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President[ Ulysses S. Grant

         Date[ December 4, 1871

To the Senate and House of Representatives:

In addressing my third annual message to the law-making branch of the

Government it is gratifying to be able to state that during the past year

success has generally attended the effort to execute all laws found upon

the statute books. The policy has been not to inquire into the wisdom of

laws already enacted, but to learn their spirit and intent and to enforce

them accordingly.

The past year has, under a wise Providence, been one of general prosperity

to the nation. It has, however, been attended with more than usual

chastisements in the loss of life and property by storm and fire. These

disasters have served to call forth the best elements of human nature in

our country and to develop a friendship for us on the part of foreign

nations which goes far toward alleviating the distresses occasioned by

these calamities. The benevolent, who have so generously shared their means

with the victims of these misfortunes, will reap their reward in the

consciousness of having performed a noble act and in receiving the grateful

thanks of men, women, and children whose sufferings they have relieved.

The relations of the United States with foreign powers continue to be

friendly. The year has been an eventful one in witnessing two great

nations, speaking one language and having one lineage, settling by peaceful

arbitration disputes of long standing and liable at any time to bring those

nations into bloody and costly conflict. An example has thus been set

which, if successful in its final issue, may be followed by other civilized

nations, and finally be the means of returning to productive industry

millions of men now maintained to settle the disputes of nations by the

bayonet and the broadside.

I transmit herewith a copy of the treaty alluded to, which has been

concluded since the adjournment of Congress with Her Britannic Majesty, and

a copy of the protocols of the conferences of the commissioners by whom it

was negotiated. This treaty provides methods for adjusting the questions

pending between the two nations.

Various questions are to be adjusted by arbitration. I recommend Congress

at an early day to make the necessary provision for the tribunal at Geneva

and for the several commissioners on the part of the United States called

for by the treaty.

His Majesty the King of Italy, the President of the Swiss Confederation,

and His Majesty the Emperor of Brazil have each consented, on the joint

request of the two powers, to name an arbiter for the tribunal at Geneva. I

have caused my thanks to be suitably expressed for the readiness with which

the joint request has been complied with, by the appointment of gentlemen

of eminence and learning to these important positions.

His Majesty the Emperor of Germany has been pleased to comply with the

joint request of the two Governments, and has consented to act as the

arbitrator of the disputed water boundary between the United States and

Great Britain.

The contracting parties in the treaty have undertaken to regard as between

themselves certain principles of public law, for which the United States

have contended from the commencement of their history. They have also

agreed to bring those principles to the knowledge of the other maritime

powers and to invite them to accede to them. Negotiations are going on as

to the form of the note by which the invitation is to be extended to the

other powers.

I recommend the legislation necessary on the part of the United States to

bring into operation the articles of the treaty relating to the fisheries

and to the other matters touching the relations of the United States toward

the British North American possessions, to become operative so soon as the

proper legislation shall be had on the part of Great Britain and its

possessions. It is much to be desired that this legislation may become

operative before the fishermen of the United States begin to make their

arrangements for the coming season.

I have addressed a communication, of which a copy is transmitted herewith,

to the governors of New York, Pennsylvania, Ohio, Indiana, Michigan,

Illinois, and Wisconsin, urging upon the governments of those States,

respectively, the necessary action on their part to carry into effect the

object of the article of the treaty which contemplates the use of the

canals, on either side, connected with the navigation of the lakes and

rivers forming the boundary, on terms of equality, by the inhabitants of

both countries. It is hoped that the importance of the object and the

benefits to flow therefrom will secure the speedy approval and legislative

sanction of the States concerned.

I renew the recommendation for an appropriation for determining the true

position of the forty-ninth parallel of latitude where it forms the

boundary between the United States and the British North American

possessions, between the Lake of the Woods and the summit of the Rocky

Mountains. The early action of Congress on this recommendation would put it

in the power of the War Department to place a force in the field during the

next summer.

The resumption of diplomatic relations between France and Germany has

enabled me to give directions for the withdrawal of the protection extended

to Germans in France by the diplomatic and consular representatives of the

United States in that country. It is just to add that the delicate duty of

this protection has been performed by the minister and the consul-general

at Paris, and the various consuls in France under the supervision of the

latter, with great kindness as well as with prudence and tact. Their course

has received the commendation of the German Government, and has wounded no

susceptibility of the French.

The Government of the Emperor of Germany continues to manifest a friendly

feeling toward the United States, and a desire to harmonize with the

moderate and just policy which this Government maintains in its relations

with Asiatic powers, as well as with the South American Republics. I have

given assurances that the friendly feelings of that Government are fully

shared by the United States.

The ratifications of the consular and naturalization conventions with the

Austro-Hungarian Empire have been exchanged.

I have been officially informed of the annexation of the States of the

Church to the Kingdom of Italy, and the removal of the capital of that

Kingdom to Rome. In conformity with the established policy of the United

States, I have recognized this change. The ratifications of the new treaty

of commerce between the United States and Italy have been exchanged. The

two powers have agreed in this treaty that private property at sea shall be

exempt from capture in case of war between the two powers. The United

States have spared no opportunity of incorporating this rule into the

obligation of nations.

The Forty-first Congress, at its third session, made an appropriation for

the organization of a mixed commission for adjudicating upon the claims of

citizens of the United States against Spain growing out of the insurrection

in Cuba. That commission has since been organized. I transmit herewith the

correspondence relating to its formation and its jurisdiction. It is to be

hoped that this commission will afford the claimants a complete remedy for

their injuries.

It has been made the agreeable duty of the United States to preside over a

conference at Washington between the plenipotentiaries of Spain and the

allied South American Republics, which has resulted in an armistice, with

the reasonable assurance of a permanent peace.

The intimate friendly relations which have so long existed between the

United States and Russia continue undisturbed. The visit of the third son

of the Emperor is a proof that there is no desire on the part of his

Government to diminish the cordiality of those relations. The hospitable

reception which has been given to the Grand Duke is a proof that on our

side we share the wishes of that Government. The inexcusable course of the

Russian minister at Washington rendered it necessary to ask his recall and

to decline to longer receive that functionary as a diplomatic

representative. It was impossible, with self-respect or with a just regard

to the dignity of the country, to permit Mr. Catacazy to continue to hold

intercourse with this Government after his personal abuse of Government

officials, and during his persistent interferences, through various means,

with the relations between the United States and other powers. In

accordance with my wishes, this Government has been relieved of further

intercourse with Mr. Catacazy, and the management of the affairs of the

imperial legation has passed into the hands of a gentleman entirely

unobjectionable.

With Japan we continue to maintain intimate relations. The cabinet of the

Mikado has since the close of the last session of Congress selected

citizens of the United States to serve in offices of importance in several

departments of Government. I have reason to think that this selection is

due to an appreciation of the disinterestedness of the policy which the

United States have pursued toward Japan. It is our desire to continue to

maintain this disinterested and just policy with China as well as Japan.

The correspondence transmitted herewith shows that there is no disposition

on the part of this Government to swerve from its established course.

Prompted by a desire to put an end to the barbarous treatment of our

shipwrecked sailors on the Korean coast, I instructed our minister at

Peking to endeavor to conclude a convention with Korea for securing the

safety and humane treatment of such mariners.

Admiral Rodgers was instructed to accompany him with a sufficient force to

protect him in case of need.

A small surveying party sent out, on reaching the coast was treacherously

attacked at a disadvantage. Ample opportunity was given for explanation and

apology for the insult. Neither came. A force was then landed. After an

arduous march over a rugged and difficult country, the forts from which the

outrages had been committed were reduced by a gallant assault and were

destroyed. Having thus punished the criminals, and having vindicated the

honor of the flag, the expedition returned, finding it impracticable under

the circumstances to conclude the desired convention. I respectfully refer

to the correspondence relating thereto, herewith submitted, and leave the

subject for such action as Congress may see fit to take.

The Republic of Mexico has not yet repealed the very objectionable laws

establishing what is known as the "free zone" on the frontier of the United

States. It is hoped that this may yet be done, and also that more stringent

measures may be taken by that Republic for restraining lawless persons on

its frontiers. I hope that Mexico by its own action will soon relieve this

Government of the difficulties experienced from these causes.

Our relations with the various Republics of Central and South America

continue, with one exception, to be cordial and friendly.

I recommend some action by Congress regarding the overdue installments

under the award of the Venezuelan Claims Commission of 1866. The internal

dissensions of this Government present no justification for the absence of

effort to meet their solemn treaty obligations.

The ratification of an extradition treaty with Nicaragua has been

exchanged.

It is a subject for congratulation that the great Empire of Brazil has

taken the initiatory step toward the abolition of slavery. Our relations

with that Empire, always cordial, will naturally be made more so by this

act. It is not too much to hope that the Government of Brazil may hereafter

find it for its interest, as well as intrinsically right, to advance toward

entire emancipation more rapidly than the present act contemplates.

The true prosperity and greatness of a nation is to be found in the

elevation and education of its laborers.

It is a subject for regret that the reforms in this direction which were

voluntarily promised by the statesmen of Spain have not been carried out in

its West India colonies. The laws and regulations for the apparent

abolition of slavery in Cuba and Porto Rico leave most of the laborers in

bondage, with no hope of release until their lives become a burden to their

employers.

I desire to direct your attention to the fact that citizens of the United

States, or persons claiming to be citizens of the United States, are large

holders in foreign lands of this species of property, forbidden by the

fundamental law of their alleged country. I recommend to Congress to

provide by stringent legislation a suitable remedy against the holding,

owning or dealing in slaves, or being interested in slave property, in

foreign lands, either as owners, hirers, or mortgagors, by citizens of the

United States.

It is to be regretted that the disturbed condition of the island of Cuba

continues to be a source of annoyance and of anxiety. The existence of a

protracted struggle in such close proximity to our own territory, without

apparent prospect of an early termination, can not be other than an object

of concern to a people who, while abstaining from interference in the

affairs of other powers, naturally desire to see every country in the

undisturbed enjoyment of peace, liberty, and the blessings of free

institutions.

Our naval commanders in Cuban waters have been instructed, in case it

should become necessary, to spare no effort to protect the lives and

property of bona fide American citizens and to maintain the dignity of the

flag.

It is hoped that all pending questions with Spain growing out of the

affairs in Cuba may be adjusted in the spirit of peace and conciliation

which has hitherto guided the two powers in their treatment of such

questions.

To give importance to and to add to the efficiency of our diplomatic

relations with Japan and China, and to further aid in retaining the good

opinion of those peoples, and to secure to the United States its share of

the commerce destined to flow between those nations and the balance of the

commercial world, I earnestly recommend that an appropriation be made to

support at least four American youths in each of those countries, to serve

as a part of the official family of our ministers there. Our

representatives would not even then be placed upon an equality with the

representatives of Great Britain and of some other powers. As now situated,

our representatives in Japan and China have to depend for interpreters and

translators upon natives of those countries who know our language

imperfectly, or procure for the occasion the services of employees in

foreign business houses or the interpreters to other foreign ministers.

I would also recommend liberal measures for the purpose of supporting the

American lines of steamers now plying between San Francisco and Japan and

China, and the Australian line--almost our only remaining lines of ocean

steamers--and of increasing their services.

The national debt has been reduced to the extent of $86,057, 126.80 during

the year, and by the negotiation of national bonds at a lower rate of

interest the interest on the public debt has been so far diminished that

now the sum to be raised for the interest account is nearly $17,000,000

less than on the 1st of March, 1869. It was highly desirable that this

rapid diminution should take place, both to strengthen the credit of the

country and to convince its citizens of their entire ability to meet every

dollar of liability without bankrupting them. But in view of the

accomplishment of these desirable ends: of the rapid development of the

resources of the country; its increasing ability to meet large demands, and

the amount already paid, it is not desirable that the present resources of

the country should continue to be taxed in order to continue this rapid

payment. I therefore recommend a modification of both the tariff and

internal-tax law. I recommend that all taxes from internal sources be

abolished, except those collected from spirituous, vinous, and malt

liquors, tobacco in its various forms, and from stamps.

In readjusting the tariff I suggest that a careful estimate be made of the

amount of surplus revenue collected under the present laws, after providing

for the current expenses of the Government, the interest count, and a

sinking fund, and that this surplus be reduced in such a manner as to

afford the greatest relief to the greatest number. There are many articles

not produced at home, but which enter largely into general consumption

through articles which are manufactured at home, such as medicines

compounded, etc., etc., from which very little revenue is derived, but

which enter into general use. All such articles I recommend to be placed on

the "free list." Should a further reduction prove advisable, I would then

recommend that it be made upon those articles which can best bear it

without disturbing home production or reducing the wages of American

labor.

I have not entered into figures, because to do so would be to repeat what

will be laid before you in the report of the Secretary of the Treasury. The

present laws for collecting revenue pay collectors of customs small

salaries, but provide for moieties (shares in all seizures), which, at

principal ports of entry particularly, raise the compensation of those

officials to a large sum. It has always seemed to me as if this system must

at times work perniciously. It holds out an inducement to dishonest men,

should such get possession of those offices, to be lax in their scrutiny of

goods entered, to enable them finally to make large seizures. Your

attention is respectfully invited to this subject.

Continued fluctuations in the value of gold, as compared with the national

currency, has a most damaging effect upon the increase and development of

the country, in keeping up prices of all articles necessary in everyday

life. It fosters a spirit of gambling, prejudicial alike to national morals

and the national finances. If the question can be met as to how to get a

fixed value to our currency, that value constantly and uniformly

approaching par with specie, a very desirable object will be gained.

For the operations of the Army in the past year, the expense of maintaining

it, the estimate for the ensuing year, and for continuing seacoast and

other improvements conducted under the supervision of the War Department, I

refer you to the accompanying report of the Secretary of War.

I call your attention to the provisions of the act of Congress approved

March 3, 1869, which discontinues promotions in the staff corps of the Army

until provided for by law. I recommend that the number of officers in each

grade in the staff corps be fixed, and that whenever the number in any one

grade falls below the number so fixed, that the vacancy may be filled by

promotion from the grade below. I also recommend that when the office of

chief of a corps becomes vacant the place may be filled by selection from

the corps in which the vacancy exists.

The report of the Secretary of the Navy shows an improvement in the number

and efficiency of the naval force, without material increase in the expense

of supporting it. This is due to the policy which has been adopted, and is

being extended as fast as our material will admit, of using smaller vessels

as cruisers on the several stations. By this means we have been enabled to

occupy at once a larger extent of cruising grounds, to visit more

frequently the ports where the presence of our flag is desirable, and

generally to discharge more efficiently the appropriate duties of the Navy

in time of peace, without exceeding the number of men or the expenditure

authorized by law.

During the past year the Navy has, in addition to its regular service,

supplied the men and officers for the vessels of the Coast Survey, and has

completed the surveys authorized by Congress of the isthmuses of Darien and

Tehuantepec, and, under like authority, has sent out an expedition,

completely furnished and equipped, to explore the unknown ocean of the

north.

The suggestions of the report as to the necessity for increasing and

improving the materiel of the Navy, and the plan recommended for reducing

the personnel of the service to a peace standard, by the gradual abolition

of certain grades of officers, the reduction of others, and the employment

of some in the service of the commercial marine, are well considered and

deserve the thoughtful attention of Congress.

I also recommend that all promotions in the Navy above the rank of captain

be by selection instead of by seniority. This course will secure in the

higher grades greater efficiency and hold out an incentive to young

officers to improve themselves in the knowledge of their profession.

The present cost of maintaining the Navy, its cost compared with that of

the preceding year, and the estimates for the ensuing year are contained in

the accompanying report of the Secretary of the Navy.

The enlarged receipts of the Post-Office Department, as shown by the

accompanying report of the Postmaster-General, exhibit a gratifying

increase in that branch of the public service. It is the index of the

growth of education and of the prosperity of the people, two elements

highly conducive to the vigor and stability of republics. With a vast

territory like ours, much of it sparsely populated, but all requiring the

services of the mail, it is not at present to be expected that this

Department can be made self-sustaining. But a gradual approach to this end

from year to year is confidently relied on, and the day is not far distant

when the Post-Office Department of the Government will prove a much greater

blessing to the whole people than it is now.

The suggestions of the Postmaster-General for improvements in the

Department presided over by him are earnestly recommended to you, special

attention. Especially do I recommend favorable consideration of the plan

for uniting the telegraphic system of the United States with the postal

system. It is believed that by such a course the cost of telegraphing could

be much reduced, and the service as well, if not better, rendered. It would

secure the further advantage of extending the telegraph through portions of

the country where private enterprise will not construct it. Commerce,

trade, and, above all, the efforts to bring a people widely separated into

a community of interest are always benefited by a rapid intercommunication.

Education, the groundwork of republican institutions, is encouraged by

increasing the facilities to gather speedy news from all parts of the

country. The desire to reap the benefit of such improvements will stimulate

education. I refer you to the report of the Postmaster-General for full

details of the operations of last year and for comparative statements of

results with former years.

There has been imposed upon the executive branch of the Government the

execution of the act of Congress approved April 20, 1871, and commonly

known as the Kuklux law, in a portion of the State of South Carolina. The

necessity of the course pursued will be demonstrated by the report of the

Committee to Investigate Southern Outrages. Under the provisions of the

above act I issued a proclamation calling the attention of the people of

the United States to the same, and declaring my reluctance to exercise any

of the extraordinary powers thereby conferred upon me, except in case of

imperative necessity, but making known my purpose to exercise such powers

whenever it should become necessary to do so for the purpose of securing to

all citizens of the United States the peaceful enjoyment of the rights

guaranteed to them by the Constitution and the laws.

After the passage of this law information was received from time to time

that combinations of the character referred to in this law existed and were

powerful in many parts of the Southern States, particularly in certain

counties in the State of South Carolina.

Careful investigation was made, and it was ascertained that in nine

counties of that State such combinations were active and powerful,

embracing a sufficient portion of the citizens to control the local

authority, and having, among other things, the object of depriving the

emancipated class of the substantial benefits of freedom and of preventing

the free political action of those citizens who did not sympathize with

their own views. Among their operations were frequent scourgings and

occasional assassinations, generally perpetrated at night by disguised

persons, the victims in almost all cases being citizens of different

political sentiments from their own or freed persons who had shown a

disposition to claim equal rights with other citizens. Thousands of

inoffensive and well disposed citizens were the sufferers by this lawless

violence,

Thereupon, on the 12th of October, 1871, a proclamation was issued, in

terms of the law, calling upon the members of those combinations to

disperse within five days and to deliver to the marshal or military

officers of the United States all arms, ammunition, uniforms, disguises,

and other means and implements used by them for carrying out their unlawful

purposes.

This warning not having been heeded, on the 17th of October another

proclamation was issued, suspending the privileges of the writ of habeas

corpus in nine counties in that State.

Direction was given that within the counties so designated persons

supposed, upon creditable information, to be members of such unlawful

combinations should be arrested by the military forces of the United States

and delivered to the marshal, to be dealt with according to law. In two of

said counties, York and Spartanburg, many arrests have been made. At the

last account the number of persons thus arrested was 168. Several hundred,

whose criminality was ascertained to be of an inferior degree, were

released for the present. These have generally made confessions of their

guilt.

Great caution has been exercised in making these arrests, and,

notwithstanding the large number, it is believed that no innocent person is

now in custody. The prisoners will be held for regular trial in the

judicial tribunals of the United States.

As soon as it appeared that the authorities of the United States were about

to take vigorous measures to enforce the law, many persons absconded, and

there is good ground for supposing that all of such persons have violated

the law. A full report of what has been done under this law will be

submitted to Congress by the Attorney-General.

In Utah there still remains a remnant of barbarism, repugnant to

civilization, to decency, and to the laws of the United States. Territorial

officers, however, have been found who are willing to perform their duty in

a spirit of equity and with a due sense of the necessity of sustaining the

majesty of the law. Neither polygamy nor any other violation of existing

statutes will be permitted within the territory of the United States. It is

not with the religion of the self-styled Saints that we are now dealing,

but with their practices. They will be protected in the worship of God

according to the dictates of their consciences, but they will not be

permitted to violate the laws under the cloak of religion.

It may be advisable for Congress to consider what, in the execution of the

laws against polygamy, is to be the status of plural wives and their

offspring. The propriety of Congress passing an enabling act authorizing

the Territorial legislature of Utah to legitimize all children born prior

to a time fixed in the act might be justified by its humanity to these

innocent children. This is a suggestion only, and not a recommendation.

The policy pursued toward the Indians has resulted favorably, so far as can

be judged from the limited time during which it has been in operation.

Through the exertions of the various societies of Christians to whom has

been intrusted the execution of the policy, and the board of commissioners

authorized by the law of April 10, 1869, many tribes of Indians have been

induced to settle upon reservations, to cultivate the soil, to perform

productive labor of various kinds, and to partially accept civilization.

They are being cared for in such a way, it is hoped, as to induce those

still pursuing their old habits of life to embrace the only opportunity

which is left them to avoid extermination.

I recommend liberal appropriations to carry out the Indian peace policy,

not only because it is humane, Christian like, and economical, but because

it is right.

I recommend to your favorable consideration also the policy of granting a

Territorial government to the Indians in the Indian Territory west of

Arkansas and Missouri and south of Kansas. In doing so every right

guaranteed to the Indian by treaty should be secured. Such a course might

in time be the means of collecting most of the Indians now between the

Missouri and the Pacific and south of the British possessions into one

Territory or one State. The Secretary of the Interior has treated upon this

subject at length, and I commend to you his suggestions.

I renew my recommendation that the public lands be regarded as a heritage

to our children, to be disposed of only as required for occupation and to

actual settlers. Those already granted have been in great part disposed of

in such a way as to secure access to the balance by the hardy settler who

may wish to avail himself of them, but caution should be exercised even in

attaining so desirable an object.

Educational interest may well be served by the grant of the proceeds of the

sale of public lands to settlers. I do not wish to be understood as

recommending in the least degree a curtailment of what is being done by the

General Government for the encouragement of education.

The report of the Secretary of the Interior submitted with this will give

you all the information collected and prepared for publication in regard to

the census taken during the year 1870; the operations of the Bureau of

Education for the year; the Patent Office; the Pension Office; the Land

Office, and the Indian Bureau.

The report of the Commissioner of Agriculture gives the operations of his

Department for the year. As agriculture is the groundwork of our

prosperity, too much importance can not be attached to the labors of this

Department. It is in the hands of an able head, with able assistants, all

zealously devoted to introducing into the agricultural productions of the

nation all useful products adapted to any of the various climates and soils

of our vast territory, and to giving all useful information as to the

method of cultivation, the plants, cereals, and other products adapted to

particular localities. Quietly but surely the Agricultural Bureau is

working a great national good, and if liberally supported the more widely

its influence will be extended and the less dependent we shall be upon the

products of foreign countries.

The subject of compensation to the heads of bureaus and officials holding

positions of responsibility, and requiring ability and character to fill

properly, is one to which your attention is invited. But few of the

officials receive a compensation equal to the respectable support of a

family, while their duties are such as to involve millions of interest. In

private life services demand compensation equal to the services rendered; a

wise economy would dictate the same rule in the Government service.

I have not given the estimates for the support of Government for the

ensuing year, nor the comparative statement between the expenditures for

the year just passed and the one just preceding, because all these figures

are contained in the accompanying reports or in those presented directly to

Congress. These estimates have my approval.

More than six years having elapsed since the last hostile gun was fired

between the armies then arrayed against each other--one for the

perpetuation, the other for the destruction, of the Union--it may well be

considered whether it is not now time that the disabilities imposed by the

fourteenth amendment should be removed. That amendment does not exclude the

ballot, but only imposes the disability to hold offices upon certain

classes. When the purity of the ballot is secure, majorities are sure to

elect officers reflecting the views of the majority. I do not see the

advantage or propriety of excluding men from office merely because they

were before the rebellion of standing and character sufficient to be

elected to positions requiring them to take oaths to support the

Constitution, and admitting to eligibility those entertaining precisely the

same views, but of less standing in their communities. It may be said that

the former violated an oath, while the latter did not; the latter did not

have it in their power to do so. If they had taken this oath, it can not be

doubted they would have broken it as did the former class. If there are any

great criminals, distinguished above all others for the part they took in

opposition to the Government, they might, in the judgment of Congress, be

excluded from such an amnesty.

This subject is submitted for your careful consideration.

The condition of the Southern States is, unhappily, not such as all true

patriotic citizens would like to see. Social ostracism for opinion's sake,

personal violence or threats toward persons entertaining political views

opposed to those entertained by the majority of the old citizens, prevents

immigration and the flow of much-needed capital into the States lately in

rebellion. It will be a happy condition of the country when the old

citizens of these States will take an interest in public affairs,

promulgate ideas honestly entertained, vote for men representing their

views, and tolerate the same freedom of expression and ballot in those

entertaining different political convictions.

Under the provisions of the act of Congress approved February 21, 1871, a

Territorial government was organized in the District of Columbia. Its

results have thus far fully realized the expectations of its advocates.

Under the direction of the Territorial officers, a system of improvements

has been inaugurated by means of which Washington is rapidly becoming a

city worthy of the nation's capital. The citizens of the District having

voluntarily taxed themselves to a large amount for the purpose of

contributing to the adornment of the seat of Government, I recommend

liberal appropriations on the part of Congress, in order that the

Government may bear its just share of the expense of carrying out a

judicious system of improvements.

By the great fire in Chicago the most important of the Government buildings

in that city were consumed. Those burned had already become inadequate to

the wants of the Government in that growing city, and, looking to the near

future, were totally inadequate. I recommend, therefore, that an

appropriation be made immediately to purchase the remainder of the square

on which the burned buildings stood, provided it can be purchased at a fair

valuation, or provided that the legislature of Illinois will pass a law

authorizing its condemnation for Government purposes; and also an

appropriation of as much money as can properly be expended toward the

erection of new buildings during this fiscal year.

The number of immigrants ignorant of our laws, habits, etc., coming into

our country annually has become so great and the impositions practiced upon

them so numerous and flagrant that I suggest Congressional action for their

protection. It seems to me a fair subject of legislation by Congress. I can

not now state as fully as I desire the nature of the complaints made by

immigrants of the treatment they receive, but will endeavor to do so during

the session of Congress, particularly if the subject should receive your

attention.

It has been the aim of the Administration to enforce honesty and efficiency

in all public offices. Every public servant who has violated the trust

placed in him has been proceeded against with all the rigor of the law. If

bad men have secured places, it has been the fault of the system

established by law and custom for making appointments, or the fault of

those who recommend for Government positions persons not sufficiently well

known to them personally, or who give letters indorsing the characters of

office seekers without a proper sense of the grave responsibility which

such a course devolves upon them. A civil-service reform which can correct

this abuse is much desired. In mercantile pursuits the business man who

gives a letter of recommendation to a friend to enable him to obtain credit

from a stranger is regarded as morally responsible for the integrity of his

friend and his ability to meet his obligations. A reformatory law which

would enforce this principle against all indorsers of persons for public

place would insure great caution in making recommendations. A salutary

lesson has been taught the careless and the dishonest public servant in the

great number of prosecutions and convictions of the last two years.

It is gratifying to notice the favorable change which is taking place

throughout the country in bringing to punishment those who have proven

recreant to the trusts confided to them and in elevating to public office

none but those who possess the confidence of the honest and the virtuous,

who, it will always be found, comprise the majority of the community in

which they live.

In my message to Congress one year ago I urgently recommended a reform in

the civil service of the country. In conformity with that recommendation

Congress, in the ninth section of "An act making appropriations for sundry

civil expenses of the Government, and for other purposes," approved March

3, 1871, gave the necessary authority to the Executive to inaugurate a

civil-service reform, and placed upon him the responsibility of doing so.

Under the authority of said act I convened a board of gentlemen eminently

qualified for the work to devise rules and regulations to effect the needed

reform. Their labors are not yet complete, but it is believed that they

will succeed in devising a plan that can be adopted to the great relief of

the Executive, the heads of Departments, and members of Congress, and which

will redound to the true interest of the public service. At all events, the

experiment shall have a fair trial.

I have thus hastily summed up the operations of the Government during the

last year, and made such suggestions as occur to me to be proper for your

consideration. I submit them with a confidence that your combined action

will be wise, statesmanlike, and in the best interests of the whole

country.

U. S. GRANT

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