o THE PRESIDENT'S MESSAGE. To the Senate and House of Representa tives: In addressing my third annual message to the law-making branch of the Government, it is gratifying to be able to state that during the past year success has generally attended the eflort to excute all the laws found upon, the statute books The policy has been not to inquire into the wisdom of laws already enacted, but to learn their special interest, and to enforce them accordingly. THE CALAMITIES OP THE YEAR. The past year has, under a wise Provi dence, been one of general prosperity to the nation. It has, however, been attended with more than usual chastisements in loss of life and property by storm and fire. These disasters have served to call forth the best elements of human nature in our country, and to develop a friendship for us on the part of foreign nations, which goes far toward alleviating the distress occasioned by the calamities. The benevolent,who have so generally shared their means with the victims of these misfortunes, will reap their reward in the consciousness of having per formed a noble act, and in receiving the grateful thanks of men, women and children, whose sulferings they have re lieved. OUR FOREIGN RELATIONS THE ALABAMA CLAIMS. The relations of the United States with foreign powers continue to be friendly. The year has been an eventful one, in wit nessing two great nations speaking one language and having one lineage, settling, by peaceful arbitration, disputes of long standing, and liable at any time to bring these nations into hostile conllict. An ex ample has thus been set, which, if success ful in its final issue, may be followed by other civilized nations, "and bo the final means of returning to productive industry millions of men maintained to settle the disputes of nations by tiie bayonet and broad-sword. I transmit herewith a copy of the treaty alluded to, which has been concluded, since the adjournment of Con gress, with Iter Britannic Majesty, and a copy of the protocols of the conferences of the Commissions by whom it was negotiated. This treaty provides methods for adjusting the questions pending between the two nations. Tho various questions are to be adjusted by arbitration. I recommend Congress, at an early day, to make the necessary provisions for the Tribunal of Geneva and for the several Commissioners on the part of the United States called for by the treaty. His Majesty the King of Italy, tho President of the Swiss Confeder ation, and His Majesty the Emperor of Brazil, havo each consented, on the joint request of the two Powers, to name an ar bitrator for the Tribunal at Geneva. 1 have caused my thanks to be suitably expressed for the readiness with which the joint re quest has been complied with, by the ap pointment of gentlemen of eminence and learning to the high positions. THE BOUNDARY QUESTION WITH GREAT BRITAIN. His Majesty, tho Emperor of Germany, has been pleased to comply with the joint wish of the two Governments, and has con sented to act as the arbitrator of tho dis puted water boundary between the United States and Great Britain. The contracting parties in the treaty have undertaken to regard, as between themselves, certain principles of public law, for which the United States have contended from tho commencement of their history. They have also agreed to bring these principles to the knowledge of the other maritime powers, and invite them to accede to them; negotiations are going on as to the form of the note by which the invitation is to bo extended to the Powers. I recom mend the legislation necessary on the part of the United States to bring into opera tion the articles of the treaty relating to the fisheries and to the other matters touching the relations of the United States toward the British North American possessions, to become operative as soon as the proper leg islation shall be had on the part of Great Britain and its possessions. It is much to be desired that this legislation may become operative before the fishermen of the Uni ted States begin to make arrangements for the coming season. I have addressed a communication, of which a copy is trans mitted herewith, to the Governors of New7 York, Pennsylvania, Ohio, Indiana, Mich igan, Illinois and Wisconsin, urging upon the Governments of these States respect ively, tho necessary action on their part to carry into effect the object of the article of the treaty which contemplates the use of the canals on either side connected with the navigation of the lakes and rivers, forming the boundary, in terms of equity, by the inhabitants of both countries. It is hoped that the importance of the object and. the benefits to flow therefrom, will se cure the speedy approval and legislative sanction of the States concerned. RECOMMENDATION IN REGARD TO THE BOUNDARY LINE. I renew the recommendation for an ap propriation for determining the true posi tion of the forty-ninth parallel of latitude, where it forms the boundary between the United States and the British North Amer ican possessions, between the Lake of the "Woods and the summit of the Rocky Moun tains. The early action of Congress in the recommendation named would put it in the power of the War Department to place a force in the field during the next summer. PROTECTION FOR GERMANS IN FRANCE. The resumption of diplomatic relations between France and Germany has enabled mo to give directions for the withdrawal of France, by the Diplomatic and Consular representatives of tho United States in that country. It is just to add that tho delicate duty of this protection has been performed by the Minister and Consul at Paris and the various Consuls in France, under the supervision of tho latter with great kind ness as well as with prudence and tact. Their course has received tho commenda tion of the German Government, and has wounded no susceptibilities of the French. OUR RELATIONS WITH GERMANY. The Government of the Emperor of Ger- manv continues to manifest a friendly feeliner toward tho United States, and a de sire to harmonize with the moderate and just policy which this Government main tains in its relations with Asiatic powers, as well as with the South American Repub lics. I have given assurance that the friendly feelings of that Government are fullv shared by the United States. The ratification of the consular and naturaliza tion connections with Austria and Hun gary have been exchanged. OUR RELATIONS AVITII ITALY. I have been officially informed of the annexation of the States of the Church to the Kingdom of Italy and the removal of the capital of that Kingdom to Home. In conformity with the established policy of the United states, l nave recognized this chanace. The ratification of the new treatv of commerce between tho United States and Italy has been exchanged. The two powers have agreed in their treaty that property at sea shall be exempt from cap ture in case of war between the two pow ers. The United States have spared no op portunity of incorporating this rule into the obligations oi nations. WEEKLY ENTERPRISE -SUPPLEMENT.- CLAIMS AGAINST STAIN. The Forty-first Congress, at its third ses sion, made an appropriation for the organi zation of a Mixed Commission, for adjudi cating upon the claims of citizens of the United States against Spain, growing out of the insurrection in Cuba. That Com mission has since been organized. I trans mit herewith the correspondence relating to its formation and its jurisdiction. It is to be hoped that this Commission will af ford the claimants a complete remedy for their injuries. It has been made the agree able duty of the United States to preside over a Conference at Washington between the Plenipotentiaries of Spain and the al lied South American Republics, which has resulted in an armistice, with the reasona ble assurance of permanent peace. THE UNITED STATES AND RUSSIA. The intimate friendly relations which have so long existed between the United States and Russia continue undisturbed. The visit of the third son of the Emperor is a proof that there is no desire on the part of his Government to diminish the cordialitj- of these relations. The hospita ble reception which has been given to the Grand Duke is a proof that on our side we share the wishes of that Government. The inexcusable course of the Russian Minister at Washington, rendered it neoessarv to ask his recall, and to decline to longer re ceive that functionary as a diplomatic rep resentative. It was impossible, with self respect or with a just regard to the dignity of the country, to permit Mr. Catacazy to continue to hold interviews with this Gov ernment, after his abuse of Government officials, and during his persistent interfer ence, through various means, with the re lations between the United States and other powers. In accordance with my wishes, he has been relieved of further intercourse with our Government, and the manage ment of the affairs of the Imperial nation has passed into the hands of a gentleman entirely unobjectionable. OUR RELATIONS WITH JAPAN AND CHINA. With Japan we continue to maintain in timate relations. The Cabinet of the Mika do has, since the close of the last session of Congress, selected citizens of the United States to serve in offices of importance in several Departments of the Government. I have reason to think that this selection is due to an appreciation of the disinterested ness of the policy which the United States has pursued toward Japan. It is our de sire to continue to maintain this disinter ested and just policy with China as well as Japan. THE COREAN EXPEDITION. The correspondence transmitted here with shows that there is no disposition on the part of this Government to swerve from its established course. Prompted by a de sire to put an end to the barbarous treat ment of our shipwrecked sailors on the Corean coast, I instructed our Minister at Pekiu to endeavor to conclude a conven tion with Corea for securing the safety and humane treatment of such marines. Admiral Rogers was instructed to accom pany him with a sufficient force to protect him in case of need. A small surveying party was sent out, and on reaching the coast was treacherously attacked at a dis advantage. Ample opportunity was given for explanation and apology for the insult, but neither came. A force was then land ed, and, after an arduous march over a rugged and difficult country, the forts from which the outrage, had been commit ted were gallantly assaulted, and were des troyed. Having thus punished the crim inals, and having vindicated the honor of the flag, the expedition returned, finding it impracticable, under tho circumstances, to conclude the desired convention. I re spectfully refer to the correspondence re lating thereto, herewith submitted, and leave the subject for such action as Con gress may see fit to take. THE ONLY QUESTION WITH MEXICO. The Republic of Mexico has not yet re pealed the very objectionable laws estab lishing what is known as a free zone on the frontier ef the United States. It is hoped that this may yet be done, and also that stringent measures may be taken bv the Republic restraining lawless persons upon the frontier. I hope that Mexico, by its own action, will soon relieve this Govern ment of the difficulties experienced from these causes. CENTRAL AND SOUTH AMERICA. Our relations with the various Republics of the continent and South America con tinue, with one exception, to be cordial and friendly. I recommend some action by Congress regarding the overdue install ments, under the award of the Venzuela Claims Commission of 1SGG. The internal dissensions of this government present no justification for the absence of eflorts to meet their solemn treaty obligations. The ratification of an extradition treaty with Nicaragua has been exchanged. It is a subject for congratulation that tho great empire of Brazil has taken the initiatory steps toward the abolition of slavery. Our relations with that empire, always cordial, will naturally be made more so by this act. It is not too much to hope that the govern ment of Brazil may herealter find it lor its interest, as well as internationally right, to advance toward entire emancipation more rapidly than the present act contemplates. The true prosperity and greatness of a na tion is to be found in the elevation and education of its laborers. SLAVERY IN THE WEST INDIES AND ELSE WHERE. It is a subject for regret that the reforms in this direction wnicn were voluntarily promised by Spain have not been carried out in tho West India colonies. The laws and regulations for the apparent abolition of slavery in Cuba and Porto Rico leave most of the laborers in bondage, with no hop of their release until their lives be come a burden to their employers, x de sire to direct your attention to the fact, that citizens of the United States are large holders in foreign lands of this species of property forbidden by the fundamental law of their own country. I recommend to Congress to provide by stringent legis lation, a suitable remedy against the hold ing, owning or dealing in slave property iuforeign lands, either as owners, hirers or mortgagees by citizens of this Govern ment. CUBA AND SPAIN. It is to be regretted that the disturbed condition of the Island of Cuba continues to be a source of annoyance and ot anxi ety. The existence of a protracted strug gle in such close proximity to our o u ter ritory, without apparent prospect of an nnrlv termination, cannot be other than an object of concern to a people who, while chchniniii!? from interference in the affairs r,f nthfir nowers. naturally desire to see every country in the undisturbed enjoy ment of peace, liberty and the blessings of free institutions. Our naval commanders in r.iiian waters have been instructed, in caso in should become necessary, to spare no effort to protect the lives ana property of bona fide American citizens, and to tho fiiVnitv of tho Has:. it is im'no,! that nil rendin: questions vrith Spain, growing out of the affairs in Cuba, mav lin in the spirit of peace and conciliation which has hitherto guided the two imwprs in their treatment of such questions. THE EDUCATION OF AMERICAN YOUTHS IN CHINA AND JAPAN. To give importance and to add to the effi ciency of our diplomatic relations with China and Japan, and to further in obtain ing the good opinions of these people, and to secure to the United States its share of the commerce destined to flow between these nations and the balance of the com mercial world, I earnestly recommend that an appropriation be made to support at least four American 3'ouths in each of those countries to servo as part of the official family of our Ministers there. Our repre sentatives would not even then be placed on an equality with the representatives ot great Britain and some other powers. As situated, our representatives in Japan and China have to depend for interpreters and translators upon the natives of those coun tries, who know our language imperfect', or procure for the occasion the services of employes in foreign business houses or the interpreters to other foreign Minister's. SUBSIDIES FOR STEAMSHIP LINES. I would also recommend liberal meas ures for the purpose of supporting the American lines of steamers now plying be tween San Francisco, Japan and China, and the Australian line, almost our only re maining lines of ocean steamers, and of in creasing their service. THE NATIONAL DEBT. The National debt has been reduced to the extent of ?8(3,057,12G 80 during the year, and by the negotiation of National bonds at a lower rate of interest, the interest on the public debt has been so far diminished that now the sum to be raised for interest account is nearly seventeen million of dol lars less than on the 1st of March, 1809. It was highly desirable that this rapid dimu nition should t ake place, both to strengthen the credit of the country and to convince its citizens of their entire ability to meet every dollar of liability without bankrupt ing them. But in view of the accomplish ment of these desirable ends, of the rapid development of the resources of the coun try, its increasing ability to meet the large demands, and the amount already paid, it is not desirable that tho present resources of the country should be taxed in order to continue this rapid payment. MODIFICATIONS OF THE TARIFF AND INTER NAL TAX. I therefore recommend a modification of both the Tariff and Internal Tax laws. I recommend that all taxes from internal sources be abolished, except those on spir ituous, vinous and malt liquors, tobacco in its various forms, and from stamps. In readjusting tho tariff, I suggest that a careful estimate be made of the amount of surplus revenue collected under the pres ent laws, after providing for the current expenses of the Government, the interest account, and a Sinking Fund, and that this surplus be reduced in sucli a manner as to afford the greatest relief to the est number. great- There are many articles not produced at home, such as medicines compounded, from which very little revenue is derived, but which enter into general use. All such articles I recommend to be placed on the free list; should a further reduction prove advisable, I would then recommend that it be made upon those articles which can bear it without disturbing home pro duction, or reducing the wages of Ameri can labor. I havo not entered into figures, because to do so would be to repeat all that will be laid beforo you in the report of tho Secretary of the Treasury. SALARIES OF COLLECTORS OF CUSTOMS. . The present laws for collecting revenues pay the collectors of customs small sal aries, but provide for shares in all seizures, which, at the principal ports of entry par ticularly, raise the compensation of those officials to a large sum. It has always seemed to mo as if this system must at times work perniciously; it holds out in ducements to dishonest men, should such got possession of those offices, to be lax in their scrutiny of goods entered, to enable them finally to make large seizures. Your attention is respectfully invited to this sub ject. SPECULATIONS IN GOLD. The continued fluctuations in the value of gold, compared with the national cur rency, has a most damaging effect upon tho increase and development of the coun try, in keeping up prices of all articles necessary in every-day life; it fosters a spirit of gambling, prejudicial alike to na tional morals and national finances. If the question can be met as to how to got a fixed value to our currency that value constantly and uniforml3r approaching par with specie a very desirable objectjwould be gained. THE ARMY-STAFF PROMOTIONS. For the operations of the army in the past year, the expense of maintaining it, the estimates for the ensuing vear, and for continuing the sea coast and other im provements, under the supervision of the War. Department, I refer you to tho accom panying report ol the Secretary ot War. call your attention to the provisions of the Act of Congress, approved March 3d, 1SG9, which discontinues promo tion in tho Stall Corps ot tho Armv until provided for by law. I recommend that the number of officers in each grade of Staff Corps be fixed, and that whenever the number, in any one grade, falls below the number so fixed, that the vacancy may be filled by promotion from the grade be low. I also recommend that when the of fice of Chief of Corps becomes vacant, the place may be filled by selection from the Corps in which the vacancy exists. NAVAL AFFAIRS INCREASE WITHOUT EX PENSE. The report of the Secretary of tho Navy shows an improvement in the number and efficiency of the naval force without mate rial increase in tho expense ot supporting it. This is due to the policy which has been adopted and is being extended as far as our material will admit, of using smaller vessels as cruisers on tho several stations. By this means we have been enabled to oc cupy at once a larger extent oi cruising ground, and to visit more irequentiy the ports where the presence ot our flag is de sirable, and generally to discharge more efficiently the appropriate duties of the navy in time of peace, without exceeding the number of men or the expenditures authorized by law. THE COAST SURVEY. During the past 3rear the Navy has, in addition to its regular service, supplied the men and;ofiicersfor the vessels of the Coast Survev, and has completed the surveys au thorized bv Congress of the Isthmus of Darien and Tehauntepec, and under like authority has sent out an expedition, com pletely furnished and equipped, to explore the unknown ocean ot the iSorth. The suggestion of the report as to the necessity for increasing and improving the material ot the Navy, and the plan recom mended for reducing the personnel of the service to a peace standard by the gradual abolition of certain grades ot officers, the reduction of others and the employment of soino in the service of the commercial marine, are all considered and deserve the thoughtful attention of Congress. RANK IN THE NAVY. I also recommend that all promotions in the navv above the rank of Captain be DAY. DECEMBER made by selection instead of seniority. j-ms course win secure in the higher grades greater efficiency, and hold out an incentive to young omcers to improve themselves in the knowledge of their pro fession. The present cost of maintaining the Navy, and the cost compared with that of the preceding year, and tho estimates for the ensuing year, are contained in the accompanying report of the Secretary of tho Navy. THE ENLARGED RECEIPTS OF TIIE POST OF FICE DEPARTMENT, As shown by the accompanying report of the Postmaster General, exhibits a gratify ing increase in that branch of the public ser vice. It is the index of the growth of edu cation and of the prosperity of the peoole. two elements highly conducive to the vigor 1 and stability ol republics, with a vast ter ritory like ours, much of it sparsely popu lated, but all requiring the services of the mail, it is not at present to be expected that this Department can be made self-sustaining, but a gradual approach to this end from year to year is confidently relied on, and the day is not far distant when the Postoffice Department of the Government will prove a much greater blessing to the whole people than it does now. The suggestion of tho Postmaster Gen eral for improvements in the Department presided over hy him are earnestly recom mended to your special attention, espec ially documents favoring the consideration of the plan for UNITING TIIE TELEERATH SYSTEM Of the United States with the postal S3-S- tem. it is oenevea that by such a course the cost of telegraphing could be much re duced, and the service as well if not better rendered. It would secure further ad vantage by extending the telegraph through portions of the country where private enterprise will not construct it. Commerce, trade and above all the efforts to bring a people widely separated into a community of interest are always benefit ed by a rupid intercommunication. Edu cation, the ground work of Republican in stitutions, is encouraged by increasing the facilities, to gather with speed news from an parts ot the country, the desire to reap the benehts ot such improvements will stimulate education. 1 refer you to the report of tho Postmaster General, for full details of tho operations of last year and for comparative statements of results with former years. THE KU KLUX LAW. There has been imposed upon the Exec utive branch of the Government, the exe cution of tho Act of Congress approved April 20th, 1871, and commonly known as the Ku Klux Daw, in a portion of tho State of South Carolina. Tho necessity of the course pursued will bo demonstrated by the report of the Committee to investigate the Southern outrages. Under the provis ions of the above Ac! I issued a procla mation calling the attention of the people of the United States to the same, and de claring my reluctance to exercise any of tho extraordinary powers thereby confer red upon me, except in caso of imperative necessity, but making known my purpose to exercise such powers whenever it should become necessary to do so for the purpose of securing to all citizens of the United States the peaceful enjoyment of the rights guaranteed to them by the Constitution and the laws. After the passage of this law, informa tion was received from time to time that a combination of characters referred to in this law existed, and were powerful in many parts of the Southern States, partic ularly in certain countiss of South Caroli na. Careful investigation was made, and it was ascertained that in nine counties of that State secret combinations were active and powerful, embracing a sufficient por tion of the citizens to contest the local authority, and having among other things the object of depriving the emancipated class of tho substantial benefits of free dom, and of the privilege of the free polit ical action of those citizens who did not sympathize with their own views. Among their operations were frequent scourgings and occasional assassinations, generally perpetrated at night by disguised persons. Their victims in almost all cases were citi zens of different political sentiments from their own, or free persons who had shown a -iisposition to claim equal rights with other citizens. Thousands of inoffensive and well-disposed citizens were the suffer ers by this lawless violence. Thereupon, on the 13th of October, 1871, a proclamation was issued in the terms of the law, call ing upon the members of the combina tions to disperse within fivo days, and to deliver to tho Marshal or military officers of the United States all arms, ammu nition, uniforms, disguises, and other means and implements used by them for carrying out their unlawful purposes. This warning not having been heeded, on the 17th of October another proclamation was issued, suspending tho writ of habeas corpus in nine counties in that State. Di rection was given that within the coun ties so designated persons supposed, on credible information, to be members of such unlawful combinations should bo ar rested by tho military forces of the United States and delivered to the Marshal to be dealt with according to law. In two of said counties many arrests have been made. At the last accounts the number of persons thus arrested was one hundred and sixty-eight. Several hundred, whose criminality was ascertained to be of an in ferior degree, were released for tho pres ent, these having generally made confes sions of their guilt. Great caution has been exercised in making these arrests, and, notwithstanding the larue number, it is believed that no innocent person is now in custody. Tho prisoners will be held for regular trial in Judiciary tribunals of the United States. As soon as it appeared that the authorities of the United States were about to take vigorous measures to enforce the law, many persons absconded, ard there is good ground for supposing that all of such per sons have been violators of tho law. A full report of what has been done under this law will be submitted to Congress by the Attorney-General. IN UTAH THERE STILL REMAINS A REM NANT OF BARBARISM Repugnant to civilization, decency, and to the laws of the United States. Territorial officers, however, have been found who are willing to perform their duty in a spirit of equity and with a duo sense of sustaining t he majesty ot the law. IN either polygamy nor any other violation of existing statutes will be permitted within the territory of the United States. It is not with the re ligion of the self-styled saints that we are now dealing, but their practices. They will be protected in the worship of God ac cording to the dictates of their consciences, but they will not be permitted to violate the laws under the cloak of religion. LEGISLATION SUGGESTED THE STATUS OF PLURAL WIVES. It may be advisable for Congress to con sider what in the execution of laws against polygamy is to be the status of plural wives and their offspring; the propriety of Congress passing an enabling Act author izing the Territorial Legislature of Utah to legitimatize all born prior to a time fixed in the Act might be justified by its hu manity to these innocent children. This is a suggestion only, and not a recommenda tion. 15. 1871. THE POLICY PURSUED TOWARD THE INDIANS Has resulted favorably, so far as rn , judged from the limited time during which it has been in operation. Through the Sorts of the various societies of ChrlsUans to whom has been intrusted the execution of the policy, and the Board of Commission ers authorized by the law of April 10th 1809, many tribes of Indians have been induced to settle upon reservations, to cul tivate the soil, and perform productive la bor of various kinds, and to part ially accept civilization. These are being cared for in such a way, it is hoped, as to induce those still pursuing their old habits of life to em brace tho only opportunity which is left them to avoid extermination. I recommend liberal appropriations to carry out the In dian peace polity, not only because it is humane,;Christiaa-like and economical.but because it is right. I recommend to your favorable consideration also the policy of granting a Territorial Government to In dians in the Indian Territory, west of Ar kansas and Missouri, and south of Kansas. In doing so every right guaranteed to the Indians by treatv should bo Such a course misfit, in tim. ltl mana of collecting most of the Indians now be tween tho Missouri river and Pacific ocean, and south of tho British Possessions, into one Territory or one State. Tho Secretary of the Interior has a treaty upon this subject at length, and I recom mend to you his suggestions. THE PUBLIC LANDS. I renew my recommendation that the public lands be regarded as a heritage to our children, to be disposed of only as re quired for occupation and to actual settler. Those already granted have been, in groat part, disposed of in such a way as to secure access to the balance by the hardy settler who may wish to avail himself of them, but caution should be exercised. Then, in attaining so desirable an object, our educational interests may well be as sisted by the grant of proceeds of sale of public lands to settlers. I do not wish to bo understood as recommending in the least degree a curtailment of what is being done by the General Government for the encouragement of education. THE REPORT OF THE SECRETARY OF THE INTERIOR, Submitted with this, will give you infor mation collected and prepared for publica tion in regard to the census taken during the year 1870, tho operations of the Bureau of Education for tho year, the Patent;Of lice, the Pension Office, tho Land Office and the Indian Bureau. THE REPORT OF THE COMMISSIONER OF AGRICULTURE Gives the operations of his Department for the year. As agriculture is the ground work of our prosperity, too much impor tance cannot be attached to the labors of this Department. It is in tho hands of an able head, with able assistants, all zealously devoted to introducing into the agricultural productions of the nation all useful products adapted to any of the var ious climates and soils of our vast terri tory, and to giving all useful information as to the method of cultivation of tho plants, cereals and other products adapted to it particularly. Quietly but surely THE AGRICULTURAL BUREAU IS WORKING A GREAT NATIONAL GOOD, And if liberally supported, the more wide ly its influence will be extended and the less dependent we shall be upon tho prod ucts of foreign countries. Tho subject of compensation to tho heads of Bureaus and officials holding positions of responsibility and requiring ability and character to fill such properly, in one to which attention is invited. But few of tho officials receive a compensation equal to the respectable support of a family, while their duties are such as to involve million of interest. In private life services demand compensation equal to the services render ed; a wise economy would dictate tho same rule in the Government service. I have not given tho ESTIMATES FOR THE SUPPORT OF THE GOVERNMENT For the ensuing year, nor the comparative statement between the expenditures ot tho year just passed and the one just preced ing, because all these figures are Contained in the accompanying reports, or in those presented directly to Congress. These es timates have my approval. TIIE REBELLION CONDITION OF THE SOUTH More than six years having elapsed since tho last hostile gun was fired between the armies then arrayed against each other, one for the perpetuation, the other for tho destruction of tho Union. It may well be considered whether it is not now time that the DISABILITIES IMPOSED BY THE FOURTEENTH AMENDMENT SHOULD BE REMOVED. That instrument does not exclude the bal lot, but only requires the disability to hold office of certain classes; when the purhYy of tho ballot-box is secure, a majority of one is sure to elect officers reflecting tho views of the majority. I do not see tho advantage or propriety of excluding men irom omce merely because they were, be foro the Rebellion, of standing and charac ter sufficient to be elected to positions re quiring them to take oath to support the Constitution, and admitting to eligibility those entertaining precisely the same views, but of less standing in their com munities. It may be said the former vio lated an oath, while the latter did not. Tho latter did not have it in their power to do so; if they had taken this oath, it can not be doubted that they would have broken it as did the former class. If thero are any great criminals distinguished above all others for the part they took in oppos ition to the Government, they might, in tho judgment of Congress, bo excluded from such an amnesty. This subject is submitted to your careful consideration. The condition of the Southern States is, unhappily, not such as all true patriotic citi zens would like to see; social ostracism for opinion's sake, personal violence, or threats toward persons entertaining politi cal views opposed to those entertained by the majority of the citizens; prevents im migration and tho flow of much-needed capital into tho States lately in rebellion. It will be a happy condition of the country when the old citizens of these States will take an interest in public affairs, promul gate ideas honestly entertained, vote for men representing their views, permit the sole freedom of expression and ballot in those entertaining different political con victions. DISTRICT OF COLUMBIA. Under the provisions of the Act of Con gress, approved February 21st, 1871, a Ter ritorial Government was organized in tho District of Columbia. Its results have thus far fully realized the expectations of its ad vocates. Under the direction of the Terri torial officers a system of improvements has been inaugurated, by means of which Washington is rapidly becoming a city worthy of the Nation's Capital, the citizens Of the District having voluntarily taxed themselves to a large amount for" the pur pose of contributing to the advancement of the seat of Government. I RECOMMEND LIBERAL APPROPRIATIONS On the part of Congress, in order that the Government may bear its just share of the expenses of carrying out various systems, of improvement. 0 0 O o G O o 0 o o o o o o o o o G o