It Still Confronts Us.

TOTHE OoNQRESS OF THE UNITED StATESÍ AS you astemble tor the discharge of the duties you have ossumed as the representativos of a free an renerous people, your meeting is rnarked by an interest ing and impressive incident,. With tho xpiration of the present session of the congress tíie first century of our coustitutional existence a a nation wül be complet ed. Our survival for 10 years is uot suffieient to assnre us that we no jonger have dangers to fear in the maiutenance TTith all its promised blessings of a governmeu founded on the f reedom of the people. The time rather admonishes us to so&eriy inquire whether in the past we have always closely kopt in the cour.-e of safety and whether we have before us a way plain an( clear which leads to happiness and pernetuity The citizeu of our repubhc in its early day rig jdly iusistcd upon fuïl cmpliance with the 1. tter of tliis bond, and saw stretching out before Wm a clear field for individual eudeavor. His tribute to the support of his government was measur.ed by the cost of its econornical mainteiianco, and he was secure in the eujoyment 01 the remaining recompense of his steady and contented toil. In those days the frugality of the people was stamped upon their fovernment and was en torced by the free thoughtful ïtnd intelligent suffrage of the citi Bens. Combinations, monopolies and aggrega tions of capital were either avoided or steruly regulated and restrained. The pomp and glitter of governments less free, oifered no temptation ana presen ted no delusion to the plaiu people who.side by uide in iriendly competition, wrought for the ennoblement and dignity of man. for the eolution of the problem of free government and for the achievement of the grand destiny await ing the land which God had given them. A century has paysed. Our cities are tho abiding places ofwealth and luxury; our manufactures yield fortun s never dreamed of by the fathers of the republic; our business men are niadty striving in the race tor riches, and immense aggrega tions of Oapitnl outrun the imagination iu tüe magnitude of their undertakiners. When the experiment of our governmeut was undertaken the chart adopted for our guidanoa wats the constitution. Departure f rom the lines there laid down is faihire. It is ouly by a strict adheren. e to the directiou they ndicate and by restraint within the limitations they flxthatwe can furnish prouf to the world of the fitness of the American people for self-government. The equal and exact justice of which we boast as the underlying principie of our iastitutionsshould not be confine i to t .e relations of our citizens to eacn other. The government itself is under bond to tho American people, that in the exercise of its lunctions and powers it wiil deal with the body of our citizeus in a manner scrupulously honest and fir, and abso'ut ly just. It has agred that American citizenship shall be the only credential necessary to ju tify the claim of equality before the law, and that no condition ia life hhall give rise to discriminatiou in the treatment of the people by the government. We view w itii pride and yatisfaction this bright picture of our i-Oiintr; 's rowth and prospenty. While only a closer scrutiny develops a somber shading, upou more careiul Inspection weflnd the wealth and luxu'-y or1 our cifies mingted with poveity and wretchedness and unremunerative toiL A crowded and contautly incn asing nrhau popuiation tmggests the Inipoertahmeul .i' iirai Si-cto s and disconten with agricultura! pwwuits. The iarun.-r's son, nut buti li-. d widi lii.s l'urhers simple and laborious lii', jom-i tager chase foreasily acquired wealth. We liiscover that the fortunen realiz d by o v manufacturers are no longer soleiy 1 reward of sturdy industry and e:ili;lit ned foröaight, but that they resul t f rom the discriminating favor of the government, and ure largely built upon u (lúe exactlon i rom the masses of our people. The guit' ben oen employers and the employed is coustantly wid ning and classes are rigïdly formlug, one comprisiug the very rich and powenul, ulule in anuther are found the toiling poor. As we We"v the achievement of aggregated capitalj we discover the existence of trusts, combinations and monouolies, while thecitizen is strugKÜng .ar in tne rear or is trampled to death beneath an iron heel. Corporations, which should be the carel' uil. restraiued creatures of the law and the servan . of the people, are fast becoming the peopl 's mesters. Still cougratulatiug ourselve. u on the wealth and prosperity óf our country, and complacen tly contemplating every incident of tíhange inseparable frora these conditious, it is our duty as patriotic citizens to inquire at the present stage of our progress huw the bond of the government made with the people has been kept and performed. Instead of limiting the tribute drawn from our citizens to tne uecessities of its economical administración, the goverument persists in exacting from tne substauce of the people millions which, unapplicd and useless, lie donnant in its treasury. ThLs ttugrant injustice and thi.s breach of faith and ouliation add to extortion the dangerattendiug tlie diversion of the currency of the country from the legitímate channels ot business. Under the Larne iaws by which these results are produced, oe government permita many millions more to bt added to the cost of the living of our people and to be taken from our consumers, which unreasonably swell the profits of a smal 1 but poweriul minority. The people must still be taxed tor the support of the government under the operation of tariff Iaws, but to the extent that the nta-ss of our citizens are inordinately burdened oeyo d any u eful public purpose, and for the benefit of a favored few, the governmeut, under preteuse of an exercise of its taxing power, enters gratilusly into partnership with these favorites to their advantag and to the In jury of a vast noajority of our people. This Is not equality before tin; law. The exi ting sltuatlon is ïojurions to tlu hfialth of our ei. tire body poli. ie. It stifles in tbosp all patriotic love ot' country and subbtitute in its place selfish greed and rasping avarice. Devotiou to American citizenship t or itsowu sake and for what it snould accomplish, as a motive to our nations advanceuienc and the happiness of all our people, h displaced by the .ssuiuption that the government, instead of being ttie embodimentof equality, is but au instruirán i al i ty through whicn especial aud individual advautages are to be gained. The arrogonce qf this assumption is unconcealed. It appears in the sordid disregard of all but personal interests, in the refusal to abate for the b neflt of others oue iota of selfish advantages and iij combinations to perpetúate such advantages CfarougU eflforts to ;onlrol legislation and iinproieily influence the suffrage of the peo pie. The gi-ievauce of those not included within the ciivle of these beneficiarles, when fully realized.wilí suitily arouse irritation auu disconten t. Our farmers, long -suffe ring and patiënt, struggling in the race of life with the nardest and most unremitting toil, wilt not fail to see, in spite of misrepreeentations and misleading fallacifs. that they are obliged to accept such prices tor their product as fixed in f -reign markets, where they comp te with the farmers of the world; that their lands are declining in value while their debts iucrease; and that without compensating favors they are forced by the action ot' the government to pay for the benefit of others such euhauced prices for the things they need, .t the scanty returns of their labor fail to furuish their support or leave uo margin for accumulation. Our workingmen, enfrauchised from all delusions and no louger f righ tened by the cry tbat their wages are eedangered by a just revisión of our tariff Iaws, wül rt:a.süuably (Iemand through such revisión steadirr employmem, cheaper means of living in their homes, f i eedom for themselves and their children from the doom of perpetual servitude, and an open door to their advancement bevond the Hniits of a laboriug class. Others oi our ottizens whose comforts aud uxpenditures are measuret) by moderate salaries and fixed incomes ■wijl insist upon the fairuess and justice of cheapening the oost of uecessaries for themselves and theii families. When to the svlflshness of the beneficiaries of unjur discriminatioD under our Iaws there shall be added the di;coutent of those wlio suffer from such discrimiuation, we will realizo the tact that the benefleent purposes of our goveruinent, dependent upou the patriotism and conteatment of our people, are eudangered. Oomtnuoism is a liateful thing, and a menace to pcactïand organBed government. But the cominunism of combined wealth and capital, the outgrowth of overweening cupirtity and elfishness, which insidiously undermines the justice and Lntegrity of free institutions, is not less daugerous than the comniunisiii of opposed poverty aud invites it, exasperai ed by injustice and discontent, to attack with wili disorder the citadel of rule. He mocks the people who proposes that the goveroinent shall protect the rlcn, and that they ]d turn will care for the laboring poor. Any intermediary between the people anti their governnieut or tho leaat delegation of the care and protecöoii the government owes to the humblest citizeD iu the laúd maltes the boa-;t of tree institutions a gliramering delusion aud the pretended booa i American citizeuship a shameless imposition. A juut and sensible revisión of our tariff laws shouid be made tor the relief of those of our country nii'ii who suffer uuder present c-nditions. Such a revisión bIiouKí receive the support of all who luvu that justice and equality to American citizenship; o( all who realize rhat in this justico and equality uur guvurment flnds its strength and its power to I proteet the citizen and his propertv; of all who lielieve that the conteated competeiice and comfort of niauy accord better witn the spirit of our institutions than colossal fortunes unfairly gathered in the hands of a few ; of all who appre ciate that the forbearauce and fraternity among our people, which recognize the value of every Americau interest, are the surest guarantee of our national progress, and of all who desire to see the products of American skill aud ingeuuity n euery market of the world with a resultant restoration of American commerce. The necessily of the reductionof our revenue is so apparent as to be generally conceded, but the means by which this end shall be accomplished and the smn of direct benefits which shall result to our citizens, present a controversy of the utmost mportance. There should be no .scheme accepted as satisfactory by which the burrtens of the Deople are only apparently removed. Extravagaut appropriations of public mouey with all their demoralizing consequences, should not be toleratetl, either as a means of relieving the treasury of its present surplus or as furnishing pretexts for resisting a proper reduction in tariff rates. Existing eviis and injustice should be honestly recognJzed, boldly met aud effectively remedied. There should be no cessation of the struggle until a plaa is perfected, fair aml conservativa toward existing industries, but which will reduce the cost to consumera of the necessaries of Ufe while it provides for our manufacturera the advantage of free raw materialsand permits no injury to the intrests of American labor. The cause for which the battle is waged is eomprised within lin-s clearly and distinctiy definea, and it should never be compromised. It is the people's cause. It can not be denied that the selflsh and private interets whlcb are so persistently heara when efforts are made to deal in a just aud compreliensive manner with our tariff laws are related to, if they are not responsible for, the sentiment largely prevailing among the pjople that the general government is the fountain of individual and private aid ; tbat it may be expected to relieve with paternal care the distress of cittzens and communities. and that from tne fullne-s of its treasury it should, upon the slightest possible pretext of promoting the general good, apply public funds to the benefit of localities and individuals. Nor can it be denied that there is a growing assumption that, as against the governuient aud in favor of private claims and interests, the usual rules and limitations of business principies and just dealing should be waived. These ideas have been unhappily much encouraged by legislative acquiescence. Relief frcm contracts made with the govemment is too easily accorded in favor of the citizen. The failure to support claims against ttie government by proofs is ofteu supplied liy 1:0 better consideratlon than the vveaith of the goverument and the poverty 01 the claimant, Oratuities in the form or pensions are granted upnn no other real ground than the ueedy condition of the applicant or for reasons less valid, and large sums are expended for public buildings and other improvements upou representations scarcely claiined to be related to public needsand necessities. The extent to whi h the consideration of sueh matters subordínate and postpone action upon subjects of great public importance, but involving no special private or partisan interest, should arrest attention and lead to reformation. A few of the numerous illustrations of this condition may be stated. The crowded condition of the calendar of the suprerne court, and the delay to suitors and denial of justice resulting therefrom, has been strongly urged upon the attention of cougress with a plan for the relief uf the sitiii tion approved uy those well able to judge of its me rits. While this subject remains without effective cqnideration many laws have been passed .rovid ing frthe hoKling of terms of inferior conrts at places to suit tne convenieuce of localities, or to lay the foundation of an apphcation for the erection of a new public building. Repenteil recomm nd:ition? have been submittedforth-; ámeniluiout a 1 chauge of the laws relating to our public lauda 80 that their spoliation au4 dlversiuD t otüeruses than as homes for honest Sfttler-i ïuigh be prevented. While a meaeure to meet tni.concailed neees-ityof reform remains awaltiog the action of congress, many claims to til ■ puolio lands and apphcation for their dooatiou in avor of btutes and individuáis bíivo bj.-u allowed. A i'htn in aid of lndian management, recommended by those well informeel as containing valuabie features in furtherance of the solutiou of the lndian problem, has thus far failed of legislative sanction. while grants of doubtful expediency 10 railroad corporaiions, permitting them to pass through lndian reservations, have greatly multiplied. The propriety and necessity of the erection of One or more prisons for the confinement of United States eonviets, and a postoftice building in tho national capital, are not disnuted. But these neet-is yet remain unanswered, while ï-cores of public buildings have been erected where their necessity for public purposes is not apparent. A revisión of our pension laws could easily bO made, whieh would rest upon just principies and provide for every worthy applicaut. But while our general pen -ion laws remain confused and imperfect, huudreds of private pension laws ar annually passed, whicn are the sourees of unjust discrimination and popular demoralization. Appropriation billa for the support of the governnient are defaced by items and provisions to meet private euds, and it is freelyfcasserted by respousibie aud experienced parties thatabül appropr ia tinte money for public iaternal mprovenient would fail to meet with favor unless it contaiued more for local and private advantage than for public benefit. These statements can be much emphasized by an asee r tai nment of the proportion of federal legislation which either bears upon it- face it private character or which upon exaiuinatioD develops such a motive power. And yet the people wait and expect from their choseu representative such patriotic action as will advaucu the welfare of the entube country; and this expectation can only be answered by the performance of public duty with unselflsh purpose. Our mission amoug the natious of tho earth and our success in accomplishiag the work God has given the American people to do require of those entrusted with the inaking and execntiqn of our laws perfect devotion above all other thiugs to the publi' good. This devotion wlU lead us to strongly resist all impatie. ce of constitutional limitatiuus of federal power, and to persistently check tlie increasing tendeucy to extend the scope of federal legislation into the domain of state and local jurisdiction, upon thu plea of subserving the public welfare. The preservation of the partitions between prop, rsulvjectsof lederal and local care and regulation is of such importance under the constitution, which is the law of our v.-ry existence, that no consideratíon of expediöncy or senáment shonld tempt us to enter upon doubtful grouuds. AVe have undertaken to discover and proclaim the riehest blessiugs of a free goveruinent, with the coustitution as our guide. Let us foilow the way it prints out. It wiü not mislead us. An-i surely no one who has takeu upon himelf the soL:mu obligation to suppor.. and preserve the consti.utiou can fiad justification or solace for disloyalty in the excuse that he wandere i aud disobeyed in search of a better way to reach the public welfare thaa the constitution offers. What has been said is deemed not inapproprifcte aL a tiinw when, irom aceutury height, we view the way already irod by the American people and attempt to disi-over their future path. The seveath president of the United States- the Boloierand statesmau, and at all times the firm and brave friend of the people- in vindication of his course as a protector of popular rights and champion of true American citizenship, declared "The ambition which leada me on is an anxioua desire and a flxed determiuation to restore to the people unimpaired the saeredtrust they have confided to niy charge. To heal the wounds of the eonstitution and to preserve it fromfurther violation. To persuade my countrynieu. so far as I inay, that it is not in a splendid government supported by powerful monopolies and aristocratieal establishments that they will fiud happiness, or their liberties' protection, but in a plan system, void of pomp- proteo; tin g all ind granting favors to none - dispensing its blessiugs like the dews of heavea, unseen aud unfelt save in the freshness and beauty they contribute to produce. It is such a goverument that the genius of our people require - such au one ouly jnder which our states may remain, for ages to come, united, prosperous, and f roe." Ia pursuance of a constitucional provisión requiring the president f rom time to time to give x the eongress information of the state of the Union, I have the satisfaction to announce that ;he close of the year finds the United States in I :he enjovment of domestic tranquility and at , peace with nli the nations. Since my lust annual our foreign relations have been strengt hened aud improved by performance of international good offices and by new and rene wed :reaties of amity. commerce and reciprocal ex.radition of crimináis. Those international questions whioh stilt await settiement are alLreasonably withln the domain of amicable negotiation. and thore is no existing subject of dispute beweeu the United States and any fureigu power ;hat is iiot susceptible of satisfactory adjustment by frank diplomatic treatment. The questioüs betweeo Great Britain and the United States relating to the rights of Ajncriean Éshermen under treaty and international comity in the territorial waters of Canada and Newfoundland, I i regret to say are not yet satisfactorily adjusted. j These matters were fully treated in my message 0 the senate of Feb. 30, 1888, togother with wbich 1 con vent ion concluded under my mthority with ier maje;-ty's government on the löth of February lasi, for the remo val of all causes of misunderstaoding was submitted by me for the ap)rovjü of tfis senate. Thts treaty having been rejected by the senate ' transmitted a message to the congress on the 23d of August last, reviewing the transaction and I Ubmtttiog for cousideration certaiu recommendations for legislatiou concerning the important luestions iuvolvod. Afterwards, on the liih of September, m response to a resolution of thfl ate, I again communicated fully all the infoniiatiou In lm posaession as to the aetion of the govemment of Canada affecting the commercial r-l;iHuns between the Dominion and f 3 United States, tucluding ttie treatment oí American flshing vessels in the P-'rti and waters of Brilish North America. The eommunications have all been puhlished, and therefore opeued to the Jcnowledge of both houses of congress, although two were addressed to the sena'e alone. Coinment upon or rt petitlon of their eonte ts would be 8_uprflnous,and lam not aware that anything has since ""curred which should be added to the facta therein stated. Tüerefore, I merely repeat as applicabli! to the present time the statement which will be fouud in my message to the senate of Sept. 1 last, 'That since March 3, 1887, no case ha been reponed to the depar ment of state wherein complaint has been made of unfriendly or uulawf ui treatinent of American vessels on the part of the Canadian authorities. in wh ich reparation was not promptly and satisfactorily obtained by the United States consul general at Halifax. Havmp; essayed in the discharge of my duty to procure by uegotiation the settlement of a longstanding cause of dispute and to remove a constant menace to the good relations of the two eountris,and continuing of the opinión that the treaty of February last, which failud to receive the approval of the senate, did supply "A satisfactory, practical and flual adjustmeut upon a ba-is honorable and just to both partles of the difïicult and vexed question to which it related;" and having subsequently and unavailingly recommended other legislation to congress which I hoped would sufflce to meet the exigency created by the rejection of the treaty, I now again invoke the earnest and iinmediate attention of the congress to the conditiou of thU important question as it now stands before them and the country and for the settlement of which I am deeply solicitous. Near the close of the month of October, last, occurrences of a deeply regretable nature were brought to my knowledge, which made t my painful but imperative duty to obtain with as little delay as possibie a new personal channel of diplomatic intercourse in this country with the goverument of Great Britain. Tüe correspondence in relation to this incident will in due eourse be laid before you aud will disclase the unpardoaable conduct of the official referre.1 to in his interference by advice and counsel with the suffrages of American citizens in the very crisis of the presidential election, then near at hand, and also in his subsequent public deilarations to justify his action, superadding impugnment of the executive and senate of the United States, in connection with important questions now pending iu coutroversy between the two governments. The offense thus committed was most grave, involv'ng disastrous possibilities to the good relations of tlie United States and Great Britain, constituting a gross breach of diplomatic privilege and invasión of the purely dome tío alïairs and esspntial sovereignty of the governmeut to wh ch the euvoy was accredited. Haviug first fulfllled the just demands of international comity by affurding full opportunity for her majesty's government to ait in relief of the situation, I considered prolongation of discussion to bo unwarranted, and theeupon declined to further reeoguize the diplomatic character of the pesson whose continuance ín such fuuction would desti oy that mutual confidenee which is essentiai to the good understanding of the two governments, and was inconsistent with the rare and self-respect of the goverament of the United States. The usual intorchange of eommunication has siuce coniinued through her majesty's legation in this city. The president then calla attention to the necessity of actiou fer the protection of the fur seal industry in Behring sea, and hopes sooq to submit a sariyfactory solution of the matter to the senate; also te the importdnee of eskiblishing ttie boundary line between Alaska aud British Columbia; the desirabillty of reaching an agreement with öreat Britain iu regard to alleviaiitig the dangers to life and property on the great lakes by reciproca! actiun, wiiich lias not been reacued because Canada has not acted concurrently with us; the protection of out citizens of French origin from tlif claims of that goveruinent for military service, in which connection he sees no occasion for us to recede from our position on the subject. He refers feeliugly and eulogi--tically to the late emporor of Germany, and then calis attentiou briefly to the state of affairs in Sanioa, referring congress to the statements already laid before it on that subject. I annouuce wiih sincere regret that Hayti has again become the theater of insurrection, disorder and bloodshed. The titular government of President Salomón has been forcibly overthrown, and he driveii out of the country toFrance, where he has since died. The tenure of power has been so uustabie iimid the war of factions that has ensued siuue the expulsión of President Salomón that no goverument qoustituted by the will of the Haytian people has been recognized as admiuisteriug respousibly the affaire of that country. Our represen tative has beeu iustructed to abstaiu from interference betweeu the warring factions. and a vessel of our navy has been sent to Haytien waters to sustaiu our minister and for the protection of the persons and property of American citizens. Due precautions have been taken to enforce our neutra i ty lawa and prevent our territory from becotning the base of military supplies for either of the warring factions. Under color of a blockade, of ■which uo reasonable notice had been given and which does not appear to have been efflciently maintaiued. a seizure of vessels under the American flag has been reported, and in consequence measures to prevent and redress any molestation of any of our innocent merehantmen have been adopted. Proclama ti on was duly made on the 9th day of November, 1887. of the conventionai exteusions of the tr aty of June 3, 1885, with Hawaii under which relations of sucn special and beneficial iutercourse havo been created. The president then aimounces that so far the Chinese government bas not made any claim ou the moneyappropriateJ for indemnity to Chinese for injuries inilio.eti by mois in this country, and hope-s t-hat the cessation of the influx of Chinese into this country will remove a cause of unkind feeiin. He also refers brierty to our relations with Japan, Coreo, l'ersia and other couiitries, and urges the conclusión of a reci rocity treaty with Mexico; congratulates Erail on the total abolishment of slavery, and states our relations with Chili, Peru, Venezuela, and other South American couutnes, none of which are anything but friendly. Of the American" congress ho says: As authorized by the congress, preliminary steps have been taken for the assemblage at this capital during the coming year 01 the representati ves of South and Central American states, together with those of Mexico, Hay ti and San Domingo, to dlscuss sundi y important mooetary and commercial topics. Excepting in those cases where, from reasons of contiguity of territory and tlie existenoe of a border line incapaule of being guarded, reciprocal commercial treaties may be foimd expedient, it is believed that freeer mutual exchange of producís can be most advantageously arranged by independent but cooperative legislatura. In the mode last meutioned the control of our taxation for revenue will bo always retained iu our own hands, restricted by conveutional agreements with other governments. With the rapid increase of immigration to our shores and the facili.ies of modern travel, abuses of the generous privileges afforded by our nat, uraliation laws cali for their carefuí revisión. i The easy and unguarded manner in wbich certifícate of American citizenship caá be obtained has iuduced a class, unfortuuately large, to avail themselvesof the opportunity to becuine absolved fromallegiauce to their native land, aüd yet by a foreign residence to escape any just duty and contnbution of service to the country of their proposed adoption. Thus while evading the duties of citizenship to the United States, they may make prL.mpt claim for its national protectiou ard demand its Intarvention in their behif. International complica tiuns of a serious nature arise, and the correspondence of tne state departmeut discloses the preat uumber and co upiicityof the questions which have been ralsed. Our laws regulating the issue of passports should be carefully reTfaeo, and the iustitution of a central bureau ot registration at the capital is again strotigly reconimended. By this meaos full uarticulars of each case of naturalization in the United States would be aecured and pruperíy indexed and re-oorded, and thus many cases of citizenship would bedetected,andunjust responsibilities would be avoided. The reorganization of the consular service is a matter of serious importance to our national interests. The number of existing principal consular offices is believed to be greater than is at all necessary for the conduct of the public business. It oeed not be our policy to maintaiu more than a moderate number of principal offlVes, eacli eupported by a salary sufficieut to enable the incumbent to live in comfort, and so distributed as to secure the convenient supervisión, through subordinat agencies, of affairs over a eou-iderablo district. I repeat the recommendations heretofure made by me, that the appropriationa for themaiuteuance of our diplomatic and consular service should be recast; that the so -cal led notarial or uuofflcial fees which our represen tatives abroad are now permitted to treat as personal perqulBites shouid be forbtdden ; that a aysUim of consular iuspection shouid be iustituted; and that a Limited number of secretarles of legation at laree shouid be authorized. Prepara; ions for the centennial celebration on April ;W, lSi9, of the inauguration of George Washiujiton aa president of the United States at the city of New York have been made by a voluntary organization of the citizens of that localty, and believing that an opportunity shouid be afforded for the oxpre&sion of the interest feit throughout the country with this event, I respectfully recoinmend fitting and co -opérate actiou by congross ou behalf of the people of the United States. The report of the secretary of the treasury exhibits in detail the coodition of our natioual finances and the operatlona of the several branches of the govemmeat related to his department. The total ordinary reveuues of the government for the fisral year endod June &), 1888, amounted to $3r9,ki,0r4.7(i, of which $219,C91.ir:ï.t)-"l was received from customs dutiee aad $14,296,871.98 I trom infernal reverme taxes. The total receipta from all sources excecded thoso for the fiscal year euded June 30,188", by $7,862,797.10. The i ordinary expenditures of tho fiscal year ending 1 June 30, 1H88, were $25916S8,958.87, leaving a , surplus of $119,612.116.09. The deerease in these sxpetditures as compared with the fiscal year S ended June 30, 1887, was 88,278,280.:). uotwithstand !ng payment of more thau 85,fl0.000 for pensions ín excess of what was paid for tLiat : purpcse in the latter mentioned ■ year. The revenues of the government , forths year ending June 30, 1880, aeoenalned for the quarter ended Sept. 30. 1888, and esti] mated for the remainder of the time, amount to 8877,000,00.), and the actual and estimated ordiuary expenditures for the same year are $273,000,00i, leaving au estimated surplus of íl"4,000,000. The estimated receipts for the year ending June 30, 1890, are $377,0,iO,uOO, and the estiinated ordinary expenditures for tbe same time are $275,; 67, 488. 3), showiug a surplus of $101,282,611.66. The foregoiug statements of surplus do not take into accouut the sum necessary to be expended to meet the requirements of the siukiiig rund act, amouoting to more than $47,000.000 annually. The cost of collecting customs revenues for the last fiscal year was 2.44 per cent. ; for the year 1885 it was 3.77 per cent. The excess of internat revenue taxes co.lected during the last fiscal year over those eollected fot the year euded June 30, 1887, was $6,489,174.28, and the cost of collecting the revenue decrased from 3.4 per cent, iu 1887 to less than 3.2 per cent, for the last year. The tax eollected on oleomargarine was $723,948.04 for the year ending June 30, 1887, aad $861,139.88 for the f otlowing year. [Referring to the purehase of bonds which has been going since April last the president gives the total arnount and cost, and says the saving to the goverument represented by rbe transactions aggregates about $27,16.5,000. He then proceeds:] At flrst sight this would seem to be a profltable and sensible transaction oo the part of the government, but assuggested by the secretary oftha treasury, the surplus thus expended for the purchase of ■ ond-s was money drawn from the people in excess of any actual need of the government and was so expended rather than allow it to remaiü idle in the treasury. If this surplus underthe operation of just and equitable laws had been left in the hands of the people it would have been wonh in their buLness at least 6 per cent. per annuni. Dedueting from the amount of interest upon the principal and prennum.upon the bonds, and the time they had to run, at the rate of 6 per cent., the saving of 2 per cent. made for the people y the purchase c 'f such bonds, the loss wo j ld aiipe.ir to be $55,760,000. This caleuliition would seem to demónstrate that if exce-.sive and unnecessary taxatiou is continued, and the goverame. t is forced to pursue this policy of purchasing its own bonds at the premiums which it will be necessary to pay, the loss to the people wiil be hundreds of millious of dolíais. Since the purcha-e of bonds was undertaken, as mentioned, nearly all tliat have been offered were at last accepted. It has been made quite appareut that the government was in danger of being subjected to combinatious to raise their prices, as appears by the instance cited by the secretary of the offering of bonds of the par value of only $826.000 so often that the aggregate of sums demanded for their purchase amounted to more than $19.700.000. Notwithstanding the large sums paid out in the imrchase of bonds, the surplus iu the treasury on the 30th day of November, 1888, was $32,014,610.01, after deducting $20,000,000 just drawn out for the payment of pensions. The secretary of the treasury's recommendatious, the most important of vrhlch is that the coinage of silver dollars be suspended, are indorsed. Aiso reports of the war office and the operations of supplying heavy ordnance, etc, are summarized, and the secretarys recommendations adopted and urged upou congress. Reference is made to the imprisoued Apaches, and the report from them is stated to besatisiactory, but he opposes return - ing them to their reservation. The death of Gen. Sheridan in August last was a national affhetion. The army thon lost the graudest of its chiefs. The country lost a brave and experieuced soldier, a wise and discreet counselior and a modest and sensible inau. Thosö who in any mannor came wlttiin the range of nis personal associatiou will never fail to pay deserved and williug hoinage to his greatness aud the glory of hi.s career; but they wiil cherish with more tender seusibility the loving memory of his simple, genereus and considérate nature. The report of the secretary of the navy demonstat es very intelligent management in that important department and discloses the most sat ïsfactory progress in the work of reconstructing tne navy made during the past year. Of the ships in conree of eonstruction, live, viz. the Charleston. Ualtimore, Yorktown, Vesuvius aud the Petivl, have 111 that time been launched and are r tpidly approaching cmnpletion; aud in addition to the above the Philadelphia, the San Francisco, the NYwark, the Bennington, the Concord and the Herreshoff torpedo boat are all under contract for delivery to the department during the next year. The progress alreudy made aud beiug made gives good ground for the expectatiou that these eleven vessels will be ineorporated as a part of the Ainericau navy wiLhin the next twelve months. The report shows that notwithstanding the large expenditures for new construction and the aduitional labor they involve, the total ordinarv or current expenditure of tue department for the three years ending June 30, 1888, are less thau by more than 20 per cent. than such expenditures for the three years euding June 30. 1884 The message then takes up the postmaster geüeral's report, and after goiüg over the figures says: The mureasefor correspondence wit" foreign countries during tbe p st three years is gratifying, and is espeoially notable and exceptional with Central and South Amerieau statea and with Mexico. As the greater part of mail matter exehatiired with these countiies is commercial in its charaeter, this iucrease is evidence of the improved business relations with them. The practical operation of the pa cel post conventions, so far as negotiated, has served to fulfill the most favorable predictious a- to their beoeflts. Iu January last a general postal conventiou was negotiated with the Dominion of Canada, which went into operation on March 1, and which practi ally makes oue postal territory of the Untted States and Canada. Under it merchandise pareéis may now be transmitted through the mails at fourth class rats of postage. A bilí, proposed by the postmuster general, was introducid it the last sessiou of tbe congress, by whioh a uniform standdrd in the amount of gruss i eceipts would fix the right of a community t. a public building to be erected by he govt-rnment for pt stofllce purposes. It was deniuustratcd that, aside from the public convenieuce and the (.iromotion of harmony among i itizons invariattly disturbed by chane of leasingsand of site, it was a nu-asure of the highest economy aud of --ound business judgni nt. It was founJ that the governmeut was paying in rents at the rate of from 7 to 10 per ch nt. per anuum on what the cost of such public buildings would be. A very great advantageresulting from such a law would be the preventioa of aluige nmnber of bilis constantly iutroduced for the erection of public buildings at places, and invoïving expenuiture, not justified by public necessity. I trust that this measure will be come a law at the present ï-ession of congress. Of the total number of ix)stmasters 51,874 are cf the fourth class. These, of course, receive no allowauces whatever for exptinses in the service, and their coinpensation is fixed by percentages on receipts at theír respective ofüees. This rate of compensado a may have beeu and probably was, at some time, just; but the standard has remaiued uüchauged through the several tions in the rates of postage. fcjuch reductions have nece-sarily cut down the compensation of these officials, while it undoubtedly Locreased the busmess perforined by them. Simple justice requires attention to this subject, to the end that fourtn class postmasters may receive at least an equivalent to that which the law itself Ilxiug the rate intended for them. Auother class of postal employés whose conditioo seenis to demand It-gislation ís that of clerlts in pos-toflfices, and I cali special attention to the repeated recommendations of the postmaster general for their classiftcation. Proper legislatioii of this character for the relief of carriers to the free-uelivery service has Deen frequent. Provisión is made for their promotion; for substitutos for them üu vaeation, for substitutos for holi ays and Q&tiUog their hours of labor. Beven miilion dollars has been appropriated for the current year to pro vide for them, though the total rmniber of offices where they are employed is but 3ö8 for the p;ust iis-al year,with auestiinated iticrease for the curre;it year of but 40, while the total appropriation forall clerks in offices throughout the Uuitd staten is $5,150,000. The legislution affecting the relations of the governrneuL wiLh raiiroads is in need of revisión. while for the most part the railroad companies throogbOUt tin; country have cordially co-operated witli the pustofflee department in reudering excellent serviré, yet uuder the law as it stands, while the eompensation to them for carrving the mail is limited and jf'.ulated, and althouffb ( roads are made pos o-ds by law, there is no authority replied nu .vhere to compel the owner of a railroad to take and carry the United Otates mail. The unly alternativa provided ly act of congress [o case of reftisal is for the postmaster general to eend mail forward by pony express. This is but an illustration of Ill-flttiog legislation reasonable and proper at the time of its enactment, but long siuco outgrown aud requirin readjustment. In the report of the secretary of the interior, which will be laid before you, the condiüon of the varióos branches of our domestio atïairs connected with that department and ts operations during the past year are fully exhibited. But a brief refereuce to some of the Bubjects discussed in this able aml inUiresting report can here be made, but I commend the entire report to the attention of the congress, aud trust that the sensible and valuable recommendations it contains wilt secure careful constderatiun. I can not too strenuou.sly insist upou the iiuportance of proper meftBurea to inaure a right dispositioa of our public lands. uot cnly as a matter of present justice, but in forecast of the consequences to future generatious. Tl .e broad. rich acres of our agricultural plains have been long preserved by nature to beeome her untrammeled gift to people civüúed and free, upou which should rest, in well dlstributed owner-.hip, tlie numerous homes of enlightened, equal, and fraternal eitizeus. Theycameto uational poaséasion with the waring example iu our eyes of the tiutail of iniq litios in lamled proprietorship, which other couatries permitted and stiü suffer. We have no excuse fcr the violation of principies cogently taughs by reason and axampie, nor for the alluwanee of pretexte which have so etimes exposed our land to colossal greed. Laws which open the door to fraudulent acquisition, or admimst rationa which permita favur to rapacious seizure by a favored few of expanded areas that many should enjoy ure aoomory to offenses agaiust our national welfare and humanity which are not to be too severely condemued or punlsbed. It is gratifying to know that something has been done at last to redress the injuries to people and check tha perilous tendency of the reckless waste of uational domain that over 80,000,000 acres have been wrested f rom Ilegal usurpation, improvidant graiits and fraudulent entries and claims to be taken for the huniestead of honest industry- although iess than the greater areas thus unjustly lost- must afford a profound gratiiieatiou to right-feeling citi.ens, as it is a recompense for the labors and struggles of the recovery. Ourdear experlence ought sufficieutly to urge the speedy enactment of measure of legislation which wiü confine the future dispoMtion of our remainiug agricultural lands to the unes of actual husbaudrv and geuiiine homes. Nor should our vast tracts of so-called desert lauds be yielued up io the monopoly of corporations or graspiug individuals, as appeai"s to be much the teudency under the existing statute. These lauds require but the Bupply of water to become fertile and productive. It is a problem of great moment how most wtsely for the public good that factor shall be furnished. I can n t but think it perilous to suffer either these lands or the sources of their irrigation to faü into the hands of monopolies, which oy such means may exercise lordship over areas dependeut on their treatmeut for productiveness. Already steps have been taken to secure accurate and M'ientinc informatiou of the conditions which is the prime basis of intelligent action. Until this shall be gained the course of wisdom appears clearly to he in a suspension of further dis posal whiuh only promises to créate rights autagonistic to the common interest. No harm eau foliow this cautiouary couduct. The land wilt remain and the public good presents no demand for hasty disp; ssession of nacional ownershiD and control. I commend also the recommendations that appropriate measures be taken to complete the adjustment of the various grants made to the states tor internal improvemente, and of swarop aud overflowed lands, as well as to adjudícate and finally determine the validity and exteutof the numerous private land claims. All these are elements of great injustice and peril to the settltrs uponthe Juualities affected, and now that their existence is more pressing, we nhould fix aa soon aíí possible their bounds and terminaw the threats of trouble wliich nrise trom unoertainty. The condition ot our lndian population coutinues to improve, and the proofs nmltiply that the transt'onning change so much to b desired which shall substitute for barbarism eulighten meut aud civüizing education is iu favorable progress. Üur relations with these peopïe during the year have been disturb d by no serious disorders, but rather marked by a better reaüzation of their true Interests and mcreasiug coufidence and goodwill. These conditions testify to the value of the ïiigher tone of consid ration and humanity which has governed the later methods of dealing with them, and commend its continued observance. AUotments in severaity have been made on some reservations, until all those entitled to land thereon have had their shares assigned, and the work is still continued. In directing the execution of thi.s duty I have not aiined so iniich at rapid dispatch as To secure juat and fair arrangements which shall b. m conduce to the objecta of the law by producías atidf&ction with the resuïts of the allotmeuts made. No measure of general effect has been entered on from which more may be falriy hoped, if it shall b. di-creetly administered. It pro ff e rs opjjortunity and inducemenc to tbat inüeiiendeüce of spirit and life which the Indian ptuuliarily needs, while at the same timo the stability or title affords ecurity against the risks his inexperience of affairs or weakuess of character may exposé him to in deolln with otht-rs. Whenever begun upon any reservation'it should he made complete, so that a 1 are brought to the same conditiou, and as soon as po ib!e community in lands should cease by opening such as reniaiu unallotted to settlement. Fami ■ iarity with the ways of industries and successful farmers will perhaps add a healthy emulatiou which will both iustructand stim late. But no agency for the amelioration of this people appears to me so promising as the extensión, urged by the secretary, of suca complete facillties of education as shall at the enrliest possible day embrace all teachable Indian youths of both sexes, and retain them wtth a kindly and beneflcent hold until their characters are formed and their faculties and dispositions traioed to the surepursuit of some form of useful industry. Capacity of the Indian no louger needs de monstration. It is established; it remaius to make the most of it, and when that shall be done the curse w. 1 be lifted, the Iudian race saved, and the sin of their oppression redeemed. The time of its accomplishmeot dependa upon the spirit and jtisrice with which it shall be prosecuted. It I cannot be too soon for the Indian nor for the interasfea and good name of the natiou. The average attendance of Indian schoos increased over 900 duriug the year and the total emollmeut reached 15, 12. The cost of maintenani-e was not müterially raisei. " je number of teachable nd ian youth is now estimaterf at 40,000, or nearlv three times the enrullment of the schools. It is beüeved the obstacles in th way of instructing all aro surmouutable, and that ttie necessary expnditure wouid be a measure of economy. The Pioux tribes on the great reservation of Dakota refused to assent to the act passcd by congress at ita last session for opeuiug a portion of thrir lands to setilement, uotwithstitnding modiflcatioii of the terms was SUggested which met most of their objectloos. Their demaud is for imme liate payment of the full price of $1.J5 per acie for the entire body of land, the oceupaucy of which thev areaskedto lennqmsti. The manner of Bubmiasion insured their fair undei standing of tin? la v, and their aetion was uudoubtedly as thoroughly intelligent as their capaeity admitU'd. lt, is at, least grut if y ing that no reproach of overreacbing can in any mannerbd broughtagainst thegOTernmeur, however advisable the favora ie ctmipletion of the uegotiation may have been esteemed. I concur in the suggestion of the eecretary regaiding the Turtle Aiountain Indiana, the two reservations in California, and the Crees. Theysboul 1 in iuy opinión receive tmmediate attent on. The nuuiüer of pensiouers added to the roll daring the fiscal year ended June 30, 1888, is GO, 25, aud an íucreaüe of pensions was gnutted in 45,71 ü cases. The nanies of 5,7-Ü) ensioners weredropped from the rolls duri ig the year fo various uauses, und ou thu close of the year the number of persous of all classes receiving pen síods was 40,557. Of these there were ÖOtj sur vivors of the war of 181:2; lt),7tí.% widows of those who ser ved in that war: lti,0G0 soldiers of the Mexican war, and 5, 104 widows of said soldiers. One hundred aud two different rates of peusions are paid to these beneficiarles, rangiug from $2 to $410.66 per month. The amount paid for pensions durtng th fiscal year was $7rt,775,86i.9, being an lacrease over the preceding year of S5.308.380 2'. The expenses attending the maintenance anti ope atiou of the pension bureau during that period was $,.',524.67, making the entiFfi ex penditures of the bureau SSoH.iSü 57, being ï% per cent. of the total expeuditures of the goverument duriug the year. I am thoroughly convinced that our general pension laws shoiUd be revised and adjusted to meet as far as possible, in the light of our experience all meritonoos cases. Tlfö fact that 102 different rates of pensions are paid can not in my opinión be made consistent with justice to the pensioners or to the overnmeut and the numerou private pension bilis that are pns:d predicated upon the imperfectiou of general Iaws, while they increase in many cases existing inequalily and injustice lend aiditional force x the reeommeadatioa for the revisión of the general laws on this subject. The laxity of ideas prevailing among alarge numir of ui people regarding pensions is becoming every day more marked. Ttit principios upon which they sliould be granted are in danger of being altngt'tlier igaored. and al eudy pensions are often elaimed becaufia the appliear.t-; áreas much entitled a other successful applicants, rather than npon any disubility reasonably attribuiable t militair service. If the esta b lis hment of various precedeiits be continued, the grautinjí of pensions bo oot dirorced frorn pnftisau and other imwoi thy p.ud irrelevant eonsiderationa, and if the honorable name of veteran unfairly becomes by these meaos but another term for one who constantly clamors forthe aid of the governinent, tliere is danser tlmt in jury win bt! done to tha fame and patrfottsm of many whom our citizeus all dellght 10 houor, and thata prejudice v iil } arttused uujust to mei iturious applii'aiit.s fnr pensions. ThedepartNi n iiau'nculture hasconfciried,with a good oieasure of success, its efforte to develop the processen, enlarge the reults and aument the profïts of American husbadry. It has colIected aud dlstrlbutod practical iufunnation iutroduced aud tesied new plants. cliecked the spreadin of eontaiuuy disease of farra animáis, resisted the advaace of uoxious iusects and daBtructive fungus growtha aud sought to secure to agricultural labor the highest reward of effort and the fullest immuiiUy f rom losa. lts records of the year show that tbe BAason of 1888, hus been one of medium production. A geneiuus supply of the detnauds of cousuinptiou has buo ssured, and a surplus for exportación, madera1 in certain producto, and bountiful lu others, vvill prove a beiiefaction a:ik'1 to b lyer aud grower Four years ago it was fuiind that the z est cattk) iudustry of the country was dnaaagered, and those engaged in it were alarmed at the rapld ez tensión of the European luna plague of pleur pneumonía. Serious outbreaksexisted in Illinois Missouri and KrMitncky aad in Teunessee auiniüip affected were held in quarantine. Five coiinti in New Yoi k aud iiom oue to four eounties bi each of the slates of New Jersey, Pennsylvania, Delaware aud Maryland were aliiiost euually af fected. With this great danger upon us flnd with tio contagión already in the channels of cominero with the enormoi direct aud indirect loses aiready being cautil by it, and when only prompt and energetic actiuu could be successful, ther were in none of those states any laws authoriziajr this department to eradieate the rnalady or giï' ing the state officials power to co-operate with It , for this pui pose. The department even lackec i both the requblte appropriation and authoritr. By securing state co-operation in eonnectioi with authority from congress, the woric f eradcatión has teen pressed suecessfully and t&w dreaded tlisea6 has been extirpated from tjhe western states and aLso from the eastern state with the exeeption of a few restricted arean which are stiü under supervisión. The danger has thus been removed and trade and eommerce have been treed from the vexatiouti state restrictious which were deemed nacessary for a time. DuriiiK the first 'our years the procesa of dlff ;i fiion, as aj)plied to the manufactuce of sugar from sorghum anü sugar caae has been introduced into this country and fully perfected by the experiments carried on by the (leeartiaent of i agrieulture. This process is now universalty considered to be the best, económica! one, and it is through it that tho sorghum-sugar industry has been establi&heii upon a flrm basis and the road to ito future auccess opeued. The adoptioo of this diffasion procesa is also extending in Louisiana and other sugar parts of the country, and -Ul doubtlessoon be the only method mployed for the extraction of sugar from the cañe. An exhaustiva study has also within the same pe. od been undertaken of the subject of food adulteration and ' the best analytioal methods for detecting it. A part of the result of this work has already been published by the department, which with the matter in course of preparatiou wilt make th most complete treatise on that subject , that has ever been published üi any countrj'. The depai-tm nt hks a progreaaive development. It would combine the diseoveriew ' of science with the econo'Mies and amelioratiofi I of rural practice. A supervisión of the endowed experimental station system recently providtx for, is a proper function of the department, and. now in operation. This supervisión is very important and sli uld be wisely and vigilantly di rected to the end, that the pecuuiary aid of the 1 government in favor of intelligent agricultura should be so applied as to result in the general good and to the benefit of all our people, thus ïostifying the appropriation made frin the pub lic treasury. The adjustment of the relations between the fovermni-nt and the railroad companies which ave recei ved land grautsand the guarauty o th ■ public credit in aid of the construction of their roads should receive early attention. The report uf a majority of the commissioners appointed to examine the affaire and indeotednesí of these road-, in which they favor an ztensioti of the time for the payment of such ludebtediies.iu at least one case where the Corporation appoars to be able to comply with well guaixled and Act terms of such extensión and the reiuforcemt-at of their opinión by gentlemen of undoubted business judguient and experieuce appointed to protect the iaterests of the government as directora of said corporation may well lead to the belief that sueh an extensión would be to the advantage o thegovernment. The subject should be treatel as business pnipositiou with a view to a fina' realization of its indebtedness by the go ver runen t : rather than as a questioii to oe decided upofi i prejudiee or by way of punidhmeot for previo u wrong doing. The report of the commissioners of the District of Columbia, with it accompanjfeig documenta, give in detail the operations of the several departmenU of the district rovernment and furnish evidt'iiw thut f.o .'uianeial afTairs of tbe district are at prefteni i'i ich ..ais;actory condition as te justif'y the commissloñens íq submittiug to the coügrt?ss eetL vaten for desirable aod needed Im; provemenw. The comnUBatooera recommead certain logisltlon wnicti, In Ubftir opiaion, isnee; essary to mUauee the intere.tsof the district. J invite youi HpeciaJ attent ion to theii requst for i such legislati:i as n i!i i-uabiu the . rom i issioners without delay to coJlect. dltrott an 1 properly arrange the lawfl by wluch the diatrict ís governed and which aienow embracd i:i several oollotloDS, mak ing tiiuui availablu ouly witb great difíiculty und Uu r. Th BugMtAooji they inake touoblög desli ab e üinendmsBta te the laws relati.ig t o liceu.su granted for carrying on the retail traffic in spiriuious liquors, to the obsrvanoe of 8uiday, to the proper assessmenfe and collection of taxes, to the speedy punishment of Ealnor offduden and to the management and control of the reformatory and charitable institutions supported by congressional appropria tions, are eoinmeuded to care and consiueratioii. I agaiu cal! atteution to the present ïence and the danger to life and proper ty atteoding the operación of steam railroads through and and across th public streets and roads of tha District. The propnety of such legisiation as will proper ly guard the use of these railroadr and better secure tiie euaveuience and safety of i'iti I aens is manifest. In couelusion the president saya: The consciousness that I have present ed yo but an imperfect statement of the coüdition o our country iiud its wants, occasi()ns na fear that j anything omiLted is not known autl appreciated by this coagreat, npon wiiom rests the respunsibility of Intelligent legisiation iu behalf of a great nation and a confldiug people. As public aerranta we shall do our diity vrell if we coustautly guard the rectitude of jur intenti'His, maiiitaiu unsulhed our love of country, ami with uuseltish puruose strive for the public good. Washington, D. C, Dec. 3, 1888.