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President[ Ulysses S. Grant

         Date[ December 6, 1869


To the Senate and House of Representatives:


In coming before you for the first time as Chief Magistrate of this great

nation, it is with gratitude to the Giver of All Good for the many benefits

we enjoy. We are blessed with peace at home, and are without entangling

alliances abroad to forebode trouble; with a territory unsurpassed in

fertility, of an area equal to the abundant support of 500,000,000 people,

and abounding in every variety of useful mineral in quantity sufficient to

supply the world for generations; with exuberant crops; with a variety of

climate adapted to the production of every species of earth's riches and

suited to the habits, tastes, and requirements of every living thing; with

a population of 40,000,000 free people, all speaking one language; with

facilities for every mortal to acquire an education; with institutions

closing to none the avenues to fame or any blessing of fortune that may be

coveted; with freedom of the pulpit, the press, and the school; with a

revenue flowing into the National Treasury beyond the requirements of the

Government. Happily, harmony is being rapidly restored within our own

borders. Manufactures hitherto unknown in our country are springing up in

all sections, producing a degree of national independence unequaled by that

of any other power.


These blessings and countless others are intrusted to your care and mine

for safe-keeping for the brief period of our tenure of office. In a short

time we must, each of us, return to the ranks of the people, who have

conferred upon us our honors, and account to them for our stewardship. I

earnestly desire that neither you nor I may be condemned by a free and

enlightened constituency nor by our own consciences.


Emerging from a rebellion of gigantic magnitude, aided, as it was, by the

sympathies and assistance of nations with which we were at peace, eleven

States of the Union were, four years ago, left without legal State

governments. A national debt had been contracted; American commerce was

almost driven from the seas; the industry of one-half of the country had

been taken from the control of the capitalist and placed where all labor

rightfully belongs--in the keeping of the laborer. The work of restoring

State governments loyal to the Union, of protecting and fostering free

labor, and providing means for paying the interest on the public debt has

received ample attention from Congress. Although your efforts have not met

with the success in all particulars that might have been desired, yet on

the whole they have been more successful than could have been reasonably

anticipated.


Seven States which passed ordinances of secession have been fully restored

to their places in the Union. The eighth (Georgia) held an election at

which she ratified her constitution, republican in form, elected a

governor, Members of Congress, a State legislature, and all other officers

required. The governor was duly installed, and the legislature met and

performed all the acts then required of them by the reconstruction acts of

Congress. Subsequently, however, in violation of the constitution which

they had just ratified (as since decided by the supreme court of the

State), they unseated the colored members of the legislature and admitted

to seats some members who are disqualified by the third clause of the

fourteenth amendment to the Constitution--an article which they themselves

had contributed to ratify. Under these circumstances I would submit to you

whether it would not be wise, without delay, to enact a law authorizing the

governor of Georgia to convene the members originally elected to the

legislature, requiring each member to take the oath prescribed by the

reconstruction acts, and none to be admitted who are ineligible under the

third clause of the fourteenth amendment.


The freedmen, under the protection which they have received, are making

rapid progress in learning, and no complaints are heard of lack of industry

on their part where they receive fair remuneration for their labor. The

means provided for paying the interest on the public debt, with all other

expenses of Government, are more than ample. The loss of our commerce is

the only result of the late rebellion which has not received sufficient

attention from you. To this subject I call your earnest attention. I will

not now suggest plans by which this object may be effected, but will, if

necessary, make it the subject of a special message during the session of

Congress.


At the March term Congress by joint resolution authorized the Executive to

order elections in the States of Virginia, Mississippi, and Texas, to

submit to them the constitutions which each had previously, in convention,

framed, and submit the constitutions, either entire or in separate parts,

to be voted upon, at the discretion of the Executive. Under this authority

elections were called. In Virginia the election took place on the 6th of

July, 1869. The governor and lieutenant-governor elected have been

installed. The legislature met and did all required by this resolution and

by all the reconstruction acts of Congress, and abstained from all doubtful

authority. I recommend that her Senators and Representatives be promptly

admitted to their seats, and that the State be fully restored to its place

in the family of States. Elections were called in Mississippi and Texas, to

commence on the 30th of November, 1869, and to last two days in Mississippi

and four days in Texas. The elections have taken place, but the result is

not known. It is to be hoped that the acts of the legislatures of these

States, when they meet, will be such as to receive your approval, and thus

close the work of reconstruction.


Among the evils growing out of the rebellion, and not yet referred to, is

that of an irredeemable currency. It is an evil which I hope will receive

your most earnest attention. It is a duty, and one of the highest duties,

of Government to secure to the citizen a medium of exchange of fixed,

unvarying value. This implies a return to a specie basis, and no substitute

for it can be devised. It should be commenced now and reached at the

earliest practicable moment consistent with a fair regard to the interests

of the debtor class. Immediate resumption, if practicable, would not be

desirable. It would compel the debtor class to pay, beyond their contracts,

the premium on gold at the date of their purchase and would bring

bankruptcy and ruin to thousands. Fluctuation, however, in the paper value

of the measure of all values (gold) is detrimental to the interests of

trade. It makes the man of business an involuntary gambler, for in all

sales where future payment is to be made both parties speculate as to what

will be the value of the currency to be paid and received. I earnestly

recommend to you, then, such legislation as will insure a gradual return to

specie payments and put an immediate stop to fluctuations in the value of

currency.


The methods to secure the former of these results are as numerous as are

the speculators on political economy. To secure the latter I see but one

way, and that is to authorize the Treasury to redeem its own paper, at a

fixed price, whenever presented, and to withhold from circulation all

currency so redeemed until sold again for gold.


The vast resources of the nation, both developed and undeveloped, ought to

make our credit the best on earth. With a less burden of taxation than the

citizen has endured for six years past, the entire public debt could be

paid in ten years. But it is not desirable that the people should be taxed

to pay it in that time. Year by year the ability to pay increases in a

rapid ratio. But the burden of interest ought to be reduced as rapidly as

can be done without the violation of contract. The public debt is

represented in great part by bonds having from five to twenty and from ten

to forty years to run, bearing interest at the rate of 6 per cent and 5 per

cent, respectively. It is optional with the Government to pay these bonds

at any period after the expiration of the least time mentioned upon their

face. The time has already expired when a great part of them may be taken

up, and is rapidly approaching when all may be. It is believed that all

which are now due may be replaced by bonds bearing a rate of interest not

exceeding 4 1/2 per cent, and as rapidly as the remainder become due that

they may be replaced in the same way. To accomplish this it may be

necessary to authorize the interest to be paid at either of three or four

of the money centers of Europe, or by any assistant treasurer of the United

States, at the option of the holder of the bond. I suggest this subject for

the consideration of Congress, and also, simultaneously with this, the

propriety of redeeming our currency, as before suggested, at its market

value at the time the law goes into effect, increasing the rate at which

currency shall be bought and sold from day to day or week to week, at the

same rate of interest as Government pays upon its bonds.


The subjects of tariff and internal taxation will necessarily receive your

attention. The revenues of the country are greater than the requirements,

and may with safety be reduced. But as the funding of the debt in a 4 or a

4 1/2 per cent loan would reduce annual current expenses largely, thus,

after funding, justifying a greater reduction of taxation than would be now

expedient, I suggest postponement of this question until the next meeting

of Congress.


It may be advisable to modify taxation and tariff in instances where unjust

or burdensome discriminations are made by the present laws, but a general

revision of the laws regulating this subject I recommend the postponement

of for the present. I also suggest the renewal of the tax on incomes, but

at a reduced rate, say of 3 per cent, and this tax to expire in three

years.


With the funding of the national debt, as here suggested, I feel safe in

saying that taxes and the revenue from imports may be reduced safely from

sixty to eighty millions per annum at once, and may be still further

reduced from year to year, as the resources of the country are developed.


The report of the Secretary of the Treasury shows the receipts of the

Government for the fiscal year ending June 30, 1869, to be $370,943,747,

and the expenditures, including interest, bounties, etc., to be

$321,490,597. The estimates for the ensuing year are more favorable to the

Government, and will no doubt show a much larger decrease of the public

debt.


The receipts in the Treasury beyond expenditures have exceeded the amount

necessary to place to the credit of the sinking fund, as provided by law.

To lock up the surplus in the Treasury and withhold it from circulation

would lead to such a contraction of the currency as to cripple trade and

seriously affect the prosperity of the country. Under these circumstances

the Secretary of the Treasury and myself heartily concurred in the

propriety of using all the surplus currency in the Treasury in the purchase

of Government bonds, thus reducing the interest-bearing indebtedness of the

country, and of submitting to Congress the question of the disposition to

be made of the bonds so purchased. The bonds now held by the Treasury

amount to about seventy-five millions, including those belonging to the

sinking fund. I recommend that the whole be placed to the credit of the

sinking fund.


Your attention is respectfully invited to the recommendations of the

Secretary of the Treasury for the creation of the office of commissioner of

customs revenue; for the increase of salaries to certain classes of

officials; the substitution of increased national-bank circulation to

replace the outstanding 3 per cent certificates; and most especially to his

recommendation for the repeal of laws allowing shares of fines, penalties,

forfeitures, etc., to officers of the Government or to informers.


The office of Commissioner of Internal Revenue is one of the most arduous

and responsible under the Government. It falls but little, if any, short of

a Cabinet position in its importance and responsibilities. I would ask for

it, therefore, such legislation as in your judgment will place the office

upon a footing of dignity commensurate with its importance and with the

character and qualifications of the class of men required to fill it

properly.


As the United States is the freest of all nations, so, too, its people

sympathize with all people struggling for liberty and self-government; but

while so sympathizing it is due to our honor that we should abstain from

enforcing our views upon unwilling nations and from taking an interested

part, without invitation, in the quarrels between different nations or

between governments and their subjects. Our course should always be in

conformity with strict justice and law, international and local. Such has

been the policy of the Administration in dealing with these questions. For

more than a year a valuable province of Spain, and a near neighbor of ours,

in whom all our people can not but feel a deep interest, has been

struggling for independence and freedom. The people and Government of the

United States entertain the same warm feelings and sympathies for the

people of Cuba in their pending struggle that they manifested throughout

the previous struggles between Spain and her former colonies in behalf of

the latter. But the contest has at no time assumed the conditions which

amount to a war in the sense of international law, or which would show the

existence of a de facto political organization of the insurgents sufficient

to justify a recognition of belligerency.


The principle is maintained, however, that this nation is its own judge

when to accord the rights of belligerency, either to a people struggling to

free themselves from a government they believe to be oppressive or to

independent nations at war with each other.


The United States have no disposition to interfere with the existing

relations of Spain to her colonial possessions on this continent. They

believe that in due time Spain and other European powers will find their

interest in terminating those relations and establishing their present

dependencies as independent powers--members of the family of nations. These

dependencies are no longer regarded as subject to transfer from one

European power to another. When the present relation of colonies ceases,

they are to become independent powers, exercising the right of choice and

of self-control in the determination of their future condition and

relations with other powers.


The United States, in order to put a stop to bloodshed in Cuba, and in the

interest of a neighboring people, proposed their good offices to bring the

existing contest to a termination. The offer, not being accepted by Spain

on a basis which we believed could be received by Cuba, was withdrawn. It

is hoped that the good offices of the United States may yet prove

advantageous for the settlement of this unhappy strife. Meanwhile a number

of illegal expeditions against Cuba have been broken up. It has been the

endeavor of the Administration to execute the neutrality laws in good

faith, no matter how unpleasant the task, made so by the sufferings we have

endured from lack of like good faith toward us by other nations.


On the 26th of March last the United States schooner Lizzie Major was

arrested on the high seas by a Spanish frigate, and two passengers taken

from it and carried as prisoners to Cuba. Representations of these facts

were made to the Spanish Government as soon as official information of them

reached Washington. The two passengers were set at liberty, and the Spanish

Government assured the United States that the captain of the frigate in

making the capture had acted without law, that he had been reprimanded for

the irregularity of his conduct, and that the Spanish authorities in Cuba

would not sanction any act that could violate the rights or treat with

disrespect the sovereignty of this nation.


The question of the seizure of the brig Mary Lowell at one of the Bahama

Islands by Spanish authorities is now the subject of correspondence between

this Government and those of Spain and Great Britain.


The Captain-General of Cuba about May last issued a proclamation

authorizing search to be made of vessels on the high seas. Immediate

remonstrance was made against this, whereupon the Captain-General issued a

new proclamation limiting the right of search to vessels of the United

States so far as authorized under the treaty of 1795. This proclamation,

however, was immediately withdrawn.


I have always felt that the most intimate relations should be cultivated

between the Republic of the United States and all independent nations on

this continent. It may be well worth considering whether new treaties

between us and them may not be profitably entered into, to secure more

intimate relations--friendly, commercial, and otherwise.


The subject of an interoceanic canal to connect the Atlantic and Pacific

oceans through the Isthmus of Darien is one in which commerce is greatly

interested. Instructions have been given to our minister to the Republic of

the United States of Colombia to endeavor to obtain authority for a survey

by this Government, in order to determine the practicability of such an

undertaking, and a charter for the right of way to build, by private

enterprise, such a work, if the survey proves it to be practicable.


In order to comply with the agreement of the United States as to a mixed

commission at Lima for the adjustment of claims, it became necessary to

send a commissioner and secretary to Lima in August last. No appropriation

having been made by Congress for this purpose, it is now asked that one be

made covering the past and future expenses of the commission.


The good offices of the United States to bring about a peace between Spain

and the South American Republics with which she is at war having been

accepted by Spain, Peru, and Chile, a congress has been invited to be held

in Washington during the present winter.


A grant has been given to Europeans of an exclusive right of transit over

the territory of Nicaragua, to which Costa Rico has given its assent,

which, it is alleged, conflicts with vested rights of citizens of the

United States. The Department of State has now this subject under

consideration.


The minister of Peru having made representations that there was a state of

war between Peru and Spain, and that Spain was constructing, in and near

New York, thirty gunboats, which might be used by Spain in such a way as to

relieve the naval force at Cuba, so as to operate against Peru, orders were

given to prevent their departure. No further steps having been taken by the

representative of the Peruvian Government to prevent the departure of these

vessels, and I not feeling authorized to detain the property of a nation

with which we are at peace on a mere Executive order, the matter has been

referred to the courts to decide.


The conduct of the war between the allies and the Republic of Paraguay has

made the intercourse with that country so difficult that it has been deemed

advisable to withdraw our representative from there.


Toward the close of the last Administration a convention was signed at

London for the settlement of all outstanding claims between Great Britain

and the United States, which failed to receive the advice and consent of

the Senate to its ratification. The time and the circumstances attending

the negotiation of that treaty were unfavorable to its acceptance by the

people of the United States, and its provisions were wholly inadequate for

the settlement of the grave wrongs that had been sustained by this

Government, as well as by its citizens. The injuries resulting to the

United States by reason of the course adopted by Great Britain during our

late civil war--in the increased rates of insurance; in the diminution of

exports and imports, and other obstructions to domestic industry and

production; in its effect upon the foreign commerce of the country; in the

decrease and transfer to Great Britain of our commercial marine; in the

prolongation of the war and the increased cost (both in treasure and in

lives) of its suppression could not be adjusted and satisfied as ordinary

commercial claims, which continually arise between commercial nations; and

yet the convention treated them simply as such ordinary claims, from which

they differ more widely in the gravity of their character than in the

magnitude of their amount, great even as is that difference. Not a word was

found in the treaty, and not an inference could be drawn from it, to remove

the sense of the unfriendliness of the course of Great Britain in our

struggle for existence, which had so deeply and universally impressed

itself upon the people of this country.


Believing that a convention thus misconceived in its scope and inadequate

in its provisions would not have produced the hearty, cordial settlement of

pending questions, which alone is consistent with the relations which I

desire to have firmly established between the United States and Great

Britain, I regarded the action of the Senate in rejecting the treaty to

have been wisely taken in the interest of peace and as a necessary step in

the direction of a perfect and cordial friendship between the two

countries. A sensitive people, conscious of their power, are more at ease

under a great wrong wholly unatoned than under the restraint of a

settlement which satisfies neither their ideas of justice nor their grave

sense of the grievance they have sustained. The rejection of the treaty was

followed by a state of public feeling on both sides which I thought not

favorable to an immediate attempt at renewed negotiations. I accordingly so

instructed the minister of the United States to Great Britain, and found

that my views in this regard were shared by Her Majesty's ministers. I hope

that the time may soon arrive when the two Governments can approach the

solution of this momentous question with an appreciation of what is due to

the rights, dignity, and honor of each, and with the determination not only

to remove the causes of complaint in the past, but to lay the foundation of

a broad principle of public law which will prevent future differences and

tend to firm and continued peace and friendship.


This is now the only grave question which the United States has with any

foreign nation.


The question of renewing a treaty for reciprocal trade between the United

States and the British Provinces on this continent has not been favorably

considered by the Administration. The advantages of such a treaty would be

wholly in favor of the British producer. Except, possibly, a few engaged in

the trade between the two sections, no citizen of the United States would

be benefited by reciprocity. Our internal taxation would prove a protection

to the British producer almost equal to the protection which our

manufacturers now receive from the tariff. Some arrangement, however, for

the regulation of commercial intercourse between the United States and the

Dominion of Canada may be desirable.


The commission for adjusting the claims of the "Hudsons Bay and Puget Sound

Agricultural Company" upon the United States has terminated its labors. The

award of $650,000 has been made and all rights and titles of the company on

the territory of the United States have been extinguished. Deeds for the

property of the company have been delivered. An appropriation by Congress

to meet this sum is asked.


The commissioners for determining the northwestern land boundary between

the United States and the British possessions under the treaty of 1856 have

completed their labors, and the commission has been dissolved.


In conformity with the recommendation of Congress, a proposition was early

made to the British Government to abolish the mixed courts created under

the treaty of April 7, 1862, for the suppression of the slave trade. The

subject is still under negotiation.


It having come to my knowledge that a corporate company, organized under

British laws, proposed to land upon the shores of the United States and to

operate there a submarine cable, under a concession from His Majesty the

Emperor of the French of an exclusive right for twenty years of telegraphic

communication between the shores of France and the United States, with the

very objectionable feature of subjecting all messages conveyed thereby to

the scrutiny and control of the French Government, I caused the French and

British legations at Washington to be made acquainted with the probable

policy of Congress on this subject, as foreshadowed by the bill which

passed the Senate in March last. This drew from the representatives of the

company an agreement to accept as the basis of their operations the

provisions of that bill, or of such other enactment on the subject as might

be passed during the approaching session of Congress; also, to use their

influence to secure from the French Government a modification of their

concession, so as to permit the landing upon French soil of any cable

belonging to any company incorporated by the authority of the United States

or of any State in the Union, and, on their part, not to oppose the

establishment of any such cable. In consideration of this agreement I

directed the withdrawal of all opposition by the United States authorities

to the landing of the cable and to the working of it until the meeting of

Congress. I regret to say that there has been no modification made in the

company's concession, nor, so far as I can learn, have they attempted to

secure one. Their concession excludes the capital and the citizens of the

United States from competition upon the shores of France. I recommend

legislation to protect the rights of citizens of the United States, as well

as the dignity and sovereignty of the nation, against such an assumption. I

shall also endeavor to secure, by negotiation, an abandonment of the

principle of monopolies in ocean telegraphic cables. Copies of this

correspondence are herewith furnished.


The unsettled political condition of other countries, less fortunate than

our own, sometimes induces their citizens to come to the United States for

the sole purpose of becoming naturalized. Having secured this, they return

to their native country and reside there, without disclosing their change

of allegiance. They accept official positions of trust or honor, which can

only be held by citizens of their native land; they journey under passports

describing them as such citizens; and it is only when civil discord, after

perhaps years of quiet, threatens their persons or their property, or when

their native state drafts them into its military service, that the fact of

their change of allegiance is made known. They reside permanently away from

the United States, they contribute nothing to its revenues, they avoid the

duties of its citizenship, and they only make themselves known by a claim

of protection. I have directed the diplomatic and consular officers of the

United States to scrutinize carefully all such claims for protection. The

citizen of the United States, whether native or adopted, who discharges his

duty to his country, is entitled to its complete protection. While I have a

voice in the direction of affairs I shall not consent to imperil this

sacred right by conferring it upon fictitious or fraudulent claimants.


On the accession of the present Administration it was found that the

minister for North Germany had made propositions for the negotiation of a

convention for the protection of emigrant passengers, to which no response

had been given. It was concluded that to be effectual all the maritime

powers engaged in the trade should join in such a measure. Invitations have

been extended to the cabinets of London, Paris, Florence, Berlin, Brussels,

The Hague, Copenhagen, and Stockholm to empower their representatives at

Washington to simultaneously enter into negotiations and to conclude with

the United States conventions identical in form, making uniform regulations

as to the construction of the parts of vessels to be devoted to the use of

emigrant passengers, as to the quality and quantity of food, as to the

medical treatment of the sick, and as to the rules to be observed during

the voyage, in order to secure ventilation, to promote health, to prevent

intrusion, and to protect the females; and providing for the establishment

of tribunals in the several countries for enforcing such regulations by

summary process.


Your attention is respectfully called to the law regulating the tariff on

Russian hemp, and to the question whether to fix the charges on Russian

hemp higher than they are fixed upon manila is not a violation of our

treaty with Russia placing her products upon the same footing with those of

the most favored nations.


Our manufactures are increasing with wonderful rapidity under the

encouragement which they now receive. With the improvements in machinery

already effected, and still increasing, causing machinery to take the place

of skilled labor to a large extent, our imports of many articles must fall

off largely within a very few years. Fortunately, too, manufactures are not

confined to a few localities, as formerly, and it is to be hoped will

become more and more diffused, making the interest in them equal in all

sections. They give employment and support to hundreds of thousands of

people at home, and retain with us the means which otherwise would be

shipped abroad. The extension of railroads in Europe and the East is

bringing into competition with our agricultural products like products of

other countries. Self-interest, if not self-preservation, therefore

dictates caution against disturbing any industrial interest of the country.

It teaches us also the necessity of looking to other markets for the sale

of our surplus. Our neighbors south of us and China and Japan, should

receive our special attention. It will be the endeavor of the

Administration to cultivate such relations with all these nations as to

entitle us to their confidence and make it their interest, as well as ours,

to establish better commercial relations.


Through the agency of a more enlightened policy than that heretofore

pursued toward China, largely due to the sagacity and efforts of one of our

own distinguished citizens, the world is about to commence largely

increased relations with that populous and hitherto exclusive nation. As

the United States have been the initiators in this new policy, so they

should be the most earnest in showing their good faith in making it a

success. In this connection I advise such legislation as will forever

preclude the enslavement of the Chinese upon our soil under the name of

coolies, and also prevent American vessels from engaging in the

transportation of coolies to any country tolerating the system. I also

recommend that the mission to China be raised to one of the first class.


On my assuming the responsible duties of Chief Magistrate of the United

States it was with the conviction that three things were essential to its

peace, prosperity, and fullest development. First among these is strict

integrity in fulfilling all our obligations; second, to secure protection

to the person and property of the citizen of the United States in each and

every portion of our common country, wherever he may choose to move,

without reference to original nationality, religion, color, or politics,

demanding of him only obedience to the laws and proper respect for the

rights of others; third, union of all the States, with equal rights,

indestructible by any constitutional means.


To secure the first of these, Congress has taken two essential steps:

First, in declaring by joint resolution that the public debt shall be paid,

principal and interest, in coin; and, second, by providing the means for

paying. Providing the means, however, could not secure the object desired

without a proper administration of the laws for the collection of the

revenues and an economical disbursement of them. To this subject the

Administration has most earnestly addressed itself, with results, I hope,

satisfactory to the country. There has been no hesitation in changing

officials in order to secure an efficient execution of the laws, sometimes,

too, when, in a mere party view, undesirable political results were likely

to follow; nor any hesitation in sustaining efficient officials against

remonstrances wholly political.


It may be well to mention here the embarrassment possible to arise from

leaving on the statute books the so-called "tenure-of-office acts," and to

earnestly recommend their total repeal. It could not have been the

intention of the framers of the Constitution, when providing that

appointments made by the President should receive the consent of the

Senate, that the latter should have the power to retain in office persons

placed there by Federal appointment against the will of the President. The

law is inconsistent with a faithful and efficient administration of the

Government. What faith can an Executive put in officials forced upon him,

and those, too, whom he has suspended for reason? How will such officials

be likely to serve an Administration which they know does not trust them?


For the second requisite to our growth and prosperity time and a firm but

humane administration of existing laws (amended from time to time as they

may prove ineffective or prove harsh and unnecessary) are probably all that

are required.


The third can not be attained by special legislation, but must be regarded

as fixed by the Constitution itself and gradually acquiesced in by force of

public opinion.


From the foundation of the Government to the present the management of the

original inhabitants of this continent--the Indians--has been a subject of

embarrassment and expense, and has been attended with continuous robberies,

murders, and wars. From my own experience upon the frontiers and in Indian

countries, I do not hold either legislation or the conduct of the whites

who come most in contact with the Indian blameless for these hostilities.

The past, however, can not be undone, and the question must be met as we

now find it. I have attempted a new policy toward these wards of the nation

(they can not be regarded in any other light than as wards), with fair

results so far as tried, and which I hope will be attended ultimately with

great success. The Society of Friends is well known as having succeeded in

living in peace with the Indians in the early settlement of Pennsylvania,

while their white neighbors of other sects in other sections were

constantly embroiled. They are also known for their opposition to all

strife, violence, and war, and are generally noted for their strict

integrity and fair dealings. These considerations induced me to give the

management of a few reservations of Indians to them and to throw the burden

of the selection of agents upon the society itself. The result has proven

most satisfactory. It will be found more fully set forth in the report of

the Commissioner of Indian Affairs. For superintendents and Indian agents

not on the reservations, officers of the Army were selected. The reasons

for this are numerous. Where Indian agents are sent, there, or near there,

troops must be sent also. The agent and the commander of troops are

independent of each other, and are subject to orders from different

Departments of the Government. The army officer holds a position for life;

the agent, one at the will of the President. The former is personally

interested in living in harmony with the Indian and in establishing a

permanent peace, to the end that some portion of his life may be spent

within the limits of civilized society; the latter has no such personal

interest. Another reason is an economic one; and still another, the hold

which the Government has upon a life officer to secure a faithful discharge

of duties in carrying out a given policy.


The building of railroads, and the access thereby given to all the

agricultural and mineral regions of the country, is rapidly bringing

civilized settlements into contact with all the tribes of Indians. No

matter what ought to be the relations between such settlements and the

aborigines, the fact is they do not harmonize well, and one or the other

has to give way in the end. A system which looks to the extinction of a

race is too horrible for a nation to adopt without entailing upon itself

the wrath of all Christendom and engendering in the citizen a disregard for

human life and the rights of others, dangerous to society. I see no

substitute for such a system, except in placing all the Indians on large

reservations, as rapidly as it can be done, and giving them absolute

protection there. As soon as they are fitted for it they should be induced

to take their lands in severalty and to set up Territorial governments for

their own protection. For full details on this subject I call your special

attention to the reports of the Secretary of the Interior and the

Commissioner of Indian Affairs.


The report of the Secretary of War shows the expenditures of the War

Department for the year ending June 30, 1869, to be $80,644,042, of which

$23,882,310 was disbursed in the payment of debts contracted during the

war, and is not chargeable to current army expenses. His estimate of

$34,531,031 for the expenses of the Army for the next fiscal year is as low

as it is believed can be relied on. The estimates of bureau officers have

been carefully scrutinized, and reduced wherever it has been deemed

practicable. If, however, the condition of the country should be such by

the beginning of the next fiscal year as to admit of a greater

concentration of troops, the appropriation asked for will not be expended.


The appropriations estimated for river and harbor improvements and for

fortifications are submitted separately. Whatever amount Congress may deem

proper to appropriate for these purposes will be expended.


The recommendation of the General of the Army that appropriations be made

for the forts at Boston. Portland, New York, Philadelphia, New Orleans, and

San Francisco, if for no other, is concurred in. I also ask your special

attention to the recommendation of the general commanding the Military

Division of the Pacific for the sale of the seal islands of St. Paul and

St. George, Alaska Territory, and suggest that it either be complied with

or that legislation be had for the protection of the seal fisheries from

which a revenue should be derived.


The report of the Secretary of War contains a synopsis of the reports of

the heads of bureaus, of the commanders of military divisions, and of the

districts of Virginia, Mississippi, and Texas, and the report of the

General of the Army in full. The recommendations therein contained have

been well considered, and are submitted for your action. I, however, call

special attention to the recommendation of the Chief of Ordnance for the

sale of arsenals and lands no longer of use to the Government; also, to the

recommendation of the Secretary of War that the act of 3d March, 1869,

prohibiting promotions and appointments in the staff corps of the Army, be

repealed. The extent of country to be garrisoned and the number of military

posts to be occupied is the same with a reduced Army as with a large one.

The number of staff officers required is more dependent upon the latter

than the former condition.


The report of the Secretary of the Navy accompanying this shows the

condition of the Navy when this Administration came into office and the

changes made since. Strenuous efforts have been made to place as many

vessels "in commission," or render them fit for service if required, as

possible, and to substitute the sail for steam while cruising, thus

materially reducing the expenses of the Navy and adding greatly to its

efficiency. Looking to our future, I recommend a liberal, though not

extravagant, policy toward this branch of the public service.


The report of the Postmaster-General furnishes a clear and comprehensive

exhibit of the operations of the postal service and of the financial

condition of the Post-Office Department. The ordinary postal revenues for

the year ending the 30th of June, 1869, amounted to $18,344,510, and the

expenditures to $23,698,131, showing an excess of expenditures over

receipts of $5,353,620. The excess of expenditures over receipts for the

previous year amounted to $6,437,992. The increase of revenues for 1869

over those of 1868 was $2,051,909, and the increase of expenditures was

$967,538. The increased revenue in 1869 exceeded the increased revenue in

1868 by $996,336, and the increased expenditure in 1869 was $2,527,570 less

than the increased expenditure in 1868, showing by comparison this

gratifying feature of improvement, that while the increase of expenditures

over the increase of receipts in 1868 was $2,439,535, the increase of

receipts over the increase of expenditures in 1869 was $1,084,371.


Your attention is respectfully called to the recommendations made by the

Postmaster-General for authority to change the rate of compensation to the

main trunk railroad lines for their services in carrying the mails; for

having post-route maps executed; for reorganizing and increasing the

efficiency of the special-agency service; for increase of the mail service

on the Pacific, and for establishing mail service, under the flag of the

Union, on the Atlantic; and most especially do I call your attention to his

recommendation for the total abolition of the franking privilege. This is

an abuse from which no one receives a commensurate advantage; it reduces

the receipts for postal service from 25 to 30 per cent and largely

increases the service to be performed. The method by which postage should

be paid upon public matter is set forth fully in the report of the

Postmaster-General.


The report of the Secretary of the Interior shows that the quantity of

public lands disposed of during the year ending the 30th of June, 1869, was

7,666,152 acres, exceeding that of the preceding year by 1,010,409 acres.

Of this amount 2,899,544 acres were sold for cash and 2,737,365 acres

entered under the homestead laws. The remainder was granted to aid in the

construction of works of internal improvement, approved to the States as

swamp land, and located with warrants and scrip. The cash receipts from all

sources were $4,472,886, exceeding those of the preceding year $2,840,140.


During the last fiscal year 23,196 names were added to the pension rolls

and 4,876 dropped therefrom, leaving at its close 187,963. The amount paid

to pensioners, including the compensation of disbursing agents, was

$28,422,884, an increase of $4,411,902 on that of the previous year. The

munificence of Congress has been conspicuously manifested in its

legislation for the soldiers and sailors who suffered in the recent

struggle to maintain "that unity of government which makes us one people."

The additions to the pension rolls of each successive year since the

conclusion of hostilities result in a great degree from the repeated

amendments of the act of the 14th of July, 1862, which extended its

provisions to cases not falling within its original scope. The large outlay

which is thus occasioned is further increased by the more liberal allowance

bestowed since that date upon those who in the line of duty were wholly or

permanently disabled. Public opinion has given an emphatic sanction to

these measures of Congress, and it will be conceded that no part of our

public burden is more cheerfully borne than that which is imposed by this

branch of the service. It necessitates for the next fiscal year, in

addition to the amount justly chargeable to the naval pension fund, an

appropriation of $30,000,000.


During the year ending the 30th of September, 1869, the Patent Office

issued 13,762 patents, and its receipts were $686,389, being $213,926 more

than the expenditures.


Messages and Papers of the Presidents, Ulysses S. Grant, vol. 6, p.3995


I would respectfully call your attention to the recommendation of the

Secretary of the Interior for uniting the duties of supervising the

education of freedmen with the other duties devolving upon the Commissioner

of Education.


If it is the desire of Congress to make the census which must be taken

during the year 1870 more complete and perfect than heretofore, I would

suggest early action upon any plan that may be agreed upon. As Congress at

the last session appointed a committee to take into consideration such

measures as might be deemed proper in reference to the census and report a

plan, I desist from saying more.


I recommend to your favorable consideration the claims of the Agricultural

Bureau for liberal appropriations. In a country so diversified in climate

and soil as ours, and with a population so largely dependent upon

agriculture, the benefits that can be conferred by properly fostering this

Bureau are incalculable.


I desire respectfully to call the attention of Congress to the inadequate

salaries of a number of the most important offices of the Government. In

this message I will not enumerate them, but will specify only the justices

of the Supreme Court. No change has been made in their salaries for fifteen

years. Within that time the labors of the court have largely increased and

the expenses of living have at least doubled. During the same time Congress

has twice found it necessary to increase largely the compensation of its

own members, and the duty which it owes to another department of the

Government deserves, and will undoubtedly receive, its due consideration.


There are many subjects not alluded to in this message which might with

propriety be introduced, but I abstain, believing that your patriotism and

statesmanship will suggest the topics and the legislation most conducive to

the interests of the whole people. On my part I promise a rigid adherence

to the laws and their strict enforcement.


U. S. GRANT


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