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President[ Grover Cleveland

         Date[ December 3, 1888


To the Congress of the United States:


As you assemble for the discharge of the duties you have assumed as the

representatives of a free and generous people, your meeting is marked by an

interesting and impressive incident. With the expiration of the present

session of the Congress the first century of our constitutional existence

as a nation will be completed.


Our survival for one hundred years is not sufficient to assure us that we

no longer have dangers to fear in the maintenance, with all its promised

blessings, of a government rounded upon the freedom of the people. The time

rather admonishes us to soberly inquire whether in the past we have always

closely kept in the course of safety, and whether we have before us a way

plain and clear which leads to happiness and perpetuity.


When the experiment of our Government was undertaken, the chart adopted for

our guidance was the Constitution. Departure from the lines there laid down

is failure. It is only by a strict adherence to the direction they indicate

and by restraint within the limitations they fix that we can furnish proof

to the world of the fitness of the American people for self-government.


The equal and exact justice of which we boast as the underlying principle

of our institutions should not be confined to the relations of our citizens

to each other. The Government itself is under bond to the American people

that in the exercise of its functions and powers it will deal with the body

of our citizens in a manner scrupulously honest and fair and absolutely

just. It has agreed that American citizenship shall be the only credential

necessary to justify the claim of equality before the law, and that no

condition in life shall give rise to discrimination in the treatment of the

people by their Government.


The citizen of our Republic in its early days rigidly insisted upon full

compliance with the letter of this bond, and saw stretching out before him

a clear field for individual endeavor. His tribute to the support of his

Government was measured by the cost of its economical maintenance, and he

was secure in the enjoyment of the remaining recompense of his steady and

contented toil. In those days the frugality of the people was stamped upon

their Government, and was enforced by the free, thoughtful, and intelligent

suffrage of the citizen. Combinations, monopolies, and aggregations of

capital were either avoided or sternly regulated and restrained. The pomp

and glitter of governments less free offered no temptation and presented no

delusion to the plain people who, side by side, in friendly competition,

wrought for the ennoblement and dignity of man, for the solution of the

problem of free government, and for the achievement of the grand destiny

awaiting the land which God had given them.


A century has passed. Our cities are the abiding places of wealth and

luxury; our manufactories yield fortunes never dreamed of by the fathers of

the Republic; our business men are madly striving in the race for riches,

and immense aggregations of capital outrun the imagination in the magnitude

of their undertakings.


We view with pride and satisfaction this bright picture of our country's

growth and prosperity, while only a closer scrutiny develops a somber

shading. Upon more careful inspection we find the wealth and luxury of our

cities mingled with poverty and wretchedness and unremunerative toil. A

crowded and constantly increasing urban population suggests the

impoverishment of rural sections and discontent with agricultural pursuits.

The farmer's son, not satisfied with his father's simple and laborious

life, joins the eager chase for easily acquired wealth.


We discover that the fortunes realized by our manufacturers are no longer

solely the reward of sturdy industry and enlightened foresight, but that

they result from the discriminating favor of the Government and are largely

built upon undue exactions from the masses of our people. The gulf between

employers and the employed is constantly widening, and classes are rapidly

forming, one comprising the very rich and powerful, while in another are

found the toiling poor.


As we view the achievements of aggregated capital, we discover the

existence of trusts, combinations, and monopolies, while the citizen is

struggling far in the rear or is trampled to death beneath an iron heel.

Corporations, which should be the carefully restrained creatures of the law

and the servants of the people, are fast becoming the people's masters.


Still congratulating ourselves upon the wealth and prosperity of our

country and complacently contemplating every incident of change inseparable

from these conditions, it is our duty as patriotic citizens to inquire at

the present stage of our progress how the bond of the Government made with

the people has been kept and performed.


Instead of limiting the tribute drawn from our citizens to the necessities

of its economical administration, the Government persists in exacting from

the substance of the people millions which, unapplied and useless, lie

dormant in its Treasury. This flagrant injustice and this breach of faith

and obligation add to extortion the danger attending the diversion of the

currency of the country from the legitimate channels of business.


Under the same laws by which these results are produced the Government

permits many millions more to be added to the cost of the living of our

people and to be taken from our consumers, which unreasonably swell the

profits of a small but powerful minority.


The people must still be taxed for the support of the Government under the

operation of tariff laws. But to the extent that the mass of our citizens

are inordinately burdened beyond any useful public purpose and for the

benefit of a favored few, the Government, under pretext of an exercise of

its taxing power, enters gratuitously into partnership with these

favorites, to their advantage and to the injury of a vast majority of our

people.


This is not equality before the law.


The existing situation is injurious to the health of our entire body

politic. It stifles in those for whose benefit it is permitted all

patriotic love of country, and substitutes in its place selfish greed and

grasping avarice. Devotion to American citizenship for its own sake and for

what it should accomplish as a motive to our nation's advancement and the

happiness of all our people is displaced by the assumption that the

Government, instead of being the embodiment of equality, is but an

instrumentality through which especial and individual advantages are to be

gained.


The arrogance of this assumption is unconcealed. It appears in the sordid

disregard of all but personal interests, in the refusal to abate for the

benefit of others one iota of selfish advantage, and in combinations to

perpetuate such advantages through efforts to control legislation and

improperly influence the suffrages of the people.


The grievances of those not included within the circle of these

beneficiaries, when fully realized, will surely arouse irritation and

discontent. Our farmers, long suffering and patient, struggling in the race

of life with the hardest and most unremitting toil, will not fail to see,

in spite of misrepresentations and misleading fallacies, that they are

obliged to accept such prices for their products as are fixed in foreign

markets where they compete with the farmers of the world; that their lands

are declining in value while their debts increase, and that without

compensating favor they are forced by the action of the Government to pay

for the benefit of others such enhanced prices for the things they need

that the scanty returns of their labor fail to furnish their support or

leave no margin for accumulation.


Our workingmen, enfranchised from all delusions and no longer frightened by

the cry that their wages are endangered by a just revision of our tariff

laws, will reasonably demand through such revision steadier employment,

cheaper means of living in their homes, freedom for themselves and their

children from the doom of perpetual servitude, and an open door to their

advancement beyond the limits of a laboring class. Others of our citizens,

whose comforts and expenditures are measured by moderate salaries and fixed

incomes, will insist upon the fairness and justice of cheapening the cost

of necessaries for themselves and their families.


When to the selfishness of the beneficiaries of unjust discrimination under

our laws there shall be added the discontent of those who suffer from such

discrimination, we will realize the fact that the beneficent purposes of

our Government, dependent upon the patriotism and contentment of our

people, are endangered.


Communism is a hateful thing and a menace to peace and organized

government; but the communism of combined wealth and capital, the outgrowth

of overweening cupidity and selfishness, which insidiously undermines the

justice and integrity of free institutions, is not less dangerous than the

communism of oppressed poverty and toil, which, exasperated by injustice

and discontent, attacks with wild disorder the citadel of rule.


He mocks the people who proposes that the Government shall protect the rich

and that they in turn will care for the laboring poor. Any intermediary

between the people and their Government or the least delegation of the care

and protection the Government owes to the humblest citizen in the land

makes the boast of free institutions a glittering delusion and the

pretended boon of American citizenship a shameless imposition.


A just and sensible revision of our tariff laws should be made for the

relief of those of our countrymen who suffer under present conditions. Such

a revision should receive the support of all who love that justice and

equality due to American citizenship; of all who realize that in this

justice and equality our Government finds its strength and its power to

protect the citizen and his property; of all who believe that the contented

competence and comfort of many accord better with the spirit of our

institutions than colossal fortunes unfairly gathered in the hands of a

few; of all who appreciate that the forbearance and fraternity among our

people, which recognize the value of every American interest, are the

surest guaranty of our national progress, and of all who desire to see the

products of American skill and ingenuity in every market of the world, with

a resulting restoration of American commerce.


The necessity of the reduction of our revenues is so apparent as to be

generally conceded, but the means by which this end shall be accomplished

and the sum of direct benefit which shall result to our citizens present a

controversy of the utmost importance. There should be no scheme accepted as

satisfactory by which the burdens of the people are only apparently

removed. Extravagant appropriations of public money, with all their

demoralizing consequences, should not be tolerated, either as a means of

relieving the Treasury of its present surplus or as furnishing pretext for

resisting a proper reduction in tariff rates. Existing evils and injustice

should be honestly recognized, boldly met, and effectively remedied. There

should be no cessation of the struggle until a plan is perfected, fair and

conservative toward existing industries, but which will reduce the cost to

consumers of the necessaries of life, while it provides for our

manufacturers the advantage of freer raw materials and permits no injury to

the interests of American labor.


The cause for which the battle is waged is comprised within lines clearly

and distinctly defined. It should never be compromised. It is the people's

cause.


It can not be denied that the selfish and private interests which are so

persistently heard when efforts are made to deal in a just and

comprehensive manner with our tariff laws are related to, if they are not

responsible for, the sentiment largely prevailing among the people that the

General Government is the fountain of individual and private aid; that it

may be expected to relieve with paternal care the distress of citizens and

communities, and that from the fullness of its Treasury it should, upon the

slightest possible pretext of promoting the general good, apply public

funds to the benefit of localities and individuals. Nor can it be denied

that there is a growing assumption that, as against the Government and in

favor of private claims and interests, the usual rules and limitations of

business principles and just dealing should be waived.


These ideas have been unhappily much encouraged by legislative

acquiescence. Relief from contracts made with the Government is too easily

accorded in favor of the citizen; the failure to support claims against the

Government by proof is often supplied by no better consideration than the

wealth of the Government and the poverty of the claimant; gratuities in the

form of pensions are granted upon no other real ground than the needy

condition of the applicant, or for reasons less valid; and large sums are

expended for public buildings and other improvements upon representations

scarcely claimed to be related to public needs and necessities.


The extent to which the consideration of such matters subordinate and

postpone action upon subjects of great public importance, but involving no

special private or partisan interest, should arrest attention and lead to

reformation.


A few of the numerous illustrations of this condition may be stated.


The crowded condition of the calendar of the Supreme Court, and the delay

to suitors and denial of justice resulting therefrom, has been strongly

urged upon the attention of the Congress, with a plan for the relief of the

situation approved by those well able to judge of its merits. While this

subject remains without effective consideration, many laws have been passed

providing for the holding of terms of inferior courts at places to suit the

convenience of localities, or to lay the foundation of an application for

the erection of a new public building.


Repeated recommendations have been submitted for the amendment and change

of the laws relating to our public lands so that their spoliation and

diversion to other uses than as homes for honest settlers might be

prevented. While a measure to meet this conceded necessity of reform

remains awaiting the action of the Congress, many claims to the public

lands and applications for their donation, in favor of States and

individuals, have been allowed.


A plan in aid of Indian management, recommended by those well informed as

containing valuable features in furtherance of the solution of the Indian

problem, has thus far failed of legislative sanction, while grants of

doubtful expediency to railroad corporations, permitting them to pass

through Indian reservations, have greatly multiplied.


The propriety and necessity of the erection of one or more prisons for the

confinement of United States convicts, and a post-office building in the

national capital, are not disputed. But these needs yet remain answered,

while scores of public buildings have been erected where their necessity

for public purposes is not apparent.


A revision of our pension laws could easily be made which would rest upon

just principles and provide for every worthy applicant. But while our

general pension laws remain confused and imperfect, hundreds of private

pension laws are annually passed, which are the sources of unjust

discrimination and popular demoralization.


Appropriation bills for the support of the Government are defaced by items

and provisions to meet private ends, and it is freely asserted by

responsible and experienced parties that a bill appropriating money for

public internal improvement would fail to meet with favor unless it

contained items more for local and private advantage than for public

benefit.


These statements can be much emphasized by an ascertainment of the

proportion of Federal legislation which either bears upon its face its

private character or which upon examination develops such a motive power.


And yet the people wait and expect from their chosen representatives such

patriotic action as will advance the welfare of the entire country; and

this expectation can only be answered by the performance of public duty

with unselfish purpose. Our mission among the nations of the earth and our

success in accomplishing the work God has given the American people to do

require of those intrusted with the making and execution of our laws

perfect devotion, above all other things, to the public good.


This devotion will lead us to strongly resist all impatience of

constitutional limitations of Federal power and to persistently check the

increasing tendency to extend the scope of Federal legislation into the

domain of State and local jurisdiction upon the plea of subserving the

public welfare. The preservation of the partitions between proper subjects

of Federal and local care and regulation is of such importance under the

Constitution, which is the law of our very existence, that no consideration

of expediency or sentiment should tempt us to enter upon doubtful ground.

We have undertaken to discover and proclaim the richest blessings of a free

government, with the Constitution as our guide. Let us follow the way it

points out; it will not mislead us. And surely no one who has taken upon

himself the solemn obligation to support and preserve the Constitution can

find justification or solace for disloyalty in the excuse that he wandered

and disobeyed in search of a better way to reach the public welfare than

the Constitution offers.


What has been said is deemed not inappropriate at a time when, from a

century's height, we view the way already trod by the American people and

attempt to discover their future path.


The seventh President of the United States--the soldier and statesman and

at all times the firm and brave friend of the people--in vindication of his

course as the protector of popular rights and the champion of true American

citizenship, declared: The ambition which leads me on is an anxious desire

and a fixed determination to restore to the people unimpaired the sacred

trust they have confided to my charge; to, heal the wounds of the

Constitution and to preserve it from further violation; to persuade my

countrymen, so far as I may, that it is not in a splendid government

supported by powerful monopolies and aristocratical establishments that

they will find happiness or their liberties protection, but in a plain

system, void of pomp, protecting all and granting favors to none,

dispensing its blessings like the dews of heaven, unseen and unfelt save in

the freshness and beauty they contribute to produce. It is such a

government that the genius of our people requires--such an one only under

which our States may remain for ages to come united, prosperous, and free.

In pursuance of a constitutional provision requiring the President from

time to time to give to the Congress information of the state of the Union,

I have the satisfaction to announce that the close of the year finds the

United States in the enjoyment of domestic tranquillity and at peace with

all the nations.


Since my last annual message our foreign relations have been strengthened

and improved by performance of international good offices and by new and

renewed treaties of amity, commerce, and reciprocal extradition of

criminals.


Those international questions which still await settlement are all

reasonably within the domain of amicable negotiation, and there is no

existing subject of dispute between the United States and any foreign power

that is not susceptible of satisfactory adjustment by frank diplomatic

treatment.


The questions between Great Britain and the United States relating to the

rights of American fishermen, under treaty and international comity, in the

territorial waters of Canada and Newfoundland, I regret to say, are not yet

satisfactorily adjusted.


These matters were fully treated in my message to the Senate of February 20

1888, together with which a convention, concluded under my authority with

Her Majesty's Government on the 15th of February last, for the removal of

all causes of misunderstanding, was submitted by me for the approval of the

Senate.


This treaty having been rejected by the Senate, I transmitted a message to

the Congress on the 23d of August last reviewing the transactions and

submitting for consideration certain recommendations for legislation

concerning the important questions involved.


Afterwards, on the 12th of September, in response to a resolution of the

Senate, I again communicated fully all the information in my possession as

to the action of the government of Canada affecting the commercial

relations between the Dominion and the United States, including the

treatment of American fishing vessels in the ports and waters of British

North America.


These communications have all been published, and therefore opened to the

knowledge of both Houses of Congress, although two were addressed to the

Senate alone.


Comment upon or repetition of their contents would be superfluous, and I am

not aware that anything has since occurred which should be added to the

facts therein stated. Therefore I merely repeat, as applicable to the

present time, the statement which will be found in my message to the Senate

of September 12 last, that--Since March 3, 1887, no case has been reported

to the Department of State wherein complaint was made of unfriendly or

unlawful treatment of American fishing vessels on the part of the Canadian

authorities in which reparation was not promptly and satisfactorily

obtained by the United States consul-general at Halifax. Having essayed in

the discharge of my duty to procure by negotiation the settlement of a

long-standing cause of dispute and to remove a constant menace to the good

relations of the two countries, and continuing to be of opinion that the

treaty of February last, which failed to receive the approval of the

Senate, did supply "a satisfactory, practical, and final adjustment, upon a

basis honorable and just to both parties, of the difficult and vexed

question to which it related," and having subsequently and unavailingly

recommended other legislation to Congress which I hoped would suffice to

meet the exigency created by the rejection of the treaty, I now again

invoke the earnest and immediate attention of the Congress to the condition

of this important question as it now stands before them and the country,

and for the settlement of which I am deeply solicitous.


Near the close of the month of October last occurrences of a deeply

regrettable nature were brought to my knowledge, which made it my painful

but imperative duty to obtain with as little delay as possible a new

personal channel of diplomatic intercourse in this country with the

Government of Great Britain.


The correspondence in relation to this incident will in due course be laid

before you, and will disclose the unpardonable conduct of the official

referred to in his interference by advice and counsel with the suffrages of

American citizens in the very crisis of the Presidential election then near

at hand, and also in his subsequent public declarations to justify his

action, superadding impugnment of the Executive and Senate of the United

States in connection with important questions now pending in controversy

between the two Governments.


The offense thus committed was most grave, involving disastrous

possibilities to the good relations of the United States and Great Britain,

constituting a gross breach of diplomatic privilege and an invasion of the

purely domestic affairs and essential sovereignty of the Government to

which the envoy was accredited.


Having first fulfilled the just demands of international comity by

affording full opportunity for Her Majesty's Government to act in relief of

the situation, I considered prolongation of discussion to be unwarranted,

and thereupon declined to further recognize the diplomatic character of the

person whose continuance in such function would destroy that mutual

confidence which is essential to the good understanding of the two

Governments and was inconsistent with the welfare and self-respect of the

Government of the United States.


The usual interchange of communication has since continued through Her

Majesty's legation in this city.


My endeavors to establish by international cooperation measures for the

prevention of the extermination of fur seals in Bering Sea have not been

relaxed, and I have hopes of being enabled shortly to submit an effective

and satisfactory conventional projet with the maritime powers for the

approval of the Senate.


The coastal boundary between our Alaskan possessions and British Columbia,

I regret to say, has not received the attention demanded by its importance,

and which on several occasions heretofore I have had the honor to recommend

to the Congress.


The admitted impracticability, if not impossibility, of making an accurate

and precise survey and demarcation of the boundary line as it is recited in

the treaty with Russia under which Alaska was ceded to the United States

renders it absolutely requisite for the prevention of international

jurisdictional complications that adequate appropriation for a

reconnoissance and survey to obtain proper knowledge of the locality and

the geographical features of the boundary should be authorized by Congress

with as little delay as possible.


Knowledge to be only thus obtained is an essential prerequisite for

negotiation for ascertaining a common boundary, or as preliminary to any

other mode of settlement.


It is much to be desired that some agreement should be reached with Her

Majesty's Government by which the damages to life and property on the Great

Lakes may be alleviated by removing or humanely regulating the obstacles to

reciprocal assistance to wrecked or stranded vessels.


The act of June 19, 1878, which offers to Canadian vessels free access to

our inland waters in aid of wrecked or disabled vessels, has not yet become

effective through concurrent action by Canada.


The due protection of our citizens of French origin or descent from claim

of military service in the event of their returning to or visiting France

has called forth correspondence which was laid before you at the last

session.


In the absence of conventional agreement as to naturalization, which is

greatly to be desired, this Government sees no occasion to recede from the

sound position it has maintained not only with regard to France, but as to

all countries with which the United States have not concluded special

treaties.


Twice within the last year has the imperial household of Germany been

visited by death; and I have hastened to express the sorrow of this people,

and their appreciation of the lofty character of the late aged Emperor

William, and their sympathy with the heroism under suffering of his son the

late Emperor Frederick.


I renew my recommendation of two years ago for the passage of a bill for

the refunding to certain German steamship lines of the interest upon

tonnage dues illegally exacted.


On the 12th [2d] of April last I laid before the House of Representatives

full information respecting our interests in Samoa; and in the subsequent

correspondence on the same subject, which will be laid before you in due

course, the history of events in those islands will be found.


In a message accompanying my approval, on the 1st day of October last, of a

bill for the exclusion of Chinese laborers, I laid before Congress full

information and all correspondence touching the negotiation of the treaty

with China concluded at this capital on the 12th day of March, 1888, and

which, having been confirmed by the Senate with certain amendments, was

rejected by the Chinese Government. This message contained a recommendation

that a sum of money be appropriated as compensation to Chinese subjects who

had suffered injuries at the hands of lawless men within our jurisdiction.

Such appropriation having been duly made, the fund awaits reception by the

Chinese Government.


It is sincerely hoped that by the cessation of the influx of this class of

Chinese subjects, in accordance with the expressed wish of both

Governments, a cause of unkind feeling has been permanently removed.


On the 9th of August, 1887, notification was given by the Japanese minister

at this capital of the adjournment of the conference for the revision of

the treaties of Japan with foreign powers, owing to the objection of his

Government to the provision in the draft jurisdictional convention which

required the submission of the criminal code of the Empire to the powers in

advance of its becoming operative. This notification was, however,

accompanied with an assurance of Japan's intention to continue the work of

revision.


Notwithstanding this temporary interruption of negotiations, it is hoped

that improvements may soon be secured in the jurisdictional system as

respects foreigners in Japan, and relief afforded to that country from the

present undue and oppressive foreign control in matters of commerce.


I earnestly recommend that relief be provided for the injuries accidentally

caused to Japanese subjects in the island Ikisima by the target practice of

one of our vessels.


A diplomatic mission from Korea has been received, and the formal

intercourse between the two countries contemplated by the treaty of 1882 is

now established.


Legislative provision is hereby recommended to organize and equip consular

courts in Korea.


Persia has established diplomatic representation at this capital, and has

evinced very great interest in the enterprise and achievements of our

citizens. I am therefore hopeful that beneficial commercial relations

between the two countries may be brought about.


I announce with sincere regret that Hayti has again become the theater of

insurrection, disorder, and bloodshed. The titular government of president

Saloman has been forcibly overthrown and he driven out of the country to

France, where he has since died.


The tenure of power has been so unstable amid the war of factions that has

ensued since the expulsion of President Saloman that no government

constituted by the will of the Haytian people has been recognized as

administering responsibly the affairs of that country. Our representative

has been instructed to abstain from interference between the warring

factions, and a vessel of our Navy has been sent to Haytian waters to

sustain our minister and for the protection of the persons and property of

American citizens.


Due precautions have been taken to enforce our neutrality laws and prevent

our territory from becoming the base of military supplies for either of the

warring factions.


Under color of a blockade, of which no reasonable notice had been given,

and which does not appear to have been efficiently maintained, a seizure of

vessels under the American flag has been reported, and in consequence

measures to prevent and redress any molestation of our innocent merchantmen

have been adopted.


Proclamation was duly made on the 9th day of November, 1887, of the

conventional extensions of the treaty of June 3, 1875, with Hawaii, under

which relations of such special and beneficent intercourse have been

created.


In the vast field of Oriental commerce now unfolded from our Pacific

borders no feature presents stronger recommendations for Congressional

action than the establishment of communication by submarine telegraph with

Honolulu.


The geographical position of the Hawaiian group in relation to our Pacific

States creates a natural interdependency and mutuality of interest which

our present treaties were intended to foster, and which make close

communication a logical and commercial necessity.


The wisdom of concluding a treaty of commercial reciprocity with Mexico has

been heretofore stated in my messages to Congress, and the lapse of time

and growth of commerce with that close neighbor and sister Republic confirm

the judgment so expressed.


The precise relocation of our boundary line is needful, and adequate

appropriation is now recommended.


It is with sincere satisfaction that I am enabled to advert to the spirit

of good neighborhood and friendly cooperation and conciliation that has

marked the correspondence and action of the Mexican authorities in their

share of the task of maintaining law and order about the line of our common

boundary.


The long-pending boundary dispute between Costa Rica and Nicaragua was

referred to my arbitration, and by an award made on the 22d of March last

the question has been finally settled to the expressed satisfaction of both

of the parties in interest.


The Empire of Brazil, in abolishing the last vestige of slavery among

Christian nations, called forth the earnest congratulations of this

Government in expression of the cordial sympathies of our people.


The claims of nearly all other countries against Chile growing out of her

late war with Bolivia and Peru have been disposed of, either by arbitration

or by a lump settlement. Similar claims of our citizens will continue to be

urged upon the Chilean Government, and it is hoped will not be subject to

further delays.


A comprehensive treaty of amity and commerce with Peru was proclaimed on

November 7 last, and it is expected that under its operation mutual

prosperity and good understanding will be promoted.


In pursuance of the policy of arbitration, a treaty to settle the claim of

Santos, an American citizen, against Ecuador has been concluded under my

authority, and will be duly submitted for the approval of the Senate.


Like disposition of the claim of Carlos Butterfield against Denmark and of

Van Bokkelen against Hayti will probably be made, and I trust the principle

of such settlements may be extended in practice under the approval of the

Senate.


Through unforeseen causes, foreign to the will of both Governments, the

ratification of the convention of December 5, 1885, with Venezuela, for the

rehearing of claims of citizens of the United States under the treaty of

1866, failed of exchange within the term provided, and a supplementary

convention, further extending the time for exchange of ratifications and

explanatory of an ambiguous provision of the prior convention, now awaits

the advice and consent of the Senate.


Although this matter, in the stage referred to, concerns only the

concurrent treaty-making power of one branch of Congress, I advert to it in

view of the interest repeatedly and conspicuously shown by you in your

legislative capacity in favor of a speedy and equitable adjustment of the

questions growing out of the discredited judgments of the previous mixed

commission of Caracas. With every desire to do justice to the

representations of Venezuela in this regard, the time seems to have come to

end this matter, and I trust the prompt confirmation by both parties of the

supplementary action referred to will avert the need of legislative or

other action to prevent the longer withholding of such rights of actual

claimants as may be shown to exist.


As authorized by the Congress, preliminary steps have been taken for the

assemblage at this capital during the coming year of the representatives of

South and Central American States, together with those of Mexico, Hayti,

and San Domingo, to discuss sundry important monetary and commercial

topics.


Excepting in those cases where, from reasons of contiguity of territory and

the existence of a common border line incapable of being guarded,

reciprocal commercial treaties may be found expedient, it is believed that

commercial policies inducing freer mutual exchange of products can be most

advantageously arranged by independent but cooperative legislation.


In the mode last mentioned the control of our taxation for revenue will be

always retained in our own hands unrestricted by conventional agreements

with other governments.


In conformity also with Congressional authority, the maritime powers have

been invited to confer in Washington in April next upon the practicability

of devising uniform rules and measures for the greater security of life and

property at sea. A disposition to accept on the part of a number of the

powers has already been manifested, and if the cooperation of the nations

chiefly interested shall be secured important results may be confidently

anticipated.


The act of June 26, 1884, and the acts amendatory thereof, in relation to

tonnage duties, have given rise to extended correspondence with foreign

nations with whom we have existing treaties of navigation and commerce, and

have caused wide and regrettable divergence of opinion in relation to the

imposition of the duties referred to. These questions are important, and I

shall make them the subject of a special and more detailed communication at

the present session.


With the rapid increase of immigration to our shores and the facilities of

modern travel, abuses of the generous privileges afforded by our

naturalization laws call for their careful revision.


The easy and unguarded manner in which certificates of American citizenship

can now be obtained has induced a class, unfortunately large, to avail

themselves of the opportunity to become absolved from allegiance to their

native land, and yet by a foreign residence to escape any just duty and

contribution of service to the country of their proposed adoption. Thus,

while evading the duties of citizenship to the United States, they may make

prompt claim for its national protection and demand its intervention in

their behalf. International complications of a serious nature arise, and

the correspondence of the State Department discloses the great number and

complexity of the questions which have been raised.


Our laws regulating the issue of passports should be carefully revised, and

the institution of a central bureau of registration at the capital is again

strongly recommended. By this means full particulars of each case of

naturalization in the United States would be secured and properly indexed

and recorded, and thus many cases of spurious citizenship would be detected

and unjust responsibilities would be avoided.


The reorganization of the consular service is a matter of serious

importance to our national interests. The number of existing principal

consular offices is believed to be greater than is at all necessary for the

conduct of the public business. It need not be our policy to maintain more

than a moderate number of principal offices, each supported by a salary

sufficient to enable the incumbent to live in comfort, and so distributed

as to secure the convenient supervision, through subordinate agencies, of

affairs over a considerable district.


I repeat the recommendations heretofore made by me that the appropriations

for the maintenance of our diplomatic and consular service should be

recast; that the so-called notarial or unofficial fees, which our

representatives abroad are now permitted to treat as personal perquisites,

should be forbidden; that a system of consular inspection should be

instituted, and that a limited number of secretaries of legation at large

should be authorized.


Preparations for the centennial celebration, on April 30, 1889, of the

inauguration of George Washington as President of the United States, at the

city of New York, have been made by a voluntary organization of the

citizens of that locality, and believing that an opportunity should be

afforded for the expression of the interest felt throughout the country in

this event, I respectfully recommend fitting and cooperative action by

Congress on behalf of the people of the United States.


The report of the Secretary of the Treasury exhibits in detail the

condition of our national finances and the operations of the several

branches of the Government related to his Department.


The total ordinary revenues of the Government for the fiscal year ended

June 30, 1888, amounted to $379,266,074.76, of which $219,091,173.63 was

received from customs duties and $124,296,871.98 from internal revenue

taxes.


The total receipts from all sources exceeded those for the fiscal year

ended June 30, 1887, by $7,862,797.10.


The ordinary expenditures of the Government for the fiscal year ending June

30, 1888, were $259,653,958.67, leaving a surplus of $119,612,116.09.


The decrease in these expenditures as compared with the fiscal year ended

June 30, 1887, was $8,278,221.30, notwithstanding the payment of more than

$5,000,000 for pensions in excess of what was paid for that purpose in the

latter-mentioned year.


The revenues of the Government for the year ending June 30, 1889,

ascertained for the quarter ended September 30, 1888, and estimated for the

remainder of the time, amount to $377,000,000, and the actual and estimated

ordinary expenditures for the same year are $273,000,000, leaving an

estimated surplus of $104,000,000.


The estimated receipts for the year ending June 30, 1890, are $377,000,000,

and the estimated ordinary expenditures for the same time are

$275,767,488.34, showing a surplus of $101,232,511.66.


The foregoing statements of surplus do not take into account the sum

necessary to be expended to meet the requirements of the sinking-fund act,

amounting to more than $47,000,000 annually.


The cost of collecting the customs revenues for the last fiscal year was

2.44 per cent; for the year 1885 it was 3.77 per cent.


The excess of internal-revenue taxes collected during the last fiscal year

over those collected for the year ended June 30, 1887, was $5,489,174.26,

and the cost of collecting this revenue decreased from 3.4 per cent in 1887

to less than 3.2 per cent for the last year. The tax collected on

oleomargarine was $723,948.04 for the year ending June 30, 1887, and

$864,139.88 for the following year.


The requirements of the sinking-fund act have been met for the year ended

June 30, 1888, and for the current year also, by the purchase of bonds.

After complying with this law as positively required, and bonds sufficient

for that purpose had been bought at a premium, it was not deemed prudent to

further expend the surplus in such purchases until the authority to do so

should be more explicit. A resolution, however, having been passed by both

Houses of Congress removing all doubt as to Executive authority, daily

purchases of bonds were commenced on the 23d day of April, 1888, and have

continued until the present time. By this plan bonds of the Government not

yet due have been purchased up to and including the 30th day of November,

1888, amounting to $94,700,400, the premium paid thereon amounting to

$17,508,613.08.


The premium added to the principal of these bonds represents an investment

yielding about 2 per cent interest for the time they still had to run, and

the saving to the Government represented by the difference between the

amount of interest at 2 per cent upon the sum paid for principal and

premium and what it would have paid for interest at the rate specified in

the bonds if they had run to their maturity is about $27,165,000.


At first sight this would seem to be a profitable and sensible transaction

on the part of the Government, but, as suggested by the Secretary of the

Treasury, the surplus thus expended for the purchase of bonds was money

drawn from the people in excess of any actual need of the Government and

was so expended rather than allow it to remain idle in the Treasury. If

this surplus, under the operation of just and equitable laws, had been left

in the hands of the people, it would have been worth in their business at

least 6 per cent per annum. Deducting from the amount of interest upon the

principal and premium of these bonds for the time they had to run at the

rate of 6 per cent the saving of 2 per cent made for the people by the

purchase of such bonds, the loss will appear to be $55,760,000.


This calculation would seem to demonstrate that if excessive and

unnecessary taxation is continued and the Government is forced to pursue

this policy of purchasing its own bonds at the premiums which it will be

necessary to pay, the loss to the people will be hundreds of millions of

dollars.


Since the purchase of bonds was undertaken as mentioned nearly all that

have been offered were at last accepted. It has been made quite apparent

that the Government was in danger of being subjected to combinations to

raise their price, as appears by the instance cited by the Secretary of the

offering of bonds of the par value of only $326,000 so often that the

aggregate of the sums demanded for their purchase amounted to more than $

19,700,000.


Notwithstanding the large sums paid out in the purchase of bonds, the

surplus in the Treasury on the 30th day of November, 1888, was

$52,234,610.01, after deducting about $20,000,000 just drawn out for the

payment of pensions.


At the close of the fiscal year ended June 30, 1887, there had been coined

under the compulsory silver-coinage act $266,988,280 in silver dollars,

$55,504,310 of which were in the hands of the people.


On the 30th day of June, 1888, there had been coined $299,708,790; and of

this $55,829,303 was in circulation in coin, and $200,387,376 in silver

certificates, for the redemption of which silver dollars to that amount

were held by the Government.


On the 30th day of November, 1888, $312,570,990 had been coined,

$60,970,990 of the silver dollars were actually in circulation, and

$237,418,346 in certificates.


The Secretary recommends the suspension of the further coinage of silver,

and in such recommendation I earnestly concur.


For further valuable information and timely recommendations I ask the

careful attention of the Congress to the Secretary's report.


The Secretary of War reports that the Army at the date of the last

consolidated returns consisted of 2,189 officers and 24,549 enlisted men.


The actual expenditures of the War Department for the fiscal year ended

June 30, 1888, amounted to $41,165,107.07, of which sum $9,158,516.63 was

expended for public works, including river and harbor improvements.


"The Board of Ordnance and Fortifications" provided for under the act

approved September 22 last was convened October 30, 1888, and plans and

specifications for procuring forgings for 8, 10, and 12 inch guns, under

provisions of section 4, and also for procuring 12-inch breech-loading

mortars, cast iron, hooped with steel, under the provisions of section 5 of

the said act, were submitted to the Secretary of War for reference to the

board, by the Ordnance Department, on the same date.


These plans and specifications having been promptly approved by the board

and the Secretary of War, the necessary authority to publish advertisements

inviting proposals in the newspapers throughout the country was granted by

the Secretary on November 12, and on November 13 the advertisements were

sent out to the different newspapers designated. The bids for the steel

forgings are to be opened on December 20, 1888, and for the mortars on

December 15, 1888.


A board of ordnance officers was convened at the Watervliet Arsenal on

October 4, 1888, to prepare the necessary plans and specifications for the

establishment of an army gun factory at that point. The preliminary report

of this board, with estimates for shop buildings and officers' quarters,

was approved by the Board of Ordnance and Fortifications November 6 and 8.

The specifications and form of advertisement and instructions to bidders

have been prepared, and advertisements inviting proposals for the

excavations for the shop building and for erecting the two sets of

officers' quarters have been published. The detailed drawings and

specifications for the gun-factory building are well in hand, and will be

finished within three or four months, when bids will be invited for the

erection of the building. The list of machines, etc., is made out, and it

is expected that the plans for the large lathes, etc., will be completed

within about four months, and after approval by the Board of Ordnance and

Fortifications bids for furnishing the same will be invited. The machines

and other fixtures will be completed as soon as the shop is in readiness to

receive them, probably about July, 1890.


Under the provisions of the Army bill for the procurement of pneumatic

dynamite guns, the necessary specifications are now being prepared, and

advertisements for proposals will issue early in December. The guns will

probably be of 15 inches caliber and fire a projectile that will carry a

charge each of about 500 pounds of explosive gelatine with full-caliber

projectiles. The guns will probably be delivered in from six to ten months

from the date of the contract, so that all the guns of this class that can

be procured under the provisions of the law will be purchased during the

year 1889.


I earnestly request that the recommendations contained in the Secretary's

report, all of which are, in my opinion, calculated to increase the

usefulness and discipline of the Army, may receive the consideration of the

Congress. Among these the proposal that there should be provided a plan for

the examination of officers to test their fitness for promotion is of the

utmost importance. This reform has been before recommended in the reports

of the Secretary, and its expediency is so fully demonstrated by the

argument he presents in its favor that its adoption should no longer be

neglected.


The death of General Sheridan in August last was a national affliction. The

Army then lost the grandest of its chiefs. The country lost a brave and

experienced soldier, a wise and discreet counselor, and a modest and

sensible man. Those who in any manner came within the range of his personal

association will never fail to pay deserved and willing homage to his

greatness and the glory of his career, but they will cherish with more

tender sensibility the loving memory of his simple, generous, and

considerate nature.


The Apache Indians, whose removal from their reservation in Arizona

followed the capture of those of their number who engaged in a bloody

and murderous raid during a part of the years 1885 and 1886, are now held

as prisoners of war at Mount Vernon Barracks, in the State of Alabama. They

numbered on the 31st day of October, the date of the last report, 83 men,

170 women, 70 boys, and 59 girls; in all, 382 persons. The commanding

officer states that they are in good health and contented, and that they

are kept employed as fully as is possible in the circumstances. The

children, as they arrive at a suitable age, are sent to the Indian schools

at Carlisle and Hampton.


Last summer some charitable and kind people asked permission to send two

teachers to these Indians for the purpose of instructing the adults as well

as such children as should be found there. Such permission was readily

granted, accommodations were provided for the teachers, and some portions

of the buildings at the barracks were made available for school purposes.

The good work contemplated has been commenced, and the teachers engaged are

paid by the ladies with whom the plan originated.


I am not at all in sympathy with those benevolent but injudicious people

who are constantly insisting that these Indians should be returned to their

reservation. Their removal was an absolute necessity if the lives and

property of citizens upon the frontier are to be at all regarded by the

Government. Their continued restraint at a distance from the scene of their

repeated and cruel murders and outrages is still necessary. It is a

mistaken philanthropy, every way injurious, which prompts the desire to see

these savages returned to their old haunts. They are in their present

location as the result of the best judgment of those having official

responsibility in the matter, and who are by no means lacking in kind

consideration for the Indians. A number of these prisoners have forfeited

their lives to outraged law and humanity. Experience has proved that they

are dangerous and can not be trusted. This is true not only of those who on

the warpath have heretofore actually been guilty of atrocious murder, but

of their kindred and friends, who, while they remained upon their

reservation, furnished aid and comfort to those absent with bloody intent.


These prisoners should be treated kindly and kept in restraint far from the

locality of their former reservation; they should be subjected to efforts

calculated to lead to their improvement and the softening of their savage

and cruel instincts, but their return to their old home should be

persistently resisted.


The Secretary in his report gives a graphic history of these Indians, and

recites with painful vividness their bloody deeds and the unhappy failure

of the Government to manage them by peaceful means. It will be amazing if a

perusal of this history will allow the survival of a desire for the return

of these prisoners to their reservation upon sentimental or any other

grounds.


The report of the Secretary of the Navy demonstrates very intelligent

management in that important Department, and discloses the most

satisfactory progress in the work of reconstructing the Navy made during

the past year. Of the ships in course of construction five, viz, the

Charleston, Baltimore, Yorktown, Vesuvius, and the Petrel, have in that

time been launched and are rapidly approaching completion; and in addition

to the above, the Philadelphia, the San Francisco, the Newark, the

Bennington, the Concord, and the Herreshoff torpedo boat are all under

contract for delivery to the Department during the next year. The progress

already made and being made gives good ground for the expectation that

these eleven vessels will be incorporated as part of the American Navy

within the next twelve months.


The report shows that notwithstanding the large expenditures for new

construction and the additional labor they involve the total ordinary or

current expenditures of the Department for the three years ending June 30,

1888, are less by more than 20 per cent than such expenditures for the

three years ending June 30, 1884.


The various steps which have been taken to improve the business methods of

the Department are reviewed by the Secretary. The purchasing of supplies

has been consolidated and placed under a responsible bureau head. This has

resulted in the curtailment of open purchases, which in the years 1884 and

1885 amounted to over 50 per cent of all the purchases of the Department,

to less than 11 per cent; so that at the present time about 90 per cent of

the total departmental purchases are made by contract and after

competition. As the expenditures on this account exceed an average of

$2,000,000 annually, it is evident that an important improvement in the

system has been inaugurated and substantial economies introduced.


The report of the Postmaster-General shows a marked increase of business in

every branch of the postal service.


The number of post-offices on July 1, 1888, was 57,376, an increase of

6,124 in three years and of 2,219 for the last fiscal year. The

latter-mentioned increase is classified as follows:


New England States -


Middle States - 181


Southern States and Indian Territory (41) - 1,406


The States and Territories of the Pacific Coast - 190


The ten States and Territories of the West and Northwest - 435


District of Columbia - 2 -


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