, gold and silver. These are driven out of the country, because ' there is no demand for their use. 2d. The medium of exchange in use, being ~ i n r. 11 . | of a fluctuating value?ior arier an, n is only worth just what it will buy of gold and silver metals, having an intrinsic value just in proportion to the honest labor it takes to produce them?alarger margin must be allowed for profit by the manufacturer and producer. It is months from the date of production to date of realization. Interest upon capital must be charged, and risk of fluctuation in value of that which is to be received iu payment added ; hence high prices, acting as a protection to the foreign producer, who receives nothing in exchange for his products except a currency good at a staple value the | world over. It seems to me that nothing is clearer than the greater part ofthe burden of ^ the existing prostration for the want of a sound financial system, falls ou the workingrnan, \ who must, after all, produce the wealth, and > the salaried man, who superintends and conducts the business. The burden falls upon them in two ways?by the deprivation of employment, and by the decreased purchasing power of their salaries. It is the duty of Congress to devise a method of correcting the j evils which are acknowledged to exist, and not mine; but I will venture to suggest two or three things which seem to me as absolutely i necessary to return to specie payment. As the first great requisite in the return to pros- j perity, the legal tender clause to the law au thorizing the issue of currency by the nation- j al government should be repealed, to take ef-, feet as to all contracts after a day fixed in repealing the act, not to apply to payments of salaries by the government, or for other ex-! penditures now provided by law to be paid in ; currency. In theinterval pending between j repeal and final resumption, provision should j be made by which the secretary of the treasu- \ ry can obtain gold as it may become necessary j fr<\m timo to time from the date when SDecie : redemption commences. To this might be added a revenue in excess of expenditures to insure an accumulation of gold in the treasury to sustain redemption. I commend this subject to your consideration, believing that a j favorable solution is attainable, and if reached by this Congress that the present and future generations will ever gratefully remember it as their deliverer from a thraldom of evil and disgrace. With resumption free banking.may be authorized with safety, giving full protection to bill holders, which they have under existing laws. Indeed, I would regard free J banking as essential. It would give proper ; elasticity to the currency, as more currency | should be required for the transaction of le- j gitimate business; new banks would be started j and in turn banks would wind up their business when it was found that there was a su- J perabundance of currency. The experience I and judgment of the people can best decide! just how much currency is required for the j transaction of the business of the country. It < is unsafe to leave the settlement of this ques-j tion to Congress, the secretary of the treasury j si* the executive. Congress should make the | regulations under which banks may exist, but I should not make banking a monopoly, by limiting the amount of redeemable paper currency that shall be authorized. Such importance do I attach to this subject and so ear- j nestly do I commend it to your attention, that! L give it prominence by introducing it 111 tne beginning of this message. During the past year nothing has occurred j to disturb the general friendly and cordial relations of the United States with the other powers. The correspondence submitted here-1 with between this government and its diplo- j matic representatives, as also with the representatives of other countries, shows a satisfac- | tory condition of all questions between the j United States and the most of those countries, ; md with few exceptions, to which reference j is hereafter made, the absence of any points ! of difference to be adjusted. The notice directed by the resolution of j Congress of June the 17th, 1874, to be given j to terminate the convention of July the 17th, j 1858, between the United States and Belgium, has been given and the treaty will accordingly terminate on the first day of July, 1875. JThis convention secured to certain Belgian vessels entering the ports of the United States exceptional privileges which are not accorded I to our own vessels. Other features of the convention have proved satisfactory and have i tended to the cultivation of mutually benefi- j oial commercial intercourse, and the negotia- j Lions which have been invited will result in , the consummation of another treaty which ; may tend to the interests of both countries, j Our relations with China continue to be friend- j ly. During the past year the fear of hostilities between China and Japan, growing out j of the landing of an armed force upon the Is- ; land of Formosa by the latter, has occasioned I uneasiness. It is earnestly hoped, however, that the difficulties arising from this cause' will be adjusted, and that the advance of civilization in these empires may not be retarded j by a state of war. In consequence of the : part taken by certain citizens of the United ; States iu this expedition, our representatives j I.? tUco harp hppn instructed to im press upon the governments of China and Japan the firm intention of this country to maintain strict neutrality in the event of hostilities, and to carefully prevent any infraction of, law on the part of our citizens. In connection with this subject I call the attention of! Congress to a generally conceded fact, that j the great proportion of the Chinese immigrants who come to our shores, do not come voluntarily to make their homes with us and j their labor productive of general prosperity, | but come under contracts with head men who ! own them almost absolutely. In a worse j form does this apply to Chinese women. Hard-! ly a perceptible per centage of them peform ; any honorable labor, but they are brought for j shameful purposes to the disgrace of commu-1 nities where settled, and to the great demor-! alization of the youth of those localities. If; this evil practice can be legislated against, it j will be my pleasure as well as duty to enforce ; any regulation to secure so desirable an end. I It is hoped that negotiations between the gov-1 eminent of Japan aud the treaty powers look- j ing to the further opening of the empire, and : to the removal of various restrictions upon! trade and travel, may soon produce the results j desired, which cannot fail to enure to the bene-1 fit of all the parties. Having, on previous oc- j casions, submitted to the consideration of Con-1 gress the propriety of the release of the Japanese government from the further payment of the indemnity, under the convention of October 22,1864, and as no action had been taken thereon, it became my duty to regard the obligations of the convention as in force, and as the other powers interested had received their ! portion of the indemnity in full, the minister 1 of the United States in Japan has, in behalf j o.t A ; 1 _ or ine government, receiveu me icuiamuci u? , the amount due to the United States under the convention of Simonoseky. I submit the propriety of applying the income of a part, if not the whole of this fund, to the education,! in the Japanese language, of a number of young men to be under obligations to serve the government for a specified time, as interpreters, at the legation and the consulates in Japan. A limited number of Japanese youths might, at the same time, be educated in our own vernacular, and mutual benefits would result to both governments. The importance of having our own citizens competent and fa- j miliar with the language of Japan, to act as j interpreters and in other capacities connected j with the legation and the consulates in that country, cannot readily he overestimated. The amount awarded to the government of Great Britain by the mixed commission or- j ganized uuder the provisions of the treaty of Washington, in settlement of claims of British subjects, arising from acts committed between April 13th, 1861, and April 9th, 1865, became payable under the terms of the treaty, within the past year, and was paid upon the 21st day of September, 1874. In this connection I renew my recommendation made at the opening of the last session of Congress, that a special court be created to hear and determine all claims of aliens against the United .States arising from acts committed against their person or property during the insurrection. It appears equitable that opportunity should be offered to citizens of other States to present their claims as well as to those British subjects whose claims were not admissible under the late commission, to the early decision of some competent tribunal. To this end I recommend the necessary legislation to organize a court to dispose of all claims of aliens of i the nature referred to, in an equitable and satisfactory manner, and to relieve Congress i and the departments from the consideration of the questions. Legislation necessary to extend to the colony of New Foundland certain articles of the treaty of Washington, of the 8th day of May, 1871, having been had, a protocol to that effect was signed in behalf of the United States and of Great Britain on the 28th day of May last, and was duly proclaimed on the following day. A copy of the proclamation is submitted herewith. A copy of the report of the commissioner appointed under the act of March 19, 1872, for surveying and making the boundary between the United States and the British possessions, from the Lake of the Woods to the summit of the Rocky Mountains, is herewith transmitted. I am happy to announce that the field work of the commission has been completed, and the entire line from the northwest corner of the Lake of the Woods to the summit of the Rocky Mountains has been run and marked upon the surface of the earth. It is believed thatthe amountremaining unexpended of the appropriation made at the last session of Congress, will be sufficient to complete the office work. I recommend that the authority of Congress he given to the use of the unexpended balance of the appropriation in the completion of the work of the commission in making its report and preparing the necessary maps. The court known as the court of commissioners of Alabama Claims, created by an Act of Congress of the last session, has organized ? J J :t 1. ??,i l,fl ItllU (JUI1J IllUliUCU 1U3 VVUl ft, ft LIU lb la iu m, that the claims admissible under the provisions of the act, may be speedily ascertained and paid. It has been deemed advisable to exercise the discretion conferred upon the executive at the last session, by accepting the conditions required by the government of Turkey, for the privilege of allowing citizens of the United States to hold real estate in the former country, and by assenting to a certain change in the jurisdiction of courts in the latter. A copy of the proclamation is herewith communicated. There has been no material change in our relations with the independent States of this hemisphere, which were formerly under the dominion of Spain. Marauding on the frontiers between Mexico and Texas, still frequently takes place, despite the vigilance of the civil and military authorities in that quarter. The difficulty of checking such trespasses along the course of a river of such length as the Rio Grande, and so often fordable, is obvious. It is hoped that the efforts of this government will be seconded by those of Mexico, to the effectual suppression of these acts ~ r .. ? ui wrung. From a report upon the condition of the business before the American and Mexican joint claims commission, made by the agent on the part of the United States, dated October 21,1874, it appears that of the 1107 claims filed on the part of the citizens of the United States, 483 had been finally decided and 75 were in the hands of the umpire, leaving 463 to be disposed of; and of the 998 claims filed against the United States, 726 had been finally decided, one was before the umpire and 271 remained to be disposed of. Since the report of that date, other claims have been disposed of, reducing somewhat the number still pending, and others have been passed upon by the arbitrators. It has become apparent, in view of these figures, and of the fact that the work involving the umpire, is so particularly laborious that the commission would be unable to dispose of the entire number of claims pending prior to the first day of February, 1875, the date fixed for its expiration. Negotiations are pending, looking to the securing of the results of the decisions which have been reached, and to a further extension of the commission for a limited time, which, it is confidently hoped, will suffice to bring all the business now before it to a final close. rrs% . n it A 1.1! _ x _ I.. ine sirne in ine Argentine repuuucis iu ue deplored, both on account of the parties thereto, and from the probable effects on the interests of those engaged in the trade to that quarter, of whom the United States are among the principal. As yet, so far as I am aware, there has been no violation of our national rights?rights which, as well as our duties in that respect, it shall be my endeavor to maintain and observe. It is with regret I announce that no further payment has been received from the government of Venezuela on account of awards in favor of the citizens of the United States. Hopes have been entertained that if that republic could escape from foreign and civil war for a few years, its great natural resources would enable it to honor its obligations. Though it is now understood to be at peace with other countries, a serious insurrection is reported to be in progress in an important region of that republic. This may betaken advantage of as another reason to delay the payment of the dues of our citizens. The deplorable strife in Cuba continues, without any marked change in the relative advantages of the contending forces. The insurrection continues, but Spain has gained no superiority. Six years of strife give to the insurrection a significance which cannot be de - 0 nied. Its duration and the the tenacity of its adherents, together with the absence of manifested power of suppression on the part of Spain, cannot be controverted, and may make some positive steps on the part of other powers a matter of self-necessity. I had confidently hoped at this time to be able to announce the arrangement of some of the important questions between this government and that of Spain. But the negotiations have been protracted. The unhappy intestine dissensions of Spain command our profound sympathy, and must be accepted as perhaps a cause of some delay. An early settlement in part, at leust, of the questions between the governments, is hoped. In the meantime, awaiting the results of immediately pending negotiations, I defer a further and fuller communication on the subject of the relations of this country with Spain. I have again to call the attention of Congress to the unsatisfactory condition of the existing laws with reference to expatriation and election of nationality. Formerly, amid conflicting opinions and decisions, it was difficult to exactly determine how far the doctrine of perpetual allegiance was applicable to citizens of the United States. Congress, by the act of the 27th of July, 1868, asserted the abstract right of expatriation as a fundamental principle of this government. Notwithstanding such assertion, and the necessity of frequent application of the principle, no legislation has been had defining what acts of formalities shall work expatriation, or when a citizen shall be deemed to have renounced or to have lost his citizenship. The importance of such definition is obvious. The representatives of the United States in foreign countries are continually called on to lend their aid and the ' nrotection of the United States to persons con ccrning the good faith, or the reality of whose citizenship there is at least great question. In some cases the provisions of the treaties furnish some guide; in others, it seems left to the persons claiming the benefits of citizenship, while living in a foreign country, contributing in no manner to the performance of the duties of a citizen of the United States, and without inteution at any time to return and un' dertake those duties, to use the claims to citi| zenship of the United States simply as a shield from the performance of the obligations of a citizen elsewhere. Thestatus of children born of American parents residing in a foreign country, of American women who have mar ried aliens, of American citizens residing abroad, where such question is not regulated i by treaty, are all sources of frequent difficulty | and discussion. Legislation on these and ; similar questions, and particulary defining ! when and under what circumstances expatriation can be accomplished or is to be presumed, is especially needed. In this connection I | earnestly call the attention of Congress to the difficulties arisiugfrora fraudulent naturalizaI tion. The United States wisely, freely and liberi ally offers its citizenship to all who may come ! in good faith to reside within its limits on I their complying with certain prescribed reai sonableand simple formalities and conditions. | Among the highest duties of the government, I is that to afford firm, efficient, and equal proI tection to all its citjgens, whether native born j or naturalized. Care should betaken that a j right carrying with it such support from the | government8hould not be fraudulently obtaiui - -i J 1 ...1.1 l._ J ?1~ f.,11 en, ana snoum uc umiuwcu umjr ujiuu juh proofs of compliance with the law, and yet frequent instances are brought to the attention of the government of illegal and fraudulent naturalization audof the unauthorized use of certificates, thus improperly obtained. In some cases the fraudulent characters of the naturalization has appeared upon the face of the certificate itself; in others, examination discloses that the holder had not complied with the law, and in others certificates have been obtaiued where the persons holding them, not only were not entitled to be naturalized, but had not even been within the United Stales at the time of the pretended naturalization. Instances of each of these classes of fraud are discovered at our legations, where the certificates of naturalization are presented, either for the purpose of obtaining passports, or in demanding the protection of the legation. When the fraud is apparent on the face of such certificates, they are taken up by the ? ? a 1 _ representatives ot tne government auu iurwarded to the department of state. But even then the record of the court in which the fraudulent naturalization occurred remains, and duplicate certificates are readily obtainable. Upon the presentation of these for the issue of passpoits, or in demanding protection of the government, the fraud sometimes escapes notice, and such certficates are not unfrequently used in the transaction of business, to the deception and injury of innocent parties. Without any additional obstacles-in the way of the obtaiument of citizenship by the worthy and well intentioned foreigner who comes in good faith to cast his lot with ours, I earnestly recommend further legislation to punish fraudulent naturalization, and to secure the ready cancellation of the record of every naturalization made in fraud since my last annual message. The exchange has been made of the ratification of treaties of extradition with Belgium, Ecuador, Peru and Salvador; also, of a treaty of commerce and navigation with Peru, and one of commerce and consular privileges with Cnl..oilni. oil rtf tnliinVi tiavo tioon /llllv nm uai V OUUI J Ull \JA 1I1UV1I til* v v ?.?. J | claimed ; a3ha9also a declaration with Russia with reference to trade marks. The report of the secretary of the treasury, which by law iB made directly to Congress, and is no part of this message, will show the receipts and expenditures of the government for the last fiscal year?the amount received from each source of revenue, and the amount paid out for each of the departments of government. It will be observed from this report that the amount of receipts over expenditures has been but $2,344,882.30 for the fiscal year ending June 30, 1874, and that for the current fiscal year the estimated receipts over expenditures will not much exceed $9,000,000, in view 1 /InKf flvlotlnrv nnr] nK. UI Lilt: iUlgC lliiuuuai UCUII ^Aiocuig, n.?v. ?.# ligation to add one per cent, per annum to the sinking fund, a sum amounting now to over 834,000,000 per anuura. I submit whether revenues should not be increased or expenditure diminished to reach this amount of surplus. Not to provide for the sinking fund is a partial failure to comply with the contracts and obligations of the government. At the last session of Congress a very considerable reduction was made in the rates of taxation and in the number of articles submitted to taxation. The question may be asked whether or not in some instances unwisely. In connection with this subject, too, I venture the opinion, that the means of collecting the revenues, especially from imports, have been so embarrassed by legislation as to make it questionable whether or not large amounts are not lost by failure to collect, to the direct loss of the treasury, and to the prejudice of the interests of honest importers and taxpayers. The Secretary of the Treasury, in his report, favors legislation looking to an early return to specie payments, thus supporting the views previously expressed in this message. He also recommends economy in appropriations, calls attention to the Joss of revenue from repealing the tax on tea and eoffee without benefit to the consumer, and recommends an increase of ten cents a gallon on whisky, and further, that no modification be made in j the banking and currency bill passed at the ! last session of Congress, unless modification 1 should become necessary by reason of the i adoption ofLmeasures for returning to specie | payments. In these recommendations I cori dially join. I would suggest to Congress the propriety of readjusting the tariff so as to increase the revenue and at the same time decrease the number of articles upon which dui - T I. nnfnr j Lies liru 10V1CU. JLIIUSt; ill liuca nmui I.utvi I into our manfactures and are not produced at | home, it seems to me, should be entered free. Those articles of manufacture which we proj duce a constituent part of, but do not pro! duce the whole; that which we do not ' produce should enter free also. I will instauce fine wool, dyes, &e. These articles must be ! imported to form a part of the manufacture j of higher grades of woolen goods. Chemicals i used as dyes, compounded in medicines, and : in various ways in manufactures, come under I this class. The introduction, free of duty, | of such wools as we do not produce, would stimulate the manufacture of goods requiring the use of those we do produce, and therefore would be a benefit to home production. There are many articles entering into home manufactures, which we do not produce ourselves, the tariH'upon which increases the cost j of producing the manufactured article. All ! corrections in this regard are in the direction of bringing labor and capital in harmony with each other and of supplying one of the elements of prosperity so much needed, i The report of the Secretary of War herewith attached, and forming a part of this message, gives all the information concerning the ' operations, wants and necessities of the army, and contains many suggestions and recommendations which I commend to your special 1 Til - - attention, mere is uu uiuss ui ^vcniin&iit employes who are harder worked than the i army officers and men; none who perform j their tasks more cheerfully and efficiently, and under circumstances of greater privations and ! hardships. Legislation is desirable to render more efficient this branch of the public service. All the recommendations of the Secretary of ! War I regard as judicious, and I especially commend to your attention the following : j The consolidation of the Government arsenals, the restoration of mileage to officers traveling under orders, theexemption of money received from the Bale of subsistence stores, from being covered into the treasury, the use of appropriatious for the purehase of subsistence stores, without waiting for the beginning of the fiscal year, for which the appropriation I is made, for additional appropriations for the I collection of torpedo material, for increns j ed appropriation for the manufacture of arm; I | for relieving the various States from indebted- I ness for arms charged to them during the . rebellion ; for the dismission of officers from I the rolls of the army without trial for the of- i fense of drawing pay more than once for the j < i same period; for the discouragement of the plan | < ' to pay soldiers by checks,and for the establish- j 1 j ment of a professorship of rhetoric and Eng- j ] j lisli literature at West Point. The reasons for ' I these recommendations are obvious, and are < set forth sufficiently in the report attached. | j I also recommend that the status of the staff j < corps of the array be fixed, where this has not j ( already been done, so that promotions may be i made and vacancies filled as they occur, in J t each grade, when reduced below the number i ? to be fixed by law. The necessity for such ! ( legislation is especially felt now in the pay j ( department. The number of officers in that t deparment is inadequate to the performance of t the duties required of them by law. i The efficiency of the navy has been largely g increased during the last year, under the im- 1 i pulse of foreign complications which threaten- * ed us at the commencement of last session of 1 Congress. Most of our efficient wooden ships I were put iu condition for immediate service, 1 and the repairs of our iron-clad fleet were ( pushed with the utmost vigor. The result is 1 that most of these now are in an effective state, J and need only to be manned and put in com- J mission, to go at once into service. Some of ^ the new sloops authorized by Congress are al- ( ready in commission, and most of the remain- [ der are launched and wait only the coraple- 1 tion of their machinery to enable them to 1 take their place as part of our effective force. 1 Two iron torpedo ships have been com- 1 pleted during the last year, and four of our 1 large double-turretted iron-clads are now un- ' dergoing repairs. When these are finished, 1 everything that is useful of our navy, as now I authorized, will be in condition forservice, and < with the advauce in the science of torpedo r warfare, the American navy, comparatively ( small as it is, will be found at any time power- ' ful for the purposes of a peaceful nation. s Much has also been accomplished during J the year in aid of science, and to increase the J sum of general knowledge and further the * interests of commerce and civilization. Ex- } tensive and * much needed soundings have ^ been made for hydrographic purposes, and to J fix the proper routes of ocean telegraphy. * Further surveys of the great isthmus have s been undertaken and completed, and two ves- 1 sels of the navy are employed now, in con- * innrfinn with those of Enerland. France. Germany and Russia, in observations connected with the Transit of Venus, so useful and 1 interesting to the scientific world. The esti- * mates for this branch of service do not differ I materially from those of last year. Those for r the general support of the services .being c somewhat less, and those for permanent im- ? provements at the various stations, are rather 8 larger than the corresponding estimates made I a year ago. The regular maintenance and a 8 steady iucrease in the efficiency of this most important arm in proportion to the growth of ^ our maritime intercourse and interests, is re- c commended to the attention of Congress. The c use of the navy in time of peace might be fur- 1 ther utilized by a direct authorization of the ( employment of naval vessels in explorations and surveys of thesupposed navigable waters y of other nationalities on this continent, espe- \ cially the tributaries of the two great rivers of ? South America, the Orinoco and the Amazon. 1 Nothing prevents, under existing laws, such c exploration, except, that expenditures must be ( made in such expeditions beyond those provi- * ded for in the appropriations. The field des- 1 ignated is unquestionably one of interest, and 1 one capable of large development of commer- 1 cial interests, advantageous to the peoples r reached and to those who may establish rela- ? tions with them. * Education of the people entitled to exercise c the right of franchise is essential to general J prosperity everywhere, and especially so in republics where birth, education or previous N condition, do not enter into account in giv- f ing suffrage. Next to the public school, the 1 post office is the great agent of education. 1 Our vast territory, the rapidity with which 1 new sections are being settled, thus increasing 1 the carrying of mails in a more rapid ratio ? than the increase of receipts, is not alarming. c The report of the Postmaster General, here- 1 with attached, shows that there was an in- ? crease of revenue in his department in 1873 f over the previous year, of $1,674,411, and an 1 increase of cost of carrying the mail and pay- ! ing employes of $3,041,468 91. The report 1 of the Postmaster-General gives interesting ' statistics of his department, and compares ( them with the corresponding statistics of a 1 year ago, showing a growth in every branch ( of the department. A postal convention has been concluded j with New South Wales. An exchange of pos- j tal cards was established with Switzerland, 1 and the negotiations pending for several years with France have terminated in the convention which went into effect last August. An international postal congress was convened in Berne, Switzerland, in September lust, at which the United States was represented by an officer of the postoffice depart-' ment of much experience and qualifications for the position. A convention for the establishment of an international postal union was agreed on and signed by the delegates of the countries represented, subject to approval of the proper authorities of those countries. I respectfully direct your attention to the report of the Postmaster General, and his suggestions in regard to an equitable adjustment of the question of compensation to railroads for carrying the mails. Your atteutiou will be drawn to the unsettled condition of affairs in some of the Southern States. On the 14th of September last, the Governor of Louisiana called on me, as ! provided by the constitution and laws of the : United States, to aid in suppressing domestic violence in that State. This call was made in view of a proclamation issued on that day by D. B. Penn, claiming that he was elected J lieutenant-governor in 1872, and calling upon ! the militia of the State to arm, assemble, and j | drive from power the usurpers, as he designai ted the officers of the State government. On the next day, I issued my proclamation comi manding the insurgents to disperse within five days from the date thereof, and subsequently learned that on that day they had taken for- , eible possession of the State House. Step9 were taken by me to support the existing and recognized State government, but before the expiration of the five days, the insurrectionary movement was practically abandoned, and the officers of the State government, with some minor exceptions, resumed their powers and duties. Considering that the present State administration of Louisiana has been ( J the only government in that State for nearly ; ' j two years, that it has been tacitly acknowl- j | edged and acquiesced in as such by Congress,, j and more than once expressly recognized by j i me, I regarded it as ray clear duty when le- j2 ! gaily called on for that purpose, to prevent | } | its overthrow by an armed mob, under the j ? ; pretense of fraud and irregularity, in the * election of 1872. 1 have heretofore called |c attention of Congress to this subject, stating ; 11 that on account of frauds and forgeries com-! 1 niitted at said election, and because it seems j 1 i that, returns were never leerallv canvassed, it c I " ~ ? 0 y ' Ir i was impossible to tell who were chosen ; but ' from the best sources of information at my | r command, I have always believed the present j ? State officers received a majority of the legal ^ ! votes actually cast at that election. I repeat what I said in my special message of Februa- p ry 23d, 18737 that in the event of no action I by Congress, I would continue to recognize the government heretofore recognized by me. [ regret to say that with the preparations for Llie late election, decided indications appeared in some localities in the Southern States of a I determination, by acts of violence and intimi-1 Jation, to deprive citizens of the freedom of the j imllot, because of their political opinions. ! Bands of men, masked and armed, made : .heir appearance, white leagues and other so- j jieties were formed, quantities of arms and immunition imported and distributed to these >rganizations, military drills, with menacing lemonstrations, were held, and with all these nurders enough were committed to spread ;error among those whose actions were to be mppressed, if possible, by these criminal proceedings. In some places colored voters were compelled to vote according to the wishes of he employer, under threats of discharge if hey acted otherwise, and there were too many i -_i? .L.?t nstances m wnicn, wnere unenw ncic u?icjarded, they were remorselessly executed by hose who made them. I understand the 15th iraendment to the constitution was made to prevent this and a like state of things, and he Act of May 31,1870, with amendments, vas passed to enforce its provisions, the object )f both being to guarantee to all citizens the ight to vote and to protect them in the enoyment of that right. Enjoined by the conititution "to take care that the laws be faithully executed," and convinced by undoubted svidencethat violations of said Act have been jommitted, and that wide-spread disregard of t was contemplated, the proper officers were nstructed to prosecute the offenders, and roops were stationed at convenient points to lid the officers, if necessary, in the performince of their official duties. Complaints are nade of their interference by federal authory, but if said amendment and act do not jrovide for such interference under the cir:u instances as above, then they are without neaning, force or eaect, ana tne wnoie scneme )f colored enfranchisement is worse than nockery and little better than a crime. Possibly Congress may find it due to truth and ustice to ascertain by means of a committee, whether the alleged wrongs to colored citizens or political purposes are real, or the reports hereof are manufactured for the occasion. The whole number of troops in the States of [xtuisiana, Alabama, Georgia, Florida, South Carolina, North Carolina, Kentucky, Tennesee, Mississippi, Maryland and Virginia, at i he time of the election, were 4,082. This ' imbraces the garrisons of all forts from the Delaware to the Gulf of Mexico. Another trouble has arisen in Arkansas. Article 13 of the constitution of the State, vhich was adopted in 1868, and upon the ap- ] jroval of which, by Congress, the State was ' estored to representation as one of the States 1 if the Union, provides in effect, that before 1 my amendments proposed to this constitution 1 hall become a part thereof, they shall be ( >ogoo^ Ktt tton annppqqiup flsapmhlip.q and than I ubmitted to and ratified by a majority of 1 ilectors of the State. On the 11th of May, 1 1874, the Governor convened an extra session < >f the general assembly of the State, which, ' >n the 18th of the same month passed an act providing for a convention to frame a new < :onstitution. Pursuant to this act, and at an dection on the 30tb of June, 1874, the contention was approved and delegates chosen hereto, who assembled on the 14th of last Fuly and formed a new constitution, the schedile of which provided for the election of an mtire new set of State officers in a manner :ontrary to the then existing laws, on the 13th >f October, 1874. This constitution, as theren provided, was submitted to the people for heir approval or rejection, and according to he election returns was approved by a large najority of those qualified to vote thereon, ind at the same election persons were chosen o fill all the State, county and township offi:es. The Governor elected in 1872 for the erm of four years, turned over his office to the jovernor chosen under the new constitution, vhereupon the Lieutenant-Governor, also sleeted in 1872 for a terra of four years, claimng to act as Governor, and alleging that said proceeding by which a new constitution was nade and a new set of officers elected, were inconstitutional and void, and called upon me is provided in section 4th, article 4th, of the :onstitution, to protect the State against donestic violence. As Congress is now investigating political affairs there, I have declined ,o interfere. The whole subject of executive nterference with the affairs of the States is epugnaut to republican opinion, to the feelngs of those who from their official capacity nustjhe used in such interposition, and to him pr those who must direct. Unless clearly on l>" "'jn 1 n it? ounli inforfaronno hopnmPQ ? /lie 0111*7 ui tan, OUV/U iu^itwtvuvv wvw.^vw ? :rime. With the law to support it it is con* lemued without hearing. I desire therefore ;hat all necessity for executive direction in oeal affairs may become obsolete. I invite he attention, not of Congress, but of the people of the United States, to causes and effects. )f these unhappy questions. Is there not a lisposition on one side to magnify wrongs and lutrages, and on the other side to belittle them )r justify them? If public opinion could be lirected to a correct survey of what it is, and ;o rebuking wrong and aiding the proper auhorities in punishing it, a better state of feeing would be inculcated, and the sooner we vould have that peace which would leave States free to regulate their own affairs. I lelieve, on the part of our citizens of the southern States?the better part of them? ;hereis a'disposition to be law-abiding, and to lo no violence to individuals or to the laws exsting, but do they do right in ignoring the exstenceof violence and bloodshed in resistance , >f authority? I sympathize with their pros-1 rate condition, and would do all in my power ! ,o relieve them, acknowledging that in some ! ;ases they have had most trying governments 1 ;o live under, and very oppressive ones, in the j vay of taxation for nominal improvements,! lot giving benefits equal to the hardships imlosed, but can they proclaim themselves irreiponsible for this condition ? They cannot. Violence has been rampant in some localises, and haseitherjbeen justified or denied, by hose who could have prevented it. The theory is even raised that there is to be no further i nterferenceon the part of the general govern-1 nent to protect the citizens within the State,; ? 1- 4^ fnil /A ftitrfi ni.rt4aA_ ' rv utile me utatc iiuuiuubicoiitu iu givvf/ivtw,ion. This is a great mistake. While I remain executive, all the laws of Congress and the provisions of the Constitu;ion, including the recent amendments added thereto, will be enforced with rigor, but with J regret that they Bhould have added one jot or ;ittle to the executive duties or powers. Let here be fairness in the discussion of Southern juestionp, the advocates of both or all political parties giving honest and truthful reports ! )f all occurrences, condemning the wrong and I ipholdiug the right, and soon all will be well, j [Juder existing conditions the negro votes the j Republican ticket because he knows his riends are in that party. Many a good citi:en votes the opposite, not because he agrees vith the great principles of State which 1 eparate parties, but because, generally,! le is opposed to negro rule. This is a most j i lelusive cry. Treat the negro asa citizen and ; i voter as he is, and must remain, and soon ! he parties will be divided, not on the color j t ine but on principle. Then we shall have no ' :omplaint of sectional interference. The re- j; >ort of the attorney-general contains valuable ' j ecommendations relating to the administra- j ion of justice in the courts of the United j. States, to which I invite your attention. j J I respectfully suggest to Congress the pro- j 1 irieiy ui lucruaaiug me uumuur ui ouuiuai i i districts in the United States to eleven, the 11 present number being nine, and the creation of two additional judgeships. The territory to be traversed by the circuit judges is so {jreat, and the business of the courts so steadiy increasing, that it is growing more aud more impossible for them to keep up with the Knoinoaa rpnnirintr their attention. Whether this would involve the necessity of adding two more Justices of the Supreme Court to the present number, I submit to the judgment of Congress. The attention of Congress is invited to the report of the Secretary of the Interior, and to the legislation asked for by him. The domestic interests of the people are more intimately connected with this department than with any of the other departments of thegovernment. Its duties have been added to from time to time, until they have become so onerous, that without the most perfect system and order, it will be impossible for any Secretary of the Interior to keep trace of all official transactions, having his sanction, and done in his name, and for which he is held personally responsible. The policy adopted for the management of Indian affairs, known as the peace policy, has been adhered to with the most beneficial results. It is confidently hoped a few years more will relieve our frontier from danger of Indian depredations. I commend the recommendation of the Secretary for the extension of homestead laws to Indians, and some sort of territorial government for the Indian territory. A great majority of Indians occupying this territory are believed yet to be Incapable of maintaining their rights against the civilized white men. Any territorial form of government given them, therefore, should protect them in their homes and property, for a period of at least twenty years, and before its final adoption should he ratified by a mojority of those affected. The report of the Secretary of the Interior, herewith attached, gives much interesting statistical informatio, which I abstain from giving an abstract of, but refer you to the report itself. The Act of Congress providing the oath which pensioners must subscribe to before drawing pensions, cuts off from this bounty a few survivors of the war of 1812 residing in the Southern States. I recommend the restoration of this bounty to all such. The number of persons whose names would thus be restored to the list of pensioners is not large. They are all old persons who could have taken no part in the rebellion, and the service for which they were awarded pensions was in defense of the whole couiftry. The report of the Commissioner of Agriculture herewith presented contains suggestions of interest to the general public, and refers to the approaching centennial, and the part his department is ready to take in it. I feel that the nation at large is interested in having this exposition a success, and commend to Congress such action as will secure a greater general interest in it. Already many foreign nations have signified their intention to be represented, and it may be expected that every civilized nation will be represented. The rules adopted to improve civil service of government have been adhered to as closely as has been practicable with the opposition with which they meet. The effect, I believe, has been beneficial on the whole, and has tended to the elevation of the service, but it is impracticable to maintain tbem without direct and positive support of Congress. Generally, the support which this reform receives, is from those who give it their support only to find fault when the rules are apparently departed from. Removals from office without preferring charges against the parties removed are frequently cited as departures from the rules adopted, and the retention of those against whom charges are made by irresponsible parties, and without good grounds, is also often condemned as a violation of them. Under j these circumstances, therefore, I announce that if Congress adjourns without positive legislation on the subject of civil service reform, I will regard such action as disapproval of the system, and will abandon it, except so far as to require examinations for certain appointees to determine their fitness. Competitive examinations will be abandoned. The gentlemen who have given their services without compensation as members of the board to devise rules and regulations for the government of the civil service of the country,have shown much zeal and earnestness in their work, and to them and to myself it will be a source of mortification if it is thrown away; but I repeat that it is impossible to carry this system to a successful issue without general approval and assistance,and positive law to support it. I have stated that three elements of prosperity to the nation, capital, labor, skilled and unskilled, and products of the soil still remain with us. To direct the employment of these is a problem deserving the most serious ftttpntinn of Cnneress. If emnlovment can be "" O A ? # given to all the labor offering itself, prosperity necessarily follows. I have expressed the opinion, and repeat it, that the first requisite to the accomplishment of this end is the substitution of sound currency in place of one of a fluctuating value. This secured, there are many interests that might be fostered to the great profit of both labor and capital. How to induce capital to employ labor is the question. The subject of cheap transportation has occupied the attention of Congress. Much new light on this question will without a doubt be given by the committee appointed by the last Congress to investigate ana report a revival of ship building, and particularly of iron steamship building, which is of vast importance to our national prosperity. The United States is now paying over one hundred millions per annum for freights and passage on foreign ships, to be carried abroad and expended in the employment and support of other people, beyond a fair percentage of what should go to foreign vessels estimated on the tonnage and travel of each respectively. It is to be regretted that this disparity in the carrying trade exists, and to" correct it I would be willing to see a great departure from the usual course of the government in supporting what might usually be termed private enterprise. I would not suggest as a remedy direct subsidy to American steamship lines, but would suggest ample compensation for carrying the mails between the Atlantic seaboard cities and the continent, on American j - j A : ^ owneu anu AUieilOilU uuiltstroiucio,auu nuuiu extend this liberality to vessels carrying the mail to South American States, and to Central America and Mexico, and would pursue the same policy from our Pacific seaports to foreign seaports on the Pacific. It might be demanded that vessels built for this service should come up to a standard fixed by legislation in tonnage, speed and all other qualities, looking to the possibility of the government requiring them at some other time for war purposes. The right, also, of taking possession of them in such an emergency, should be guarded. I offer these suggestions, believing them worthy of consideration, in all seriousness, affecting all sections and all interests alike. If anything better can be done to direct thecouutry into a course of general proswH ?v?nwAo/Itt fhan T /% pcjll/jr, iiu uiic ?111 uc ujuic jcuuj uiau a. ivj second the plan. In my opinion the District of Columbia should be regarded as the grounds of the national capital, in which the entire people are interested. I do not allude to this to urge generous appropriations to the district, but to 1 raw.the attention of Congress in framing a aw for the government of the district to the nagnificent scale on which the eity was planled by the founders of the government, the