Since the convening 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 prostration might be indulged in without profit, because as many theories would be advanced as there would be independent writers--those who expressed their own views without borrowing--upon the subject. Without indulging in theories as to the cause of this prostration, therefore, I will call your attention only to the fact, and to some plain questions as to which it would seem there should be no disagreement. During this prostration two essential elements of prosperity have been most abundant--labor and capital. Both have been largely unemployed. Where security has been undoubted, capital has been attainable at very moderate rates. Where labor has been wanted, it has been found in abundance, at cheap rates compared with what--of necessaries and comforts of life--could be purchased with the wages demanded. Two great elements of prosperity, therefore, have not been denied us. A third might be added: Our soil and climate are unequaled, within the limits of any contiguous territory under one nationality, for its variety of products to feed and clothe a people and in the amount of surplus to spare to feed less favored peoples. Therefore, with these facts in view, it seems to me that wise statesmanship, at this session of Congress, would dictate legislation ignoring the past; directing in proper channels these great elements of prosperity to any people. Debt, debt abroad, is the only element that can, with always a sound currency, enter into our affairs to cause any continued depression in the industries and prosperity of our people. A great conflict for national existence made necessary, for temporary purposes, the raising of large sums of money from whatever source attainable. It made it necessary, in the wisdom of Congress--and I do not doubt their wisdom in the premises, regarding the necessity of the times--to devise a system of national currency which it proved to be impossible to keep on a par with the recognized currency of the civilized world. This begot a spirit of speculation involving an extravagance and luxury not required for the happiness or prosperity of a people, and involving, both directly and indirectly, foreign indebtedness. The currency, being of fluctuating value, and therefore unsafe to hold for legitimate transactions requiring money, became a subject of speculation within itself. These two causes, however, have involved us in a foreign indebtedness, contracted in good faith by borrower and lender, which should be paid in coin, and according to the bond agreed upon when the debt was contracted--gold or its equivalent. The good faith of the Government can not be violated toward creditors without national disgrace. But our commerce should be encouraged; American shipbuilding and carrying capacity increased; foreign markets sought for products of the soil and manufactories, to the end that we may be able to pay these debts. Where a new market can be created for the sale of our products, either of the soil, the mine, or the manufactory, a new means is discovered of utilizing our idle capital and labor to the advantage of the whole people. But, in my judgment, the first step toward accomplishing this object is to secure a currency of fixed, stable value; a currency good wherever civilization reigns; one which, if it becomes superabundant with one people, will find a market with some other; a currency which has as its basis the labor necessary to produce it, which will give to it its value. Gold and silver are now the recognized medium of exchange the civilized world over, and to this we should return with the least practicable delay. In view of the pledges of the American Congress when our present legal-tender system was adopted, and debt contracted, there should be no delay--certainly no unnecessary delay--in fixing by legislation a method by which we will return to specie. To the accomplishment of this end I invite your special attention. I believe firmly that there can be no prosperous and permanent revival of business and industries until a policy is adopted--with legislation to carry it out--looking to a return to a specie basis. It is easy to conceive that the debtor and speculative classes may think it of value to them to make so-called money abundant until they can throw 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 in 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 liquidate from realization upon its sale. But admitting that these two classes of citizens are to be benefited 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-tenders to the extent of his liabilities? Than to do this, would it not be safer, for fear of overissues by unscrupulous creditors, to say that all debt obligations are obliterated in the United States, and now we commence anew, each possessing all he has at the time free from incumbrance? These propositions are too absurd to be entertained for a moment by thinking or honest people. Yet every delay in preparation for final resumption partakes of this dishonesty, and is only less in degree as the hope is held out that a convenient season will at last arrive for the good work of redeeming our pledges to commence. It will never come, in my opinion, except by positive action by Congress, or by national disasters which will destroy, for a time at least, the credit of the individual and the State at large. A sound currency might be reached by total bankruptcy and discredit of the integrity 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 confidence, 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 great requisites to this devoutly to be sought for end. There are others which I may touch upon hereafter. A nation dealing in a currency below that of specie in value labors under two great disadvantages: First, having no use for the world's acknowledged medium of exchange, gold and silver, these are driven out of the country because there is no need for their use; second, the medium of exchange in use being of a fluctuating value--for, after all, it is only worth just what it will purchase of gold and silver, metals having an intrinsic value just in proportion to the honest labor it takes to produce them--a larger margin must be allowed for profit by the manufacturer and producer. It is months from the date of production to the date of realization. Interest upon capital must be charged, and risk of fluctuation in the value of that which is to be received in payment added. Hence high prices, acting as a protection to the foreign producer, who receives nothing in exchange for the products of his skill and labor except a currency good, at a stable value, the world over It seems to me that nothing is clearer than that the greater part of the burden of existing prostration, for the want of a sound financial system, falls upon the working man, who must after all produce the wealth, and the salaried man, who superintends and conducts 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 the method of correcting the 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 necessary to a return to specie payments, the first great requisite in a return to prosperity. The legal-tender clause to the law authorizing the issue of currency by the National Government should be repealed, to take effect as to all contracts entered into after a day fixed in the repealing act--not to apply, however, to payments of salaries by Government, or for other expenditures now provided by law to be paid in currency, in the interval pending between repeal and final resumption. Provision should be made by which the Secretary of the Treasury can obtain gold as it may become necessary from time to time from the date when specie redemption commences. To this might and should be added a revenue sufficiently in excess of expenses to insure an accumulation of gold in the Treasury to sustain permanent redemption. I commend this subject to your careful consideration, believing that a 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 the same full protection to bill holders which they have under existing laws. Indeed, I would regard free banking as essential. It would give proper elasticity to the currency. As more currency should be required for the transaction of legitimate business, new banks would be started, and in turn banks would wind up their business when it was found that there was a superabundance of currency. The experience and judgment of the people can best decide just how much currency is required for the transaction of the business of the country. It is unsafe to leave the settlement of this question to Congress, the Secretary of the Treasury, or the Executive. Congress should make the regulation under which banks may exist, but 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 earnestly do I commend it to your attention, that I give it prominence by introducing it at the beginning of this message. During the past year nothing has occurred to disturb the general friendly and cordial relations of the United States with other powers. The correspondence submitted herewith between this Government and its diplomatic representatives, as also with the representatives of other countries, shows a satisfactory condition of all questions between the United States and the most of those countries, and with few exceptions, to which reference is hereafter made, the absence of any points of difference to be adjusted. The notice directed by the resolution of Congress of June 17, 1874, to be given to terminate the convention of July 17, 1858, between the United States and Belgium has been given, and the treaty will accordingly terminate on the 1st day of July, 1875. This convention secured to certain Belgian vessels entering the ports of the United States exceptional privileges which are not accorded to our own vessels. Other features of the convention have proved satisfactory, and have tended to the cultivation of mutually beneficial commercial intercourse and friendly relations between the two countries. I hope that negotiations which have been invited will result in the celebration of another treaty which may tend to the interests of both countries. Our relations with China continue to be friendly. During the past year the fear of hostilities between China and Japan, growing out of the landing of an armed force upon the island of Formosa by the latter, has occasioned 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 by a state of war. In consequence of the part taken by certain citizens of the United States in this expedition, our representatives in those countries have been instructed to impress 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 the great proportion of the Chinese immigrants who come to our shores do not come voluntarily, to make their homes with us and their labor productive of general prosperity, but come under contracts with headmen, who own them almost absolutely. In a worse form does this apply to Chinese women. Hardly a perceptible percentage of them perform any honorable labor, but they are brought for shameful purposes, to the disgrace of the communities where settled and to the great demoralization of the youth of those localities. If this evil practice can be legislated against, it will be my pleasure as well as duty to enforce any regulation to secure so desirable an end. It is hoped that negotiations between the Government of Japan and the treaty powers, looking to the further opening of the Empire and to the removal of various restrictions upon trade and travel, may soon produce the results desired, which can not fail to inure to the benefit of all the parties. Having on previous occasions submitted to the consideration of Congress 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 of the United States in Japan has, in behalf of this Government, received the remainder of the amount due to the United States under the convention of Simonosaki. I submit the propriety of applying the income of a part, if not of 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 familiar with the language of Japan, to act as interpreters and in other capacities connected with the legation and the consulates in that country can not readily be overestimated. The amount awarded to the Government of Great Britain by the mixed commission organized under the provisions of the treaty of Washington in settlement of the claims of British subjects arising from acts committed between April 13, 1861, and April 9, 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 persons 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 the nature referred to in an equitable and satisfactory manner, and to relieve Congress and the Departments from the consideration of these questions. The legislation necessary to extend to the colony of Newfoundland 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 marking 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 that the amount remaining 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 be 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 and commenced its work, and it is to be hoped 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 upon these subjects 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 of wrong. 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, and dated October 28, 1874, it appears that of the 1,017 claims filed on the part of citizens of the United States, 483 had been finally decided and 75 were in the hands of the umpire, leaving 462 to be disposed of; and of the 998 claims filed against the United States, 726 had been finally decided, I was before the umpire, and 271 remained to be disposed of. Since the date of such report 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 devolving on the umpire is particularly laborious, that the commission will be unable to dispose of the entire number of claims pending prior to the 1st 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. The strife in the Argentine Republic is to be 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 neutrality 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 citizens of the United States. Hopes have been entertained that if that Republic could escape both 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 be taken 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 can not be denied. Its duration and the tenacity of its adherence, together with the absence of manifested power of suppression on the part of Spain, can not 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 least, 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 and Spain. I have again to call the attention of Congress to the unsatisfactory condition of the existing laws with reference to expatriation and the 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 or 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 upon to lend their aid and the protection of the United States to persons concerning 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 person 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 intention at any time to return and undertake those duties, to use the claims to citizenship of the United States simply as a shield from the performance of the obligations of a citizen elsewhere. The status of children born of American parents residing in a foreign country, of American women who have married aliens, of American citizens residing abroad where such question is not regulated by treaty, are all sources of frequent difficulty and discussion. Legislation on these and similar questions, and particularly 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 arising from fraudulent naturalization. The United States wisely, freely, and liberally offers its citizenship to all who may come in good faith to reside within its limits on their complying with certain prescribed reasonable and simple formalities and conditions. Among the highest duties of the Government is that to afford firm, sufficient, and equal protection to all its citizens, whether native born or naturalized. Care should be taken that a right carrying with it such support from the Government should not be fraudulently obtained, and should be bestowed only upon full proof of a compliance with the law; and yet frequent instances are brought to the attention of the Government of illegal and fraudulent naturalization and of the unauthorized use of certificates thus improperly obtained. In some cases the fraudulent character 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 obtained where the persons holding them not only were not entitled to be naturalized, but had not even been within the United States 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 representatives of the Government and forwarded 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 passports or in demanding protection of the Government, the fraud sometimes escapes notice, and such certificates are not infrequently used in transactions of business to the deception and injury of innocent parties. Without placing any additional obstacles in the way of the obtainment 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 Salvador; all of which have been duly proclaimed, as has also a declaration with Russia with reference to trade-marks. The report of the Secretary of the Treasury, which by law is made directly to Congress, and forms 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 of the large national debt existing and the obligation to add 1 per cent per annum to the sinking fund, a sum amounting now to over $34,000,000 per annum, I submit whether revenues should not be increased or expenditures 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 rates of taxation and in the number of articles submitted to taxation; the question may well 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 revenue, 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 views previously expressed in this message. He also recommends economy in appropriations; calls attention to the loss of revenue from repealing the tax on tea and coffee, without benefit to the consumer; recommends an increase of 10 cents a gallon on whisky, and, further, that no modification be made in the banking and currency bill passed at the last session of Congress, unless modification should become necessary by reason of the adoption of measures for returning to specie payments. In these recommendations I cordially 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 duties are levied. Those articles which enter into our manufactures and are not produced at home, it seems to me, should be entered free. Those articles of manufacture which we produce a constituent part of, but do not produce the whole, that part which we do not produce should enter free also. I will instance fine wool, dyes, etc. These articles must be imported to form a part of the manufacture of the higher grades of woolen goods. Chemicals used as dyes, compounded in medicines, and used in various ways in manufactures come under 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 tariff upon which increases the cost 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. 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 attention. There is no class of Government employees who are harder worked than the Army--officers and men; none who perform 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: The consolidation of Government arsenals; the restoration of mileage to officers traveling under orders; the exemption of money received from the sale of subsistence stores from being covered into the Treasury; the use of appropriations for the purchase of subsistence stores without waiting for the beginning of the fiscal year for which the appropriation is made; for additional appropriations for the collection of torpedo material; for increased appropriations for the manufacture of arms; for relieving the various States from indebtedness for arms charged to them during the rebellion; for dropping officers from the rolls of the Army without trial for the offense of drawing pay more than once for the same period; for the discouragement of the plan to pay soldiers by cheek, and for the establishment of a professorship of rhetoric and English literature at West Point. The reasons for these recommendations are obvious, and are set forth sufficiently in the reports attached. I also recommend that the status of the staff corps of the Army be fixed, where this has not already been done, so that promotions may be made and vacancies filled as they occur in each grade when reduced below the number to be fixed by law. The necessity for such legislation is specially felt now in the Pay Department. The number of officers in that department is below the number adequate to the performance of the duties required of them by law. The efficiency of the Navy has been largely increased during the last year. Under the impulse of the foreign complications which threatened us at the commencement of the last session of Congress, most of our efficient wooden ships were put in condition for immediate service, and the repairs of our ironclad fleet were pushed with the utmost vigor. The result is that most of these are now in an effective state and need only to be manned and put in commission to go at once into service. Some of the new sloops authorized by Congress are already in commission, and most of the remainder are launched and wait only the completion of their machinery to enable them to take their places as part of our effective force. Two iron torpedo ships have been completed during the last year, and four of our large double-turreted ironclads are now undergoing repairs. When these are finished, everything that is useful of our Navy, as now authorized, will be in condition for service, and with the advance in the science of torpedo warfare the American Navy, comparatively small as it is, will be found at any time powerful for the purposes of a peaceful nation. Much has been accomplished during the year in aid of science and to increase the sum of general knowledge and further the interests of commerce and civilization. Extensive and much-needed soundings have been made for hydrographic purposes and to fix the proper routes of ocean telegraphs. Further surveys of the great Isthmus have been undertaken and completed, and two vessels of the Navy are now employed, in conjunction with those of England, France, Germany, and Russia, in observations connected with the transit of Venus, so useful and interesting to the scientific world. The estimates for this branch of the public service do not differ materially from those of last year, those for the general support of the service being somewhat less and those for permanent improvements at the various stations rather larger than the corresponding estimate made a year ago. The regular maintenance and a steady increase in the efficiency of this most important arm in proportion to the growth of our maritime intercourse and interests is recommended to the attention of Congress. The use of the Navy in time of peace might be further utilized by a direct authorization of the employment of naval vessels in explorations and surveys of the supposed navigable waters of other nationalities on this continent, especially the tributaries of the two great rivers of South America, the Orinoco and the Amazon. Nothing prevents, under existing laws, such exploration, except that expenditures must be made in such expeditions beyond those usually provided for in the appropriations. The field designated is unquestionably one of interest and one capable of large development of commercial interests--advantageous to the peoples reached and to those who may establish relations with them. Education of the people entitled to exercise the right of franchise I regard essential to general prosperity everywhere, and especially so in republics, where birth, education, or previous condition does not enter into account in giving suffrage. Next to the public school, the post-office is the great agent of education over our vast territory. The rapidity with which new sections are being settled, thus increasing the carrying of mails in a more rapid ratio than the increase of receipts, is not alarming. The report of the Postmaster-General herewith attached shows that there was an increase of revenue in his Department in 1873 over the previous year of $1,674,411, and an increase of cost of carrying the mails and paying employees of $3,041,468.91. The report of the Postmaster-General gives interesting statistics of his Department, and compares them with the corresponding statistics of a year ago, showing a growth in every branch of the Department. A postal convention has been concluded with New South Wales, an exchange of postal cards established with Switzerland, and the negotiations pending for several years past with France have been terminated in a convention with that country, which went into effect last August. An international postal congress was convened in Berne, Switzerland, in September last, at which the United States was represented by an officer of the Post-Office Department of much experience and of qualification for the position. A convention for the establishment of an international postal union was agreed upon and signed by the delegates of the countries represented, subject to the approval of the proper authorities of those countries. I respectfully direct your attention to the report of the Postmaster-General and to his suggestions in regard to an equitable adjustment of the question of compensation to railroads for carrying the mails. 
Your attention 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 upon 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 lieutenant-governor in 1872, and calling upon the militia of the State to arm, assemble, and drive from power the usurpers, as he designated the officers of the State government. On the next day I issued my proclamation commanding the insurgents to disperse within five days from the date thereof, and subsequently learned that on that day they had taken forcible possession of the statehouse. Steps 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 the only government in that State for nearly two years; that it has been tacitly acknowledged and acquiesced in as such by Congress, and more than once expressly recognized by me, I regarded it as my clear duty, when legally called upon for that purpose, to prevent its overthrow by an armed mob under pretense of fraud and irregularity in the election of 1872. I have heretofore called the attention of Congress to this subject, stating that on account of the frauds and forgeries committed at said election, and because it appears that the returns thereof were never legally canvassed, it was impossible to tell thereby who were chosen; but from the best sources of information at my command I have always believed that the present State officers received a majority of the legal votes actually cast at that election. I repeat what I said in my special message of February 23, 1873, that in the event of no action by Congress I must continue to recognize the government heretofore recognized by me. I regret to say that with preparations for the late election decided indications appeared in some localities in the Southern States of a determination, by acts of violence and intimidation, to deprive citizens of the freedom of the ballot because of their political opinions. Bands of men, masked and armed, made their appearance; White Leagues and other societies were formed; large quantities of arms and ammunition were imported and distributed to these organizations; military drills, with menacing demonstrations, were held, and with all these murders enough were committed to spread terror among those whose political action was to be suppressed, if possible, by these intolerant and criminal proceedings. In some places colored laborers were compelled to vote according to the wishes of their employers, under threats of discharge if they acted otherwise; and there are too many instances in which, when these threats were disregarded, they were remorselessly executed by those who made them. I understand that the fifteenth amendment to the Constitution was made to prevent this and a like state of things, and the act of May 31, 1870, with amendments, was passed to enforce its provisions, the object of both being to guarantee to all citizens the right to vote and to protect them in the free enjoyment of that right. Enjoined by the Constitution "to take care that the laws be faithfully executed," and convinced by undoubted evidence that violations of said act had been committed and that a widespread and flagrant disregard of it was contemplated, the proper officers were instructed to prosecute the offenders, and troops were stationed at convenient points to aid these officers, if necessary, in the performance of their official duties. Complaints are made of this interference by Federal authority; but if said amendment and act do not provide for such interference under the circumstances as above stated, then they are without meaning, force, or effect, and the whole scheme of colored enfranchisement is worse than mockery and little better than a crime. Possibly Congress may find it due to truth and justice to ascertain, by means of a committee, whether the alleged wrongs to colored citizens for political purposes are real or the reports thereof were manufactured for the occasion. The whole number of troops in the States of Louisiana, Alabama, Georgia, Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, Mississippi, Maryland, and Virginia at the time of the election was 4,082. This embraces the garrisons of all the forts from the Delaware to the Gulf of Mexico. Another trouble has arisen in Arkansas. Article 13 of the constitution of that State (which was adopted in 1868, and upon the approval of which by Congress the State was restored to representation as one of the States of the Union) provides in effect that before any amendments proposed to this constitution shall become a part thereof they shall be passed by two successive assemblies and then submitted to and ratified by a majority of the electors of the State voting thereon. On the 11th of May, 1874, the governor convened an extra session of the general assembly of the State, which on the 18th of the same month passed an act providing for a convention to frame a new constitution. Pursuant to this act, and at an election held on the 30th of June, 1874, the convention was approved, and delegates were chosen thereto, who assembled on the 14th of last July and framed a new constitution, the schedule of which provided for the election of an entire new set of State officers in a manner contrary to the then existing election laws of the State. On the 13th of October, 1874, this constitution, as therein provided, was submitted to the people for their approval or rejection, and according to the election returns was approved by a large majority of those qualified to vote thereon; and at the same election persons were chosen to fill all the State, county, and township offices. The governor elected in 1872 for the term of four years turned over his office to the governor chosen under the new constitution, whereupon the lieutenant-governor, also elected in 1872 for a term of four years, claiming to act as governor, and alleging that said proceedings by which the new constitution was made and a new set of officers elected were unconstitutional, illegal, and void, called upon me, as provided in section 4, Article IV, of the Constitution, to protect the State against domestic violence. As Congress is now investigating the political affairs of Arkansas, I have declined to interfere. The whole subject of Executive interference with the affairs of a State is repugnant to public opinion, to the feelings of those who, from their official capacity, must be used in such interposition, and to him or those who must direct. Unless most clearly on the side of law, such interference becomes a crime; with the law to support it, it is condemned without a heating. I desire, therefore, that all necessity for Executive direction in local affairs may become unnecessary and obsolete. I invite the attention, not of Congress, but of the people of the United States, to the causes and effects of these unhappy questions. Is there not a disposition on one side to magnify wrongs and outrages, and on the other side to belittle them or justify them? If public opinion could be directed to a correct survey of what is and to rebuking wrong and aiding the proper authorities in punishing it, a better state of feeling would be inculcated, and the sooner we would have that peace which would leave the States free indeed to regulate their own domestic affairs. I believe on the part of our citizens of the Southern States--the better part of them--there is a disposition to be law abiding, and to do no violence either to individuals or to the laws existing. But do they do right in ignoring the existence of violence and bloodshed in resistance to constituted authority? I sympathize with their prostrate condition, and would do all in my power to relieve them, acknowledging that in some instances they have had most trying governments to live under, and very oppressive ones in the way of taxation for nominal improvements, not giving benefits equal to the hardships imposed. But can they proclaim themselves entirely irresponsible for this condition? They can not. Violence has been rampant in some localities, and has either been justified or denied by those who could have prevented it. The theory is even raised that there is to be no further interference on the part of the General Government to protect citizens within a State where the State authorities fail to give protection. This is a great mistake. While I remain Executive all the laws of Congress and the provisions of the Constitution, including the recent amendments added thereto, will be enforced with rigor, but with regret that they should have added one jot or tittle to Executive duties or powers. Let there be fairness in the discussion of Southern questions, the advocates of both or all political parties giving honest, truthful reports of occurrences, condemning the wrong and upholding the tight, and soon all will be well. Under existing conditions the negro votes the Republican ticket because he knows his friends are of that party. Many a good citizen votes the opposite, not because he agrees with the great principles of state which separate parties, but because, generally, he is opposed to negro rule. This is a most delusive cry. Treat the negro as a citizen and a voter, as he is and must remain, and soon parties will be divided, not on the color line, but on principle. Then we shall have no complaint of sectional interference. The report of the Attorney-General contains valuable recommendations relating to the administration of justice in the courts of the United States, to which I invite your attention. I respectfully suggest to Congress the propriety of increasing the number of judicial districts in the United States to eleven (the present number being nine) and the creation of two additional judgeships. The territory to be traversed by the circuit judges is so great and the business of the courts so steadily increasing that it is growing more and more impossible for them to keep up with the business requiring 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 either of the other Departments of Government. 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 most beneficial results. It is confidently hoped that a few years more will relieve our frontiers from danger of Indian depredations. I commend the recommendation of the Secretary for the extension of the homestead laws to the Indians and for some sort of Territorial government for the Indian Territory. A great majority of the Indians occupying this Territory are believed yet to be incapable of maintaining their rights against the more civilized and enlightened white man. 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 be ratified by a majority of those affected. The report of the Secretary of the Interior herewith attached gives much interesting statistical information, 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 their 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 services for which they were awarded pensions were in defense of the whole country. The report of the Commissioner of Agriculture herewith contains suggestions of much interest to the general public, and refers to the sly 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 at it, and it may be expected that every civilized nation will be represented. The rules adopted to improve the civil service of the 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 them 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 parties removed are frequently cited as departures from the rules adopted, and the retention of those against whom charges are made by irresponsible persons and without good grounds is also often condemned as a violation of them. Under 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 a 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, as well as to myself, it will be a source of mortification if it is to be 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 attention of Congress. If employment can be 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 a 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 doubt be given by the committee appointed by the last Congress to investigate and report upon this subject. A revival of shipbuilding, and particularly of iron steamship building, is of vast importance to our national prosperity. The United States is now paying over $100,000,000 per annum for freights and passage on foreign ships--to be carried abroad and expended in the employment and support of other peoples--beyond a fair percentage of what should go to foreign vessels, estimating 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 Government in supporting what might usually be termed private enterprise. I would not suggest as a remedy direct subsidy to American steamship lines, but I would suggest the direct offer of ample compensation for carrying the mails between Atlantic Seaboard cities and the Continent on American-owned and American-built steamers, and would extend this liberality to vessels carrying the mails 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 Government requiring them at some time for war purposes. The right also of taking possession of them in such 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 the country into a course of general prosperity, no one will be more ready than I to second the plan. Forwarded herewith will be found the report of the commissioners appointed under an act of Congress approved June 20, 1874, to wind up the affairs of the District government. It will be seen from the report that the net debt of the District of Columbia, less securities on hand and available, is: 
 In addition to this there are claims preferred against the government of the District amounting, in the estimated aggregate reported by the board of audit, to $3,147,787.48, of which the greater part will probably be rejected. This sum can with no more propriety be included in the debt account of the District government than can the thousands of claims against the General Government be included as a portion of the national debt. But the aggregate sum thus stated includes something more than the funded debt chargeable exclusively to the District of Columbia. The act of Congress of June 20, 1874, contemplates an apportionment between the United States Government and the District of Columbia in respect of the payment of the principal and interest of the 3.65 bonds. Therefore in computing with precision the bonded debt of the District the aggregate sums above stated as respects 3.65 bonds now issued, the outstanding certificates of the board of audit, and the unadjusted claims pending before that board should be reduced to the extent of the amount to be apportioned to the United States Government in the manner indicated in the act of Congress of June 20, 1874. I especially invite your attention to the recommendations of the commissioners of the sinking fund relative to the ambiguity of the act of June 20, 1874, the interest on the District bonds, and the consolidation of the indebtedness of the District. I feel much indebted to the gentlemen who consented to leave their private affairs and come from a distance to attend to the business of this District, and for the able and satisfactory manner in which it has been conducted. I am sure their services will be equally appreciated by the entire country. It will be seen from the accompanying full report of the board of health that the sanitary condition of the District is very satisfactory. 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 draw the attention of Congress, in framing a law for the government of the District, to the magnificent scale on which the city was planned by the founders of the Government; the manner in which, for ornamental purposes, the reservations, streets, and avenues were laid out, and the proportion of the property actually possessed by the General Government. I think the proportion of the expenses of the government and improvements to be borne by the General Government, the cities of Washington and Georgetown, and the county should be carefully and equitably defined. In accordance with section 3, act approved June 23, 1874, I appointed a board to make a survey of the mouth of the Mississippi River with a view to determine the best method of obtaining and maintaining a depth of water sufficient for the purposes of commerce, etc.; and in accordance with an act entitled "An act to provide for the appointment of a commission of engineers to investigate and report a permanent plan for the reclamation of the alluvial basin of the Mississippi River subject to inundation," I appointed a commission of engineers. Neither board has yet completed its labors. When their reports are received, they will be forwarded to Congress without delay.
Since the convening 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 prostration might be indulged in without profit, because as many theories would be advanced as there would be independent writers--those who expressed their own views without borrowing--upon the subject. Without indulging in theories as to the because of this prostration, therefore, I will call your attention only to the fact, and to some plain questions as to which it would seem there should be no disagreement. During this prostration two essential elements of prosperity have been most abundant--labor and capital. Both have been largely unemployed. Where security has been undoubted, capital has been attainable at very moderate rates. Where labor has been wanted, it has been found in abundance, at cheap rates compared with what--of necessaries and comforts of life--could be purchased with the wages demanded. Two great elements of prosperity, therefore, have not been denied us. A third might be added: Our soil and climate are unequaled, within the limits of any contiguous territory under one nationality, for its variety of products to feed and clothe a people and in the amount of surplus to spare to feed less favored peoples. Therefore, with these facts in view, it seems to me that wise statesmanship, at this session of Congress, would dictate legislation ignoring the past; directing in proper channels these great elements of prosperity to any people. Debt, debt abroad, is the only element that can, with always a sound currency, enter into our affairs to because any continued depression in the industries and prosperity of our people. A great conflict for national existence made necessary, for temporary purposes, the raising of large sums of money from whatever source attainable. It made it necessary, in the wisdom of Congress--and I do not doubt their wisdom in the premises, regarding the necessity of the times--to devise a system of national currency which it proved to be impossible to keep on a par with the recognized currency of the civilized world. This begot a spirit of speculation involving an extravagance and luxury not required for the happiness or prosperity of a people, and involving, both directly and indirectly, foreign indebtedness. The currency, being of fluctuating value, and therefore unsafe to hold for legitimate transactions requiring money, became a subject of speculation within itself. These two causes, however, have involved us in a foreign indebtedness, contracted in good faith by borrower and lender, which should be paid in coin, and according to the bond agreed upon when the debt was contracted--gold or its equivalent. The good faith of the Government can not be violated toward creditors without national disgrace. But our commerce should be encouraged; American shipbuilding and carrying capacity increased; foreign markets sought for products of the soil and manufactories, to the end that we may be able to pay these debts. Where a new market can be created for the sale of our products, either of the soil, the mine, or the manufactory, a new means is discovered of utilizing our idle capital and labor to the advantage of the whole people. But, in my judgment, the first step toward accomplishing this object is to secure a currency of fixed, stable value; a currency good wherever civilization reigns; one which, if it becomes superabundant with one people, will find a market with some other; a currency which has as its basis the labor necessary to produce it, which will give to it its value. Gold and silver are now the recognized medium of exchange the civilized world over, and to this we should return with the least practicable delay. In view of the pledges of the American Congress when our present legal-tender system was adopted, and debt contracted, there should be no delay--certainly no unnecessary delay--in fixing by legislation a method by which we will return to specie. To the accomplishment of this end I invite your special attention. I believe firmly that there can be no prosperous and permanent revival of business and industries until a policy is adopted--with legislation to carry it out--looking to a return to a specie basis. It is easy to conceive that the debtor and speculative classes may think it of value to them to make so-called money abundant until they can throw 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 in 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 liquidate from realization upon its sale. But admitting that these two classes of citizens are to be benefited 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-tenders to the extent of his liabilities? Than to do this, would it not be safer, for fear of overissues by unscrupulous creditors, to say that all debt obligations are obliterated in the United States, and now we commence anew, each possessing all he has at the time free from incumbrance? These propositions are too absurd to be entertained for a moment by thinking or honest people. Yet every delay in preparation for final resumption partakes of this dishonesty, and is only less in degree as the hope is held out that a convenient season will at last arrive for the good work of redeeming our pledges to commence. It will never come, in my opinion, except by positive action by Congress, or by national disasters which will destroy, for a time at least, the credit of the individual and the State at large. A sound currency might be reached by total bankruptcy and discredit of the integrity 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 confidence, 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 great requisites to this devoutly to be sought for end. There are others which I may touch upon hereafter. A nation dealing in a currency below that of specie in value labors under two great disadvantages: First, having no use for the world's acknowledged medium of exchange, gold and silver, these are driven out of the country because there is no need for their use; second, the medium of exchange in use being of a fluctuating value--for, after all, it is only worth just what it will purchase of gold and silver, metals having an intrinsic value just in proportion to the honest labor it takes to produce them--a larger margin must be allowed for profit by the manufacturer and producer. It is months from the date of production to the date of realization. Interest upon capital must be charged, and risk of fluctuation in the value of that which is to be received in payment added. Hence high prices, acting as a protection to the foreign producer, who receives nothing in exchange for the products of his skill and labor except a currency good, at a stable value, the world over It seems to me that nothing is clearer than that the greater part of the burden of existing prostration, for the want of a sound financial system, falls upon the working man, who must after all produce the wealth, and the salaried man, who superintends and conducts 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 the method of correcting the 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 necessary to a return to specie payments, the first great requisite in a return to prosperity. The legal-tender clause to the law authorizing the issue of currency by the National Government should be repealed, to take effect as to all contracts entered into after a day fixed in the repealing act--not to apply, however, to payments of salaries by Government, or for other expenditures now provided by law to be paid in currency, in the interval pending between repeal and final resumption. Provision should be made by which the Secretary of the Treasury can obtain gold as it may become necessary from time to time from the date when specie redemption commences. To this might and should be added a revenue sufficiently in excess of expenses to insure an accumulation of gold in the Treasury to sustain permanent redemption. I commend this subject to your careful consideration, believing that a 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 the same full protection to bill holders which they have under existing laws. Indeed, I would regard free banking as essential. It would give proper elasticity to the currency. As more currency should be required for the transaction of legitimate business, new banks would be started, and in turn banks would wind up their business when it was found that there was a superabundance of currency. The experience and judgment of the people can best decide just how much currency is required for the transaction of the business of the country. It is unsafe to leave the settlement of this question to Congress, the Secretary of the Treasury, or the Executive. Congress should make the regulation under which banks may exist, but 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 earnestly do I commend it to your attention, that I give it prominence by introducing it at the beginning of this message. During the past year nothing has occurred to disturb the general friendly and cordial relations of the United States with other powers. The correspondence submitted herewith between this Government and its diplomatic representatives, as also with the representatives of other countries, shows a satisfactory condition of all questions between the United States and the most of those countries, and with few exceptions, to which reference is hereafter made, the absence of any points of difference to be adjusted. The notice directed by the resolution of Congress of June 17, 1874, to be given to terminate the convention of July 17, 1858, between the United States and Belgium has been given, and the treaty will accordingly terminate on the 1st day of July, 1875. This convention secured to certain Belgian vessels entering the ports of the United States exceptional privileges which are not accorded to our own vessels. Other features of the convention have proved satisfactory, and have tended to the cultivation of mutually beneficial commercial intercourse and friendly relations between the two countries. I hope that negotiations which have been invited will result in the celebration of another treaty which may tend to the interests of both countries. Our relations with China continue to be friendly. During the past year the fear of hostilities between China and Japan, growing out of the landing of an armed force upon the island of Formosa by the latter, has occasioned uneasiness. It is earnestly hoped, however, that the difficulties arising from this because will be adjusted, and that the advance of civilization in these Empires may not be retarded by a state of war. In consequence of the part taken by certain citizens of the United States in this expedition, our representatives in those countries have been instructed to impress 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 the great proportion of the Chinese immigrants who come to our shores do not come voluntarily, to make their homes with us and their labor productive of general prosperity, but come under contracts with headmen, who own them almost absolutely. In a worse form does this apply to Chinese women. Hardly a perceptible percentage of them perform any honorable labor, but they are brought for shameful purposes, to the disgrace of the communities where settled and to the great demoralization of the youth of those localities. If this evil practice can be legislated against, it will be my pleasure as well as duty to enforce any regulation to secure so desirable an end. It is hoped that negotiations between the Government of Japan and the treaty powers, looking to the further opening of the Empire and to the removal of various restrictions upon trade and travel, may soon produce the results desired, which can not fail to inure to the benefit of all the parties. Having on previous occasions submitted to the consideration of Congress 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 of the United States in Japan has, in behalf of this Government, received the remainder of the amount due to the United States under the convention of Simonosaki. I submit the propriety of applying the income of a part, if not of 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 familiar with the language of Japan, to act as interpreters and in other capacities connected with the legation and the consulates in that country can not readily be overestimated. The amount awarded to the Government of Great Britain by the mixed commission organized under the provisions of the treaty of Washington in settlement of the claims of British subjects arising from acts committed between April 13, 1861, and April 9, 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 persons 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 the nature referred to in an equitable and satisfactory manner, and to relieve Congress and the Departments from the consideration of these questions. The legislation necessary to extend to the colony of Newfoundland 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 marking 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 that the amount remaining 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 be 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 and commenced its work, and it is to be hoped 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 upon these subjects 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 of wrong. 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, and dated October 28, 1874, it appears that of the 1,017 claims filed on the part of citizens of the United States, 483 had been finally decided and 75 were in the hands of the umpire, leaving 462 to be disposed of; and of the 998 claims filed against the United States, 726 had been finally decided, I was before the umpire, and 271 remained to be disposed of. Since the date of such report 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 devolving on the umpire is particularly laborious, that the commission will be unable to dispose of the entire number of claims pending prior to the 1st 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. The strife in the Argentine Republic is to be 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 neutrality 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 citizens of the United States. Hopes have been entertained that if that Republic could escape both 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 be taken 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 can not be denied. Its duration and the tenacity of its adherence, together with the absence of manifested power of suppression on the part of Spain, can not 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 because of some delay. An early settlement, in part at least, 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 and Spain. I have again to call the attention of Congress to the unsatisfactory condition of the existing laws with reference to expatriation and the 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 or 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 upon to lend their aid and the protection of the United States to persons concerning 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 person 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 intention at any time to return and undertake those duties, to use the claims to citizenship of the United States simply as a shield from the performance of the obligations of a citizen elsewhere. The status of children born of American parents residing in a foreign country, of American women who have married aliens, of American citizens residing abroad where such question is not regulated by treaty, are all sources of frequent difficulty and discussion. Legislation on these and similar questions, and particularly 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 arising from fraudulent naturalization. The United States wisely, freely, and liberally offers its citizenship to all who may come in good faith to reside within its limits on their complying with certain prescribed reasonable and simple formalities and conditions. Among the highest duties of the Government is that to afford firm, sufficient, and equal protection to all its citizens, whether native born or naturalized. Care should be taken that a right carrying with it such support from the Government should not be fraudulently obtained, and should be bestowed only upon full proof of a compliance with the law; and yet frequent instances are brought to the attention of the Government of illegal and fraudulent naturalization and of the unauthorized use of certificates thus improperly obtained. In some cases the fraudulent character 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 obtained where the persons holding them not only were not entitled to be naturalized, but had not even been within the United States 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 representatives of the Government and forwarded 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 passports or in demanding protection of the Government, the fraud sometimes escapes notice, and such certificates are not infrequently used in transactions of business to the deception and injury of innocent parties. Without placing any additional obstacles in the way of the obtainment 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 Salvador; all of which have been duly proclaimed, as has also a declaration with Russia with reference to trade-marks. The report of the Secretary of the Treasury, which by law is made directly to Congress, and forms 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 of the large national debt existing and the obligation to add 1 per cent per annum to the sinking fund, a sum amounting now to over $34,000,000 per annum, I submit whether revenues should not be increased or expenditures 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 rates of taxation and in the number of articles submitted to taxation; the question may well 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 revenue, 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 views previously expressed in this message. He also recommends economy in appropriations; calls attention to the loss of revenue from repealing the tax on tea and coffee, without benefit to the consumer; recommends an increase of 10 cents a gallon on whisky, and, further, that no modification be made in the banking and currency bill passed at the last session of Congress, unless modification should become necessary by reason of the adoption of measures for returning to specie payments. In these recommendations I cordially 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 duties are levied. Those articles which enter into our manufactures and are not produced at home, it seems to me, should be entered free. Those articles of manufacture which we produce a constituent part of, but do not produce the whole, that part which we do not produce should enter free also. I will instance fine wool, dyes, etc. These articles must be imported to form a part of the manufacture of the higher grades of woolen goods. Chemicals used as dyes, compounded in medicines, and used in various ways in manufactures come under 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 tariff upon which increases the cost 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. 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 attention. There is no class of Government employees who are harder worked than the Army--officers and men; none who perform 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: The consolidation of Government arsenals; the restoration of mileage to officers traveling under orders; the exemption of money received from the sale of subsistence stores from being covered into the Treasury; the use of appropriations for the purchase of subsistence stores without waiting for the beginning of the fiscal year for which the appropriation is made; for additional appropriations for the collection of torpedo material; for increased appropriations for the manufacture of arms; for relieving the various States from indebtedness for arms charged to them during the rebellion; for dropping officers from the rolls of the Army without trial for the offense of drawing pay more than once for the same period; for the discouragement of the plan to pay soldiers by cheek, and for the establishment of a professorship of rhetoric and English literature at West Point. The reasons for these recommendations are obvious, and are set forth sufficiently in the reports attached. I also recommend that the status of the staff corps of the Army be fixed, where this has not already been done, so that promotions may be made and vacancies filled as they occur in each grade when reduced below the number to be fixed by law. The necessity for such legislation is specially felt now in the Pay Department. The number of officers in that department is below the number adequate to the performance of the duties required of them by law. The efficiency of the Navy has been largely increased during the last year. Under the impulse of the foreign complications which threatened us at the commencement of the last session of Congress, most of our efficient wooden ships were put in condition for immediate service, and the repairs of our ironclad fleet were pushed with the utmost vigor. The result is that most of these are now in an effective state and need only to be manned and put in commission to go at once into service. Some of the new sloops authorized by Congress are already in commission, and most of the remainder are launched and wait only the completion of their machinery to enable them to take their places as part of our effective force. Two iron torpedo ships have been completed during the last year, and four of our large double-turreted ironclads are now undergoing repairs. When these are finished, everything that is useful of our Navy, as now authorized, will be in condition for service, and with the advance in the science of torpedo warfare the American Navy, comparatively small as it is, will be found at any time powerful for the purposes of a peaceful nation. Much has been accomplished during the year in aid of science and to increase the sum of general knowledge and further the interests of commerce and civilization. Extensive and much-needed soundings have been made for hydrographic purposes and to fix the proper routes of ocean telegraphs. Further surveys of the great Isthmus have been undertaken and completed, and two vessels of the Navy are now employed, in conjunction with those of England, France, Germany, and Russia, in observations connected with the transit of Venus, so useful and interesting to the scientific world. The estimates for this branch of the public service do not differ materially from those of last year, those for the general support of the service being somewhat less and those for permanent improvements at the various stations rather larger than the corresponding estimate made a year ago. The regular maintenance and a steady increase in the efficiency of this most important arm in proportion to the growth of our maritime intercourse and interests is recommended to the attention of Congress. The use of the Navy in time of peace might be further utilized by a direct authorization of the employment of naval vessels in explorations and surveys of the supposed navigable waters of other nationalities on this continent, especially the tributaries of the two great rivers of South America, the Orinoco and the Amazon. Nothing prevents, under existing laws, such exploration, except that expenditures must be made in such expeditions beyond those usually provided for in the appropriations. The field designated is unquestionably one of interest and one capable of large development of commercial interests--advantageous to the peoples reached and to those who may establish relations with them. Education of the people entitled to exercise the right of franchise I regard essential to general prosperity everywhere, and especially so in republics, where birth, education, or previous condition does not enter into account in giving suffrage. Next to the public school, the post-office is the great agent of education over our vast territory. The rapidity with which new sections are being settled, thus increasing the carrying of mails in a more rapid ratio than the increase of receipts, is not alarming. The report of the Postmaster-General herewith attached shows that there was an increase of revenue in his Department in 1873 over the previous year of $1,674,411, and an increase of cost of carrying the mails and paying employees of $3,041,468.91. The report of the Postmaster-General gives interesting statistics of his Department, and compares them with the corresponding statistics of a year ago, showing a growth in every branch of the Department. A postal convention has been concluded with New South Wales, an exchange of postal cards established with Switzerland, and the negotiations pending for several years past with France have been terminated in a convention with that country, which went into effect last August. An international postal congress was convened in Berne, Switzerland, in September last, at which the United States was represented by an officer of the Post-Office Department of much experience and of qualification for the position. A convention for the establishment of an international postal union was agreed upon and signed by the delegates of the countries represented, subject to the approval of the proper authorities of those countries. I respectfully direct your attention to the report of the Postmaster-General and to his suggestions in regard to an equitable adjustment of the question of compensation to railroads for carrying the mails. Your attention 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 upon 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 lieutenant-governor in 1872, and calling upon the militia of the State to arm, assemble, and drive from power the usurpers, as he designated the officers of the State government. On the next day I issued my proclamation commanding the insurgents to disperse within five days from the date thereof, and subsequently learned that on that day they had taken forcible possession of the statehouse. Steps 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 the only government in that State for nearly two years; that it has been tacitly acknowledged and acquiesced in as such by Congress, and more than once expressly recognized by me, I regarded it as my clear duty, when legally called upon for that purpose, to prevent its overthrow by an armed mob under pretense of fraud and irregularity in the election of 1872. I have heretofore called the attention of Congress to this subject, stating that on account of the frauds and forgeries committed at said election, and because it appears that the returns thereof were never legally canvassed, it was impossible to tell thereby who were chosen; but from the best sources of information at my command I have always believed that the present State officers received a majority of the legal votes actually cast at that election. I repeat what I said in my special message of February 23, 1873, that in the event of no action by Congress I must continue to recognize the government heretofore recognized by me. I regret to say that with preparations for the late election decided indications appeared in some localities in the Southern States of a determination, by acts of violence and intimidation, to deprive citizens of the freedom of the ballot because of their political opinions. Bands of men, masked and armed, made their appearance; White Leagues and other societies were formed; large quantities of arms and ammunition were imported and distributed to these organizations; military drills, with menacing demonstrations, were held, and with all these murders enough were committed to spread terror among those whose political action was to be suppressed, if possible, by these intolerant and criminal proceedings. In some places colored laborers were compelled to vote according to the wishes of their employers, under threats of discharge if they acted otherwise; and there are too many instances in which, when these threats were disregarded, they were remorselessly executed by those who made them. I understand that the fifteenth amendment to the Constitution was made to prevent this and a like state of things, and the act of May 31, 1870, with amendments, was passed to enforce its provisions, the object of both being to guarantee to all citizens the right to vote and to protect them in the free enjoyment of that right. Enjoined by the Constitution "to take care that the laws be faithfully executed," and convinced by undoubted evidence that violations of said act had been committed and that a widespread and flagrant disregard of it was contemplated, the proper officers were instructed to prosecute the offenders, and troops were stationed at convenient points to aid these officers, if necessary, in the performance of their official duties. Complaints are made of this interference by Federal authority; but if said amendment and act do not provide for such interference under the circumstances as above stated, then they are without meaning, force, or effect, and the whole scheme of colored enfranchisement is worse than mockery and little better than a crime. Possibly Congress may find it due to truth and justice to ascertain, by means of a committee, whether the alleged wrongs to colored citizens for political purposes are real or the reports thereof were manufactured for the occasion. The whole number of troops in the States of Louisiana, Alabama, Georgia, Florida, South Carolina, North Carolina, Kentucky, Tennessee, Arkansas, Mississippi, Maryland, and Virginia at the time of the election was 4,082. This embraces the garrisons of all the forts from the Delaware to the Gulf of Mexico. Another trouble has arisen in Arkansas. Article 13 of the constitution of that State (which was adopted in 1868, and upon the approval of which by Congress the State was restored to representation as one of the States of the Union) provides in effect that before any amendments proposed to this constitution shall become a part thereof they shall be passed by two successive assemblies and then submitted to and ratified by a majority of the electors of the State voting thereon. On the 11th of May, 1874, the governor convened an extra session of the general assembly of the State, which on the 18th of the same month passed an act providing for a convention to frame a new constitution. Pursuant to this act, and at an election held on the 30th of June, 1874, the convention was approved, and delegates were chosen thereto, who assembled on the 14th of last July and framed a new constitution, the schedule of which provided for the election of an entire new set of State officers in a manner contrary to the then existing election laws of the State. On the 13th of October, 1874, this constitution, as therein provided, was submitted to the people for their approval or rejection, and according to the election returns was approved by a large majority of those qualified to vote thereon; and at the same election persons were chosen to fill all the State, county, and township offices. The governor elected in 1872 for the term of four years turned over his office to the governor chosen under the new constitution, whereupon the lieutenant-governor, also elected in 1872 for a term of four years, claiming to act as governor, and alleging that said proceedings by which the new constitution was made and a new set of officers elected were unconstitutional, illegal, and void, called upon me, as provided in section 4, Article IV, of the Constitution, to protect the State against domestic violence. As Congress is now investigating the political affairs of Arkansas, I have declined to interfere. The whole subject of Executive interference with the affairs of a State is repugnant to public opinion, to the feelings of those who, from their official capacity, must be used in such interposition, and to him or those who must direct. Unless most clearly on the side of law, such interference becomes a crime; with the law to support it, it is condemned without a heating. I desire, therefore, that all necessity for Executive direction in local affairs may become unnecessary and obsolete. I invite the attention, not of Congress, but of the people of the United States, to the causes and effects of these unhappy questions. Is there not a disposition on one side to magnify wrongs and outrages, and on the other side to belittle them or justify them? If public opinion could be directed to a correct survey of what is and to rebuking wrong and aiding the proper authorities in punishing it, a better state of feeling would be inculcated, and the sooner we would have that peace which would leave the States free indeed to regulate their own domestic affairs. I believe on the part of our citizens of the Southern States--the better part of them--there is a disposition to be law abiding, and to do no violence either to individuals or to the laws existing. But do they do right in ignoring the existence of violence and bloodshed in resistance to constituted authority? I sympathize with their prostrate condition, and would do all in my power to relieve them, acknowledging that in some instances they have had most trying governments to live under, and very oppressive ones in the way of taxation for nominal improvements, not giving benefits equal to the hardships imposed. But can they proclaim themselves entirely irresponsible for this condition? They can not. Violence has been rampant in some localities, and has either been justified or denied by those who could have prevented it. The theory is even raised that there is to be no further interference on the part of the General Government to protect citizens within a State where the State authorities fail to give protection. This is a great mistake. While I remain Executive all the laws of Congress and the provisions of the Constitution, including the recent amendments added thereto, will be enforced with rigor, but with regret that they should have added one jot or tittle to Executive duties or powers. Let there be fairness in the discussion of Southern questions, the advocates of both or all political parties giving honest, truthful reports of occurrences, condemning the wrong and upholding the tight, and soon all will be well. Under existing conditions the negro votes the Republican ticket because he knows his friends are of that party. Many a good citizen votes the opposite, not because he agrees with the great principles of state which separate parties, but because, generally, he is opposed to negro rule. This is a most delusive cry. Treat the negro as a citizen and a voter, as he is and must remain, and soon parties will be divided, not on the color line, but on principle. Then we shall have no complaint of sectional interference. The report of the Attorney-General contains valuable recommendations relating to the administration of justice in the courts of the United States, to which I invite your attention. I respectfully suggest to Congress the propriety of increasing the number of judicial districts in the United States to eleven (the present number being nine) and the creation of two additional judgeships. The territory to be traversed by the circuit judges is so great and the business of the courts so steadily increasing that it is growing more and more impossible for them to keep up with the business requiring 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 either of the other Departments of Government. 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 most beneficial results. It is confidently hoped that a few years more will relieve our frontiers from danger of Indian depredations. I commend the recommendation of the Secretary for the extension of the homestead laws to the Indians and for some sort of Territorial government for the Indian Territory. A great majority of the Indians occupying this Territory are believed yet to be incapable of maintaining their rights against the more civilized and enlightened white man. 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 be ratified by a majority of those affected. The report of the Secretary of the Interior herewith attached gives much interesting statistical information, 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 their 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 services for which they were awarded pensions were in defense of the whole country. The report of the Commissioner of Agriculture herewith contains suggestions of much interest to the general public, and refers to the sly 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 at it, and it may be expected that every civilized nation will be represented. The rules adopted to improve the civil service of the 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 them 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 parties removed are frequently cited as departures from the rules adopted, and the retention of those against whom charges are made by irresponsible persons and without good grounds is also often condemned as a violation of them. Under 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 a 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, as well as to myself, it will be a source of mortification if it is to be 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 attention of Congress. If employment can be 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 a 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 doubt be given by the committee appointed by the last Congress to investigate and report upon this subject. A revival of shipbuilding, and particularly of iron steamship building, is of vast importance to our national prosperity. The United States is now paying over $100,000,000 per annum for freights and passage on foreign ships--to be carried abroad and expended in the employment and support of other peoples--beyond a fair percentage of what should go to foreign vessels, estimating 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 Government in supporting what might usually be termed private enterprise. I would not suggest as a remedy direct subsidy to American steamship lines, but I would suggest the direct offer of ample compensation for carrying the mails between Atlantic Seaboard cities and the Continent on American-owned and American-built steamers, and would extend this liberality to vessels carrying the mails 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 Government requiring them at some time for war purposes. The right also of taking possession of them in such 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 the country into a course of general prosperity, no one will be more ready than I to second the plan. Forwarded herewith will be found the report of the commissioners appointed under an act of Congress approved June 20, 1874, to wind up the affairs of the District government. It will be seen from the report that the net debt of the District of Columbia, less securities on hand and available, is: In addition to this there are claims preferred against the government of the District amounting, in the estimated aggregate reported by the board of audit, to $3,147,787.48, of which the greater part will probably be rejected. This sum can with no more propriety be included in the debt account of the District government than can the thousands of claims against the General Government be included as a portion of the national debt. But the aggregate sum thus stated includes something more than the funded debt chargeable exclusively to the District of Columbia. The act of Congress of June 20, 1874, contemplates an apportionment between the United States Government and the District of Columbia in respect of the payment of the principal and interest of the 3.65 bonds. Therefore in computing with precision the bonded debt of the District the aggregate sums above stated as respects 3.65 bonds now issued, the outstanding certificates of the board of audit, and the unadjusted claims pending before that board should be reduced to the extent of the amount to be apportioned to the United States Government in the manner indicated in the act of Congress of June 20, 1874. I especially invite your attention to the recommendations of the commissioners of the sinking fund relative to the ambiguity of the act of June 20, 1874, the interest on the District bonds, and the consolidation of the indebtedness of the District. I feel much indebted to the gentlemen who consented to leave their private affairs and come from a distance to attend to the business of this District, and for the able and satisfactory manner in which it has been conducted. I am sure their services will be equally appreciated by the entire country. It will be seen from the accompanying full report of the board of health that the sanitary condition of the District is very satisfactory. 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 draw the attention of Congress, in framing a law for the government of the District, to the magnificent scale on which the city was planned by the founders of the Government; the manner in which, for ornamental purposes, the reservations, streets, and avenues were laid out, and the proportion of the property actually possessed by the General Government. I think the proportion of the expenses of the government and improvements to be borne by the General Government, the cities of Washington and Georgetown, and the county should be carefully and equitably defined. In accordance with section 3, act approved June 23, 1874, I appointed a board to make a survey of the mouth of the Mississippi River with a view to determine the best method of obtaining and maintaining a depth of water sufficient for the purposes of commerce, etc.; and in accordance with an act entitled "An act to provide for the appointment of a commission of engineers to investigate and report a permanent plan for the reclamation of the alluvial basin of the Mississippi River subject to inundation," I appointed a commission of engineers. Neither board has yet completed its labors. When their reports are received, they will be forwarded to Congress without delay.
since the convening 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 prostration might be indulged in without profit because as many theories would be advanced as there would be independent writers those who expressed their own views without borrowing upon the subject without indulging in theories as to the because of this prostration therefore i will call your attention only to the fact and to some plain questions as to which it would seem there should be no disagreement during this prostration two essential elements of prosperity have been most abundant labor and capital both have been largely unemployed where security has been undoubted capital has been attainable at very moderate rates where labor has been wanted it has been found in abundance at cheap rates compared with what of necessaries and comforts of life could be purchased with the wages demanded two great elements of prosperity therefore have not been denied us a third might be added our soil and climate are unequaled within the limits of any contiguous territory under one nationality for its variety of products to feed and clothe a people and in the amount of surplus to spare to feed less favored peoples therefore with these facts in view it seems to me that wise statesmanship at this session of congress would dictate legislation ignoring the past directing in proper channels these great elements of prosperity to any people debt debt abroad is the only element that can with always a sound currency enter into our affairs to because any continued depression in the industries and prosperity of our people a great conflict for national existence made necessary for temporary purposes the raising of large sums of money from whatever source attainable it made it necessary in the wisdom of congress and i do not doubt their wisdom in the premises regarding the necessity of the times to devise a system of national currency which it proved to be impossible to keep on a par with the recognized currency of the civilized world this begot a spirit of speculation involving an extravagance and luxury not required for the happiness or prosperity of a people and involving both directly and indirectly foreign indebtedness the currency being of fluctuating value and therefore unsafe to hold for legitimate transactions requiring money became a subject of speculation within itself these two causes however have involved us in a foreign indebtedness contracted in good faith by borrower and lender which should be paid in coin and according to the bond agreed upon when the debt was contracted gold or its equivalent the good faith of the government can not be violated toward creditors without national disgrace but our commerce should be encouraged american shipbuilding and carrying capacity increased foreign markets sought for products of the soil and manufactories to the end that we may be able to pay these debts where a new market can be created for the sale of our products either of the soil the mine or the manufactory a new means is discovered of utilizing our idle capital and labor to the advantage of the whole people but in my judgment the first step toward accomplishing this object is to secure a currency of fixed stable value a currency good wherever civilization reigns one which if it becomes superabundant with one people will find a market with some other a currency which has as its basis the labor necessary to produce it which will give to it its value gold and silver are now the recognized medium of exchange the civilized world over and to this we should return with the least practicable delay in view of the pledges of the american congress when our present system was adopted and debt contracted there should be no delay certainly no unnecessary delay in fixing by legislation a method by which we will return to specie to the accomplishment of this end i invite your special attention i believe firmly that there can be no prosperous and permanent revival of business and industries until a policy is adopted with legislation to carry it out looking to a return to a specie basis it is easy to conceive that the debtor and speculative classes may think it of value to them to make money abundant until they can throw 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 in doubt the value of the 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 liquidate from realization upon its sale but admitting that these two classes of citizens are to be benefited 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 to the extent of his liabilities than to do this would it not be safer for fear of overissues by unscrupulous creditors to say that all debt obligations are obliterated in the united states and now we commence anew each possessing all he has at the time free from incumbrance these propositions are too absurd to be entertained for a moment by thinking or honest people yet every delay in preparation for final resumption partakes of this dishonesty and is only less in degree as the hope is held out that a convenient season will at last arrive for the good work of redeeming our pledges to commence it will never come in my opinion except by positive action by congress or by national disasters which will destroy for a time at least the credit of the individual and the state at large a sound currency might be reached by total bankruptcy and discredit of the integrity 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 confidence 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 great requisites to this devoutly to be sought for end there are others which i may touch upon hereafter a nation dealing in a currency below that of specie in value labors under two great disadvantages first having no use for the world acknowledged medium of exchange gold and silver these are driven out of the country because there is no need for their use second the medium of exchange in use being of a fluctuating value for after all it is only worth just what it will purchase of gold and silver metals having an intrinsic value just in proportion to the honest labor it takes to produce them a larger margin must be allowed for profit by the manufacturer and producer it is months from the date of production to the date of realization interest upon capital must be charged and risk of fluctuation in the value of that which is to be received in payment added hence high prices acting as a protection to the foreign producer who receives nothing in exchange for the products of his skill and labor except a currency good at a stable value the world over it seems to me that nothing is clearer than that the greater part of the burden of existing prostration for the want of a sound financial system falls upon the working man who must after all produce the wealth and the salaried man who superintends and conducts 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 the method of correcting the 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 necessary to a return to specie payments the first great requisite in a return to prosperity the clause to the law authorizing the issue of currency by the national government should be repealed to take effect as to all contracts entered into after a day fixed in the repealing act not to apply however to payments of salaries by government or for other expenditures now provided by law to be paid in currency in the interval pending between repeal and final resumption provision should be made by which the secretary of the treasury can obtain gold as it may become necessary from time to time from the date when specie redemption commences to this might and should be added a revenue sufficiently in excess of expenses to insure an accumulation of gold in the treasury to sustain permanent redemption i commend this subject to your careful consideration believing that a 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 the same full protection to bill holders which they have under existing laws indeed i would regard free banking as essential it would give proper elasticity to the currency as more currency should be required for the transaction of legitimate business new banks would be started and in turn banks would wind up their business when it was found that there was a superabundance of currency the experience and judgment of the people can best decide just how much currency is required for the transaction of the business of the country it is unsafe to leave the settlement of this question to congress the secretary of the treasury or the executive congress should make the regulation under which banks may exist but 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 earnestly do i commend it to your attention that i give it prominence by introducing it at the beginning of this message during the past year nothing has occurred to disturb the general friendly and cordial relations of the united states with other powers the correspondence submitted herewith between this government and its diplomatic representatives as also with the representatives of other countries shows a satisfactory condition of all questions between the united states and the most of those countries and with few exceptions to which reference is hereafter made the absence of any points of difference to be adjusted the notice directed by the resolution of congress of june 17 1874 to be given to terminate the convention of july 17 1858 between the united states and belgium has been given and the treaty will accordingly terminate on the 1st day of july 1875 this convention secured to certain belgian vessels entering the ports of the united states exceptional privileges which are not accorded to our own vessels other features of the convention have proved satisfactory and have tended to the cultivation of mutually beneficial commercial intercourse and friendly relations between the two countries i hope that negotiations which have been invited will result in the celebration of another treaty which may tend to the interests of both countries our relations with china continue to be friendly during the past year the fear of hostilities between china and japan growing out of the landing of an armed force upon the island of formosa by the latter has occasioned uneasiness it is earnestly hoped however that the difficulties arising from this because will be adjusted and that the advance of civilization in these empires may not be retarded by a state of war in consequence of the part taken by certain citizens of the united states in this expedition our representatives in those countries have been instructed to impress 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 the great proportion of the chinese immigrants who come to our shores do not come voluntarily to make their homes with us and their labor productive of general prosperity but come under contracts with headmen who own them almost absolutely in a worse form does this apply to chinese women hardly a perceptible percentage of them perform any honorable labor but they are brought for shameful purposes to the disgrace of the communities where settled and to the great demoralization of the youth of those localities if this evil practice can be legislated against it will be my pleasure as well as duty to enforce any regulation to secure so desirable an end it is hoped that negotiations between the government of japan and the treaty powers looking to the further opening of the empire and to the removal of various restrictions upon trade and travel may soon produce the results desired which can not fail to inure to the benefit of all the parties having on previous occasions submitted to the consideration of congress 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 of the united states in japan has in behalf of this government received the remainder of the amount due to the united states under the convention of simonosaki i submit the propriety of applying the income of a part if not of 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 familiar with the language of japan to act as interpreters and in other capacities connected with the legation and the consulates in that country can not readily be overestimated the amount awarded to the government of great britain by the mixed commission organized under the provisions of the treaty of washington in settlement of the claims of british subjects arising from acts committed between april 13 1861 and april 9 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 persons 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 the nature referred to in an equitable and satisfactory manner and to relieve congress and the departments from the consideration of these questions the legislation necessary to extend to the colony of newfoundland 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 marking 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 that the amount remaining 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 be 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 and commenced its work and it is to be hoped 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 upon these subjects 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 of wrong 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 and dated october 28 1874 it appears that of the claims filed on the part of citizens of the united states 483 had been finally decided and 75 were in the hands of the umpire leaving 462 to be disposed of and of the 998 claims filed against the united states 726 had been finally decided i was before the umpire and 271 remained to be disposed of since the date of such report 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 devolving on the umpire is particularly laborious that the commission will be unable to dispose of the entire number of claims pending prior to the 1st 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 the strife in the argentine republic is to be 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 neutrality 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 citizens of the united states hopes have been entertained that if that republic could escape both 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 be taken 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 can not be denied its duration and the tenacity of its adherence together with the absence of manifested power of suppression on the part of spain can not be controverted and may make some positive steps on the part of other powers a matter of 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 because of some delay an early settlement in part at least 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 and spain i have again to call the attention of congress to the unsatisfactory condition of the existing laws with reference to expatriation and the 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 or 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 upon to lend their aid and the protection of the united states to persons concerning 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 person 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 intention at any time to return and undertake those duties to use the claims to citizenship of the united states simply as a shield from the performance of the obligations of a citizen elsewhere the status of children born of american parents residing in a foreign country of american women who have married aliens of american citizens residing abroad where such question is not regulated by treaty are all sources of frequent difficulty and discussion legislation on these and similar questions and particularly 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 arising from fraudulent naturalization the united states wisely freely and liberally offers its citizenship to all who may come in good faith to reside within its limits on their complying with certain prescribed reasonable and simple formalities and conditions among the highest duties of the government is that to afford firm sufficient and equal protection to all its citizens whether native born or naturalized care should be taken that a right carrying with it such support from the government should not be fraudulently obtained and should be bestowed only upon full proof of a compliance with the law and yet frequent instances are brought to the attention of the government of illegal and fraudulent naturalization and of the unauthorized use of certificates thus improperly obtained in some cases the fraudulent character 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 obtained where the persons holding them not only were not entitled to be naturalized but had not even been within the united states 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 representatives of the government and forwarded 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 passports or in demanding protection of the government the fraud sometimes escapes notice and such certificates are not infrequently used in transactions of business to the deception and injury of innocent parties without placing any additional obstacles in the way of the obtainment of citizenship by the worthy and 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 salvador all of which have been duly proclaimed as has also a declaration with russia with reference to the report of the secretary of the treasury which by law is made directly to congress and forms 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 for the fiscal year ending june 30 1874 and that for the current fiscal year the estimated receipts over expenditures will not much exceed in view of the large national debt existing and the obligation to add 1 per cent per annum to the sinking fund a sum amounting now to over per annum i submit whether revenues should not be increased or expenditures 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 rates of taxation and in the number of articles submitted to taxation the question may well 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 revenue 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 views previously expressed in this message he also recommends economy in appropriations calls attention to the loss of revenue from repealing the tax on tea and coffee without benefit to the consumer recommends an increase of 10 cents a gallon on whisky and further that no modification be made in the banking and currency bill passed at the last session of congress unless modification should become necessary by reason of the adoption of measures for returning to specie payments in these recommendations i cordially 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 duties are levied those articles which enter into our manufactures and are not produced at home it seems to me should be entered free those articles of manufacture which we produce a constituent part of but do not produce the whole that part which we do not produce should enter free also i will instance fine wool dyes etc these articles must be imported to form a part of the manufacture of the higher grades of woolen goods chemicals used as dyes compounded in medicines and used in various ways in manufactures come under 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 tariff upon which increases the cost 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 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 attention there is no class of government employees who are harder worked than the army officers and men none who perform 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 the consolidation of government arsenals the restoration of mileage to officers traveling under orders the exemption of money received from the sale of subsistence stores from being covered into the treasury the use of appropriations for the purchase of subsistence stores without waiting for the beginning of the fiscal year for which the appropriation is made for additional appropriations for the collection of torpedo material for increased appropriations for the manufacture of arms for relieving the various states from indebtedness for arms charged to them during the rebellion for dropping officers from the rolls of the army without trial for the offense of drawing pay more than once for the same period for the discouragement of the plan to pay soldiers by cheek and for the establishment of a professorship of rhetoric and english literature at west point the reasons for these recommendations are obvious and are set forth sufficiently in the reports attached i also recommend that the status of the staff corps of the army be fixed where this has not already been done so that promotions may be made and vacancies filled as they occur in each grade when reduced below the number to be fixed by law the necessity for such legislation is specially felt now in the pay department the number of officers in that department is below the number adequate to the performance of the duties required of them by law the efficiency of the navy has been largely increased during the last year under the impulse of the foreign complications which threatened us at the commencement of the last session of congress most of our efficient wooden ships were put in condition for immediate service and the repairs of our ironclad fleet were pushed with the utmost vigor the result is that most of these are now in an effective state and need only to be manned and put in commission to go at once into service some of the new sloops authorized by congress are already in commission and most of the remainder are launched and wait only the completion of their machinery to enable them to take their places as part of our effective force two iron torpedo ships have been completed during the last year and four of our large ironclads are now undergoing repairs when these are finished everything that is useful of our navy as now authorized will be in condition for service and with the advance in the science of torpedo warfare the american navy comparatively small as it is will be found at any time powerful for the purposes of a peaceful nation much has been accomplished during the year in aid of science and to increase the sum of general knowledge and further the interests of commerce and civilization extensive and soundings have been made for hydrographic purposes and to fix the proper routes of ocean telegraphs further surveys of the great isthmus have been undertaken and completed and two vessels of the navy are now employed in conjunction with those of england france germany and russia in observations connected with the transit of venus so useful and interesting to the scientific world the estimates for this branch of the public service do not differ materially from those of last year those for the general support of the service being somewhat less and those for permanent improvements at the various stations rather larger than the corresponding estimate made a year ago the regular maintenance and a steady increase in the efficiency of this most important arm in proportion to the growth of our maritime intercourse and interests is recommended to the attention of congress the use of the navy in time of peace might be further utilized by a direct authorization of the employment of naval vessels in explorations and surveys of the supposed navigable waters of other nationalities on this continent especially the tributaries of the two great rivers of south america the orinoco and the amazon nothing prevents under existing laws such exploration except that expenditures must be made in such expeditions beyond those usually provided for in the appropriations the field designated is unquestionably one of interest and one capable of large development of commercial interests advantageous to the peoples reached and to those who may establish relations with them education of the people entitled to exercise the right of franchise i regard essential to general prosperity everywhere and especially so in republics where birth education or previous condition does not enter into account in giving suffrage next to the public school the is the great agent of education over our vast territory the rapidity with which new sections are being settled thus increasing the carrying of mails in a more rapid ratio than the increase of receipts is not alarming the report of the herewith attached shows that there was an increase of revenue in his department in 1873 over the previous year of and an increase of cost of carrying the mails and paying employees of the report of the gives interesting statistics of his department and compares them with the corresponding statistics of a year ago showing a growth in every branch of the department a postal convention has been concluded with new south wales an exchange of postal cards established with switzerland and the negotiations pending for several years past with france have been terminated in a convention with that country which went into effect last august an international postal congress was convened in berne switzerland in september last at which the united states was represented by an officer of the department of much experience and of qualification for the position a convention for the establishment of an international postal union was agreed upon and signed by the delegates of the countries represented subject to the approval of the proper authorities of those countries i respectfully direct your attention to the report of the and to his suggestions in regard to an equitable adjustment of the question of compensation to railroads for carrying the mails your attention 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 upon 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 penn claiming that he was elected in 1872 and calling upon the militia of the state to arm assemble and drive from power the usurpers as he designated the officers of the state government on the next day i issued my proclamation commanding the insurgents to disperse within five days from the date thereof and subsequently learned that on that day they had taken forcible possession of the statehouse steps 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 the only government in that state for nearly two years that it has been tacitly acknowledged and acquiesced in as such by congress and more than once expressly recognized by me i regarded it as my clear duty when legally called upon for that purpose to prevent its overthrow by an armed mob under pretense of fraud and irregularity in the election of 1872 i have heretofore called the attention of congress to this subject stating that on account of the frauds and forgeries committed at said election and because it appears that the returns thereof were never legally canvassed it was impossible to tell thereby who were chosen but from the best sources of information at my command i have always believed that the present state officers received a majority of the legal votes actually cast at that election i repeat what i said in my special message of february 23 1873 that in the event of no action by congress i must continue to recognize the government heretofore recognized by me i regret to say that with preparations for the late election decided indications appeared in some localities in the southern states of a determination by acts of violence and intimidation to deprive citizens of the freedom of the ballot because of their political opinions bands of men masked and armed made their appearance white leagues and other societies were formed large quantities of arms and ammunition were imported and distributed to these organizations military drills with menacing demonstrations were held and with all these murders enough were committed to spread terror among those whose political action was to be suppressed if possible by these intolerant and criminal proceedings in some places colored laborers were compelled to vote according to the wishes of their employers under threats of discharge if they acted otherwise and there are too many instances in which when these threats were disregarded they were remorselessly executed by those who made them i understand that the fifteenth amendment to the constitution was made to prevent this and a like state of things and the act of may 31 1870 with amendments was passed to enforce its provisions the object of both being to guarantee to all citizens the right to vote and to protect them in the free enjoyment of that right enjoined by the constitution to take care that the laws be faithfully executed and convinced by undoubted evidence that violations of said act had been committed and that a widespread and flagrant disregard of it was contemplated the proper officers were instructed to prosecute the offenders and troops were stationed at convenient points to aid these officers if necessary in the performance of their official duties complaints are made of this interference by federal authority but if said amendment and act do not provide for such interference under the circumstances as above stated then they are without meaning force or effect and the whole scheme of colored enfranchisement is worse than mockery and little better than a crime possibly congress may find it due to truth and justice to ascertain by means of a committee whether the alleged wrongs to colored citizens for political purposes are real or the reports thereof were manufactured for the occasion the whole number of troops in the states of louisiana alabama georgia florida south carolina north carolina kentucky tennessee arkansas mississippi maryland and virginia at the time of the election was this embraces the garrisons of all the forts from the delaware to the gulf of mexico another trouble has arisen in arkansas article 13 of the constitution of that state which was adopted in 1868 and upon the approval of which by congress the state was restored to representation as one of the states of the union provides in effect that before any amendments proposed to this constitution shall become a part thereof they shall be passed by two successive assemblies and then submitted to and ratified by a majority of the electors of the state voting thereon on the 11th of may 1874 the governor convened an extra session of the general assembly of the state which on the 18th of the same month passed an act providing for a convention to frame a new constitution pursuant to this act and at an election held on the 30th of june 1874 the convention was approved and delegates were chosen thereto who assembled on the 14th of last july and framed a new constitution the schedule of which provided for the election of an entire new set of state officers in a manner contrary to the then existing election laws of the state on the 13th of october 1874 this constitution as therein provided was submitted to the people for their approval or rejection and according to the election returns was approved by a large majority of those qualified to vote thereon and at the same election persons were chosen to fill all the state county and township offices the governor elected in 1872 for the term of four years turned over his office to the governor chosen under the new constitution whereupon the also elected in 1872 for a term of four years claiming to act as governor and alleging that said proceedings by which the new constitution was made and a new set of officers elected were unconstitutional illegal and void called upon me as provided in section 4 article iv of the constitution to protect the state against domestic violence as congress is now investigating the political affairs of arkansas i have declined to interfere the whole subject of executive interference with the affairs of a state is repugnant to public opinion to the feelings of those who from their official capacity must be used in such interposition and to him or those who must direct unless most clearly on the side of law such interference becomes a crime with the law to support it it is condemned without a heating i desire therefore that all necessity for executive direction in local affairs may become unnecessary and obsolete i invite the attention not of congress but of the people of the united states to the causes and effects of these unhappy questions is there not a disposition on one side to magnify wrongs and outrages and on the other side to belittle them or justify them if public opinion could be directed to a correct survey of what is and to rebuking wrong and aiding the proper authorities in punishing it a better state of feeling would be inculcated and the sooner we would have that peace which would leave the states free indeed to regulate their own domestic affairs i believe on the part of our citizens of the southern states the better part of them there is a disposition to be law abiding and to do no violence either to individuals or to the laws existing but do they do right in ignoring the existence of violence and bloodshed in resistance to constituted authority i sympathize with their prostrate condition and would do all in my power to relieve them acknowledging that in some instances they have had most trying governments to live under and very oppressive ones in the way of taxation for nominal improvements not giving benefits equal to the hardships imposed but can they proclaim themselves entirely irresponsible for this condition they can not violence has been rampant in some localities and has either been justified or denied by those who could have prevented it the theory is even raised that there is to be no further interference on the part of the general government to protect citizens within a state where the state authorities fail to give protection this is a great mistake while i remain executive all the laws of congress and the provisions of the constitution including the recent amendments added thereto will be enforced with rigor but with regret that they should have added one jot or tittle to executive duties or powers let there be fairness in the discussion of southern questions the advocates of both or all political parties giving honest truthful reports of occurrences condemning the wrong and upholding the tight and soon all will be well under existing conditions the negro votes the republican ticket because he knows his friends are of that party many a good citizen votes the opposite not because he agrees with the great principles of state which separate parties but because generally he is opposed to negro rule this is a most delusive cry treat the negro as a citizen and a voter as he is and must remain and soon parties will be divided not on the color line but on principle then we shall have no complaint of sectional interference the report of the contains valuable recommendations relating to the administration of justice in the courts of the united states to which i invite your attention i respectfully suggest to congress the propriety of increasing the number of judicial districts in the united states to eleven the present number being nine and the creation of two additional judgeships the territory to be traversed by the circuit judges is so great and the business of the courts so steadily increasing that it is growing more and more impossible for them to keep up with the business requiring 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 either of the other departments of government 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 most beneficial results it is confidently hoped that a few years more will relieve our frontiers from danger of indian depredations i commend the recommendation of the secretary for the extension of the homestead laws to the indians and for some sort of territorial government for the indian territory a great majority of the indians occupying this territory are believed yet to be incapable of maintaining their rights against the more civilized and enlightened white man 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 be ratified by a majority of those affected the report of the secretary of the interior herewith attached gives much interesting statistical information 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 their 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 services for which they were awarded pensions were in defense of the whole country the report of the commissioner of agriculture herewith contains suggestions of much interest to the general public and refers to the sly 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 at it and it may be expected that every civilized nation will be represented the rules adopted to improve the civil service of the 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 them 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 parties removed are frequently cited as departures from the rules adopted and the retention of those against whom charges are made by irresponsible persons and without good grounds is also often condemned as a violation of them under these circumstances therefore i announce that if congress adjourns without positive legislation on the subject of reform i will regard such action as a 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 as well as to myself it will be a source of mortification if it is to be 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 attention of congress if employment can be 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 a 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 doubt be given by the committee appointed by the last congress to investigate and report upon this subject a revival of shipbuilding and particularly of iron steamship building is of vast importance to our national prosperity the united states is now paying over per annum for freights and passage on foreign ships to be carried abroad and expended in the employment and support of other peoples beyond a fair percentage of what should go to foreign vessels estimating 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 government in supporting what might usually be termed private enterprise i would not suggest as a remedy direct subsidy to american steamship lines but i would suggest the direct offer of ample compensation for carrying the mails between atlantic seaboard cities and the continent on and steamers and would extend this liberality to vessels carrying the mails 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 government requiring them at some time for war purposes the right also of taking possession of them in such 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 the country into a course of general prosperity no one will be more ready than i to second the plan forwarded herewith will be found the report of the commissioners appointed under an act of congress approved june 20 1874 to wind up the affairs of the district government it will be seen from the report that the net debt of the district of columbia less securities on hand and available is in addition to this there are claims preferred against the government of the district amounting in the estimated aggregate reported by the board of audit to of which the greater part will probably be rejected this sum can with no more propriety be included in the debt account of the district government than can the thousands of claims against the general government be included as a portion of the national debt but the aggregate sum thus stated includes something more than the funded debt chargeable exclusively to the district of columbia the act of congress of june 20 1874 contemplates an apportionment between the united states government and the district of columbia in respect of the payment of the principal and interest of the bonds therefore in computing with precision the bonded debt of the district the aggregate sums above stated as respects bonds now issued the outstanding certificates of the board of audit and the unadjusted claims pending before that board should be reduced to the extent of the amount to be apportioned to the united states government in the manner indicated in the act of congress of june 20 1874 i especially invite your attention to the recommendations of the commissioners of the sinking fund relative to the ambiguity of the act of june 20 1874 the interest on the district bonds and the consolidation of the indebtedness of the district i feel much indebted to the gentlemen who consented to leave their private affairs and come from a distance to attend to the business of this district and for the able and satisfactory manner in which it has been conducted i am sure their services will be equally appreciated by the entire country it will be seen from the accompanying full report of the board of health that the sanitary condition of the district is very satisfactory 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 draw the attention of congress in framing a law for the government of the district to the magnificent scale on which the city was planned by the founders of the government the manner in which for ornamental purposes the reservations streets and avenues were laid out and the proportion of the property actually possessed by the general government i think the proportion of the expenses of the government and improvements to be borne by the general government the cities of washington and georgetown and the county should be carefully and equitably defined in accordance with section 3 act approved june 23 1874 i appointed a board to make a survey of the mouth of the mississippi river with a view to determine the best method of obtaining and maintaining a depth of water sufficient for the purposes of commerce etc and in accordance with an act entitled an act to provide for the appointment of a commission of engineers to investigate and report a permanent plan for the reclamation of the alluvial basin of the mississippi river subject to inundation i appointed a commission of engineers neither board has yet completed its labors when their reports are received they will be forwarded to congress without delay
since convening congress one year ago nation undergone prostration business industries witnessed us many years speculation causes prostration might indulged without profit many theories would advanced would independent writers expressed views without borrowing upon subject without indulging theories prostration therefore call attention fact plain questions would seem disagreement prostration two essential elements prosperity abundant labor capital largely unemployed security undoubted capital attainable moderate rates labor wanted found abundance cheap rates compared necessaries comforts life could purchased wages demanded two great elements prosperity therefore denied us third might added soil climate unequaled within limits contiguous territory one nationality variety products feed clothe people amount surplus spare feed less favored peoples therefore facts view seems wise statesmanship session congress would dictate legislation ignoring past directing proper channels great elements prosperity people debt debt abroad element always sound currency enter affairs continued depression industries prosperity people great conflict national existence made necessary temporary purposes raising large sums money whatever source attainable made necessary wisdom congress doubt wisdom premises regarding necessity times devise system national currency proved impossible keep par recognized currency civilized world begot spirit speculation involving extravagance luxury required happiness prosperity people involving directly indirectly foreign indebtedness currency fluctuating value therefore unsafe hold legitimate transactions requiring money became subject speculation within two causes however involved us foreign indebtedness contracted good faith borrower lender paid coin according bond agreed upon debt contracted gold equivalent good faith government violated toward creditors without national disgrace commerce encouraged american shipbuilding carrying capacity increased foreign markets sought products soil manufactories end may able pay debts new market created sale products either soil mine manufactory new means discovered utilizing idle capital labor advantage whole people judgment first step toward accomplishing object secure currency fixed stable value currency good wherever civilization reigns one becomes superabundant one people find market currency basis labor necessary produce give value gold silver recognized medium exchange civilized world return least practicable delay view pledges american congress present system adopted debt contracted delay certainly unnecessary delay fixing legislation method return specie accomplishment end invite special attention believe firmly prosperous permanent revival business industries policy adopted legislation carry looking return specie basis easy conceive debtor speculative classes may think value make money abundant throw portion burdens upon others even believe would disappointed result course pursued keep doubt value medium exchange revival productive industry needed classes none holders property whatever sort debts liquidate realization upon sale admitting two classes citizens benefited expansion would honest give would general loss great justify relief would honest prudent authorize debtor issue extent liabilities would safer fear overissues unscrupulous creditors say debt obligations obliterated united states commence anew possessing time free incumbrance propositions absurd entertained moment thinking honest people yet every delay preparation final resumption partakes dishonesty less degree hope held convenient season last arrive good work redeeming pledges commence never come opinion except positive action congress national disasters destroy time least credit individual state large sound currency might reached total bankruptcy discredit integrity nation individuals believe power congress session devise legislation renew confidence revive industries start us career prosperity last many years save credit nation people steps toward return specie basis great requisites devoutly sought end others may touch upon hereafter nation dealing currency specie value labors two great disadvantages first use world acknowledged medium exchange gold silver driven country need use second medium exchange use fluctuating value worth purchase gold silver metals intrinsic value proportion honest labor takes produce larger margin must allowed profit manufacturer producer months date production date realization interest upon capital must charged risk fluctuation value received payment added hence high prices acting protection foreign producer receives nothing exchange products skill labor except currency good stable value world seems nothing clearer greater part burden existing prostration want sound financial system falls upon working man must produce wealth salaried man superintends conducts business burden falls upon two ways deprivation employment decreased purchasing power salaries duty congress devise method correcting evils acknowledged exist mine venture suggest two three things seem absolutely necessary return specie payments first great requisite return prosperity clause law authorizing issue currency national government repealed take effect contracts entered day fixed repealing act apply however payments salaries government expenditures provided law paid currency interval pending repeal final resumption provision made secretary treasury obtain gold may become necessary time time date specie redemption commences might added revenue sufficiently excess expenses insure accumulation gold treasury sustain permanent redemption commend subject careful consideration believing favorable solution attainable reached congress present future generations ever gratefully remember deliverer thraldom evil disgrace resumption free banking may authorized safety giving full protection bill holders existing laws indeed would regard free banking essential would give proper elasticity currency currency required transaction legitimate business new banks would started turn banks would wind business found superabundance currency experience judgment people best decide much currency required transaction business country unsafe leave settlement question congress secretary treasury executive congress make regulation banks may exist make banking monopoly limiting amount redeemable paper currency shall authorized importance attach subject earnestly commend attention give prominence introducing beginning message past year nothing occurred disturb general friendly cordial relations united states powers correspondence submitted herewith government diplomatic representatives also representatives countries shows satisfactory condition questions united states countries exceptions reference hereafter made absence points difference adjusted notice directed resolution congress june 17 1874 given terminate convention july 17 1858 united states belgium given treaty accordingly terminate 1st day july 1875 convention secured certain belgian vessels entering ports united states exceptional privileges accorded vessels features convention proved satisfactory tended cultivation mutually beneficial commercial intercourse friendly relations two countries hope negotiations invited result celebration another treaty may tend interests countries relations china continue friendly past year fear hostilities china japan growing landing armed force upon island formosa latter occasioned uneasiness earnestly hoped however difficulties arising adjusted advance civilization empires may retarded state war consequence part taken certain citizens united states expedition representatives countries instructed impress upon governments china japan firm intention country maintain strict neutrality event hostilities carefully prevent infraction law part citizens connection subject call attention congress generally conceded fact great proportion chinese immigrants come shores come voluntarily make homes us labor productive general prosperity come contracts headmen almost absolutely worse form apply chinese women hardly perceptible percentage perform honorable labor brought shameful purposes disgrace communities settled great demoralization youth localities evil practice legislated pleasure well duty enforce regulation secure desirable end hoped negotiations government japan treaty powers looking opening empire removal various restrictions upon trade travel may soon produce results desired fail inure benefit parties previous occasions submitted consideration congress propriety release japanese government payment indemnity convention october 22 1864 action taken thereon became duty regard obligations convention force powers interested received portion indemnity full minister united states japan behalf government received remainder amount due united states convention simonosaki submit propriety applying income part whole fund education japanese language number young men obligations serve government specified time interpreters legation consulates japan limited number japanese youths might time educated vernacular mutual benefits would result governments importance citizens competent familiar language japan act interpreters capacities connected legation consulates country readily overestimated amount awarded government great britain mixed commission organized provisions treaty washington settlement claims british subjects arising acts committed april 13 1861 april 9 1865 became payable terms treaty within past year paid upon 21st day september 1874 connection renew recommendation made opening last session congress special court created hear determine claims aliens united states arising acts committed persons property insurrection appears equitable opportunity offered citizens states present claims well british subjects whose claims admissible late commission early decision competent tribunal end recommend necessary legislation organize court dispose claims aliens nature referred equitable satisfactory manner relieve congress departments consideration questions legislation necessary extend colony newfoundland certain articles treaty washington 8th day may 1871 protocol effect signed behalf united states great britain 28th day may last duly proclaimed following day copy proclamation submitted herewith copy report commissioner appointed act march 19 1872 surveying marking boundary united states british possessions lake woods summit rocky mountains herewith transmitted happy announce field work commission completed entire line northwest corner lake woods summit rocky mountains run marked upon surface earth believed amount remaining unexpended appropriation made last session congress sufficient complete office work recommend authority congress given use unexpended balance appropriation completion work commission making report preparing necessary maps court known court commissioners alabama claims created act congress last session organized commenced work hoped claims admissible provisions act may speedily ascertained paid deemed advisable exercise discretion conferred upon executive last session accepting conditions required government turkey privilege allowing citizens united states hold real estate former country assenting certain change jurisdiction courts latter copy proclamation upon subjects herewith communicated material change relations independent states hemisphere formerly dominion spain marauding frontiers mexico texas still frequently takes place despite vigilance civil military authorities quarter difficulty checking trespasses along course river length rio grande often fordable obvious hoped efforts government seconded mexico effectual suppression acts wrong report upon condition business american mexican joint claims commission made agent part united states dated october 28 1874 appears claims filed part citizens united states 483 finally decided 75 hands umpire leaving 462 disposed 998 claims filed united states 726 finally decided umpire 271 remained disposed since date report claims disposed reducing somewhat number still pending others passed upon arbitrators become apparent view figures fact work devolving umpire particularly laborious commission unable dispose entire number claims pending prior 1st day february 1875 date fixed expiration negotiations pending looking securing results decisions reached extension commission limited time confidently hoped suffice bring business final close strife argentine republic deplored account parties thereto probable effects interests engaged trade quarter united states among principal yet far aware violation neutrality rights well duties respect shall endeavor maintain observe regret announce payment received government venezuela account awards favor citizens united states hopes entertained republic could escape foreign civil war years great natural resources would enable honor obligations though understood peace countries serious insurrection reported progress important region republic may taken advantage another reason delay payment dues citizens deplorable strife cuba continues without marked change relative advantages contending forces insurrection continues spain gained superiority six years strife give insurrection significance denied duration tenacity adherence together absence manifested power suppression part spain controverted may make positive steps part powers matter confidently hoped time able announce arrangement important questions government spain negotiations protracted unhappy intestine dissensions spain command profound sympathy must accepted perhaps delay early settlement part least questions governments hoped meantime awaiting results immediately pending negotiations defer fuller communication subject relations country spain call attention congress unsatisfactory condition existing laws reference expatriation election nationality formerly amid conflicting opinions decisions difficult exactly determine far doctrine perpetual allegiance applicable citizens united states congress act 27th july 1868 asserted abstract right expatriation fundamental principle government notwithstanding assertion necessity frequent application principle legislation defining acts formalities shall work expatriation citizen shall deemed renounced lost citizenship importance definition obvious representatives united states foreign countries continually called upon lend aid protection united states persons concerning good faith reality whose citizenship least great question cases provisions treaties furnish guide others seems left person claiming benefits citizenship living foreign country contributing manner performance duties citizen united states without intention time return undertake duties use claims citizenship united states simply shield performance obligations citizen elsewhere status children born american parents residing foreign country american women married aliens american citizens residing abroad question regulated treaty sources frequent difficulty discussion legislation similar questions particularly defining circumstances expatriation accomplished presumed especially needed connection earnestly call attention congress difficulties arising fraudulent naturalization united states wisely freely liberally offers citizenship may come good faith reside within limits complying certain prescribed reasonable simple formalities conditions among highest duties government afford firm sufficient equal protection citizens whether native born naturalized care taken right carrying support government fraudulently obtained bestowed upon full proof compliance law yet frequent instances brought attention government illegal fraudulent naturalization unauthorized use certificates thus improperly obtained cases fraudulent character naturalization appeared upon face certificate others examination discloses holder complied law others certificates obtained persons holding entitled naturalized even within united states time pretended naturalization instances classes fraud discovered legations certificates naturalization presented either purpose obtaining passports demanding protection legation fraud apparent face certificates taken representatives government forwarded department state even record court fraudulent naturalization occurred remains duplicate certificates readily obtainable upon presentation issue passports demanding protection government fraud sometimes escapes notice certificates infrequently used transactions business deception injury innocent parties without placing additional obstacles way obtainment citizenship worthy foreigner comes good faith cast lot earnestly recommend legislation punish fraudulent naturalization secure ready cancellation record every naturalization made fraud since last annual message exchange made ratification treaties extradition belgium ecuador peru salvador also treaty commerce navigation peru one commerce consular privileges salvador duly proclaimed also declaration russia reference report secretary treasury law made directly congress forms part message show receipts expenditures government last fiscal year amount received source revenue amount paid departments government observed report amount receipts expenditures fiscal year ending june 30 1874 current fiscal year estimated receipts expenditures much exceed view large national debt existing obligation add 1 per cent per annum sinking fund sum amounting per annum submit whether revenues increased expenditures diminished reach amount surplus provide sinking fund partial failure comply contracts obligations government last session congress considerable reduction made rates taxation number articles submitted taxation question may well asked whether instances unwisely connection subject venture opinion means collecting revenue especially imports embarrassed legislation make questionable whether large amounts lost failure collect direct loss treasury prejudice interests honest importers taxpayers secretary treasury report favors legislation looking early return specie payments thus supporting views previously expressed message also recommends economy appropriations calls attention loss revenue repealing tax tea coffee without benefit consumer recommends increase 10 cents gallon whisky modification made banking currency bill passed last session congress unless modification become necessary reason adoption measures returning specie payments recommendations cordially join would suggest congress propriety readjusting tariff increase revenue time decrease number articles upon duties levied articles enter manufactures produced home seems entered free articles manufacture produce constituent part produce whole part produce enter free also instance fine wool dyes etc articles must imported form part manufacture higher grades woolen goods chemicals used dyes compounded medicines used various ways manufactures come class introduction free duty wools produce would stimulate manufacture goods requiring use produce therefore would benefit home production many articles entering home manufactures produce tariff upon increases cost producing manufactured article corrections regard direction bringing labor capital harmony supplying one elements prosperity much needed report secretary war herewith attached forming part message gives information concerning operations wants necessities army contains many suggestions recommendations commend special attention class government employees harder worked army officers men none perform tasks cheerfully efficiently circumstances greater privations hardships legislation desirable render efficient branch public service recommendations secretary war regard judicious especially commend attention following consolidation government arsenals restoration mileage officers traveling orders exemption money received sale subsistence stores covered treasury use appropriations purchase subsistence stores without waiting beginning fiscal year appropriation made additional appropriations collection torpedo material increased appropriations manufacture arms relieving various states indebtedness arms charged rebellion dropping officers rolls army without trial offense drawing pay period discouragement plan pay soldiers cheek establishment professorship rhetoric english literature west point reasons recommendations obvious set forth sufficiently reports attached also recommend status staff corps army fixed already done promotions may made vacancies filled occur grade reduced number fixed law necessity legislation specially felt pay department number officers department number adequate performance duties required law efficiency navy largely increased last year impulse foreign complications threatened us commencement last session congress efficient wooden ships put condition immediate service repairs ironclad fleet pushed utmost vigor result effective state need manned put commission go service new sloops authorized congress already commission remainder launched wait completion machinery enable take places part effective force two iron torpedo ships completed last year four large ironclads undergoing repairs finished everything useful navy authorized condition service advance science torpedo warfare american navy comparatively small found time powerful purposes peaceful nation much accomplished year aid science increase sum general knowledge interests commerce civilization extensive soundings made hydrographic purposes fix proper routes ocean telegraphs surveys great isthmus undertaken completed two vessels navy employed conjunction england france germany russia observations connected transit venus useful interesting scientific world estimates branch public service differ materially last year general support service somewhat less permanent improvements various stations rather larger corresponding estimate made year ago regular maintenance steady increase efficiency important arm proportion growth maritime intercourse interests recommended attention congress use navy time peace might utilized direct authorization employment naval vessels explorations surveys supposed navigable waters nationalities continent especially tributaries two great rivers south america orinoco amazon nothing prevents existing laws exploration except expenditures must made expeditions beyond usually provided appropriations field designated unquestionably one interest one capable large development commercial interests advantageous peoples reached may establish relations education people entitled exercise right franchise regard essential general prosperity everywhere especially republics birth education previous condition enter account giving suffrage next public school great agent education vast territory rapidity new sections settled thus increasing carrying mails rapid ratio increase receipts alarming report herewith attached shows increase revenue department 1873 previous year increase cost carrying mails paying employees report gives interesting statistics department compares corresponding statistics year ago showing growth every branch department postal convention concluded new south wales exchange postal cards established switzerland negotiations pending several years past france terminated convention country went effect last august international postal congress convened berne switzerland september last united states represented officer department much experience qualification position convention establishment international postal union agreed upon signed delegates countries represented subject approval proper authorities countries respectfully direct attention report suggestions regard equitable adjustment question compensation railroads carrying mails attention drawn unsettled condition affairs southern states 14th september last governor louisiana called upon provided constitution laws united states aid suppressing domestic violence state call made view proclamation issued day penn claiming elected 1872 calling upon militia state arm assemble drive power usurpers designated officers state government next day issued proclamation commanding insurgents disperse within five days date thereof subsequently learned day taken forcible possession statehouse steps taken support existing recognized state government expiration five days insurrectionary movement practically abandoned officers state government minor exceptions resumed powers duties considering present state administration louisiana government state nearly two years tacitly acknowledged acquiesced congress expressly recognized regarded clear duty legally called upon purpose prevent overthrow armed mob pretense fraud irregularity election 1872 heretofore called attention congress subject stating account frauds forgeries committed said election appears returns thereof never legally canvassed impossible tell thereby chosen best sources information command always believed present state officers received majority legal votes actually cast election repeat said special message february 23 1873 event action congress must continue recognize government heretofore recognized regret say preparations late election decided indications appeared localities southern states determination acts violence intimidation deprive citizens freedom ballot political opinions bands men masked armed made appearance white leagues societies formed large quantities arms ammunition imported distributed organizations military drills menacing demonstrations held murders enough committed spread terror among whose political action suppressed possible intolerant criminal proceedings places colored laborers compelled vote according wishes employers threats discharge acted otherwise many instances threats disregarded remorselessly executed made understand fifteenth amendment constitution made prevent like state things act may 31 1870 amendments passed enforce provisions object guarantee citizens right vote protect free enjoyment right enjoined constitution take care laws faithfully executed convinced undoubted evidence violations said act committed widespread flagrant disregard contemplated proper officers instructed prosecute offenders troops stationed convenient points aid officers necessary performance official duties complaints made interference federal authority said amendment act provide interference circumstances stated without meaning force effect whole scheme colored enfranchisement worse mockery little better crime possibly congress may find due truth justice ascertain means committee whether alleged wrongs colored citizens political purposes real reports thereof manufactured occasion whole number troops states louisiana alabama georgia florida south carolina north carolina kentucky tennessee arkansas mississippi maryland virginia time election embraces garrisons forts delaware gulf mexico another trouble arisen arkansas article 13 constitution state adopted 1868 upon approval congress state restored representation one states union provides effect amendments proposed constitution shall become part thereof shall passed two successive assemblies submitted ratified majority electors state voting thereon 11th may 1874 governor convened extra session general assembly state 18th month passed act providing convention frame new constitution pursuant act election held 30th june 1874 convention approved delegates chosen thereto assembled 14th last july framed new constitution schedule provided election entire new set state officers manner contrary existing election laws state 13th october 1874 constitution therein provided submitted people approval rejection according election returns approved large majority qualified vote thereon election persons chosen fill state county township offices governor elected 1872 term four years turned office governor chosen new constitution whereupon also elected 1872 term four years claiming act governor alleging said proceedings new constitution made new set officers elected unconstitutional illegal void called upon provided section 4 article iv constitution protect state domestic violence congress investigating political affairs arkansas declined interfere whole subject executive interference affairs state repugnant public opinion feelings official capacity must used interposition must direct unless clearly side law interference becomes crime law support condemned without heating desire therefore necessity executive direction local affairs may become unnecessary obsolete invite attention congress people united states causes effects unhappy questions disposition one side magnify wrongs outrages side belittle justify public opinion could directed correct survey rebuking wrong aiding proper authorities punishing better state feeling would inculcated sooner would peace would leave states free indeed regulate domestic affairs believe part citizens southern states better part disposition law abiding violence either individuals laws existing right ignoring existence violence bloodshed resistance constituted authority sympathize prostrate condition would power relieve acknowledging instances trying governments live oppressive ones way taxation nominal improvements giving benefits equal hardships imposed proclaim entirely irresponsible condition violence rampant localities either justified denied could prevented theory even raised interference part general government protect citizens within state state authorities fail give protection great mistake remain executive laws congress provisions constitution including recent amendments added thereto enforced rigor regret added one jot tittle executive duties powers let fairness discussion southern questions advocates political parties giving honest truthful reports occurrences condemning wrong upholding tight soon well existing conditions negro votes republican ticket knows friends party many good citizen votes opposite agrees great principles state separate parties generally opposed negro rule delusive cry treat negro citizen voter must remain soon parties divided color line principle shall complaint sectional interference report contains valuable recommendations relating administration justice courts united states invite attention respectfully suggest congress propriety increasing number judicial districts united states eleven present number nine creation two additional judgeships territory traversed circuit judges great business courts steadily increasing growing impossible keep business requiring attention whether would involve necessity adding two justices supreme court present number submit judgment congress attention congress invited report secretary interior legislation asked domestic interests people intimately connected department either departments government duties added time time become onerous without perfect system order impossible secretary interior keep trace official transactions sanction done name held personally responsible policy adopted management indian affairs known peace policy adhered beneficial results confidently hoped years relieve frontiers danger indian depredations commend recommendation secretary extension homestead laws indians sort territorial government indian territory great majority indians occupying territory believed yet incapable maintaining rights civilized enlightened white man territorial form government given therefore protect homes property period least twenty years final adoption ratified majority affected report secretary interior herewith attached gives much interesting statistical information abstain giving abstract refer report act congress providing oath pensioners must subscribe drawing pensions cuts bounty survivors war 1812 residing southern states recommend restoration bounty number persons whose names would thus restored list pensioners large old persons could taken part rebellion services awarded pensions defense whole country report commissioner agriculture herewith contains suggestions much interest general public refers sly approaching centennial part department ready take feel nation large interested exposition success commend congress action secure greater general interest already many foreign nations signified intention represented may expected every civilized nation represented rules adopted improve civil service government adhered closely practicable opposition meet effect believe beneficial whole tended elevation service impracticable maintain without direct positive support congress generally support reform receives give support find fault rules apparently departed removals office without preferring charges parties removed frequently cited departures rules adopted retention charges made irresponsible persons without good grounds also often condemned violation circumstances therefore announce congress adjourns without positive legislation subject reform regard action disapproval system abandon except far require examinations certain appointees determine fitness competitive examinations abandoned gentlemen given services without compensation members board devise rules regulations government civil service country shown much zeal earnestness work well source mortification thrown away repeat impossible carry system successful issue without general approval assistance positive law support stated three elements prosperity nation capital labor skilled unskilled products soil still remain us direct employment problem deserving serious attention congress employment given labor offering prosperity necessarily follows expressed opinion repeat first requisite accomplishment end substitution sound currency place one fluctuating value secured many interests might fostered great profit labor capital induce capital employ labor question subject cheap transportation occupied attention congress much new light question without doubt given committee appointed last congress investigate report upon subject revival shipbuilding particularly iron steamship building vast importance national prosperity united states paying per annum freights passage foreign ships carried abroad expended employment support peoples beyond fair percentage go foreign vessels estimating tonnage travel respectively regretted disparity carrying trade exists correct would willing see great departure usual course government supporting might usually termed private enterprise would suggest remedy direct subsidy american steamship lines would suggest direct offer ample compensation carrying mails atlantic seaboard cities continent steamers would extend liberality vessels carrying mails south american states central america mexico would pursue policy pacific seaports foreign seaports pacific might demanded vessels built service come standard fixed legislation tonnage speed qualities looking possibility government requiring time war purposes right also taking possession emergency guarded offer suggestions believing worthy consideration seriousness affecting sections interests alike anything better done direct country course general prosperity one ready second plan forwarded herewith found report commissioners appointed act congress approved june 20 1874 wind affairs district government seen report net debt district columbia less securities hand available addition claims preferred government district amounting estimated aggregate reported board audit greater part probably rejected sum propriety included debt account district government thousands claims general government included portion national debt aggregate sum thus stated includes something funded debt chargeable exclusively district columbia act congress june 20 1874 contemplates apportionment united states government district columbia respect payment principal interest bonds therefore computing precision bonded debt district aggregate sums stated respects bonds issued outstanding certificates board audit unadjusted claims pending board reduced extent amount apportioned united states government manner indicated act congress june 20 1874 especially invite attention recommendations commissioners sinking fund relative ambiguity act june 20 1874 interest district bonds consolidation indebtedness district feel much indebted gentlemen consented leave private affairs come distance attend business district able satisfactory manner conducted sure services equally appreciated entire country seen accompanying full report board health sanitary condition district satisfactory opinion district columbia regarded grounds national capital entire people interested allude urge generous appropriations district draw attention congress framing law government district magnificent scale city planned founders government manner ornamental purposes reservations streets avenues laid proportion property actually possessed general government think proportion expenses government improvements borne general government cities washington georgetown county carefully equitably defined accordance section 3 act approved june 23 1874 appointed board make survey mouth mississippi river view determine best method obtaining maintaining depth water sufficient purposes commerce etc accordance act entitled act provide appointment commission engineers investigate report permanent plan reclamation alluvial basin mississippi river subject inundation appointed commission engineers neither board yet completed labors reports received forwarded congress without delay
since convene congress one year ago nation undergone prostration business industry witness u many year speculation cause prostration might indulge without profit many theory would advance would independent writer express view without borrow upon subject without indulge theory prostration therefore call attention fact plain question would seem disagreement prostration two essential element prosperity abundant labor capital largely unemployed security undoubted capital attainable moderate rate labor want found abundance cheap rate compare necessary comfort life could purchase wage demand two great element prosperity therefore deny u third might add soil climate unequaled within limit contiguous territory one nationality variety product fee clothe people amount surplus spare feed less favored people therefore fact view seem wise statesmanship session congress would dictate legislation ignore past direct proper channel great element prosperity people debt debt abroad element always sound currency enter affair continue depression industry prosperity people great conflict national existence make necessary temporary purpose raise large sum money whatever source attainable make necessary wisdom congress doubt wisdom premise regard necessity time devise system national currency prove impossible keep par recognize currency civilize world beget spirit speculation involve extravagance luxury require happiness prosperity people involve directly indirectly foreign indebtedness currency fluctuate value therefore unsafe hold legitimate transaction require money become subject speculation within two cause however involve u foreign indebtedness contract good faith borrower lender pay coin accord bond agree upon debt contract gold equivalent good faith government violate toward creditor without national disgrace commerce encourage american shipbuilding carry capacity increase foreign market seek product soil manufactory end may able pay debt new market create sale product either soil mine manufactory new mean discover utilize idle capital labor advantage whole people judgment first step toward accomplish object secure currency fix stable value currency good wherever civilization reign one becomes superabundant one people find market currency basis labor necessary produce give value gold silver recognize medium exchange civilized world return least practicable delay view pledge american congress present system adopt debt contract delay certainly unnecessary delay fix legislation method return specie accomplishment end invite special attention believe firmly prosperous permanent revival business industry policy adopt legislation carry look return specie basis easy conceive debtor speculative class may think value make money abundant throw portion burden upon others even believe would disappointed result course pursue keep doubt value medium exchange revival productive industry need class none holder property whatever sort debt liquidate realization upon sale admit two class citizen benefit expansion would honest give would general loss great justify relief would honest prudent authorize debtor issue extent liability would safer fear overissues unscrupulous creditor say debt obligation obliterate united state commence anew possessing time free incumbrance proposition absurd entertain moment think honest people yet every delay preparation final resumption partakes dishonesty less degree hope hold convenient season last arrive good work redeem pledge commence never come opinion except positive action congress national disaster destroy time least credit individual state large sound currency might reach total bankruptcy discredit integrity nation individual believe power congress session devise legislation renew confidence revive industry start u career prosperity last many year save credit nation people step toward return specie basis great requisites devoutly seek end others may touch upon hereafter nation deal currency specie value labor two great disadvantage first use world acknowledge medium exchange gold silver drive country need use second medium exchange use fluctuate value worth purchase gold silver metal intrinsic value proportion honest labor take produce large margin must allow profit manufacturer producer month date production date realization interest upon capital must charge risk fluctuation value receive payment add hence high price act protection foreign producer receive nothing exchange product skill labor except currency good stable value world seem nothing clearer great part burden exist prostration want sound financial system fall upon work man must produce wealth salaried man superintend conduct business burden fall upon two way deprivation employment decrease purchase power salary duty congress devise method correct evil acknowledge exist mine venture suggest two three thing seem absolutely necessary return specie payment first great requisite return prosperity clause law authorize issue currency national government repeal take effect contract enter day fix repeal act apply however payment salaries government expenditure provide law pay currency interval pending repeal final resumption provision make secretary treasury obtain gold may become necessary time time date specie redemption commences might add revenue sufficiently excess expense insure accumulation gold treasury sustain permanent redemption commend subject careful consideration believe favorable solution attainable reach congress present future generation ever gratefully remember deliverer thraldom evil disgrace resumption free banking may authorize safety give full protection bill holder exist law indeed would regard free banking essential would give proper elasticity currency currency require transaction legitimate business new bank would start turn bank would wind business find superabundance currency experience judgment people best decide much currency require transaction business country unsafe leave settlement question congress secretary treasury executive congress make regulation bank may exist make banking monopoly limit amount redeemable paper currency shall authorize importance attach subject earnestly commend attention give prominence introduce begin message past year nothing occur disturb general friendly cordial relation united state power correspondence submit herewith government diplomatic representative also representative country show satisfactory condition question united state country exception reference hereafter make absence point difference adjust notice direct resolution congress june 17 1874 give terminate convention july 17 1858 united state belgium give treaty accordingly terminate 1st day july 1875 convention secure certain belgian vessel enter port united state exceptional privilege accord vessel feature convention proved satisfactory tend cultivation mutually beneficial commercial intercourse friendly relation two country hope negotiation invite result celebration another treaty may tend interest country relation china continue friendly past year fear hostility china japan grow land arm force upon island formosa latter occasion uneasiness earnestly hop however difficulty arise adjust advance civilization empire may retard state war consequence part take certain citizen united state expedition representative country instruct impress upon government china japan firm intention country maintain strict neutrality event hostility carefully prevent infraction law part citizens connection subject call attention congress generally concede fact great proportion chinese immigrant come shore come voluntarily make home u labor productive general prosperity come contract headman almost absolutely bad form apply chinese woman hardly perceptible percentage perform honorable labor bring shameful purpose disgrace community settle great demoralization youth locality evil practice legislate pleasure well duty enforce regulation secure desirable end hop negotiation government japan treaty power look open empire removal various restriction upon trade travel may soon produce result desire fail inure benefit party previous occasion submit consideration congress propriety release japanese government payment indemnity convention october 22 1864 action take thereon become duty regard obligation convention force power interested receive portion indemnity full minister unite state japan behalf government receive remainder amount due united state convention simonosaki submit propriety apply income part whole fund education japanese language number young men obligation serve government specify time interpreter legation consulates japan limit number japanese youth might time educate vernacular mutual benefit would result government importance citizen competent familiar language japan act interpreter capacity connect legation consulate country readily overestimate amount awarded government great britain mixed commission organize provision treaty washington settlement claim british subject arise act commit april 13 1861 april 9 1865 become payable term treaty within past year pay upon 21st day september 1874 connection renew recommendation make open last session congress special court create hear determine claim alien united state arise act committed person property insurrection appear equitable opportunity offer citizen state present claim well british subject whose claim admissible late commission early decision competent tribunal end recommend necessary legislation organize court dispose claim alien nature refer equitable satisfactory manner relieve congress department consideration question legislation necessary extend colony newfoundland certain article treaty washington 8th day may 1871 protocol effect sign behalf united state great britain 28th day may last duly proclaim following day copy proclamation submit herewith copy report commissioner appoint act march 19 1872 survey mark boundary united state british possession lake wood summit rocky mountain herewith transmit happy announce field work commission complete entire line northwest corner lake wood summit rocky mountain run mark upon surface earth believe amount remain unexpended appropriation make last session congress sufficient complete office work recommend authority congress give use unexpended balance appropriation completion work commission make report prepare necessary map court know court commissioner alabama claim create act congress last session organize commenced work hop claim admissible provision act may speedily ascertain paid deem advisable exercise discretion confer upon executive last session accept condition required government turkey privilege allow citizen united state hold real estate former country assent certain change jurisdiction court latter copy proclamation upon subject herewith communicate material change relation independent state hemisphere formerly dominion spain maraud frontier mexico texas still frequently take place despite vigilance civil military authority quarter difficulty check trespass along course river length rio grande often fordable obvious hop effort government second mexico effectual suppression act wrong report upon condition business american mexican joint claim commission make agent part united state date october 28 1874 appear claim file part citizen united state 483 finally decide 75 hand umpire leave 462 disposed 998 claim file united state 726 finally decide umpire 271 remain disposed since date report claim dispose reduce somewhat number still pending others pass upon arbitrator become apparent view figure fact work devolve umpire particularly laborious commission unable dispose entire number claim pending prior 1st day february 1875 date fix expiration negotiation pending look secure result decision reach extension commission limit time confidently hop suffice bring business final close strife argentine republic deplore account party thereto probable effect interest engage trade quarter united state among principal yet far aware violation neutrality right well duty respect shall endeavor maintain observe regret announce payment receive government venezuela account award favor citizen united state hope entertain republic could escape foreign civil war year great natural resource would enable honor obligation though understood peace country serious insurrection report progress important region republic may take advantage another reason delay payment due citizen deplorable strife cuba continue without marked change relative advantage contend force insurrection continue spain gain superiority six year strife give insurrection significance deny duration tenacity adherence together absence manifested power suppression part spain controvert may make positive step part power matter confidently hop time able announce arrangement important question government spain negotiation protract unhappy intestine dissension spain command profound sympathy must accept perhaps delay early settlement part least question government hop meantime await result immediately pending negotiation defer full communication subject relation country spain call attention congress unsatisfactory condition exist law reference expatriation election nationality formerly amid conflict opinion decision difficult exactly determine far doctrine perpetual allegiance applicable citizen united state congress act 27th july 1868 assert abstract right expatriation fundamental principle government notwithstanding assertion necessity frequent application principle legislation define act formality shall work expatriation citizen shall deem renounce lose citizenship importance definition obvious representative united state foreign country continually call upon lend aid protection united state person concern good faith reality whose citizenship least great question case provision treaty furnish guide others seem left person claim benefit citizenship live foreign country contribute manner performance duty citizen united state without intention time return undertake duty use claim citizenship united state simply shield performance obligation citizen elsewhere status child bear american parent reside foreign country american woman marry alien american citizen reside abroad question regulate treaty source frequent difficulty discussion legislation similar question particularly define circumstance expatriation accomplish presume especially need connection earnestly call attention congress difficulty arise fraudulent naturalization unite state wisely freely liberally offer citizenship may come good faith reside within limit comply certain prescribed reasonable simple formality condition among high duty government afford firm sufficient equal protection citizens whether native born naturalize care take right carry support government fraudulently obtain bestow upon full proof compliance law yet frequent instance bring attention government illegal fraudulent naturalization unauthorized use certificate thus improperly obtain case fraudulent character naturalization appear upon face certificate others examination discloses holder comply law others certificate obtain person hold entitle naturalized even within united state time pretend naturalization instance class fraud discover legation certificate naturalization present either purpose obtain passport demand protection legation fraud apparent face certificate take representative government forward department state even record court fraudulent naturalization occur remains duplicate certificate readily obtainable upon presentation issue passports demand protection government fraud sometimes escape notice certificate infrequently use transaction business deception injury innocent party without place additional obstacle way obtainment citizenship worthy foreigner come good faith cast lot earnestly recommend legislation punish fraudulent naturalization secure ready cancellation record every naturalization make fraud since last annual message exchange make ratification treaty extradition belgium ecuador peru salvador also treaty commerce navigation peru one commerce consular privilege salvador duly proclaim also declaration russia reference report secretary treasury law make directly congress form part message show receipt expenditures government last fiscal year amount receive source revenue amount pay department government observe report amount receipt expenditures fiscal year end june 30 1874 current fiscal year estimate receipt expenditure much exceed view large national debt exist obligation add 1 per cent per annum sinking fund sum amount per annum submit whether revenue increase expenditure diminish reach amount surplus provide sink fund partial failure comply contract obligation government last session congress considerable reduction make rate taxation number article submit taxation question may well asked whether instance unwisely connection subject venture opinion mean collect revenue especially import embarrass legislation make questionable whether large amount lose failure collect direct loss treasury prejudice interest honest importer taxpayer secretary treasury report favor legislation look early return specie payment thus support view previously express message also recommend economy appropriation call attention loss revenue repeal tax tea coffee without benefit consumer recommend increase 10 cent gallon whisky modification make banking currency bill pass last session congress unless modification become necessary reason adoption measure return specie payment recommendation cordially join would suggest congress propriety readjust tariff increase revenue time decrease number article upon duty levy article enter manufacture produce home seem enter free article manufacture produce constituent part produce whole part produce enter free also instance fine wool dye etc article must import form part manufacture high grade woolen good chemical use dye compound medicine use various way manufacture come class introduction free duty wool produce would stimulate manufacture good require use produce therefore would benefit home production many article enter home manufacture produce tariff upon increase cost produce manufacture article correction regard direction bring labor capital harmony supply one elements prosperity much need report secretary war herewith attach form part message give information concern operation want necessity army contain many suggestion recommendation commend special attention class government employee harder work army officer men none perform task cheerfully efficiently circumstance great privation hardship legislation desirable render efficient branch public service recommendation secretary war regard judicious especially commend attention follow consolidation government arsenal restoration mileage officer travel order exemption money receive sale subsistence store cover treasury use appropriation purchase subsistence store without wait begin fiscal year appropriation make additional appropriation collection torpedo material increase appropriation manufacture arm relieve various state indebtedness arm charge rebellion drop officer roll army without trial offense draw pay period discouragement plan pay soldier cheek establishment professorship rhetoric english literature west point reason recommendation obvious set forth sufficiently report attach also recommend status staff corp army fix already do promotion may make vacancy fill occur grade reduce number fix law necessity legislation specially felt pay department number officer department number adequate performance duty require law efficiency navy largely increase last year impulse foreign complication threaten u commencement last session congress efficient wooden ship put condition immediate service repair ironclad fleet push utmost vigor result effective state need man put commission go service new sloop authorize congress already commission remainder launch wait completion machinery enable take place part effective force two iron torpedo ship complete last year four large ironclad undergo repair finish everything useful navy authorized condition service advance science torpedo warfare american navy comparatively small find time powerful purpose peaceful nation much accomplish year aid science increase sum general knowledge interest commerce civilization extensive sounding make hydrographic purpose fix proper route ocean telegraphs survey great isthmus undertake complete two vessel navy employed conjunction england france germany russia observation connect transit venus useful interesting scientific world estimate branch public service differ materially last year general support service somewhat less permanent improvement various station rather large correspond estimate make year ago regular maintenance steady increase efficiency important arm proportion growth maritime intercourse interest recommend attention congress use navy time peace might utilize direct authorization employment naval vessel exploration survey suppose navigable water nationality continent especially tributary two great river south america orinoco amazon nothing prevents exist law exploration except expenditure must make expedition beyond usually provided appropriation field designate unquestionably one interest one capable large development commercial interest advantageous people reach may establish relation education people entitle exercise right franchise regard essential general prosperity everywhere especially republics birth education previous condition enter account give suffrage next public school great agent education vast territory rapidity new section settle thus increase carry mail rapid ratio increase receipt alarm report herewith attach show increase revenue department 1873 previous year increase cost carry mail pay employee report give interesting statistic department compare correspond statistic year ago show growth every branch department postal convention conclude new south wale exchange postal card establish switzerland negotiation pending several year past france terminate convention country go effect last august international postal congress convene berne switzerland september last united state represent officer department much experience qualification position convention establishment international postal union agree upon sign delegate country represent subject approval proper authority country respectfully direct attention report suggestion regard equitable adjustment question compensation railroad carry mail attention drawn unsettled condition affair southern state 14th september last governor louisiana call upon provide constitution law united state aid suppress domestic violence state call make view proclamation issue day penn claim elected 1872 call upon militia state arm assemble drive power usurper designate officer state government next day issue proclamation command insurgent disperse within five day date thereof subsequently learn day take forcible possession statehouse step take support exist recognize state government expiration five day insurrectionary movement practically abandon officer state government minor exception resume power duty consider present state administration louisiana government state nearly two year tacitly acknowledge acquiesced congress expressly recognize regard clear duty legally call upon purpose prevent overthrow arm mob pretense fraud irregularity election 1872 heretofore call attention congress subject state account frauds forgery commit say election appear return thereof never legally canvass impossible tell thereby choose best source information command always believe present state officer receive majority legal vote actually cast election repeat say special message february 23 1873 event action congress must continue recognize government heretofore recognize regret say preparation late election decide indication appear locality southern state determination act violence intimidation deprive citizen freedom ballot political opinion band men mask arm make appearance white league society form large quantity arm ammunition import distributed organization military drill menace demonstration hold murder enough commit spread terror among whose political action suppress possible intolerant criminal proceeding place color laborer compel vote accord wish employer threat discharge acted otherwise many instance threat disregard remorselessly execute make understand fifteenth amendment constitution make prevent like state thing act may 31 1870 amendment pass enforce provision object guarantee citizen right vote protect free enjoyment right enjoin constitution take care law faithfully execute convinced undoubted evidence violation say act commit widespread flagrant disregard contemplate proper officer instruct prosecute offender troop station convenient point aid officer necessary performance official duty complaint make interference federal authority say amendment act provide interference circumstance state without mean force effect whole scheme color enfranchisement bad mockery little good crime possibly congress may find due truth justice ascertain mean committee whether alleged wrong color citizen political purpose real report thereof manufacture occasion whole number troop state louisiana alabama georgia florida south carolina north carolina kentucky tennessee arkansas mississippi maryland virginia time election embrace garrison fort delaware gulf mexico another trouble arisen arkansas article 13 constitution state adopt 1868 upon approval congress state restore representation one state union provide effect amendment propose constitution shall become part thereof shall pass two successive assembly submit ratified majority elector state voting thereon 11th may 1874 governor convene extra session general assembly state 18th month pass act provide convention frame new constitution pursuant act election hold 30th june 1874 convention approve delegate choose thereto assemble 14th last july frame new constitution schedule provide election entire new set state officer manner contrary exist election law state 13th october 1874 constitution therein provide submit people approval rejection accord election return approve large majority qualify vote thereon election person choose fill state county township office governor elect 1872 term four year turn office governor choose new constitution whereupon also elect 1872 term four year claim act governor allege say proceeding new constitution make new set officer elect unconstitutional illegal void call upon provide section 4 article iv constitution protect state domestic violence congress investigate political affair arkansas decline interfere whole subject executive interference affair state repugnant public opinion feeling official capacity must use interposition must direct unless clearly side law interference become crime law support condemn without heat desire therefore necessity executive direction local affair may become unnecessary obsolete invite attention congress people united state cause effect unhappy question disposition one side magnify wrong outrage side belittle justify public opinion could direct correct survey rebuke wrong aid proper authority punish well state feeling would inculcate sooner would peace would leave state free indeed regulate domestic affair believe part citizen southern state well part disposition law abide violence either individual law exist right ignore existence violence bloodshed resistance constitute authority sympathize prostrate condition would power relieve acknowledging instance try government live oppressive one way taxation nominal improvement give benefit equal hardship impose proclaim entirely irresponsible condition violence rampant locality either justified deny could prevent theory even raise interference part general government protect citizen within state state authority fail give protection great mistake remain executive law congress provision constitution include recent amendment add thereto enforce rigor regret add one jot tittle executive duty power let fairness discussion southern question advocate political party give honest truthful report occurrence condemn wrong upholding tight soon well exist condition negro vote republican ticket know friend party many good citizen vote opposite agree great principle state separate party generally oppose negro rule delusive cry treat negro citizen voter must remain soon party divide color line principle shall complaint sectional interference report contain valuable recommendation relate administration justice court unite state invite attention respectfully suggest congress propriety increase number judicial district united state eleven present number nine creation two additional judgeship territory traverse circuit judge great business court steadily increase grow impossible keep business require attention whether would involve necessity add two justice supreme court present number submit judgment congress attention congress invited report secretary interior legislation ask domestic interest people intimately connect department either department government duty add time time become onerous without perfect system order impossible secretary interior keep trace official transaction sanction do name hold personally responsible policy adopt management indian affair know peace policy adhere beneficial result confidently hop year relieve frontier danger indian depredation commend recommendation secretary extension homestead law indian sort territorial government indian territory great majority indian occupy territory believe yet incapable maintain right civilize enlightened white man territorial form government give therefore protect home property period least twenty year final adoption ratify majority affected report secretary interior herewith attach give much interesting statistical information abstain give abstract refer report act congress provide oath pensioner must subscribe draw pension cut bounty survivor war 1812 reside southern state recommend restoration bounty number person whose name would thus restore list pensioner large old person could take part rebellion service award pension defense whole country report commissioner agriculture herewith contain suggestion much interest general public refers sly approach centennial part department ready take feel nation large interested exposition success commend congress action secure great general interest already many foreign nation signify intention represent may expect every civilized nation represent rule adopt improve civil service government adhere closely practicable opposition meet effect believe beneficial whole tend elevation service impracticable maintain without direct positive support congress generally support reform receives give support find fault rule apparently depart removal office without prefer charge party remove frequently cite departure rule adopt retention charge make irresponsible person without good ground also often condemned violation circumstance therefore announce congress adjourns without positive legislation subject reform regard action disapproval system abandon except far require examination certain appointee determine fitness competitive examination abandon gentleman give service without compensation member board devise rule regulation government civil service country show much zeal earnestness work well source mortification throw away repeat impossible carry system successful issue without general approval assistance positive law support state three element prosperity nation capital labor skilled unskilled product soil still remain u direct employment problem deserve serious attention congress employment give labor offer prosperity necessarily follow express opinion repeat first requisite accomplishment end substitution sound currency place one fluctuating value secure many interest might foster great profit labor capital induce capital employ labor question subject cheap transportation occupy attention congress much new light question without doubt give committee appoint last congress investigate report upon subject revival shipbuilding particularly iron steamship building vast importance national prosperity united state pay per annum freight passage foreign ship carry abroad expend employment support people beyond fair percentage go foreign vessel estimate tonnage travel respectively regret disparity carry trade exists correct would willing see great departure usual course government support might usually term private enterprise would suggest remedy direct subsidy american steamship line would suggest direct offer ample compensation carry mail atlantic seaboard city continent steamer would extend liberality vessel carry mail south american state central america mexico would pursue policy pacific seaports foreign seaport pacific might demand vessel build service come standard fix legislation tonnage speed quality look possibility government require time war purpose right also take possession emergency guard offer suggestion believe worthy consideration seriousness affect section interest alike anything well do direct country course general prosperity one ready second plan forward herewith find report commissioner appoint act congress approve june 20 1874 wind affair district government see report net debt district columbia less security hand available addition claim preferred government district amount estimate aggregate report board audit great part probably reject sum propriety include debt account district government thousand claim general government include portion national debt aggregate sum thus state include something funded debt chargeable exclusively district columbia act congress june 20 1874 contemplates apportionment united state government district columbia respect payment principal interest bond therefore compute precision bond debt district aggregate sum state respect bond issue outstanding certificate board audit unadjusted claim pending board reduce extent amount apportion united state government manner indicate act congress june 20 1874 especially invite attention recommendation commissioner sink fund relative ambiguity act june 20 1874 interest district bond consolidation indebtedness district feel much indebted gentleman consent leave private affair come distance attend business district able satisfactory manner conduct sure service equally appreciated entire country see accompany full report board health sanitary condition district satisfactory opinion district columbia regard ground national capital entire people interested allude urge generous appropriation district draw attention congress frame law government district magnificent scale city plan founder government manner ornamental purpose reservation street avenue lay proportion property actually possess general government think proportion expense government improvement borne general government city washington georgetown county carefully equitably define accordance section 3 act approve june 23 1874 appoint board make survey mouth mississippi river view determine best method obtain maintain depth water sufficient purpose commerce etc accordance act entitle act provide appointment commission engineer investigate report permanent plan reclamation alluvial basin mississippi river subject inundation appoint commission engineer neither board yet complete labor report receive forwarded congress without delay