PItKSI DENT S MESSAGE CONDITION OF THE COUNTRY ClAKN AT LENGTH. Hat tern of InUrait at Homo and Abroad ^AMrmlintnd to th# Now Tor Iff Hill ftlrwagly I rgftl by Wlilt*l» Coni ind Iron May Ho rinwl on (ho Free LUt—A Row Hanking HrliPins by Carlisle— Affaire of the Army nod Navy—‘As to •fvaaloBi, etc. The Message to Congress. Vf Asm no ton, Do a 3.—Tho following “fa tho president's monsago to congress: Metaate to tha oonrrnaa of tho 1,’nili-d fit.ten Th. aasemhlatfe within tho nation, le.Illative, balla of thoaa char-ed wlthtlin ^’•lf °* mnldn i laws for tun tmnnllt of a yon croon and frao people tmprn «alvnly autyoits tho exacting ohtl .atlon and tnexnrablo ro • poaxlbdlty Involved In Ihelr tnxlc At tho threshold of .uoh labor m w to Ini undortakon by lh« oon*ro«a of tho U ultod Staloa and In too dH. bar jo of an executive duty enjoined by Ihn eonttltutlon. I aubmlt thla communl 'Cation fl.tni lining a brief .tateraint of llio condition of our n ttlo ml affair, an J rooom anondioR .uoh lo Illation aa aaum. to be nocoa •ary and expedient. The biatory of our reoent dealtn.i with ••Ihnr a.tion. and our poae.ful rolatlona with thorn at thla tlmo. additionally demon •train the advantairo of oontlatontly adhering to a firm tout juat forntgn p > Key. free from cnv.oui or ambitious nation il aohnmns and Jhxrai ierlxod bynntlro honoaty an I nlncerllv I) irlns tho p.iat ynnr, puraimnt to u law id «®n reaa, commissioners worn appolnlot to the Antwerp Indtixtrl il ex position. t hou. h t tin partlclpatl n of Atnorl.uvn othlbltora foil far abort or ootnn etoly t lustrntlnt our national Ingenuity and tndmtrlal nchlnvumenl', yot It •ax quite fro lltahln In vlor; of tho brief lltr.u .•Unwed fur proptrai Ion .‘I 1 have ondiiavorod to Impress upon tho lid eovrrnment tho noo lloaanoaa unt poal tiye harmful'tosa of Its rnitrlotiimx upon tho taaoortailon ofcnrtilnof our food products •nd toavu atr m rly urrod that tho rljld super iwl.ion and Inapootimt undor our laws aro ■amply Kudlilunt to provent tho doportatlnn •yonj Ihl-, country of- dlauaaod oalllu and tin TIi* termination or the civil war In llra/ll hao t et»n lod.iwcl by tho general provuhm'-u cf po u-o and or tor It uppoartn r at an o.irlv •ti c o! the Insurrection that It*course «oul I -Ball for unusual watchttilniHi an til l part or Cliin ;ovcrninont our nnvnt foron In mo hirlmr ■ •lltio Jo J.ini'lro was strun.’thono 1 This ■procaution t am intls'lel, t-m lo.l l i restrict ■ The l sun to u simple trial of a trim ;tli hot woo i •h« llratlllnn irovcrnmont an I thn Intiirtoau. •oil to avert complloatlana which at tlinot ■Mmimt Immtnont Our llrra ritlt.u In of nou Bralli v was maintain!) I to tlm oml. tlin In •uvgents ro olvoil no encouragement or event ual asylum from oar oominmilora and such cpposltsnm thoy o icount irtul was for tho jiroto. non of our commnrco anil was clearly Justified by public law A sorlout tension of delations Invln: arisen at thi oloso or tin «ar between ltrazll an I Portu'f il liy reason Bfflin caetpeof the liu urgent Aitmlral lie <•»» anil his fallownrs Tho fronaiyomces «f cur representativei to thosn countries sacre eyerie.1 for tho protection of the sub jects of either within the territory of thn other Althou;h the covornmont of ltrazll was duly moUtla.l that tho commercial arrangements •djl-to-ig between tht> United Statui anil that ■o. uatry, baso i on thn third snotion of the Tana Act of :K0>, was abroga'od on Aug. 21, 1STI,by tl.e tukln ■ offeot of tho tariff law now In for.e. that geeornmout subsequently notllloif '•v of iib Intention to terminate an h arrango uent an the flr<> day of January, IH)S, In tho •sercl-eo! tho right ro-orvoil la tho airoo «*■!« briwjeqn tho two coiintrloi t Invito a .■section to the correspondence lintworn tho mo r tarv of state and tho llrsilllan minister ao this subject The China-Japan War. Acratlfylnf recognition of the uniform lm iparit illt,- of t his country towards all forotgn ■•Istes was man treated by the coincident ro ■qne-l of tho Ch Ineso mid Japnnoso govern xuest - that tnn a 'oats of tho United States •boutd within proper limit» afford protection To (he stihie.us of tho other during the huh ;pe»si >u of dip lomatlo relations duo to a state This dellcnto office was accepted, ■ ond » Btl-npprohenslon which cave rl-c to tho belief that In affording this kindly unofficial ■ |wotuclion our a outs would oiorciso Tho tune authority which tho with Crown a onto of tho belligerents h ul •sercl od w as promptly corroded. Although Tfio war between (’hi na anil Japnn endangers -«*> Do.icy of tho United Staton It deserves our fravost consideration, hy reason of Its dls -Turbanco of our trowing commercial Interest In the two countries and tho tncrevod dangers whten may result to our citizens domiciled or ■ •oj-'ornin • In tho Interior of China Acting anwher a stipulation hi our treaty with Korea. Tndoco un amicable arrangemout of tho Initial difficulty growing out ortho Japanese demands for ad mtnistrntlvo relorms In Korea tut tho unbappv rroclpltutlon of ■cetuilhotitllltlesdefeated this kindly purpose © •p lor In t tho destructive war between tho Two most powerful of tho Kostorn nations •nd anxloui that our commercial Intorosts In Those countries mav bo preserved and that ■ The safety of our citizens there shall not bo Jeopardize.! I would not hesitate to heed any Unimaljon that our friendly nht for tho rhooorable termination of hostilities would be cccceptabie to both belligerents. A tonvention has boon ttnally concluded for ‘Th- Mdtlomont by arbitration of the proton od dUsyuite with Kcundor growing out of tho pro uonriBH ■» against Kmilli Santos, a naturalized 'Citizen of the United States. «cm lane to be such as should extst between w<m* so Ion? bound to.other by friendly sympathy and similarity in their form of gov* •Brnment The recent cruel assu slnation of '%h« president of thU sUtor republic called forth such universal expressions of sorrow ► sad condolence from our people and govern* 'Sient as to leave no doubt of the depth and iBincerity ot our attachment. The resolutions .#oaaed by the senate and house of ropresenta* ' on the occasion have boon communicated Uto the widow of President Carnot. J.he Germany .Vent Prohibition. *• ‘Acting trpon the reportod discovery of Texas lever in cargoes of American oattic the Ger* ■ton prohibition against importations of live vntock and fresh meatt from this country has f lten revived It is hoped that Germany will Bonn become convinced that the inhl >ltion is 40« needless os It is harmful to mutual in* iferests. TO© German government has protested •against that provision of the oustoms tariff '*cC which imposes a discriminating duty of *WB©-*c*thof one cent a pound on sugars oom ting from countries paying an export bounty Bhereon. claiming that the exaction of such -duly Is in contravention of articles five and mine ot the treaty of I8d*4 w.th Prussia In the ; Interests of the comm >ro of both countries »*wd to avoid even the accusation of treaty •violation I recommend the repeal of so much *Bf the statute as Imposes th\t duty and 1 in cite attention to the accompanying report of ths secretary of stats containing a discussion «f the question* raised by the German pro gnosis- } 3 7 * Irhrlns Sen Arbitration. ^ '"Early In the present year an agreement was ^reached with Great Britain concerning in struction* to be given the nuvtl commanders •oC tie two government} in Behring sea and 'the contiguous North Pacitlc oooan for •Bfceir guidance in the execution of the •mward of the Paris tribunal of arbitration aud BBo enforcement of the regulations therein prescribed for the protection or seal life in the waters mentioned. An und'rstandtn • has also been reached for the payment bv the ITnited States of in full satisfaction of Bit claims which may be ma le by Great Brit* t-Bte for dama es crowing out of the controvert os to fur seals In Behring sea. or the sets* 9* vessels en ;a ei in taklnj a seal in those water*.' The award and finding* of t!i© Pari* tribunal to a great extent deter* rnln d the fact* and principle* upon which thrno claim* shou d lx* uijustol and they have boon subjected b; b.uh government* to thorough examination upon the principle* as well a* the fact* whicn they involve. I am convlncod tliat a aottlo.nonl upon the term* mentioned would be an equitable and advnn* tpgoou* one and I recommend that provision fa- made for the prompt piyment of the stated sum Thu* far only Franc* and Portugal have sl.-nlflod their wUlincnof* to adhere to tlm regulation* cstablisho l under the award of tho Paris tribunal of arbitration. I bo llawuliau Incident. Since crnnmunlcaltn t tho voluminous cor* re^pon lenco in ro-ard to Hawaii and tho ac tion taken by tho senate and hou.no of repre sentative* on certain question* submitted to the Judgment and wider discretion of congress the organization of a gjverumont In place of the provisional arrangement which followed the deposition of the qmen hk* been an nounced with evidence of It* effective op rdoring on thn At lantlo ocean and within tho Jurisdiction of Nil lira ■tin. liy tho treaty of ism botwoon Uroat llritaln and Nicaragua tho former government expressly recognized tho sov orolgnty of tho latter over tho atrip un i a Uinltod form of self government was BUarantnol to th> Mosquito Indians to ho cxorct-sod aocordln ■ to tliolr customs for thuiesolvos and their dwollors within Its limits. Tho Mo-callod nnllvo government whlehll uresv to bo lamely made up of nllons for many years dlsputol tho sov ereignty of Nicaragua ovor tho strip and claimed tho rlilit to main! sin thorotu a pra it! rally Independent municipal government Early In tho pnat yoirofferts of Nioarajua to maintain sovorel nty over tho Mosquito ter ritory lol to serious dm tur buncos culminating In tho supprosslon of tho natlvo government and tho attompto 1 s institution of an Impract icable oampaet administration In which Nlcar a ui and alien residents worn to partlclpat *. Failure was followed hv on Insurrection which for a time nuhvertod Nicaraguan rule, ox poll ing her officers nnd restoring tho old organization This In turn gave way to tho existing looal government established and uphold by Nicaragua. Although tho alien Interests arrayod a latest Nloaraiua In thoso transactions have boon largely American and the commerce of that re Usurer some tlm> has boon and still Is con trolled by our ift'.l'Sqj wj cam it fir that roas.su ohuliongo the rijht.'ai sovereignty of Nicaragua over this Important part of her domain Forsomo months on nn l during part of the term, two or our naval ships have boon stationed at llluellolds fur the proteetlon of ! all legitimate Interests of our citizen 1. In September hist thi gevernraont at Managua expelled from Its territory twolvo or mure for d mors Including two | AiqerUans for alleged participation In tho (seditious or revolutionary movements against i the republic nt Uluoltehls already inon ! turned Through tho earnest romeastratloa of this .ovorsynent tho two Americans have noon permitted To return to tin peaceful manage ment of their bUBlnoss Our uaval commanders at the scene of this disturbance by their con stant oxhl Itlon of firmness und good Judg i ment contribute l largely to the prevention of more serious eonssniuencos and to the restora tism of quiet and ordor I re rot that In tho midst of these occur ronces there oponud up a mostgravo irritating failure of Nloara uin Justice An AmsSican elilzon named Wilson, residing at ltama. In tho mosquito territory was murdered by ono Arguelto tho noting governor of tho town After some del ty the murderer was arrested, but so Insecurely contlned or .guard 'd that ho escape I. and n it wit ist inlln; our repeated demands It Is claimed thit his recapture his been Impossible l y rea.oa ot Ills flight beyond Nicaraguan Juried.ctl in. Tho Nicaraguan authorities having given notice of lorfelture of their concession to the canal oompany on groun Is purely technical and not embraced In the oontraet receded from taut pos tlm IVru, I regret te say, shows symptoms of domostlo disturb ince, dui probably to tho sloivucss of her recuperation from the war of IS'l Weakened In resources, nor difficulties In facing interaatio-tal obligations Invito our kindly sympathy and Justify our forbearance la pressing long pending olalms I have felt constralnod to tostlfy this sympithy In con nection with certain demands urgoatly pre ferred by other powers Tho recent death of the ezir of ltessl n iii,s,t forth appropriate expression* of sorrow ana I sympathy cn tho pirt of our government with his bereaved family ani tho Ku-slm people As a further donionstrntl m of resnoot and friendship our minister at St Petersburg was j directed to represent our government at the funeral ceremonies Uujust Huei by Spain on Our Ships. Unreasonable and unjust fines imputed by Spain on tho ves.-els and commerce of the | United States have demanded from time to time during the last twenty year* earnest re monstrance upon the part of our government. In the immediate past exorbitant penalties have been Imposed upon our vessels and goods by customs authorities of Cuba and Porto Rico for clerical errors of tho most trivial character in the manirests or bids of lading. In some cases fines amounting to thousands of dollars have been levied upon cargoes or tho carrying vessels w^en tho goods in question were entitled to free entry Fines have been exacted even when the error has been detected and the Spanlsn authorities notified before the arrival of the coods in por$. This conduct is in strange contrast with the con siderate and liberal treatment extended to Spanish vessels and cargoes in our port* in like cases No satisfactory settlement of these vexatious quostious has yet been reached Tho Mora ca*e referred to in my last annual message remains unsettled From the diplomatic correspondence on this sub | ject. which ha* been laid before the senate, it will be seen that thi* government has offered to conclude a convention with Spain for dis I posal by arbitration of outstanding claims j I between the two countries excopt the Mora ! , claim which having been long ago adju^tod. 1 | now only awaits payment as stipulated.and of i I course it could not bo included in the pro- j j posed convention It was hoped that this I offer would remove parliamentary obstacles | J encountered by the Spanish government in : providm payment of the Mora indemnity. I I regret to say that no definite reply to th s ! offer has yet been made and all efferts to se cure payment of thi* settled claim have been unavailing In my la«*t annual message I adverted to the claim on tho part of Turkey of theri:bt to expel as person* undeslrablo and dangerous. Armenians n iturullzed in the United State* | and returnln; to Turkish jurisdiction. Nu ' met cun question* In this relation have arisen While tut* governmentacqutesoia In the as serted rl-ht of expulsion It will not consent that Armenian* may tw Imprisoned or other wise punished for no other reason than bar In / acquired, without Imperial consent, Amor can citl/en-thip Tbroo of the usiallants of Mum Melton an American teacher at Mosul, have been convicted by the Ottoman courts, and I am ml vised that an nppoal a/aiiMt the acquittal of tne remaining live has been taken by the TurkUh prosecuting officer*. 1h» Kamoiin Troubles. In my la^t annual mo Mage I referral briefly %o the unsatisfactory state of affairs In J-uinua under the ope ration of the Berlin treaty, as alwnally itlustratln; tho policy of cntan/lln; alllnnces with foreign powers and on May W, 1HPJ. in response to a resolution of the senate I sent a special message and documents to that body on tho same subject whlzh ompha- , sized my previously expressed opinions. | Later occurrences, the correspondence In re pard to which will bo laid before congress, j further demonstrated that the government which was devi«ed by the three powers and forced upon the Samoans us/alnst thilr Invet erate hostility can be malntnine 1 only by the continued presen :u of fore! :n military forces and ut no small sucrlli.o of life and treasure. T he suppression of the Mataafa Insurrootlou by the powers, and tho subsequent banish mont of tho loader and olevon other chiefs, as j recited in my last message did not bring last- j ing peace to the Islands. Form!lablo upris ings continued and llnally a rebellion broko out In tho capital Island. Upolu. headed In Anno, tho Western district, by tha youn jer Tumasoae. and In Atua. tho Eastern district, by other loider* Tho insurgent* rava.ed the country and foujht tho government troops up to the very doors of Apia The kin/ a min appealed to the powers for help unJ the combined British end German naval forces reduced the Atuans to apparent subjection not however without con siderable loss to the natives A few days later Tarnnssose and bis adherents fearing the ships and marines professed submission. Re ports received from our agents at "Apia do not Justify the belief that the poneo thus brought about will be of long dura tion It is their conviction that tho natives are at heart hostile to tho present covorn ment that such of them as profits loyalty to it do so from fear of tho powers and that it would speedily go to pieces If tho war ships were withdrawn In roportln t to his government on too unsatisfactory situation sinoo the suppression of the 1 ito revolt by foreign armed forces the Gorman consul at Apia stated that that peace will bj lasllnz Is hardly to bo pre sumed Tho Jossoa given by ilrinr on Atua was not .sufficiently sharp uni incisive to leave a lasllnz impression on the forgetful Samoan temper uncut In faot conditions are existing which show that poace will not last and is not seriously intended. Mallotoa the kin/ and Ids chiefs are convinced that tho departure of tho war ships will bo a signal for a renewal of war Tho circumstances that the representatives of the villages of nil tho districts which wore opposed to tho goverutmnt have already with drawn to Atua to hold meeting and that both Atua and Aana have forbidden in Habitants of those districts which fou ht on tho side of tho government to return to their villa-os and have already partly burned down tho latter. Indicates that a real conciliation of the parties Is still far off And in a noto of tho loth ult Inclosing a copy of that report for the information of tho government tho Gorman ambassador said: “The contents of tho reports awakened tho Imperial govern ment's anprohousion that under existing olr cumstances the peace concluded with the rebols will afford no assurance of tho lasting restoration of tranquility In the Islands." Tho present govern mont utterly failed to correct, if Indeed It has not a/gravatod. tho very evils it was intended to prevent. It has not stimulated our commerce with the Islands Our participation in its establish ment acatnst tho wishes of the natives was in plain detlanco of the conservative teachings and warnings of the wise and patriotic men who laid tho foundation of our free institu tions. nnd I invite and expreision of the jud;ui«nt of congross on tho propriety of Bt“ps beiaz taken by this govern mont lookinr to the withdrawal from its emzajoments with tho other rowers on somo reasonable terms not nreilldicl ll to unv of our ttrUtin r rlt*ht» Treasury Department. The secretary of the troasury reports that the receipts of the government from all sources of revonue during the fiscal year end* In* Juno 20, 1801, amounted to $72,842,489 29 and Us expenditures to $44 2,50* 758.8 7, leaving n deficit of •.03,801,26».5S There was a de crease of *15,9vj 074 60 in tho ordinary expenses of the covorumont, as compared with tho fiscal year 1893 There was collected from customs $U1,818. - 5"0 0*2, and from internal revenue $147,101 419.81 The balance of the income for the year amounting to $03,815,517 97, was derived from tho sale* of lands and other sources. Tho value of our total dutiable imports amounted to $*375.19).083. botn : .d40,6">7.624 losi than durlnx tho preceding yoar and ths im portations rr >9 of duty amountod to $. 79,735, 6.6 boln* .64748,673 loss than dur.n ,r the pre ceding yoar The rocoipts from customs were $73.5.. 0 486 11 loss and from internal rev enue 11.816.539 07 loss than in 1833 Tho total tax collected from distilled spirits was 185.259,2*0 2\ on manufactured tobacco $28 617,891.63 and on Tormented liquors 1.31.414,788 04 Our exports of raerchandhe, domestic and forel-rn, amounted dur.n 'the year to 1892.14J, 67*3, hein • an increase over the preceding year Of ''.44,49\378 Tho total amount of rrold exported during tho fiscal year was $76 838,061. as against *108. 689,i44durin : tho fiscal year 1893. The amount imported was 372 419,U9 as against $21,174.; 81 durin • tho previous yoar The imports of silver were $13,286,5^2 and the exports were i to. 451 21*6 c iic uh 41 uountv paiu upon mo production of su nr In tho United J-tilot for the fiscal year wot ii.M U,an.M twin: an Increase of *2;3>,U78 1 over the pavra-nts made during the precedln: year The amsuntof bounty paid from July I. 1*91 to August I, I89», the time when further payments ceased by operation of law. was t. M The total expenses Incurred in the payment of the bounty upon su:ur during the flscat year was *liu.l4#8i It Is eitimated that upon the ba sts of the present revenue laws the receipts of tho government during the current fiscal year ending June Ji, lays, will be 431,4)7. 748 41. and its expenditures *414,417. *48 s4, re sulting In a deficit of i3) 0)J,0J0 The first day of November. 1894, the total stoch of money of all kinds In the country was *3.840,77.1888, as against IB.Sdi d51 - 001 on tho first day of Novonfoor, 1891, and the monoy of all kinds in circulation or net Included in the treasury ho'.din s was fl,'Pi091.481 or S3L37 per capita upon an estimated population of es.a87.0i). At the samodato there was held In the treas ury gold bullion amountlar to N4.dI.V307.5i and silver bull,ou which was purchased at a cost of *117 770.9)8 The purchase of silver bullion under tho act of July is, 4899, ceased on tho first day of November. 1894. and up to that time there had beou purchased during tno final year 11,917,858.78 fine ounces at a cost of v8,715,53134 an average cost of 10 7313 per lino ounce The total amouut of silver purchased from tho time that law took effect until the repeal of Its purchasing clause on the date Inst mentioned was ids,074.084.51 fine ounces, which LO-t *157 #51.003 3\ the average price per fine ounce be ing # 9344 The total a , ount of standard sil ver dollars coined at the mints of the United States since the passage of tho act of Febru ary .8, 18.-8, Is *4:1.7.484498. of which t37S.ldd.79i under tho provisions of that act, 438,531,14} were coined under the provisions of the act of Julv ti 1S9J. and t',078 478 under the net pro viding for the coinage of the trade dollar bul lion The total coins to of all metals at our mints during thelasl fiscal year consisted of I &S.48 .38) pieces, valued at *1084318 791.0. of which there was SM 474,914 59 In gold coined. •758 in -.tan 'ard silver dollars. *8,931,14J :«) in substdary silver coin and t7i6.9U3d in minor coin During the calendar year of ISSt the pro duction of preclou- metals m the United j States was estimated at 1.759,33. fine ounces of ! cold of the commercial and coinage value of 1 15.955.09) and ft.)..09,99# fine ounces of silver of the bullion or market value of MdSJO.DO# and of the coinage value of 177,5740904 It if estlqj ated that on the first flay of July 1991, the stock of metallic mono? In the United States, consisting of coin and bullion, amounted to 11.851 ,640.968. of which 10.7,98<.201 waj gold. •0*4.347,758 was silver • Fifty national binks were organized during the year ending October 31. 1891 with a capital of 65,2 0.003 and seventy-nine with a capital of *10.47»,00) wont into voluntary liquidation Twenty one banks with a capit vl of IA770 000 were placed in the hands of receivers. The total number of national banks In existence on the Jist day of October last was 3.75*’, be in' forty less than on the 31st day of October, 189-1 Tho capital stock paid In was 9672,671, 3d\ being ID 67<,4)1 less than at the same time In the previous year and the surplus and un divided profits, less expenses and ta«es paid, amounted to 8341.121.082.10 which was 016,089, 780 less than on October 31, 1891 Tho circulation has increased tl,741.561. The obligations of the banks to each other were increase l 5117.00,3:11. and the individual deposits were 12.7.234.4*9. less than at the' correspondin' date in the previoui years. Loans and discounts were 4161.800.983 more than at the same time tne previous year and chocks and other cash Hems were 19J.3I9.W11 more. The total resources of tho banks at the date mentioned amounted to 63,473 922,0j5 as against 43,109,56.1 88t 30 in 1893. War Department. The message reviews and comments on tho report of the secretary of war. The president does not believe there is any necessity for in creasing the army to 30,03) men. as recom mended by Secretary Lamont Ho advises against the creation of new military posts The secretary's pla i of the adoption of the bataliion ‘ystera is recommended The strike troubles of last summer are briotty referred to and the action of the military commend© 1 In recognition of the Ion; and distinguished military services and faithful discharge of delicate and responsible civil duties by Major General John M. Schofield now the general commanding the army, it i* suggested to con gress that tho temporary revival of the srade of lieutenant general in his behalf would bo a Just and gracious act wjini uunim ui n uxiuti, The roport of iho attorney general notes the gratifying progress made by the supremo court in overcoming iho arroars of its busi ness and In reaching a condition in which it will be able to dlspno of oases as they arise without any unreasonable delay. This result Is of course very largely duo to the successful working of the plan inaugurating circuit courts of appeals. In rospset to these trlbun als the suggestion is made in quarters entitled to the highest consideration that an addi tional circuit judro for oach circuit would greatly strengthen those courts and the contidenco reposed in thplr adjudications and that such an addition would not ere ;to a trenter force of judges than the increasing business of such courts requires. I commend the suggestion to the careful considerate n of the congress. Other important topics are adverted to the roport accompanied b/ recom mendations many of which have been treated at lar:o in previous messages, and at this timo they need only be namod, I refer to the abolition of the fee system as a measure of compensation to federal officers. The en largement of the power4 of United States commissioners In the territories, the allowance of writs of error in criminal cases, on behalf of tho United States and the establishment of degrees in tho crime of murder A topic dealt with by tho attorn ey general of much import ance is tho condition of the administration of justice In the Indian Tearitory. Tho perma nent solution of what is called tho Indian problem is probably pot to be expected at once, but meanwhile such ameliorations of present conditions of the existing system will admit ought not to bo neglected. I am satis fied thero should be a federal court estab lished for the territory with sufficient judges and that this court should sit within the ter ritory and have the same jurisdiction as to territorial afTairs as now vested in tho federal courts sitting In Arkansas and Texas. Eight years ago la my annual menage I urged upon the congress a* strongly as I could the location and construction of two prisons for the confinement of United States prison ers A similar recommendation has beon made from time to tlms since and a few years ago a law was passed providing for the selec tion of sites for three such institutions. No appropriation has, however, been made to carry the act Into effect and the old and dis credltible condition still exists It is not my purpose at this timo to repeat tho considerations which make an impre - nablo case in favor of the ownership and man agement by the government of the penal in institutions In which federal prisoners are confined I simply desire to again urge former recommendations on the subject and to particularly call tho attention of the con gress to that part of the report of the secre tary of war, In which he states that tho mil itary prison at Port Leavenworth. Kansas, can bo turned ovor to to the government as a prison for federal convicts without the leas difficulty and with an actual saving of money from every point of view Pendinr a more complete reform. I hope that by tho adoption of the suggestion of the secretary of war this easy stop may be tiken in the direction of the pronor care of its con victs by the government of the Unite 1 States Postal and Nary Departments. The message next tikes up tho report of the postmaster general and strongly urges the recommendations of that official looking to the correction of the abuses of the' second class mail matter privilege by publishers of advertising matter, who send tons of papers through the m kil and defraud the government out of millions of dollars postage annually. The free carriage of seeds of grain throu h tho malls is also condemned If these abuses were rectified the department would bo self sustaining. The report of the past master general. which has already been published, is reviewed at length Attention is called to tho roport of the sec retary of tho navy which shows very gratify ing pro :res* in tho construction of ships for our new navv. - •--- . mull uu Hi 1UC lur mo construction of additional battle ships and torpedo boats The secretary recommends the manufacture not only of a reserve supply of ordnance and ordnance material fo.- ship* of the navy, but also a supply for the auxil iary fleet Guns and their apurtenanaes should be provided and kept on hand for both those purposes We have not to-day a single gun that could be put upon the ships Paris or New York of the International Navi ration company or anv other ship of our reserve navy. The manufacture of gun* at the Washington navy yard i* pro.’eedin r satis factorily. and none of our new ships will be required to wait for their ^uns or ordnance equipment. Interior Department. The report of the secret iry of the Interior exhibits the s tuition of the numsrous and in teresting branches of the public service con nected with his department I rocommend thi3 report and the valuable recommenda tions of the secretary to the careful attention of congress I fully indorse the recommendation of the secretary that adequate protection be pro vided for our forest reserves and that a com prehensive forestry system be inaugurated. 1 he recommendations of the secretary in regard to dealing with the Indian question is concurred in and ha* already been published. Pensions. The barefaced and extensive pension frauds exposed under the courageous and cenerous veteran soldier now at the head of the bureau leaves no room for the claim that no purgation of our pension roll was needed or that con tinued vigilance and prompt action are not necessary to the same end The accusation that an effort to detect pension fraud* is evi dence of unfriendliness towards our worthy veterans and a denial of their claims to the generosity of the eov ernment, suggests an unfortunate indiffer ence to the comission* of any offense which has for its motive the securing of a pension and indicates a willingness to be blind to the exin^nce of mean and treacherous crimes which play upon demagogic fears and make sport of the patriotic peopie. Agricultural Department. The secretary of agriculture in his report reviews the operations of his department for the last fiscal year and makes recommenda tions for the further extension of its useful ness The recommendations of the senate are concurred 1^ The prohibition of free die* tributlon ot Mad by the department la again urged. The work done by the department of agri culture Is very superficially dealt with In this communication and 1 commend the report of the secretary and the very Important inter ests with which it deals to the careful atten tion of the congress An exceedingly Important recommendation of the secretary relates to the manner in which contests and litigated cases growing out of efforts to obtain government land are determined. The entire testimony upon which these controversies depend in all their stages is taken before the local registers and receivers and yet those officers have no power to subpoena witnesses or to enforce their attendance to testify. These cases, numbering throe or four thousand annually are sent by the ofllcers to the commissioner of the general laud office for his action. The exogoncles of his other duties oblige him to oct upon decisions of the registers and re ceivers without an opportuclty of thorough personal examination Nearly SOJ) of these cases are appealed annually from iho commis sioner to the secretary of the interior Burden ed with other important administrative duties, his determination ot these appeals must bo almost perfunciionary nndgbased upon the ex amination of others. Through this determina tion of the secretary operates as final adjudica tion upen rights of very importance. 1 concur In the opinion that the commissioner of the general land office should bn relieved from this duty of deciding litigated land cusos' that a non-partisan court should be entreated to pass on such cases and that the decisions of this court should be final, at least so far os the decisions of the department arc final. Civil Service Reform. The advantages to tho public service of an adherence to the principles of civil service reform are constantly more apparent and nothing Is so encouraging to thoie in official life who honestly desire yoad government as the lncreusln t appreciation by our people of these advantages A vast majority of the voters ot the land are read/ to insist that the time and the attention of those tliov select to perform fer them Important public duties, should not be distributed liv doling out minor ofl! -es und they are growing to be unanimous In regard ing party or animations ns something thit should boused in e,tablishlng pai ty principles Instoad of dictating the distribution of public places as rewards or partisan uctlvity Numerous ad Iltional offleos and placos have been brought within civil service rules and regulations and some others will probably soon bo included. Tho report of the commis sioners will bo submitted lo the congress and I invite careful attention to the recommen dations it contains National Hoard of ITealth. a X am entirely convinced that wo ontht not to bo longer without n national board of houlth or national health officer charged with no other duties than such as pertain to the protection of our country from the Invasion of pestilence and disease I earnestly recom mend that the inauguration of a national board of houlth or similar national instru mentality believing the same to be a needed precaution a-ainst contagious diseases and in the Intorast of safety and hea t!i of poor strike < o:nrotation. By virtue of a statute of the United States passed in lxst I appointed In July last Hoi. J. I) Keen of the state of New Yorg and Hun. Nicholas E Worthln :t?n of the state of Illinois, to form with Ilin Carroll D. Wright. commissioner of labor, who was des ignated by said statute a commissioner for tho purpose of making careful inquiry Into the causes of the controversies between certain railroads and their employes which had re sulted in an extensive and destructive strike, accompanied by much vlolonce and dangerous disturbance with considerable loss of life and groat destruction of property. The roport of the commissioner* has been sub mitted to me and will be transmitted to con gress with the evidence taken upon their in vesti -atlon Their work has been well done, and their standing and intelligence give as surance that tho report and sug estlons they make aro worthy of careful consideration. Tariff Amendments Creed. The tariff act passed at the list session of congress need s important ntnondmonts if it is executed effectively and with certainty in ad dition to such necessary amendments as will not chante rates of duty. I am -till very de cidedly in favor cf puttia? coal and iron on tho freolist So far as tho su :ar sclie lule is con cerned, I would be glad under the oxlstin r ag gravations to soe every particle of deferential duty in favor of refined sugar strickon out of our tariff law If with all tho f ivor accorded tho sugar rofinin r lnturost in our tariff laws It still languishes to the extent of dosed re fineries and thousands or dl-char.-ei work men It would seem to present a hopeless ceso for reasonable legislative aid Whatever el-e is done or omitted I eirnest'y repeat hero the recommendation 1 have made in another portion or this communication that the additional duty of one tenth of a cent per pound laid upon sugar imported from coun tries paying a bounty on its export be abro gated It seems to mo th vt exceedin ;ly im portant considerations p slut to the propriety of this amendment With the advent of a new tariff policy not only contemplated t> rel.cvo tho consumers of our land In ths cost of their daily life, but to invite a belter development of American thrift and create for us closer and more profitable commercial relations with tho rest of tho world it follows as a logi. cal and imperative necessity that we should at onco remove the ohief if not only obstacle which has so Ion; prevented enr participa tion in the foreign carrying trade or tho sea. A tariff butlt udou the theory that it is well to check imports and that a borne market should bound the industry and effert of American producers, was fitly supplemented by a re fusal to allow American registry vessels built abroad thou;h owned and navigated by our people, thus exhibitin' a willingness to j abandon all contest for tho advantages of I American trails oceanic carria e. Our new : tnria policy bill uoon the theory that it is I well to encourage such Importations as our people need and that our prolurts and manufactures should find market in every part of too habitable globe is consistently supplements l by the . reatest possible liberty to our citizeus in the ownership and naviga tion of ships in which our products and man ufactures may be transported The millions now paid to foreigners for carrying American pas seniors and products across the sea should be turned into American hands Ship building. which has teon protected to strangulation, should bo revived by thi pros pect of profitable employment forships when, built and tho American sailor would bo resur rected and again take his place, a sturdy and : industrious citizen in time of peace and a pat riotic and safe siefender of American interests . in the day of conflict Thu ancient provision of our law denying American re istry to ships bu.lt abrotd and owned by Americans, ap pears, in the light of present conditions, not only to be a failure for s ood at every point but to be nearer u relic of barbarism than any thing that exists under permission of statute of the United States I earnestly recommend its prompt repeal TU® Gold Reserve. During the last month the gold reserves In the treasury for the purpose of redeeming the notes of the government circulating as money in the hands of the people became so reduced and Its further depletion in the near future seemed so certain that in the exorcise of proper care for the public welfare it became necessary to replenish this reserve and thus maintain popular faith in the ability and determination of the government to meet as •greed, its pecuniary obligations It would have been well if in this emer :ency authority had existed to issue the bond* of the govern meet nearing a low rate of interest, and maturing within a special period, but the congress having failed to confer such authority resort was necee< anly had to the resumption act of 1875, and pursuant to its provision bonds were issued drawing interest at the rate of live per cent per annum and maturing ten years after their issuing, that being the shortest timo authorized by the act lam glad to say. however, thar 01 tho sale of these bonds the premium received operated to reduce the rate of interest to be pvd by the government to less than three per cent ^othing could be worse or further removed from sensible finance than tho relation* ex isting between the currency the government hat Issued, the sold hem redemption and the means * must be resorted to for the purpose of **• ishlng such redemption fund when in ** Even If the clatms'upon thU tun? ^pllr* finad tO ft ha Ablloatlnna Aa done if I omitted any effort 1 n, make to avert such a calamity ,\s ;a therefore os no provision Is made loro final redemption or the putting aside of i currency obligation now usol to ropea-ej and constantly draw from the governm-nt i gold and as long es no better author tv bond Issues is allowed thtn at presenter.' such authority will be utilized whonewnt as often as It becomes necessary t > inn s sufficient gold reserve and in abund ,nfiu to save the credit of our country LO..: , good tho financial declaration, ol our ment Questions reluttn to our bunksm currency are cloiely connected wit:, up.]' ject just referred to nnd they also p™ some unsatisfactory features -j ntui ywivotaicil, Prominent amonr them are the lick ticity in our currency circulation and r\ quent concentration in financial centr.?* t it is most needed in other partsof thci-..,:. The absolute divorcement of the gown' from the business of banking is the tionship of the government to the cireUa": of the currency of the country This tion cannot be immediately reached i mi step in that direction and us amemsof in^ a more elastic currency and obvh; other objections to toe present arras; went of bank circulation the simr of tho treasury presents in his r scuemo modifying present bankin: laws providing for the issue of circulating not Mate banks fro.) from taxation unlur oci limitations Tho secret ir; explains his so plainly and its advantages r.re develop him with such remarkable clearness tha efTort on mv part to pr j**e 11 arguments in supports would be surpufious. I shall in fore content myself with an unquitifi-j dor.-*ement of the secretary*’ prop;. changes in the law and a brief and i’n;<■:'* statement, of their prominent features It is proposed to repe il all laws pr v ! fo * the deposit of United States bonds a-i curlty for circulation to permit banks to issue circulating notes not in amount 73 per cent of thoir paid up nu impaired capital provided they depos.t tho government as a guaranto .1 fund ;n ! : States legal tender notes includin' trn notes of l*wO. a sum equal in atnojit per cent of the notes they desire to is-i deposit to bo maintained at all tim whenever any bank retires any part of ; culation a proportional part of its.! antee fund shall be returned to permit the serotarv of the trow to prepare and keep on ha i l ready fori>i in caso an increase in circulation is | blank national bank notes for oaou tuv ing circulation and to repeal the \r of the present haw impo-dng limita’ion.;, :i strictlons upon banks desiring to red i crease their circulation, thus permit in ncrqase or reduction within the iseventy-iive par cent of capital to be made as emer e icy iriso In addition : guarantee fund required it is Dro?»o*el to vide a safety fund f >r tin immediate relei tion of the circulating notes of fail by imposing a small annual tax s:r of one per cent upon the avara 'e ci ofoaohbink until tho find a noun per cent of the total circulation outsuniii When a bank fails its guarantee fuii paid into th.s safety funds and its n < to be redeemed in the first instan.o fro safety inud thus au moated, anr impi of such fund caused thereby to b.* m. from the immediately available c.nh a said bank, and i; the se should be ins r auch impairment to be made co hI : rata assessment among tho other baa tut: contributions con.t.tuiing a tirst ii the as ets of the failed bunk in fav contr buiinj banks. As a further security it is content? that the existing proposition tixinr th: vidual liability of stockholder* is to tained and the bancs indebtedness > count of it* circulatin ; notes is to bo rail first lien on all its assets. For the p.tr.‘ meetinjtho expense of printin; un cials. supervision, cancellation and o'.'y charges, there shall be impose l a tax cl one-half of one per cent per annum u;> average amount of notos in circulation < further provided that there s-i.n« no national bank notes issue i a less denomination tuan tea do. that each nation ii bank, except in cas* failed bank shall reJeem or retire it * s> the first instance at its own o.fl ■ agencies to be desirnatad by it. th »t■■■ reserve used bo maintaihod on account' posit i. ADoiaer very important leaiurc -- is the exemption of .state banks froB j lion by the United St it is in case* shown to the satisf action of the se-re^‘ the treasury and comptroller of th) Cjrf‘ by banks claiming such exomptloa. ta»j have not hid outstanding thur cir^-j notes excoeiin' seventy-five Per their paid up and unimpair-1*■ that their stockholders are in Jiv:iiua=ty' for the redemption of their circuaW* to the full extent of the ownjrsbiP® ( that the liibility of such ban:* their circulating notes CJ* ( under their state law a first «<■ j their assets that such kept and maintained » ,9 fund in United States leril t3n_ r ./o cluJin r treasury uo.es of 1 ^ e’ au t be Klad to co-operate in povfec** • tiou that tends to tae pro»peru? of onr people. t (signed) Grovefi Executive Mansion. Dcccin AMUSING TRIFLE^ "Who is that follow aor* street?” “Celebrated l‘t'r3.’j acter.” “What is his sP-‘c‘ "Long hair.” ^ Sea Captain—There is E° ship is doomed! In “n ^ all be dead! Seasick Thank heaven!