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President[ Rutherford B. Hayes

         Date[ December 6, 1880


Fellow-Citizens of the Senate and House of Representatives:


I congratulate you on the continued and increasing prosperity of our

country. By the favor of Divine Providence we have been blessed during the

past year with health, with abundant harvests, with profitable employment

for all our people, and with contentment at home, and with peace and

friendship with other nations. The occurrence of the twenty-fourth election

of Chief Magistrate has afforded another opportunity to the people of the

United States to exhibit to the world a significant example of the peaceful

and safe transmission of the power and authority of government from the

public servants whose terms of office are about to expire to their newly

chosen successors. This example can not fail to impress profoundly

thoughtful people of other countries with the advantages which republican

institutions afford. The immediate, general, and cheerful acquiescence of

all good citizens in the result of the election gives gratifying assurance

to our country and to its friends throughout the world that a government

based on the free consent of an intelligent and patriotic people possesses

elements of strength, stability, and permanency not found in any other form

of government.


Continued opposition to the full and free enjoyment of the rights of

citizenship conferred upon the colored people by the recent amendments to

the Constitution still prevails in several of the late slaveholding States.

It has, perhaps, not been manifested in the recent election to any large

extent in acts of violence or intimidation. It has, however, by fraudulent

practices in connection with the ballots, with the regulations as to the

places and manner of voting, and with counting, returning, and canvassing

the votes cast, been successful in defeating the exercise of the right

preservative of all rights--the right of suffrage--which the Constitution

expressly confers upon our enfranchised citizens.


It is the desire of the good people of the whole country that sectionalism

as a factor in our politics should disappear. They prefer that no section

of the country should be united in solid opposition to any other section.

The disposition to refuse a prompt and hearty obedience to the equal-rights

amendments to the Constitution is all that now stands in the way of a

complete obliteration of sectional lines in our political contests. As long

as either of these amendments is flagrantly violated or disregarded, it is

safe to assume that the people who placed them in the Constitution, as

embodying the legitimate results of the war for the Union, and who believe

them to be wise and necessary, will continue to act together and to insist

that they shall be obeyed. The paramount question still is as to the

enjoyment of the fight by every American citizen who has the requisite

qualifications to freely cast his vote and to have it honestly counted.

With this question rightly settled, the country will be relieved of the

contentions of the past; bygones will indeed be bygones, and political and

party issues, with respect to economy and efficiency of administration,

internal improvements, the tariff, domestic taxation, education, finance,

and other important subjects, will then receive their full share of

attention; but resistance to and nullification of the results of the war

will unite together in resolute purpose for their support all who maintain

the authority of the Government and the perpetuity of the Union, and who

adequately appreciate the value of the victory achieved. This determination

proceeds from no hostile sentiment or feeling to any part of the people of

our country or to any of their interests. The inviolability of the

amendments rests upon the fundamental principle of our Government. They are

the solemn expression of the will of the people of the United States.


The sentiment that the constitutional rights of all our citizens must be

maintained does not grow weaker. It will continue to control the Government

of the country. Happily, the history of the late election shows that in

many parts of the country where opposition to the fifteenth amendment has

heretofore prevailed it is diminishing, and is likely to cease altogether

if firm and well-considered action is taken by Congress. I trust the House

of Representatives and the Senate, which have the right to judge of the

elections, returns, and qualifications of their own members, will see to it

that every case of violation of the letter or spirit of the fifteenth

amendment is thoroughly investigated, and that no benefit from such

violation shall accrue to any person or party. It will be the duty of the

Executive, with sufficient appropriations for the purpose, to prosecute

unsparingly all who have been engaged in depriving citizens of the rights

guaranteed to them by the Constitution.


It is not, however, to be forgotten that the best and surest guaranty of

the primary rights of citizenship is to be found in that capacity for

self-protection which can belong only to a people whose right to universal

suffrage is supported by universal education. The means at the command of

the local and State authorities are in many cases wholly inadequate to

furnish free instruction to all who need it. This is especially true where

before emancipation the education of the people was neglected or prevented,

in the interest of slavery. Firmly convinced that the subject of popular

education deserves the earnest attention of the people of the whole

country, with a view to wise and comprehensive action by the Government of

the United States, I respectfully recommend that Congress, by suitable

legislation and with proper safeguards, supplement the local educational

funds in the several States where the grave duties and responsibilities of

citizenship have been devolved on uneducated people by devoting to the

purpose grants of the public lands and, if necessary, by appropriations

from the Treasury of the United States. Whatever Government can fairly do

to promote free popular education ought to be done. Wherever general

education is found, peace, virtue, and social order prevail and civil and

religious liberty are secure.


In my former annual messages I have asked the attention of Congress to the

urgent necessity of a reformation of the civil-service system of the

Government. My views concerning the dangers of patronage, or appointments

for personal or partisan considerations, have been strengthened by my

observation and experience in the Executive office, and I believe these

dangers threaten the stability of the Government. Abuses so serious in

their nature can not be permanently tolerated. They tend to become more

alarming with the enlargement of administrative service, as the growth of

the country in population increases the number of officers and placemen

employed.


The reasons are imperative for the adoption of fixed rules for the

regulation of appointments, promotions, and removals, establishing a

uniform method having exclusively in view in every instance the attainment

of the best qualifications for the position in question. Such a method

alone is consistent with the equal rights of all citizens and the most

economical and efficient administration of the public business.


Competitive examinations in aid of impartial appointments and promotions

have been conducted for some years past in several of the Executive

Departments, and by my direction this system has been adopted in the

custom-houses and post-offices of the larger cities of the country. In the

city of New York over 2,000 positions in the civil service have been

subject in their appointments and tenure of place to the operation of

published rules for this purpose during the past two years. The results of

these practical trials have been very satisfactory, and have confirmed my

opinion in favor of this system of selection. All are subjected to the same

tests, and the result is free from prejudice by personal favor or partisan

influence. It secures for the position applied for the best qualifications

attainable among the competing applicants. It is an effectual protection

from the pressure of importunity, which under any other course pursued

largely exacts the time and attention of appointing officers, to their

great detriment in the discharge of other official duties preventing the

abuse of the service for the mere furtherance of private or party purposes,

and leaving the employee of the Government, freed from the obligations

imposed by patronage, to depend solely upon merit for retention and

advancement, and with this constant incentive to exertion and improvement.


These invaluable results have been attained in a high degree in the offices

where the rules for appointment by competitive examination have been

applied.


A method which has so approved itself by experimental tests at points where

such tests may be fairly considered conclusive should be extended to all

subordinate positions under the Government. I believe that a strong and

growing public sentiment demands immediate measures for securing and

enforcing the highest possible efficiency in the civil service and its

protection from recognized abuses, and that the experience referred to has

demonstrated the feasibility of such measures.


The examinations in the custom-houses and post-offices have been held under

many embarrassments and without provision for compensation for the extra

labor performed by the officers who have conducted them, and whose

commendable interest in the improvement of the public service has induced

this devotion of time and labor without pecuniary reward. A continuance of

these labors gratuitously ought not to be expected, and without an

appropriation by Congress for compensation it is not practicable to extend

the system of examinations generally throughout the civil service. It is

also highly important that all such examinations should be conducted upon a

uniform system and under general supervision. Section 1753 of the Revised

Statutes authorizes the President to prescribe the regulations for

admission to the civil service of the United States, and for this purpose

to employ suitable persons to conduct the requisite inquiries with

reference to "the fitness of each candidate, in respect to age, health,

character, knowledge, and ability for the branch of service into which he

seeks to enter;" but the law is practically inoperative for want of the

requisite appropriation.


I therefore recommend an appropriation of $25,000 per annum to meet the

expenses of a commission, to be appointed by the President in accordance

with the terms of this section, whose duty it shall be to devise a just,

uniform, and efficient system of competitive examinations and to supervise

the application of the same throughout the entire civil service of the

Government. I am persuaded that the facilities which such a commission will

afford for testing the fitness of those who apply for office will not only

be as welcome a relief to members of Congress as it will be to the

President and heads of Departments, but that it will also greatly tend to

remove the causes of embarrassment which now inevitably and constantly

attend the conflicting claims of patronage between the legislative and

executive departments. The most effectual check upon the pernicious

competition of influence and official favoritism in the bestowal of office

will be the substitution of an open competition of merit between the

applicants, in which everyone can make his own record with the assurance

that his success will depend upon this alone.


I also recommend such legislation as, while leaving every officer as free

as any other citizen to express his political opinions and to use his means

for their advancement, shall also enable him to feel as safe as any private

citizen in refusing all demands upon his salary for political purposes. A

law which should thus guarantee true liberty and justice to all who are

engaged in the public service, and likewise contain stringent provisions

against the use of official authority to coerce the political action of

private citizens or of official subordinates, is greatly to be desired.


The most serious obstacle, however, to an improvement of the civil service,

and especially to a reform in the method of appointment and removal, has

been found to be the practice, under what is known as the spoils system, by

which the appointing power has been so largely encroached upon by members

of Congress. The first step in the reform of the civil service must be a

complete divorce between Congress and the Executive in the matter of

appointments. The corrupting doctrine that "to the victors belong the

spoils" is inseparable from Congressional patronage as the established rule

and practice of parties in power. It comes to be understood by applicants

for office and by the people generally that Representatives and Senators

are entitled to disburse the patronage of their respective districts and

States. It is not necessary to recite at length the evils resulting from

this invasion of the Executive functions. The true principles of Government

on the subject of appointments to office, as stated in the national

conventions of the leading parties of the country, have again and again

been approved by the American people, and have not been called in question

in any quarter. These authentic expressions of public opinion upon this

all-important subject are the statement of principles that belong to the

constitutional structure of the Government. Under the Constitution the

President and heads of Departments are to make nominations for office. The

Senate is to advise and consent to appointments, and the House of

Representatives is to accuse and prosecute faithless officers. The best

interest of the public service demands that these distinctions be

respected; that Senators and Representatives, who may be judges and

accusers, should not dictate appointments to office. To this end the

cooperation of the legislative department of the Government is required

alike by the necessities of the case and by public opinion. Members of

Congress will not be relieved from the demands made upon them with

reference to appointments to office until by legislative enactment the

pernicious practice is condemned and forbidden.


It is therefore recommended that an act be passed defining the relations of

members of Congress with respect to appointment to office by the President;

and I also recommend that the provisions of section 1767 and of the

sections following of the Revised Statutes, comprising the tenure-of-office

act of March 2, 1867, be repealed.


Believing that to reform the system and methods of the civil service in our

country is one of the highest and most imperative duties of statesmanship,

and that it can be permanently done only by the cooperation of the

legislative and executive departments of the Government, I again commend

the whole subject to your considerate attention.


It is the recognized duty and purpose of the people of the United States to

suppress polygamy where it now exists in our Territories and to prevent its

extension. Faithful and zealous efforts have been made by the United States

authorities in Utah to enforce the laws against it. Experience has shown

that the legislation upon this subject, to be effective, requires extensive

modification and amendment. The longer action is delayed the more difficult

it will be to accomplish what is desired. Prompt and decided measures are

necessary. The Mormon sectarian organization which upholds polygamy has the

whole power of making and executing the local legislation of the Territory.

By its control of the grand and petit juries it possesses large influence

over the administration of justice. Exercising, as the heads of this sect

do, the local political power of the Territory, they are able to make

effective their hostility to the law of Congress on the subject of

polygamy, and, in fact, do prevent its enforcement. Polygamy will not be

abolished if the enforcement of the law depends on those who practice and

uphold the crime. It can only be suppressed by taking away the political

power of the sect which encourages and sustains it.


The power of Congress to enact suitable laws to protect the Territories is

ample. It is not a case for halfway measures. The political power of the

Mormon sect is increasing. It controls now one of our wealthiest and most

populous Territories. It is extending steadily into other Territories.

Wherever it goes it establishes polygamy and sectarian political power. The

sanctity of marriage and the family relation are the corner stone of our

American society and civilization. Religious liberty and the separation of

church and state are among the elementary ideas of free institutions. To

reestablish the interests and principles which polygamy and Mormonism have

imperiled, and to fully reopen to intelligent and virtuous immigrants of

all creeds that part of our domain which has been in a great degree closed

to general immigration by intolerant and immoral institutions, it is

recommended that the government of the Territory of Utah be reorganized.


I recommend that Congress provide for the government of Utah by a governor

and judges, or commissioners, appointed by the President and confirmed by

the Senate--a government analogous to the provisional government

established for the territory northwest of the Ohio by the ordinance of

1787. If, however, it is deemed best to continue the existing form of local

government, I recommend that the right to vote, hold office, and sit on

juries in the Territory of Utah be confined to those who neither practice

nor uphold polygamy. If thorough measures are adopted, it is believed that

within a few years the evils which now afflict Utah will be eradicated, and

that this Territory will in good time become one of the most prosperous and

attractive of the new States of the Union.


Our relations with all foreign countries have been those of undisturbed

peace, and have presented no occasion for concern as to their continued

maintenance.


My anticipation of an early reply from the British Government to the demand

of indemnity to our fishermen for the injuries suffered by that industry at

Fortune Bay in January, 1878, which I expressed in my last annual message,

was disappointed. This answer was received only in the latter part of April

in the present year, and when received exhibited a failure of accord

between the two Governments as to the measure of the inshore fishing

privilege secured to our fishermen by the treaty of Washington of so

serious a character that I made it the subject of a communication to

Congress, in which I recommended the adoption of the measures which seemed

to me proper to be taken by this Government in maintenance of the rights

accorded to our fishermen under the treaty and toward securing an indemnity

for the injury these interests had suffered. A bill to carry out these

recommendations was under consideration by the House of Representatives at

the time of the adjournment of Congress in June last.


Within a few weeks I have received a communication from Her Majesty's

Government renewing the consideration of the subject, both of the indemnity

for the injuries at Fortune Bay and of the interpretation of the treaty in

which the previous correspondence had shown the two Governments to be at

variance. Upon both these topics the disposition toward a friendly

agreement is manifested by a recognition of our right to an indemnity for

the transaction at Fortune Bay, leaving the measure of such indemnity to

further conference, and by an assent to the view of this Government,

presented in the previous correspondence, that the regulation of

conflicting interests of the shore fishery of the provincial seacoasts and

the vessel fishery of our fishermen should be made the subject of

conference and concurrent arrangement between the two Governments.


I sincerely hope that the basis may be found for a speedy adjustment of the

very serious divergence of views in the interpretation of the fishery

clauses of the treaty of Washington, which, as the correspondence between

the two Governments stood at the close of the last session of Congress,

seemed to be irreconcilable.


In the important exhibition of arts and industries which was held last year

at Sydney, New South Wales, as well as in that now in progress at

Melbourne, the United States have been efficiently and honorably

represented. The exhibitors from this country at the former place received

a large number of awards in some of the most considerable departments, and

the participation of the United States was recognized by a special mark of

distinction. In the exhibition at Melbourne the share taken by our country

is no less notable, and an equal degree of success is confidently

expected.


The state of peace and tranquillity now enjoyed by all the nations of the

continent of Europe has its favorable influence upon our diplomatic and

commercial relations with them. We have concluded and ratified a convention

with the French Republic for the settlement of claims of the citizens of

either country against the other. Under this convention a commission,

presided over by a distinguished publicist, appointed in pursuance of the

request of both nations by His Majesty the Emperor of Brazil, has been

organized and has begun its sessions in this city. A congress to consider

means for the protection of industrial property has recently been in

session in Paris, to which I have appointed the ministers of the United

States in France and in Belgium as delegates. The International Commission

upon Weights and Measures also continues its work in Paris. I invite your

attention to the necessity of an appropriation to be made in time to enable

this Government to comply with its obligations under the metrical

convention.


Our friendly relations with the German Empire continue without

interruption. At the recent International Exhibition of Fish and Fisheries

at Berlin the participation of the United States, notwithstanding the haste

with which the commission was forced to make its preparations, was

extremely successful and meritorious, winning for private exhibitors

numerous awards of a high class and for the country at large the principal

prize of honor offered by His Majesty the Emperor. The results of this

great success can not but be advantageous to this important and growing

industry. There have been some questions raised between the two Governments

as to the proper effect and interpretation of our treaties of

naturalization, but recent dispatches from our minister at Berlin show that

favorable progress is making toward an understanding in accordance with the

views of this Government, which makes and admits no distinction whatever

between the rights of a native and a naturalized citizen of the United

States. In practice the complaints of molestation suffered by naturalized

citizens abroad have never been fewer than at present.


There is nothing of importance to note in our unbroken friendly relations

with the Governments of Austria-Hungary, Russia, Portugal, Sweden and

Norway, Switzerland, Turkey, and Greece.


During the last summer several vessels belonging to the merchant marine of

this country, sailing in neutral waters of the West Indies, were fired at,

boarded, and searched by an armed cruiser of the Spanish Government. The

circumstances as reported involve not only a private injury to the persons

concerned, but also seemed too little observant of the friendly relations

existing for a century between this country and Spain. The wrong was

brought to the attention of the Spanish Government in a serious protest and

remonstrance, and the matter is undergoing investigation by the royal

authorities with a view to such explanation or reparation as may be called

for by the facts.


The commission sitting in this city for the adjudication of claims of our

citizens against the Government of Spain is, I hope, approaching the

termination of its labors.


The claims against the United States under the Florida treaty with Spain

were submitted to Congress for its action at the late session, and I again

invite your attention to this long-standing question, with a view to a

final disposition of the matter.


At the invitation of the Spanish Government, a conference has recently been

held at the city of Madrid to consider the subject of protection by foreign

powers of native Moors in the Empire of Morocco. The minister of the United

States in Spain was directed to take part in the deliberations of this

conference, the result of which is a convention signed on behalf of all the

powers represented. The instrument will be laid before the Senate for its

consideration. The Government of the United States has also lost no

opportunity to urge upon that of the Emperor of Morocco the necessity, in

accordance with the humane and enlightened spirit of the age, of putting an

end to the persecutions, which have been so prevalent in that country, of

persons of a faith other than the Moslem, and especially of the Hebrew

residents of Morocco.


The consular treaty concluded with Belgium has not yet been officially

promulgated, owing to the alteration of a word in the text by the Senate of

the United States, which occasioned a delay, during which the time allowed

for ratification expired. The Senate will be asked to extend the period for

ratification.


The attempt to negotiate a treaty of extradition with Denmark failed on

account of the objection of the Danish Government to the usual clause

providing that each nation should pay the expense of the arrest of the

persons whose extradition it asks.


The provision made by Congress at its last session for the expense of the

commission which had been appointed to enter upon negotiations with the

Imperial Government of China on subjects of great interest to the relations

of the two countries enabled the commissioners to proceed at once upon

their mission. The Imperial Government was prepared to give prompt and

respectful attention to the matters brought under negotiation, and the

conferences proceeded with such rapidity and success that on the 17th of

November last two treaties were signed at Peking, one relating to the

introduction of Chinese into this country and one relating to commerce. Mr.

Trescot, one of the commissioners, is now on his way home bringing the

treaties, and it is expected that they will be received in season to be

laid before the Senate early in January.


Our minister in Japan has negotiated a convention for the reciprocal relief

of shipwrecked seamen. I take occasion to urge once more upon Congress the

propriety of making provision for the erection of suitable fireproof

buildings at the Japanese capital for the use of the American legation and

the court-house and jail connected with it. The Japanese Government, with

great generosity and courtesy, has offered for this purpose an eligible

piece of land.


In my last annual message I invited the attention of Congress to the

subject of the indemnity funds received some years ago from China and

Japan. I renew the recommendation then made that whatever portions of these

funds are due to American citizens should be promptly paid and the residue

returned to the nations, respectively, to which they justly and equitably

belong.


The extradition treaty with the Kingdom of the Netherlands, Which has been

for some time in course of negotiation, has during the past year been

concluded and duly ratified.


Relations of friendship and amity have been established between the

Government of the United States and that of Roumania. We have sent a

diplomatic representative to Bucharest, and have received at this capital

the special envoy who has been charged by His Royal Highness Prince Charles

to announce the independent sovereignty of Roumania. We hope for a speedy

development of commercial relations between the two countries.


In my last annual message I expressed the hope that the prevalence of quiet

on the border between this country and Mexico would soon become so assured

as to justify the modification of the orders then in force to our military

commanders in regard to crossing the frontier, without encouraging such

disturbances as would endanger the peace of the two countries. Events moved

in accordance with these expectations, and the orders were accordingly

withdrawn, to the entire satisfaction of our own citizens and the Mexican

Government. Subsequently the peace of the border was again disturbed by a

savage foray under the command of the Chief Victoria, but by the combined

and harmonious action of the military forces of both countries his band has

been broken up and substantially destroyed.


There is reason to believe that the obstacles which have so long prevented

rapid and convenient communication between the United States and Mexico by

railways are on the point of disappearing, and that several important

enterprises of this character will soon be set on foot, which can not fail

to contribute largely to the prosperity of both countries.


New envoys from Guatemala, Colombia, Bolivia, Venezuela, and Nicaragua have

recently arrived at this capital, whose distinction and enlightenment

afford the best guaranty of the continuance of friendly relations between

ourselves and these sister Republics.


The relations between this Government and that of the United States of

Colombia have engaged public attention during the past year, mainly by

reason of the project of an interoceanic canal across the Isthmus of

Panama, to be built by private capital under a concession from the

Colombian Government for that purpose. The treaty obligations subsisting

between the United States and Colombia, by which we guarantee the

neutrality of the transit and the sovereignty and property of Colombia in

the Isthmus, make it necessary that the conditions under which so

stupendous a change in the region embraced in this guaranty should be

effected--transforming, as it would, this Isthmus from a barrier between

the Atlantic and Pacific oceans into a gateway and thoroughfare between

them for the navies and the merchant ships of the world--should receive the

approval of this Government, as being compatible with the discharge of

these obligations on our part and consistent with our interests as the

principal commercial power of the Western Hemisphere. The views which I

expressed in a special message to Congress in March last in relation to

this project I deem it my duty again to press upon your attention.

Subsequent consideration has but confirmed the opinion "that it is the

right and duty of the United States to assert and maintain such supervision

and authority over any interoceanic canal across the isthmus that connects

North and South America as will protect our national interest."


The war between the Republic of Chile on the one hand and the allied

Republics of Peru and Bolivia on the other still continues. This Government

has not felt called upon to interfere in a contest that is within the

belligerent rights of the parties as independent states. We have, however,

always held ourselves in readiness to aid in accommodating their

difference, and have at different times reminded both belligerents of our

willingness to render such service.


Our good offices in this direction were recently accepted by all the

belligerents, and it was hoped they would prove efficacious; but I regret

to announce that the measures which the ministers of the United States at

Santiago and Lima were authorized to take with the view to bring about a

peace were not successful. In the course of the war some questions have

arisen affecting neutral rights. In all of these the ministers of the

United States have, under their instructions, acted with promptness and

energy in protection of American interests.


The relations of the United States with the Empire of Brazil continue to be

most cordial, and their commercial intercourse steadily increases, to their

mutual advantage.


The internal disorders with which the Argentine Republic has for some time

past been afflicted, and which have more or less influenced its external

trade, are understood to have been brought to a close. This happy result

may be expected to redound to the benefit of the foreign commerce of that

Republic, as well as to the development of its vast interior resources.


In Samoa the Government of King Malietoa, under the support and recognition

of the consular representatives of the United States, Great Britain, and

Germany, seems to have given peace and tranquillity to the islands. While

it does not appear desirable to adopt as a whole the scheme of tripartite

local government which has been proposed, the common interests of the three

great treaty powers require harmony in their relations to the native frame

of government, and this may be best secured by a simple diplomatic

agreement between them. It would be well if the consular jurisdiction of

our representative at Apia were increased in extent and importance so as to

guard American interests in the surrounding and outlying islands of

Oceanica.


The obelisk generously presented by the Khedive of Egypt to the city of New

York has safely arrived in this country, and will soon be erected in that

metropolis. A commission for the liquidation of the Egyptian debt has

lately concluded its work, and this Government, at the earnest solicitation

of the Khedive, has acceded to the provisions adopted by it, which will be

laid before Congress for its information. A commission for the revision of

the judicial code of the reform tribunal of Egypt is now in session in

Cairo. Mr. Farman, consul-general, and J. M. Batchelder, esq., have been

appointed as commissioners to participate in this work. The organization of

the reform tribunals will probably be continued for another period of five

years.


In pursuance of the act passed at the last session of Congress, invitations

have been extended to foreign maritime states to join in a sanitary

conference in Washington, beginning the 1st of January. The acceptance of

this invitation by many prominent powers gives promise of success in this

important measure, designed to establish a system of international

notification by which the spread of infectious or epidemic diseases may be

more effectively checked or prevented. The attention of Congress is invited

to the necessary appropriations for carrying into effect the provisions of

the act referred to.


The efforts of the Department of State to enlarge the trade and commerce of

the United States, through the active agency of consular officers and

through the dissemination of information obtained from them, have been

unrelaxed. The interest in these efforts, as developed in our commercial

communities, and the value of the information secured by this means to the

trade and manufactures of the country were recognized by Congress at its

last session, and provision was made for the more frequent publication of

consular and other reports by the Department of State. The first issue of

this publication has now been prepared, and subsequent issues may regularly

be expected. The importance and interest attached to the reports of

consular officers are witnessed by the general demand for them by all

classes of merchants and manufacturers engaged in our foreign trade. It is

believed that the system of such publications is deserving of the approval

of Congress, and that the necessary appropriations for its continuance and

enlargement will commend itself to your consideration.


The prosperous energies of our domestic industries and their immense

production of the subjects of foreign commerce invite, and even require, an

active development of the wishes and interests of our people in that

direction. Especially important is it that our commercial relations with

the Atlantic and Pacific coasts of South America, with the West Indies and

the Gulf of Mexico, should be direct, and not through the circuit of

European systems, and should be carried on in our own bottoms. The full

appreciation of the opportunities which our front on the Pacific Ocean

gives to commerce with Japan, China, and the East Indies, with Australia

and the island groups which lie along these routes of navigation, should

inspire equal efforts to appropriate to our own shipping and to administer

by our own capital a due proportion of this trade. Whatever modifications

of our regulations of trade and navigation may be necessary or useful to

meet and direct these impulses to the enlargement of our exchanges and of

our carrying trade I am sure the wisdom of Congress will be ready to

supply. One initial measure, however, seems to me so dearly useful and

efficient that I venture to press it upon your earnest attention. It seems

to be very evident that the provision of regular steam postal communication

by aid from government has been the forerunner of the commercial

predominance of Great Britain on all these coasts and seas, a greater share

in whose trade is now the desire and the intent of our people. It is also

manifest that the efforts of other European nations to contend with Great

Britain for a share of this commerce have been successful in proportion

with their adoption of regular steam postal communication with the markets

whose trade they sought. Mexico and the States of South America are anxious

to receive such postal communication with this country and to aid in their

development. Similar cooperation may be looked for in due time from the

Eastern nations and from Australia. It is difficult to see how the lead in

this movement can be expected from private interests. In respect of foreign

commerce quite as much as in internal trade postal communication seems

necessarily a matter of common and public administration, and thus

pertaining to Government. I respectfully recommend to your prompt attention

such just and efficient measures as may conduce to the development of our

foreign commercial exchanges and the building up of our carrying trade.


In this connection I desire also to suggest the very great service which

might be expected in enlarging and facilitating our commerce on the Pacific

Ocean were a transmarine cable laid from San Francisco to the Sandwich

Islands, and thence to Japan at the north and Australia at the south. The

great influence of such means of communication on these routes of

navigation in developing and securing the due share of our Pacific Coast in

the commerce of the world needs no illustration or enforcement. It may be

that such an enterprise, useful, and in the end profitable, as it would

prove to private investment, may need to be accelerated by prudent

legislation by Congress in its aid, and I submit the matter to your careful

consideration.


An additional and not unimportant, although secondary, reason for fostering

and enlarging the Navy may be found in the unquestionable service to the

expansion of our commerce which would be rendered by the frequent

circulation of naval ships in the seas and ports of all quarters of the

globe. Ships of the proper construction and equipment to be of the greatest

efficiency in case of maritime war might be made constant and active agents

in time of peace in the advancement and protection of our foreign trade and

in the nurture and discipline of young seamen, who would naturally in some

numbers mix with and improve the crews of our merchant ships. Our merchants

at home and abroad recognize the value to foreign commerce of an active

movement of our naval vessels, and the intelligence and patriotic zeal of

our naval officers in promoting every interest of their countrymen is a

just subject of national pride.


The condition of the financial affairs of the Government, as shown by the

report of the Secretary of the Treasury, is very satisfactory. It is

believed that the present financial situation of the United States, whether

considered with respect to trade, currency, credit, growing wealth, or the

extent and variety of our resources, is more favorable than that of any

other country of our time, and has never been surpassed by that of any

country at any period of its history. All our industries are thriving; the

rate of interest is low; new railroads are being constructed; a vast

immigration is increasing our population, capital, and labor; new

enterprises in great number are in progress, and our commercial relations

with other countries are improving.


The ordinary revenues from all sources for the fiscal year ended June 30,

1880, were--


From customs - $186,522,064.60


From internal revenue - 124,009,373.92


From sales of public lands - 1,016,506.60


From tax on circulation and deposits of national banks - 7,014,971.44


From repayment of interest by Pacific Railway companies - 1,707,367.18


From sinking fund for Pacific Railway companies - 786,621.22


From customs fees, fines, penalties, etc - 1,148,800.16


From fees-consular, letters patent, and lands - 2,337,029.00


From proceeds of sales of Government property - 282,616.50


From profits on coinage, etc - 2,792,186.78


From revenues of the District of Columbia - 1,809,469.70


From miscellaneous sources - 4,099,603.88 -


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