RATES OF ADVERTISES. STATE RIGHTS DEMOCRAT OLDEST DEMOCRATIC PAPER IN OREGON. 1N 1 1 W 1 M J M 1 6 M 1 YR ft lit t 1 1 Inch, I I i M 6 Oil 8 D I 1st 2 In. 2 On 4 On 7 On 1Z OS j 1 HO 2 In. 3 06 8 00 Jo U0 15 00 1 T2 fie 4 In. 00 7 00 12 50 IS 00 27 00 cl. on on is on ih no 35 no C"l. 7 50 13 00 IS 00 30 m 4S 00 i Col. 10 1 on s oo 40 oo m oo 1 Col. 15 00 20 00 40 00 60 00 100 0 tciuiiii btert rntnAT, IT MART. V. BROWN. OFFICE IN PARRISH'S BLOCK. FIRST STREET. TERMS, IB abvascb t One year, $3 t Sis ' taebU), $1 ; Three tnontbs, t ; One month, 50 cents; Single Cnpiea, 12, cents. Correspondents writing over iwnl signa ture or anonymously, murt mske known tuoir proper names to the Editor, r no attention will be given to their communication!. BUSINESS CARDS. D. M. JOXES, 91. D PHYSICIAN AND SURGEON, ALBANY. OREGON. Ofirei In R- C. Hill Son's Drut: , eture. Residence : On Second itrect, touth vf Ae Cartwright Warehouse. v7n40f S. A. JOIIAS, ATTORNEY AT LAW, ALBANY. 0R.EU0X. "Office In the Court House." W. G. JONES, M. D. Homoeopathic Physician, ALBAXT, OREGON. v7n50yl. r. A. CB!oBT. Corvallis. I. H. SMITH. I.inn Co. CHENOWETH &. SMITH. ATTORNEYS AT LAW, Corvallis, Oreg-on. . fSfOrrtcm at the Court House. T6n27 JOHN J. WIIITXKY, ATTORXET .D COOSELOR IT IVS and Notary Public Special attention given to collection!. OrriCE Up ulii ra in Parrisu's Brick. Albanjr. Oregon. 3nS3tf. I. STRl't'KJiKlElt, MERCHANT TAILOR! HAVING RECEIVED FROM PORTLAND a splendid stock of goods, superior to any iu mis market, and made la the latest e York fashions, I guarantee to live satisfaction to all. L. STRCCKMEIER. n34tf GEO. R. HELM, ATTORNEY AND COUNSELOR AT LAW . Will practice in all the Courts of this State. OFFICE: ALBANY, OREGON. Nor. 11, 1870. PAPER HANGING CALCEMINING, Decorating, At. T: M. WADSWORTH WILL PROMPTLY 1' m tive attention to all orders lor Paper- Litnsiae. Caleciuininjr, Dtcurattar, le., in tliis city or vicinity. A.I wrk executed iu tne 1st est style, iu the beet manner, at the lowest lie in r rates. y-Orders left at the Furniture Warerooms of vnas. 3teaJey. will receive prumpi attention. rTnUlf C. . BEU.I9CEB. THRO. BUKBESTCB. BELLINGER & BURMESTEH, ATTORNEYS AT LAW. No. 89 First Street, PORTLAND, . - - OREGON. Special attention sien to matters in Bankrupt cy and all business in cmted Males conns. vfio24tf. G. F. SETTLEM.'ER, Druggist and Apothecary; f VEALER IN DRUGS, MEDICINES, OILS IP Paints, Window Glss. Dyestufis. Liquors Jfmnrj Soaps, Brushes, Perfumeries, Ac. FrttcriDtiois Carefully Componnded. All art cles and Drags in oar line warranted f the best quality. First street, Post Office building, Albany. julUv5n48yl SI. S. DC BOIS, H. W. eCCLLOCB. X. S. DCJ BOIS 3L CO., CONSTANTLY ON HAND AND RECEIV ING a large stuck of Groceries and Provi aions, Woodead Willow Ware, Tobacco, Cigars. Confectionery, Yankee Notions, etc., etc. Wholesale and Retail. We sell at the Lowest Lf ring Bates, and deliver free of charge throughout the city. dr-Opposito R. C. Hill A Sob's Drug Store, Albany. Oregon. jnnl0r5n43yl ALBANY BATH HOUSE 1 THE UNDERSIGNED WOULD RESPECT ffclly inform tha citizens of Albany and vi cinity thai he has taken charge of this Establish ment, and, by keeping clean rooms and paying Strict attention to business, expects to suit all tnose who may favor htm w.th their patronage. Having heretofore carried on nothing but t First-Class Hair Dressing Saloons,' ho expects to give entire satisfaction to all. 3jrChiIdien and Ladies' Hair neatly eat and shampooed. JOSEPH WEBBER. v3n33tf. SOMETHING NEW IN DENTISTRY ! DEL. E. O. SMITH, DEiiTIST, HA3 LOCATED IN ALBANY and has tbe new invention in ulate work, which consists in inserting teeth in the mouth without covering tk whi.lA roof, as heretofore. It cives the wearer tbo free use of the tongue to tbe rooT of the a oath in talking and tasting. It is tbe Smith A Purvine Detent. -Teth extracted without pain. Plates tnended. whether broken or divided. Office one door east of Conner's Bank, np stairs, v7n45tf. DEWTISTRY. GSO. W GBAT, D. X. S. DOES ALL WORK IN THE line of his profession in tbe latest, test - and most approved methods. " Anaestaetie agents used for the painless ex traction of teeth if desired. , Particular attention given to the regulation of children s teeth. a Dental consultations and examinations free. ' Satisfaction guaranteed in every ease. Call at his office and examine specimens of his work Charges moderate. Office in Parrieh'a Brick Clock, upistairs. v8nltf. JOS. ftEILItr CONSTABLE 1HD GENERAL COLLECTOR, North Portland Precinct. ' Reference by permission to the following gentlemen : Bis Honor Philip Wasserman, Mayor of the City vt Portland; Hon. Engene Semple; Dr. J, A. Chapman; Dr. J. C. Hawthorne; Dr. I. A. Davenport; I. 8. Rosenbanm & Co.; Knapp, Burrell A Co.; E. J. Jeffries; Clarke, Hender son A Cook; 8. G. Skidmore; E. Martin A Co; A, B. Richardson 4c Co.; Millard 4 Yanscnyver. ! OFFICE" 25 Washington First and Second. ' - Street, between - v7n47tf. OATS! OATS! I WILL PAY THE HIGHEST MARKET price In cash for all Oats delivered at my Bfcore. - BacKS iumiaoea. m. crtr.aiu.li VOL. VIII. THE PRESIDENT'S MESWAOE. To the Senate and Home of ltyre tentative: In transmitting to you my fourth Annual Message, it in with ' thankiulness to the Giver of all good. As a nation, we have been blessed tor the last year with peace at home and abroad, and a general pros perity has been vouchsafed to all but lew people. W ith the exception ot the recent devastating tire, which has swept from the earth with a breath, as it were, millions of accumulated weaith in the city of Boston, there have been no overshadowing calami ties wilhiii the year to record. It is gratifying to note how, like their fel low citizens ot Chicago under sim ilar circumstances a year earlier, the citizens ot loston are rallying un der their misfortunes, and the pros pect is that their energy aud perse verance will overcome all obstatcles, and show the same prosperity soon, that they would had no disaster be fallen them. Otherwise, we have been free from pestilence, war, and those calamities which often overtake nations, and as far as human judg ment can penetrate the luture, no cause seems to exist to tureateu our present peace. THE ALABAMA CLAIMS. When Congress adjourned in June last, a question had been raised by Great. Britain and was then pending, which for a time seriously imperiled the settlement by friendly arbitration of the differences existing between this Government and that of her Bri tannic .Majet'ty. The Treaty of Wash ington had been referred to the Tri bunal of Arbitration which had met at Geneva in Switzerland. The arbitra tors, however, disposed ot tho ques tion which had jeopardized the whole of the Treaty and threatened to in volve Uie two nations in unhappy re lations toward each other, in a manner entirely satisfactorily to this Govern ment, and in accordance with the views ami the policy which it had maintained. The tribunal which had convened in .December concluded us laborious session on the 14th day of September last, on which day, having availed itself of the discretionary pow er given to it by tbe lreaty to award a sum in gross, it made its decision, whereby it awarded the sum of $15, 500x00 in gtdd, as the indemnity to be paid by Great Britain to the United States for satisfaction of all daims referred to its cousideration.- lbis decision happily disposes ot a long standing difference between the two Governments, and in connection with another award made by the Ger man r-mperor, under a reference to him by the same treaty, leaves the two Governments without a shadow upon the the friendly relations which it is ray sincere hope may forever re main equally unclouded. The report of the agent ot the United Slates ap pointed to attend the Geneva Tii- bunal, accompanied by protocols of the proceedings ot the arbitrators, ar guments of counsel of both Govern ments, award of the tribunal and opinions given by the several arbitra tors, is transmuted herewith. 1 have caused to be communicated to the heads ol the Inenuly l'owers who complied with the joint request made to them under the treaty, the thanks of the Government for the ap pointment of arbitrators made by them respecting it; and also ray appreciation of the dignity, patience, impartiality and great ability with which they discharged their arduous and high functions. Her Majesty's Government has communicated to me its appreciation by Her Majesty of the ability and indefatigable indus try displayed by Mr. Adams, the arbi trator named the on the part of this Government, during the protracted inquiries and discussions of the Tri bunal. I cordially unite with Her Majesty in this appreciation. It due to the agent of the United States betore the 1 nbuual to record my ap preciaiion of the marked ability, un wearied patience and tbe prudence and discretion with which he has con ducted the very responsible and deli cate duties committed to him, as it is also due to the learned and eminent counsel who atttended the Tribunal on the part of this Government to ex press my sense ot talent and wisdom wbicb they brought to bear in the ar gument and npon the result so hap pily reached. It will be tbe providence ot (Jon gress to provide for the distribution amoDg those who may be entitled to it, of their respective shares of the money to be paid. Although it is not payable until a year from the date of the award, it is deemed ad vis able that no time be lost in making tbe proper examination of the several cases in which indemnification may be due. I consequently recommend the creation ot a Board of Commissioners for that purpose. THE 8AN JUA5T CONTROVERSY. By tbe 34th Article of the Treaty of Washington, the respective claims of the United States and of Great Britain, in their construction of the Treaty of the 15th of June, 1846, de fining the boundary line between their respective territories, were submitted to the arbitration and award of His Majesty, the Emperor of Germany, to decide which of the claims is most in accordance with the true interpreta tion of the Treaty of 1846. His Maj esty, the Emperor of Germany, hav ing , been pleased to undertake tbe arbitration, has the earnest thanks of this Government, and the people of tbe U mtcd States lor tbe labor, pains and care which he has devoted to tbe consideration of the long pending dif ference. I have caused an expression of thanks to be transmitted to His Majesty. Mr. Bancroft, the Kepre sentative of our Government at Ber lin, conducted the case and prepared tbe statement on tbe part ot the United - Stateswith tbe ability that his past services justified tbe public in expecting at bis hands. As a mem ber of the Cabinet at the date of the Treaty: which has given rise to the discussion between tbe Governments, as the Minister to Great Britain when ' he obstruction, now pronounced un founded, was Jirst advanced, ami as the agent and reprcsculutive ot the Government to present the case and to receive the award, he has been as sociated with the question in all its uiascs, ind in every stage has mani fested a patriotic zef 1 and earnestness in the maintenance of the claim of the United States, lie is entitled to much credit for the suecoss which has attended the submission. After a patient investigation ot the case and of the statement of each party, His Majesty, the Emperor of Germany, on the 21 t day of October last, signed his award iu writing, decreeing that the claim of the Government of the Jnited States that the boundary line between the territories of Her Britan nic Majesty and the United States should be drawn through tho Dellaro Channel, is most in accordance with the true interpretation of tho treaty concluded on the 5th of June, 1H4G, between tho agents of her Her Britan nic Majesty and of the United States. Copies of the caso presented in behalf of the Government and of the state ment in reply of each, and a transla tion of the award are transmitted herewith. This award confirms the United Slates in their claim to the im portant archipelago of Islands lying between the continent and Vancovcrs sland, which has been in dispute for twenty-six years, ever ssuce the ratifi cation fthe trenty. I lie claim of Great Britain has ceased and leaves us for the first time in the history of tho United States without a question of disputed bound ary between our territory ami the possesions oi Great Britain on this continent, it is my graiihc.il ion to acknowledge the prompt and sponta neous action of I ter Majesty s Govern ment in giving effect to the award. Iu anticipation ot any request irom this Government, and before the re ception ol the award signed by the r.mperor, Her .Majesty had given in structions tor the removal ot tier troops which had been stationed there, and for the cessation of all ex ercise or claim of jurisdiction so as to eavethe Lulled States in the exclu sive possession of the lately disputed territory. I am grateful to be able to announce that the orders for the re moval of the troops have been exe cuted and the military joint occupa- lion of San Juan has ceased, lhe lauds are now in the exclusive pos session of the United Stales. It now becomes necessary to complete lhe survey and determination of that por tion ot the boundary line through De Haro Channel upon which the com missioners which determined the re maining part of the line were unable to agree. I recommend the appoint ment of a commission to act jointly with one which may be named by Her Majesty for that purpose. THE ALASKA BOUNDARY. The experience of the difficulties at tending the determination of our ad mitted line of boundary after its oc cupation of the Territory aud its set tlement by those owing allegiance to the respective Governments, points to the importance of establishing by nat ural objects or other raeasurments, the actual line between the Territory acquired by purchase from Russia and the adjoining possessions of Her Brit annic Majesty. The region is now so sparcely occupied that no complicat ing interests ot individuals or ot juris diction are likely to intervene to the delay or embarrassment of tbe actual location of the line. It deferred until population shall enter and ocupy the Territory, some trivial contests of neighbors may again array tho two governments into antagonism. 1 therefore recommend the appoint ment of a Commission to act jointly with one that may be appointed on the part of Great Britain, to determine the line between the .territory of At aska and the coterminous possessions ot Great liritam. THE FISHERIES. In my last annual message I recom mended the legislation necessary on the part ot the united States to bring into operation the articles of the Treaty of Washington, of May, 1871, relating to the fisheries and other matters touching tbe relations of the United States toward the British North American possessions to be come operative so soon as proper leg islation should be had on the part of fl-nr. !..:,: .nli l .:., uicab Ullbdlll ailU IJCl jJUBBCBOIUIIO. lhat legislation on the part ot Great Britain and her possessions bad not then been had, and during the session of Congress a question was raised which for a time caused a doubt whether action by Congress in the di rection indicated would become im portant, a question which has since been disposed of, and I have received notice that thai Imperial 1'arliament and tne Legislature of the Provinc ial Government have passed laws to carry the provisions ot the treaty on the matters refrred to into operation I therefore . recommend your early adoption of legislation in tbe same di rection, to carry out the treaty on the part ot this Government. THE BOUNDARY EAST OP THE ROCKY MOUNTAINS, The Joint Commission for deter mining the boundary line between the United States and tho British Posses sions, and between the Lake ot the Woods and the Rocky Mountains has organized and went upon its work. It is desirable that the force be in creased in order that tbe completion of the survey and the determination of the boundary, line may be sooner attended to and to this end I recom mend that a sufficient appropriation De made, OUR RELATIONS WITH CONTINETAL EUROPE, ; With France, our earliest ally, Rus sia the. constant and steady -friend ot the. United States, Germany, . with whose Government and people we have Sf many common sympathies and the other powes of Europe, our relations are maintained on the most frieDdly .terms. . ''- ' ALBANY, OREGON, FRIDAY, DECEMBER 13, ' TREATIES RATIFIED. Since my last annual message an ex change has been made ot ratifications of the treaty wilh the Austro Hunga rian Empire relating to naturalization; also of a treaty with the German Em pire concerning consuls and trade marks; also of a treaty with Sweden and Norway, relating, to naturaliza tion, all of which treaties have been duly proclaimed. COMMISSIONERS TO THE STATISTICAL CONORKnS. At its last session, Congress having made an appropriation to defray the expenses of the Commissioners on the part of the United States to the In ternational Statistical Congress at St. I ctersburg, the persons appointed iu that character proceeded to their des tination and attended the session of tho Congress. Their leport shall in duo season be laid before you. This Congress meets at intervals of about three years, and has held its sessions in several of the countries of Euro)!. I submit to your consideration the propriety of extending an invitation to the Congress to hold its next meet ing in the United States. The Cen tennial celebration to be held in 170 would afford an appropriate occasion for such meting. THE VIENNA EXPOSITION. Preparations are making for tho In ternational Exposition to be held dur ing next year in icuna on a scale ot very great magnitude. The tendency ot these expositions is in the direction of advanced civilization and (he eleva- vationol industry and labor and the in crease ot human happiness, ns well as of greater intercourse and good will "- tween nations, lhe hxpositton is to be the first which will ha. e been held in Eastern Europe. It is believed that American inventors and manufactur ers will be ready to avail themselves of the opportunity for the presenta tion of tiieir productions, it encour aged by proper aid and protection. At the last session of Congress au thority was given tor the appointment of one or more agents to represent this Government at the Exposition. The authority thus civeu has been exer cised, but in the absence of any ap propriation there is danger that the important benefits which tho Exposi tion offers will in a large degree, be lost to the citizens of the United States. I commend the subject strongly to your cons-deration and recommend that an adequate appro prion be made for the purpose. To further aid American exhibitors at the Vienna Exposition, I would re commend, in addition to an appropri ation of money, that the Secretary of the -Navy be authorized to ht up two naval vessels to transport between our Atlantic cities an Trieste, or the most convenient port for ienua. the arti cles tor exhibition. Of II RELATIONS WITH MEXICO. Since your last session, the Presi dent of the Mexican Republic has died. His temporary successor has now been elected with great unanim ity by the people, a proof of confi dence on their part in his patriotism, which it is believed will be confirmed by the results of his administration. It is particularly desirable that noth ing should be- left undouo by the Gov ernment of the Republic to strength en their relations as neighbors and friends. It is much to be regretted lhat many lawless acts continues to disturb the quiet of the settlements on the border between our territory and that of Mexico, and that com plaints of wrong to American citizens in various parts of tho country are made. The revolutionary conduct in which the neighboring Republic has so long been involved, has, in some degree, contributed to this distur bance. It is to bo hoped, lhat under pa more settled rule of order through that Republic, which may be expected for the present Government, the acts of which just complaint bas been made, will cease. The proceedings of the Commission under the Convention with Mexico, on tbe 4th of July, 1868, on the sub ject of claims, have unfortunately been checked by an obstacle, for the removal of which, measures has been taken by the two governments, which, it is believed, will prove successful. The Commissioners appointed pursu ant to a joint resolution of Congress, of 7th of May last, to inquire into the depredations on the Texas f rontier, have diligently made investigation on that subject. Their reports upon the subject will be communicated to you. Their researches were necessarily in complete partly on' account of the limited appropriation made by Con gress. The President of Mexico, on lhe part of that Government, appoint ed a similar Commission to investi gate these outrages. It is not an nounced officially, but the press of that country states that the fullest in vestigation is desired, and that the oo-operation of all parlies concerned is invited to secure that end. I, therefore, recommend that special ap propriation be made at the earliest day to enabfe the commissioners on the part of tbe United States to re turn to their labors without delay. CCBAK DISTURBANCES. it is with regret that l have again to announce the continuance of the disturbed condition of the Island of Cuba. No advance toward the paci fication of the discontented portion of the population has been made. While the insurrection has gained no advantages and exhibited no more of the elements of power or .of a pros pect oi intimate success than were exhibited a year ago, Spain on the oth er band has not succeeded in its re pression, and the parties stand appar ently iu the same relative attitude which they have occupied for a long time past. This contest has lasted now for more than four years. Were it seen at a distance' from our neigh borbood, we might - be indifferent to its result, although humanity could not be unmoved by many of its inci dents wherever tbey might occur. It is however at our door ' cannot doubt the continued tnuiiitennno of slavery in Cuba is among the strong est inducements to a continuance of this strife. A terrible wrong it is the natural result of a terrible evil. The abolition of slavery and the in troduction of other reforms in the administration of tho Government in Cuba could not possibly tail to ad vanco the restoration of order. It is especially to be hoped that the pres ent Liberal Government of Spain will voluntarily adopt this view. The1 law of emancipation, which was pass ed more than two years since, has re mained unexecuted. In tha absence of regulations for its enforcement, it was but n feeble step toward emanci pation, but it was a recognition of the right and was hailed as such and ex hibited Spain in harmony wilh the sentiments of humanity and of jus tice, and in sympathy with other pow ers of the Christian and civilized world. Within the past few weeks regulations for carrying out tho laws of emancipation hive been announced, giving evidence of the sincerity of the intention of the present Government to carry into ell'eet the law of 1870. I have not failed to urge the consider ation ot the wisdom, the policy and justice of a more effective system for lhe abolition of the evil which op- Cresses a race, and continues the loody and destructive conflict close to our border, as well as the expedi ency and justice of conceding other reforms of which the propiiety is not quest oned. Deeply impressed with the convic tion that the continuance of slavery is the most active cause of the continu ance ol the unhappy condition of Cuba, I regret to beleive that citizens of the United States, or those claim ing to be such, are largo holders in Cuba of what is there claimed as property; but which is forbidden and denounced by the laws of the United States. They are thus, iu defiance of the spirit of our laws, contributing to the continuance of this distressing and sickening contest. In my last annual message I refer red to this subject, and I again recom mend such legislation as msy be prop er to denounce, if not to prevent and discourage American citizens from dealing in slaves. THE M'AXIsII AMERICAN' TREATY. It is gratifying to announce that the ratification of the convention conclud ed under the auspices of this govern ment, between Spain on the one part and the allied Republics of the Pa cific on lhe oiher, providing for an ar misiice have been exchanged. A copy of tho instrument is herewith submitted. It is hoped that this may be followed by permanent peace be tween the same parties. SOUTH AND C'EXTRAL AMERICA. The differences which at one time threatened the maintenance of peace between Brazil and the Argentine Re public it is to be hoped are in a fair way of satisfactory adjustment. i itn tnese aiaics, as wttn inn lie- publics of Central and South Amer ica, we intend to maintain the most friendly relations. It is with regret, however, that I announce that the lovernmcnt of Venezuela has made no further pay ment on account of the awards under the Convention of April 25, 1866. That Republic is understood to be now almost if not quite iratinuilized. It is hoped, therefore, that it will lose no time in procuring for tho unpaid balance ot its debt to the United States, which, having originated in injuries to its citizens by tbe Vene zuela authorities and having been ac knowledged, pursuant to a treaty, in tne most solemn lorm known among nations, would seem to be entitled to a preference over debts of a different origin and contracted in a different manner. This subject Is again rec ommended to the attention of Con gress for such actiou as may be deem ed proper. JAPAN AN D CniXA. Our treaty relations with Japan re main unchanged. An Embassy from mat interesting and progressive na tion visited this country during the year that is passing, but being unpro vided with powers for tho signing of a convention in this country, no con clusion in that direction was reached. It is hoped, however, that tho inter change of opinion which took place during their stay in this country, has led to a mutual appreciation of the interests which may be expected when the revision of the treaty shall be undertaken. In this connnction, I renew my recommendation of a year ago, that to give importance and add to the efficiency ot our diplomatic re lations with Japan and China, and to further aid in maintaining the good opinion of these people, and secure to us our share of the commerce destin ed to flow between these nations and the balance ot trade ot tbe commer cial world, an appropriation should bo made to support at least four Ameri can youths in each of these countries to serve as part of the official family of our Ministers. Our Representa tives would then be placed upon an equality with the representatives of Great Britain and some other Powers, As now, our representatives in Japan and China have to depend tor tbe in terpretations and translations upon na fives of those countries who know our language imperfectly, or procure lor tne occasion tne services ot em ployes of foreign business houses, or the interpreters to other foreign Min isters. A CHANGE RECOMMENDED. I renew the recommendation made on a previous occasion for the trans fer to the Department of the Interior, ot all tbe powers and duties ' in rela tion to territory, with which the De partment of State is now charged, by law or by custom. RELIEF OP CITIZENS ABROAD. Congress, from the beginning of the Government, has wisely made provis ion tor the relief of distressed , sea men in foreign countries.' No similar provision, however bas bees msde for 1872. the relief of citizens in distress abroad, other than seamen. It is understood to be customary with other govern ments to authorize Consuls to extend such relief to their citizens or sub jects in extreme cases. A similar au- thority and an appropriation to carry it into effect are recommended in the case of citizens of the United Slates destitute or sick under such circum stances. It is well known that our citizens resort to foreign countries in great numbers. Though most of them are able to bear the expenses in cident to the location, there are some who through accident or otherwise become penniless, and have not friends at home able to succor them. Per son. in this situation must either per ish, cast themselves upon the charity of foreigners, or be relieved at the private charge of our own officers who usually, even wilh the most be nevolent dispositions, have nothing to spare for such purposes. Should the authority and appropriation asked for be granted, care will be taken to carry the munificence of Congress into ef fect, and that it will not be unneces sarily or unworthily bestowed. CONDITION OP THE THEASCUV. The moneys received and carried into the Treasury during the fiscal year ending June 30, 1872, wer: From customs, $21,637,028,677; from sales of public lauds, $2,575, 514 19; from internal revenue, $130, 642.177 73; from tax on National Bunks, k, $0,523,396 39; fromthe Pacific Railroad Corapttuiesf,$749, 861 87; from customs, tines etc., $1,136,412 31; from fees of Consuls, patfcuts. lands, etc., $2,284,095 92; from miscellaneous sources, $4,412, 254 71; total of ordinary receipts, $364,694,229 91; from premiums on sales of coin, $9,412,637 G5j total net receipts, $374,016,837 56; balance in Treasury June 30th, 1871, $10,935. 7i'5 79, inc uding $1,822,835 received from unavailable asets; total availa ble cash, $11.042,573 15. Tbe net expenditures by warrant- drawn during tbe same period were: For civil expenses, $16,189,079 70; for foreign iuterests. $18,409,369 14; Indians, $7,065,726 88; pensions, $28,533,402 76; military establish ment, including fortifiations, river, harbor improvements, and arsenals, $31,537,215 72; for naval establish ments, including vessels and machin ery and improvements at the navy yard, $21,219,809 09; for miscellane ous civil expenditures, including public buildings, lighthouses, and collecting the revenue $12,958,329 08; interest on public debt, $118,358,- 839 72. Total, exclusive of princi pal and premium on public debt. $270,559,695 91. For premium on bonds purchased, $4,958,766 66; for redemption of the public debt $99,- 915,340. Total, $106,918,520 3J. Total net disbursements $377,478,- 216 21. Balance in tbe Treasury June 30th, 1872, $108,564,356 94. Total, $484,042,563 15. BEPfC.IOS OP THE PCBLIO DEBT. From the foregoing statement it appears that the net reduction of the principal of tbe debt.dunng tbe fis cal year ending June 30th, 1S72, was 899,960,253 54. The source of reduction is as follows: Net ordina ry receipts during the year, $364, 694,229 91; net ordinary expendi tures, including interest on public debt S270.5oy,y65 Ml. Difference, 894.134,534. Add the amount of re ceipts from premiums on 6ales of gold in excess of premiums paid on bonds purchased, $o,i47,089; add amount of the cash balance at the close of the year, accompanied with the sale at the commencement of tbe year, $337,348 65. Total, $99,960,- 253 54. This statement treats solely of the principal of the Public Debt. By the monthly statement of the Public Debt, winch adds together tbe prin cipal and interest due and unpaid and interest accrued to date, and de duct the cash in the Treasury as re corded on tbe day of publication, the reduction was $100,544,591 28 lhe source of this reduction is as follows: Reduction on principal ac counts, $90,860,003 54; reduction on unpaid interest acconnt, $3,430,057 56. Total. $103.290.85650. Reduc tion in cash on hand, $2,746,455 22 Total, $10,544,491 28. On tbe basis of the last totals, tbe statements show a reduction of the Public Debt from the 1st of March, 1869, to the pres ent time, as follows: From March 1, 1869, to March 1, 1870 $87,347, 823 44; from March 1, 1870 to March 1, 1871, $117,819,630 35; from March 1st, 1871, to March 1st, 1872, $94,- 845,348 94; from March 1st, 1872, to November 1st 1872, eight months, $64,047,237 84. Total, $363,696, 999 87. , With the great reduction of taxa tion by acts of Congress at its last session the expenditures of the Gov ernment in collecting tbe revenue will be much reduced for the next fiscal year. It is very doubtful, bow ever, whether any further redaction of b j heavy a burthen upon the peo ple will be practicable for the pres ent. At all events, as a measure of justice to holders of the Nation's certificates of indebtedness, I would recommend that no more legislation be bad upon this subject unless it be to correct the errors of omission or commission in the present laws until sufficient time has elapsed to prove that it can be done and still leave sufficient revenue to meet current ex penses of the Government, pay the interest on tbe public debt and pro vide for the sinking fund established by law. ; , THE NATIONAL CREDIT CURRENCY. ; The preservation of our nationa credit is of the highest importance. Next in importance to this comes the solemn duty to provide a nationa, currency of fixed and unvarying val ue as compared with gold as soon as practicable,2 having due' regard for the interests of the debtor class and the vicissitudes of trade and com merce, and convertible into gold at par-." .' ' NO. 18. THK WAK DEPARTMENT. The report of the Secretary of War shows the expenditures of the War Department for th fiscal year ending June 30, 1871, to be $35,79U, 991 82, and for tbe fiscal year ending June 30, 172, to be 835,372,157. 20, showing a reduction in faver of the last fiscal year of $127,834 62. Tbe estimates for military appor tionments for tbe next fiscal year ending June 30, 1873, are 833,801, 378 7. Tbe estimates of tbe Chief of Engineers are submitted separate ly for fortifications, for rivw and harbor improvements, for public buildings and grounds, aud for tbe Washington aqueduct, - - The affairs of tbe Freed men's Bu reau have all been transferred to tbe War Department, and regulations will be put into execution for tbe speedy payment of bounty and pay due to colored soldiers properly coming under that bureau. All warrants for money and prop erty issued prior to 1871, bave been examined and transmitted to the Treasury for final settlement. Dur ing the fiscal year there bas bees pa d for transportation on railroads $1,300,000, of which $8u0,857 was over the Pacific railroad. For trans portation by water, $626,373 52, and by stage $48,975 84, and for tbe purchase of transportation, animals and wagons, hire of teamsters, etc., 8921,065 74. About 83,705 have been collected from Southern rail roads during tbe year, leaving about 84.OU0.O00 still due. Tbe Quartermaster bas examined and traustnitted to the acting officers for settlement, 8367,172 72 of claims by loyai citizens for Quartermaster's stores during tbe war. Subsistence supplies to the amount of 809,412 bave been issued to tbe Indians. The annual average mean strength of tbe army was 29,129 white, and 2,494 colored soldiers. Tbe total deaths for the year are reported at 367 white and 54 colored. Tbe dis tribution of medical and surgical instruments bat yet to be ordered by Congress. There exists an absolute necessity for a medical corps of tbe full number established bv tbe act of congress, July zo, laoo, there being now nftv-nine vacancies and the number of successful candidates rarely exceed eight or ten in any one year. INTERNAL IMPROVEMENTS. River and harbor improvements bave been carried on with energy and economy, though many are only partially completed. The results have saved to commerce many times the amount expended. The increase of commerce with tbe greater depth of channels and greater security in navigation, and the saving of time adds much to the wealth of the con d try aud increases tbe resources of the Government. The bridge across the Mississippi river at Rock Island, bas been completed, and a proper site bas been determined upou for a bridge at La Crosse. Tbe able and exhaustive report made by the committee appointed to investi gate the Sutro Tunnel has been trans mitted to Congress. SIGNAL SERVICE. The observations and reports of the Signal Office bas been continued. Stations bave been, maintained at each of the principal lake ports and cities, ten additional stations Lave been established in the United States, and arrangements bave been made for the exchange of reports with Canada. and similar exchange of observations is con tern plat e with tbe est India islands. RECOMMENDATIONS OF THE SECRETARY OF WAR. The favorable attention of Congress is invited to the following recouiuieniia tions ot the Secretary of War: A discontinuance of the appointment ot extra nieo to serve an Adjutants and Quartermasters; the adoption of n code providing a specific peoalty for we 'I de li a ed offences, that the inequality of scoteoca, adjudj-ed by Courts Martial, may be adjusted; the considerations of the accouuls uuder which expenditures i are made as a measure of economy; a reuppropriatiou of the money for con struction of a depot at San Antooio, the title to the sile now being perfected; special act placing the cemetery at City of Mexico on the same basis as other national cemeteries; authority to pur chase sites for military posts in Texas; appointment of Commissary Sergeants for noa-comuiissioued officers as a measure for the security nod better care and protection of supplies; an appro priation for eutalogues; a table of the anatomical seetioa of arms and medi cal museum; an appropriation of suffi rieut amouut for the manufacture- of breech-loading arms, should the selec tion be so formed by the board of offi cers as to leave the former appropria tions expended at the close of the fiscal year; the sales of such arsenals east of the Mississippi as can be spared, and the proceeds applied to tbe establish lishuient of one large arsenal of con struction and repair upou the Atlantic coast, . aud the purchase of a suitable site for an approving aud experimental ground for heavy ordnance; the abroga tion of laws which deprive inventors iu the United States service from deriving benefits from their. inventions; the re peal of law prohibiting promotions ia the staff corps; a continuance of work upon coast defences; the repeal of the seventh section of tbe act cf July 13th, 1866, taking from the engineer soldiers the per diem granted other troops; a limitation ' of time for Lhe preservation of subsistence supplies under tbe act or juiy itn, iooi, ana a modification in the mode of selec tion of cadets for the Military Acad emy in order to enhance the useful ness of the Academy, which is im paired by reason of the large amount of time necessarily expended in giv ing new cadets a thorough knowl edge of the mere elementary branch es of learning, which they should acquire before entering tbe Acade- also tr appropriation- for rtilo- Business notices in the Local Columns, 35 tent per line. eav-b insertion. fur legal anil trnniK-m lulTerti'einrr-'s t2 50 er qure of 12 lin. fr the (m inMrtwn aud ft OU pera'jaare fur each subsequent In ertion. ' sopliical apparatus and an increase in the number and pay of ttucbars at the Military Academy. TRANSPORTATION TO THE SEA COAST. The attention of Congress will bet-ailed during its present session, tc the various enterprises for the more certain and chenj er transportation of the eonstantly iiw-reasiLg snppKes of western and southern product to th& At Lin tic seaboards. The subject i one that will force itself upon the legislative branch of the Governroect soout r or later, and I suggest, there fore, tbat immediate steps be taken to gain uvaiiubl- information to se cure equitable and just legislation for" line- U connect the Mississippi Val ley with the Atlantic at Charleston, South Carolina, and at Savannah, Georgia, by way of tbe Oiii and Tennessee rivers, by canals aud black water navigations. The Savannah and Ocmulgfte rivera have been -surveyed, and tbe report made by an accomplished engineer and officer of tbe army. A second and a third new route will be proposed for the con sideration of Congress, viz., by an extension of the Kanawha and James River Canal to the Ohio, and by tbe extension of the Chesapeake and Ohio, Canal. I am not prepare! to recommend Government aid to these or other enterprises, until it is clear ly i hown that they are not only of National interest, but tnst, wben completed, tbey will be of a value commensurate with their cost. That production increases more rapid) than the means of transportation in our country, bas been demonstrated by past experience; that tbe unprece dented growth in population and products of tbe whole country, will require adidtional facilities aud cb aoer means for tbe more bully articles of commerce o re icb tide wa ter, and that a market will be de mandel in the near futuie.is equally demonstrated. I would therefore suggett, that either a committee or a commission be organized to consider this whole question, and rei-ort to Congress at some future day for iu better guidance in legislating on this important subject. Tbe railroads of tbe country bave been rapidly extended during the last few years to meet the growing demands of producers, and they re flect much credit utwn tbe capitalists- I and managers engaged in their con struction. In addition to these, a project to facilitate commerce by the building of a nhip canal around Ni agra Falls on the United States side, whieli ha been agitated for many years, will no doubt be called to your attention this session. LASD-LOCSXD XAVIGATIOX OS THE SEA COAST. Looking to the great future ef the country and the increasing demands of commerce, it might be well-while on the subject not only to ,have ex amined the reports upon tbe vari ous practicable routes for connecting the Mississippi with tide water on thv Atlantic, but tbe feasibility of almost coutiDued land-locked navigation from Maine to the Gulf of Mexico, Such a route along our coast would be of great value at all times and of inestimable value in case of a foreign war. Nature bas provided the great er part of this route and tbe obsta cles to be overcome are easily within the skill of the engineer. I have not alluded to this subject with the view of hating any further expenditure of the public money at this time than may be necessary to procure and place all necessary information be fore Congress in an authentic form to enable it hereafter, if deemed practicable and worthy, to legislate on the subject without delay. THE xavs. - Tbe report of the Secretary of the Navy herewith accompanying ex plains fully tbe condition of that branch of the public service, its wan t and deficiencies, tbe expenses incurr ed during tbe past year and necessa ry appropriations for the same. It also give-s a complete history of the services of the Navy for the past yer. It is evident that unless step are tanen to preserve our iaryt in a very few years tbe United States will be the weakest nation upon tbe ocean of all the great JPowers. With an energetic, progressive., business peo ple like ours, penetrating and form ing business relations with every part of the known world, a Navy strong enough to command the respect of our flag abroad, is necessary lor the full protection of their rights. THE FOSTOFFICE DEPARTMENT. ' I recommend the careful consider ation by Congress of tbe recommen dations made by the Secretary in the accompanying report of the "Post master General. It furnishes a full and satisfactory exhibit of the opera tions of the Postoffic Department during the year. The ordinary rev enues of the department of the fiscal ' year ending J une 30, 1872, amounted to $21,915,426 37, and expenditures to $26,658,191 21. Compared with ' tbe previous fiscal year, the increase., of revepue was $1876,380 95, and she increase of expenditures. $2,268, 087 23. Adding to the ordinary ev enues of the annual appropriation of I $700,000 for free matter, and the amounts paid as subsidies to mail steamship lines from special appro priations, the deficiency paid out of the general treasurv was $3,317,765, 94, an excess of $289,701 28 over the deficiency for the year 1871. . Other interesting statistics relating: to the rapidly extending postal ser vice, are furnished in this report. The total length ef railroad mail routes on the 30th of Jane, 1872, -was 57,9118,007 additional miles of such services having bees put in to operation during the year. Eight new lines of railway postoffices have been established, with an aggregate- length of 2,909 miles, -The number . of letters exchanged by tbe mails- , with foreign countries was 24,365,--500. an increase of 4,066,502. or 2l L5! r er ce&t. over &4 cumber in 171.