Moro Monov for Diplomacy.
I earnestly urge that congress recast the
appropriations for the maintenance of
the diplomatic and consular service on a
footing commensurate with the lmport
portancc of our national interests. At
every post where a representative is ne
cessary, the salary should be so graded
us to permit him to live with comfort.
With tho assignment of adequate salaries,
the so-called notarial extra ofllcial fees
which our ofllccrs abroad arc now per
mitted to treat as personal perquisites
should be done away with.
Every act requiring the certification and
seal of the olUcer would be taxable at
schedule rates, and the fee therefor re
turned to the treasury. By restoring
these revenues to the public use, the
consular service would be self-supporting,
even with a liberal increase of the
present low salaries. The further pre
vention of abuses, a system of consular
inspection should be instituted. The ap
pointment of a limited number of secre
taries of legation at large, to be assigned
to duty wherever necessary, and in par
ticular for temporary service at missions
which from any cause mav be without a
head, should also be authorized. 1 favor
also authorization for the details of olll
ccrs of the regular service as military or
naval attaches at legations. Some for
eign governments do not recognize the
union of consular with diplomatic func
tions. Italy and Venezuela will only re
ceivo tho appointee in one of his two
capacities, but this does not prevent the
requirement of a bond and submission to
the responsibilities of anolllcer whose du
ties lie cannot discharge. The
super-added title of consul-general
should be abandoned at all missions.
I deem it expedient that a well-devised
measure for the reorganization of the
extra territorial court3 in Oriental coun
tries should replace tho present system,
which labors under the disadvantage of
lumbering judicial and executive functions
in tho same ollice. In several Oriental
countries generous offers have been made
of premise.-' for housing the legations of
the United States. A grant of land for
that purpose was made some years sinco
by Japan, and has been referred Join
tiin otiini.it mpas.'iirps nf im nredocessors.
The Siamese government lias made a
gift to the United States of commodious
quarter?, in llangkok. In Corea the late
minister was permitted to purchase a
building from the government for lega
tion tist. In China" the premises rented
for the legation are favored as to loc.il
charges. AtTangicrs the house occupied
by our representative has been for many
years the property of this government,
having been given for that purpose in
1S22 by the sultan of Morocco; I approve
the suggestion heretofore made thai, in
view of the conditions of life and admin
istration in the Eastern countries, the
legation buildings in China, Japan,
Corea, Siam and i)crhap3 Persia, should
be owned and furnished by tho govern
ment, with a view to permanency and
security. To this end I recommend that
ai.t lority be given to accept the gifts ad
verted to in Japan and Siam, and to pur
chase in the other countries named with
provisions for furniture and 'repairs. A
considerable saving in rentals would
result.
Tho Blfr Fair.
The world's industrial exposition held
at New Orleans last winter with the as
sistance of the federal government, at
tracted a largo number of foreign exhib
its, and proved of great value in spread
ing among the concourse of visitors Irom
Mexico and Contril and South America a
wide knoweidge of the various manufact
ures and productions of the country, and
their availability in exchange for tho
production of those regions.
Ara EBt Ijongft.
Past congresses have had under con
sideration tho advisability of abolishing
the discrimination made by the tariff
laws In favor of the works of American
artists. The odium of the policy which
subjects to a high rate of duty tho paint
ings of foreign artists and exempts the
productions of American artists residing
abroad, and who receive gratuitously ad
vantages and instruction, is visited upon
our citizens engaged in art culture in
Europe, and has caused them, with
practical unanimity, to favor the aboli
tion of Mich nn ungracious distinction,
and in their interest aud for other obvious
reasons 1 strongly recommend it.
Tho Public Treasury.
Tho report of the secretary of
tho treasury fully exhibits the con
dition of the public finances and
of the several branches of government
connected with ids department. The
Miggestious of the secretary relating to
tho practical operations of this important
department, and his recommendations
regarding simplification and economy,
particularly in tho work of collecting cus
toms duties, are especially urged upon
the attention of congress.
The ordinary receipts from ail sources
for the li'-oal year ended Juno 30, 1SS5,
were 322.090,700.38. Of this sum
181, .171,939. 31 was received from cus
toms andd S112,.19S,725.5l from internal
revenue. Tuo total receipts as given
above wereo 21,829,103.51 hes than
those for the year ending Juno 110. 1SS1.
Tills diminution embraced a falling off of
13,59j.ii50.42 in tho receipts from cus
toms and 9,0S7,310.07 in the receipts
from internal revenue.
The total ordinary expenditures of the
government for tho fiscal year were
$200,220 935.50, leaving a surplus In the
treaMiry at tho close of the year of 03,
.103,771.27. This is 10, 929, S5 1.32 less
than the surplus reported at tho close of
tho previous year. The expenditures arc
classified as follows:
Civil expenses g,n 0,., ,j
Foreign Intercourse S iti 111V1 1
Indians o'k"'vua
l'en.lons 6e!io'"u7 !!
Mllltnry (river and liarbor ami "w',u
Naf.C"aU) 42.070,578.47
intorett on I'u'.ili'dcLV."!!'.'.'.'.'.'.'.'.! 6l,wV?.w'47
Ulatrlctof (.iiunmla J.iW.VM M
Miscellaneous 6l,728,OJt.Sl
The amount paid on tho publlo debt
during the fiscal year ended June 30,
1SS5, was 15, 993, 235. -13, and there has
been paid since that date and up to Nov.
1, 1SS5, the sum of 309, 82S, leaving tho
amouut of the debt at tho last named
date 1,514,475,800.47. There was,
however, at that time In tho treasury ap
plicable to the general purposes of the
government tho sum of 8GU.S1S.292.3S.
Tho total receipts for the current fiscal
year ending Juno 30, 1SS0, ascertained
to Oct. 1, 18S5, and estimated for tho re
mainder of tho year, are 315,000,000.
Tho expenditures ascertained and esti
mated for tho eamo time are 215,000,
000, leaving a surplus at close of the year
estimated at 70.000,000. Tho value of
exports from the United States toforeigu
countries during the last fiscal year was
as follows:
DomcMIe mcrchnndlsc 72S,6.2.fll6 01
Foreign merchandise l.VWti.ScJ tm
Hold.. S4,77S,SH2 CO
SlUer 33,75.!,ttlJ W
Total $sO0,7-22.'2s0 00
Some of the principal exports with their
values and the percentage they respec
tively bear to the total exportation arc
given .13 follows :
AllTlL'I.ra.
Value. ,
Colton and cotton mamtfac-l
turn 'S2IS.7m.ni9, '23 t2
Manufactures' broadttutl ; iro,3n.s-:o -22.07
107,3i2,4;K)
M,15fi.20S
21,7(17,30
'21,4tU.3-22
14.7
Oils, mineral, vegetable and
nnituai
Tobacco and Its manufactures
Wood and Its manufactures. .
74S
3.41
2 115
Our Imports during the year were as
follows:
Merchandise $570.SS0,CS SO
Hold '20,CJl,Mli 00
Sliver 111,3:0,(127 00
Total J02-2.S-2-2.5C0 0
The following arc given as prominent
articles of Imports during tho year, with
their values and with the percentage they
bear to the importation :
AltTKI.t.
Value.
l'eu-t
Stijrarand molasses
Co ire o
Wool an 1 1ts manufactures
Ilk and lis miinufactmos
Chemicals, dyeings and medi
cines Iron and steel nnd their m'fs..
F ax, hcniii jute and thelrm'fs
Cotton anil Its manufactures..
Hides and skins other than fur
tklns S7rt,73S,713
4(1, 723 318
4 1, V0, 4S2
tU.SIU.lKti
3.',070,Slfi
13.20
8. 00
7.73
(MM
fi.07
fUH
s.rct
4. S3
3.50
3l,.ViI,(i'.l
3-2.SM.S7l
2S, 152,001
20.5SG.443
Of the entire amount of duties col
lected, 70 per cent was collected from the
following articles of import: Sugar and
molasses 29, wool and its manufactures
15, silk and Its manufactures S, iron and
steel and their manufactures 7, cotton
manufactures G, llax, hemp aud jute and
their manufactures 5.
In Favor of Protection.
The fact that our revenues are in ex
cess of the actual needs of an economical
administration of the government, justi
fies a reduction in tho amount exacted
from tho people for its support. Our
government is but the means established
by the will of a free people, by which
certain principles are applied which they
have adopted for their benefit and pro
tection, audit is never better adminis
tered and its true spirit is never better
observed than when tho people's taxa
tion for its support is scrupulously lim
ited to the actual necessity of expendi
ture, and distributed according to just
and equitable plan. The proposition
witli which we have to deal is the reduc
tion of tho revenue received by the gov
ernment, and indirectly paid by tho peo
ple from customs duties. The question
of free trade Is not involved, nor is there
now any occasion for the general discus
sion of the wisdom or expediency of a
protective system. Justice and fairness
dictate that'in any modification of our
present laws relating to revenue, tho in
dustries and interests which have been
encouraged by such laws, and in which
our citizens have large in vest nients. should
not bo ruthlessly injured or destroyed.
We should also deal with the subject In
sucli manner as to protect the interests of
American labor, which is the capital of
our worklngmen. Its stability and proper
remuneration furnish tho most justifiable
pretext for a protective policy. Within
these limitations, a certain reduction
should be made in our customs revenues.
The amount of Mich reduction having
been determined, the inquiry follows,
Where cau the tariff best be remitted,
and what articles can best bo released
from duty in the interest of our citizens?
I think the reduction should be made in
the revenue derived from a tax upon the
imported necessaries of life. We thus
directly lessen the cost of living in every
family of the land, and release to the
public In every humble home a larger
measure of tho rewards of frugal Indus
try. National Banks and Silver Currency.
During the year ended Nov. 1, 1S85,
one hundred and forty-five national banks
were organized, with an aggregate cap
ital of 1(5, 93S, 000 and circulating notes
have been issued to them amounting to
61,271,910. Tho whole number of these
banks in existence on tho day above
mentioned was 2,727. The very limited
amount of circulating notes issued by
our national banks compared with the
amount the law permits them to issue
upon a deposit of bonds for their re
demption, indicates that the volume of
our circulating medium may lie largely
increased through ttiis instrumentality.
Nothing more Important than the
present condition of our currency and
coinage can claim your attention. Sinco
February, LS7S, the government has.
under tlie compulsory provisions of law.
purchased silver bullion and coined the
same at the rate of more than 2,000.000
every month. IJy this process, up to tho
present date 215,759,431 silver dollars
have been coined. A reasonable appre
ciation of a delegation of power to tho
general government would limit its ex
ercise without express restrictive words
to tho people's needs aud the require
ments of the public welfare. Upon this
theory the authority to coin money given
congress by the constitution, even if It
permits tho purchase by the government
of the bullion for coinage, in any event
docs not justify such purchase and coin
age to an extent beyond the amount
needed for sulllcient circulating medium.
The desire to utilize the sliver product
of the country should not lead to a mis
use or the perversion of this power. The
neccBs'ty for such an addition to the
silver currency of the natiou as Is com
pelled by the silver coinage act la nega
tived by tho fact that up' to thepresent
time only about 50,000,000 of sliver
dollars so coined have actually found
their way Into circulation, leaving more
than 105,000,000 in possession of the
government, tho custody of which has
entailed a considerable expense for
construction of vaults for its
deposit. Against this latter amount
there are outstanding silver cer
tificates amounting to about 93,000,000.
Every month 2,000,000 of gold in tho
publlo treasury are paid out for 2,000,
000 or more of silver dollars to be added
to the Idle mass already accumulated. If
continued long enough, this operation
will result in the substitution of silver for
all tho gold the government owiis, ap
plicabru to Its general purposes. It will
not do to rely upon the receipts of the
government to make (rood this decline of
! gold, because the silver tints coined,
having been maUo legal tender for all
debts and dues, public and private, at
times during tho last six months, fifty
eight percent of the receipts for duties
have been in silver or sliver certificates,
while the average wlthlu that period hai
Icon 20 per cent. The proportion of silver
and its certificates received by the gov
ernment will orobably increase as time
goes on, for tho reason that the nearer
the period approaches when It will be
obliged to offv sllv r in payment of its
obligitlo'is, the greater "inducements
there u ill bo to hoard gold ogalnst de
preciation In the value of silver, or for
the purpose of speculating. I his Hoard
ing of gold has already begun. When
the time conies that gold has been with
drawn from circulation, there will be ap
parent the difference between the real
value of the silver dollar aud a dollar in
gold aud the two coins will part com
pany. Cold, still the standard of value,
and necessary in our dealings with other
countries, will be at a premium over
silver. Hanks which have substituted
gold tor llie deposits of their customers
may pay them with silver bought with
said gold, thus making a handsome
profit. KUii speculators will sell their
hoarded gold to their neighbor who need
it to liqudato their foreign debts at ruin
oiu p'cimum over silver, and the labor
ing men and women of the land, most
defenseless of all, will find that the dollar
received fer the wages of their toil tia3
sadly shrunk in its purchasing power,
it may be said that the latter result will
he but temporary and that ultimately tho
price of labor will be adjusted to the
change, but even if this takes place the
wage-worker cannot possibly gain, but
must inevitably lose, since the price lie is
compelled to pay lor his living will not
only be measured in a coin heavily de
preciated and lliictuating aud uncertain
in its value, but tills uncertainly
in the value of the purchasing medium
will be made the pretext for an advance
in prices beyond that justified by actual
depreciation. The words uttered In 1S3I
by Daniel Webster, in the senate of the
United States, are true to-day: "The
very man of all others who has the deep
est interest in a sound currency, and
who suffers most by mischievous legisla
tion iu money matters, Is the man who
earns his daily bread by his daily toil. ' '
The most distinguished advocate of bl
metalism, dlscu-slng our silver
coinage, has lately written: "No
American citizen's hand has
yet felt tho sensation of cheapness
either in receiving or expending tho sil
ver act dollars. And those who live by
labor of legitimate trade never will feel
that sensation of cheapness. However
plenty silver dollars may become, they
will not bo distribi'ied as gifts among tho
people, aud if the laboring man should
receive four depreciated dollars where he
now receives but two, he will pay in tho
depreciated coin more than double the
price lie now pays for all tho necessaries
and comforts of life. " Those who do
not fot'.r any disastrous consequences
arising from tho continued compulsory
coinage of silver as now directed by law,
and who suppose that the addition to the
currency of the country Intended as its
result will be a public bcnellt, are re
minded that history demonstrates that
the point is easily readied in the attempt
to lloat at the same time two sorts of
money of different excellency, when the
better will ceaseto lie iu circulation. Tho
hoarding of gold which lias already taken
place-Indicates that we shall not escape
the Usual experience in sin-li cases;
";o if the silver coinage be continued, we
may reasonably expect that gold and its
equivalent will abandon the field of cir
culation to silver alone. This of course
must produce a severe contraction of our
circulating medium instead of adding to
it. it will not be disputed that nuv at
tempt on the part of the government to
cause the circulating of the silver dollar.
worth SO cents, side by side with gold
dollars, worth 100 cents, must be seconded
by the confidence of the people, that hott
coins may retain tho same purchasing
power and be Interchangeable at w:l..
Special effort has been made by tho si c-
retary of the treasury to increase the
amount of our silver coin in circulation,
but tho fact that a large share of the lim
ited amouut thus put out has soon re
turned to the public treasury in payment
ot duties, leads to the bellel that the peo
ple do not now desire to keep It Iu hand;
and this, with the evident disposition to
hoard gold , gives rise to tho suspicion
that there already exists a
lack of confidence- among the peo
ple touching our financial processes.
There is certainly not enough silver now
iu circulation to cause uneasiness, and
tho whole amount coined and now on
hand might, after a time, be absorbed bv
tho people without apprehension; but it
is the ceaseless stream that threatens to
overllow the land which causes fear and
uncertainty. What lias been thus far
submitted upon tins subject relates al
most entirely to considerations of a homo
nature, unconnected with tho bearing
which tho policies of other nations have
upon tho question; but It is perfectly ap
parent that a line of action in regard to
our currency cannot he wisely settled
upon or persisted iu without considering
the attitude on tho subject of other coun
tries with whom wo maintain intercourse
through commerce, trado and travl.
An acknowledgment of tills is found in
the act by virtue of which our silver is
eotnpulsorily coined. It provides that
"the president shall invite the govern
ments of tho countries composing the
Latin union, so called, and of such
other Kuropean nations as ho may deem
advisable, to join tho United States in a
conference to adopt a common ratio be
tween gold and silver for tho purpose of
establishing internationally tho use of
bi-metalle money, and securing fixity of
relative value between these metals."
This conference absolutely failed, aud a
similar fate has awaited all subsequent
efforts in the same direction, and still we
continue our coinage of silver at a ratio
different from that of any oilier nation.
The most vital part of tho silver coinage
net remains imperative and unexecuted,,
nnd without an ally or friend wu bat
tle upon tho silver field iu an Illogical
and losing contest. To glvo full effect to
the design of congress on this subject I
have made carelul and earnest endeavor
since the adjournment of the last congress.
To this end i delegated a gentleman well
Instructed in fiscal science to proceed to
the financial centers of Europe, aud iu
conjunction with our ministers to En
gland, France and Germany, to obtain a
lull knowledge of the attitude aud intent
of these governments respecting the
establishment of such an International
ratio as would procure free coluago of
both metals at the mints of these coun
tries aud our own. Jly my direction our
consul-general at Paris has given close
attcutlo.i to the proceedings of the con
gress of the Latin union, In order to Indi
cate our Interest In its objects and to
report Its action. It may be said In brief,
as tho result nf these efforts, that the
attitude of tho leading powers remains
substantially unchanged siuee tho mone
tary conference of HHl, nor Is It to be
questioned that the views of these gov
ernments are in each Instance separated
by tho weight of public opinion. Tho
steps thus taken have, therefore, only
more fully demonstrated the tiselessue-s
of further attempts at present to arrive at
any agreement on the subject with other
nations. In tho meantime wc are accu
mulating silver coin based upon our own
peculiar ratio fo such an extent, and as
suming so heavy a burden to be provided
for iu any international negotiations, as
will render us an undesirable- party to
nny future monetary conference of na
tions. It is n slgnltlcaut fact that four of
the live countries comprising tho Latlu
union mentioned In our coinage act.
embarrassed with their silver currency,
have just completed an agreement among
themselves that no more silver shall be
coined by their respective governments,
and that such as lias already been coined
aud is in circulation shall bo redeemed
in gold by the country of its coinage.
The resort to this expedient by these
countries may well arrest tho attention
of those who suppose that we can succeed
without shock or Injury in tho ntteinpt
to circulate upon Its merits all the silver
we may coin under the pro
visions of our silver coinage act.
Tho condition in which our treasury may
bo placed by a persistence m our present
course is a matter of concern to every
patriotic citizen who does not desire his
government to pay In silver such of its
obligations as should be paid in gold.
Nor should our condition be such as to
oblige us in a prudent management of
our affairs to discontinue tho calling in
and payment of interest-bearing obliga
tions which wo have the right now to
discharge, and thus to avoid the payment
of further interest thereon. The so
called debtor class, for whose bcnellt the
continued compulsory coinage of silver is
Insisted upon, are not dishonest because
they arc in debt, and they should not be
suspected of a desire to jeopardize tho
linaucial safety of the country In order
that they may cancel their present debts
by paying tho same in depreciated dol
lars. Nor should It be forgottcu that it
is not tho rich nor the money-lender
alone that must submit to such a read
justment enforced by the government
aud their debtors. Tho pittance of the
widow and orphan and the incomes of
helpless bcncllciaries of all kinds
would be disastrously reduced.
The depositors iu savings-banks, and
other institutions which hold iu trust the
savings of tho poor, when their little ac
cumulations are scaled down to meet the
new order of things, would, In their dis
tress, painfully realize the delusion of
the promise made to them that plentiful
money would improve their conditlois.
Wo have now on hand all the silver dol
lars necessary to supply the present need
of the people, and to" satisfy those who
from sentiment wish to see them In cir
culation, and if their coinage is sus
pended they can be teadlly obtained by
those who desire them, if t ho need of
more is at any time apparent their coin
ace may be resumed. That disaster lias
not already overtaken us furnishes no
proof that "danger does not wail upon a
continuation of the present silver coin
age. We have been saved by the most
careful management and unusual expe
dients, by a combination of fortunate
conditions, aud by a coulldcnt expecta
tion that the course of tho government
in regatd to silver coinage would bo
speedily "hanged by action of congress,
l'ro'iperity hesitates upon our threshold
beci.dje of dangers and uncertainties
surrounding this question; capital timid
ly shrinks from trade, and investors aro
unwilling to take the chance of tho ques
tionable sh ipn in which their money will
bo returned to them, while enterprise
haltsat a risk against which caro and
sagacious management do not protect.
As a necessary consequence labor lacks
ei!ipIoyment,"and suffering and distress
are visited upon a portion of our fellow
citizens especially entitled to the careful
consideration of those charged with
duties of legislation. No interest appeals
to us so strongly for a safe and staple cur
rency as the vast army of the unem
ployed. I recommend tho suspension of
compulsory coinage of silver dollars
directed by the law passed in February,
lt78.
On tho Rlvora and tho High Soan.
Tho steamboat inspection service on the
30th of June, 1SS5, was composed of 110
persons, Including ollicers, clerks and
ncsseiigcrs. Tho expenses of the ser
vice over tho receipts were 13S,S22.27
during the fiscal year. The special inspec
tion of foreign steam vessels, organized
under the law passed In 1SS2, was main
tained during tho year at an expense of
300, 110. 30. Sinco the close of tho 11s
cal year reductions have been made iu
tho force employed which will result In a
saving during tho current year of 17,000
without affecting tho cllicicncy of the
service.
Tho supervising surgeon-general re
ports that during tho fiscal year 11,711
patients have received relief through
marine hospital service, of whom 12..SU3
were treated iu hospitals, and 28,911 at
dispensaries. Active aud effective ef
forts have been mndo through the
medium of tills service to protect tho
country against an Invasion ot cholera,
which has prevailed iu Spain and Frauce,
and the small-pox which recently broke
out in Canada.
The most gratifying results have at
tended tho operations of tho life-saving
servico during tho past lUeal year. Tho
observance ot tho provision of law re
quiring the appointments of the forco
employed in the service to be made
"solely with reference to Ihelr fitness
nnd without reference to their political or
party ulllllatlons," has secured tho result
which may confidently bo expected In
any branch of public employ incut where
such a rule Is applied. As a consequence
this servico Is composed of men well
qualified for tho performance of their
dangerous and exceptionally Important
duties. Tho number of stations In com
mission at tho close of the year was
203. The number of disasters to vessels
and crafts of all kinds within their Held
of action was 371. The number of per
sons endangered iu such disasters was
2,130, of whom 2,128 were saved, and
only 11 lost. Other lives which wcro im
periled, though not by disasters to ship
ping, were also rescued, and n I'trgo
amount of property was wived through
the aid of this service. The cost of its
mainteuaucc during tho year was 828,
171.13. Tho work of tho coast and geodetic
survey was, during tho last fiscal year,
carried on within the boundaries and off
the coast of thlrtv-two Mates, two terri
tories and the District ot Columbia. Iu
July last certain irregularities wcro found
to exist in the management i this
bureau, which led ton prompt Investiga
tion of Its method. The abuses which
were brought to light by this examina
tion and tho reckless disregard of duty
and tho interests of tho government de
veloped on the part of some of those con
nected with tlio i-ervlce, made a change
of superintendeucy and a few of Its other
ollicers necessary. Since tho bureau has
been in new bauds, an I troductlon ot
economies aud applicatlou ot business
methods have produced an Important
saving to the government and a promise
of more uscfulresults. Tills service lias
never been regulated by any
thing but most Indefinite legal enact
ments, nnd the most unsatisfactory
rules. It was many years ago sanctioned
apparently for a purpose regarded ns
temporary, and related to a survey of
our coast. Having gained a place iu the
appropriation made by congress, it lias
gradually taken to Itself powers and ob
jects not contemplated in its creation,
and extended its operations until It sad
ly needs legislative attention. So far ns
a further survey of our coast is con
cerned, there "seems to be propriety in
transferring that work to the navy de
partment. The other duties now In
charge of this establishment, If they can
not be profitably attached to some exist
ing departmentor other bureau, should
be prosecuted under a law exactly iletlu
ing their scope and purpose, and with a
careful discrimination between the scien
tific Inquiries which may properly be as
sumed by tho government, and those
which should be undertaken by state sui
thorlt es or by individual "enterprise.
It is hoped that tho report of the con
gressional committee heretofore ap
pointed to investigate this and other like
matters will aid in tho accomplishment
of proper legislation on tills subject.
Tho Department ot War.
The report of tho secretary of war Is
herewith submitted. The attention of
congress is invited to tho detailed account
which it contains of tho administration
of his department, nnd his recommenda
tions and suggestions for the Improve
ment o! the service.
The army consisted, at tho date of the
last consolidated returns, cf 2,151 ollicers
aud 21,705 enlbted men. Tho expenses
of the epartinent for the fiscal year end
ing Juno 30, 1885, Including 13.101, -391.00
for public works nnd river and
harbor Improvements, were I5,S50,
999.51. Besides the troop which were dis
patched In pursuit of the small baud of
Indians who left their reservation in
Arizona and committed murders and
outrages, two regiments of cavalry and
one of Infantry were sent last July to tho
Indian Territory to prevent an outbreak
which seemed" imminent. They re
mained to aid if necessary in the expul
sion of IntrMilers upon tho reservation
who have caused thu discontent among
the Indians, but the executive proclama
tion warning them to remove was com
plied with without interference.
Troops were also sent toltoek Springs,
iu Wyoming, after the massacre of Chi
nese there, to prevent further disturb
ances, nnd afterwards to Seattle, In
Washington Territory, to avert a threat
ened attack upon Chinese laborers, and
domestic violence there. In both cases
the mere presence of the troops had the
desired effect, it appears that tho num
ber of desertions have diminished, but
that during the last fiscal year they num
bered 2.927, and one instance is given
by thu lieutenant-general of six deser
tions by the same recruit. I am con
vinced that tliis number of desertions cau
be much diminished by better discipline
and troalmcut, but the punishment
should lie Increased for repeated offenses.
These desertions might also be reduced
by lessening the ternicf first enlistments,
thus allowing a discontented recruit
to contemplate a nearer dlsi-harge and
tho army a profitable riddance after
one term of service. A re-enlistment
would lie unite apt to secure a contented
recruit and good soldier. The acting
judge .advocate general reports that the
number of trials by general courts-martial
dining the year was 2,32S, and that
11. 51 trials took place before garrison
and regimental courts-martial. The
Miggestiou that probably more than halt
of the army have been tried for offenses
great and small In one year may well ar
lest attention. Of course many of these
trials before garrison aud regimental
courts-martial wero for offenses almost
frivolous, and there should, 1 think, be
a wav devised to dispose of these In a
morn summary and less Inconvenient
manner then by court-martial. If some
of the proceedings of courts-martial
which 1 have had occasion to examine
present tho ideas of justice which gen
erally prevail in these tribunals, I am
satislicd that they should ho much re
formed, if tho honor and the honesty of
the army and navy arc. by tiielr liistru
mentality, to be vindicated and pro
tected.
The board of formications or other do
fenscs appointed in pursuance of. the
provisions of tho act of congress ap
proved .March 3, 18S", will in a short
time present their iepnrt, and it is
hoped that tills may greatly aid the leg
islation so necessary to remedy the pies
cut defenseless condition of our scacoast.
The work of the signal service lias been
prosecuted during tho last year with re
suits ot Increasing benefit to the country
The field of instruction lias been enlarged
with a view of adding to Its usefulness.
The number of stations in operation June
30, lss.i, was 1S9. 'lelegraphle reports
are received dally from 100 stations. JCe
ports nro also received from 75
Canadian stations, from 375 vol
unteer observers, 52 army sur
geons nt military posts and 333
foreign stations. The expense of service
during the llscal year, after deducting
receipts from military telegraph lines
was 70,759,297. In view of tho fact
referred to by the secretary of war that
work of this service ordinarily Is of selen-
tlllc nature, and tho further fact that ft is
assuming larger proportions constantly
and becoming more and more imsultcd
to tho fixed rules which must govern tho
army, l am inclined to agree witu nun
in tho opinion that it should bo separately
established. If this lsdoucthos2opQuud
extent of its operations should as nearly
as possible bo definitely prescribed by law
and always capable ot exact ascertain
moot .
Tho military academy of West Point U
reported as being iu u high state of efll
eiency, and well equipped for tho satis
factory accomplishment of the purposes ot
Its maintenance. The fact that
thu clasi which graduates next
year Is an unusually largu
one has constrained me to decline to
mako appoint merits to second lieutenan
cies iu thu army from civil life, so that
such vacancies as exist In these places
may he reserved lor such grauuates; ana
yet it Is not probable that there will bo
enough vacancies to provide positions
for them all when they leave tho military
school. Under tho prevailing law and
usage those not thus assigned to duty
never actually enter tho military service.
It Is suggested that tho law on this sub
ject bo changed so that Biich ot tlioso
youug men as are not at once assigned to
duty utter graduating may bo retained as
second lieutenants in the army, If they
deslro It, subject to assignment, when
opportunity occurs, under proper rules
us to priority ot selection. The expendi
tures on account ot tho military academy
or tho last fiscal year, exclusive of thd
sum taken for its "purposes from appro
priations for the support of the army,
were 200,712.07.
The act approved March 3, 1S85, de
signed to compensate ollicers and en
listed men for loss of private property
while in tlie service of the United States,
is so Indefinite- in its terms, and appar
ently admits so many claims tho adjust
ment of which could not have been con
templated, that if it is to remain on tho
statue-book It needs amendment.
There should be a general law of con
gress prohibiting thu construction ot
bridges over navigable waters in such a
manner as to obstruct navigation, with
provisions for preventing the same. It
seems that under existing statutes tho
government cannot Intervene to prevent
such a construction when en
tered upon without Its consent.
Thus It is represented that, while tho of
ficers of tho government are with great
care guarding against obstructions of
navigation by a bridge across tho Missis
sippi river at St. 1'aul, a large pier for a
bridge has been built just below this
place directly in tho navigable channel of
the river. If Mich things are to be per
mitted, a strong argument Is presented
against the appropriation of large sums of
money to Improve tho navigation of this
and other Important highways of com
merce. Tho Bocrotary of tho Navy.
The report of the secretary of tho navy
gives a history of tho operations of his
department, and the present condition of
tho work committed to his charge. Ho
details iu full the course pursued by him
to protect the rights of tho government
In respect to certain vessels unfinished at
the tljine of his accession to ofllco, and
also concerning the dispatcli boat
"Dolphin." claimed to bo completed
and awaiting thu acceptance of tho de
partment. No one can fall to see from tho recital
contained In tills report that only the ap
plication of business principles" lias been
insisted upon in tho treatment of these
subjects, and that whatever controversy
has arisen was caused by the execution
on tho part of tho department of contracts
or obligations as they were legally con
strued in the case of the "Dolphin,"
with entire justice to tiie contractor.
An agreement lias been entered Into
providing for tho ascertainment
by n judicial inquiry of tho com
plete or partial complianco with
tho contract in her construction,
and further providing for the assessment
of any damages to which the government
may he entitled on account of n partial
failuro to perform such contract, or thu
payment of the sum still remaining un
paid upon her price in case a full per
formance is adjudged. The contractor,
by reason of ills failure in business, being
unable to complete tho other thrcu ves
sels, they wero taken possession of by
the government In their unfinished con
dition, under a clause iu the contract
permitting such a course, and nro now
iu process of completion iu the yard of
tho contractor, but under the supervision
of the navy department.
Congress In its last session authorized
the construction of two additional new
cruisers and two gunboats, at a cost not
exceeding in tho aggregate 2,995,000.
The appropriation for this purpose hav
ing boeWfno available on tho 1st day of
July last, steps were at onco taken for
the procurement of such plans for tho
construction of these vessels as would bo
likely to insure their usefulness w hen com
pleted. Theso are of the utmost import
ance, considering tho constant advance
in the art of building vessels of this cliar
ac or, aud tho lime is not lost which is
spent iu their careful consideration nnd
selection.
All must admit the Importance of nn
effective navy to n nation like ours, Hav
ing such an extended sea coast to pro
tect, yet we have not a single vessel of
war that could keep the sea against a
llrst-chiss vessel of any important power.
Such a condition ought not longer to
continue. Thu nation that cannot resist
aggression is constantly exposed to It.
Its foreign policy Is of necessity weak,
and its negotiations are conducted with
disadvantage, because it is not in condi
tion to enforce the terms dictated by its
sense of right and justice. Inspired as I
am with thu hope, shared by nil patri
otic citizens, that the day is not far dis
tant when our navy will bu such as bellts
our standing among the nations of tho
'earth, and rejoiced nt every step that
leads In the direction of such a consum
mation. I deem It niy duty especially to
direct tho attention of congress to tho
close of the report of tho secretary of the
navy lu which thu humiliating features of
the present organization of tills depart
ment aro exhibited and the startling
abuses and waste of his present method
aro exposed. Tho conviction Is forced
upon us with tho certainty ot mathe
matical demonstration, that before wo
proceed further iu tho restoration
of a navy, wo need a thor
oughly reorganized navy department.
The fact that within seventeen years
more than 75,000,000 has been spent Iu
construction, repair, equipment and
armament ot vessels, nnd thu further fact
that instead of an effective and creditable
licet wo liavo only the discontent and ap
prehension of n nation undefended by
war vessels, added to thu disclosures now
made, do not permit us to doubt that
every attempt to revive our navy has
thus fur, for tho most part, been misdi
rected, aud all our efforts iu that direc
tion have been little butter than blind
gropiugs and expensive, aimless follies.
Unquestionably if wo aro content with
thu maintenance ot a navy department
simply ns nn ornament to thu government,
a constant watchfulness may prevent
some of tho scandal and abuse which
have found their way into our present
organization, nnd Its incurablu waste
may ho reduced to tho mluiuiim; but if
wo desire to build ships for present use
instead ot naval reminders of thu duys
that aro past, wo must have a depart
ment organized tor the work, supplied
with all tho talent and Ingenuity our
country affords, prepared to tako advan
tage of the experience of other nations, so
systematized that all effort shall unite utid
lead in ouo direction, and fully imbued
with tho conviction that war vessels,
though new, are useless unless they com
bine all that the ingenuity ot man has up
to tills day brought fourth relating to
their construction.' I earnestly commend
that portion of tho secretary's report de
voted to this subject to tho action ot con
gress, In tho hope th'it thu suggestions
touching the reorganization of his de
partment may bu adopted ns the Unit step
toward tho reconstruction ot our navy.
Tho Postofflco Department
Tho affairs ot tho postal servico are
exhibited by the report ot tho postmaster
general, which will bo laid before you.
The postal revenue, whoso rates ot gala