THE PRESIDENT'S MESSAGE. Washington, Dee. 5. Following is the President's Message to the donate and House: restoration or Tin: union. To the Senate and JTov.se of lit p.-- - n In tires in Congress Assembled:' A year of peace and general proxperliy to the nation lias passed since the last as sembling of Congress. Wo have, through a kind Providence, been blest with abund ant crops, and have been spared from com plications and war with foreign nations. In our midst comparative haimouy lias been restored. It is to be regretted, how ever, that a free exercise 'of the elective franchise has by violence and intimidation been denied to citizens in exceptional ease, and in several of the Stales lately in rebel - ton, and the verdict of the people has t hero by been reversed. TheSta'eof Virginia, Mississippi and Texas have been resided to representation in our national councils. Georgia, the only State now without repre sents t inn . tun v con fident 1 v he exnected f take her place'there, also.at the boginningof tne new year; ana tnen let us nope, win ue completed the work of reconstruction with an acquiescence on the part of the whole people in the national obligation to pay tne public debts, created as the price of our Union, the pensions of our disabled sol diers and sailors and their widows and orphans, and in the changes to the Consti tution, which have been made necessary by the great rebellion. There is no reason why we should not advance in material prosperity and happi ness as no other nation did after so pro tracted and devastating a war. AMERICAN PROTECTION TO foiieigxees IX FRANCE. Soon after the existing war broke out in Europe, the protection of the United States Minister in Paris was invoked in favor of the North Germans domiciled in French territory, and instructions were issued to grant the protection. This has been fol lowed by an extension of American pro tection to citizens of Saxony, Hesse and Saxe-Coburg, Gotha, Columbia, Portugal, Uruguay, the Dominican Republic, Equa dor, Chili, Paraguay and Venezuela, in Paris. The charge was an onerous one, re quiring constant and severe labor, as well as the exercise of patience, prudence and good judgment. It has been performed to the entire satisfaction of this Government, and as I am officially informed, equally so to the satisfaction of the Government of North Germany. ATTITUDE OK THE UNITED .-TAXES TOWAIil) FRANCE. As soon as I learned that a republic had been proclaimed in Paris, and that the peo ple of France had acquiesced hi" the change, the Minister of the United Slates way di rected by telegraph to recognize it and tender my congratulations and those of the people of the United States. The re-establishment in France of a system of gov ernment disconnected with the dynastic traditions of Europe, appeared to be a proper subject for the felicitations of Amer icans, and should the present struggle re sult in attaching the hearts of the French to our simpler forms of Representative Government, it will be a subject of" still further satisfaction to our people. While wo make no effort to impose our institu tions upon the inhabitants of other coun tries, and while we adhere to our tradition al neutrality in civil conflicts elsewhere, we cannot be indiiferent to the strength of American political ideas in a great and highly civilized country like I ranee. PROPOSAL FOR Til E UNITE!) STATES TO MEDIATE IX EUROPEAN AFi'AII'.S. We were asked by the new. Government to use our good offices, jointly with those 01 tne j.uropeau lowers, m me ju..cjc.-l m peace. An answer was made that the es tablished policy and true interests of the United States forbade ;hcm to interfere in European questions jointly with European Powers. 1 ascertained, informally and nnofiicially, that the Government of North Germany was not then disposed to listen to such representations .from any Powers, and, though earnestly wishing to see t lie blessings of peace restored to the belliger ents, with all of whom the United Stales are on terms of friendship, 1 declined, on the part of the Government, to take a step which could only result in injury to our true interests, without advancing the object for which our intervention was invoked. Should the time come when the action of the United States can hasten the return of peace by a single hour, that action will be heartily taken. XECTBALITY. I deemed it prudent, in view of the num ber of persons of German and French birth living in the United States, to issue, soon after the official notice of a state of war had been received from both belliger ents, a proclamation defining the duties of the United States as a neutral, and the ob ligation of persons residing within their territory to observe their laws and the laws of nations. The proclamation was follow ed by others, as circumstances seemed to call for them. The people, thus acquainted in advance of their duties and obligations, have assisted in preventing violations of the neutrality of the United States: FRAXCO-G ERMAX RELATIONS IX CHINA. The massacre of French and Prussian residents at Tientsin, under circumstances of great barbarity, was supposed by some to have been premeditated and to indicate a purpose among the populace to exterm inate foreigners in the Chinese Empire. The evidence fails to establish such a sup position, but shows a complicity between the local authorities and tiie mob. The Government at Pekin, however, seems to have been disposed to fulfill its treaty obli gations so far as it was able to do. I nfor tunately the news of the war between the German States and France reached China soon after the massacre. It would appear that the popular mind became possessed with the idea that this contest, extending to Chinese waters, would neutralize the Christian influence and power, and that the time was coming: when the superstitious mass might expel all foreigners and restore Mandarin influence. Anticipating trouble, I invited France and North Germany to make an authorized suspension of hostili ties in the East, where they were tempora rily suspended bv act of the commanders, and to act together for the future-promotion in China, of the lives and propeity of Americans and Europeans. AMERICAN-RRITISH TREATIES RATIFIED. Since the adjournment of Congress, the ratifications of the treaty with Great Brit ain, for abolishing the mixed courts for the suppression of the slave trade, have been exchanged. It is believod that the slave trade is confined to the eastern coast of Vfrica, whence the slaves are taken to Ara bian markets. The ratifications of the nat uralization convention between Great Brit ain and the United S'ates have also been exchanged during the recess, ami thus a lorn standing dispute between the two gov ernments has been settled in accordance with the principles always contended lor bv the United States. XEW BOUNDARY QUESTION. Ill pril, while engaged in locating a Militarv Reservation at Pembina, a corps Qf engineers discovered that the common- ly received boundary line between the Uni ted States and British Possessions a that place is about 5,700 . feet south of the true position of the zenith parallel, and th'e iine when run on what is now supposed to be the true position 'of that parallel, would leave the fort of the Hudson Ray Company at Pembina within the territory of the United States. This informatioYi being communicated to the British Government, I was requested to consent, and I did con sent, that the British occupation of the fort of the Hudson B ay Company, should con tinue for the present. I deem it import ant, however, that this part of the bounda ry line should' be definitely settled by a commission of the Governments, -and. I submit herewith estimates of the expenses of such a commission on the part of the United States, and recommend an 'appro priation for that purpose. The land boun dary is already fixed and marked irom the summit of th'e Rocky Mountains to Geor gian Bay. It should" now be in like man ner marked from the Lake of the Woods to the summit of the Rocky Mountains.-. THE ALAliAMA CLAIMS. I regret to say no conclusion has been reached for adjustment of the claims against Great Britain, grow ing out of the course adopted by that Government during the rebellion. The Cabinet of London, so fur as its views have been expressed, does not appear to be willing to concede that Her Majesty's Government was guilty of negli gence, or did, or permitted any act during the war by which the United States has just cause of complaint. Our linn and un alterable convictions are directly tiie re verse. 1 therefore recommend to Congress to authorize the appointment of Commis sioners to take proof of the amounts and ownership of vessels, and their claims, and thai authority be given for tho settlement of these claims by-the United States, so the Government shall have the ownership of the private claims as well asthe respon sible control of all demands against Great Britain. Whenever Her Majesty's Gov ernment shall entertain a desire for a full and friendly adjustment of these claims, the United States wil enter upon their con sideration with an earnest desire for a con clusion consistent with the honor and dig nity of both nations. THE REVOLUTION IX i'URA. It is not understood that the condition of the insurrection in Cuba has materially changed since the close of the last session of Congress. In an early stage of tho con test the authorites of Spain inaugurated a system of arbitrary arrests, of close con finements, of military trial, and executions of persons suspected with complicity with insurgents, and of summary embargo of their properties and requisitions of their revenues by executive warrant. Such pro ceedings, as far as they cil'ect the persons or property ot citizens ot the united Suites, were in violation of the provisions of the treaty of 17'J") between the United States and Spain. Representations of inju ries resulting to several persons claiming to be citizens ot the united States by rea son of such course, were made to the Span ish Government from Apri!, ISfJo, to June last. The Spanish Minister at Washington has been clothed with a limited power to aid m redressing such wrongs; but tin: ower was found to be withdrawn in view as it was said, of the revolutionary silua tion in w hich tiie Island of Cubathuii was which, however, did not lead to the sus pension of the extraordinary and arbitrary fundi ns excee led by the executive power of Cuba, and we were obliged to make our complaint at Madrid, and in the negotia tions i bus opynod and still pending there, the United States onlj' claimed that, for the ititure, the riuht-v secured to then citizens by treaty, should be respected in Cuba, and that as to the past, a joint tribunal should be established m the United Suites, v.uh fuil jurisdiction overall sucn claims before such impartial tribunal. The claim ants would be required to receive his case on the oilier hand, Spain would bo at lib erty to traverse every material foot, and thus complete equality would be done. EXTR ADITIOX TKEATI ES. The policy referred to, il is presumed, will engage your earnest attention. It is the obvious "interest, especially of neigh boring nations, to provide against injury to those who may havecommitted high crimes within their 'borders and who may have sought refuge abroad. For this purpose extradition treaties have been concluded with several of the Central American Re publics, and others are in progress. THE VENEZUELAN CLAIMS. The sense of Congress is desired as early as may be convenient on the proceedings of theCom mission on tho Claims against Venezuela, as communicated in the mes sage of March 4th, 18U9, and March 1st, 1S70, and March 31st, 1870. It has not been deemed advisable to distribute any of the money which has been received from that Government until Congress shall have acted on the subject. A CLAIM' DISPOSED OF. A case which at one time threatened se riously to affect the relations between the United States and Spain, has already been disposed of. This was the claims of the Lloyd Aspinw all for illegal seizure and de tentien of that vessel. It was referred to arbitration by mutual consent, and has re sulted in an award to the United Statos, for the owners of the same, of 810,702 in gold. Another and long pending elaini of like nature, that of the whale-ship Canada, has been disposed of by friendly arbitra tion during the present year. It was re ferred by the joint consent of Brazil and the United States, and the action of Sir Edward Thornton, Her Britanic Majesty's Minister at Washington, who definitely undertook the laborious task of examining the immense mass of correspondence and testimony submitted by the two Govern-, merits, and awarded to the United States the sum of 100,700 09 in gold, wdiieh has since boen paid )y the Imperial Govern ment. These recent examples show that the mode which we have proposed to Spain for adjusting the pending claims, is just and equitable, and that it maybe agreed to by these nations withont dishonor. It is to be hoped that this moderate demandmay be acceded to by Spain without further delay; should the pending negotiations unfortu nately and unexpectedly be without re sult, it will then become 1113' duty to com municate that fact to Congress, and invito its action on the subject. RELATIONS WITH THE .SOUTH AMERICAN REPUBLICS. The long-deferred Peace Conference be tween Spain and the allied South Ameri can Republics has been inaugurated m Washington, under the auspices of the United States, pursuant to the recom mendation contained in the resolution of the House of Representatives of the ah ot December, lStfii. The Executive Depart ment of the Government proffered its friendly offices for tho promotion of peace and harmony between Spain and the allied Republics; hesitations and obstacles oc curred to the acceptance of the otler; ulti mately, however, a Conference was ar ranged, and was opened in this city on the 2th of October last, at which I authorized the Secretary of State to preside. It was attended by the Ministers of Spam, 1 eru, r-biio ami 1-Vnn.idftr. Iii eonseoiience of the absence of a Representative from Bolivia, the Conference was adjourned vnv li! tho attendance of a Plenipotentiary from that Republic could be secured, or other measures could be -adopted toward attaining its object. Thealliod and other Republics of Spanish origin ou this continent may see in this fact a 1 lev, "proof ofour sincere interest in their wf ll ii -. :uid of our desire to see them ble.-x-d wit ii good Governments,', capable of muinra-iuing order and preserving their respective territorial integrity, and of our sincere wish to extend- our o-.vn commer cial and social relations with them. . The time is probably not far distant when, in the natural ourso of events, life European political connections with this continent will cease. ' Our policy should be shaped in view of this probability, so as to ally the commercial interests of the Spanish American Stales more closely to our own, and thus give the United States all the pre-eminence and all tho advantages which Mr. Monroe, Mr. Adams and Mr. Clay contemplated when they proposed to 10m the Com '.ress 01 Panama. ION. OF SAX DOM ixuo. PROPOSED ACQUIS!'; During the last session of Congress, a treaty for the annexation of the Republic of San Domingo to the United States, failed to receive the requisite two-thirds vote of the Senate. I was thoroughly con vinced then that the best interests of the country, commercially and materially, de manded its ratification.' Time has only confirmed me in this view. I now firmly believe that the moment it is known that the United Suites have entirely abandoned tho project of accepting as a part of its ter ritory the Island of San Domingo, a free port will be negotiated for by European nations, in the bay of Samaria. A large commercial city will spring up, to which we will be tributary, without receiving cor responding benefits, by the more than folly of our rejection. It is" agreed the Govern ment of San Domingo has voluntarily sought this annexation; it is a weak pow er, numbering probably less thanone hun dred and twenty thousand souls, and 3-et possessing one of the richest localities un der tho sun. capable of supporting a popu lation of ten millions of people in luxmy. The people of San Domingo are not capa ble of maintaining themselves in their present condition, and must look for out side support. They yearn for the protec tion of our free institutions and laws, our progress and civilization. Shall we refuse them? The acquisition of San Domingo is desirable becairse of its geographical posi tion; it commands the entrance to the Car ribean Sea, and tiie Isthmus transit of com merce. It possesses the richest soil, the best and most capacious harbors, most sa lubrious climate, and the- most valuable products of the forests, mines, and soil of any of the West India islands. Its posses sion by the United States will, in a few years, build up a coastwise commerce of immense magnitude, which w ill go far to ward restoring to the United States our lost merchant marine. It will give to us those articles w hich we consume greatly, and do not produce, thus equalizing our exports and imports. In case of a foreign war, it will give us command of all tiie islands re ferred to, and thus prevent any enemy from again possessing himself of a rendezvous upon our coast. At present our coast trade between the SUites bordering on the Atlantic and those on the Gulf of Mexico is by the Bahamas and the Antilles. Thus wo must, as it were, pass through foreign countries to get by from Georgia to the east of Florida. San Domingo with a stable government, under which her immense resources can be devel oped, will give remunerative wages to ten thousand laborers, not now upon the island. This labor will take advantage of every available means of transportation to abandon the adjacent islands, and seek the blessings 'ot its" freedom, and, as a conse quence, each inhabitant receiving the re ward of his own labors, Porto Rico and Cuba will have to abolish slavery as a measure of self-preservation to retain their laborers. San Domingo will become a large coii- senier of the nroducts of the Northern farms and manufactories. The cheap rate at which her citizens can be furnished with food, tools and machinery, will make it necessary that the contiguous islands should have rtie same advantages, in order to compete with the production of sugar, coffee, tobacco and tropical fruits. This will open to us a wider market for our pro ducts, and the production cf our supply of theso articles will cut oil" more than one hundred millions of our annual imports, besides largely increasing our exports. With such a picture it is easy to see how eur large debt abroad is ultimately to be extinguished. With a balance of" trade against us, including tho interest on bonds held by foreigners, and money shipments to our citizens traveling in foreign lands, equal to the entii3 yield of precious metals in this country, it is not so easy to see how this result is to be otherwise accomplished. Tho acquisition of San Domingo is an ad hesion to the Monroe Doctrine; it is a mea sure of national protection; it is asserting our just claim to a controlling iniluence over the great commercial traffic soon to flowT from the West to the East, by way of the Isthmus ot J)arien; it is to build up our merchant marine; it is to furnish new mar kets for the products of our farms, shops and manufactories; it is to make slavery insupportable in Cuba and Porto Rico at once, ana ultimately so in urazii; it is to settle tho unhappy condition of Cuba, and end an exterminating conflict; it is to pro vide an honest means of paying our hon est debts, without' overtaxing the people; it is to furnish our citizens with the neces saries 01 every-uay me at cneaper rates than ever before, and it is, in fine, a rapid stride toward that greatness which the in telligence, industry and enterprise of the citizens ot the United States entitle this country to assume among nations. In view of the importance of tins ques tion, I earnest urge upon Congress early action, and an expression of its views as to the best means of acquiring San Domingo. HOW THE ACQISITION MAY RE MADE. Mv suggestion is, that bv a joint resolu tion of the two Houses of Congress the Ex ecutive may be authorized to appoint a commission to negotiate lor a treaty witn the authorities of San Domingo lor the ac quisition of that island; that an appropria tion be made to aenay tne expenses 01 such commission; that the question may then be determined by the action of the two Houses of Congress upon a resolution of annexation, as in the case of the acqui sition of Texas. So convinced am I of all the advantages to flow from the acquisition of San Domingo, and the great disadvanta ges (I might almost say calamities) from its non-acquisition, that I believe the sub ject has only to be investigated to be ap proved. Til K " FREE ZOXE' OF MEXICO. It is to he regretted that our representa tions in regard to the injurious effects, es pecially upon the revenue of the United States, of the policy of tho Mexican Gov ernment in exempting irom import unties a large tract of its territory on our borders, have not only been fruitless, but that it is even proposed in that country to extend the limits within which the privilege ad- vertea to nas nunerio been engaged, me expediency of looking into and giving your serious consideration to the proper means t'ov countervailing this scheme.(?) THE CURRENCY AX I) TIIE BANKS. At tho last session of Congress I respect fully recommended that an appropriation be made, and authority given to issue new bills, upon such paper and in such form as may be designated. Tho Secretary of the Treasury, through the Comptrollerof Cur rency, in ids report of 18G!, recommended the establishment of an agency in the city of New York, under control of the Natioi a' Banks, for the redemption of their issue. The substance of this recommendation seems to be that it is not enly proper but necessary, and that the expeure should be borne by the Banks. . . . Coupled with this 'recommendation, I take this occasion to say that the banking system of the country appears to be well managed, ami to answer reasonably the purpose for which it was established. It is no doubt true that the Treasury notes, in representing an equal amount of the public debt without interest, are the most economical circulation for theGovernment; but it should be considered that tho bank ing institutions of the country are the agencies by w hich business is established and fostered. Tiie whole system of bank ing should be extended only for the pur pose of meeting the demands of business, but when the demands are urgent, a ton cession should be made, upon the ground that prosperity of business is more impor tant than the mere savin" of interest aris ing from the circulation of Treasury notes. REVIVAL OF AMERICAN COMMERCE. Our depressed commerce is a subject to which I called your special attention at the last session, and suggested that it would, in the future, have to look more to the countries south' of us and to China and Japan, for its markets. Our representa tives to all these Governments have exerted their influence to encourage trade between tho United States and the countries to which the' are accredited, but the fact ex ists, that tho carrying is done almost en tirely by foreign bottoms, and while this state of attains exists, we cannot control our due share of the commerce of the world. That between the Pacific States and China and Japan, is about all the car lying trade now conducted in American vessels. I would recommend a liberal policy toward that line of American steam ers one that will insure its success and its increased usefulness. The cost of building iron vessels the only ones that can com pete with foreign ships in tho carrying trade- is so much greater in the United States than in foreign countries, that with out some assistance from the Government, they cannot bo successfully built here. There will be several propositions laid be fore Congress in the course of the present session, looking to a remedy for this evil; even if it should be at some cost to the Na tional treasury, I hope such encourage ment will be given as will revive American shipping on the high seas, and American ship-building at home. NEW BUILDING FOR STATE DEPARTMENT. The condition of the archives of the De partment of State calls for the early action of Congress. The building now rented by that Department is a frail structure, at an inconvenient distance from the Executive mansion, and from the other Departments; it is ill-adapted to the purposes for which it is used; lias not capacity to accommodate the archives, and is not fire-proof. Its re mote situation, its slender construction and absence of a sunnly of water in the nidi- boriiood, leaves but little hope of safety for either tho building or its contents, in case of the accident of a fire; its destruction would cause the loss of the rollseontaininjr the original Acts and Resolutions of Com gress, ot the .history and records of the Revolution and of" tho Confederation, of the whole series of diplomatic and consu lar archives since tho adoption of the Con stitution, of the many other valuable records and papers left with that Depart ment when it was the principal depository of the Government archives. I recommend an appropriation for the construction of building for the Department of State. CHAXGES IX DEPARTMENTS RECOMMENDED. I recommend to your consideration the propriety of transferring to the Depart ment 01 1110 interior, to winch they seem more properiy 10 belong, all powers and duties in relation to tho Territories with which the Department of State is now charged by law of usage, and from the In terior Department to tho War Department tho Pension Bureau, so far as it regulates the payment of soldiers' pensions. I would further recommend that the pa3'inent of naval pensions be transferred to one of the bureaus of tho navy. EXPENSES OF THE GOVERNMENT. Tho estimates for the expenses of the Government for the fiscal year are 1S,24I, 34S 01 less than for the current one, but ex ceeds the appropriation for the present year, for the same items, .ss9,721 in this; the estimates, however, included 22,:J3S, 27S 37, for public works heretofore begun under Congressional provision, and of which only so much is asked as Congress may choose to give. The appropriation for the same work for the prosent fiscal year, was SHS,451,S0S. RETURN TO SPECIE PAYMENT. The average value of gold, as compared with national currency for the year IStjO, was about 134, and for the eleven months of 1S70 the same relative value has been about 115. This approach to a specie basis is very gratifying, but the fact cannot be denied that the instability of the value of our currency is prejudicial to our prosper ity and tends to keep up prices to the det- riment of trade. The evils of a denreci-i ated and fluctuating currency are so great, mac now, wnen tne premium on gold lias fallen so much that it would seem that the time has arrived when by prudent legisla tion Congress should lodk to a policy which would place our currency at par with eold at no distant day. REDUCTION OF TAXATION. The tax collected from the people has been reduced more than eight million dol lars per annum, by steadiness in our pres ent course; there is no reason why, in a few short years, the mational tax-gatherer may not disappear from the door of the citizens almost entirely. With the revenue stamps dispensed by postmasters in every community, a tax upon liquors of all sorts, and tobacco in all its forms, and by a nice adjustment of the tariff, which will put a duty only upon those articles which we could dispense with, known as luxuries, and on those w hich we use more of than we produce, revenue enough may be raised after a few years of peace anil consequent reduction of indebtedness, to fulfill all our obligations. REVENUE REFORM. In addition to this, a reduction of inter nal accounts may be relied on to make this practicable. Revenue reform, if it means this, has my early support; if it implies a collection of all the revenue for the sup port of the Government, for the payment of principal and interest of tax, public debt, pensions, Ac, by direct taxation on the people, then I am against revenue re form, and confidently believe the people are with me. If it means failure to pro vide the necessary means to defraj- all ex penses of the Government, and thereby re pudiate the public debt, then I arn'still more opposed to such a kind of revenue. Revenue reform has not been defined by any of its advocates to my knowledge, but seems to be accepted as something w hich is to supply every man's Wants, without any cost or elicit on his part. A tri:e revenue reform cannot be made in a day, but must be the work of National legisla tion, and of time. As soon as the revenue can be dispensed with, all duty should be removed from coffee, tea and other articles of universal use, not produced .by our- ncCeSSities ot !lm 'M.ntifr selves. The compel us to collect revenue from our im ports. An army of assessors and collectors is not a pleasant sight to the -itizns, but that, or a tariff for revenue, is necessary. Such a faritf, so far as it acts as an encour agement to home products, -affords employ ment to the laborer at living wages, in contrast to the pauper labor of tho Old World, and also in the development of home resources. EXPENSES AND ESTIMATES AND XAVV. OF THE ARM Y Under tho Act -of Congress of the R h of July, lb. 0, tne army has gradually been reduced, so that on the 1st of January. 1871, tuenumuoi o; commissioned ofiieers and men, all will not exceed the number con templated by that law. The Department ljuilding is an old struc ture, not lire-proof, and entirely inadequate in dimensions to our present wants. Main thousands of dollars are now paid annually for rent of private buildings to accommo date the- various bureaus of the Depart ment. I recommend an appropriation for a new War Department building, suited to the present growing wants of the nation. The report of tho Secretary of War shows a very satisfactory reduction in the ex penses of the army for the last fiscal year. For this 3-ou are referred to his accompany ing report. The expeuscs'of the navy for the whole of the last year, from Dec. 1st, IMP, the date of the last report, are loss than nine teen million dollars, or about one million less than they were the previous year. The expenses since tho commencement of this fiscal year, since July 1st, show for the five months, a decrease of over S2, 100.000 from those of the corresponding months of last year. The estimates for the current year were S2S,20.",(78 05; those for the next year are S20,GS2,317, with J35,100 additional for necessary permanent improvements. These estimates are made closely for the maintenance of the naval establishment as it now is, without much in the nature of permanent improvements. The appropriation made for the current years were evidently intended by Congress (and are sufficient) to only keep the navy 011 its present footing, by tho repairing and refitting of our old ships. This policy must, of course, gradually but surelv destroy the navy, and it is in itself far from economical, as each jTear that it is pursued the necessity for more lepairsin ships and navy j'ards becomes more im perative and more costly, and our current expenses are annually increased for the mere repair of ships, many of which soon become unsafe and useless. PLEA FOR A MORE FORMIDABLE NAVY. I hope, during the present session of Congress, to be able to submit to it a plan by which naval vessels can be built and repairs made with a great saving upon the present cost. It can hardly be wise states manship in a Government which repre sents a country with over five thousand miles of coast lino in both oceans, exclu sive of Alaska, and containing 40,000,000 of progressive p progressive people, with relations of every i - - l . . hiatlire witn aIniost every foreign country, i. iwi nun .intii jiitiueijuiiie means 01 en forcing any foreign policy, either of pro.ee rion or redress. Separated bv the ocean l'rom the nations of the Eastern Continent, our navy is our only means of direct pro tection to our cuizens auroad or lor tne en forcement of any foreign policy. THE POSTAL SERVICE. The accompanying report of the Post master General shows a most satisfactory working of the Department. With the adoption of the recommendations con tained therein, particularly those relating to a reform in the franking privileges, and the adoption of correspondence cards, a self-sustaining postal system may speedily be looked for, and, at no distant day, a further reduction of the cost of postages at tained. I recommend the authorization by Congress to the Postmaster General and Attorney General to issue all commissions to officials appointed through their respect ive departments. At present these com missions, where appointments are Presi dential, are issued by the State Depart ment. The law in all the Departments of th Government, except those of the Post office and of Justice, authorizes each to is sue its own commissions. CANADIAN MONOPOLY OF AMERICAN FISH ERIES. The course pursued by the Canadian Government toward the fisheries of the United States, during the past season, has not been marked by a frienuly feeling.' By the first article of the Convention of 1818, between Great Britain and tho U States, it was agreed that the inhabitants of the United States should have forever, in common with British subjects, the right of taking fish in certain waters, not includ ed in the limits named in the Convention. within three miles of ports on the British coast. It has been Uiepiistoni ihrmanv years to give intruding fishermen from tho United States, a reasonable warnins? of Mm technical rights of Great Britain. llie Imperial Government is understnod to have delegated the whole or a share of its jurisdiction or control of these in-shorn grounds, to the colonial authoritv known as the Dominion of Canada, and this same independent, out irresponsible agent, has exercised its delegated powers in an un friendly way. Vessels have been seized, without notice or warning, in violation of the custom previously prevailing, and have been taken into the colonial oort. their voyages broken up, and the vessels condemned. There is reason to believe that this unfriendly treatment was designeli to near narsmy on tne L mted States, with a view to a political etrect upon this Gov ernment. The statutes of the Dominion of Canada become still broader and more untenable in their jurisdiction over vessels of the United States; they authorize ofiieers or persons to bring vessels hovering within three marine miles of any of the coasts, bays, creeks or harbors of Canada, jnto port, to search the cargo, to examine the master ou oath, touching the cargo and voyage, and to inflict upon him the levy of a pecuniary penalty. If answers are not given, and if such a vessel is found pre paring to fish within three marine leagues of any such coasts, bays, creeks or harbors, without a license, or after the expiration of the period named in the last license grant ed, they provide that the vessel, with her tackle, etc., shall be forfeited. It is not known that any condemnations have been made under these statutes. Should the authorities of Canada attempt to enforce them, it will become my duty to take such steps as may be necessary to protect the rights of the United States. It has been claimed by Her Majesty's of ficers, that the fishing vessels of the United States have no right to enter the open ports of the British Possessions in North Ameri ca, except for the purpose of shelter and repairing damages, of purchasing food and obtaining later news;" that they have no right to enter at the British Custom House, or to trade except in the purchase of wood and water; and that they must depart w ith in twenty-four hours after notice to leave.