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J w to A Sweet Singer. B boom storm-wearied bird thit seeks the shore Bests on the current of * fav’ring wind, So doth my soul upon the music soar, And leave the shadows of this life behind — So do I, resting on thy heav'nward song, Gain the calm haven where I fain would be, And quite forget the voyage dark and long, And all the tempests beating out at sea. How often in one's thoughts there would arise Vague remnants of a half-forgotten song Some strange unutterable melodies That haply to a higher world belong ! Oh, for thy precious gift, that I might pour '"From my full heart, with sweetness such as vL thine, j thoughts that die in silence evermore, Because no words their meaning can define! rttftl VO I,. III. NO. 1 55. OLD NEK IKK. VOL. VII. NO AIKEN, THURSDAY. DECEMBER 13, 1877. $2.00 per Annum, in Advance. steV ; : - * . aRm Sri. . .;,je ■s. RESIDENT’S MESSAGE. -Citizens of Vie Senate and ITovse of .tatives: With devout gratitu )o to tl.v -Ul Giver of all good. I congratulate vo i at the beginning of your first regular ses- - s -— a you find our country blossed with health and peace and abundant harvests, and with eu- * uuL*ging prospects of an early return of gen eral prosperity. To complete and make permanent the pacifi- o it ion of the country continues to be, and until k T « fully accomplished must remain, the most *■ - 'virtant of all our national interests. The •rnest purpose of good citizens generally to unite then: efforts in this endeavor is avident. I 1, found decided expression in the reso'irions nounced in 1876 by the national conventions oVthe leading political parties of the country. '1 hero was a widespread apprehension ths t tne momentous results in our progress as a nation. in.trK* d by the recent amendments to the con stitution were in imminent Jeopardy , that the g- od un lerstanding which prompted their at option in the interest of a loyal devotion to tlic gi-ner-.! welfare might prove a barren vruce, and that the two sections of the country once eogagi-d in civil strife might be again al most as widely severed and disunited as they were when arrayed in arms against each other. The course to be pursued which, in my m .r-t georo.-i wisest, in me presence ot this e aergency was plainlyindicated in ray inaugural a Idress. It points to the time which all our l>oople desire to see, when a genuine love of our whole country and of all that concerns its true welfare shall supplant the destructive forces of mutual animosity of race* and of sec tional hostility. Opinions have differed widely as to the measures best calculated to secure this great end. This Was to be expected. The measure* adopted by the administration have been subjected to severe and varied criticism. Any course whatever which might have been entered upon would certainly have encoun tered distrust and opp osition. These measures were, in ray judgment, such as were most in harmony with the constitution and with the genius of our people and best adapted in all the circumstances to attain the end in view. Bencfioient results attend ap parent prove that these endeavors are not to he regarded as a mere experiment, and should sustain and encourage ns in our efforts. Al ready in the brief time which has elapsed, the immediate effectiveness, no less than the justice, of the course pursued is demonstrated, and 1 have an abiding faith that time will furnish i<s ample vindication in the minds of the great majority of my fellow-citizens. THE USE OT TROOPS. The discontinuance of the use of the army for the purpose of upholding local government in two States of the Union was no less a con stitutional duty and requirement, under the circumstances existing at the time, than it was a much needed measure for the restora tion of local self-government and the promo lion of national harmony. The withdrawal of the troops from such employment was effected deliberately and with solicitous care for the jieace and good order of society and the pro tection of the property and persons and every right of all classes of citizens. The results that have followed are indeed significant and encouraging. All apprehension of danger from remitting those States to local self-governmot is dispelled, and a most salutatory change in the minds of the people has begun and is in progress in every part of that section of country once the theatre of nnhappi civil strife, substituting for suspicion distrust and aversion, concord, friendship and patriotic attachment to the Union. No un prejudiced mind will deny that the terrible and often fatal collisions winch, for several years have been of frequent Recurrence, and n ave agitated and alarmed the public mind have almost entirely ceased, and that a avrirL of mutual forbearance and hearty national in terest has succeeded. There has been a gen eral re-establishment of order snd of the order ly administration of justice. Instances of re maining lawlessness have become of rare oc- currance; political turmoil and turbulence have disappeared ; nseful industries have been resumed ; public credit in the Southern States has been greatly strengthened, and the en couraging benefits of a revival of commerce between the sections of the country lately em broiled in civil war are fully enjoyed. Such are some of the results already attained upon which the country is to he congratulated. Thev are of such importance that we may with confidence patiently awa't the desired con summation that will surely come with flic n itu- ral progress of events. COLORED PEOPLE’S RMIIT9. It may not he impioper here to say that it ‘■'ionll he our fixed anil uu.dter.iole determina tion u> piotect, by ah available and proper means mi le. - the constitution and the laws, the lately em mcipated race in the enjoyment of their rights and privileges, and I urge upon those to whom heretofore the colored people have sustained the relation of bondmen the wisdom and justice of humane and liberal local legislation with respect to their education and general welfare. A firm adherence to the laws, both national and State, as to the^ civil and political rights of the colored peopld, now ad vanced to and equal citizenship; the im mediate repression and sure punishment by the national and local authorities, within llieii respective jurisdictions, of every instance of lawlessness and violence toward them, is required for the security alike of both races, and is justly demanded by the public opinion of the country and the age. In this way the restoration of harmony and good will and the complete protection of every citizen in the full enjoyment of every constitutional right will surely be attained. * Whatever authority rests with me to this end I shall not hesitate to put forth ; whatever belongs to the. power of Con gress, and the jurisdiction of tlic courts of the Union, they may confidently he jelled upon to provide and perform. And to the Legisla tures, the courts and the executive authorities of the several States I earnestly appeal to secure by adequate, appropriate and seasonable means within their borders these common and r.i ;>rm lights of a united people which loves J- 'ty, abhors oppression and reveres justice, tfs ■*<; objects are very dear to my heart. I shall conti'uv_ most earnestly 4 o strive for their attainment. The cordial cooperation of all classes, of all sections of the country and of both races is required for this purpose, and With these blessings assured, and not other wise, we may safely hope to hand down our free inHHutions of government unimpaired to the generations that wiU succeed us. THE FINANCES. Among the other subjects of great and gen- er ;1 importance to the people in this country, X e oi not be mistaken, I think, in regarding as pre-eminent the policy and measures which are designed to Secure the restoration of the cur rency to th it normal and healthful condition in which, by the resumption of specie payments, our internal trade and foreign commerce may be brought into harmony with the system of exchanges which is based upon the precious metals as the intrinsic money of the world. In the public judgment that this end should he sought and compassed as speedily and as se curely as the resources of the people and the wisdom of their government can accomplish, there is a much greater degree of utiauimity than is found to concur in the specific measures which will bring the country to this desired end, or the rapidity of the steps' by which it can be safely reached. Upon a mo-t anxious and de liberate examination, which I have felt it my duty to give to the subject, I am but the more confirmed in the opinion which 1 expressed in accepting the nomination for the presidency, and again upon my inauguration, that the poli cy of resumption should be pursued by every suitable means, and that no legislation would be wise that should disparage the importance or retard the attainment of that result. I have no disposition, and certainly no right, to question the sincerity or the intelligence of op posing opinions, and would neither conceal nor undervalue the considerable difficulties and even occasional distresses which may at tend the progress of the nation toward this primary condition to its general and perma nent prosperity. I must, however, adhere to my most earnest conviction that any wavering in purpose or unstoadiuess in methods, so far from avoiding or r-ducing the inconvenience inseparable from the transition from an irre deemable to a redeemable paper currency, would only tend to increased and prolonged disturbances in values, and. unless retrieved, must end in serious disorder, dishonor and disaster in the financial affairs of the govern ment and of the people. The mischiefs which I apprehend, ar-d ur gently deprecate, are confined to no class of the people indeed, but seem to me most cer tainly to threaten the industrious masses, whether their occupations are of skilled or common labor. To them, it seems to ni«\ it is of prime importance that their labor should he compensated in money which is in itself fixed in exchangeable value by being irrevocably measured by the labor necessary to its produc tion. This permanent quality of the money of the people is sought for and can only he gained by tne resumption of specie payments. The neb, the speculative, the operating, the money dealing classes may not always feel the mis- hiefs jf, or may find casual profits in a vari able currency ; but the misfortunes of such a currency to those who are paid salaries or wages are inevitable and remediless. THE COINAGE. Closely connected with this general subject of the resumption of specie payment is one of subordinate, but still of grave importance. I mean the readjustment of our coinage system by the renewal of the silver dollar as an ele ment in our specie currency, endowed by legis lation with the quality of a legal tender to a greater or less extent. As there is no doubt of the power of Congress under the constitution to coin money and regulate the value thereof, and as this power covers the whole range of authority applicable to the metal, the rated value, and the legal tender quality which shall be adopted for the coinage, the considerations which should induce or discourage a particular measure connected with the coinage belong clearly to the province of legislative discretion and of public expediency. Without intruding npon this province of legislation in the least, I have yet thought the subject of such critical importance in the actual condition of onr af fairs, as to present an occasion for the exercise of the duty imposed by the constitution on the President, of recommending to the considera tion of Congress “ s’icli meisures as he shall jndge necessary and expedient." Holding the opinion, as I do, that neither the interests of the government nor of the people of the United States would he promoted by disparaging silver as one of the two precious metals which fur nish the coinage of the world, and that legisla tion which looks to maintaining the volume of intrinsic money to as full a measure of both metals as their relative commercial values will permit, would he neither unjust nor inexpe dient. I uinst ask your indulgence to a brief and definite statement of certain essential fea tures in any snch legislative measure which I feel it my duty to recommend. I do not pro pose to enter the debate, represented on both sides by such able disputants in Congress and before the people and in the press, as to the extent to which the legislation of any one na tion can control tins question even within its own borders against the unwritten laws of trade and the positive laws of other govern ments. The wisdom of Congress in shaping any particular law that may he presented for my approval may wholly supersede the neces sity of my entering into these considerations, and I willingly avoid either vague or intricate inquiries. It is only certain plain and practical traits of such legislation that I desire to recom mend to your attention. In any legislation providing for a silver coin- igc, regulating its value and imparting to it the quality of legal tender, it seems to me of great importance that Congress should not lose sight of its action as operating in a twofold capacity and in two distinct directions. If the United States government wore free from a public debt its legislative dealings with the question of sil ver coinage would he purely sovereign and gov ernmental, under no restraints hut, those of the constitutional power over the public good as affected by the proposed legislation. But in the actual circumstances of the nation, with a vast public debt distributed very widely among our owu citizens, and held in great amounts also abroad, the nature of the silver coinage mea sure as affecting this relation of the government to the holders of the public debt becomes an element, in any proposed legislation, of the highest concern' The obligation of the public lauli transcends all questions of profit or pub lic Hdvantage olherwibC. Its unquestionable maintenance is the dictate as well of the high est expediency as of the most necessary duty, and will ever he carefully guarded by Congress and people alike. The public debt of the United States, to the amount of $72;),000,000 hears interest at the rate of six per cent; and $708,000,000 at the rate of five per cent; and the only way in which the country can be relieved from the payment of these high rates of interest is by advantage ously refunding the indebtedness. Whether the debt is ultimately paid in gold or in silver coin is of but little moment compared with the possible reduction of the interest, one-third by refunding it at such reduced rate. If the United States had the unquestioned right to pay its bonds in silver coin, the little benefit from that process would he greatly overbalanc ed by the injurious effect of such payment, if made or proposed against the honest convic tions of the public creditors. All the bonds that have been issued since Fehruaiy 12, 1873, when gold became the only ultimate legal tend er, metallic currency of the country, are justly payable in gold coin or in coin of eqnal value. Uiiiiug the lime of these issues the only dollar r hat could he or was received by the govern ment in exchange for bonds was the gold dol lar. To require the public creditors to take in repayment any dollar of less commercial value would he regarded by them as a repudiation of the full obligation assumed. The bonds is sued prior to 1873 were issued at a time when the gold dollar was the only coin in circulation or contemplated by either the government or the holders of the bonds, as the coin in which they were to be paid. It is far better to pay these bonds in that coin than to seem to take advantage of the unforscen fall of silver bullion to pay in a new issue of silver coin, thus made so much less valuable. The power of the United States to coin money and to regulate the value thereof ought never to be exercised for the purpose of enabling the government to pay its obligations in a coin of less value than that contemplated by the parties when the bonds were issued. Any attempt to pay the national indebtedness in a coinage of less com mercial value than the money of the world, would involve a violation of (he public faith and work irreparable injury to the public credit. It was the gn at merit of the act of March, 18GI), in strengthening the public credit, that it re moved all doubt as to the purpose of the United States to pay their bonded debt in coin. That act was accepted as a pledge of public faith. The government has derived great benefit from it in the progress thus far made in refunding the public debt at low rates of interest. An adherence to the wise and just policy of an ex act observance of the public faith will enable the government rapidly to reduce the burden of interest on the national debt to an amount ex ceeding $20,000,000 per annum and effect an aggregate saving to tlic United States of more than $300,000,000 before the bonds can he ful- 'T adapting the new silver coinage to the or dinary uses of currency in the every day trans- aetioi'is "of life, and prescribing the quality of legal tender to be assigned to it, a considera tion of tiie first importance should he so to ad just the ratio between the silver and the gold coinage which now constitutes our specie cur rency as to accomplish the desired end of maintaining the circulation of the two metallic currencies and keeping up the volume of the two precious metals as onr intrinsic money. It is a mixed question for scientific reasoning and historical experience to determine how far and by what method a practicable equilibrium can be maintained which will keep both metals in circulation in their appropriate spheres of common use. An absolute equality of com mercial value, free from disturbing fluctuations- is hardly attainable ; and without it an unlimit ed legal tender for private transactions assign ed to both metals would irresistibly tend to drive out of circulation the dearer coinage, and disappoint the principal object proposed by the legislation in view. I apprehend, therefore, that the two conditions of a near approach to equality of commercial value between the gold and silver coinage of the same denomination, and of a limitation of the amounts for which the silver coinage is to he a legal tender, are essential to maintaining both in circulation. If these conditions can be successfully observed, the issue from the mint, of silver dollars, would aff ord material assistance to the com- mu»ity*in the transition to redeemable paper money, and would facilitate the resumption of specie payment and its permanent establish ment. Without these conditions, I fear that only mischief and misfortune would flow from a coinage of silver dollars with the quality of unlimited legal tender, even in private transac tions. Any expectation of temporary ease from an issue of silver coinage to pass as a legal tender at a rate materially above its com mercial value is, I am persuaded, a delusion. Korean I think that there is any substantial distinction between an original issue of silver dollars at a nominal value materially above their commercial value and the restoration of the silver dolalr at a rate which once was hut has ceased to he its commercial value. Cer tainly the issue of our gold coinage, reduced in weight materially below its legal tender value, would not be any the less a present de basement of the coinage by reason of its equal ing or even exceeding in weight a gold coinage which at some past time bad been commercial ly equal to the legal tender value assigned to the new issue. In recommending that the regulation of any silver coinage which may be authorized by Congress should observe these conditions of commercial value and la litod legal tender, I am governed by the feeling that every possible increase should he given to the volume of me- twills* Wt/Wwxw* «*l\i<-»l-» i \ ti Y t V. 1.1* tallic^ money which can bo kept in circulation, sry possi' 1 rocess of resuming specie pay- )p and thereby every possible aid afforded to the iby people in the pi inents. It is becacue of my conviction that a disregard of these conditions would frustr the good results which are desired from I proposed coinage, and embarrass with new i meuts of confusion and nneertainty the hr ness of the country, that I urge upon yonr tent ion these considerations. I respectfr recommend to Congress that in any legislat providing for a silver coinage and imparting it the quality of legal tender there be impresi on the measure a firm provision exempting I public debt heretofore issued and now o standing from payment either of principal interest in any coinage of less value than r present gold coinage of the country. CIVIL SERVICE REFORM. The organization of the civil service of country has for a number of years attrac more and more of public attention. So gene| has become the opinion that the methods admission to it, and the conditions of remi ing in it, are unsound, that both the g political parties have agreed in the most plicit declarations of the necessity of refoi and in the most emphatic demands for it, have fnlly believed these declarations and mauds to be the expression of a sincere viotion of the intelligent masses ef the poo; npon the subject, and that they should racognized and followed by earnest and pro: action on the part of the legislative and exei tive departments of the government. In p suance of the purpose indicated before my cession to office I endeavored to have my o views distinctly nndemtood, and, upon my auguration, my accord with the public opinii was stated in terms believed to be plain ai unambiguous. My experience in the execntil duties has strongly confirmed the belief in tf great advantage the country would find in serving strictly the plan of the constitute which imposes upon the executive the duty and responsibility of the selection of federal officers who, by law, are appointed, elected, and which, in like maimer, assigns the Senate the complete right to advise consent to or to reject the nominations so mai while the House of Representatives stands the public censor of the performance of oftic: duties, with the prerogative of iuvestigatii and prosecution in all cases of dereliction. The blemishes and imperfections in the ci service may, as I think, be traced in most ca: to a practical confusion Of the duties assign to the several departments of the governmei My purpose in this respect has been to retui to the system established by the fundamem law, and to do this with the heartiest operation and most cordial understanding \ the Senate and House of Representatives. The practical difficulties in the selection numerous officers for posts of widely va _ responsibilities and duties are acknowledged be very great. No system can be expected secure absolute freedom from mistakes, the beginning of any attempted change custom is quite likely to be more embarrassgj in this respect than any subsequent period. is here that the constitution seems to me prove its claim to the great wisdom accord^ to it. It gives to the executive the assistant.^ of the knowledge and experience of the Sena| e which, when acting upon nominations as u* which they may be disinterested and impart! judges secures as strong a guarantee of fre ^_ Join from errors of importance as is, perhap „ possible in human affairs. ’ In addition to this, I recognize the public ai j. vantage of making all nominations, as near j v as possible, impersonal, in the sense of heir • free from mere’caprice or favor in the selectio; If’ and in those offices in which special trainir is of greatly increased value. I believe sucl rule as to the tenure of office should obtain may induce men of proper qualifications apply themselves industriously to the task becoming proficient. Bearing these things in mind, I have endi vored to reduce the number of changes in ordinate places usually made upon the chi of the general administration, and shall i heartily co-operate with Congress with the ter systematizing of such meTHtra admission to the public service, and of prom tion within it as may promise to ho most su cessful in making thorough competent efficiency and character the decisive tests these matters. I ask the renewed attention of Congress what has already been done by the civil servii commission appointed in pursuance of the of Congress by my predecessor to prepare i revise the civil service rules. In regard tomui of the departmental service, especially Washington, it may be difficult to organize better system than that, which has thus bo< provided, and it is now being used to a co: siderahle extent under my direction. The coi mission has still a legal existence, although several years no appropriation has been mi for defraying its expenses. Believing that * commission has rendered valuable services will be a most useful agency in improving t administration of the civil service, I respei fully recommend that a suitable nppropriatio: to he immediately available, he made to enahl it to continue its'labors. It is my purpose f transmit to Congress as early as practicable report by the dmirman of the commission a to ask yonr attention to such measures on “ subject as in my opinion will further prumoi the improvement of the civil service OUR FOREIGN RELATIONS. During the past year the United States hs\| continued to maintain peaceful relations wit| foreign powers. The outbreak of war betwt Russia and Turkey, though at one time al tended by grave apprehension as to its tffsq upon other European nations, lias had no ten dency to disturb the amicable relations betwee| the United States and each of the two cor tending powers. An attitude of just and it partial neutrality has been preserved, and am gratified to state, in the midst of their hod tilities, both the Russian and Turkish goven| ment s have shown an earnest desire to adher to the obligations of all treaties with thl United States, and to give due regard to tli| rights of American citizens. By the terms of the treaty defining the right immunities and privileges of consuls betwt Italy and the United States, ratified in 18(1 either government may, after the lapse of years, terminate the existence of the treaty f iviug twelve months’ notice of its intentioi ’he government of Italy, availing itself of thi| faculty, has now given the required notice, am the treaty will, accordingly, end on the 17t of September, 1878. It is understood, howl ever, that the Italian government wishes t renew it, in its general scope, desiring on! certain modifications in some of its articlei In this disposition I concur, and shall bo] that no serious obstacles may intervene to pr vent or delay the negotiation of a satisfactoi treaty. THE GERMAN IMMIGRATION QUESTION. Numerous questions in regard to passpor. naturalization and exemption from militar service have continued to arise in cases oi im migrants from Germany who have returned h their native country. The provisions of tbi treaty of Febrnary 22, 1868, however, havi proved to be so ample and so judicious thaj the legation of the United States at Berlin hai been able to adjust all claims arising under not only without detriment to the amicable re lations existing between the two governments! but, it is believed, without injury or injus tice to duly naturalized American citizens. ll is desirable that the treaty originally made wit the North German Union in 1867 should no> be extended so as to apply equally to all states of the empire of Germany. THE PARIS EXHIBITION. The invitation of the government of France to participate in the exposition of the products of agriculture, industry and the tine arts, to he held at Paris during the coming year, was sub mitted for your consideration at the extra ses sion. It is not doubted that its acceptance by the United States and a well selected exhibition of the products of American industry on that occasion will tend to stimulate international commerce and immigration, as well as to pro mote the traditional friendship between the two countries. ANGLO-AMERICAN EXTRADITION. A question arose some time since as to the proper meaning of the extradition articles of the treaty of 1842 between the United States and Great Britain. Both governments, how ever, are now in accord in the belief that the ? uestion is not one that should he allowed to rnstrate the ends of justice, or to disturb the friendship between the two nations. No serious difficulty has arisen in accomplishing the extradition of criminals when necessary. It is probable that all points of disagreement will in due time be settled, and if need be more explicit declarations be made in a new treaty. INTERNATIONAL TRADEMARKS. A treRty for the protection of trademarks has been negotiated witn Great Britain, which has been submitted to the Senate for its con sideration. MEXICAN AFFAIRS. The revolution which recently occurred in Mexico was followed by the accession of the successful party to power and^the installation of its chief, Gen. Porfirio Diaz, in the presideatisl office. It has been the custom of the United States, when such changes of government have heretofore occurred in Mexico, to recognize and unauthorized acts of unduly zealous sub ordinates, whenever such acts have been bronght to its attention. Nevertheless, such occurrences cannot but tend to excite feelings of annovance, suspicion and resentment, which are greatly to bo deprecated between the re spective subjects and citizens of two friendly powers. THE VENEZUELA AWARD. Much delay, consequent npon accusations of fraud in some of the awards, has occurred in respect to the distribution of the limited amounts received from Venezuela under tne treaty of April 25, 1866, appficable to the awards of the joint commission created by that treaty. So long as these matters are pending in Congress, the executive cannot assume either to pass upon the questions presented oi- ted to the secretary of the treasury by a com mission appointed to examine into the collection of customs duties at the port of New York con tain many snggestions for the modification of the customs laws to which the attention of Congress is invited. THE PUBLIC CREDIT. It is a matter of congratulation that, not- J>f 1 withstanding the severe burdens caused by the b- | war, the public faith with all creditors In . has been preserved, and that as the result of “'ll this pohey the public credit has continuously ! advanced, and our public securities are regard- , ed with the highest fayor in the markets of the Is j world. I trust that no act of the government |e will cast a shadow upon its credit. The progress of refunding the public debt has been rapid and satisfactory. Under the contract existing when I entered upon the dis charge of the duties of my office bonds bearing interest at the rate of 4j^ per centum were be ing rapidly sold, and within three months the aggregate sales of those bonds had reached the sum of $200,000,000. With my sanction the secretary of the treasury entered into a new contract for the sale of four per centum bonds, and within thirty days after the popular sub- rcription for such bonds was opened subscrip tions were had amounting to $75,406,550, which were paid for within ninety days after the date of subscription. By this process, within but little more than one year, the annual interest on the public debt was*reduced in the sum of $3,775,- 000. BONDS FOR OUR SMALL CAPITALISTS. I recommend that suitable provision he made to enable the people to easily convert their say ings into government securities as the best mode in which small savings may be well se cured and yield a moderate interest. It is an object of public policy to retain among our own people the securities of the United States. In this way our country is guarded against their sudden return from foreign countries, caused jhy war or other disturbances beyond onr limits. AMERICAN SHIPPING. The commerce of the United States with for eign nations, and especially the export of do mestic productions, has of late years largely increased, hut the greater portion of this trade is conducted in foreign vessels. The import ance of enlarging our foreign trade, and es pecially by d.rect and speedy interchange with countries on this continent, cannot be ove resti- mated, and it is a matter of great moment that our own shipping interest should receive to the utmost practical extent the benefit of our com merce with other lands. These considerations ere forcibly urged by all the large commercial cities of the country, and public attention is generally and wisely attracted to the solution of the problems they present. It is not doubted that Congress will take them up in the broadest spirit of literality and re spond to the public demand by practical legis lation upon this important subject. to i JVn tBo farJMcert It. i« eji&ir rv requisite sum for the maintenance of the sib- ing fund within the aggregate estimate receipts; while the aggregate of taxes should not he in creased. Amendments might he made to reve nue laws, that would, without diminish ing the revenue, relievo the people from un necessary burdens, /i tax on tea and coffee is shown by the experience not only of our owu country but of other countries to he easily col lected without loss by undervaluation or fraud, and largely borne in the country of production. A tax of ten cents a pound on tea and two cents a pound on coffee would produce a reve nue exceeding $12,006,000, and thus enable Congress to repeal a multitude of annoying taxes yielding a revenue not exceeding that sum. The internal revenue system grew out of the necessities of the war, and most of the leg islation imposing taxes npon domestic products under this system has been repealed. By the substitution of a tax on tea and coffee all forms of internal taxation may he repealed, except that on whisky, spirits, tobacco and beer. At tention is also called to the necessity of enact ing more vigorous laws for the protection of the revenue and for the punishment of frauds and smuggling. This can best be done by ju dicious provisions that will indnee the disclos ure of attempted fraud bv undervaluation and smuggling. All revenne laws should be simple in their provisions and easily understood. So far as practicable the rates of taxation should be in the form of specific duties, and not ad ro/orern,requiring the judgment of experienced men to ascertain values, and exposing the reve- nne officers to the temptation of fraud. CUSTOM HOUSE REFORM. My attention has been called during the re cess of Congress to abuses existiui h etiou of the cu>fc3iqi8,jsnd stre: have been made -*rection by the ex ecutive orders, ^7 - Jmdations submit- THE ARMY. The report of the secretary of war shows that the army has been actively employed dur ing the year, and has rendered very important service in suppressing hostilities in the Indian country and in preserving peace and protecting life and property in the interior as well a* along the Mexican border. A long and arduous came paign has been proseented with final complete success against a portion of the Nez Perces tribe of Indians. A full account of this cam- -oA'srn will he found in the report of the general VXAt> army. It will be seen that in its course several battles were fought, in which a number of gallant officers and men lost their lives. I join with the secretary of war and the general of the army in awarding to the officers and men employed in the long and toilsome pursuit, and in the final capture of these Indians, the honor and praise which is so justly their due. The very serious riots which occurred in sev eral of the States in July last rendered neces- order. In the States of West Virginia, Main land, Pennsylvania and Illinois these disturb ances were so formidable as to defy Hie local and State authorities, and the national executive was called upon, in the mode provided by the constitution and laws, to furnish military aid. i am i n Le able to state that the troops sent in response to tn^aw oaiiu -fnr Hid in tne suppression of domestic violence were ai,ie bv the influence of their presence in the disturbed regions, to preserve the peace and restore order without the use of force. In the discharge of this delicate and important dnty, both officers and men acted with great prudence and courage, and for their services they deserve the thanks of the country. Disturbances along the Rio Grande, in Texas, to which I have already referred, nave ren dered necessary the constant employment of a military force in that vicinity. A fall report of all recent military operations in that quarter has been transmitted to the House of Repre sentatives in answer to a resolution of that body, and it will not, therefore, be necessary to enter into details. I regret to say that these lawless incursions into our territory by armed hands from the Mexican side of the line, for the purpose of robbery, have been of frequent occurrence, and, in spite of the most vigorous efforts of the commander of our forces, the marauders have generally succeeded in escap ing into Mexico with their plunder. In May last I gave orders for the exercise of the ut most vigilance on the part of our troops for the suppression of these raids, and the punish ment of the guilty parties as well as the re capture of property stolen by them. General Ord, commanding in Texas, was directed to in vite the co-operation of the Mexican authori ties in efforts to this end, and to assure them that I was anxious to avoid giving the least offence to Mexico. At the same time lie was directed to give notice of my determination to put an end to the invasion of our territory by lawless bands intent upon the plunder of onr peaceful citizens, even if the effectual punish ment of the outlaws should make the crossing of the border by our troops in their pursuit necessary. It is’believed that this policy has had the effect to check somewhat these depre dations, and that, with a considerable increase of our force upon that frontier, and the estab lishment of several additional military posts along the Rio Grande so as more effectually to gnard that extensive border, peace may be preserved and the lives and property of onr citizens in Texas fu ly protected. Prior to the first day of July last the army was, in accordance with law, reduced to the maximum of twenty-five thousand enlisted men, being a reduction of twenty-five hundred below the force previously authorized. This reduction was made as leoiiired by law entirely from the infantry and artillery branches of the service, without any reduction of the cavalry. Under the law as it now stands it is necessary that the cavalry regiments he recruited to one hundred men in each company for service on the Mexican and Indian frontiers. The neces sary effect of this legislation is to reduce the infantry and artillery arms of Hie service below the number acquired for efficiency, and I concur with the secretary of war in recommending that authority be given to recruit all companies of infantry to at least fifty men, and all batteries of artillery to at least seventy-five men, with power in case of emergency 'to increase the fermer to 103 and the latter to 122 men each. I invite your special attention to the following recommendations of the secretary of war : First—That provision he made for supplying to the army a more abundant and better supply of reading matter. Second—That early action bo taken by Con gress looking to a complete revision aiid rc- publieation of the army regulations. Third—That section 1,258 of the revised statutes, limiting the number of officers on the retired list, be repealed. Fourth—That the claims srising under the act of July 4, 1864, for supplies taken by the army doling tne war, be taken from the offices ol the quartermaster and commissary generals anJ transferred to the Southern claims com mission, or to some other tribunal having more Him and better facilities for their prompt in- vestgation and decision that are possessed by tbeg) offices. Fi'th—That Congress provide for an annuity fam for the families of. deceased soldiers, as recoumended by the paymaster-general of the army NAVY. The report of the secretary of the navy shows that we have six squadrons now engageil in the protiction of our foreign commerce, and other duties lertaining to the naval service. The conditions and operations of the department are also shown. The total expenditures for the fiscal year ending June 30, 1877, were $16,- 077,974.54. There are unpaid claims against the department chargeable to the last year, which are presented to the consideration of Congress by the report of the secre tary. The estimates for the 5scal year commencing July 1, 1878. are 233,234.40, of the sum of $2,314,211 snhjnitted -rCements ’priatioiis 5 July J, drawn oaDer 1, is esti- exclnsive for new buildings, repairs and at the several navy yards. The for the present fisc a) year, conn, 1877*mc $13,592,932.90. The ‘ igjj Xjfrr; treasury from July,,: mffltS-affoFis nrnpP^Tsys^ofaf.jo, of - mate V the first four months of the present fiscal year to have been $4,313,509. THE POSTAL SERVICE. The report of the postmaster general con* tains a full and clear statement of the opera* tions and condition of the postoffice depart* ment. The ordinary revenues of the depart* ment for the fiscal year ending June 30, 1877, including receipts from the money order busi ness and from official stamps and stamped envelopes, amounted to the sum of $27,531,- 585.26. The additional sum of $7,013,000 was realized from appropriaHons from the general treasury for various purposes making the re ceipts from all sources $34,544,885.26. The total expenditures during the fiscal year amounted to $33,486,322.44, leaving an ex cess of total receipts over total expenditures of $1,058,562.82, and an exceso of total expen ditures over ordinary receipts of $5,954,737.18. DeducHng from the total receipts the sum of $63,261.84 received from international money orders of tho preceding fiscal year, and deduct ing from the total expenditures the sum of $1,163,818.20 paid on liabiliHes incurred in the previous fiscal year, the expenditures and re ceipts appertaining to the business of the last fiscal year were as follows: Expenditures $32,322,504.42. Receipts (ordinary, from money order business and from official postage stamps), $27,408,323.42. Excess of expenditures, $4,854,180.42. The ordinary ^revenues of the post-effice de partment for the year ending June 80, 1879 are estimated at an increase of three per centum over those of 1877, making $29,034,098.28, and the expenditures for the same year are’estimat- ed at $30,427,771, leaving an estimated deficen- cv for the vear 1879, of $7,893,672. The ad ditional legislation recommended by the post master-general for improvements of the mail service, and to protect the postal revenues from the abuses practiced under existing laws, is re- ipectfully commended to the careful consider ation of Congress. THE DEPARTMENT OF JUSTICE. The report of the attorney-general contains several suggestions as to the administration of justice, to which I invite your attention. The pressure of business in the Supreme Court and in certain Circuit Courts of the United States is now such that serious delays, to the great in jury and even oppression of suitors occur, and a remedy should be sought for this condition of affairs. Whether it will be found in the plan, briefly sketched in the report, of increasing the number of judges of the circuit courts, and, by means of this addition to the judicial force, of creating an intennediate court of errors and appeals, or whether some other modes can he devised for obviating the difficulti' 1 hich now exist, I leave to your mature consult, ation. THE INDIANS. The present condition of the Indian tribes on the territory of the United States and our re lations with them are fully set forth in the re ports of the secretary of the interior and the commissioner of Indian affairs. After a series of most deplorable conflicts, the successful termination of which, while reflecting honor upon the brave soldiers who accomplished it, cannot lessen onr regret at the occurrence, we are now at peace with all the Indian tribes in our borders. To preserve that peace by a just and humane policy will he the object of our earnest endeavors. Whatever may be said of their characters and savage propensities, of the difficulties of introducing among them the habits of civilized life and the obstacles they have offered to the progress of setUement in certain parts of the country, the Indians are certainly, entitled to our sympathy and to a conscientious respect on oux part for their claims upon onr sense of justice. They were the aboriginal occupants of the land we now possess. They have been driven from place to place. The purchase money paid to them, in some cases for what they called their own, has still left them poor, in many instances. When they had settled down upon land assigned to them by compact, and began to support themselves by their own labor, they were rudely jostled off and thrust into the wilderness again. Many, if not most of our Indian wars have had their origin in broken promises and acts of iujusHce upon our part, and the advance of the Indians in civiliza tion has been slow, because the treatment they received did not permit it to be faster and more 0 cnar 4 ]. We cannot expect them to improve and to follow unless we keep faith with them in respecUng the ngnts they possess, and nnless, instead of depriving them of their opportunities, we lend them a helping hand. I cordially approve the policy regard ing the management of Indian affairs outlined in the reports of the secretary of the interior and of the commissioner of Indian affairs. The faithful performance of our promises is the first condition of a good understanding with the Indian. I cannot too urgently recommend to Congress that prompt and liberal provision be made for the conscientious fulfillment of all engagements entered into by the government with Indian tribes. To Withhold the means necessary for the performance of a promise is always false economy, and is apt to prove dis astrous; in its consequence. Especial care is recommended to provide for Indians settled on their reservations, cattle and agricultural implements, to aid them in whatever efforts they may make to support themselves, and by the establishment and maintenance of schools to bring them under the control of civilized in fluence. I see no reason why Indians who can give satisfactory proof of having, by their own labor, supported their families for a number of years, and who are willing to detach them selves from their tribal relations, should not he admitted to the benefit of the homestead act snd the privileges of citizenship, and I recom mend the passage of a law to that effect. It will be an act of justice as well as a measure of encouragement. Earnest efforts are being made to purify the Indian service, so that every dollar appro priated by Congress shall redound to the bene fit of the*Indians as intended. Those efforts will have my firm support. With an improved service and every possible encouragement held out to the Indiana to better their condition and to elevate themselves in the scale of civiliza tion, we may hope to accomplish at the same time a good”work for them and for ourselves, DEPREDATIONS ON GOVERNMENT TIMBER. I invite the attention of Congress to the im portance of the statements and suggestions made by the secretary of the interior concerning the depredations committed upon the timber lands of the United States, and the necessity for the preservation of forests. It is believed that the measures taken in pursuance of exist ing law to arrest these depredations will he en tirely successful if Congress by an appropriation for that purpose, renders their continued en forcement possible. The experience ef other nations teaches us that a country cannot be stripped of its forests with impunity, and we shall expose ourselves to the gravest conse quences unless the wasteful and improvident manner in which the forests in Hie United States are destroyed he effectually checked. I earnestly recommend that the measures sug gested by the secretary of the interior for Hie suppression of depredations on the public tim ber lauds of tho United States, for the selling of timber from the public lands, and for the preservation of forests, be embodied in a law, and that, considering the urgent necessity of enahlingfthe people of certain States and Terri tories to purchase timber from the public lauds n a legal maimer, which at present they cannot do, such a law be passed without unavoidable delay. UNSALABLE GOVERNMENT LANDS. I won’d also call attention of Congress to statements made by the secretary of the in terior concerning the disposition tliai might be made of the desert lands not irrigated west of the one hundredth meridian. These lands are practically unsalable under existing laws, and the suggestion is worthy of consideration that a system of leasehold tenure would make them a source of profit to the United States, while at the same time legalizing the business of cattle raising, which is at present carried on upon them. AGRICULTURAL AFFAIRS. The report of the commissioner of agriculture contains the gratifying announcement of the extraordinary success which has rewarded the agricultural industry of the country for the past year. With the fair prices which obtain for the products of the soil, especially for the surplus which our people have to export, we may confidently turn to this as the most im portant of all our resources for the revival of the depressed industries of the country. The report shows onr agricultural progress duri. g the year, and contains a statement of the work done by this department for the advancement of agricultural industry upon which the pros perity of our people so largely depends. Mat ters of information are included of groat inter est to all who seek,by the experience of others, to improve their own methods of cultivation. The efforts of the department to increase the probation eiamported articles of consumption will, it is hoped, '* -wove the demand for labor ' snd which habitual use has made necessary in our domestic every day life. THE INTERNATIONAL EXHIBITION. The board on behalf of the United States exe cutive departments at the internaUonal exhi- biUon of 1876 has concluded its labors. The final report of the board was transmitted to Congress by the President near the close of the last session. As these papers are understood to contain interesUng and valuable information and will constitute the only report emanating from the government on the subject of the ex hibition, I invite attention to the matter and recommend that the report be published for general information. DISTRICT OF COLUMBIA. Congress is empowered by the constitution with the authority of exclusive legislation over the District of Columbia, in which the seat of g overnment of the nation is located. The in vests of the district having no direct repre- sention in Congress, are entiUed to especial consideration and care at the hands of the general government. The capital of the United States belongs to the nation, and it. is natural that the American people should take pride in the seat of their national government, and de sire it to be an ornament to the country. Much has been done to render it healthful,convenient and attractive, but much remains to be done, which its permanent inhabitants are not able and ought not to be expected to do. To im pose upon them a large proportion of the cost required for public improvements, which are in a great measure planned and executed for the convenience of the government, and of the many thousands of visitors from all parts of the country who temporarily reside in the capital of the nation, is an evident injustice. Special attention is asked by the commissioners of the district in their report, which is here with transmitted, to the importance of a per manent adjustment by Congress of the finan cial relations between the United States and the district, involving the regular annual con tribution by the United States of its just pro portion of the District government and of the outlay for all needed public improvements, and such measure of relief from the burden of taxa tion now resting on the people of the District as in the wisdom of Congress may be deemed just. POPULAR EDUCATION. The wisdom of legislation upon the part of Congress in aid of the States for the education of the whole people in those branches of study which are taught in the common schools of the country is no longer a question. The intelli gent judgment of the country goes still further, regarding it as also both constitutional and ex pedient for the general government to extend to technical and higher education snch aid as is deemed essential to the general welfare, and to onr due prominence among the enlightened and cultured nations of the world. The ulU- mate setHement of all qnesHons of the future, whether of administration or finance, or of true naHonality of sentiment, depends upon the virtue and intelligence of the people. It is vain to hope for the success of a free govern ment without the means of insuring the intel ligence of those who are the source of power. No less than one-seventh of the entire voting population of onr country are yet unable to read and write. It is encouraging to observe in connection with the growth of fraternal feeling in those States in which slavery, for merly existed, evidences of interest in univer- supplomenting with national aid, the local systems of education in those States and in all the States. Having already invited your attention to the needs of the District of Columbia, with respect to its public school system, I here add that I believe it desirable, not so much much with ref erence to the local wants ©f the District, but to the great and lasting berefits of the entire country that this system sifould be crowned with a university in all respects in keeping with the national capitol, ana thereby realize the cherished Ifopes of Washington on this subject. I also earnestly commend the request of the regents of the Smithsonian Institution that an adequate appropriation be made for the establishment and conducting of a national museum under their supervision. The request of providing for the preservaUon and growth of the library of Congress is also one of na- ttouBi importance. As the depository of all copyright publications and records this library has outgrown tne piuTlcnous for its accom- modarion, and the erecHon on such a site as the judgment,of Congress may approve, of a fire-proof library building to preserve the treasures and enlarge the usefulness of this valuable collecHon is recommended. I recom mend also such legislation as will render avail able and efficient for the purpose of instruction, so far as is consistent with the public service, the cabinets or museums of invention, of surgery, of educaUon and of agriculture and other collections, the property of the national government. The capital of the nation should be some thing more than a mere political center. We should avail onrselves of all the opportuniUes which Providence has here placed at our com mand, to promote the general intelligence of the people and increase the conditions most favorable to the success and perpetuity of our institutions. December 3, 1877. R. B. IIAYE8. The Portland (Maine) Argue, of the 6th says: “ A well-to-do farmer, named William Weetoott, living at Gor ham, while at work about two.weeks ago, in the field, was suddenly taken with a strange and fearfnl pain in tho region of the liver, which soon after began to swell, distending his stomach to an alarming degree. Drs. Bnzzell and Thompson were called, and for a week tried their best to alleviate his suf ferings and restore the liver to a normal condition. Their efforts, however, were, in vain, and last Wednesday Mr. West- cott died in horrible agony. At a post mortem examination the unnatural liver was taken out, and found U^wrigh twelve pounds, or about four times as much as the liver in its normal stare. and advancet eventually res’*’ i of the cou ^ t -lO-MreUcu *ple products The Navy Department, The secretary of the navy, in his annual re port, gives the number of vessels in the navy as follows: Sixty-seven steam and twenty- three sailing vessels, twenty-three iren- cl&ds, two torpedo, one ferry and twenty- six tog boats. The report also con tains a statement of tho different squad rons, by whom they are commanded, and a full statement of the condition and strength of the navy, which is considered necessary to enable Congress to adjust appropriaHons to the necessities of the service and tho condition of the treasury. There are twelve iron-clads atcon- veuient places in fresh water, in readiness for active employment when needed. Tne active list of; the navy is composed of 829 officers of the line, 694 officers of the staff, and 249 warrant officers. The retired list com prises 135 officers of the line, 103 officers of the staff, twenty-seven warrant officers, and four professors of mathematics. There were in the service on Hie 24th day of November, 1877. 7,012 enlisted men and boys. NECESSITY FOR AN EFFICIENT NAVY. An effective navy, the report states, is a posi tive necessity, but the main difiicnlty lies in deciding upon the point of efficioncy to which it is expedient and proper to carry it. The leading natiups of Europe have such close politcalrelattms that the fear of disturbing the existing balance of power is constantly com municating itself from one to the other, and, thereby, each influenced to keep itself in readi ness for any military or naval exigency that might arise. Hence the necessity of large standing armies and extensive navies. Bat what they may do or not as regards their in tercourse with each other, whether in peace or in war, does not directly concern us as a nation. Yet it lias such indirect relation to Hie Unite ! .States as one of the great powers of the earth that our own policy must in some degree he in fluenced by theirs.' Our situation, about mid way between Europe and Asia, forbids any im mediate or direct interference by the United States with the affairs of Hie nations possess ing either of those continents ; nor is it reason able to expect that, occupied as the European nations are, and are likely to he for many years to come, \ith questions that seem inseparable fromtheirvelations with each other, they will And it to their interests to adopt an aggressive policy toward tho United States. \Ve may safely adopt such a course, therefore, with reference to our navy as is dictated by our own domestic relations alone, separated an they are, except by commercial intercourse, from those of other nations. In the mechanic arts we are unexcelled. Onr mineral wealth is inexhaustible, and already is j its vast importance recognized in the fact that ' we are supplying American iron to British workshops. The coal fields of; England are rapidly failing on account of their immense depth, while ours are not only of incalculable extent, but near the surface. Everything, in fact, combines to show that we possess a rapid ly growing internal commerce which only needs the fostering care of the goverumeut to secure to it an ultimate development which cannot he surpassed by that of any other nation. Dur ing tho last year the value of this commerce, transported on the various lines of railroads was estimated at $18,000,000,000, and during the present year, in consequence of the in creased product and value of grain, it will greatly exceed that. As our intorual commerce increases beyond our own ipower of consump tion, the excess mast either find a foreign market, or Hie loss falls U|K)n the producer. All commercial nations understand this, and therefore their efforts to secure foreign markets for their exports. The greatness of Great Britain is, iu a considerable measure, owing to the steadiness and consistency of her policy in this regard. There is no iijjlet in any place where the vessels of her mji canUl^^iariue do not penetrate. Even at thff$rssr . iiun, when >• our trade Is slowly reooveripg from its par alysis. and demanding additional means of supplying th© wants of th© thousands of m©n- torious artisans and workmen who are out of employment, her merchant* and capital! * are actively engaged in making our own fore commerce tributary to theirs by forcing ws it dejiendence upon BriUsh vessels for tho tiL*» t portaHon of our surplus productions. snatch the trade of a considerable portion o- * the American continent from onr hands. Brazil exports to England annually over $112,000,009 of her products, for which she receives iu exchange nearly the same amount of imports. The trade is carried on by direct lines of com munication, and in a great measure by steam ships to which large government subsidies are rnid, while for the want of lines of steam otto- munication between our eastern cities and Kk* Provinces, our most expeditious route to B azil is by wav of England, and that conntrv has secured similar advantages to her merchants over ours, although not in the same degree, with regard to the trade all along the eastern and western coasts of Bonth America, as well a» that with China, Japan andAustna. Of the exports from China, more than three times »• •much goes to Great Britain as cornea to the United States, and with the imports the differ ence is sUU greater. The pohey of the Japanese government, induced by influences adverse to our commercial interests, has secured to the English and French lines of steamers almost Re entire trade, while an American Ime of steam vessels from Yokahama to Shanghai has been compelled to withdraw. While our navy is not engaged in commerce, it is its important and necessary ally, it should be at all times ready to funnsh pro tection in whatsoever sea it may be required^ All the nations should understand that we are as ready to afford it this protection as we are to avenge an insult to our national flag. Without foreign commerc© w© must sink into inf ©non tv, and without a navy amply sufficient for Hus protection, all the profits of our surplus pro- due tions will be transferred from theconorjo* our own to those of foreign capitalists. TTiw rewards of our own industry and enterprise belong to ourselves, and w© cannot fully mam- tain our independence without these enjoy ments. The profits of the American agneui- turiats areas much their property as the land which produce them, and those of the laborer and artisan in all the spheres of life should be held in as sacred regard. The government cannot withhold its fostering care from either without detriment to itself. Is onr navy in its present condition sufficient to furmsn tne necessary amount of protection to our com merce? If we consider our commerce at us present stage of development, or are content to leave it to be transported abroad in foreign ships, and thus deprive the American producer of the profits of his labor, it may be sufficient; hat if we are to take the position among the commercial nations to which we are justly en tiUed, if we are to secure to onr own people the right to transport the products of their industry into whatsoever part of the world they may be demanded so that the profits may be retnrned to increase the aggregate of our uational wealth, then, in my opinion, it is not in soon condition. There may be ships enough, u they were all iu proper repair, to increase our squadron to a sufficient size for this purpose. To put them all in repair, however, wonld re quire a larger expenditure than is practical le in the present condition of the treasury, and, probably larger than would be Justifiable at any time, until our revenne from customs shall be snfficienUy increased. As we may ex pect this from a gradual development of com merce, as soon as it occurs, we may gradually carry the navy np to the point of necessary im provement, a point to he decided by the exist ing wants of trade. It is manifestly a duty to keep the navy in such condition as to make it available in Hie future for all purposes for which It maybe designed. Considering it in this light, the estimates for the ensuing year have been made with reference only to ordinary expenditures, such as are absolutely necessary for repairs and limited construction. No new ships are estimated for, because that would in volve an expenditure larger than the receipts of the treasury will be likely to justify. Those now possessed and in progress will be sufficient for all ordinary purposes in time of peace, and if from any emergency not anticipated a larger number of vessels should be demanded, the experience of the late war has proved that we must rely upon our mercantile marine for a snpplv of the material of a navy whenever it is demanded. This merchantile marine depends for its eiteciluencss and extent upon the pro tection given to oommer*a by the government, necessarily increasing with the nmoase of commerce. If we had steam ship lines run ning direcUy from our owu ports to all the leading commercial ports in the world, they would not only increase our revenue but render it more easy to improvise a navy in the event of an unexpected emergency. Those vessels are constructed for speed, and can be •^•‘dy converted to purposes of naval warfare They will increase m number and impoitancc as onr capacity to give naval protection to our com merce increases, and hence we find one ground for the necessity of keeping our navy in a con dition to fnrntsh this protection. ,„•■ DTMlNISHED AGGRESSIVE POWER OF THE NAVY. Further on the secretary says: “The navy iu its present condition, as compared with that of *nv other power, has less aggressive force 'ban at any time during the past third of a r-ntury, except during the war; and less pow er to inflict serious injury npon the commerce of an enemy. Indeed, the fact cannot be con cealed, and ought not to he, for it is well known to other nations that third and even- fourth rates almost without exception are su perior to us in this respect. For some yeai s past^large sums have been exjiended in refit ting a number of vessels of Hie class known as monitors. Perhaps, under the particular con ditions and under certain relations with anoth- oe power, rebuilding them was not unwise, and within and adjacent to the Gnlf of Mexico they could be effectively employed in connection with other vessels, and for purposes it i* not now pertinent to discuss. Apart fro™ these monitors and a considerable amount of mate rial for constmcUon now on hand, we have hut little, comparatively, to show for these large expenditures.” HEAVY ARM»R PLATING DISCOURAGED. The secretary is not inclined to favor the building of heavy arnior-p'.ntod gun-hearing vessels. They are enih-d for little else tti.ui harbor defenses, and may he likened to movable fortifications. And if it shall result that the use of them shall te dispensed with to i-.ake place for improved ships, ranis and tor;**to vessels, then the navy can become sufficiently effective if supplied with fast sailing and fast steaming vessels of different classes, built, as they are now built elsewhere, to serve in time of peace as schools of instruction for onr sea men, and in time of war to destroy the com merce of an enemy. THE ESTIMATES. An appropriation of $4ih»,t)00, to he imme diately available, is recommended for the pur pose of continuing Hie stone dry-dock at Mare island. Attention is called to the Pensacola navy yard, which, in the event of hostilities in the Gulf of Mexico, would become of first im portance. All the Gulf squardon would nacea- sarily resort there for repairs. '1 here is n° good reason why it should not become in the future a building, as well as a repairing yard. The appropriations available for the present fiscal year commencing July 1, 18 7. are $13.- 592,932.90. The whole amount drawn from the treasury from July 1 to Nov. 1, 1877, is $5,343.- 037.30.* Of this amount there is estimated to have been iu the hands of paymasters and agents of the government on Nov. 1, 1877. $»16,528.30, besides $152,000 refunded, mak ing a total of $1,029,528 30, which, deducted from the amount drawn, will show the actual expenditure from Jnlv 1 to Nov. 1, 1877, to have been $4,313,509.10. The estimates for the present fiscal year are $16, 233,234 40, ex clusive of $2,314,231 submitted for new build ings, repairs, and improvements of Hie several navy-yards. In the report of the secretary >>f the navy of Nov. 29, 1870, the estimated amount for pay of the navy for the present fiscal year was $7 000, the computation being based upon t-.- number of officers and men then borne upon the register. Congress, however, bv the act of March 3, 1877, appro priated [only $6,600,000, or $700 000 IcoS than the’ 4 ostiinate. This will necessarily produce a deficiency at the end of tho fiscal year unless Congress shall appropriate tho above amount, the payment of which to the officers and men is so fixed by law that it cannot be evaded. The amount appropriated for deficiency at the extra session of Congress has reference to the last fiscal year tn ling June 30, 1877, and was based upon the amount ascertained to he due upon tho liooKS-of the fourth auditor's office, whereas the defioieii2y-.her3 rofet red to is esti mated for the presonrifiscal year, ending June 30, 1878. , Tire naval academy praise fi-Am the secretary, and *** that other things, - shall be specially educal naval constructors, ’ J ** - after leaving the ‘ an experienced yard./ \ f -j <• *1 1 \ Jf ..a \ on* of ion loition of Javy- m t r THIS PAGE CONTAINS FLAWS AND OTHER DEFECTS WHICH MAY APPEAR ON THE FILM