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TUESDAY, DECEMBER 7. 1886
PRESIDENT'S UESS16E
AS SJCltT itf TO CONBKESS YES-
? TKRDAYl
To ran Covaxacs 01 ran IJkitbd 8tATta:
lit discbarge of a constitutional duty
and following a well-established prece
dent in the executive office, I herewith
transmit to the Congress; at its reassem
Ming, certain information concerning
the state.; of the Union, together with!
noli recommendations -for legislative
consideration as appear fneoessary and
expedient.
toiBtov SBUtjjom. "A j
Our i government has . eon-
tantlv maintained iter relatione - at
friendship with all other! powers and of
, neighborly interest toward those whose
SosscsBiops are antagonize to our own.
ew questions hate arisen daring the
put yesr with other governmetfts
and none of these are beyond
he reaohi of settlement that is friendly.
We are ai yet without provision for the
settlement of theelaims lof eitiiens .of
the United States against Chili for in
jories during the late wsx with Pern
and Bolivia. The mixed commissions or
ganised under the claims conventions eon
eluded bj! the Chilian government with
oertain European states hare developed
an amount of friction which wej trust
fan be avoided in the convention whieh
our representative at Santiago is autho
rised to negotiate. The eruel treatment
of inoffensive Chinese hits, I j regret to
sav. been' repeated in tome of the far
Western States and Territories sad acts
of violenee against those people beyond
the power of the loeal constituted au
thorities to prevent and difficult to pun
ish are reported even in distant Alaska.'
Much of this violenee ca be traced to
raoe prejudioo and. the fotmpetitioabf
labor, whioh cannot, however, justify
the oppression of strangers whose safety
is guaranteed by our treaty with China
equally with the most favored nations.
In opening our vast domain to alien ele
ments the purpose of our law-givers was
to invite assimilation and not to pro
vide an arena for an endless antagonism.
The paramount duty of maintaining
publie order and defending the interests
of ourownpeopUnuy require ueadop
, tion of measures of rettrietioa, but they
should not tolerate the oppreeaioa of
individuals of a special raoe. IamaOt
without assuranee that the government
of China, whose friendly disposition
towards usr I am most happy to teeog
aisewilljmeet ms half way in devising
: a eomprehensive remedy i by wkioh aa
' effective limitation of Chmes emi
grate joked to the proteietioa of thooe
Chinese subjects who remain in' this
wastry may PC secured. ' Legisla
tion is needed to execute the provisions
of our : Chinese convention of 1880,
touching the opium traffic! ' . " it
While the good will of the Colombian
government towards fur country
ii manifest,; the situation! of American
interests oil the IthmuS of Panama has
at times excited eoneernj sad . invited
friendly action looking to-jthe perform-
. anoe of the I engagements f the tire na
tions concerning the territory embraced
in the inter-oceanic transit With the
subsidence Of the Ithmian Usturbeaeef,
sad the erection of the state of Panama
into a federal district under the direct
government of the constitutional admin
istration at Bogota, 'a few order Of
things has been inaugurated, which, al
though as yet somewhat Experimental
and affording a scope for she arbitrary
exercise off power by thl delegate! ot
the national authority promisee much
improvement. 2 ' ?
The sympathy between the peo
ple of the United States -and
Prance, bora during our colonial strug
ble for independence anddntinuing to
day; has received a fresh inbulse in the
successful completion sad dediea'ion of
the colossal Statue of "Liberty ealight
, ening the World" in New tork harbor,
, the gift of Frenchmen1 to- America.
A eenveation between f the United
States sad certain other powers for the
protection ef submarine eablee "was
signed at Paris on March 1, 1884, and
has been duy rat fiad andl proclaimed
bj this government, y egre
"lnent between the high contracting par
ties this convention is to g1 into effect
the frst of January ntxt, but the legU-l
turn required for its execution in the
United Stetel has not yet been adopted J
I earnestly teeommend itsi enactment
Cases have continued o occur ;W
Germany giving rise' to mash oetrM
pondenee in relatiott tJ the privilege ol
the sojourn of our naturalised citis in
of Oexmau origin revisiting fhe land ot
their birth, yet I am happy o state that'
our relation with thu eontry have
lost mono of their accustomed eordialty.
The claims for interest upon Jthe amount
of tonnage duee illegally 1 exaeted from
certain German steamship inee were
favorably reported in both houses of
Congress at the last session, Sand I trust
will receive anal and favorable action
at an early df j. The recommendation
. contained in my last annual -meesage in
relation to a mode of settlement the
fishing rights in the waters of British
Iforih America so long an obeet of anx
nous difference between the Ufited States
and Great Britain was met bran adverse
vote of the Senate on April 15th last,
cad thereupon negotiations were insti
tuted to obtain agteement with; her
Britannic majesty's government for the
promulgation lof such joint Interpreta
tions and definitions of the article of the
convention of 1818 relating to the ter
ritorial waters; sad in shore fisheries of
the British provinces as shofld secure
the Canadian fight from encroachment
by United States fishermea, and at the
same time ensure theerj ymiiby the
latter of the privileges guaranteed to
them by such Jeonvention. The quef
Sums involved are ef long steading, of
nr pessequooc. si fni ttajs i
time, for nearly three-fourths of a ecu-
tury, h.ave given rise to earnest inter
national discussions not unaccompanied
by irritation. Temporary arrangements
by treaties have served to allay the fric
tion i whioh, however, has revived as
each treaty was terminated. The
last 'arrangement, under the; treaty
of 1871 was abrogated, after due notice
by the United States, on June 30, 1885;
but I was enabled to; obtain for our
fishermen, for the remainder ' of that
season, the. enjoyment of the full privi
leges accorded by the terminated treaty,
j The joint high commission by whom
the treaty had been negotiated,although
inveeted with plenary power to
make a permanent termination,
the question was relegated to
the stipulations of the treaty of
1878, as to the first article, of whioh
no construction satisfactory to both
countries has ever been agreed upon.
The progress of civilization and prowth
of population in the British provinces to
whioh the fisheries in question are con
tiguous and the expansion of commercial
intercourse between them and the Unit
ed States, present today a condition of
affairs scarcely realisable at the date of
the negotiation ox lois
New and vast interests have been
brought '. into existence, modes of inter
course between the countries have been
invented and multiplied, the methods
of conducting the fisheries have been
wholly ohanged and all this is necessari
ly entitled to candid and; careful
consideration in the adjustment of
the terms and conditions of intercourse
and commerce between the United States
and their neighbors alone a frontier of
over 8,600 miles. This propinquity,
community o language and occupation
and similarity of polities! and social, in
stitutions indioate the practical and ob
vious wisdom of maintaining mutual ben
eficial and friendly relations. Whilst I
am unfeignedly desirous that suoh rela
tions should exist between us and the
inhabitants of Canada yet the action of
their officials during- the past season to
wards our fishermen has been such as to
seriously threaten their continuance. Al
though disappointed in my efforts to
secure a satisiaotory settlement oi
the fishery question, negotiations are
stijl pending, with a reasonable hope that
oezore tne eicse oi cue present session
of Congress, the announcement j may be
made that an acceptable ' conclusion has
been reached. As, at an early day,
there may belaid before Congress the
correspondence of the department of
state in relation to this important sub
ject! so that the history of the past fish
ing season may be fully disclosed sad
the actiori and the attitude of the ad-
mtnistraticn clearly comprehended, a
more extended reference i not deemed
necessary in -this eommunioation. The
recommendation' submitted last year
that provision ' may be made tor
a preliminary reoonoissanee of the oon
yeniional boundary lino between Alaska
and British Columbia Is renewed.
Hi express my unhesitating conviction
that the intimacy of our relations with
Hawaii, should be emphasised. As a
result of the reciprocity treaty of 1875.
Those islands on the highway of Orien
tal had Australasiaa traffic are virtually
an outpost of American oomnieree and a
stepping itone to r the growing trade of
ue racine, ' rne roiynesian- isianu
groups hafe been so absorbed, bj other
and more powerful governments jfchat the
Hawaiian islands are left almost alone in
the enjoyment of their attinomy! whioh
it is important for us should be pre
served. Our treaty is now terminable
on one year s notice, but propositions
to abrogate it would be, in my judg-
meat, most ill-advised. The paramount
infiaenoe wo have there acquired, onoe
relinauished, could only with difficulty
be regained and a valuable grcund of
vantage for ourselves might be convert
ed into a stronghold for our commercial
competitors. I earnestly u recommend
that the existing , treaty stipulations be
extended for a further term of tfeven
years. A recently signed treaty' to this
end , is bow before , the Senate.
The importance 01 telegraphic com
munication between these islands and the
United States should not be overlooked
The question of a general , revision at
the treaties of Japan is agaia under
discussion at Tokio. As the first to open
relations with that empire, and as the
nation in most direct commercial rela
tions with Japan, the United j 8tates
hive loot no opportunity to testify their
eoosiswat inraaauip vj rapporung ue
just claims of Japan to autonomy and
independence among nations. AJ treaty
Of extradition between the United States
and Japan, the first concluded by that
empire, has been lately proclaimed.
) . The weakness of Liberia and the dim
eulty of maintaining effetive sover
eignty over its outlying districts: have
exposed that republic to encroachment.
It eannot be forgotten that this distant
community is an off-shoot of our own
System, owing its origin to the associ
ated benevolence of American citizens,
whose praiseworthy efforts to create a
nucleus of civilisation in the dark con
tinent have commanded respect and
sympathy everywhere, specially in
thu country. Although a : for
mal protectorate over Liberia is ; con
trary to our traditional policy j the
moral right and duty of the United
States to assist in all proper ways in
the maintenance of its Integrity is ob
vious, and has , baen consistently an
nounced during nearly half a
century. I recommend that in the re
organisation of our navy a small vessel,
ao longer found adequate to our needs,
be presented to Liberia to be employed
yyit in the protection of coastwise reve
nues. I The encouraging development of ben
cficial and intimate relations between
the; United States and Mexico, whioh
has been so marked within the past; few
years is at once the occasion of congr atu
lation and of friendly solicitude. I ear
nestly renew my former representation
of the need of speedy legislation: by
Congress to carry into effjet the reci
procity commercial convention of Jan
uary 20th, 1883. Our commercial
treat; of 1831 with Mexico was termi
nated according "to its provision in
18S1 upon notification given by Mexioo
ij pursuance of her announced poliejjr of
recasting all her commercial treaties.
Mrxieo has since Concluded With several
foreign govenfetat new treaties i of
commerce sad navigation, defining alien
rights of trade, property and residence,
the toataea ofsUpoinf, consular pri v-
ileges and the like. Our yet unex
ecuted reciprocity convention of 1883
eovers none of these points the settle
ment of whieh is so necessary to good
relationship. I propose to initiate with
Mexico negotiations for a new and en
larged treaty of commerce and, navigation.
THU CUTTING CAM
In' compliance with a resolution of the
Senate. I communicated to that body on
August 2d last, and also to the House
of Representatives, the correspondence
in the case of A. K Cutting an Amer
ican eit'sen, then imprisoned in Mexioo,
oharged with the commission of a penal
offenoe in Texas of which an Amenoan
citiseu was the object. After a demand
had been made for his release the charge
against him was amended so as to in
clude a violation of Mexican law within
Mexican territory. This joinder of al
leged offenoes, one within and the other
exterior, induced me to order a special
investigation of the ease, pending whioh
Air. Cutting was released. The inci
dent has. however, disclosed a olaim of
jurisdiction by Mexico, novel in our
history, whereby any offense committed
anywhere bv a foreigner! Denial in the
place of its commission and of whioh a
Mexioan is the object, may, if the of
fender be found in Mexioo. be there
tried and punished in conformity with
Mexican laws. This jurisdiction was
sustained by the oourts of Mexico in the
Cutting ease and approved by the exec
utive branch of that government upon
the authority of a Mexican statute. The
appellate court, in releasing Mr. Out-
ting, deoided that the abandonment of
the oomplaint by the Mexican eitiien
aggrieved by the alleged crime (a libel
ous publication, removed the basis of
further prosecution, and also declared
justice to have been satisfied by the en
forcement of a small part of the original
sentence. The admission of such a pre
tension would be attended with serious
results, invasive of the jurisdiction of
thu government and highly dangerous
to our oitiaens in foreign lands; there
fore I have denied it, and protested
against its attempted exercise as unwar
ranted bv the principles of law and
international usages. . A sovereign
has jurisdiction of offenses whieh
take effect within his territory although
eonoertea or commenoea outsiue oi it,
but the right is denied of any foreign
sovereign to nunish a eitisen of the
United States for an offense committed
on our soil in violation of our laws, even
though the offenoe be egainst a subject
or eitisen of suoh sovereign. The
Mexican statute in question makes the
claim broadly and the principle, if con
ceded, would create a dual responsibili
ty in the eitisen and lead to inextricable
confusion destructive of that certainty
in the law which is i an es
sential of liberty. When eitiiens
of the United States voluntarily go in
to a foreign country they must abide by
the lawi there in force, and will not bo
proteoted by their own government from
the consequences of an c fiance against
those laws committed in suih foreign
country. But the watchful care and in
terest of this government over its eiti
sens are not relinquished because they
have gone abroad,and if charged with a
crime eemmittc d in a foreign land, a fair
and open trial, conducted with decent re
gard for- justice sad humanity,
will be demanded for them. With
less than this, this government
will not be content , when the
stake.
degree to wh eh . extra
territorial criminal , jurisdiction may
hate been formerly allowed by consent
sad reciprocal agreement among certain
of the European States, no such dec
trine or . practice was ever, known to
the laws of this country or of that from
which our institutions have mainly been
derived.
Iu the ease of Mex:co, there are rea
sons, especially strong, for perfect har
mony m the mutual exercise of juris
diction. t Nature has made us irrevoca
bly neighbors and wisdom and kind
feeling should make us friends. The over
flow of capital and enterprise from the
United States is a patent factor in assist
ing! the development of the resources of
. i it . ?i
uexipo ana, ouuawgup me proepwHy
of poth oeuatries. To assist this good
work, all grounds of apprehension for
the 1 security of person and . property
should be removed, and ! trust that in
th4 interest of good neighborhood the
statute referred so wui DC so mouineu
as to eliminate the preserit possibilities
of danger to the peace ef the two coun
tries.
The government of the Netherlands
has exhibited concern in relatiott to
certain features of bur tariff laws, whioh
whieh are sunnosed bv them to be aimed
at !sl class of tobacco produoed in the
Dutch East Indies. Comment would
seem' unnecessary upon the' unwisdom of
i-tLij . i Js. : :
legislation appearing w bits uiwiiuh-
nation tor vt oojetj, wmoa, iaoaga
unintentionnl,may give rise to injurious
retaliation.
Tho establishment, less than four
years ago, of a station at Teheran, is
bearing fruit in the interest exhibited
by , the Persian government in the in
dustrial activity of the United States
and the opportunity of beneficial inter
changes.
A stable government is now happily
restored in Peru, by the election of a
constitutional President, and a period of
rehabilitation is entered upon, but the
reoovery is necessarily slow from the
exhaustion caused by the late war and
civil i. disturbances. A, convention to
adjust by arbitration the claims of our
eitissns has been proposed and is under
consideration.
The naval officer, who bore to Siberia
the testimonials bestowed by Con
gress in recognition of the aid given to
the Jeannette survivors, has puooes
fully accomplished his mission. His
interesting report will be submitted. It
is pleasant to know that this mark of
appreciation naa been welcomed by tee
Russian government and people as befits
the traditional friendship of the two
countries.
Civil perturbations in the Be
moan . friends . have, during the
past 'few years, been ;a 'source
of considerable embarrassment to the
three : governments, Germany, Great
Britain and the United States; whose
relations and extra territorial rights in
that important group are 'guaranteed by
treaties. The weakness of the native ad-
miuistratioa sad the conflict of opposing
interests Ja the islands have led King Ma-
WUp MVS ayCF . VVMVV W4NMB
life, or liberty of its eitiiens is at ,
Whatever the degree to wh'ch
.2
1
lietoa to seek alliance or protection in !
some other quarter, regardless of the dis
tinct engagements whereby no one cf the
three treaty powers, may acquire any
paramount or exclusive interest. In
May last. Malietoa offered to plaoe Sa
moa under the protection of the United
States, and the late oonsul, without au
thority, assumed to grant it. The
proceeding was promptly disavowed,
and the over icalous official
recalled. Special agents of the three
governments have been deputed to re
examine the situation in the islands.
With a change in the representation of
all three powers and a harmonious un
derstanding between them, the peaoe,
prosperity, autonomous administration
and neutrality of the.Samoans will hardly
fail to be secured.
It is appearing that the government of
Spain did not extend to the fltg of the
United States, in the Antilles tie full
measure of reciprocity requisite under
our statute for the continuance of the
suspension of the discrimination against
the Spanish flag in our ports, I was
constrained in October to rescind my
predecessor's proclamation of February
14, 1884, permitting such suspension.
An arrangement was, however, speedily
reached, and upon notification from the
government of Spain that all differential
treatment of our vessels and their ear-
goes from the United States, or from
any foreign country had been completely
and absolutely, relinquished, I availed
myself of the discretion conferred by
law, and issued on the 27th of October,
my proclamation declaring reciprocal
suspension in the United States, it is
most gratifying to bear testimony to the
earnest spirit in whioh .the gov
ernment of the Queen Regent
has met our efforts to avert the
initiation of commercial discriminations
and reprisals whieh are ever disastrous
to the material interests and the politi
cal good-will of the countries they may
tffeot. The profitable development of
the large commercial exchanges be
tween the United States and the Spanish
Antilles is naturally an object of so hoi
tude. Lying close at our doors and
finding here their main markets of sup
ply and demand, the welfare of Cuba
and Porto Rico and their production
and trade are scarcely less im
portant to us thaa to Spain. Their
commercial and financial movements
are so naturally a part of our system
that no obstacle to fuller and
freer intercourse should be permitted to
exist. The standing instructions cf our
representatives at Madrid sad Havana
have for years been to leave ho effort
unessayed eo further these ends and at
ao time has the equal good desire of
Spain been more hopefally manifest
ed than now. The government of Spain,
by removing the consular tonnage fees
on cargoes snipped to the Antilles sad
by reduoing the passport fees, has
shown its recognition of the needs of
less trammelled intercourse.
An effort has been made during the past
year torcmove the hindrances to the proc
lamation of the treaty of naturalisation
with the Sublime Porte, signed in 1874,
whioh has remained in 'operation owing
to a disagreement of interpretation of
the clauses relative to the effects of the
return to and sojourn of a naturalised
eitisen in the land .of origin. 1 trust
soon to be able to announce a favorable
settlement of the differences as to this
interpretation. It has been highly sat
isfactory to note the improved treatment
of Amenoan mmonanes in Turkey, as
has been attested by their acknowledg
meats to our late minister to that
government cf his snooeesful exertions
in their behalf. The exchange of ratifi
cation, of the eonveni)cs of December
5th, 1885, with Veneiuella, for the re
opening of the awards of the Caracas com
miction under the claims convention ef
1866, has not yet been effected, owing to
tho delay of the executive of that re-
pcblie in ratifying the measure.
trust that this postponement will be
brief, but should it much longer eon
tinues the delay may well be regarded
as a reeision of the compact and a fail
ure on the part of Venezuela to com
plete an arrangement so persistently
sought py her during many years and
assented to by this government in
spirit of international fairness.
omztBsaip Aim xatttxaxizatios.
1 renew the recommendation of my
last annual message that existing legis
lation concerning eitismsnip and na
turalisation be revised. We have
treaties with many states' providing for
the renunciation of ritistnship by natu
ralised aliens; but no statute m found
to give effect to such engagements or any
whioh provides a needed central bureau
for the registration of naturalised eiti
iens.
Kxraanmov.
Experience suggests that our statutes
regulating extradition might be advan
tageously amended by a ; provision fcr
tho transit across our territory, now a
convenient thoroughfare of travel from
one foreign country to another, of fugi
tives surrendered by a foreign govern
ment to a third state. Buch provisions
are not unusual iu the legislation of
ether countries and tend to prevent
.i. . . .. ,
ue ffuoarriage toi jUS'ice. it is aiso
desirable in order to remove the:present
uncertainties, that authority should be
onferredi on the Secretary of State to
issue a certificate in ease of arrest for
the purpose of extradition to the officer
before whom the proceeding is pending,
showing that a requisition for the sur
render of the person charged, has been
duly made. Suoh a certificate, if required
to be received before the prisoner's exam
ination, would prevent a long and expen
sive judicial inquiry into a'charge which
the foreign government might not desire
to press. I also reeommend that express
provision be made for the immediate
discharge from custody of persons com
mitted for extradition where the Presi
dent is of the opinion that a surrender
should not bo made.
ZCTXaXAZIOXAIi OOPTXiaHV.
The drift of sentiment in civilised
communities toward full recognition of
the rights of property in the creations
of the human intellect has brought
about the adoption by many important
nations of an international copyright
convention, which was ri-nedi at Bsrne
on the 18th of September 1885. Iaas
m uch as the constitution gives to Congress
the power to promote the progress of
science and tho useful arte, by securing
for limited times to authors tndmven
tora she exclusive right to tLdr respec
liff csas and discoveries, this
government did not feel warranted in
beooming a signatory, pending the ac
tion of Congress upon measures of in-,
teraational copyright now before it, but
the right of adhesion to the Berne -convention
hereafter has been reserved. I
trust the subject will receiTo at tour
hands the attention it drwrres. Rp-'
resentations are made to mo of the injuri
ous enact upon Am erioau artists study
ing abroad and haying free access to tho
art collection of foreign countries
of maintaining a discriminating
duty agtiusf the introduction of the
works of their brother artists of other
countries; and J am induced to repeat
my recommendation for the abolition of
that tax.
THS DIPLOMATIC AMD 0 OMUL IX SSKTICS
Pursuant to a provision of the diplo
matic and oonsular appropriation act.
approved July 1st, 1886; the estimates
submitted by the secretary of state for
the maintenance of the oonsular servioe.
have been recast on the basis of salaries
for all offioers to whom suoh allowance
is deemed advisable. Advantage has
been taken of this to redistribute the
salaries of the offioers now appropriated
tor iu aoooraanoe wiui ice wore per
formed, the importance of the represen
tative duties of the inoumbent and the
cost of living at each post. The 'last
consideration has been too often lost
sight of in the allowance heretofore
made. The compensation whioh may
sumoo for the decent maintenance Of
worthy and capable officer in a position
of representative trust at a post readily
accessible and where the necessaries of
life are abundant and cheap may prove
an inadequate pittance in distant lands.
where the better part of a year
pay is consumed in reaching the post
of duty and where the comforts of
ordinary civilised existence can only be
obtained with difficulty and at exorbi
tant cost. I trust that in considering
the' submitted schedules, no HaVeu
theory of economy wiil perpetuate a Sys
tem which in the pasthas virtually closed
to deserving talent many offices , where
capacity and attainments' of a high order
are indispensable, and i in not ,a few
instances has brought' discredit on our
national character and entailed embar
rassment and even suffering on those
deputed to uphold our dignity and f in
terest abroad. In connection with this
subject, 1 earnestly reiterate tho prac
tical necessity of supplying some mode
of trustworthy inspection and. report
of the' manner in whioh the consulates
are conducted. In the absence of sueh
reliable information efficiency oan
scarcely be rewarded or its opposite
corrected. Increasing ompetitka; in
trade has directed attention to the
value of the oonsular reports printed by
the efforts of the government. They are
much sought for by all interested in the
subjects whieh they embrace.
THU FWIKCJS,
The report of the Secretary of the
Treasury exhibits in detail the condition
of the public finances aad of the several
branob.es of the government related ! to
this department. 1 especially direct the
attention of the uongress to the reoom
mendations contained in this and the
last preceding report of the secretary
jkmohiog the. simplification and amend
ment of the laws relating to the eolleo
tion of our revenues and in the interest
of economy and justice to . the
government, l nope they may
be adopted by , appropriate legisla
tion. The ordinary receipts of the,
government for the fical year ended
June 30, 1886 were $336,439 727 06.
w tnis amount uvz W9,UZ3 41 was
reoeived from . customs and $1 1 6, 805,
936.48 from internal revenue The
total receipts as here stated were, $13,
4.uzu.05 greater than for the pre
vious year, but theinereaso from cus
toms was 811.434 084 10. and from in
ternal revenue $440 721,094; making a
arm.in in tit aqa iforns rav tYltm 1 laaetf wsm stf
m wmvov itVMW ivi auv iao jvi aa
$15,841,295.04, a falling off in .other
resources reducing the total increase to
the smaller amount mentioned.1 The
expense at the different custom houses
of collecting this, increased customs
revenue was less than the expense at-
f tending the collection o f suoh revenue
for the preceding year by $490,
608, and tho increased receipts
of internal revenue were collected at
a cost to the internal . revenue bureau,
$165,594. 99, less than the expense
such collection for the previous1 year,
The total ordinary expenses) of the gov
ernment for the fiscal year ended Juno
30th, 1886, were $242,483 138 50, bo
rn lose by gl7.788.797 thaa i such, ex
Eenditurea : for the year preceding and
aving a surplus in tho treasury at thl
close of the last fiscal year of $9&95G
588.66, as against $63,463,771,27 at the
close of the previous year, being an in
crease m such surplus of $30,492,817 29.
The expenditures sre compared j with
those of the preceding fitesi year, aad
classified as folio wf:
Year ending June SO, 1886; for civil
expenses, $21,955,604,04; year ending
June 80. 1885, $28,82694211. j
For foreign intercourse, for the vear
1886.$1,332,320.88: for the year 18851
$5,439,609.11. For Indians,for tho year
1886, $6,090,158.17; for tho year 1885,
$6,652 494 63. For pensions, for the
year 1886, $63 604 864 Oft?- for tho year
iea ipo,ivz,zo 4U. jror the military,
inducing river sad harbor improve-;
meats and arsenals, for the year 1886,
$34,324,152.74; for tho year 1885,$42,
070,578.47. For the navy, including
vessels, maonmery and Improvement
of navy yards. for : the vear
lsso, X13W7.887 74; for the year
1885, $16 021,079 69. For interest
on public debt, for the year 1886, $50,
680,145.07; for the year 1885, $51,-
386.256.47. For the District of Co
lumbia, for the year 1886, $2 892,
321.89; for the year 1885, $3,399,
650 95. For miscellaneous expenditures,
including public buildings, light houses
and collecting the revenue, for the year
1886. $47,986,683 04; for the year 1885.
$54,728,056 21. For the current year
to end June U, 1887, the ascertained
receipts up to Ootober 1, 1886, with
suoh receipts estimated for the remain
der of the vear amount to 2356 000.000.
The expenditures ascertained and esti
mated for the same period are $266,000,
000, indicating an anticipated surplus at
the dose of the years, of $9U,W0,VW
The total value of the experts from the
United States to foreign countries dur
iad the -fiscal year, is stated aad com
pared with the preceding iyear as fol
lows: Jror the year ending wane au.
301; gold, $42 952,191; silver, $29,
511,219. For the year ending June
80, 1885: Domestic merchandise, $726,-
tfiO am. - v.' j- . Ate
vod.nu, ioreigi. .- mercnaauiBO, siu -
606 8C9; gold, $8,477,892; silver, $33,
753 933.
The value of some of our leading ex
ports during the last fiscal year as com
pared witn tne Value of the same for the
year immediately preceding is here
given and furnishes information both
interesting and suggestive :
For the year eodbur June 80. 1896: Cotton
nd cotton, manufacture, 9219,046,576.00;
tobacco and its manufactures, 130,424,98,00:
breadstuff f 125,846,658.00; pro v Wont, $90,
625,216.00. For the year ending J an SO. llW:
Cotton mad cotton manufacture, 9113,799,
049.00; tobacco and iu manutactam. f 14.-
7b7.V5.fO; breadstuff, 9160791. 00; pro
visions, 9107,X32yi06.0O.
Uar import during the last fiscal year
as oomparcd with the previous vear
were as follows :
Merchandise. 1886. $635,436,186;
1885. $579,580 053 80. Gold. 1888.
120,711,349; 1885. $26,691,696. Sil
ver, 1886, $17,850,307; 1885, $16 -
00U,d27.
KSVIH6U XXVoBJC.
In my last annual message to Con
gress attention was directed to -the fact
that tho revenues of the government ex-
ceeded ho actual needs end it was sug
gested that legislative aotion should he
taken to relieve the people from the
unnecessary burden of taxation thus
made apparent. In view of the pressing
importance of tho subject I' deem it my
duty to again urge its consideration
The income of the government by it
increased- volume and througa econo
mies In its collection- Is' bow more thaa
ever in exoess ot public necessities. Tho
application of the surplus to the pay
ment of sueh portion of the public debt
as is now at our option subject to ex
tinguishment if continued at the
rate whiohp ba lately prevailed would
retire that -class of indebtedness
within less than one year from
this date. Thu a continua
tion of our present revenue system would
soon result in to receipt of aa aaaual
inoome much greater than necessary to
meet government expenses, with no in
debtedness to which it could bo applied.
w should taea do confronted with
vast quantity of money, the circulating
medium of the people, boarded in the
But the present condition of affairs con
strains our people to demand that by a
revision of our revenue laws the receipts
or the government shall be reduoed to
the necessary expene of its economical
administration, and this demand should
be recognised and obeyed by
the people's representatives iartho- lesjr
uiauTs oranon or the government, in
readjusting the burdens of federal taxa
tion, a sound public policy requires that
such of our citis ins as have built up
large and important iaduatriee under the
A. ' 1 l . . .
present oonuiwoos soouid not be sud
denly and to their injury deprived of
advantages to which they have adapted
their .business; but if the publie good
requires it they should be content with
such consideration as shall deal fairly
and cautiously with their interests.
while the just demand of the people for
relief from needless taxation is honestly
answered. A reasonable and timely
submission to suoh 'a demand should
certainly be possible f without a disas
trous shock to any interest, and a cheer
ful concession sometimes averts abrupt
and heedless action, often the outgrowth
of impatience and delayed justice,
u BOX.
Dae regard should be also aooordsd in any
proposed readjustment to the interests
of American labor so far as they s are izf.
volved. Wo congratulate ourselves
that there aro among us no laboring
class fixed with unyielding strength sad
doomed under all conditions to the in
exorable fate of daily toil. We recog
nise in labor a chief factor iu the wealth
of the republic, and we treat those who
have it in their keeping as dtisens ea-.
titled to the moot careful regard sad
thoughtful attention. This regard and
attention should be awarded them, not
only because labor is the capital of our
worxingmeniustly entitled to its share .
of government favori but for the fur
ther and not leas' important reason that
tho lborin man, surrounded, by , hia
family in his humble' home, as a oW
sumer, vitally bterested ia all that
cheapens the cost of living sad enables
hint to bring within his domestic circle
additional comforts' and advantage.
This relation of the workingmaa to
thej reveaue laws of tho country
and the manner ia hrhieh it palpably
ixflhesees the question of wages should
hands, or which would bo drawn into
wasteful publie extravagance with all
the , corrupting national undemoeratie
system whieh follows in its train, but it
is net the simple existence of the surplus
aad its threatened attendant evils which
rfumishtho strongest argument against
our present scale of federal taxation.
Its worst phase is tho exaction of sueh a
surplus through a perversion of the rela
tions between the people aad their gov
ernment, and a dangerous departure from
the rules which limit the right of federal
taxation. Good government,- and espe
cially tho government of whioh every
American cit's boasts, has for its ob
ject the protection of every person with
in us care m ue greatest liberty con
sistent with the good order of society, and
his perfect security in tho er j oyment oft is
earnings with the least possible diminu
tioa for public needs. When mare of
the people's substaaoe is exacted through
the form of taxation than is necessary to
meet the just obligations of the govern
ment sad ue expense of its economical
administration, sueh exaction becomes
ruthless extortion sad a violation ot the
full fundamental principles of free gov
eminent.
The indirect manner ia whieh these
exactions are made has a tendency to
conceal their true character aad their
extent. ,
But we have arrived at a stage of su
pers ious revenue, which has aroused
the people to a realisation of the fact
that the amount raised professedly for
ue support or tae government, is paid
by them as absolutely as if added to 4he
price of -the things whieh supply their
aauy wants, as ii it was paid as axed pe
riods into the head of tho tax gatherer.
Those who toil for daily wages aro. be
. j i S it i
gupuug - u uiiBiBtajitt mm , capital,
though sometimes vaunting its import
ance and clamoring for the protection
and favor of tho government, is dull and
sluggish bll, touched by the magical
uf iu xaoor, h. apnngs into awHVuy
furnishing aa ooeasioa for federal tax-
atioaand gaining the value which enables
it w Dear in saraea. xafiaporingmaa
is thoughtfully it quiring whether in,
these eireumstapces,copMdcriPg the trib
ute ho constantly pays into the public
treasury as no supplies his daily wants.
he receives his fair share of advantages.
There is also a suspicioa abroad that
the surplus of our revenues indicates
abnormal aad exceptional business
profits which under the system whieh
produces sueh surplus, increases, with
out corresponding benefit to tho people
wo tbh aocamuianona oi ue
few among, our eitisna whose fortunes,
rivalling tbo wealth of the most
favored ia anti-democratic nations.
are aot the natural outgrowth of
a steady, plain and industrious republic
Our farmers too and tho engaged di
rectly and indireetly in supplying tho
frouncis oi agneuiture, see uat, day
y, day, and as often as the daily wants
oi wear nouseaoias recur, uey are lorocd
to pay needless and excessive taxation,
while their Droducts struggle ia foreign
markets with the competition of nations
whieh by allowing a freer exohange of
J ill it . "
prvauauvua wu we permit. enaDie
their people to sell for priooa which dis-
treea toe. Amenoan larmer,
Aa every patriotio eitissn rejoices in
the constantly inoreasisg pride of eur
people .iu American eitisanehip and in
the glory of oar national, achievements
and progress,; a sentiment prevails
that the leading strings useful to a na
tion ia its infancy may well be to a great
extent discarded ia the present stage of
Atnarwaji ingenuity, courage ana tear
less self-reliance aad for the privilege of
indulging this sentiment with true
Amenoan enunjdaam our dtisens are
quite willing to forego an idle surplus
in . uu puouo treasury. And all the
ecplo know that the average rate of
federal taxation upon imports is today.
in time of peaoe upon some articles of
necessary consumption actually more
than was imposed by the grievous bur
den willingly borne at a time when, the
goveramcftt aceded millions; to maintain
treasury when it should bo ia the!0!1" justifiable prom-
of the supply aad protection of well
paid labor, and these considerations sug
gest such an arrangement of government
revenues as shall reduce the expense of
living while it dors hot curtail the op
portunity for work nor reduoe the com
peueatioa of American labor aad inju
riously affect its condition and the dig
nified place it holds, in the estimation of
our. people. 1
THIfallfXU.
'But our formers and agricul
turists, those I who j from the South, ,
produoe tho things eonramed by. all,
aro more directly and plainly eonoerned
thaa any other of ourj citiseas ia a just
and careful system, of; Federal taxation.
Those actually engaged b and more
remotely connected with this kind of
work numbers nearly one-half of our
population. None labor harder or more
ooascieatiously thaa they. " No engage
meats limit their hours of toil and no
interposition of the government enhancot
to any great exteat,ue value of their pro
ducts;and yet,for many of theneeessariet
and comforts ' of life whieh tho
m9sV scrupulous economy enables
them to bring bto their homes;
and for ' their I implements of
husbandry, they are! obliged to pay a
price largely increased by aa unnatural
profit whioh, by tho action of the gov
ernment, is givea to tho more favored,
manufacturer. ' I reeommend that keep
ing; in view all these considerations tho
increasing and : unnecessary surplus of
national inoome annually accumulated,
be Released to the people by, aa amend
ment to our revenue1 taws which shall
cheapen the price of the accessaries of
life and give free entrance to sueh fan-?
ported materials as by American labor
may bo manufactured ' into marketable
commodities. Hothing can be aecom-;
pliahed however in the diree-I
tioa of this maeh needed reform
unless tho subject is 1 approached in a
patriotic spirit of devotion to the uter
estsi of the entire country, and with a
willingness to yield something for tho4
pufliTgood.' I ' 'j
tmm inraucprBT.. .
Tho i tarn " paid upon the pub-:
lie , debt " during the fiscal year '
ended Juno 80,1 1886k was $44,551,-
v9,ik. curing tho twelve months
or wJ,no;, aarety aad Integrity or, the
V&fi,, j It. has .been the , pplv pt tho
government to collect the principal hart
1884: Domestic merchandise, $665,-1 ot reenues by a tax upon imports,
iiSdifowipinorohttdiso,!
;:1 i -i V 5 ":r 1 ' ' ' -
calls after that
to tho am unt
and cancellation
is,, there were
ended October 81, 1888. three per
cent bonds were called for redemption,
ampuativg to $127,283 100, of whkaz
$8,648,200 was so called to answer tho .
requirements .ef the law relating to the
sinViag fundT and $45,639,900 for tho
purpose of reducing the publie debt by
application of a part of, the surplus ia
tho treasury to that object "Of the bond
thus called $102,269,450 became sub
ject under such , calls; to redemption
prior to Xiovember 1,: 1580 Tho ro-
maider, amounting to EID.U15.63U.
matured under ; tho
date. In addition
subject i to payment
prior to XMovemocr
also paid before that day eertaia of these
bonds with the interest thereon amount
ing to $5,072350, whioh were antici
pated as to their maturity,., of which
$2 664,850 had not been called. Thus
$107,341,800 had been actually applied
prior to the 1st of November, 1886, to
the extinguishment of our bonded and
interest-bearing debt,lesving on that dev
still outstanding tho sum of $111, 344 -812;
' Of this amount $56,848,700 were
still represented by three per cent bond s.
They, however, have been since No
vember 1st or will at Onoe be further
reduoed by $22,606,150. being bond
which have been called as' slreadv
stated, but not redeemed and cancelled
before the latter date, j
suvsa oonueu.
During the fiscal year ended June 80.
1886, there -werer coined 'under tho
compulsory silver coinage act of 1878,
29.838,905 silver dollars, and the cost of
the silver used ia sueh coinage was
ftt3,443.9S0. There had been eofned
up1 to the close of the brerkus fls el
year under the provisions of toJ-av
203.882,554 silyer doljarr and va t! o
ls day of December, 1888, 'thA total
amount of such coinre was 247 131 .-
W3L1 The director f?the Ijr etoor ' :
auwaa ane luno or ; taerpessag or
iaonxapxa ox nun Mtj