THE PRESIDENT'S MESSAGE.
The Chief ExccutirS's Annual Document
to Congress and the People.
A State Paper tliat Deserves and. Should
Receive Public Attention.
drover's Suggestions and Recommendations.
In Memory of Hendricka.
"WASHINGTON , Dec. 8. To the Con
gress of the United States : Tour assem
bling is clouded by a sense of public be
reavement causeO by the recent and sud
den death of Thomas A. Hendrlcks ,
vice-president of the United States. His
distinguished public services , his com
plete integrity and devotion to every
duty and his personal virtues will find fa
vorable record in his country's history.
Ample and repeated proofs of the esteem
and confidence in which he was held by
his countrymen were manifested by his
election to an office of the most import
ant and highest dignity , and at length ,
full of years and honors , he has been laid
at rest amidst general sorrow and bene
diction.
He Makes His Bow.
The constitution , which requires those
chosen to legislate for the people to an
nually meet in the discharge of their
solemn trust , also requires the president
to give to congress information of the
state of the union , and recommend to
their consideration such measures as he
ehall deem necessary and exoedlent. At
the threshold of a compliance with these
constitutional directions , it is well for us
to bear in mind that our usefulness to the
people's interests will be promoted by a
constant appreciation of the scope and
character of our respective duties as they
relate to federal legislation. While the
executive may recommend such measures
as he shall deem expedient , the responsi
bility for legislative action must and
. should rest upon those selected by the
people to make their laws. A contem
plation of the grave and responsible
functions assigned to the executive
branches of the government under the
constitution will disclose the partitions of
power between our respective departments
and their necessary independence , and
also the need for the exercise of all the
: power entrusted to each in that spirit of
comity and co-operation which is essen
tial to the proper fulfillment of the
patriotic obligations which rest upon us
as faithful servants of the people. The
jealous watchfulness of our constituencies ,
great and small , supplements their suf
frage , and by the tribunal thus established
every public servant will be judged.
Our Peaceable Foreign Eolations.
It is gratifying to announce that there-
latlons of the United States with all
foreign powers continue to be friendly
our position after nearly a century of
successful constitutional government.
Maintenance of good faith in all our en
gagements , the avoidance of complications
with other nationsand a consistent and
amicable attitude toward the strong and
weak alike , furnish proof of a political
disposition which renders professions-
good will unnecessary. There are no
questions of difficulty pending with any
ioreign government.
The Argentine government has revived
the loji j marul .qijestioa nfethfcI5afe }
land Tsland lainiing from the United
States inde for their loss attributed
to the actio the commander of the
sloop of \ . _ 'Lexington" in breaking
up a piratical colony on those islands in
1831 , and their ubsquent occupation by
Great Britaim i view of the ample
justification fcj ! act of tbe ' 'Lexing-
ton" and t'J "relict condition of the
sland beforej af teethealleged . . . oc-
anffrvl I I.-- '
fhi' "
overnmen mers te plaim 'as whol-
< < ly gfotindle !
- -A questio | isen with thegovern-
ment of Aul ungary touching the
representation ie United' States"at
Vienna. Having'under my constitutional
prerogative ' appointed an estimable citi
zen ol unii-'Cached } probity and compe
tence as miui r at that court , the gov
ernment of Atf laHungarjinvited this
government to cognizance of certain'ex-
ceptions based upon allegations against
the personal acceptability of Mr. Keiley ,
the appointed envoy , asking that , in
viewthereof , the appointment should be
withdrawn. The reasons advanced were
such as could not be acquiesced in with
out violation of my oath of office and the
precepts of the constitution , since they
necessarily involved a limitation in favor
of a foreign government upon the right
of selection by the executive , and re
quired such an application of a religious
test as a qualification for office under the
United States as would have resulted in
the practical disfranchisement of a large
class of our citizens and the abandon
ment of a vital p inciple of our govern
ment. The Austro-Hungarian govern
ment finally decided not to receive Mr.
Keiley as the envoy of the United States ,
and that gentleman has since resigned
his commission , leaving thepost vacant.
J have made no new nomination , and
the interests of this government at
Vienna are now in the care of the secre
tary of legation as Charge d' Affaires ad
interim.
Early in 31arch last war broke out in
Central America , caused by the attempt
of Guatemala to consolidate the several
states into a single government. In this
contest between our neighboring states
tie United States forbore to interfere
actively , but lent the aid of their friendly
offices in deprecation of war and to pro
mote peace and concord among the belli < * -
erents , and by su h counsel contributed
importantly to the restoration.of tranquil-
ity in that locality.
"Emergencies growing out of the civil
war in the United States of Colombia ,
demanded of this government at "Ihe be
ginning ofjthis administration the employ
ment of an armed force to fulfill its guar
antee under the thirty-fifth article of the
treaty of 1846. Jn order to keep the
transit open across the.Islhmus of Pana
ma , dftsvrous of exercising only the pow
ers expiessly reserved to us by the treaty ,
anari'idful of the rights of"Colombia ,
the forces sent to the isthmus were in
structed to confine their action to "posi
tively and .efficiently preventing the
transit and its accessories from being
interrupted or embarrassed. " The
execution of this delicate and re
sponsible task necessarily involved ,
police control where the local authority
was temporarily powerless , but always
in aid of the sovereignty of Colombia.
The powerful and successful fulfillment
of its duty by this government was highly
appreciated by tfie government of Col
ombia , and has been followed bv ex
pressions of its satisfaction , and of high
praise of the officers and men engaged in
this service. The restoration of peace
on the isthmus by the re-establishment
of the constituted government there ,
-being thus accomplished , the forces of
the United States were withdrawn.
Pending these occurrences , a question
of much importance was presented by
decrees of the Colombian government
proclaiming the closure of certain ports
tbHu in the uunds of in urgmits , and de-
vlaring veaaelo held by tbeAevolutibui5ts ;
to be partial and liable to capture by any
power. To neither of these propositions
could the United States assent. An
effective closure of ports not in the pos-
. session of the government , but held by
the hostile partisans , could not be recog-
nized. Neither could the vessels of in
surgents against the legitimate sovereign
ty be deemed hostus humani generis with
in the precepts' of international law ,
whatever might be the defination and
penalty of their acts under the munici
pal laws of the state against whose au
thority they were Jn revolt. The denial
by this government of the Colombian
propositions did not. however , imply the
'admission of n. belligerent * status on the
part of the insurgents. The Colombian
government has expressed its willingness
to attend negotiation conventions for the
adjustment by arbitration of claims by
foreign citizens arising out of the de
struction of the city of Asnjnwall by the
insurrectionary forces.
Inter-Oceanic Transportation.
The interest of the United States in a
practicable transit for ships across the
strip of land separating the Atlantic from
the Pacific has been repeatedly mani
fested during the last half century. My
immediate predecessor caused to be ne
gotiated with Nicaragua a treaty for the
construction by , and at the sole cost of
the United States , of a canal through
Nicaraguan territory and it was 1 iid before'
the senate. Pending the action of that
body thereon , I withdrew the treaty for
.re-examination. Attentive consideration
of its provisions leads me to withhold it
from re-submission to the senate. Main
taining , as I dp. position in aline-
presidents from Washington's da > , who
have prescribed enlarging and entangling
alliances ; ylth foreign states , I do not
favor a policy of acquisition of new and
distant territory , or the incorporation of
remote interests with our own.i'he
laws of progress are vital and organic ,
and we must be conscious of that irresis
tible tide of commercial expansion which
as the concomitant of our civilization day
by day is being urged onward by those
increasing facilities of production , trans-
portatiou and communication to which
steam and electricity have given birth.
Our duty in the present instructs us to
address ourselves mainly to the develop
ment of the vast resources of the great
area committed to our charge , and tothe
cultivation of the arts of peace within our
borders. We should be jealously alert in
preventing the American hemisphere
Irom being involved in the political
problems aud complications of distant
governments , therefore I ain unable to
recommend propositions involving
paramount privileges of ownership or
right outside of our own territory , when
coupled with absolute and unlimited en
gagements to defend the territorial integ-
irty of the state where such interests he.
While the general project of connecting
the two oceans by means of a canal is to
be encouraged. 1 am of ibe opinion that
any scheme to that end to be considered
with favor should be free from the fea
tures alluded to. The Tehuautepec
route is declared by engineers of the
highest repute and by competent scient
ists to afford an entirely practical tiansit
for vessels aud cargo by means of a ship
railway from the Atlantic to the Pacific.
The obvious advantages of such a route ,
if feasible , over others further removed
from the lines of traffic between England
and the Pacific , aud particularly be
tween the valley of the Mississippi and
South America , are deserving of con
sideration. Whatever highway may
be constructed across the bar
rier dividing the two greatest ma-
ritins areas of the world , must be for
the world's benefit , a trust for mankind ,
to be removed from the chance of domi-
iation by any single power. It must not
ol irritation of hostilities
or a prize for warlike ambition. An en
gagement combining the construction ,
ownership and operation of such a work
by this government with an offensive
and defensive alliance for its protection
with ttie foreign states whose responsi
bilities and rights we would share , is , in
my judgment , inconsistent with such' .
dedication to universal and .neutral , use
and .Jvouldftniorepver. entjULpgfiflsgfga-f
ior its realisation beyond 'tne ' eope < oiVi
our national policy "or present means/t
The lapse of years has abuudantty con- '
firmed the wisdom and foresight ot those
earlier administrations which , long
before the conditions of. mari- i
time intercourse were changed '
and enlarged by the progress of the age , i
proclaimed the vital need of inter-oceanic
traffic across the commercial isthmus and
consecrated it in advance to the common
use of mankind by their positive declara
tions , and through their formal obliga
tion of treaties. Toward such reahza-
tion.the efforts of aiy administration will
be applied , ever bearing In mind the
principles on which it must rest , and
which were declared in no
uncertain tones by Mr. Cass , who , while
secretary of state in 1S5S , announced
that ' * VVhat the United States want in
Central America next to the happiness of .
its people is the security and ueutialky'
of the inter-oceanic routes which lead
through it. " The construction 01 three
trans-continental lines of railway , all in
succes ° ful operation , wholly witbin our
territory , and uniting the Atlantic and
Pacific oceans , has been accompanied
by results of a most interes ing aud im
pressive nature , and has created new
conditions , not only in the routes of com
merce , but in political geography , which
powerfully affect our relations toward
and necessarily increase our interests in ,
any trans-isthmian route which may be
opened and employed for the ends of
peace and traffic , or , in other contingen
cies , for uses inimical to both. Trans
portation is a factor in the cost , of com
modities scarcely seooud to that of their
production aud weighs as heavily upon the
consumer. Our existence already has
proven the great importance of having
the competition between laud-carriage
and water-carriage fully developed , each
acting as a protection to the public
against the tendencies of monoply , w.hich
is inherent in the consolidation of wealth
and power in the hands of vast corpora
tions. These , suggestions may serve
to emphasize what I have
already taid on the score of the necessity
of a neutralization of any inter-oceanic
transit and this can only be accom
plished by making the uses of the route
open to all nations and subject to the
ambition and warlike necessities of none.
The drawings and report of a recent sur-
vey-of the Nicaragua canal route made
by Chief Engineer Menscal will be com
municated for your information.
Foreign Affairs Resumed.
The claims of citizens of the United
States for losses by reason of the late
military operations. of Chili in Peru and
in Bolivia are the subject of negotiation
for a claims convention with Chili , pro
viding for their submission to arbitra
tion.
tion.The
The harmony of our relations with
China is fully sustained in the applica
tion of the uetsr lately passed to execute
the treaty of 1SSO , restrictive of the im
migration of Chinese laborers into the
United States. Individual cases of harJ-
shiphave occurred beyond the power of
the executive to remedy , and calling for
judicial determination.
The Chinese in the United States.
The condition of the Chinese question
in the western states and territories is ,
despite this restrictive legislation , far
from being satisfactory. The recent out
break in Wyoming territory , where num
bers of unoffending Chinamen indisputa
bly within the protection of tbe treaties
and the law were murdered by a mob ,
and the still more recent threatened out
break of the same character in Washing-
, ton territoryKare still fresh in the minds
1 of all , and there is apprehension lest the
bitterness of feeling against the Mongolian
race on the Pacific slope may find vent
in similar lawless demonstration.
All the power of this government should
be exerted to maintain * the amplest good
faith toward China in the treatment of
these men , and the inflexible sternness
of the law in bringing the wrong-doers
to justice should be insisted upon. Every
effort has been made by this government
to prevent these violent outbreaks , and
to aid the representatives of China in
1 heir investigation of the outrages , and
it is but just to say that they are trace
able to the lawlessness of men not citi
zens of the United States , engaged in
competition with Chinese laborers. Race
prejudice is the chief factor in originating
these disturbances , and it exists in u
large ' part of our domain , jeopardizing
our'peace and the good relationship we
try to maintain with China. The ad
mitted right of a government to prevent
tbe influx of elements hostile to its inter
nal peace and security may not be ques
tioned , even where there"is no treaty
stipulation on the subject. That the ex
clusion of Chinese labor is demanded in
other , countries where like conditions
prevail , is strong evidence of the righte
ousness of the policy. Iu the dominion
of Canada immigration is now regulated
by laws more exclusive than our , own.
If existing laws are inadequate to com
pass the end in view , I shall be prepared
to give earnest consideration to any fur
ther remedial measures within the treaty
limits which the wisdom of congress may
devise.
Congo and Other Lands.
The independent state of the Congo
j has been organized as a government un
der the sovereignty of his _ majesty , the
king of the Belgians , who assumes its
i
j chief magistracy in his personal charac-
i ' ter only , without making the new state a
j dependency on Belgium. It is fortunate
that a benighted region , owing all it has
of quickening civilization to tbe benefi
cence of the philanthropic spirit of this
monarchy , should have the advantage
and security of its benevolent supervision.
The action taken by this government
last year in being the first to recognize
the fiag of the international association
of the Congo , has been followed by for
mal recognition of the new nationality
which succeeds to its sovereign powers.
A conference of delegates of the princi
pal commercial nations was held at Ber
lin last winter to discuss methods where
by the Congo basin might be kept open
to the world's trade. Delegates attended
on behalf of the United States on the un
derstanding that their cart should be
merely deliberative , without imparting
to the results any binding character , so
far as the Uuited States were concerned.
This reserve was due to the indisposition
of the governmert to share iu any dis-
pos-il by an intematiouaf congress ofjur-
isdictional questions in remote foreign
territories. The results ! of the confer
ence were embodied in a formal act of the
nature of an international covenant which
laid down certain obligations purporting
to be binding on the signatories , subject
to ratification within one year. Not
withstanding the reservation under which
the delegates of the Uuited states at
tended , their signatures were * attached to
the general act in the same
manner as those of the plenipo
tentiaries of other governments ,
thus making the United States appear
without reserve or qualification as signa
tory to a joint international engagement ,
imposing upon the feigners the conserva
tion of the territorial integrity of distant
regions , where'we have no established
interests or control. Ths government
does not , however , regard its reserva
tion of liberty of action in the premises
as at all impaired , and holds that an en
gagement to share in the obligation of
enforcing neutrality in the remqte valley
-of the Congo is an alliancewfiole respjcm
iSurhe. I abstain from asking tbe sanc
tion of the senate to that act. The cor
respondence will be laid before you and
the instructive and interesting report of
the agent sent by this government to the
Congo country and his recommendations .
for the establishment of commercial
agencies on the African coast are also
submitted for your consideration. *
The commission appointed by my pre
decessor last winter to * visit the Central
and South American countries and report
on the methods of enlarging tue com
mercial relations of the United States
tuerewth has submitted reports which
will be laid before you. No opportunity
has been ornmittetf to testify the friendli
ness of this government toward Corea ,
whose entrance into the family of treaty
powers the United States were the first
to recognize. I regard with favor the
application made by tbe Corean govern
ment to be allowed to employ American
officers as military instructors , to which
the assent of congress becomes necessary ,
and I am happy to say this request has
the concurrent sanction of Cuina and
Japan.
The arrest and imprisonment of Julio
R. Santos , a citizen of the Uuited States ,
by the authorities of Ecuador , gave rise
to a contention with that government in
which his right to be released or to have
a speedy and impartial trial with an
nounced charges and with all guar
antees of defense stipulated .by
treaty , was insisted upon by us.
After an elaborate correspondence aud
repeated and earnest representations on
our part , Mr. Santos was. after an al
leged trial and conviction , eventually in
cluded in a general degree of amnesty
and pardoned by the Equadorian execu
tive and released , leaving the question
of his American citizenship denied by
the Equadorian government , but insisted
upon by our own.
The amount adjudge : ! by the late
Trench and American Claims commis
sion to be due from tbe United States to
French claimants on account of injuries
suffered by them during the war of seces
sion having been appropriated by the last
congress , has been duly paid the French
government.
The act of February 25,1885 , provided
for a preliminary search of the records of
the French prize court for evidence bear
ing on the claims of American citizens
against France for spoliations committed ( 1
prior to 1801. The duty has been per
formed , and the report of the agent will
be laid before you.
I regret to say that the restrictions
upop the importation of our pork into
France , notwithstanding the abundant
demonstration of the absence of sanitary
danger in its use , are continued , but I i
entertain strong hopes that , with a better 1
understanding of ttie matter , this vexa1 ' 1
tious prohibition , will be removed. It ; '
would be pleasing to be able to say as E
much with respect to Germany , Austria 1
and other countries where such food 1
products are absolutely excluded without 1I 1
present prospect of reasonable change. I
The interpretation of our existing 1A 1
treaties of naturalization by Germany 1I
during the past year has attracted atten I
tion by reason o'f an apparent tendency
on the part of the imperial government to j t
extend the scope of the residential re- t
strictions to which returning naturalized i
citizens of German origin are asserted to i 1
be liable under the laws of the empire , t
The temporate and just attitude taken by U
this government with regard to this class , >
of questions will doubtless lead.to a satisI I
lactory understanding. J v
The dispute of Germany and Spain ,
relating to the domination of the Caroline
islands , nas attracted the attention of this
government by reason of extensive
interests of American citizens hav
ing grown up in those parts during
the last thirty-nine years , and because
the question of ownership involves juris
diction of matters affecting the status of
our own citizens under civil aud criminal
law. Whilst standing wholly aloof from
the proprietary issues raised between
powers to both of which the United
.States are friendly , this government
expects that nothing in the present con
tention will unfavorably affect our citi
zens carrying on a peaceful commerce or
there domiciled , and has so informed the
governments of Spain and Germany.
The marked good will between the
United States and Great Britain has been
maintained during the past year. The
termination of the fishing clauses of the
treaty of Washington in pursuance of the
'
joint resolution of March 3N 1SS3 , must'
have resulted in the abrupt cessation on
the 1st of July of this year , in
the midst of their ventures , of the
operations of citizens of the United
States engaged in fishing in Brit
ish-American waters , but for a di
plomatic understanding reached with
Her Majesty's goverment in June last ,
whereby assurance was obtained that no
interruption of those operations should
take place during the current season.
In the interest of the good neighborhood
of the commercial intercourse of adjacent
communities , the question of the North
American fisheries is one of much im
portance. Following out the intimation
given by me when the extensiary arrange
ment above described was negotiated , I
recommended that the congress provide
for the appointment of a commission in
which the governments of the United
States and Great Britain shall be respec
tively represented , charged with the con
sideration and settlement upon a just ,
equitable and honorable basis , of the en
tire question of the fishing rights of the
two governments and their respective
citizens on the coast of the United States
and British N"orth America. Fishing in
terests being intimately related to the
gsneral ques'cions dependent upon con
tiguity and intercourse , consideration
thereof in all their equities migh also
properly come within the purview of such
commission , and the fullest latitude of
expression on both sides should be per
mitted. The correspondence in relation
to the fishing rights will be subuiittd.
The Arctic exploring steamer' 'Alert. ' '
which was generously given by Her
Majesty's government to aid in the relief
of the Greely expedition , was , after the
successful attainment of that humane
purpose , returned to Great Britain in
pursuance of the authority conferred by
the act of March 3 , 1SS5.
The inadequacy of the existing engage
ments for extradition between the United
States and Great Britain has been long
apparent. The tenth article of the
treaty of 1842 one of the earliest com
pacts in this regard entered into by us ,
stipulated for surrender in respect of
a limited number of offences.
Other crin > es no less inimical
to the social welfare should be embraced ,
and tbe procedure of extradition brought
in harmony with present international
practices. Negotiations with Her
Majesty s government for an enlarged
treaty of extradition have been pending
since 1870. and I entertain strong hopes
that a satisfactory result may be soon at
tained.
The frontier line between Alaska and
British Columbia , as defined by the treaty
of cession with Russia , follows the de-
markation assigned in a prior treaty be
tween Great Britain and Russia. Modern
exploration discloses that this ancient
boundary is impracticable as a geograph
ical fact. Iu the unsettled condition of
that region , the question has lacked jm
portance. out the discovery of mineral
wealth in the territory which the line is
supposed to traverse admonishes us that
the tiifle has come when an accurate
knowledge of theboundary is needful
to avert jurisdictional complications.
I recommend , therefore , that provision
be made for a preliminary reconnoU
by officers ofb&i United States ,
on the' stfjjcct. I have inviteu _ _
Majesty's government to consider with
us the adoption of a more convenient
boundary to be established by meridian
or other observation , or by known geo
graphical features , without the necessity
.of an expensive survey of the whole.
The late insurrectionary movements in
Hayti having been quelled , the govern
ment of thai republic has made prompt
provision for adjudicating the losses suf
fered by foreigners because of hostilities
there , and the claims of certain citizens
of the. United States will be in this man
ner determined.
The long pending claims of the two
citizens of the United States. Pelletier
and Lazare , have been disposed of by
arbitration aud an award , in favor of
each claimant , has been made , which by
the terms of the engagement is final. It
remains for congress to provide for the
payment of the stipulated moiety of the
expenses.
A question arose with Hayti during the
past year by reason of the exceptional
treatment of an American citizen , Sir. Vau-
bokkeieu , a resident of Port Au Prince ,
who , on suit by creditorsresiding iu the
United States , was sentenced to impris
onment , aud under the operation of llay-
tian statute was denied relief secured to
a native Haytian. This government as
serted his treaty right to equal treatment
with natives oflfayti in ah suits at law.
Our contention was denied by the Ilay-
tian government which , however , while
still professing to maintain the ground
taken against Mr. Vaubokkelen's rinht ,
terminzr.ed the c ntroversy by setting
him fit liberty without explanation.
An international conference to consider
the ciJis of arresting the spread of ,
cbol'jiu ttnd other epidemic diseases was
held at Rome in May last , and adjourned
to meet again on farther notice. An ex
pert delegate on behalf of the United
States has attended and will submit re
port.Our
Our relations with Mexico continue to
be most cordial as befits those of neigh
bors between whom the strongest ties of
friendship aud commercial intimacy exist ,
as the natural and growing consequence
of our similarity of institutions and
geographical propinquity. The reloca
tion of the boundary line between the
United States ancl Mexico eastward of
the Rio Grande under the convention of
July 29 , 1SS2 , has been unavoidably-de
layed , but I apprehend no difficulty in
securing a prolongation of the period of
its accomplishment. The lately con
cluded commercial treaty with Mexico
still awaits the stipulated legislation to
carry its provisions into effect , for which
one vear's additional time has been se
cured by a supplementary article signed
in February last and since ratified on
both sides. As this convention , so im- .
portaut to the commercial welfare of the
two adjoining countries , has oeen con
stitutionally contirmed by the treatT-
making branch , I express the hope that
legislation to make it effective may not
be long delayed. The large iullux of
capital and enterprise to Mexico froth the
Uuited States continues to aid in the de
velopment of the. resources and in aug < -
menting the material well-being of our
sister republic ; lines of railway , pene
trating to the heart and capital of the
country bringing the two peoples into
mutually beneficial intercourse and en
larged facilities of transit , add
ed to profit ble commerce , create
new markets , aud furnish re
venues to other isolated communities.
have.already adverted to the suggested
L-oustiuctiou of a ship railway across the
narrow formation of the territory ol
.Mexico at Teheuancepeo. With the
gradual recovery of Pent from the efff cts
of her late disastrous conllict with Chili ,
and with the restoration of civil author
ity in that distracted country , it is' hoped
that pending war claims of our citizens
will be adjusted.
In conformity with notification given
by the government of Peru , the existing
treaties of commerce and extradition 'be
tween us and that country will terminate
March 31 , 1SSG.
Our good relationship with Russia con
tinues. An officer of the navy detailed
for the purpose is now on his way t <
Siberia , bearing the testimonialsvotet
by congress to those who generously
succored the survivors of the unfortunate
' - Jeannette" expedition.
It is gratifying to advert to the cor
diality of our intercourse .with Spain
The long pending claim of the owners o
the ship tl Masonic" for loss suffered
through the admitted dereliction of the
Spanish authorities in the PhiUIpplne
Islands , has been adjusted by arbitratioc
and an indemnity awarded. The princi
ples of arbitration in such cases to which
the United Slates has long and consist
ently adhered , thus receive a fresh anc
gratifying confirmation. Other questions
with Spain have * been disposed of or
are under diplomatic consideration with
a view to just and honorable settlement.
The operation of the commercial agree
ment with Spain of January 2d and Feb
ruary 13,1884 , has been found inade
quate to the commercial need of the
United States and the Spanish
Antilles , and the terms of the agree-
nient are subjected to contlict-
ing interpretations in those Islands.
Negotiations have been instituted at
Madrid for a full treaty not open to the
objections , aud in the'line of the genera !
policy touching the neighborly inter
course of proximate communities , to
which I elsewhere advert , and aiming ,
moreover , at the removal of existing
burdens and annoying restrictions ; am
although a satisfactory termination is
promised I am compelled to delay its an
nouucemeut.
An international conference was heic
at Bern' in September , on the invitation
of the Swiss government. The envoy of
the Uuited States attended as a delegate ,
but refrained from committing the gov
ernment to the results , even by signing
the recommendatory protocol adopted.
The interesting and'importaut subject of
international copyright has been before
you for several years. Action is certainly
desirable to effect the object in view ,
aud while there may be a question as to
the relative advantage of treating it by
legislation or by specific treaty , the ma
tured views of the Berne conference can
not fail to aid your consideration of the
subject.
Tue termination of the commercial
treaty of 1SU2 between the United State
and Turkey has been sought by that gov
ernment. While there is a question as to
the sufficiency of the notice of the ter
mination given , yet as the commercial
rights of our citizens in Turkey come un
der thi' favored national guarantees ol
the prior treaty of 1830 , and as equal
treatment is admitted by the porte , no
inconvenience can result from the assent
of this government to the revisions of the
Ottoman tariffs , on which the treaty
powers have been invited to join.
Questions concerning our citizens in Tur
key may be affected by the porte's non-
acquiescence in the right of expatriation ,
and by the imposition of religious tests
as a condition of residence , in which
this government cannot concur. The
United States must hold in their inter
course with every power that the status
of their citizens is to be respected , and
equal civil privileges accorded to them
without regard to creed , and affected by
no considerations save those growing out
of domicilian return to the laud of origi-
iaJallfcgLmeGFofr.nfiillilled personal
obligations which may survive under mu
nicipal laws after such voluntary return.
The negotiation with Venezuela rela
tive to the rehearing of the awards of
the mixed commission constituted under
the treaty of 1SGG , was resumed , in view
of the recent acquiescence of theSene-
zuolan envoy in tbe principat\aQ gad- *
i olff treaty could oq 'be set
the operation of a new conven
tion. A result substantially in accord
with the advisory suggestions contained
iu the joint resolution of March 3 , 1SS3 ,
has been agreed upon , and will shortly
be submitted to the senate for ratifica
tion.
tion.Under
Under section 3C59 of the revised stat
utes , all funds held in trust by the
United States , and the annual interest
accruing thereon , when not otherwise
required by treaty , are to be invested in
stocks of the Uuited States bearing a
rate of interest not less than 5 per cent
per annum. There being now no pro
curable stocks paying so high a rate of
interest , the letter of the statute is at
present inapplicable , but its spirit is sub
served by continuing to make invest
ments of this nature in current stocks
bearing the highest interest now paid.
The statute , however , makes no provi
sion for the disposal of such accretions.
It being contrary lo the general rule of
this government to allow interest on
claims , I recommend the repeal of the
provision in question , and the disposi
tion , under a uniform rule , of the present
accumulations ] from investment of trust
funds.
The Inadequacy of existing legislation
touching citizenship and naturalization
demanr 3 your consideration. While
reeog. ) , .ing the right of expatriation , no
siatuo-f provision exists providing
rneinfor renouncing citizenship by an
Am'/I.-.n , native-born or naturalized ,
nor for terminating and vacating im
proved acquisition of citizenship. Even
a fraudulent decree of naturalization caii-
nol now be cancelled. The privilege and
franchise of American citizenship should
be granted with care , and extended to
those only who intend in good faith to
assume its duties and responsibilities
when attaining its privileges. It should
be withheld from those who merely go
through the forms of naturalization with
the intent of escaping the duties of their
original allegiance without taking upon
themselves tuose of their new status , or
who may require the rights of American
citizenship for no other than a hostile
purpose toward their original
government. These evils have
had many flagrant illustrations.
I regard with favor the suggestion put
forth by one of my predecessors , that
provision may be made for a central
bureau of record of the decrees of natural
ization granted by the various courts
throughout the United States now in
vested with that power. The rights
which spring from domicile in the United
States , especially when coupled with a
declaration of inteutian to become a cit
izen , are worthy of definition by statute.
The stranger coining hither with intent
to remain , establishing his residence
iu our midst , contributing to the gen
eral welfare , and by his voluntary act
declaring his purpose to assume the. re
sponsibility of citizenship thereby gains
in inchoate status which legislation'may
properly define. The laws of certain
states and territories admit a domiciled
ilien to the local franchise , conferring
an him the rights of citizenship to a de
gree which places him in the anomalous
position of being a citizen of a state and
i'et not of the United States within the
purvisions of federal and international
laws. It is important , within the scope
jf national legislation , to define this
right of aiien domicile as distinguished ,
trom federal naturalization.
The commercial relations of the United
States with their immediate neighbors
md with important areas of traffic near .
jur shores suggest especially liberal in- j
tercourse between them and us. Fol
lowing the treaty of 1SS3 with Mexico ,
which rested on "the basis of reciprocal
exemption from customs duties , otuer
similar treaties were initiated by my pre
decessors. Recognizing the need of
obstructed traffic with Cuba and Porto
Rico , and met by the desire of Spain to
succor languishing interest in the an-
tilles. steps were taken to attain those
ends by a treaty of commerce. " A simi
lar treaty was afterwards signed by the
dominion republic. Subsequently over
tures were made by Her Britamic majes
ty's government for a like mutual exten
sion of commercial intercourse with the
British West Indian and South American
independencies , out without result.
On taking office I wi hdrew lor re-
execution the treaties signed with Spain
and Santo Domingo then pending before
the Senate. The result has been to sat
isfy me of tbe inexpediency of entering
into engagements of this character not
covering tbe entire traffic. These treaties
contemplated the surrender by the Uuitei
States of large revenues for iuadequat
considerations. Upon sugar alone dti
ties were surrendered to an amount fa
exceeding all the advantages offered i
exchange. Even wer it intended to re
lieve our consumers , it was evident tha
so long as the exemption but partlallj
covered our importation , such rehe
would be illusory. To relinquish areve
nue so essential seemed highly improvi
derft at a time when new and large drain
upon thfe treasury were contemplated
Moreover , embarrassing questions wouli
have arisen unfler the favored nation
clauses of treaties with other nations
As a further objection it is evident tha
tariff regulation by treaty diminishe :
that independent control over its own
revenues whicji is essential for the safetj
and welfare of any government. An
emergency calling for an increase of tax
ation may at any time arise , and no en
gagement with a foreign power should
exiat tp hamper the action of the govern
inent.
By the fourteenth section of the ship
ping act approved June 2G , 1884 , certain
reductions and contingent exemption"
from tonnage-dues were made as to ves
sels entering ports of the United State :
from any foreign port in North and Oon-
tral America , the West India Islands
the Bahamas and Bermudas , Mexico am
the isthmus , as far as Aspinwall aud
Panama. The governments of Belgium
Denmark , Germany , Portugal Sweden
and Norway have asserted , under the
favored-nation clause in their treaties with
the Uuited States , a claim to like treat
ment in respect to vessels coming to the
Uuited States from their homt
parts. This government , however , hold
t at the privileges granted bj
the act are purely geographical
applying to any vessel of any
foreign power that may choose to engagi
in traffic between this "country and an :
port within the defined zone. , and that no
warrant exists under the favored-nation
clause , for the extension of the privileges
in Question to ve.-sels sailing to tuig coun
try "fioui ports outside the limitation o'
the act. Undoubtedly the relations of
commerce with our near neighbors
whose territories form so long : i iron tier
line difficult to be guarded , and who tint
in our country , and equally offer to
us natural markets , demand special and
considerate treatment. It rests with con
gress to consider what legislative actioi
may increase the facilities of intercourse
which contiguity makes natural aud de
sirable.
More Money for Diplomacy.
I earnestly urge that congress recast the
appropriations for the maintenance o
the diplomatic and consular service on
footing commensurate-wit i the itnport-
portance of our * national inteiests. A
every post h rS a clS trSfetl Tf Tie :
cessary , the salary should be so graded
as to permit him to live with comfort.
With the assignment of adequate salaries ,
the so-called notarial extra official fees
which our officers abroad are now. per
mitted to treat as personal perquisites
Every act requiring ine certification and
seal of the officer would be taxable at
schedule rates , and the fee therefor re
turned to the treasuiy. By restoring
these revenues to the public use , the
consular service would be self-support
ing , even with a liberal increase of the
present low salaries. The further pre
vention of abuses , a system of consular
inspection should be instituted. The ap
pointment of a limited number of secre
taries of legation at large , to be assigned
to duty wherever necessary , and in par
ticular for temporary service at missions
which from any cause may be without a
head , should also be authorized. I favor
also authorization for the details of offi
cers of the regular service as military or
naval attaches at legationsSome for
eign governments ao not recognize the
union of consular with diplomatic func
tions. Italy aud Venezuela will only re
ceive the appointee in one of his two
capacities , but this does not prevent the
requirement of a bond and submission to
the responsibilities of an officer whose du
ties lie cannot discharge. The
super-added title of consul-general
should be abandoned at all missions.
I deem it expedient that a well-devised
measure for the reorganization of the
extra territorial courts in Oriental coun
tries should replace the present system ,
which labors under the disadvantage of
lumbering judicial and executive functions
in the same ollice. In several Oriental
countries generous offers have been made
of premises for housing the legations of .
the United Slates. A grant of laud for
that purpose was made some years since
by Japan , ami has been referred ; o in
the.annual messages of my predecessors.
The Siamese government has made a
gift to the United btates of commodious
quartero iu Bangkok. In Corea the late
minister was permitted to purchase a
building from the government for lega
tion use . In China the premises rented
for the legation are favored as to lou.il
charges. At'l anglers the house occupied
by our representative has been for many
years the property of this goveinment ,
having been given for that purpose iu
1822 by the sultan of Morocco ; I approve
the suggestion heretofore maile that , iu
view of the conditions of life and admin
istration in the Eastern countries , the
legation buildingsiu China , Japan ,
Corea , Siam and perhaps Persia , should
be owned and furuishud by the govern
ment , with a view to permanency and
Security. To this end * I recommend that
minority be'given to accept the sifts ad
verted to in Japan and Siam. and to pur
chase in the otuer countries named with
irovisions for furniture aud repairs. A
: onsiderable saving in rentals would
result.
The Big Fair.
The world's industrial exposition held
at New Orleans last winter with the as
sistance of the federal government , at-
racted a large number ot foreign exhib-
ts , and proved of great value in spread-
rig amorjg the concourse of visitors 'coin
Mexico and Central and South America a
vide kuoweldge of the various manufact
ures and productions of the country , aud
heir availabili y iu excLange for the
reduction of those regions.
Ars Est Longa.
Past congresses have had under con-
ideration the advisability of abolishing
the discrimination made by the tariff
laws iu favor of the works of American
artists' . The odium of the policy which
subjects to a high rate of duty the paint-
iugo of foreign artists and exempts the
productions of American arti.-ts residing ,
abroad , and who receive gratuitously ad-
j vantages and instruction , is visited upon
our citizens engaged in art culture in
Europe , and has caused them , with
practical unanimity , to favor the aboll-
ri .in of such an ungracious distinction ,
and in their interest and for other obvious ,
reasons T strongly recommend it.
The Public Treasury.
The report of the secretary of ;
the , 'rcasury fully exhibits the con
dition of the public finances and' '
of the several branches of government
conncctt d with his department. Tbe
sti"gestio. n9 of tne secretary relating to
the practit operations of this important
department nd. his recommendations
regarding . 'mplification and economy ,
particularly L ' > the work of collecting cus
toms duties , are especially urged upon
the attentl . > c t congress.
Tbe ordinary receipts from all sources
for the fi-cal ye , % r ended June 30 , 1883 ,
.38. Of this
were SH2-J.COO.7v sum
$181,471,939 3-i ns received from cus
. 20.54 from internal
toms audd $112,4fr ' '
revenue , Tne tola ' reecipts as given
above weree $24tfc ' 0.1G3 o4 l-ss than
those for the year eiit > K J""e 0. 1SS4.
This diminutionembra ced a falling off of
§ 13.593.050.42 in tbe v-eceipts from cus
toms aud $9.US7,3.0.7 " the receipts
from internal revenue.-
The total ordinary exyx.ndittires of the
government for the' fi < asa.l l yelr : were ,
| 2UO,22G,93o.50 , leav > a-TVi "rPl"S m the
treasurv at the close of t'lbv ' ? ear of § G3-
463,771.27. This is S-IOVHO5 2 Jess
than the surplus repor.te l cff t& e ose of
the previous year. The expe iUi.fures are
classified as follows :
Chit expenses J'.JiX'.ll
F.nelguinterconrae 5.W * ; "
Jnilians G,5.1 X l { ' {
Pensions 5B,102SX4J
5B,102SX
Military ( iher anif harbor and
arsenals ) . . . . < 42,670,5731.1 ' ,
Xavy JO.fr-l.OTy.iOi
Interest on puiillcdebt M ESG.-'jtt.iU
Dlstrlctof CuluniDla 3.403G > 0 US
Miscellaneous . . . - . , . . . 54,723,054.211
The amount paid on thef public debti
during the fiscal * vear end'etJ ' June 30-
JSS3 , -,993233.43 ! , and there has
been paid since that dateaiido to Xov.
1 , 1SS.1 , the sum of § 309,828 , leaving the
amount of the debt at the lasf named
date § 1,514,473,8UO.47. There was ,
however , at that time in the treasury ap -
plicable to the general purposes o'f thcs
government the sum of SGG.SIS.292.38'-
The total receipts for the current fiscal I
year ending June 30 , 1SSG , ascertained l
to Oct. 1,1SS " > , and estimated for the re
mainder of the year , are § 315,000,000.
The expenditures ascertained and esti
mated for the same time are § 21.1,000-
000 , leaving a surplus at close of the year
estimated at § 70,000,000. The value of
exports from the United States to foreign
countries during the last fiscal year wa
as follows :
Domes-He incrclinmlisc $72firC2.9IO 00
Foreign merchandise ] 'i,50ir , SO < J OO
CaMl. ( ( . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4j7 ? fKJ-,2 00
Silver : ; : t(75.r ; < vit w
Total S 0,722.2tO > 00
Some of the principal exports with Jheiir
values and the percentage they respec
tively bear to the total exportation aifis
given as fellow's :
Our imports during the year were .13
follows :
Merchandise ? . " 7.r ! SO.f ! B SO
Gold 2i ; , < wiMtroo >
Silver lU.nso.GJ ? OC >
t-0 >
i | The following are given _ _
aTiicJes of i ortsTitiring tlic year , with
their values aud with the percentage they
bear to the importation :
AKTICLbS. Value. Peic t
Sujrarand molasses J7S,73S,713 13.20
Cotfee , 4G,7i5 318 8.09
Wool an i itsjaanufactures. . . . 4t.65G.432 7.7S
Hlk and U fannracturcs G.OS )
eings. androetli-
. 070.816
Iron and * A and their m'f * . . 5.OB :
F ax. hemp JSieand theirm'Is 32,84,874 5.C3-
Cotton and Its manufactures. . 23,152,001 4.83 ;
HMcs and skins other than fur-
skins 20oS6J43 3.5G ;
Of the entire amount of duties col
lected , 70 per cent was collected from the
following articles of import : Sugar and
moias = es 29 , wool and its manufactures
15 , silk and its manufactures S , iron and
steel and their manufactures 7 , cotton
manufactures ( J , llax , hemp aud jute and
their manufactures. 5.
In Favor of Protection.
The fact that our revenues are in ex
cess of the actual needs of an economical
administration of the government , justi-
fis a reduction in the amount exacted
from the people for its support. Our
government is but the means established
by the will of a free people , by which
certain principles are applied which they
have adopted for their benefit and pro
tection , and it is never better adminis
tered and its true spirit is never better
observed than when the people's taxa
tion for its support is scrupulously lim
ited to the actual necessity of expendi
tureand distributed according to just
and equitable plan. The proposition
with which we have to deal is the reduc
tion of the revenue received by the gov
ernment , and indirectly paid by the peo
ple from customs duties. The question
of free trade is not involved , nor is there
.now any occasion for the general discus
sion of the wisdom or expediency of a
protective system. Justice andfairness
dictate that in any modification of our
present laws relating to revenue , the in
dustries and interests which have been
encouraged by such laws , and in which
our citizenshavelarge investments.should
not be ruthlessly injured or destroyed.
We should also deal with the subject in
such manner as to protect the interests of
American labor , which is the capital of
our workingmen. Its-tabdity and proper
remuneration furnish the mo-t ju-tifiable
pretext for a protective policy. Within
these limitations , a certain"reduction
should be made in our customs revenues.
The amount of such'reduction having
been determined , the inquiry follows ,
Where can the tariff best be remitted ,
and what articles can best be released
from duty in the interest of our citizens ?
I think the reduction should be made in
the revenue derived from a tax upon the
imported necessaries of life. We thus
directly lessen the cost of Jiving in every
family of the land and release to the
pu .lie in every humble home a larger
measure of the rewards of frugal indus
try.
National Banks and Silver Currency.
During the year ended Xov.l , 1SS.1 ,
one hundred and forty-live national banks
were organized , with an aggregate cap
ital of § 16,938,000 and circulating notes
have been issued to them amounting to
84,274,910. The whole number of these
banks in existence on the day above
mentioned was 2,727. The very limited
amount of circulating notes issued by
Our national banks compared with the
amount the law permits them to issue
upon a deposit of bonds for their re
demption , indicates that the volume of
our circulating medium may be largelv
increased through this instrumcutalitv" .
Nothing more important than the
present condition of our currency and
coinage can claim your attention. Since
February , 1878 , the government has ,