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President[ Ulysses S. Grant

         Date[ December 2, 1872


To the Senate and House of Representatives:


In transmitting to you this my fourth annual message it is with

thankfulness to the Giver of All Good that as a nation we have been blessed

for the past year with peace at home, peace abroad, and a general

prosperity vouchsafed to but few peoples.


With the exception of the recent devastating fire which swept from the

earth with a breath, as it were, millions of accumulated wealth in the city

of Boston, there has been no overshadowing calamity within the year to

record. It is gratifying to note how, like their fellow-citizens of the

city of Chicago under similar circumstances a year earlier, the citizens of

Boston are rallying under their misfortunes, and the prospect that their

energy and perseverance will overcome all obstacles and show the same

prosperity soon that they would had no disaster befallen them. Otherwise we

have been free from pestilence, war, and calamities, which often overtake

nations; and, as far as human judgment can penetrate the future, no cause

seems to exist to threaten our present peace.


When Congress adjourned in June last, a question had been raised by Great

Britain, and was then pending, which for a time seriously imperiled the

settlement by friendly arbitration of the grave differences between this

Government and that of Her Britannic Majesty, which by the treaty of

Washington had been referred to the tribunal of arbitration which had met

at Geneva, in Switzerland.


The arbitrators, however, disposed of the question which had jeoparded the

whole of the treaty and threatened to involve the two nations in most

unhappy relations toward each other in a manner entirely satisfactory to

this Government and in accordance with the views and the policy which it

had maintained.


The tribunal, which had convened at Geneva in December, concluded its

laborious session on the 14th day of September last, on which day, having

availed itself of the discretionary power given to it by the treaty to

award a sum in gross, it made its decision, whereby it awarded the sum of

$15,500,000 in gold as the indemnity to be paid by Great Britain to the

United States for the satisfaction of all the claims referred to its

consideration.


This decision happily disposes of a long-standing difference between the

two Governments, and, in connection with another award, made by the German

Emperor under a reference to him by the same treaty, leaves these two

Governments without a shadow upon the friendly relations which it is my

sincere hope may forever remain equally unclouded.


The report of the agent of the United States appointed to attend the Geneva

tribunal, accompanied by the protocols of the proceedings of the

arbitrators, the arguments of the counsel of both Governments, the award of

the tribunal, and the opinions given by the several arbitrators, is

transmitted herewith.


I have caused to be communicated to the heads of the three friendly powers

who complied with the joint request made to them under the treaty the

thanks of this Government for the appointment of arbitrators made by them

respectively, and also my thanks to the eminent personages named by them,

and my appreciation of the dignity, patience, impartiality, and great

ability with which they discharged their arduous and high functions.


Her Majesty's Government has communicated to me the appreciation by Her

Majesty of the ability and indefatigable industry displayed by Mr. Adams,

the arbitrator named on the part of this Government during the protracted

inquiries and discussions of the tribunal. I cordially unite with Her

Majesty in this appreciation.


It is due to the agent of the United States before the tribunal to record

my high appreciation of the marked ability, unwearied patience, and the

prudence and discretion with which he has conducted the very responsible

and delicate duties committed to him, as it is also due to the learned and

eminent counsel who attended the tribunal on the part of this Government to

express my sense of the talents and wisdom which they brought to bear in

the attainment of the result so happily reached.


It will be the province of Congress to provide for the distribution among

those who may be entitled to it of their respective shares of the money to

be paid. Although the sum awarded is not payable until a year from the date

of the award, it is deemed advisable that no time be lost in making a

proper examination of the several cases in which indemnification may be

due. I consequently recommend the creation of a board of commissioners for

the purpose.


By the thirty-fourth article of the treaty of Washington the respective

claims of the United States and of Great Britain in their construction of

the treaty of the 15th of June, 1846, defining the boundary line between

their respective territories, were submitted to the arbitration and award

of His Majesty the Emperor of Germany, to decide which of those claims is

most in accordance with the true interpretation of the treaty of 1846.


His Majesty the Emperor of Germany, having been pleased to undertake the

arbitration, has the earnest thanks of this Government and of the people of

the United States for the labor, pains, and care which he has devoted to

the consideration of this long-pending difference. I have caused an

expression of my thanks to be communicated to His Majesty. Mr. Bancroft,

the representative of this Government at Berlin, conducted the case and

prepared the statement on the part of the United States with the ability

that his past services justified the public in expecting at his hands. As a

member of the Cabinet at the date of the treaty which has given rise to the

discussion between the two Governments, as the minister to Great Britain

when the construction now pronounced unfounded was first advanced, and as

the agent and representative of the Government to present the case and to

receive the award, he has been associated with the question in all of its

phases, and in every stage has manifested a patriotic zeal and earnestness

in maintenance of the claim of the United States. He is entitled to much

credit for the success which has attended the submission.


After a patient investigation of the case and of the statements of each

party, His Majesty the Emperor, on the 21st day of October last, signed his

award in writing, decreeing that the claim of the Government of the United

States, that the boundary line between the territories of Her Britannic

Majesty and the United States should be drawn through the Haro Channel, is

most in accordance with the true interpretation of the treaty concluded on

the 15th of June, 1846, between the Governments of Her Britannic Majesty

and of the United States.


Copies of the "case" presented on behalf of each Government, and of the

"statement in reply" of each, and a translation of the award, are

transmitted herewith.


This award confirms the United States in their claim to the important

archipelago of islands lying between the continent and Vancouvers Island,

which for more than twenty-six years (ever since the ratification of the

treaty) Great Britain has contested, and leaves us, for the first time in

the history of the United States as a nation, without a question of

disputed boundary between our territory and the possessions of Great

Britain on this continent.


It is my grateful duty to acknowledge the prompt, spontaneous action of Her

Majesty's Government in giving effect to the award. In anticipation of any

request from this Government, and before the reception in the United States

of the award signed by the Emperor, Her Majesty had given instructions for

the removal of her troops which had been stationed there and for the

cessation of all exercise or claim of jurisdiction, so as to leave the

United States in the exclusive possession of the lately disputed territory.

I am gratified to be able to announce that the orders for the removal of

the troops have been executed, and that the military joint occupation of

San Juan has ceased. The islands are now in the exclusive possession of the

United States.


It now becomes necessary to complete the survey and determination of that

portion of the boundary line (through the Haro Channel) upon which the

commission which determined the remaining part of the line were unable to

agree. I recommend the appointment of a commission to act jointly with one

which may be named by Her Majesty for that purpose.


Experience of the difficulties attending the determination of our admitted

line of boundary, after the occupation of the territory and its settlement

by those owing allegiance to the respective Governments, points to the

importance of establishing, by natural objects or other monuments, the

actual line between the territory acquired by purchase from Russia and the

adjoining possessions of Her Britannic Majesty. The region is now so

sparsely occupied that no conflicting interests of individuals or of

jurisdiction are likely to interfere to the delay or embarrassment of the

actual location of the line. If deferred until population shall enter and

occupy the territory, some trivial contest of neighbors may again array the

two Governments in antagonism. I therefore recommend the appointment of a

commission, to act jointly with one that may be appointed on the part of

Great Britain, to determine the line between our Territory of Alaska and

the conterminous possessions of Great Britain.


In my last annual message I recommended the legislation necessary on the

part of the United States to bring into operation the articles of the

treaty of Washington of May 8, 1871, relating to the fisheries and to other

matters touching the relations of the United States toward the British

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

legislation should be had on the part of Great Britain and its

possessions.


That legislation on the part of Great Britain and its possessions had not

then been had, and during the session of Congress a question was raised

which for the time raised a doubt whether any action by Congress in the

direction indicated would become important. This question has since been

disposed of, and I have received notice that the Imperial Parliament and

the legislatures of the provincial governments have passed laws to carry

the provisions of the treaty on the matters referred to into operation. I

therefore recommend your early adoption of the legislation in the same

direction necessary on the part of this Government.


The joint commission for determining the boundary line between the United

States and the British possessions between the Lake of the Woods and the

Rocky Mountains has organized and entered upon its work. It is desirable

that the force be increased, in order that the completion of the survey and

determination of the line may be the sooner attained. To this end I

recommend that a sufficient appropriation be made.


With France, our earliest ally; Russia, the constant and steady friend of

the United States; Germany, with whose Government and people we have so

many causes of friendship and so many common sympathies, and the other

powers of Europe, our relations are maintained on the most friendly terms.


Since my last annual message the exchange has been made of the

ratifications of a treaty with the Austro-Hungarian Empire relating to

naturalization; also of a treaty with the German Empire respecting consuls

and trade-marks; also of a treaty with Sweden and Norway relating to

naturalization; all of which treaties have been duly proclaimed.


Congress at its last session having made an appropriation to defray the

expense of commissioners on the part of the United States to the

International Statistical Congress at St. Petersburg, the persons appointed

in that character proceeded to their destination and attended the sessions

of the congress. Their report shall in due season be laid before you. This

congress meets at intervals of about three years, and has held its sessions

in several of the countries of Europe. I submit to your consideration the

propriety of extending an invitation to the congress to hold its next

meeting in the United States. The Centennial Celebration to be held in 1876

would afford an appropriate occasion for such meeting.


Preparations are making for the international exposition to be held during

the next year in Vienna, on a scale of very great magnitude. The tendency

of these expositions is in the direction of advanced civilization, and of

the elevation of industry and of labor, and of the increase of human

happiness, as well as of greater intercourse and good will between nations.

As this exposition is to be the first which will have been held in eastern

Europe, it is believed that American inventors and manufacturers will be

ready to avail themselves of the opportunity for the presentation of their

productions if encouraged by proper aid and protection.


At the last session of Congress authority was given for the appointment of

one or more agents to represent this Government at the exposition. The

authority thus given has been exercised, but, in the absence of any

appropriation, there is danger that the important benefits which the

occasion offers will in a large degree be lost to citizens of the United

States. I commend the subject strongly to your consideration, and recommend

that an adequate appropriation be made for the purpose.


To further aid American exhibitors at the Vienna Exposition, I would

recommend, in addition to an appropriation of money, that the Secretary of

the Navy be authorized to fit up two naval vessels to transport between our

Atlantic cities and Trieste, or the most convenient port to Vienna, and

back, their articles for exhibition.


Since your last session the President of the Mexican Republic,

distinguished by his high character and by his services to his country, has

died. His temporary successor has now been elected with great unanimity by

the people a proof of confidence on their part in his patriotism and wisdom

which it is believed will be confirmed by the results of his

administration. It is particularly desirable that nothing should be left

undone by the Government of either Republic to strengthen their relations

as neighbors and friends.


It is much to be regretted that many lawless acts continue to disturb the

quiet of the settlements on the border between our territory and that of

Mexico, and that complaints of wrongs to American citizens in various parts

of the country are made. The revolutionary condition in which the

neighboring Republic has so long been involved has in some degree

contributed to this disturbance. It is to be hoped that with a more settled

rule of order through the Republic, which may be expected from the present

Government, the acts of which just complaint is made will cease.


The proceedings of the commission under the convention with Mexico of the

4th of July, 1868, on the subject of claims, have, unfortunately, been

checked by an obstacle, for the removal of which measures have been taken

by the two Governments which it is believed will prove successful.


The commissioners appointed, pursuant to the joint resolution of Congress

of the 7th of May last, to inquire into depredations on the Texan frontier

have diligently made investigations in that quarter. Their report upon the

subject will be communicated to you. Their researches were necessarily

incomplete, partly on account of the limited appropriation made by

Congress. Mexico, on the part of that Government, has appointed a similar

commission to investigate these outrages. It is not announced officially,

but the press of that country states that the fullest investigation is

desired, and that the cooperation of all parties concerned is invited to

secure that end. I therefore recommend that a special appropriation be made

at the earliest day practicable, to enable the commissioners on the part of

the United States to return to their labors without delay.


It is with regret that I have again to announce a continuance of the

disturbed condition of the island of Cuba. No advance toward the

pacification of the discontented part of the population has been made.

While the insurrection has gained no advantages and exhibits no more of the

elements of power or of the prospects of ultimate success than were

exhibited a year ago, Spain, on the other hand, has not succeeded in its

repression, and the parties stand apparently in the same relative attitude

which they have occupied for a long time past.


This contest has lasted now for more than four years. Were its scene at a

distance from our neighborhood, we might be indifferent to its result,

although humanity could not be unmoved by many of its incidents wherever

they might occur. It is, however, at our door.


I can not doubt that the continued maintenance of slavery in Cuba is among

the strongest inducements to the continuance of this strife. A terrible

wrong is the natural cause of a terrible evil. The abolition of slavery and

the introduction of other reforms in the administration of government in

Cuba could not fail to advance the restoration of peace and order. It is

greatly to be hoped that the present liberal Government of Spain will

voluntarily adopt this view.


The law of emancipation, which was passed more than two years since, has

remained unexecuted in the absence of regulations for its enforcement. It

was but a feeble step toward emancipation, but it was the recognition of

right, and was hailed as such, and exhibited Spain in harmony with

sentiments of humanity and of justice and in sympathy with the other powers

of the Christian and civilized world.


Within the past few weeks the regulations for carrying out the law of

emancipation have been announced, giving evidence of the sincerity of

intention of the present Government to carry into effect the law of 1870. I

have not failed to urge the consideration of the wisdom, the policy, and

the justice of a more effective system for the abolition of the great evil

which oppresses a race and continues a bloody and destructive contest close

to our border, as well as the expediency and the justice of conceding

reforms of which the propriety is not questioned.


Deeply impressed with the conviction that the continuance of slavery is one

of the most active causes of the continuance of the unhappy condition in

Cuba, I regret to believe that citizens of the United States, or those

claiming to be such, are large holders in Cuba of what is there claimed as

property, but which is forbidden and denounced by the laws of the United

States. They are thus, in defiance of the spirit of our own laws,

contributing to the continuance of this distressing and sickening contest.

In my last annual message I referred to this subject, and I again recommend

such legislation as may be proper to denounce, and, if not prevent, at

least to discourage American citizens from holding or dealing in slaves.


It is gratifying to announce that the ratifications of the convention

concluded under the auspices of this Government between Spain on the one

part and the allied Republics of the Pacific on the other, providing for an

armistice, have been exchanged. A copy of the instrument is herewith

submitted. It is hoped that this may be followed by a permanent peace

between the same parties.


The differences which at one time threatened the maintenance of peace

between Brazil and the Argentine Republic it is hoped are in the way of

satisfactory adjustment.


With these States, as with the Republics of Central and of South America,

we continue to maintain the most friendly relations.


It is with regret, however, I announce that the Government of Venezuela has

made no further payments on account of the awards under the convention of

the 25th of April, 1866. That Republic is understood to be now almost, if

not quite, tranquilized. It is hoped, therefore, that it will lose no time

in providing for the unpaid balance of its debt to the United States,

which, having originated in injuries to our citizens by Venezuelan

authorities, and having been acknowledged, pursuant to a treaty, in the

most solemn form known among nations, would seem to deserve a preference

over debts of a different origin and contracted in a different manner. This

subject is again recommended to the attention of Congress for such action

as may be deemed proper.


Our treaty relations with Japan remain unchanged. An imposing embassy from

that interesting and progressive nation visited this country during the

year that is passing, but, being unprovided with powers for the signing of

a convention in this country, no conclusion in that direction was reached.

It is hoped, however, that the interchange of opinions which took place

during their stay in this country has led to a mutual appreciation of the

interests which may be promoted when the revision of the existing treaty

shall be undertaken.


In this connection I renew my recommendation of one year ago, that--


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, 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 renew the recommendation made on a previous occasion, of the transfer to

the Department of the Interior, to which they seem more appropriately to

belong, of all the powers and duties in relation to the Territories with

which the Department of State is now charged by law or by custom.


Congress from the beginning of the Government has wisely made provision for

the relief of distressed seamen in foreign countries. No similar provision,

however, has hitherto been made for the relief of citizens in distress

abroad other than seamen. It is understood to be customary with other

governments to authorize consuls to extend such relief to their citizens or

subjects in certain cases. A similar authority and an appropriation to

carry it into effect are recommended in the case of citizens of the United

States destitute or sick under such circumstances. It is well known that

such citizens resort to foreign countries in great numbers. Though most of

them are able to bear the expenses incident to locomotion, there are some

who, through accident or otherwise, become penniless, and have no friends

at home able to succor them. Persons in this situation must either perish,

cast themselves upon the charity of foreigners, or be relieved at the

private charge of our own officers, who usually, even with the most

benevolent dispositions, have nothing to spare for such purposes.


Should the authority and appropriation asked for be granted, care will be

taken so to carry the beneficence of Congress into effect that it shall not

be unnecessarily or unworthily bestowed. TREASURY.


The moneys received and covered into the Treasury during the fiscal year

ended June 30, 1872, were:


From customs - $216,370,286.77


From sales of public lands - 2,575,714.19


From internal revenue - 130,642,177.72


From tax on national-bank circulation, etc - 6,523,396.39


From Pacific railway companies - 749,861.87


From customs fines, etc - 1,136,442.34


From fees--consular, patent, lands, etc - 2,284,095.92


From miscellaneous - 412,254.71 -


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