The Message

2o tlie dilate and House of Mepresentalioeê : In subniittmg my aeventh nnnual meseago io Congresa in thie een ten nial year of our national existeuce aa a free and independent people, it affordg mo great pleasure tö reeur to the advancement tliat has been made frm the timo of the eolonies, une huudred j'ears ago. We were then a people nuniberini; only y,000,000 ; now we number more than 40,000,000. Tlien the uidustiios were confiued el most exclusively to the tillage of the eoil ; i now manufactories absorb muoh of the labor of the country. Our liberties remain unimpaired. The bondmoa have been freed from slavery. We have become posaesaed of the respect, if not the friendahip, of all civilizad uations. Our progresa has boen great in all he arts, iu pcience, agricultnre, commerce, navigatiou, mining, niechanics, law, medicine, etc., and m general educatiou the progresa is likewiee eucouraging. Our thirteen States have become thirty-eight, j ing Colorado, which has takon Initiator; Btepa j to benome a State, and eight Territories, iu'!udiog the Indian Temtory and Alaska. and I excluding Colorado, making a territory exteudiug from the Atlantic to tbo Paciflo. On the South, we have extended to the Gulf of i Mexico, and in the West from the Misaiaaippi to the Vaeiñc. One hundred yeara ago the cotton gin, the steamship, the railroad. tlie telegrph, tho reaping, sewing and modern printing machines, and numeroua other inventions ! of ecarcely loss value to our business and j pineas, were cntirely anknown. In 1775 manufactoriea BOaroely exiatod. eveu in name, in all thia vast territory ; in J iT0 more than two milüons of penom were ouiploved in mauufactories produeing moro than 2,100.000,000 of ! produce in aniouut, annuülly ; nearly equal to I our national debt. From nearly the whole of the popvdatiou of 1776 bein; ongaged in the ono oceupation of agricultuve. in 1870, eo nnmerous and diversified liad beoOfl the occupation of our people, tliaii een than six millions out of more that forty nüilion, were so engaged. The extraordhiiiy effeot produced in onr country by a report to such ocoupatione, hes built a rnarket for the products of the fertilo lands distairt from the seaboaid end the markets of the world. The Amoricati system of working various i and exwnsivc manufactories, next to the farm and the pasture, añil adding connecting rúh'oads and ttoamboatx.. has produced in onr distant country a rataH not equaled by the intelligent part-e of the other nations. The ingenuity aod Ekill of American mechanics liave toeen demonetrated at home and abToad in a xnannev most flattering to their pt;de. But for the oxtraordinary genius and ability of oor mechanics, the achieveaients of our agtiuulturists, manafacturers and trausportera throughout the country, would have been impossible of attainment. The progresa of the miner has been great. Uf coal our production was sm&ll ; now many millions of tona are mined annuaily. So with iron, which formed öcarcely an appreciatle part of our prodnets half a century ago, we now i rodnee more than the world consumed at the beginning of onr national existonce. Lead, zinc and copper, from beiug anieles of importa, we may expect to be large exportera of, in the near future. The development of gold and uilver nunee throughout States and Terri:oriea bas not ouly been remarkable, but has had a large infhience unou the basinesa of all commercial nationa. Our merchants in the last husdred yeara Lave had a fcuccess, and have eatablished a reputation for enterprise, aagaeity, progresa and inteKrity unsurpassed by the people of older nationanties. lilis 6ooa nomo Je not confined to their homes, but goea out upon every sea, and into every port whero commerce enters. With equu pride. we can [oint to our progresa in all of the learned professions. As we are now about to commence our Becond Centennial, commencing our manhood au a nation, it is well to look back upon the paet, and stndy what will be best to preserve and advancê our future greatuess. From the fall of Adam for his transgreasion to the preaent day, no nation haB ever been free from threatened danger to its prosperity and happineas. We should look to the dangers threatening us and romedy them so far as liea in our power. Wo are a Eepublic, wherein one man is as good as another before the law. Under such a form of Government, it is of the grealest importance that all ahould be posseBaed of educatiön and inttlligence enough to ceat a vote with a vight underatanding of its meaning. A large association of ignoran t men cannot for any conaiderablo period opposo a sucecasful resitstauee to tyrrany and oppreeion fiom the educated few, but will inevitably sink into acquiésence to the will of intelligence, whether directed by the demagogue or the prieatcraft. Henee the educatijn of the masses becomea of the first necessily for tho pregervation of oar institutions. Xhey are worth presen'ing becauae they have secured the greatest good to the grsatest ]roportion of the ppulation of any form of governmeut yttdeaaed All othor forms of government approach it just in propoi tion to the general diffuaion of educatiön and independenee of thoujdit and actiOD. Aa the priunay atep, therefore, to our advaucement in all that bas markcd cur progress in the patst century, I öuggect for your eárnest conaideration, and moet earjieatly recommend it, that a constitutional nmendment be submitted to the Legislature.i of the aeveral StateB for ratincation, making it the duty of each of the Beveral Jstatea to eatabíieh pnd forever maintain free public schools, adequate to the edueation of all the children in the rudimentary branches witlnn their respective limitH, irrespective of gex, color, birth-place, or religión, forbitïding the teaching iu said schools of reügious, atheistic, or pagan ideas, and prohibiting the graating of any school funda or school taxee, or any part tbereof, either by legislativo, municipal, or : othei'H, for tho benefit of any othei" object of I any nature or kind whatever in connection ■with tbis important queition. 1 would also cali your attention to the importanee of correctmg an evil that, if permitted to continue, will probably lead to great trouble in our land before the close of the nineteenth century. It is the accumulation of rast amonnts of uutnxed chiirch property. Id 1850, I believe, the church property of the United States which paid no tax, municipal or8tate,amountedtoabout L3.000,000. In 1800 the amount had doubled ; in 1875 it was about $l,00!i,000,OOQ ; by 1,900, without check, it is safe to say this property will reach a sum exceeding 43.000,000,000. So vast a sum receiving all the protection and benefits cf Government, without bearing its proportion of the burdens and expenses of tho same, will not be looked upon acquiecently by those who have paid taxeH. In a growing country, where real estáte cnbauces so rapidly with time as in the United State?, tb ere is tcarcoly a limit to the wealih that inay be acquired by corporaiiona, religieus or othenrise. If aU wed to retain real estáte without t&xation t';e contemplaron of so vait a property as is here alJuded to without taxation, may leail to sequeít.-ation without conatitutional authority and throngh blood. I would euggest tho taxatiou of all property equaJly, whether church or corpcr.itioij, exemptiug onh" the last resting place of the dead. and possibly. with proper restritioas, church ediñees. Ouirjlafionswiih most of the foreigu powers continue on a satiafactory and friendly footing. Iocroaeed intercouise, tho extensión of commerce and cultivaron of mutual bíteres! ;, havo steadily im]roved our relations v.ith the lai'k'e majority of the powers of the woild, reudering praciicible the peaceful solution of quebtions which from time to time nocesRanly urine, l3aving fnw which demand uiteiuledor particnlar noüce. The e:.rrtópondencc of the Department of 8tate with our diplomatie representatives abroa-! is transmitted herewith. I atn happy to annouiice the paesage of an act by ttic Genei:. 1 'oiies of Portugal, proclaimed since the a j u nmeotoHJonyrees, for the abohtion of Beivitude in the Portuguese colonies. It it to be hoped that snch legislation may be another stop onward n the great consummatiíin to be reaehed when no man shall be permilred, directly er indirectly, under any guise, excuse, or form of law. to hold his fellow min in bondage I am of the opinión, too, that it is the duty of' tho United Fttatet?, as contributing toward that end, and required by the upiiit of the age in which we live, to prövide by niitable ltgislation, thafc no oiiizpn of tlK United States ehall hold BlavcK as property in any other country, orbe jnteie.toi tberein. Chiü ha made reparation iu theeaae of the vhale ilu) ftood Ratuiü, eeied without xuf ■ ftoleu! iause upwardi oi forty yeava agc. ïhoujjh b htd liltherto fonM hT aosmmt abiltty, the denial was liever acquiesced ia by ! this Úoveruinont, and the juetice of the claim j liss beou so earnestly coutested fer, that it Has boen grat.ifying that slin should have acknowledged it. .... i Tüe arbitrator in the case of the United ; States steamer Montijo, for the seizure and detention of whichHhe Government of the United States of Columbia was heid accountable, has decidod in favor of the claim. This decisión has settled a queatiou which bas ; been pending for eevoral yeara, aud whieh, j while it continued open, migbt more or less diaturb the good understandinp wbich it is denirable sbould be maintained between the República, A reciprocity with the King of the HaWaiian , Inlands was cóncluded ome raontha ago. It tontaina a stipulation that it sliall not go into effect untü Congreso shall euact the proper : lcgislation for the purpose. Copies of the m(-tfurueiit are hcrewith submitted, in order that il snob stiould be the pleasure of Congrêss, the neccssary legislation pon the Bubject may J be adopted. In March last au arrangement was made through Mr. CUshlng, our Minister in Madrid, with the Spanish Oovernment for the payment by the latter to the Onitcd States of the sum of -80,000 in coin, for the purpose of the relief of the families or persons of the sb-p's ooniparjy and certain passongora of the . ginius. " Tbis snm was to have been paid in thrce instalmenta of two months each. It is [ de to the Spanish Government that I should i eta'e that tlio nayments wero fuUy and speodily anticipated by that ftovemmont, 1 aui that the wholo amount was paid witbio a few diiys more tliau two months from the date of agreement, a copy of which is herewith trausmitted. In pursuanco of the terms of adjustineut. I havo directed. dislribution of the amount among the partips entitled thereto, including the ship's company and such of the pouaongers as were American 1 citizeus. l'ayments are made aceordingly on the appheotion of the partios entitled tbereto. Tliè past vear haa furnished 110 evidence of an approaching cloae of the ruinous eonflicta which havo been raging for seven years in the neighboring island of Cuba. The same i gard oi' the laws cf civilized warfare, aud of ■ the juut demanda of humanity, which have heretofore called forth expressions of conden nation from the nations of Christendom, have j contümed to blacken the sad scène. Desolation, ruiu and piilage are pervading the rich fields of one of the most fertile and productivo resions of the earth, aud the incendary'a torch, j firiug plantations and valuable factories and I buildings, ia the agent marking the alternato advanco or retirement of contenóV ing parties. The protraeted i auce of the Btrife seriously affecta intereats of all commercial nations, but i those of the United States more than others, j by reason of close proximity. its largar tiade and intercourse with Cuba, and the frequent ! and intímate personal and social relations i which have grown up between its citizena and ! those of the island. Moreover, tho property of our citizena in Cuba is Urge, and is rendered insecure and depreciated ni vahte and in capacity of prodnetioa. By the contiuuance of the Btrife aud tbe unnatural mode of ita conduct, the same is true, diff ering only in degree with respect to the interesta and poople of other uatione, and the absence of any reasonablo cssnranee of a near termination of the conflict, must of necossity soon compel the States thus suffering to consider what the interesta of their own peoplo and their duty : ward tbemselves may counsel. I have boped : Spain wonld be enabled to estabhsh : peace in her colony, to afford aecurity ; to the property and the intereste of our citizens, and allow legitímate scope to trade and commerce and tlie natural productos of tho sland. Because of this hope and from an extreme relnctance to interfere in .the affaire of another and a frieudly nation, especially of one vrhpae sympathy and frieudühip in tliê struggling infancy of our oxiBiuaco mnot cvor bo remembered with gratitude, I have patiently and anxiously waited tho pi ogress of eveuts. Our own civU conflict is too recent for us not to oonaider the difficultiea whicb survound a Government dietracted by a dynastie rebeliion at home, at the same time that it haa to cope with a separate insurectiou in a distaut colouy. But whatever causea may have produced the aituation which bo grievously aff ects our interest i, it exists with all its atteudant eil?. operating directly vipon this country and its people. Thna far all the efforts of Spain have proved abortive, and time haa marked no improvement in the situation. The armed bands of either side now occupy ncarly tbe same grouud aa in tho past, with the differeuce from time to time of more lives aacriticed, more property deBtroyed, and a wider extent of fortüe and productivo fields, and more valuab'o property conbtantly and v.-antonly sacrificed to the inceudiary's torch. In contests of thia nature, where a oonsiderai ble body of people who have attempted to free j themselves of the control of the Bupenor GovI ernnjent have reached such a point in occupaI tiou of territory, in power and in general orgsnization as to couatitute in fact a body politie, having a govemment in substance as well as in name, possesBod of the elementa ofBtability, and equipped with the machinery for the administration of intemal policy and the execution of ita lawi, and prepared and able to adminieter juatice at heme, as well aa iu ita dealingB with other powers, it is within the province of those other powers to recognize its exiítence as a new and independent nation. In Buch caaes other natious simply deal with an actually existing condition of thinga, and recognized aa one of the powera of the earth that body politie which, poKscsBiug recessary elementa, has, iu fact, become a new power. In a word, the 1 crc-atiön of a new State ia a fact. To establish ! tlie condition of thiugs eseential to the recognition of tbe fact. there muat be a people occupyhig a kuown teintory, united under some known and deflned iorm of government aeknowledgod by thoee subject tbereto, in which tho functi-jns of a government, adminibtered by usual methods, competent to mete out justice to eitizens and fitrangers, to afford romedies for public and for private wrongs, and able to assnme the correlative international obligations, and capable of performing the ixrresponding international duties resultiiig from ita acquisiüon of the rights of sovereignty, a power Bhould exist complete in ita orgaruzation, ready to take and able to maintain itá place amongthenationsof theearth. While conscioua Ihat the insurrection in Cuba has shown strongtli j and eudurauce wbich make it at least doubt ful wbether it be in the power of Spain to subdue, I it seems quefctionable that no such civil I ization exmt-i wbich may be recognized as an independent government, capable of perfonning its obligations. aud entitled to be treated as one of the powers of the earth. A recognition onder auch eircumstances, would be I tent with the facti, and would corupel the ! power giving it soon to support, by force, the Cioverament to which it had really given its ouly real claim of existence. lu my jiu gment the United States ehould adhere to the policy f.mi the principies which ' Uave heretofore been' its uure and safe guides ; in hke contests between revolted colonies and their mother country, aud, aeting ouly upoi the cloarest cvidence, should avoidany i bilityof suapicion of intcrvention. i tion of the indepcndence of Cuba being, in my opinión, impracticable and indefendible, ilie question which next present ïtself íb ihat of recoguition of belligcrent rights in the parties to the contesta. In a former message to Congress I had occasion to conaider this queation, and reaohcd the conclusión that the conflict in Cuba, dreadlul and Oevatitating as were its incidentB, ciid not rise to the fearful dignity of war. Itegardmg it now, after the lapse of time, 1 am unable to see that any notable succobs, or any raarked or real advance, on the part of the insurgente, has ossoutially changed the charaeter of the content. It bas acquired greater age, bnt not greater or more formidable properaooa, It, is poBBible that t be actB of foreign powers, and even actH of Spain heiself, 01 this yei7 natute, might be joiuted to in defenee of Bucli recogniiioB, bnt now, as in its past bistory, the United Btales should carefully ovoid the fatee lisht which uiight lead it into the mazeaul' douhtfnl law and questionable )ropiiety. and adlicrc ri 'iilly and sternly to the rulo whioh bas been its guide, and doing only that whicli is nght. air.l honeet, and of goo'd report. 'Sha q.ieation oí acooidmg of withliolding i ights of óelügerenc.y must be judged in every caso in view of the particular attcudiug factB: uulesB juatittetl 'oy nccenhiry, it in ahvayn, aod justly, regarded a.) an unfriendly act and a gratuitous demoustratiou of moral support to the ''ebellion. It is nec3Btaryai.il it ia required, wüeu tbo iuterestt; and nght of anotbur Government, or of it people, are to far aiïected by a [jeDding civil cOüflict at to requiru a deiini'ion 01 Bs relalionu to tbc partios tbereto. But tbat this conflict musí be one wiiich will be reoognized ir the eense of international law ttt war belligórenos, too, ia a (act, T!o mero exUtenw of c lutendiDg arroed bodieö and thair ocoas lona! coufl'.otB do not constituid war in tin BOneo ïeferwJ to. Applfing to the esiülifii rondition of affaire in Cuba the tests il uized by publicista and writers on o üonai law, and which have been observed by nations of dignity, honesty and power when u t'ree from sensitiv or aelfish and unworthy S motives, I fail to find in the inaurrection o the cxistonce of snch a substantial political j ti 3rganizaüon, real and palpable, aud manifest I i to the world, hiving the forma, and oapable 3f the ordinal? funotions of governmont o ward its own rieople and to othor States, V nith eotirts for administration of lustice L Ifith a local habitation possessmg eiich & ganizatkm of force, such inatferial, ettch ti supaiion of tcriitory as to tako the coatest l out cf the category öf a mere rebelhous ü naurrëetion, or occasionf 1 ekirmirshea, and r. place ït on the terrible footing of war, to which i a reooguition of belligerency would aini to w evate ït. The contest, moreover, ;s solely on p land ; the insurreetion has not possessed tl aelf of a single seaport whence it may eend a forth its flag, nor has t any means ui t muuication with toroign powers except tl tnrough military lines of its adversarios. No u ap prehensión of any of tbose sudden and difficult complications which a war pon the e ocean is apt to precipítate upon tbe vesselB-, ñ both commercial aúd natiönal, aud üpon the n consular oSitera, of other powera, calis for v the defiuition of thair relations to the parties e: to the oonte.-t. Considered as a question of fl expediency, I regard the aceordance of c ligerent fights tftíll to be as uuwise and 1 e mature as I regard it to be at present c fensible. Aa a measure of right, such recognition entails upon the country according - the rights which flow from It, difficult and y complicated dutie i, and requiros from c tho contending partij the strict 0 Rervance of tbeir rights aud oMigations, t It coDfers the right of seavch upou the c high seas by vessels of both parties. It j. would subject the carrying of arma and t munitions of war, which nou may t be tranaported freely and without j ( tion in tho vessels of the United States, to i f detention and to posssible seizure. It wottld r give riee to countlens vesatiorts queationB, i would release the parent governinent from j responsibiuty for acts done by tbe j gont, and would invest Spain with the right j to exeiciso the supervisión reeognized by our treaty of 1795 over our commerce on the bteb { seas, a very large part of which, in its trafiic between th'e Atlantic and Gulf States, and j , tween all of them aud the Statos npon the j , Pacific, passes tnrough the waters whieh wash j ( the shores of Cuba. The exercise of this j supervisión could ncareo fail to lead, if not to abueee, certainly to colliBions perilous to , the peacoful relations of the two States, j ( Theie can be little doubt to what reault sueh j supervisión would, before long, draw this ] nation. It would be unworthy of the United Statos to inaugúrate the possibilities of such result by measurea of questionable right or j expediency, or by any indirection. , ( Apart from any queetion of theoreticnl i right, I am satiefied that, while the i anee of belligorent righta to the insurgente i in üuba might give them a hope and i ment to rrotract the struggle, it would be but : a delneive hope, and would not remove the evils which this Government and ita people are experiencing, but would draw the United j States into complicationa which it has waited long and already suffered mueh to avoid. The recoguition of indepeudence or of belligerency boing thua ia my judgment eqnally miBsible, it remains to consider what course shall be adopted should the conflict not soon be brought to au end by acts of the parties themeelves, and should the evila which result taerefrom. afflicting all nations, and I Jaily the United States, continue In such event I am of opinión that other nations will be compelled to assume the responsibility which devolves upon them, and to serioubly consider the only remaining measures possible, mediation and iniervention. Owing, perhaps, to the large expanae of water separating the island from tho península, the want of harmony and of personal sympathy between the inhabitants of the colony aud thoBe eeot thither to rule them, and want of adaptation j of the ancient colonial system of Europe to j the present times, and to tho ideas which the events of the past century have developed, I ihe contending parties apxjear to have within I themnelves no depjsitory cf common confldence. to suggeat wisdom, when paasion and excitement have their say, and to assiune the I part of peacemaker. In this view, in tho eaily daj's of tbe conteet, the good offices of : the Uni;od States as a mediator were ten; dered in good faith, without any aelfiah [ ] pose, in tbe interest of hinnanity, and in sin1 cere friendship for both parties, bnt were at i tbe time declined by Spain, wit.i the j ! tion, uevertheless, that at a future timo they ; would be indispensable. No intimation has i been receiveü that, in tho opinión of Spain. that time has been reached, and yet the strife i continúes with all its dread horrors, and all } its injuries to the intereats of the Uuited ! Staten and of other nations. Each paityseems j i quite capable of working great injury and i damageto the other, as well as to all the rela tions and interests depending on the existeuce i of peace in the ialand; but tbey seem incapable of reaching any adjustment, and both have thus f ar f ailed of achieving any Biiccess whereby one [ party shall possess and control the ialaudtothe exclusión of the other. Under these cirenmatancee, the agency of others, either by mediaüon or iiitervention, seems to he the only I alternativo which raust sooner or later be invoiiÍ ed for the termination of th strife. At the same time, while thus impressed, I do i not at the trae recommend the adoption of any measure of intervontiou. I shall be ready at all times, and as the equal friend of both parties, to respond to a miggestion that the good ! offices of the United States will be acceptable to aid in bringing about a peace honorable to both. It ia due to Spain, so far as this govern■ ment is concerned, that the agency of a third power, to which I have adverted, ahall be adopted only as a last expediont. Had it been I tho deairo of the United States to interfero in tho affairs of Cuba, repeated opportunitiea for bo doing have been preaented within the last I few years ; but we have remained pasaive, and ! have performed our whole duty and all interi national obligations to Spain with friendship, ' fairnesa and fideEty, and with a spirit of patience and forbearanee which negatives every poseible unggestioD of deRire to interfero or to add to the diffictiltiea with which she has been surrouuded. The Government ei Spain has recently submitted to our Minieter at Madrid ctrtain proposals, which it is boped may ba found to be the basis, if not the actual submiaaion of, terms to meet the requirements j of tho particular grief of which this Government bas feit itself entitled to complain. These oroposalH have not yet reached m in their full text. On their arrival they will be taken iuto j caref ui cxamiuation, and may, I hope, lead to a aatisfactory adjustment of the questions to which thêy refer, and remove the possibility of fnture occurrenceu sucii as have given riae to our just complainte. It ia underütood, also, that renewed efforts are being made to introduce reform in tuo internal administration of the island, Persuaded, however, that a proper regard for the interestö of tho United States, and of ita eitizens entitled to relief from the stiaiu to which it lias been tmbjected by the diflicultiea of the questions, and the wronge and loases which arisp from the contest in Cuba, and that tho intereats of humanity itaelf ; demand the ceasatiou of the etrife before tbe ' whole ialand ahall be laid waste, and larger I Bacrirtces of life be mado, I ahall teel it ray duty, ahould my lopea of a satiafactory adi juatment and of an early reatoration of peace, 1 and the removal of future cauBea of complaint, be uuhappily diaappointed, to niake a furtlier Í communication to Congress at tome period uot ; far remóte, and diiring the ja-eaeut aesaion, : reeommending what legislation may then eeem i to me to be necesBary. Tbe Free Zone, so called, Beveral yeara Hinco eutablished by the Mexican Govcniment in cer! tain of the States of that Iïepubhc adjacent to ' our frontier, remaius in fuH operation. It has I always been materially injunou to hontut i trarïïc, for it operatea aa an Dcentivo to ' traders iu Mexico to supply, without cuBtoms : charges, the wants of the inhabi'ants on Ují ! sido of the line, and prevente the tame want? from leing supphed by merchants of the Uuited States, thereby, to a considerable extent, defrauding our" rever.u8 and checking lioneut commercial enterpiitse. Depredationa i byarmeil bands from Mexico on the poople of Texaa, neorthe fiontier, continue. Thouph ! the main object of the iDcursiots ia robbery, they freqnontly result in the murder et unarmed and peaceab'y dispoeed persona, and in aome mstances even Ibe United 1 States post offices and mail corumum cations have beau attankcd. Renewed ' remonsti-diicea upon this subject have been addiess d to the Mexican Goveremeut, bui i ' withoui much apparent effect. The roilitarj ) I force of thia Government dipposable for ser: vice in that quarter is quite inadequate to efi fectually guard tne lino even at thoae pomts whcre the ir.cumons are usually male. Ar 3 expe-riment of an armeii venscl on the HU - Grauüe (or that purpot c is on trial, and it n 9 hopd that, if cot tbwarted by tbe bllow ' tiiJÓfl of thii vv nr othfti' nutuvttl obstROie t may materially coutribute to the protection r f the herdemen of Texas. . ü The proceedings of the jomt commisBiori I c indev t'io couveuüon bctween tbe United ttates and Moxico of the 4th of July, 1868, a m the subject of claims, will bconbebrougnt a o a close. Tho teeUH ot these proceedings t ril! then be communicated to Congretis. 0 I ara happy to announce tlmt tho Oovernment f t Venezuela has, upon fuyther cotisideration, „ raetically abandonedits objection.topayto the t Jnited States that Hharo of ito revenuo wbich f ome yeare Bince it allotted toward tbe ioguiahmentoi claims of lJrfei8eM generally. c n thus reconsideriug its detcrmuiation, tnat c Sovernment has shown a jut senso of i t eepect which caunot faU to reflbet ci-edit upon t t in the evea of all disintercsted persons t rhero. It ia to be regretted, bowevor. that lts B lavnients on account of claims of citizena of i r hè United States are still so meager in amonnt, x ,nd that tbo stipuIationB of the treaty in regard r 0 th sums to be paid, and the periods when e hose payments were to tako place, should have icen eo sigDally disregarded. Sineo my last annuftl nieesage the t 'Xchaugo haa been tnadis of ie ( teatlofi oí a tretlty of coiiünerce íind lavi.'ation with Belgiura, and of conventions c rith the Mexican Kepublic fortho furthor t ion of tho joint commiBsion renpecting claims e rith the Bawfriian Manda for commercial e iprocitv and with the Ottoman Empu-e for t tradition, all of which have been duly 8 ilaimed. e The Court of CommiBaioners of Alabama j c ilaima bas proaecutod its important dutiea , rery assiducusly and vory aatigfactorily. It iouyened and was organized on tho 22d day I L if july, 1874, at.d, by the terms of tbe act ' inder which it waa created, was to exitt for , h ne year from that date. The act provided, " aowever, that ebould it be found , " i]e to cimt)lcte the work of the conrt tiefore " he expiration of the year, the " leut might, by proclamation, extend tbe timi if lta duiation to a pöriod not üiore than six J nontha bevond tbe expiration of ono l rear. líavrríg received satisfactory evidence ! '- ihat it would be impracticable to complete he work within tho timo originally flxed, [ issued a proclamation (a eopy of which ia , preaented herewith) .extendmg the time of j iheduration of the bontt for the period of six mouths from and after the 22d day of July j ■ Last. A report made through the clerk of ■ the court, communicaced herewitb, ahows : the coudition of the calendar on tbe lat of November last, and the large amount of work which has been aceomplished. Tliirteen hnndred and two claims have been preeented, of whicli 682 had been disponed of at the date of the report. 1 am üifoi-med that 170 cases wore decided ■ ing the rnonth of November, Argumenta are beiug made ftnd decisions giveli in ihe remaining cases with all the diapatch consistent witli the proper coi isideration of the quostions submitted Many of these claims are in behalt of mariners, or depend on the evidence of marinera, whose abaence haa delityed the taking of ' the necesBnry evidence. It is represented to me that it will be impracticable for the court to ünally dispose of all the cases before it within tbe present limit of its duratiou. Justice to tbe parties claimant, wbo had been at large expense preparing their claims and obtaining evidence in their auppoi t, suggesta a f hort extensión to emible the courts to dispose of all the claims wbich have been presented. I recommend the legislatiou wliicb may be deemcci proper to enable the court to complete the work before it. I recommend that eome enitable provisión be made by the creation of a spoeial court, or by conferring the necesaary jmisaiction upon siich appropriate tribunal for the conaideration and detorminattou of tlïe claims of aliena against tbo Government of the United Statea which have avisen within aome reaeonable limitatiou of time, or which may bereafter aliso, exclnding all claims caused by treaty provisiona or otberwise. It has been founá ïaiposaible to givo proper consideration to these claima by the Executive Department of tho Government. Such a tribunal would afford au oppoitiuüty to aliena other than British snbjects to present their claima on account of acts committed againat their peraons or property dtiring the rebellion, as alBo to thoae subjecta of Great Britain whoss claima, having j ariaen stibsequent to the 9tb day of AprM, 18C5, could uot be preseirted to the late commissiou organized pursuant to tho proviaions of the treaty of Washington. Tbe electric telegraphbaabecomean essential and indispensable agent in the , sion of business and social meBsages. lts operation on land and witlin the hmits of particular States is necessarily under the control of the jurisdiction within wiiich it operatea. The lines on the high seas, bowever, ore cot subject to particular control of any one governraont In 1869 a eoncession was ■ granted by the Frencb Government to a com! pany who propoaod to lay a cable from the S shores of Frauce to tbe United States. Al thit timp there waa a telegiaphic connection bctween the United States and the continent of Europe through tbe poesessions of Great I Britain at eithor end of the line, under the i control of an association which had, at large ! outlay of capital and at great risk, demon atrated tbe p"racticability of maintaining sucb ! meauB of communication. The cost of the ! correapondence by this agency waa not too I large at the time for tho proper remuneration ' for ao hazardous and ao c-stly an enteiprlse. It was, however, a heavy charge upon ameans of communication wbich the progresa in the social and commercial intercourse ef the world fouud to be a cecesBity, and the obtaiuing of this French conccBsion shswed that other ca])ital than that already inveated was rcady to enter wto competition, with asauranco of adequate return for tbeir outlay. Imprassod with tbe conviction that the interefta, not only of the people of the United Statea but of tbe world at large, demacded or would demand the multiplication of such mearía of communication betweou separated contineuts, I was desitious that the proposed i connection should be made, but certain proI visions of thia coueession were deemed by I me to be objectionable, partieularly oue, 1 which gave for a long term of yeara the ex: clueive right of telegraphic coramunication ' ; by submarino cable bet ween thfl shores oi France and the United States. 1 couici not , concedo that any power Fhould claim the right to land a cable on the shores of the ! I United States and at the samo timo deny to the United States or its citizens an equal right to land a cabio ou its shores. I The right to control the conditions for j tbo layicg of a cable within the juriadiction and the waters of the United States, to connect onr shores with thoee of auy foreign State, portains exclnsively to the Government I of the United States, under euch limitation j I and couditions as Consress may impose. In I the absence of legislation by Congress, I was j I unwilling, on the one hand, to yield to a [ i foreign State the right to say that its gïftuteea I might land on oivr ahoreti whilo it denied a i í similar right to our people to land cm ita sbore; I r and, on tho othf-r hand, I was reluctant to deuy I ts the great interests of the world, and of j ' ilization, the facüities of such communication ] I as were proponed. I therefore withheld any renistaneo to tlys landing cf any cable, on conI dition that the offeimive monopoly feature of i the conecssion be abandoned, and that the right of any cabio wlxich ma,y be established by authority of the Government to land upou i Frenen territory, end to connect with French I land linei?, and enjoy all the necessary faeilitiea or privileges incident to the use thereof upon '■ as favorable terms as anv other'company, be I conceded. As the resnlt thereof, the company in quf s! tion renounced the exclusive privilege, and the representativo of France was iuformed that, underntanding thia relinqnishinent to be conbtrued a gnintiug the entile reciproeity and equaj facilities which had been demanded, the I opposititcn to the landing ot' the cuble was ' withdrawn. The cable uniicr this French conceitBion was landed in the month of Julv, ISC'J, , and bas been an cfticient and valuable aKCut i of coriimunieation bctween this eountiy and i ! tho continent. It Boon papsed under the coni i trol, however, of thoae who had the managei ment of the cable connecting Great Britain j with this continent, and thus whatever ■ i benefit to tho public might have ensucd frotn ; j competition between two linea was lost. Tnoy t had ttie greater facilitüs of an additional ; lino, ai;d the additional Heourity in case l of accident to one of tiiem, but thce increaeed facitities and this additional ec. - i curity, togfcther with control of combined I ; capital of tho two oompanies, gave also greater 1 I power to preveut future construetion of otbcr - i linc, and to limit the control of telegraph cotn1 . muuication between tvo continente to Ihowe i i poeseasiug linea alieady laid. Within a few t ■ months past a cable han been laid, kiio-vn as v tué United States Direct Cable ('ompny, - connecting the United States direotly with - I Great Britain. As bood as this cable was ruft I ported to be in woiumg order the ratea of the n hiiu cxii-tim; ooneofida'tcd conipany were. o greally redi:, e;!; Boon, howevor, a break was a amiounced in tb? uw cable, aat innnP(üato■. ly the ralea of the otuer line, whieh had been now repaired. the rates appear not to be d luced by eitlier lino from thosa forraerly c 3harged by tlio othar oompany. There is rcaoon to bolieve tbat large iinouuts of capital, both at home and abioad, J iré ready to seek profltable inyestrnent in tho advarcement of this neeful and most sivilizing means of intercourse and ' nondence, They affait, however, tho aeuiirMee of the means aiid conditlons on whieh . they may safely be made tributar? to tho gen'eral good. As these fiable felfgraph J. lines connoct separate States, these are questions as to tbc'r organizaron and j oontrol whioh probably can le best, ïf oot solcly, settled by convenüous J tween the respective States. In the absence, c liowsver, of international conventions on the f subject, municipal legislation may secure many points which seem to me important, if n pot indispensable, for the protection of the D public against the cxtortions which may reBult from a monopoly of the right of ft ing cable telegrama, or from a combiuation b botween sveral lines. First- No hoe should R be allowed to land on the sbores of the United t, States under the conceesion frooi acothnr J öower, whicli doe3 riot adïnit the right of any h Dther lino or linea formed in the Unitel States to land and freely cortnect with and ■ 3rate through land lines. Second- No line t should be aïlowed to land on the nboroa of t the United States whieh is not, by treaty ]( itipulation with the Government from whoee a shores it proceeds, or. by prohibition in its T 'harter, or otherwise, to the satisfaction of t this Government, prohibited from eonsolidating with any other cable telegraph line. or sombining 'therewith for tbe purpose of j regulating and maintaiiiing tbe cost of L Taphic commnuication. Third- All linea , ( Oiould be bound to give preeedenco in the transmíbbíou of tho oflicial mesaages of the , ments of tbe two countries between whifih it aiaybelaid. Fourth - A powor should be . 3ër'ved to the two Governments, either ointly or to each as regards the inessages . imtehed from its shores, 10 fix a limit to tbö 3hai-ges to be toaintained for tbe transmission . DfmessageB. I présent thiB Bubject to the ( BarneHt eon;3ideration of Congress. In the , meantime, and unless Congress otherr.ise , iireets, I shall not oppose tho landing of any telegraphic cable which coinplies with and assents to the points above enumerated, but wül feel it my duty to prevent the landing of any wlnch does not conform to tbe ürst and second points, as stated, and which will not ; tiptüate to concede to this movemeut the precedenco in the transmission of its official mesaagea, and will not enter into a satisfactory ' rangement in regard to its chaises. Atnong the pressing and important ■ jects to whioh, in mv opinión, the attention of Congress should be directed, are thoee relatie to fraudulent naturaliiiation and eipatriatien. The United States, with great Hberslity, offers its citizetship to all who, in good 'faith, comply with the requirements of j the law. These requirements are as simple and upon as favorable terms to the emigrant as the high rivilego to wbieh he is sdmitted can or should perniit. I do not propose any adiitional requirements to those which the law now demande, bnt the yery simplicity and want of necessnry formality in our law have mado fraudulent naturalizaron not infrequeiit, to tbe discredit and injuny of all honest citizens, whether native or naturalized. Caaes of this character are continually being brought to the uotice of our Government by our reproaontatives abroad, and also thoae of persons resident in other countnes, moat frequently these, if they havo remained in this country long euough to entitle them to become naturalized, generally havo not much over-passod that pcriod. and have returned tp the country of theirorigin, where they reside, avoiding all duties to the United States by their sence, and claiming tobe exempt fr.m all duties to the country of thoir nativity and of their retidence by reason of their alleged natUralization. It is due to this Government aud to the great mass of tbc naturalized citlzens who entirely, both m name and in tact, Decome citizena of the United Statos, that the high privilege of citizinsbip of the United States ahould not be held by fraud or iu derogatioo of the iaws and of the good name of every honeat citizen. On many oc! casions it hss boen brought to the knowledge of the Goverament that ceitificates of naiuralizatiou aie held ani1 claimed by the parües, who admit that not only they were not within the Unitod States at lbo time of pretended uaturalization, but that they have never resided in the tlnited States. In ! others the certifícate and record of the court sfeow on their face that the person olaiming to be naturalized had uot resided the required timo in the United States. In others, it is admitted upon exammation that the requirements of the law have Hot been complied with. In some cases even such certificates have been mattere of purchaae. Theso are not ieolated cases, arimng at rare intervals, but of commen occurreiece, and which are reported from all quarters of tbe globe. Such occurrenoes cannot and do not fail to reflect upon the Government and ïninre all honest citizens. Such fraud bemg discovered, however, there is no practicable means within the control of the Government I by which the record of natnralization can be vacate;!, and should tbe certifícate be taUon up as it uaually is, by the diplomatic and consular representativos of tbo Government to whomit may have been represented, ihere ia nothing to prevent the peraon claiming to have been naturalized from obtaining a uew i certifícate from the osurt in the place of that i which haa been taken from hiia. The evil has become so great, and of such frequent occurrence, that I cannot too atrongly recommend that some effective measures be adopted to provide a proper remedy and means far the vacating of any record thus fraudulently made, and of puuishiug tLe 1 guilty parties to the transaction. Iu this eonnectiou I refer to the question of expatriation and the election of nationality. The United States was i'oremoat in upholdiug the right of expatriation, and was principallj I instrumental in overthiowing the doctrine oi perpetual allegianco. Congress has declarec ' the right of expatriation to be a natural, ra 1 herent right of all people. Wbile many othei 1 nations have Iaws providiug what formalitiei t „1 11 l,n .inniiLjori' trt ivAl'lf íi. f.llíl,I)L?n Of Ö-llC' shall be neceBsary 10 wuin a uuaiö ui uv piance, the United States has enacted the provisión of law, arid has in no respect J raarked out how and when expatriation may ■ bo accomplisheil by its eitizens. Instances are brought to the atteution of the Governmc-nt where citizena of the United States, naturalized or tutive-born, have formally beeome eitizens or subjects cf foreign powers - but who, neverthelesB, in the absence oí any provisions of legislation on these queBtions, when involved 'in difficnlties, or when it seems to be to their interest, claim to be eitizens of the Unitod Staten, and dem:ind the intervention of a Government which they have long since abandoued, and to which fo'r years they have rendered no service, nor lield themselves in auy way ameuable. In other cases, natunilizod citizens, immediatcly after naturalizaron, have retumed to their native country, have become engaged in buslnéas, have accepted offices or pursnita inconsistent with American citizeusliip, and evidence no intent to retnrn to tho Umted States, until called upon to discharge some únty in Ilie conntry where thoy are residing, when at once they assert their citizensliip, and cali upon the ropreseutatives of the Goernment to aid them in their pretensious. It is but jnstice to all bona fide citizens that no doubt should oxist on such questions, and that ! Cougress should determine, by enactment of i law, how expatriation will be accompliehed and ■ change of citizenship establiuhed. I also invito your attention to the necessity i of regulating by Jaw the stat'.is of American women who may morry foreigners, and of defiuing more fully that of cliildrou bom in a foreign country of American pareuts who mav resido abroad, and also of eome further provisión regulating, or giviug legal effect to, i marriaged of American citizens contracted in foreigu couutries. i The correspondence snbmitted herewith, shows a few of the coustautly occurring queBtions on tho pointe presentad to the consiiit-rai tion of the Goverument. Thore are few miVi! jftct-i to engage the atteutiou of Congrcss on ! which int.ro delicate relations aro dependiug. In tho moiith of Julylast the building'erected for the Department of State was Ukeu possession of and ocoupied by that department. I am i happy to say tiiat the archiven and vithublo i property of the Government in the custocly of tliat department are now Bafely deposited and proïierly cared for. The report of the Sccretaiy of the Treasury shows the receiptj from customs of t!ie tísoal year euding June 30, 1874, to havo been $163, 163,833.69, aud for the ñucal year ending Juno ! 30. 1875, to havo been .■iir)7'.lC7, 722.35, a do! crease for the last fwcal year of f5,936,111,84. The reefeipts from internal reveuue for the yo;ir ending au the 30th of June, 1874, were 102.409,784.90, and for tke ear euding on the 30tb of Juue. 1S75, were .110,07,4l)3.Dfc!, an : iucreaao of $7.097.708.68. The report also rtiow? O0plt iiíory of tlis working "f Uio [epartinent for the past real-, anti coiitama r nnmendationíi for reforrnu and for legmlation p riiich I cencur in, bat eannot conimout on ho t ully aa I shonld like to do if space would o oit, but wilt confine mysolf to a fow 8 ions, whieh I look upon as vital to the bes', 11 ereitt of the wbole people, coming witliin the li inrview of the Treasury, I meau specie ri mnption. Too mur-h stress eannot be laid il Lpou this qnestioa, aud I hope Congres may e ie imlnced. at the earlieet day practicable, to n usure Ihe coiimvmmtion of tlie act of tho last t ■ongresB at ita last BeSSion. to bring about n ie resumption on and the lat day of 1 anuary, 187'J. at tlie f iirthertt. It wöukl bet reat bfessing it tbia could be eonsümmated even h ,t au earlicr day. Nothiug seoms to me more t ortnin tliiin tliat a fiül, heaJtby and permanent l eaetiou cannot take place in fnvor of the o :ustries and iinaucinl welfare of the country, a intil we return to a neafmre of valnea e lizc-d throughout the civilized world. Whilc we a we a cuiTency not equivalent to thi-i p rd, the woikï's recognized standard of specie tl comea a comuioditv, like the products of the a oS, the surplus seeking a market wherever a here ia a demaud for it. Under our present u j-stem we shonld want none, nor woiüd we b ï&ïü any. Were it not for customsdutieH that r aust bo paid in coin and becauae of tho pledge U o pay the interest of the public dobt in coin, n ho yiold of precioui metala woukl flow out for II lie'pnrchaHe of foreigu productiona, and tl eave the United States the howeraof wood 8 ,nd the drawers of water, because of the 0 viaer legialation on the subject of finauce by s he nations with whieh we have dealings. I am not prepared to eay that I can n rest the beat legialation to secure the end so g ïeartily to bo commended. 1', will be a s uree of great gratification to mo to be able o o approveof anymeasureof CongrePBlookinK a sffoctively toward aecuring resumption. U imUed inflation would probably bring atout o ipecie paymenta mere peedily than any i islation lookiug to tho redemption of legal t tenders In coin, but it WoUld ba at tbc netise Of honor. Thfí, legal tendefs woJld s Uave no valué beyond eettling present c bilities, or, properly Rpeaking, repndiating t them. They would buy nothing after the 1 debta were all aetfled. There are a few e meaeurea which seem to me important in thia ' connoctior, and which I coramend to your 1 earnest consideration : First, tho repeul of bo much of the Legal Tender acta as inikes i these note receivable for debts coutracted after a date to be flxed in the act ïtself- say ] not later than the lat of January, 1877, We ( ehonla then have aqnotation at real valnes,tiot i fictitious ones. Gold would no longer be at a . premium, but currency at a discount. Ahealthy reaction would set in át once, and with it a i Bire to make the currency equal to what it purporta to be. The mfrehanta, manufacturers. and evefy culling, could do business on a fair margin of profit. The mone'.1 to be received haviug an unvarying value, laborers and all classes who work for stipulated pay or salary would receivo more for their income, because extra profits would no longer be charged by the capitaliet to compénsate for the risk of a downtrard Üuctuation iu valuo of the currency. Second, That the Secretary of tho Treasury bo authorized to redeem, eay not exceed 2,000,000 monthly, of egal-tendeï notes, by issüing. in their stead. a long bond, bearing interest at the rate of 3 65-100 per cent. perannum, of the deuomiuations ranging from ÍÍ50 to il, 000 each. This would, in time, rednee the legal-tender notes to a volume that could be kept afloat without deinandiug redemption in large sums suddenly. Third. That additional power be given to the Secretary of the Treamiry to accumulate gold for final redemption. either by increasing revenue, curtailiug expenaos orboth. It is preferabletodo both, and I recommeud that a reduction of expenditure, be made wherever it can be done irithout impairiiig Clovernmerit obligations or crippling thedue eïeention thertof. One meaaure for iccreafiing the revenue, and the only one I think of, is the retoration of the duty oii tea and coffee. These dutiea woukl add probably O18, 000.000 to the present amouut received 'for Import, una uuia in uo way increaae the price paid forthoso artides by tliê j consuméis. Tliese articles are the producís of countriea collecting revenuo from exporta, and as we, the largost consumeres reducetheduties, thev proportiouately iucrease them. vith this addition to the revenue, many duties now collected, and which give but an insignificant return for the cost of eollection, might bo remitte'l, and to the direct advartage of the consumei-R at home. I would mention tliose j articles which enter into manufactures of all sorts. All dutiea paid upon such articles go directly to the cost of the article when manufactured here, and must be paid for by the consumera. The dutiea not only come from the consumera at home, but act as a protection to foreign manufacturéis of the same completed articles in our own and üistaut markets. I will suggfiat or mention auether subject bearing upon the problem of how to enable tho Secretárv of the Treasury to accumulate balancee. It is to devise some bet ter method of verifying claims against the Government than at present exitsts through the Court of Claims, especiallv those claims Towing out of the late war. Nothing is more certain than that a largo percentage of the amounts pased and paid are in part, or wholly, fraudnlent, or are f jr in excesB of the real lostes sustained. Ihe large amount of lossea, proven on good testimony, according to the elWiOg laws, by tho affidavita of fictitioua or unscrupuloua person '. to havo boen sustained on Kmall farma and plantations. are not only fai boyond tho possiblo jiêla of those places for any one vear, but as everyone kuows who has hadexperionce iu tilling the soil, and who has visited tho scènes of these spohaüons are in many lastanccs more than the individual claimants were ever worth, nclu'ling their 1 personal and ral estáte. The íeport of the Attorney-General, which wiil be aubmitted to Congreaa at an early day, will contain a (letailed history of the awards made and the claims pending of the claus here referrod to. I The report of the Secretary of War, accom; panyinp this message, gives a detailed account F of arrny expenditm-esfortbeyear jnstpassed, i expenses for maintenance, etc, with recommendatinna for legislatioo, to which I respectI f nlly invite your attentiou. Tosomeol' tbeee ' I invite special attention : First, tho tor tho Subsistence Departnieut available before the beginning of tho next fiecal pear. Without tliis provisión, troops at poirits iistant from supply or i-.roduction must either go without food or existing lawa raust te violated. It is uot atteuded with coat to the Tre:Bury. Seeond, bis ïecommendationB for the eunctment of a System of annuities for the families of dcceasod oflioers by voluntary deductious from the morithly pay of officeis. This again io uot attended with buiden upon tho Treasury, and would for the future relieve much distress whk'h every old army oflicer has witneased in the paat- of ofncers dyiug tuddenly, or being killed, leavng families without even tha means of reaching their friends- if they wero fortúnate enough to üave frenda - to aïd thera. Third, the repealof the law aboUsliing mileage anda retum to the old system. Fourcb, the trial with "torpedoes, under the charge of tbe florps of EögfaeeiB, and appropriation for tbo samo. Should war ever oecur botween the United Statea and any maritime power, torpedoea wiil bo among, if uot tho most effective and cheapest auxihariea for the dofenso of haibor, and also in aggro?siye operationa, that we can have. Iïeüce it ia advuable to leam by experiment thoir best construction and applicafion, as well as c-llect. Fifth. A permanent organization for the Signal Service Corps. This service haa now become a ueceaeity of peaco as well as war, under tho advaucement ínado by the present able management. SixtU A renewal of the approrriation fot compiling the official records of tlie war, etc. The condition of our navy at tina timo is a subject of satisfaction. It does uot eontain, it i true, any of tlio powerfol rutaing :ronciadï, which'make eo mnch of themaiitime of some uther nations, bu', neither our continental öituation nor our fcreign iiolicy re quire that we should have a large number oï I bliips of tbiö cliaracter, wlnle thia aitaaUon and tho nature of our peita continue to make those of other Lations little dangeroua to us under any ciicumtances. Our mít iloea oontain, howevtr, n nciiwiderabie munber of ironclads of the monitor ojaaa, v.l i ■!■. thongh not properly cruiaers, are powerful and effective fov hurbor defanse, nd tol operationa near onr owu shoren. Of the.i.", all the aiuglc turroted ones, tífteen in minibe r, bave been rfiib! atantidlly rejbnilt, their rotten wocdau beamn replaced with iron, their huils strengtbi ned, and their enginesaud mai'liincry thorougbjj repaü'od, o ibat they are now in tlie mot effi cient condition and ready for ea a soou as i they cmi be inanned and put iu oomraisHion. The 1ivo doublé turretted ironnlads belopging to our navy, by far tbe most powerful of our Bhrps for ffghting purpoHea, avt rt'so in hand, uudergoim; complete r#lWl'S. and uotild bo (ëdy for sea ta" periala varyijijj from four (r, Sx muiit'-w. Witlj th(a coinpieta jUMoruing ta praamt áa ■eady, our ironclad fleetwill bc, for the pnroeoscf defeuse at home, eqnal to ony force ;hat can bc readily brought agaiuet it. Of woiden navy, alao, crvusers or varmn i iizch, to Ihe mimlicr of about forty, inclr j.ng tboso now in conimianioD, are in tho Uantic, and could be ready ior duty as fat; as nen conld be enlisted for thoae not already n commiasion. Of these, one-third are in iffect uew tihips, and tliough some of the reniiuder need considerable repairs to their oilera and machiuery, they are, or can readly be made, sffecti've. This constitutes a leet of raore tlian fifty war shipe, of which ifteen are iron-olad, now on hand on the Atnmic ooaat. Tho navy has been bronght to bis 'ondition by a judicious and practical ap)lieation öf wiiát cottM bc pared f rom the tarrêat approijviallona of tbe liet few yeata, ma from that made' td meet the possible miergency of two' yëars ago, ft haa bceti lono qdiétly, without proclatöaflon ov islay, and thoiigh it has DccesKarüy straitened hedeparrment in ita ordinary expenditrtre, ldcI. as f ar as the ironclads are concerned, lias idded nothing to thé ermaing forcé of tlie ïavy, yet the result ia not the lesa aatisfactory, ecáuae it ia to be found in a great inerease of eal rather than appareut force. The eitpenaea ucmTcd in tho maintenauce of an effective ïaval force in all ita branchea are neceasarily aigei bilt such forco is eHaeutial to onr posiiou, rëlatioii1! nud character. and affeetH erioasly the woight of our principies and poh:y throughout tlie wliolo aphereof naval ropenslbUiiiee. Tho estimatea for the regular mpport of tliia branch of tbe service for the ïext Toar amount to a little leaa in the aggre;ate than those made for the eurreiit year; but 'nme additioual appropriationa aro aaked for b.jectd not inclutled in the ordinary roaintcnin'oe of the navy, but believed to be of preasn" importauce. At thia time it would, in my pinion, be wise at once to afford Btifiicieut neanB for the immediats completion of be five double-tnrreted monitors now nnlergoing repairs, which must otherwse Witnco 'alowfy, and only as mouey can be spar3d from eui-rént expenses. Supplemected by hete, our nvy arnv cl with the deatractive iveapons of modern Waf matmed by our ïnrtructed oilicers, will preseit a force powerful for the home purposea of a reaponsible thongh peaceful nat.ou. The report of the Postmaster General, herewith trausmitted, givea a full hiHtory of the workiugs of bis department for the year just panfied. It will bc oBsOFtéd that the deñciency to be snpplied from the general Trowmry ia ïncreaeed over the amonnt requirod for tuo preceding year. In a country ao vast m arca a the United Statea, with large portions sparsely settled, it muet be expeotc-d Mist this importan service will le more or leas a buiden upon the treasury f or many yeara to come; butthere m 110 branch'of the public service wlnoh intcreats tho whol.3 peo)jle more than that of tho checp and rajiid transini.-ssion of tho mails to every iuhabi ted part of our tenitory. . Next to the free school, the postomee ia th great educator of the people, and !t may wel receivo the support of the General ment. The subsidy of 8150,000 per annum, given Oie vessel oí the United States for carrymg tbe mails betvreen New York and Bio Janeiro having ceased on tbc 3fth day of September last we are without direct mail f&cüitiea witu the Soutü Aiüêrican States. Thin is greatly to be regrettcd, and I do not hcaitate to recoüiinend the authorization of a renewal of that contract., and aleo that the service may be mcreascd frorn monthly to semi-monthly trips. The commercial adyantages to be gained by a direct luie of American steamei a to the South American States will far oulweigh the expense of the service. By an act of Congres, approved Maren 3, 1875, almoHt all matter, whether properly mail matter or not, may be sent any diatance through the mails in package3 not exceeding fottr pounds in weight for the aura of sixteen ctnts per pound. So far as the transmission of real mail matter goes, this would ssem entirely proper. Dut I suggest that the law be so amended as to exchide from t.be mails iñcrchaiKlise oi an o-iotia, and limit tliis transportation to all articles enumerate'l, and which may bo elaused as mail matter proper. The discovery of gold in the Black HilU, a portion of the Sioux reservation. has had the effect to induce a large emigration of minera to thït point. Thus far, the effort to protoct the troaty rights of the ladians of that neci tion has been snscessful, but tbe ntxt year I will ce.rtainly witness a large increasa of Biich emigration. The negotiations for the reliuqmshment of the gold held having failed, it will be neceesary fcr Congress to adopt sotne measurea to relieve the embarrassmtut growiug ont of the crurcs named. The eecretaiy of the Interior suggeats that the suppliea now appropriated for the sustenauce of that people, beiug no longer obligatoi-y nnder the treaty of 1868, but simply a gratmty, may bo issued ur withbcld nt hia diacretion. The comïition. of tho Indian Terntory, to which I have referred in seveijal of my former aunual raessagca. remains practically unchanged. The Sdcretary of the Interior has taken meaaiires to obtain a full report of the conditlon of that Territory, and will make it the ubject of a special report at an erxy day. It may then ba necessary to make some further recommeiKlation in regard to iegislation for the govenimcnt of that Territory. .... ■ The Hteadv growth and increase of tho business of thé Patent Office indícate in some measure the progre-s of the industrial prosperity of the couuty. The receipts of the ofcee are in exces of ite expenditures, aud t ie othce gcnr-rally is i o a prospcroua aud satiBfactory condu' ion . The report of the General uma umco shows tUat thero wore 2,459,601 acres less diaposed of during tuis lliao during the last vear. More than one-half cl tlim uocrease vaa in land dispoeed of under liomotead and '. timber culture lawg. Tlio causes of tlns decrease ars snpponed to be found in the grtt hTpersconrge, and tho dronths, ,w)nch pre' vailed so extcnmvoiy in some of tbo frontier ' States and Territorios duririg that time as to l diecourago and deter enfries by actual settlers The cash receipts were lese by fa,8Urf," 220 tban daring the proceding year. fhe entire 6urveyed area of the public .doroaiu w : nRft%M.nn4 acres, of which 20,077.531 acres ,vere surveVeil during the past year, leaving l,151,4il,762 acres still nnsurreyed. The report of the Commiseioner cf Pensiona makea interestiug Buggestiansm regard to the management and dispo.ition of the public dojpain nnd the modiücation of exitiiig laroj, the aiparent importance of whieh whoukl msure fór them tlie careful considerahon of Lonei-obb The number of penaionera atil continnes to docrease, the highest unmberhaving been reached during the year endmg Juue 30, 1872. DuriDg the last year Il.o57 uames were added lo tho rolle, and 12 977 were droPP"1 therefrom. showing a net decrease of 1,4-0 ; but while the nnmber of peimoners ha decreased. tlie anuual wno.mt due on the pen cauaed bv the creatlv iucrettsed average rate of pelmnl wnTch, by the liberal legUOahon of Coúgress. has mcreased from .H).2b in 1872 to S103.91 187 to each invalid penHioner-an luorease in tha average rale of 10 per cent. iu the three years? During tho var endmg June 80, 1875, fhero was païd on acoount of pensiOni mclnding the expenf.cs of diaburaement, -■',- 683,110, being $910,632 let thau wat paid tho preceding year. This rqtoctoa. W. aniount of exponditurea was produced by tlie deortase in tho amonnt of arreavages due on allowèd clainiB uiul on penuloim. the rate of whith was merciisod by the legislation of the nrecedins: session of Congress At the clone of tho lapt lineal year there ere on tl.e pcusion-rolls 284,8'il persons .of whom 310,868 ware arrny pensiouers. 105,4(8 i betag invalida, and 101,885 wMovrs and pendent reVativeH; 3.420 navy peneimiers, of , whom 1 3G weve iuvalidi, and 1,784 wimnv and dcpèndont relitlTM : 21. OM wore , Riouertfof tte wr o ïeii, 1&.8T? (tf wüojp j ! :: and 5 m Of g be reciuired for tbo payme.it of po" the nexc ti.5..'dl o=iv, an amount $9(o.000 leee i thau the Mtlnm for tho preBf-nt yeai'. Tho .-cogiaiiliicul cxpl.i'aluis hiiVC been i urotecuteü with energy dni-ing the year eoySrlng au area of abont 40.000 sdttWB faHss m ! the Territorios of Celerado, ütah and New Mexico, davelspiug the agvicultuv.il and mineral i6ourceu, and furnishüg mterBtiog ! Hcientilic aod topoBraphical detail of that i región. Tho method fyt tie treatrnent of the Ir.aiana sdoplod at the bagimnng of my flw term haH been Bteadily imri-ncd, and " BatiBfaotovy sndencouragioi,' resijlti l' uf" been productiva of evident imyi-oveaeut m thcoondjiion (f that race. and wiH be con. tinuèd with only tucli moiW"0?? 3fl ther Piperienee may iildu-atf t ha dccch sary, , chn-iiC of ;,■, artilles. al W li ;'! P ug to tin 'Var. ín Sy. iUb T.,en y, i ü ■ ÍQttíioi md Poet ÖAm %pfcw, aml the Department of Agrlcnltii o, tliB HinithHonjg.n Instituto, and the O.miminaiou of ïo;l Finhes, to be contri i - uted, under the legisiation of Iaat aoaion, tu fbfl International Exhibition to be held at Philadelphia. during the Contonniat year, 187G, has been diligent iu tlie discharge of the dutien which have devolved upon it, und the preparatioim ao fr made, with tlio raeanr at cooimand. givo awfmrance that tlie Governrnent oon'ributioiiH will bfi mado ono of tho markod cliariisterUtu-if the exhibition. The Board hfla observed ronimendnble economy in the matter of t.'io erection of buildings' for the Goverumental exhibit. the expenso of wbicb. it ifl entimate.l,will not ex?ee;l, say, $80, 000. Th is amount has betn withdrawn, under the Uw, from the appropriations of iive of tho principal departmenta, whieh lcavcn aome of thone departnienta without aufficient me ns to render their renpective practical oxhitntH complete and aatiafactory. The exhibition being aii international one, and the Government beiug a voluutary contributor, it ia my opinión that the contribution aliouW be of a character in qnality and extent to Butain the dignity atd credit of ho distingnlaheii' a contribntor. The advantascH to tbe country of acreditable display in an internationsl point of view, are of the tir.it importance, while an indifferent or diecreditable partidpstion by tke (iovemment woukl be hnmilinting to the patriotic fetlinijs of onr jieople themsolvcH. I commend the cstimaten of tho Iioard for the necewary additional npprjpriatiouH to the favorable eonsidtrutioii of Congres. tlie powers of Enrope,almost without exoeption, many of the South American State, and even the moro dwtaiit Eastern power?, have niiHnteKto.l their friendly centimentH toward the Uuitod Btates, and tho iutereat of the world in our progresa, by taking step to juin xvith uu ín celebrating the Contennial of tbe Nation, aivl atrongly recommend that a more national inii)Ortauce bo piven to tbld exhibition by bucïi egiülation and by Huch appropriation aa will insure its KiiccesR. Ita valne in briiiging to onr shorc-a innumerable useful works of art and ükill, ilie commingling of the citizens of foreign ronntries and onr mra, and tho interehnnje of id(;af and manufactures, will far exoeed any pecumary outlay wo may maXe. I tinnnmit herewith tho report of the Corani'Hfiitmcr of Agricnlture, together wilh the reporta oí the Comminmouem of the Board of Audir and the Board of Health of tlie District of Columbia, to a'l of wbioli I invite your atteuion. Tlm Bureau of Agricalture has accompliabed much in dbieeminating UHeful knowledge to the agriculturiHt. and tlso in introducing ncw and iBefnl jiroductionH adapted to onr soil and limato, aDd is worthy of the contiuiied cnoura,'ement of the GovernmeLt. Tho report of the CommiBsioners of Education, whicii accompaniea the report of t!ie öecretai-y of the Interior, show a gratifyim; rogres9 in cducatioual matters. In noarlv jvery aunual message thatl have had the honor of transmitiing to Cougrees, I have cdllod atteutiou to tho anomaloua, not to say scandalous, condrtion of :ho affair.s exiating in the Territory of Utah, and have askod for detinite legialation to correct it. That polygamy ghould ex'st in a free, enlightened and Chridtian country, without tlie power to pnniah bo fH rant a crime against decency and moraüty, eeitma prepi ateroua. Trne, there is do law 10 rustaiu thia Hnnatura 1 viee, bnt what ia neèdod ia a law to purnuli it aa a crime, snd at tlie game time lo lix the atatua of the innocent. childien- tbe offt ring of th: tjAem, and of the possibly innocent plural wivcï ; l.ut. au an inntituton, polvgaroy ahould be banishodfroratUe land. Whi'e thia in heing done, I invite the attention of Üongren to another. t)iou;;h peihapa oo leas an ovil, tbe ituportat.ion of CliiiK ee womeu, but of whom aro brought to oúr Bhores to procure honorable or ueeful occupation. Obscrvations while vifitujg the Tornlorr33 of Wyoming, Utah and Colorado, during tüa laat Autumn, convinced me that exiatins lawa regulating the diaposition of public lanóX timber, etc, and probably the mining law theroselves, aro very defectivo, and glionld bo -caref ully amended, "and at an early day. Iu Territories wlierotne cultívanos oí iuübuuchu only be folioweü by irrigation, wbera tlie land can only bo ased as pasturag.e, and tliiH ouiy where stock can reach water to queucli t-Mrst, eannot be goveroetl bj tbo Bame laws as to entrios of lands, ever? acre of wliich is au independent Btate by ilpclf. Land-i must bo U:ld in larger quantiúes to jUBtify tbo expense of coniructing water upon ït to malie it fruitful, or to jnstity uriliziiiK it a8 pasturage. Tlie tiraber In moet of tbe Territorios ia principally coufined to tlio mouutain región, irhich aro held for entry in rsnviH qiiantmee only, and as mineral lands. ïhc jimW-r ia the property of tbo United State, for the dieposal of which tliere ia now no adequate law. Tlie settler must become a caneumer of tbi timber whether he livéa upon the plains or engaces in working tbe minea. Henee every man beeoines either a trespasser lnmelf, or, ■ koowingly a patrón of trespassers. My opporhr.nties for obsaryfnj; wero not nrticient to instify me in recommending specific logisfeffiH ffc#IWSSStóSL & holmes' of CongreBS, eufficiently largo to te divided ii.to Bub-committeeB, beorgauized to vipit all the mming States and Temtones ilurin" the coming nummer, and tbat tlie comnutteo sball report to Congress., at tho nextsessiou, euch lans, or amendmentB to the l:iws, a may seum necessary to secure the best mferests of the Government and the neonle of the-e TerritorieH, who are doing bo rniich for their develpnmcnt. I am BÚre (be oitizanaoccupving the Territorie escribed do not wiah to be trespassers, nor will tliey be, it legal wav are provided for them to bocomc owners of these actual neceBsities of tbeir pos' 'as this will be the last annual message wbicli I shall havo the honor of transmitting to Oongresa before my successor is chosen. will repeat or recapihilate tho quostiona whii-h I deern of vital importance which are to be legiaU ed npon and settled at this Bension : 1. . That the Stotes Bhall be reqnired 'f11'6. portu-iitv of a good eommon school edncation to cverv cbild witliin their Jnnits. . tenets sïiall ever be Uught in anv c hoo upported in whole or in part by tho btate, uatioi or bv the proooedtí of auy tax lovied upon an ■ com'muuity make education compukoiy. m f ar s to deprivo all pereoi who cannot read ! and write lrom beconung votors aitr the jear 18P0. disfrancbising none, bowever, on mo gronnd of illiteracy who may be voters at tbe time this amendmenk takea effect, i. JJCclare the Church and State forever eparate and dwtinct, bnt each free w.tlun thoii proper Ppheres, and tbat all olmrcb PPV 'shaSl br it own proporüon of Uxauo ii. 4. Drive out liconsed ïmmorality noch a gamv and tiio iroportation of women iui =- fitlmate purpoeeá. To rocur again to the coutcnnial vear. now aa we re about to begm the SkI conhuv of our uational exteuco, wonkl be a most fitting time for tbese reform. 5. Euact ach laws aB will inBiire a P"fy " tou to a soand currency, sueli a wül command the respect of the worW. p(,„memi Believing that theee viewa vnü "" tl.emselvea to the great JÍTil6, thinking aud patriotic ciiizeM oí the Luitca utot T Hithmit the reat to Congres. íKiL'ned'). ExKronvË Mansión, December 7, lva.