.1 ( Pvxuxmu) Daily (kxcxmt: Mok&at) i ; Waaxxr. II ! By THE NEWS AND OBSEBYKBOo. j. l mux, lottos Dally oaayear, malL postpaid, i : 7 00 air months, M j, U I SO urea a f '17 Vtekly, one year, " " S 00 m til: monthi j 100 No mam entered without i payment, and no piper mtatUrtbo txplratiof cf tlma paid tor 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