OREGON STATESMAN.
?BE81DUT'I MESSAGE.
Fellow-citizens or tub S skate
- AND IloDSB OF RePBSSEBTATIYSS :
C05GATCtlT0r THE UNION RESTORED.
Ainrot peace aod general protperity to thii
ntion baa paascd since lb last assembling of
- Congress. Wa have, through kind Provideasa,
been blessed with tbuadoat crops, and hare been
spared from complications and war with foreign
nation. In onr midst eomparatire harmony had
been lettered. It la to be regretted, however,
that a free exereite of the elective f ranch Ue haa
by violence and intimidation been denied to eiti
vsos in exceptional oaaea and in several of tbe
Statea lately is rebellion, end the verdict cf the
people baa thereby been reversed. Tbe State ef
Virginia, Mississippi and Texaa hare been re
stored to representation in oar national council.
Georgia, the only State now without representa
tion, may confidently be expected to take her
place there, also, at the beginning of the near
year ; and tben, let n bope, will be completed
the work of recomtrnotion with an acquiescence
on tbe part of tbe whole people in the national
obligation to pay tbe pnblio debt, created as the
prioe of our Union, tbe pensions to onr disabled
soldier and sailors and their widow and or
phans, and in tha changes to tbe Constitution,
which have been made necessary by tbe great re
bellion.
There t ne reason why w
. .
tneUld not advance
in material prosperity and happiness as no othef
-nation did after so protracted and devastating a war.
PROTECTION TO rjRKIQEKM III FRANCE.
Soon after the exoiting war broke oat in Europe
the protection of the United Statea Minister in
Paris waa invoked in favor of tbe North Germana
domiciled in French territory, and instructions
were issued to grant ton proteotion. Thi baa
been followed by an extentioa of American pro
tection to citiaeaa of Saxony, lies so and Sexe
Cobnrg, -Gotha, Colombia. Portugal, Uruguay,
the Dominican Republic, Equador, Chile, Para
guay and Veaexaele, in Pari. Tfca oharge wa
an oneroo one, rcqniriag eonatant and severe la
bor a well a the exercise of patlenoa, prudence
and good judgment. It haa been performed to
the entire satis faction of thl Government, and,
aa I am officially informed, equally to to tbe eat-'
iafaction 91 tba Government of North Germany.
recognition or tan frencb republic.
Aa toon as I learned that a Republic bad been
proclaimed at Paris, and that the people oi
franco had ofquioeood in thechaage, the Minuter
of the United Statea waa directed by telegraph to
recognize it and tender my congratulations, and
those of the people of tbe United State, on the
re-establishment io France of n system of gov
ernment disconnected with toe dynastic tradition
of Europe. It appeared to bo a proper tubjeot
for tbe felicitation of American, and should tbe
present struggle result in attaching tbe heart of
tba Frenob to oor simpler forma oi representative
government, it will be a subject of still farther
satisfaction to onr people. While we make no ef
fort to impose oar institutions npon tba inhabit
ant of other eonntriee, and while we adhere to
oor traditional aaatrality in eivil conflicts else
where, we cannot bo Indifferent to tba strength of
American political jdees in a great and highly
oiviliaed country like France.
- AMERICAS BBPIATION IM EUROPE.
We war asked by tbo new government to nee
our offleej Jointly with those of th European
power, in tbo in tercet of peas. An answer waa
made that tbe established policy and tree Interest
of the United Statea forbade tbem to interfere ha
European questions Jointly by European Power.
I ascertained informally and unofficially that the
government of North Germany wa not tben di
posed to listen to such representations from any
Power, and though earnestly wishing to see tbe
blessing of pecoe restored to the belligerent,
with all of whom tbe United States are on terms
of friendship, I declined on the part oi this gov
ernment to take a (top which ooald only result in
injury to oar true interests, without advancing the
objeet for which our intervention was invoked.
Should the time eome when tbe ection of the
United States can hasten tba return of peace by a
single boor, that action will be heartily taken.
BECTRALITT.
I deemed it prudent, in view of the number of
persons of German and French birth living in
tbe United States, to issue, soon after tbe official
notice of a state of war bad been received from
both belligerents, a proclamation, defining the
duties of the United State as a neutral, and the
obligation of person residing within their terri
tory to observe their lewa and tbe law of nationa.
That proclamation wa followed by other, at oir
oumstence teemed to eall for them. The people,
tha acquainted in advance of their duties and
obligation, have assured in preventing violations
of the neutrality of the United Statea.
TBE Cl'IAS lilRTRRECTIOX.
It is nt: understood that the ecndition of tha
insurrection in Coba has materially changed since
tbe close of tbe last session of Congress. In aa
eerly stage -of tbe contest the authorities of Spain
inaugurated a ayitem of arbitrary arreets, ef eloee
confinement, of military trial, and execution of
perion suspected ef complicity with tbe inter- j
gent, and of summery embargo of their proper
lies and requisitions of their revenue by execu
tive warrant. Such proceedings, so far as they
affect tbo perion or property of citiitoa of tbo
' Uoked State, were in violation- of the provisions
. of the treaty of 1794, between the United Stole
and Spain. BeprneoatBttoaa of injuriee resulting
to teveral person! claiming to bo eitlxeo of tbo
United State, by reason of tnek course, were
made to tbo Speaith goveraaseat from April 1889,
to Jan teal Tbo Spanish Minuter at W ashing
ton baa been clothed with a limited power to aid
ia redrafting snob wrong, bat this power waa
found to be withdrawn, ia view, aa it wa laid, of
tbo revolutionary situation in which tba Island of
Cuba the wat; wbieb, however, did aot lead to a
(uspention of tha extraordinary and arbitrary
fanotion exercised by tba Executive power of
Caba, and wo were obliged to make our worn -plaint
at Madrid, and la tbo negotiations thus
opened and (till pending there, tbe United 8tatae
only eleimed that for tbo future tba right aoearad
to their eitixea by treaty saould bo respected ia
Caba, aad that aa to tba peat, ajoiat tribunal
ehould be established in tba United State, with
full jurisdiction over all taeh claim; before which
' impartial tribunal tba claimant would bo required
to anbmit fit case, va in otner nana, cpein
would bo ft liberty t reverse every material fact
aad tbue complete equality weald be dona.
r ADJl'BTeB CLAIM. -
. ' The case which at ana time threatened serious
ly to affect tbe relatloa betwooa tba United
. Statea aad Spaia baa already been disposed of.
. Thl waa tba claim of tba llovd Atpiimail:
This wa nf erred to arbitration by mutual con
sent, and has resulted la aa award to tha United
btatee, for the owners of tba aame, of $19,782 In
" wold. ' Another and long pending claim of like
n store, that of tba whale-chip Canada, haa beeo
diepoeed of by friendly arbitration during tha
present year. It Waa referred, by the joint eoa-
- sent ol Brazil ana IB L otted Mete, ana the no
tion of Sir Edward Thornton, Her Brittaanie
Majetty' Minister at Washington, who definitely
undertook tha laborious task of examining the
immense rots of eorrespoudenee and tettimoay
submitted by tbo two Government!, aad awarded
to tbo United States tha aum of $100,709 in gold,
" which has aiaoo boon paid by the Imperial Gov-
. ernment. r
Tbrst recent example abow that tbo mode
which tbey bovo proposed to Spain for adjusting
tba pending claim ia just aod equitable, and
may bo agreed to by both nations without dis
honor. It is to bo hoped that thi moderate de
mand mey be eeoeded to by Spain without fur
ther delay. Should tbo pending negotiation,
unfortunately aad unexpectedly, be without re
suit, H will.thea become my duty to communi
cate tbo feet to Congress and invite its action oa
the sarjeer.
. BXTBADITIOlt TREATIES, -
Tbo policy referred to, it I presumed, will en
gage your ears est attention. It U tbo obvion
iotcrest, especially of aeighboriag nation, to pro
, vide againat imraeotty te tboco who may have
committed high crime within their borders, aad
who may have (ought refuge abroad. For thi
"parpoa extradition treaties hava beaa concluded
with aevoral of tha Central American republics,
aad other arc ia progress,
- vaaaiosLAx claim. ;
.Tha sense ef Cob free ia desired, at early at
may bo eeaveaieat, am tha proceeding of tha
commission on tha claim againat Venetusle, as
. aa com mutated ia tha metier, at of Mareh 4 th,
1869, and Mareh let, 1879, aad Mareh Slat,
1870. - It haa not been deemed advisable to dis
tribute nay of tbo money received from that
Govern moot until Ceagree (hail hava acted apoa
the tubject.
-tV TBB XAIIACBB IE CBIBA.
- Tha massacre of Freaoh aad Prueslaa reei
. deat at TienUia, uadar eireumstaneee of groat
barbarity, watnppotd by aame to hava been
premeditated, aad to iadieite a parpoaa aaaeag
tha popuiace to ixtermlaate foreigoer hi tha Chi-
aspire. Tbe ovideooe fails te establish
sob supposltioa, bat how a complicity be
tween tba local authorities and tba snob. Tba
Government at Pekin, however, seems disnoeed
te fulfill it treaty ebligntioa, to far aa it U
able to do. Unfortunately the new of tbe war
between tbo German State and Franoe reached
Chiaa eooa aQer the massacre. It would appear
that tbo popaiar mind became poaseated with
the idea that thi eootett, extending to Chinese
water, would neutralise tbo Christian inflnaoo
and power, and that the time wa coming when
the superstition mass might expel all foreigner
and restore Mandarin iaflaenoe. Anticipating
trouble, I invited France nod North Germany to
make aa authorised suspension of hostilities in
tbo Eat, where they were temporarily im
pended by tot of the commander!, and to not to
gether fpr the future proteotion in China of tha
lite and property of Amerioaot and European.
THB LATE TBADB BATCBALU AM0N TKAETT.
6inoe adjonrament of Con cress, the ratification
of tba treaty with Greet Britain, for abolishing
tha mixed eonrt for tbe (oppression of the slate
trade, bavo been exohanged. . It is believed tbe
elava trade it confined to the eastern coast of Af
rica, whence tbe (lave era taken to Av'oin"niBr-
kets. ; Tbo ratification of tbo naturalisation con
vention between Great Britain and tha United
State have also been exohanged during tbo ra
ce, and tha a long 'standing dispute between
tbe two Governments haa been settled in acoord
anoa with tbe principle always cos tended for by
tbo United State.
I - BOUBDARV DISPUTE.:
In April laFt, while engaged in locating a Mili
tary Reservation neer Pembina, a corps of En
gineer discovered that tha commonly received
boundary line between tbo United State and
British Poiteiiioot at that place ia about 5,700
Li -t .south of the true poaltion of the aeaith par-
Vall.l. and tha Una. wh.n rna nn kt i. innnmil
to be tha true position of that parallel, would
nave tbo fort of the Iludtont' Bay Company at
Pembina, within tbo territory of Ibo United
.Stale. Thi information being eommunioated to
the Britith Government, I waa requeeted to oon
sent, and I did content, that tbo British occupa
tion of tbo fort of the Hudson' Bey Company
ahould continue for the present. I deem it im
portant, however, that tbi part of tba boundary
lines should be deflnitalv fixed be a taint aom.
mittion of the Governments, aod I submit here
with estimates of the oxpooe of uob a commit- f
tlon oa the part of tbo United State, and recom
mend aa appropriation for that purpose. The
land boundary it already fixed and marked from
tbo (ummit of the Bocky Mountain to Georgian
Bay. It should now in like meaner bo marred
from the Lake of the Wood to the summit of the
Becky Mountain.
I regret to ty that no conclusion ha
been reached for an adjustment of tbo claims
against Great Britain, growing out of tbe course
adopted by that Government during the rebellion.
The Cablaet of London, ae far as its views have
boon expressed, doe not appear to bo williog tc
concede that bar Msjeaty's government was guilty
of neglect, or did any net during tbe wer by
which the United States baa any juit can of
complaint. Our firm and unalterable convictions
are directly tbo rover. I therefore reeommead
to Congmea to authorize tbo appointment of Com
missioner to take proof of tbe amoonta and own
ership of Teasels, aod their elaima, aad that u-
kthority be given for n settlement of those claims
by tba United btatee, to that tbi government
shall hava ownership of all private claims, at
well ad respoaaibl control of all demand agaioit
Great Britain, aad whenever her Mejeoty'a gov
ernment thall entertain a desire for a full aad
friendly adjustment of tbo claim, tha United
State govern meat will eater apoa their considera
tion with aa earnest desire for a eonelosioo eon
(latent with tho honor aad dignity of both aa
tioaa. .
PBACE COBPEEEBCE BETWEEN BPAIB ABO TBE
BOOTH AMERICAN BEPCBLICt.
The long deferred peaoe conference between
Spain and tbe South Amerleen Republic haa been
inaugurated at Washington, under tbo auspice of
tbo United State, pursuant to tbo recommenda
tion contained in the resolution of tbe House of
Representatives, 17th of Decedtber, 1S66. The
Executive Department of tbo Government hit
given it friendly office for tb promotion of
peaeo aod harmony between Spain and tbe allied
Republice. Hesitation and obstacle occurred to
the acceptance of tbe offer ; ultimately, however,
a conference wa arranged, which wa opened in
thi city on tho 29th ef Ootobor lest, at whioh I
authorised the Secretary of State to preside. It
waa attended by tbe Minuter of Spain, Peru,
Chile and Ecuador. In eonseqnence of the ab
enoe ot a representative from Bolivia, tbe con
ference wa adjourned until tbe attendance of a
Plenipotentiary from that Republio oould be se
cured, or other measure could be adopted toward
compassing its object. Tbe allied end other Re.
publio of Spanish origin on this continent may L
sec is this faot a new proof of cur sinoere interest
in their welfare, and of our desire to aeo them
blessed with good governments, capable of main
taining order and preserving tbeir territorial in
tegrity, and of our sinoere with to extend our own
commercial and (Ooial relatione with them. Tbe
time la not probably far distant when, in the sat
oral eourae of events, the European political con
nection with tbi continent will ceaso. Our poli
cy ahould bo shaped in view of this probability,
so at to ally tbe commercial interests of the Span
ish Amerioao State more clotely to our own, and
ttaut giv the United State all th pre-eminence
end all tbe advantage which Mr. Monroe, Mr.
Adama aod Mr. Clay eoatemplated when tbey
proposed to join tbem to tho Coo greet of Panama.
; ANNEXATION OF IAN DOMINOO.
During tbe last session of Congress n treaty for
tbo annexation of tbe Republio of San Domiogo
to tba United Slate failed to receive tha requisite
two third vela of the Sonata. I wa thoroughly
convinced then that the beet interests of tbe oonn
try, commercially aad materially, demeeded ita
rattfioatloB. Time hat only confirmed me la thia
view. I aow Irmly believe that the moment It ia
haawn that tba United Statea have entirely aban
doned tho project of aoeepting a a part of ita
territory tha lataad of San Domiago, a free part
will he negotiated for by Eoropaaa nationa. In
tha Bay of Sam ana a largo commercial city will
rpring up to whioh wo will ha tributary, without
receiving oorreeponding beoefit. Tba Govern
BMBt of Saa Domingo hat voluntarily toaght thii
annexation, it u a weal power, aamoering
probably less than ona hundred aad tweatr thou
sand souls, and yet poeaeuiag one ol tha richest
rooalUM an dor the sue, capable el anpnortiag
pepalatioa of 10,000,909 of people ia luxury.
Tha people of San Domiago, aot oapablo of main
tain lag themselves In their present condition.
matt look for outside support. They yearn for
tha protection of ear free iettitutions aad laws ;
ear pro greet aaa emitxatroa ; aa thall we re
fuse tbem ? The acquisition of Baa Domiago it
detirable he-saute of it geographical position. It
eemmead the entrance to tho Caribbean Sea, aad
tbo Isthmua transit ef eomaterea. It poeaeeeei
tba richest soil, eome of tba beet aad moot oapa
clou harbor, a moot tnlubrioot climate, aad tb
moot valuable product of tb forest, mine and
toll, ol any of the West India 1 aland. Its 00
session by tba United State will, la a few years.
bu!:d ap a aoattwito commerce 01 Immense mag
nitude, wbieb will go far toward restoring to
tbo United Statea our loot merchant merino
service. It will give to a those article whieb
wo cannot costume to a great extent, aad whioh
wa 40 aot produce ourselvee, that equalising
our export and imports. Ia case of a foreign
wor, it wilt give nt commend of all tbo islands re
fcrred to, aad tba prevent aa eaemy from again
posts sslng himself of a rondetvoua npon our cost.
At present, cur coasting trade between the Statea
bordering on tao Atlantic and tboae bordering on
tic Gulf of Mtxioo ia by tha Bahamas aad Antil-
lee. Wo must, oa it were,, -pass through foreign
countries to get by from Georgia to the otst ooatt
of Florida. San Domingo, with a stable Govern
ment, aader whioh her immense resources can be
developed, will give remuaerativa wages to 10,-
000 laborers not. now upon tbo island.
Thkt
labor will take advantage of every available
meant of transportation to abandon tha a-ijaetnt
islaada and seek tbe blessings of Itt freedom,
where each inhabitant will receive tho reward of
hit own labor. Porto Rice and Coba, as a se
quence, will have te abolish slavery, as a measure
of self preservation to retain her laborers. 8ea
Domiogo will become a larger 00 n tamer of the
products f Northern farma and manufactoriei.
Tho ebcap rates at which her eliiiena eaa bo fur
nished with food, tool aad machinery, will make
h accessary that coatiguoa island ahould have
tho tame advaatagea ia order to compete with tba
prodeotioa of auger, coffee, tobacoo, aad all hiada
of tropical fruit. Tbi will also eaa ap to at a
wider market for our products. Tba produotkm
ef ear supply of these article will cut off mere
than oaa hundred millions of ear annuel imports,
betides largely increasing oar exports. With
each a pietere before a. It I easy to aeo hew oar
large debt abroad ooald ultimately ha extinguish
ed. With tha baiaaco of trade againat as, ia
eluding interest of bonds hold by foreigner, aad
saoncy ship meat for oar oitisea traveling ia for
eign lands, equal to tba entire yield ef tho pre
eWa metala ia tbit aoaatry, it is not so easy to
tea how tbit retalt ia to ha otherwise accom
plished than by tha aequisitioa af Saa Domiago.
It is aa adbesioa to tho Monroe doctrine t it a
aaaatora af aadoaal proteotion ; it i aaaertiagour
Jaet el aim ta a controlling roflaeaca over tha com
mercial traffic seen to tow from tha Watt te tba
Beat, by way of the Isthataa of Dariea U la to
haiid ap oar merchant marine ; it is ta furnish
now market for tha products of onr farms, shops
aad Bannfaotoriot ; it U to make slavery aaanp.
portable ia Cub and Porto Rioo at once, aad
ultimately to la Braxil; It it to tettle tho aabappy
condition of Cuba, and aad aa exterminating con
flict j It it to provide honest mean of paying oar
boned debit without overtaxing tba people; it it
to furnish our citiaeaa with tbe neoeeoeriee of
every day life at cheaper rates than aver before ;
it it, ia lino, n rapid tCHde towtrdt that greatae
which tha Intelligence, Industry and enterprise of
tbo oitlieo of tbo United State are entitled to
assume among tho nation. In view of tho Im
portance of tbit question, I earnestly urge npon
Congreit early notion aad aa expression of itt
views as to tbe best mean of aeqoiriug San Do
miogo. My suggestion is, that by joint revolu
tion of tho two Home of Congress-, the Execu
tive bo authorized to appoint a 00m mission to no
gotiate for a treaty with tbe authorities of San
Domingo for tbe acquisition of that island, and
that an appropriation bo made to defray tba ex
pensee otfuoh commission. Tbe question may
then" oVvdetermined by tbo action of tbe two
II ousts of CoBgreUJeJoa a resolution of annexa
tion as in ihnvexte of tbe ecqaiaition of Texaa. So
4m"vinced em I of all tbe advantages to flow from
tbe acquitttioa of San Domingo, aod of the great
disadvantage, I might almost tay tbe tslamitle
from non-acquisition, that I believe tbo tubject
ha only to be inveitigated to be epprced.
THE DBITED BTATEE AMD MEXICO.
It is to be regretted that our represeatatioua in
regard to tba injuriou effect, especially upon tbo
revenue of tbo United State, of the policy of the
Mexican Government in exempting from import
duties a large tract of it territory on our border,
have not only been fruitless, but that it 1 even
proposed in that country to extend the. limit
witbia which tba priviiego adverted to baa hltfaeN
to been enjoyed.
. FINANCIAL.
To tbo laat session of Congreai I respectfully
recommended that an appropriation be made, and
authority be given to itsue new bill, upon uob
paper aod in tuch amount at may be detlgoated
y th Secretary of tba Treasury. The Comptrol
ler ot Currency, in ait report for 18C9, recom
mended the eetablishmeat of aa agency in the city
of New York, under tbo control of the Natloaal
Bank for th redemption of their iaioo. Ia tub-
ttaooa tbit rooommoadatioa teems to bo not only
tVP"i knt necessary
The txpense should bo
Coupled with tbe recom
uur" D " ";
mendation, I take thi occasion to tay that tha
banking system throughout the oonntry appear
to be well menaged, and to answer every reason
able purpose for which it waa established. It I
no doubt true that Treasury notes, representing
an equal amount of publio debt, without Interest,
are a most economical circulation by tba Govern
ment ; but it should bo considered that tbe bank
ing institutions of tbe oonntry are ageooiec by
which butioett is established and fottered. Tbe
whole lyttem of booking ebould be extended only
for tbe purpose of meeting tho demanda of busi
ness, but when demanda are urgent, eoaocssioa
should be made upon tbo grouod that the prosper
ity of business ia mora important than tha mere
taring of interest arising from tbe circulation of
Treasury notea, exoloding ro-deposit.
Tna MIET BT1TBM OF TEE COOBTBT.
Tho amount ef gold nnd silver deposited at tbo
Mint and its several brancbea during tha last
fiscal year, wa $30,408,788 19; coinage for the
year wa $24,438,011 ; and th value of gold and
silver bar ttamped wat $8,748,862 91. I respect
fully ash tb attention of Congress to n bill pre
pared ia thia deportment, and submitted at tbe
last session, aod to tha aooompanyiog report rela
tive to tbo mint aad ooinage yttem throughout
tbo country.
Liear aoctaa.
A report from tho Lighthouse Board sets forth
ia detail tbe difficulties which have arisen ia that
branch ef tho publio service from operatioea of
tbe fifth feotioa of tbe act cf wuly 12th, 1879,
makiog appropriation for th Legislative aad Ex
ecutive expenees of the Government for tho yeer
ending June SOth, 1871. Legislation is ssked for
by the Board, it seems to me to be necessary
that n report of tbo Superintendent of tbo Coast
Sorveya should be given.
CANADA vWD tlUR CUMEDXaa.
Tbe oourt ported by tbe Canadian authorities
toward the fishermen of the United State during
the past season, baa aot been marked by a friend
ly feeliog. By tbe first ertiole of tbe Convention
of 1818, between Great Britain and tbe United
Stetes, it was agreed that the inhabitants of the
United Stetes should have forever, in common,
tbenavigatiou of tbe St. Lawrence. SinoeMr. Clay
advanoed bis argument in favor of our right, the
principle for which be oontended baa been frequent
ly and by various nation recognised by lew or by
treaty, and ha boea extended to several other great
river by tbo treaty eoncluded at Mayence in 1331.
Tha Rhine wa declared free from the point wbe.e
- I rtt navigable into tbe aea. By the eonven-
tioo between Soain and Portugal, eonoluded -in
1833, tbe navigation of do Douro throughout ita
whole extent, was made free for tbe (object of
bcth Crowns. In 1853 the Argentine Confedera
tion, by treaty, threw open the free navigation of
the Parana and l-roguay to tbe merchant vessels
of all nations. Iu 1856, tbe Crimean war was
eloted by a treaty which provided for the free
navigation of the Danube. In IsaS, Bolivia, by
treaty, declared it regarded tbe rivers Amaaon
and La Plata, in accordance with tbe fixed prin
ciples of international law, as highways or chan
nel!, opened by nature for the oommeroeef all na
tions. In 13o9. lirl Paraguay was made free by
treaty ; and in December, 1S66, tbe Emperor of
Brasil, by Imperial decree, declared tbe Ametoa
to be epea te all, tho frontier of Bretil to tbe
merchant ships of all aatioaa. Tbe greatest liv
ing British authorities on thia subject, assertiag
the abstract right of the British elaim, aay it
seams diffiouK to deny that Great Britain may
ground her refusal apoa strict law 1 hat it I
equally difficult to deny first, that ia e dolag
see exsrclaee harshly aa extreme aad baa law ;
second, that her coadaet with respect to tho nav
igation of tna at. Lawranoa It ia glaring ana dis
creditable jaeonaiatouey wita bar conduct la
poet to tbe navigation of tha Mississippi, oa tha
ground that aba possessed a email domain in
wbieb tbe Mississippi took ita rite. She insisted
on this right to navigate the entire volume of ita
water, ea tbe groaad that tbo posies ted both
bank of tbe St. Lawrence, where It disembogue
itself into tba tea. Saa denie to tba United
Slates tba right of tha navigation throagh about
one heir of tha waters of Lake Ontario, ana,
Huron and Superior; while tbo greater portion of
these lakes, aad the whole of Lake Miehigaa.
through whioh tba river flew, are th property cf
tbo lotted States. Tbo whom natloa It interest
ed io securiog cheap traatportatioa from tba
State of tha Went to tho Atlaatia. Te oitlaeat
ef tho State it secures a greater return for tbeir
labor ; to tha inhabitants ef the seaboard it offer
cheaper food ; to tha nation aa Increase lath aa
aoal supplies ef wealth. It Is hoped tbo Govern
moot of Groat Britala will see the Justice of aban
doning the narrow and inconsistent elaim to
which her Canadian proviaoes have urged her ed
herooo. Tha AUantio woold ho ia foreign bind.
Tbeir vessels on trant-Atlantic voyages, having
aoeeea to our lake porta, which woold bo denied
to American vessels en similar voyages. To
ttato tnoh a propotitioa it to refute it Justice.
During tho Administration of Mr. John Qoincy
Adama, Mr. Clay uaqeeatloaablv demenetrated
tho aataral right of tbo eitliea ef the United
State to the BavlguUon of thia river, elaimiog
tha Aot of Congress ef Vienna npon tbe Rhine
aad other rivers, ia which all nattoat stared
Tbe judgment of Euroneea Inrlsta and statesmen
i that th inhabitant ot n country through
which a navigable river parses, bava a natural
right to enjoy tbe aevicatioa of that river to
and into tbo eea, oven through tbe territory of
anotner rower.
BNCOCBAeBMBNT TO AMERICAN COMUERCB.
Our depressed commerce is a subject to whioh
I called your special attentioa at tbe lest session
of Congres. I suggested tbat it will ia future,
have to look more to the eouatries south of us
aod to China and Japan. !ar rf p-aee&tatirst te
ati taeee uovernmeot rm exerted toetr mnu
eaeo to enoourage trede between the United State
aad the eoantrie to wbieb they ore accredited; but
tbe feet exist tbat tbe carrying is done almost
entirety la foreign bottoms, and while thia state
of affaire exists, wo cannot control oor doe share
of the commerce of tbo world. Tbat between the
Pacific State and China and Jepsn ia about all
tha carrying trade now carried on by Americaa
vessels. I would reeommead a liberal policy to
ward tbat line of American steamers, one tbat
wilt latere ita tuceett. and ita mora I Bereaved
aeeraloeat. Tbo coat of boildiag Iron vessels
toe only one tbat oaa eomoete witb foreiga snips
ia th carrying trade 1 so much greater ia tbe
Ualtad Stetet than ia foreign countries, that
without eome aarUtaaoa from Ibo Geverameat.
tbey eaa aot be tuocesa fully built hero. There
will he several nropetitieot laid before Congress
ta tae neuron of tba P repeat sessloa. looking to
remedy for thia evil, even If H thoald ha at some
oxpoata to tha Natioaal Treasury. I hope taeh
encouragement will bo given a will secure Aatert
aaa ahipping aa tha high teas, aad Aatarieaa
shipbuilding at home,
A BAFBB BOILDtNO FOB TBE 00 VERB MEET AB-
. cairt WABTSD.
Tha eoaditioB of tha archives of .t.'J?prt
aseut of State calls for tha early aotioof Coo
grata. Tha buildlag aow rented by that Depart
asoat ia a frail stroetare, at an taeoaveaieut dis
tance from tha E amative Mention nnd front tha
otbr Depart meata j it la Ul adapted to the pur
poses for which it ia used ; haa aot capacity to
accommodate tha archives, aad it aot Ire proof.
Itt remote trtuatioa ; Ita tUndsr ooastnutioa aad
the abseaea of a (apply ef water ia tba neighbor
hood leave but tittle hope of tafety for either tha
boildiag or itt contents. Ia aaaa of tha accident
of a fire, ita deatruetioa would Involve tho loss of
the rails containing tbo original note aad resolu
tions ef Congress ; ef tbe history and records of
tbe Revolutioa aad of tbo coafodcratloa ; of tbo
whole series of diplomatic aad consular archive
since the adoption of tho Constitution ; of the
many other valuable records aod paper left with
tbet Department when It wat tba prlecipal de
pository of tba Government archives.
I recommend an appropriation for tho construc
tion of n building for tha Department of State.
DEFABTBENTAjL CEAX6EI ICCGESTID,
I recommend to your reconsideration tbo pro
priety of transferring to tbo Department of the
Interior, to which tbey teem more appropriately
to belong, all powers aod dutiea 1n relation to
tba Territories with which tbe Department of
State it now charged by law or usage ; end from
tbe Interior Department to the War Department
of the Pension Bureau, to far at it regulates tba
payment of soldiers' pensions. I woald further
recommend tbit the pey meet of naval pensions
be transfsrred to one of the bureaus of tbo Navy
Departmeot.
TBE ESTIMATE SOB TBB FBE8EBT FISCAL TEAS.
The estimates for the expenses ef tbe Govern
ment for the fiseel year arc $1,824,434,001. Lest
for the current one ; bot tbey exoeed tbo appro
priation for tbo present year for tbo same item,
$39,721, In this estimate, however, are included
$22,338,278 37 for publio weika heretofore be
gan under Congressional provision, and of whioh
only ae much ia asksd as Congress may e hoots to
give. The appropriation for the same work, for
the present ftseel yeer waa $19,845,180 08.
THE PLVCTCATION IN OOLD TBB EVILS OF A BE-
PBBCIATED CCBBEBCT.
Tbe average value of gold, at compared with
Notional currency for tbe year 1889, wat about
134, aad for eleven months ot 1370 tho same rela
tive Talno bat been about 115. Tbo approach te
apeeie basis ia very gratifying, but the fact eaa-
aot be dealed tbet Ratability of tba value of our
eurroocy it prejudicial to our prosperity, aod
tend to keep ap prices to the detriment of trade.
The evil of a depreciated aad fluctuating curren
cy are to great, that now, when tbe premium en
gold boa (alteo to muoh, It would seem tbet tbo
time ha arrived whoa, by prudoat legialation.
Congress should look tb n policy whioh would
place ear eurroacy at par with gold at ao distant
By-
ran TARIFF QUESTION AND BBVENCB BEP0BN.
The tax eolleoted from the people hat boon re
duced more than $80,000,000 per aaaam. By
ttetdineai in ear p resect coarse there is ao roaaoa
by, ia a few abort jeers, tbo fiettoaal tax -gath
erer may aot disappear from tha door of tho citi-
aJmoe entirely. With tbe revenue stamps
ditpeuied by Poetmaetere la every community ; e
tax apoa liquors of all sorts, aad tobaeeo la all
forma ; aod a wise adjuetmeat ef the tariff which
ill net a dutv onlv a dob tboae artielaa which we
could dispease witb, kaowa as luxuries, aad oa
those whioh wo aaa mora ol thea wa produce, rev-
eaaa towugh may bo raised after a few years ef
peaoe add consequent rodootlon of Indebtedness,
te fuiau all oor obligations, ana a runner reouo
tioa ef oxpeaaas, ia addition te a redoctioa ef in
terest aceouot, may bo relied ea to make tbit
praolioai.
Mveaae rntorm, u it means tnit, aa my earn
est tupport ; if it implies a eolleetioa of all tbo
revenue for tbo tupport of govern meet; for tbo
payment of principal and interest of tax ; public
debt, sections, etc., by direct taxatioa, texts the
people, then I am again! revenue reform, nnd
confidently elieve tho people are with me. If it
means failure te provide tho necessary mesas to
defray all expense of tbo govcreaseat, aad there
by repadiete tbo public debt, then I am still mere
opposed to taeh kiad af reveaae reform. .
Keveeae reform hat aot boon denned by aay of
Ita advocates, to my knowledge, but teems te be
ipted at aometbing which it to supply every
maa waats, without any coil or effort oa hit
it part. .A true revenue reform oannot be made
in a day, but must be the work of Notional leg
islation and of time. As toon at tha revenue eea
bo dispensed with, all duty should b removed
from coffee, tea, end other like articles of nniver-
al use, not produced beurselves. The oeces ti
tles of the oonntry compel at to collect revenue
from our imports. An army of assessors and
collectors is not a pleasant eight to the citixeoa ;
bat that of a tariff for revenue it aecesssry.
Such a tariff, to far at it givea encouragement to
ome produota, affords employment to tbe laborer
at living wages, ia eootrat, to tho pauper labor
of tha Old World, and also ia the developments
f borne resources under tbo Act ot Congress of
uly IS, 1870.
IMT FEDICTION A NEW WAR DEPABTMEBT
BCILDIKO BBEDBD.
The army baa been gradually reduced ao that
oa tbo 1st of January, 1871, tbe number of eom-
tssioned officers aod men- will not exoeed the
number contemplated by tbe law.
Tbe Wer Department building ia an old struc
ture, not fire-proof, and entirely iaedcqnate in
imeosions to oar present wante. Many thous
ands ol dollars art now paid annually for rent of
building to accommodate tbe variou bureau of
the Department. I reoommeod an appropriation
for a new War Departmeot building suited to the
present growing want of tbo nation.
Tbo report of tho Secretary of War abow
a very aatirfaetory redoetloa In tbe ex pensee of
the army for the last nscal year. For tbta year,
yoa are referred to hi accompanying report.
NATAL BXPBBDITOREB.
The expeaeea of tho Nary for tba whole of last
year, from Deeembor let, 1809, tba data of tbe
last report, are last than $19,000,009, or about
$1,999,909 kss than they wore tho previoa year.
Th ex peases sinew tbe commoaesmeat ef the fit.
ea! year, einee Jely 1st, show for thT five
moatht a decrease of aver $2,409,999 from thote
of tha eorreepeadiag moatht of laat year. Tha
estimates far tha correal yeer were $2.0S,
878 04; tbeea for aext year are $29,882,317 90,
witb $9,5H,av9 99 additional for aeoetaary per
ms eat impnivtmeets. Taeee eecimate
made closely for tha malateaaaee ef tha naval
eetablishmeat a it aow ia, whhoat saaeh la the
Bate re of permanent Improvement. Tbo appre
ariatioaa mads for tha earreat year wor evi-
-dently iateeded by Congress aad are sufficient ta
oaly keep the navy on its p recant footing, by tbe
repairing aad refitting of oar old ships, i Tbi
policy must, ef coarse, gradually hen tarely de-
atroy tna aavy, aaa nub ttteit far rrem ana
Bomioal, a each year that R i pursued tha ao
eeeeity for mora repairs ta ship aad aavy yard
a scout mora imperative ana Btore costly, aaa
onr current ex pea tee era aaaaally increased for
tbo mora repair ef ships, maay of whom matt
tooa become aaaafa aad atnlett.
I hope, during tha Present seatioa af Co arrest.
to be able te submit te it a plea by which naval
vessels eaa be built aad repairs made witk greet
aaving upon the preeeat cost. It oaa hardly . be
wise ttatetmaathip la a Uoveraaeat whioh repre
sents a eoaatry with over five thousand avilee of
ooaat line la both eeeaaa, exclusive af Atashe,
aad boataiaiag forty mlllioos of progressive peo
ple with relations af every aataro with al
most every foreign eoaatry, ta root satiated wita
each taadeqaete means ef enforcing nay foreign
rolicy, either ef protection or redress. Separated
y tbe ocean from tha aatioaa of the Eastern eea
tiaeat, ear aavy ia our only meant ef dlroot pro
tection to ear ei'iitat abroad er for tho oaforcc
meat of aay foreiga policy. . , - .
TBB POSTAL AEPARTNEBT.
The eeeompaaylog report of tbe Postmaster
General abowa a moat aatisfaetery working of the
Department, n ita tba adoption of tbe r
meadeticna contained therein, particularly those
relating te a reform la tna franking privileges
and the edoptloa ef correspondence cards, a self-
sustaining postal system mey (peedlly be looked
for, aad at ao distant day a further redoctioa ot
tho seals of postage attalaed.
CONHOBICATIONB BT TBB POBTn AUTEB BEBBBAL
ABB ATTORBBT BBEBBAL.
I reoommeod eatborisetioa by Ceagree t tb
Postmaster Geaeral aad Atteraey General to laeae
all eommtsaioaa te omeiele appelated through
tbeir respective Deportsaeote. At preeeat thee
oommieeioas, where arpeiatsneata are Presiden
tial, are issued by the Bute Departaacat. Tbo
law ia all tba Departments ef Geverameat, ex
eopt tkess ortao rest UBeoaa or Jest tee, aa-
thoriaes each te issue Us ewa aemmiesteaa.
a raoical naroBH in erriciAL ArpeiBVusBva
sreqxaTEB.
Alwaj favoriag practise! reforms, I respectful
ly call year attention to a practice ef Wag etaad
big which I weald like tee see remedied by tbit
Cue gross; it la a referei la tha civil stties of the
country. 1 woe id save It go aeyenel tea
I xing of the ten ere ef emcee of alevka aad
loveee, who do aot reqalra tha advice aad aow-
seat ef the Senate ta make their appeiataseatt
so at plot e. i ercaia Bave u govern, aot I
are, bat the maaaer af nuktag appotataaeata.
Thereat bo duty which ao maeb emberraaeee tha
Kascative aad Heeds of Dspaifiata aa Jthat af
apporetmeate. nor ia there aay seek ardaoao aad
thaaklee labor impeeed aa Sea at ore aad Repro
seatatlvot at that ef lading place far oeastitusata.
Tba preeeat syetsea doeo act auoare tha beet, aad
often act aewa It ate fee nablia pleeea. Tha
elevetioa aad parifieotiea ef the) attil eerviee af
tbo Oevaramaat will ha hailed wHb approval by
tha whole people of the United Btatee.
BBFOBM B TAB BABAOENBBT OF IBDIAN AFFAIBt.
Reform in tha Btaaagemeat af ladlaa Affaire
hat received th special attention of tha Admin is- .
tratlosi from ita tnaun ration to tbo B resent day.
Tbo experimeot of making it a missionary work
waa tried witb a few ageaoie given to tba doaoBa-
l ! j J J 1 I. t -A . 4.1.
iBBiiea us rneau mum y
W. H,WIWWJ. A.. - --
toadenoiac act eo diapassd were givea to emoero
of tbe army. Tbe act ef Con grass regulating tbo
army readers army officer ineligible for civil
positions. Indian agooeiee beiog civil office I
determined te give all the agencies to taeh reli
gions denomination as bad heretofore established
mlssicaarie tmong tbo Indians, and perhap to
(erne ether denominations who would undertake
the work oa tbe aame terms aa missionary work.
Tbo societies selected sre allowed to aaaso their
owa Bgeott, tobjeot to tba approval of tba Exec
utive, aad are expected to Instruct and aid them
as Missionaries to Christianise aad oiviliso tbe
Indians aad traia tbem in tba art of peace. Tbe
Government watebea ever tbe official acta of tbose
agents, aea requires vi imw mm eimst aw Hwaui
allity as if tbey were appointed ia aay other
manner. The confident hooo is felt that tbe poli
cy now pursued will, in n few years, bring all In-
diana upon Reservations where they wilt live in
houses, bhvo schools aad churches, will bo pursu
ing pteoeful and self sustaining avocations, and
where they may bo visited by tbo law-abiding
white men witb the tamo impunity that be now
vara tae civiiiaea wuue seiuemews. A can your
special attention to tbe report of tbe Commission
er of Indian Affair for full information on thia
subjeot.
THE FCBLIC DOKABN.
During the laat Steal year 8,995,413 aoret of
publio lead were disposed of. Of thi quantity
3,893,910 acre wer takea under tbo homestead
law and 2,951,581 acre told for cash, tbe re
mainder wa located with military warrant, col
lege or Indian acrip, or applied ia satisfaction of
grant to railroad or other public uses. Tb en
tries under the homestead law daring tba laat year
covered 961,545 acre mora thaa those during tho
preceding year. Surveys hava beaa vigoroutly
prosecuted to tha full eitent ef tha meaaa appli
cable to tho purpoeo. Tbo qaaatity of lead is
market will amply aupply tbe preeeat demand.
The elaim of the settlers, aader tbe Homestead
or tbe Pro-omptioa Law it aot, however, limited
to lead tubjeot to talc at private entry. Un
appropriated surveyed public lead, may be ac
quired under tbe former laws, if the party entitled
to rater under them will comply with the require
ments tbey preacribo ia regard to tba rooideaoa
and eultivatiea ; tho actual cottier' areferoeoc
aad right of purchase M area .brooder, aaa ex
tends to land whioh wore aaiarvoyod at tha tisae
of bis settlement. His right was formerly ooa
fioed witbia mech aarrower limits, aad at aaa
period of oar history wat conferred only by spe
cial statute ; they wore eo acted from time to time
to legalise what was thea regarded at aa author
ised iatrustea upon tha aational doataia. Tba
epiaioa tbat tbe public leads should be regarded
ehtslly as a source ei rosacea, ia no pongee meia
taiaed. Tbe rapid settlement aad aaaaassful cul
tivation of tbem it" aow jastly oeaeiderod of mora
importance to our well being thaa it tba fuad
wbiertbe sals ef tbem woald produce. The re- -merkable
growth aad prosperity of ear aow Statea
aad Territories attest tba wisdom of tbo legislation
which Utiles tha tiller of tba toil to aeon re a per-'
t borne en terms wttnia tba reach of au.
The pioneer who recurs tba danger aad priva
tions of a froatier life, aad thaa aidiag tha foua
datioa of aow eommoaweelth, raadert a tigaal
I. kU m! ta AAtttLW tn ttflMMwt
favor aad protection of tha lawt to secure that
object, and largely promote tha geaeral welfare.
They thoald therefore ha eberisbed as a perinea eat
feature of our lad system ; good faith roqairca
ns to giv full effect to existing grants. Tho time
hoaored aad beoeSoeat policy of setting apart
eertaia aectioaa of public lead for eduostioaal
purposes in tna bow State, sasuld be eoatianed
when ample provisWas shall hava been evade for
tho objects. I anbaUt a a qoestioa worthy of
eriouoaoosideratioB, whether tba residue et our
Notional Domain ahould not bo totally disposed
of under tbe provisions of tbo homestead aad
pro-em p tioo law, la additioa to tho twamp aad
overflowed landa granted to tbo mate In which
tbey are situated. Of tbo lead takea aader tbe
Agricultural College Act, and for tbo ietsrosl
improvmnt purpose, nnder tbo not of Septem
ber 18, and the sots suplemental .thereto, thorn
bad beeo conveyed, up to the close. of the lest
fitoal year, by patenter other equivalent evidence
of title, to State and corporations, 1,783,825,71$
acres. It Is estimated that an additional quantity
of 174,735,523 aoree ia still due under greets for
like uses. ' The policy of thus aiding tho
State lo building work or Internal Improve
ment, waa inaugurated more tban forty years
since in the grant to Indiana and Illinois, to
aid those States in opening canals to connect the
water of tbo Wabash with these ot Lako brie,
and the waters of Illinois with these of Lake
Michigan. It waa followed with eome modifica
tion in the grant to Illinois of alternate sections
of publio land within ecrtain limits of tba Illinois
Central Railroad. Fourteen Statea and sundry
corporations bave received similar subsidies in '
connection with railroads completed or in process
of construction. A tb above section are rated
at the double minimum, the tale ef tbem at tho
enhanoed price boa thus ia maay instances indem
nified tho Treasury for tba granted leads. Tha
construction of tome of these thoroughfares baa
undoubtedly given a vigorous impetus to tba de
velopment of ear resources, aad tbe settlement
ef tho more distant portions af tha eoaatry. It
may, however, be understood that maeb of oar
legislaiioa la thia regard haa been characterised
by indiscriminate aad profuse liberality. Tba
Ualted State sheald aot loaa their credit ia aid
ef aay enterprise aadartakoa by Statea er oorpo
Tutioas, Bor great laada ia aay lastaaoe anleoo
tbo projected work It of acknowledged national
ita portaaea. I am strongly Inclined ta tha opia
tes that it it iaoxnodiotjl aad unntstttary to be-
siow vwetittiee vi tatw weta iu uuw , hi tanie
Co a gross dereratiaa ether a hie, I aaraeetly roeosa
mead that tha right af tattlers aad ef tha paa-
. V ( , ! . T . 1 t . I I ,
appropriate legists tio a. .
TBB PATENTS FILBB DC BIBB TBB TBAB. "
During the year aadiag September 80th, 1879,
there were filed ia .tha Patent Office 19,411 ap
plieatioaa for pateaU. 3,374 caveats aad 169 ap
plication! for tha extension ef pa teats ; 13,621
petcatt, iaoludlog Issues tad designs, were is
sued, 119 extended aad 1,089 allowed hat aot ts
(ood by roaaoa af tha aoa-peymaat af tba final
fee. Th receipt ef tho effioe during the fiscal -year
were $13,639,479 ia exeooa at its expen
ditures.
TEE DECBBBIAL CBNtCt.
The work ef tha Ceeeua Bureau hat boea ener
getically pro so ea tod. . Tha prellmlaarieo, eeatain-
eat, will be ready for delivery dartag tba present
Settioa. Tha remainlsg volame will ho com
pleted witb all tha dispatch eensiatoot with perfect
aeoaroey ia arranging aad elassifyieg tb re-
turas. We thall that, at ae ditteal day, he far
nlshod with aa aetheatie record of oar condition
aad rosea rets. It will, I doubt Bot, attest tha
grswiag prosperity ef tba eoaatry, although dur
ing tha deeada which hat jast closed it was so
severely triad by tha great war waged to mala
tela Kt integrity aad ta secure aad perpetnato
oar free Institution.
TBB PBBSIOB BCBBAO.
During the lest fiscal year tbo sua paid to pea-
aiouere, including tbo cost ef dlebursemeat, waa
$27,780,811 11 aad 1,758 bounty land warrant
wore Issued. At IU oloee 193,688 a acnes ware on
tho pension roll. Tha labors of Jbe Paction Of
fice have boea directed to tba severe toratiay of
the evidence tabmittod ia favor of aow elaiae j to
the discovery ef fictitious claims wbieb have here
tofore boea allowed. Tbe appropriation for tba .
employment ef special agents, for tbo inveetiga
ttoa ef freadt, haa been Judiciously used, nnd tba
results of it hove boon of uoqueetionablo benefit to
the service.
EODCATIOH AUD ASBICDLTUBE.
The tuhjsott of odooatioa aad agriealture are
ef great iBtoreet to tbo sueeest of our republican
Inatnutiont, happiness and gran dear as n nation.
In tbe intereati of one, n bureau haa boea estab
lished la the Interior Department, the Bureau of
Bdeeattoa. aaa la tae tatereet et too otner, a
eeparate depertateat, that of Agriculture. I he
llers groat good is to low from tba operations ef
both tbeea bareoas if properly fostered, l cannot
commend te your careful eoeslderation too highly
tbo reports er tba Commits lowers oi Edaoetioa
aad ef Agriculture j nor urge toe strongly tuch
libera legielatiea aa to aceora their efficiency.
, CONCLUSION.
Ia ooeolotiaa, I woald saat ap tha policy of the
Adaslatet ration to bo a thorough eeforssmsnt or
every law, a faithful collection of tea provided)
for, oaeaemy ia tba dis so rse meet ot tbo seme, a
prompt pay meat ef the debt of tha Batioa, a re
duction of taxes aa rapidly as tha roqaliemeau of
tba eoaatry will admit, redoctioa af taxatioa aad
tariff to ha a arranged aa to afford tha greatest
aambar ; honest aad fair dcaliagt with all ether
people to tha aad tbet war, with all iu blighting
eoBssqeeneee. may ha avoided, hot without sur
reedarieg aay right or obligation due to aa ; a
reform ia tha treatsaeat of tha Indiana aad la the
whole eivil terriea of tha aeon try i and, taally,
ta teearieg a tare, aatrmm mailed -ballot where
)ast aaaa at each essetiea without fear ef moUeta
tioa or pveeeripUoa est aeeeant af hit political
faith, nativity er eeier. U. 8. GRANT.
Mxvemtin Jfsmetew, WlingUn, Dee. 5, 1979. .