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lational Affairs
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THE PRESIDENT'S MESSAGE.
Thi'CiiierFAocHlivc's Annual Docnmcnt
. lo Congress and the People.
A Statu I'ancrtliatMenervewandSlionld
Ilecelve Public Attention.
Grorer'H .Swjijritiotix and UecontmendnUons.
In Memory of Hendricks.
Washington, Dec. S.To the Con
gress of the United States: Your assem
bling is clouded by a sense of public be
reavement caused by the recent and sud
den death of Thomas A. Hendricks,
vice-president of the United States. His
distingui-hed public services, bis com
plete integrity and devotion to even
d.ity and bis personal virtues will liud fa
vorable record in hi? country's history.
Ample and repeateil prools of the esteem
and confidence in which be was held by
hi- countrymen were manifested by his
election to an office of the most import
ant and h'ghest dignity, and at length,
lull of yean- and honors, he has been laid
at re-t 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 tru-t, also requires the president
to give to congress information of the
state of the union, and recommend to
their consideration such measures as he
.-hall deem necessary and expedient. At
the thro-bold of a compliance with these
con-titutional directions, it is well for us
to near in mind that our usefulness to the
people's interests will be promoted by a
con-taut appreciation of the scope and
character of our re.-pectivu duties as they
relate to federal legislation. While the
executive may recommend such measures
a- he shall deevi 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
con-titutiou will disclose the partitions of
power bet ween our respective departments
and their necessary independence, and
al-o the need for the exercise of all the
power entrusted to each in that spirit of
comity and co-operation which is essen
tia! to the proper fulfillment of the
patriotic obligations which rest upon us
a-faithful servants of the people. The
jealous watchfulness of our constituencies,
great and .-mall. supplements their suf
liage. and by the tribunal thus established
every public servant will be judged.
Our Ponceabfo Foreign. Relations.
It is gratifying to announce that the re
lations 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 nations, and a consistent and
amicable attitu le toward the strong and
weak alike, furnih proof of a political
di-po-itiou which renders professions of
good will unnecessary. There are no
que.-tion- of difficulty pending with an'
loreign government.
The Argentine government has revived
the long dormant question of the Talk
land I.-land by claiming from the United
States indemnity for their loss attributed
to the action of the commander of the
.-loop of war -'Lexington'" in breaking
up a piratical colony on those islands in
S:tl, and their subsquent occupation by
("rent l'ritain. In view of the ample
justification for the act of the Lexing
ton" and the derelict condition of the
i-land before and after the alleged oc
cupation by Argentine colonists, this
government considers the claim as whol
ly groundle-s.
A question has arisen with the govern
ment ot Austria-Hungary touching the
repie.-entatiou of the United States at
Vienna. Having under my constitutional
prerogative appointed an estimable citi
zen t unimpeached probity and compe
tence a.- minister at that comt, the gov
ernment ot Austria-Hungary invited this
government to cognizance of certain exception-
based upon allegations against
the personal acceptability of Mr. Keilev,
the appointed envoy, asking that, "in
view thereof, the appointment should be
withdrawn. The reasons advanced were '
such a could not be acquiesced in with
out violation of my oath of otficv and the
precepts of the constitution, since thev
neces-arily involved a limitation in favo'r
of a foreign government upon the right
of selection by the executive, and re
quired such an application of a religious
te-t as a qualification for office under the
United States as would have resulted in
the practical disfranchisement of a large
cla-s of our citizens and the abandon
ment of a vital p inciple of our govern
ment. The Au-tro-Hungarian govern
ment finally decided not to receive Mr.
Keilev as the envoy of the United States,
and that gentleman has since resigned
hi- commission, leaving the post vacant.
1 have made no new nomination, and
ibe interests of this government at
Vienna are now in the care of the secre
tary of legation as Charge d" Affaires ad
int'iim.
Early in March 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
t'ue United Sutes forbore to interfere
actively, but lent the aid of their friendly
offices m deprecation of war and to pro
mote peace and concord among the bellig
erents, and by su h counsel contributed
importantly to the restoration of tranquil
ity iti that locality.
I'meigeneies growing out of the civil
war in the United States of Colombia,
demanded of this government at the be
ginning of.this administration the employ
ment of an armed torce to fulfill its guar
antee under the thirty-rifth article ot the
treaty of 1SI0. In "order to keep the
transit open across the Isthmus of Pana
ma div-.rous of exercising only the pow
ers expressly reserved to us bv'the treaty,
am- -a-i-iiUulof the rights of Colombia,
the forces sent to the isthmus were in
structed to confine their action to "posi
tively and etlicieutly preventing the
trausit 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 sovereignity of Colombia.
The oowerful and successful fulfillment
of its duty by this government was highly
appreciated by the government of Col
ombia, and has been followed bv ex
pressions of its satisfaction, and of high
praise of the oflicers and men engaged in
this service. The restoration of peace
on tbe 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
men in the Kinds of in-urgeiits. aud de
vouring vo.-s.Is held by the revolutionists
MBpo-Mibilitj. I ttoMf h kU
I!
to be partial and liable to capture bv 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
tbe hostile partisans, could not be recog
nizee jNeitner cou iu tne vessels of In-
surgents against the legitimate sovereign
tv be deemed hostus hutnani generis with
in the precepts of international law,
whatever might be the defination and i
penalty of their acts under the munlci-
pal laws of tbe state against whose au-
thority they were in revolt- The denial
by this government of the Colombian
propositions did not. however, imply the
admission of a belligerent status on tbe
part of the iusurgeuts. The Colombian
government has expressed its willingness
to attend negotiation conventions for tbe
adjustment by arbitration of claims by '
foreign citizens arising out of the de
struction of the city ot Aspinwall by the
insurrectional 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, 1 withdrew the treat for
re-examination. Attentive consideration
of its provisions leads me to withhold it
from re-submission to the senate. .Main
taining, as I do. position in a line of
presidents from Washington's day, who
have prescribed enlarging and entangling
alliances with foreign states, I do not
favor a policy of acquisition of new and
distant territory, or the incorporation of
remote interests with our own. 'ibe
laws of progress are vital and organic,
and we must be conscious of that irresis
tiole tide of commercial expansion which
as the concomitant of our civilization day
by day is being urged onward by those
increasing facilities ot production, trans
portation aud 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 to the
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 1 am unable to
recommend propositions involving
paramount privileges of ownership or
right outside of our own territory, when
coupled with absolute and unlimited co
(Mtriniintirctit flf.ftf.rifl tin terrif rkf-f.il inte.r.
irly of the state where such interests lie.
While the general project of connecting
the two oceans by means of a canal is to
be encouraged. 1 am of the opinion that
any scheme to that end to be considered
with favor should be free lrom th fea
tures alluded to. The Tehuantepec
route is declared by engineers of the
highest repute and by competent scient
ists to afford an entirely practical transit
for vessels and 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, and particularly be
tween the valley of the Mississippi and
South America, are deserving of con
sideration. Whatever highway may
be constructed across the har
rier dividing the two greatest ma
ri tins areas of the world, must be for
the world's benefit, a trust for maukiud,
to be removed from the chance of domi
nation by any single pow'r. It must not
become a point ol irritation of hostilities
or a prize for warlike ambition. Au 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 the foreign states whose responsi
bilities and rights we would share, is. in
my judgment, inconsistent with such
dedication to universal and neutral use.
and would, moreover, entail measures
for its realization beyond the scope of
our national policy or present means.
The lapse of years h.is abundantly con
firmed the wisdom and foresight ot those
earlier administrations which, long
before the conditions of mari
time intercourse were changed
aud enlarged by the progress of the age,
proclaimed the vital need of inter-oceanic
trallic 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 realiza
tion the efforts of my 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 1$.S, announced
that "What the Uuited States want in
Central America next to the happiness of
its people is the security aud neutrality
of the inter-oceauic routes which lead
through it." The construction ot three
trans-continental lines of railway, all in
successful operation, wholly within our
territory, and uniting the Atlantic aud
Pacific oceans, has been accompanied
by results of a most interes ing and im
pressive nature, aud 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 aud traffic, or. in other contingen
cies, for uses inimical to both. Trans
portation is a factor in the cost of com
modities scarcely seeoud to that of their
production and weighs as heavily upon the
consumer. Our existence already has
proven the great importance of having
the competition between land-carriage
aud water-carriage fully developed, each
acting as a protection to the public
against the tendencies of monoply. which
is inherent in the consolidation of wealth
and power in the bauds of vast corpora
tions. These suggestions may serve
to emphasize what I have
already said on the score of the necessity
of a neutralization of any iuter-oceauic
transit aud 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 Meuscal will be com
municated for your information.
Foreign Affairs Resumed.
The claims of citizens of tbe United
States for losses by reason of the late
military operations of Chili in Peru and
in Bolivia are the suoject of negotiation
for a claims convention with Chili, pro
viding for their submission to arbitra
tion. The harmony of our relations with
China is fully sustained in the applica
tion of the acts lately passed to execute
the treaty of 1SS0. restrictive of the im
migration of Chinese laborers into the
United States. Individual cases of hard
ship have 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- j
I
amy atre.
I tK"2roifolk Journal
here of unoffending Chinamen Indisputa
bly within the protection of tbe treaties
and the law were murdered by a mob,
and the still more receit threatened out
break of tbe same character in Washing
ton territory, are still fresh in the minds
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
inese men, anu tne lnuexiuie 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
their investigation of the outrages, and
It is but just to say that they are trace-
aole to tne lawlessness of men not citi
zens of the United States, engaged in
competition with Chinese laborers. Itaee
prejudice is the chief factor in originating
tbc-e disturbances, and it exists In a
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 preyeut
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 stroug evidence of the righte
ousness of the policy. In 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 me isures within the treaty
limits which the wisdom of congress may
devise.
.
Congo and Other Lands
The
independent state of the Congo
. . . ,
has been organized as a government un-
der the sovereignty of his majesty, the
king of the Belgians, who assumes its!
chief magistracy in his personal charac
ter only, without making the new state a
dependency on Belgium. It is fortunate
that a benighted region, owing all it has
of quickening civilization to the 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 flag 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 tueir part 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 govern inert to share in any dis
posil by an international congress of jur
isdictional questious in remote foreign
territories. The results of the confer
ence were embodied in a foimal 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 United 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 tho United States appear
without reserve or qualification as signa
tory to a joint international engagement,
imposing, upon the signers the conserva
tion of the territorial integrity of distant
regions, where we have no established
interests or control. Tnis 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 lo share in the obligation of
enforcing neutrality m the remote valley
of the Congo is an alliance whose respon
sibilities we are not in a position to as
sume. I abstain from asking tiic 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 Aftjcan 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 tlie com
mercial relations of tne United States
tnerevvth has submitted reports which
will he laid before you. No opportunity
has beeu unlimited to testify the friendli
ness of this government toward Corea.
whose entrance into tne family of treaty
powers the United States were the first
to recognize. I regard with favor the
application made bytbe Corean govern
ment to be allowed to employ American
ollicers as military instructors, to which I
tbe assent of congress becomes necessary,
and I am happy to say this reque.-t has
the concurrent sanction of China and
Japan.
The arrest and imprisonment of Julio
K. Santos, a citizen of the United States,
by the authorities of Ecuador, gave rise
to a contention with that government in
which his light 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 and
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 amnestv
and pardoned by the Equadorian execu- ;
tivc and released, leaving tlie questiou
of his American citizen-hip denied by .
the Equadorian government, but insisted
upou by our own.
The amount adjudged by the late
French aud American Claims commis
sion to be due from the United States to
French claimants on account of injuries
suffered by them during the war of seces
sion having beeu appropriated by the last
congress, has been duly paid the French
government.
The act of February 2.", 1SS3. provided
for a preliminary search of the records of
the French prize court for evidence bear
ing on the claims of American citizens
agaiust France for spoliations committed
prior to 1S01. The duty has beeu per -
iormcu. anu tue report oi tue agent win
be laid before you.
I regret to "say that the restrictions
upou the importation of our pork into
France, notwithstanding the abundant
demonstration of the absence of sanitary
danger iu its use. are continued, but I
entertain strong hooes that, with abetter
understanding of the matter, this vexa
tious prohibition vviil be removed. It
would be pleasiug to be able to say as
much with respect to German. Austria
and other countries where such food
products are absolutely excluded without
present prospect of reasonable change.
The ititerpretatioa of our existiug
treaties of naturalization by Germany
.-.. w
during the past vear has attracted atten-
tion by reason of an apparent tendency
on me partoi me imperial government to
extend the scope of the residential re
strictions to which returning naturalized
citizens of Germau origin are asserted to
be liable under the 1 iws of the empbe.
The temporate and just altitude taken by
this government with regard to this cl.i-
of questions wiilduuhtie-? J-.id to
i .iUs-
factor understanding.
TTi
M-2
The dispute of Germany and Spain,
relating to the domination 6f the Caioline
islands, has attracted the attention of this
government by reason of extensive
interests of America u citizeus hav
ing grown up in those parts during
the last thirty-niue years, and because
the question of ownership involves juris-
diction of matters affecting the status of
our own citizens under civil and 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-
teution will unfavorably aftect 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 tbe
United States and Great liritaiu has been
maintained during the past year. The
! termination of the lishino- clauses of the
. -- - -
j treaty of Washington in pursuance of the
joint resolution of March 3, lSS", must
have resulted in the abrupt cessa'ion on
the 1st of July of this year, in
the midst of their ventures, of the
operations of citizeus of the United
i States engaged in fishing in British-American
waters, but for a di
plomatic understanding reached with
Her Majesty's govennent in June last,
whereby assurance was obtained that no
interruption of those operations should
take place during the current season.
In tbe interest of the good neighborhood
of the commercial intercourse of adjacent
communities, the questiou of the- North
American fisheries is one of much im
portance. Following out the intimation
given by me when the cxtensiary arrange
ment above described was negotiated, 1
recommended that the congress provide
for the appointment of a eolimiis-ion in
which the governments of the United
! States and Great liritaiu shall be respec
tively represented, charged with the con
sideration and settlement upon a just,
equitable and honorable basis, of the en-
I tire question of the fishing rights of the
,,,. Voven.menrs ..ri iheir re-oeetive.
two governments aud their respective
citizens on the coast of the United States
and British North America. Fishing in
terests being intimately related to the
general qne.-iions dependent upon con
tiguity and intercourse, consideration
thereof in all their equities might also
properly come within the purview of such
commission, and the fullest latitude of
expres-ion on both sides should be per
muted. The correspondence in relation
to the fishing rights will ha submitted.
The Arctic exploi ing 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 liritaiu in
pursuance of the authority conferred by
the act of March 3, 1SS.".
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 1S1J, one of the earliest com
pacts in this regard entered into by us,
stipulated for surrender in re-pect of
a limited number of offences.
Other crimes no less inimical
to the social welfare should he embraced,
and the procedure of extradition brought
in harmony with present international
practices. Negotiations with Her
.Majesty's government fc;r an enlarged
treaty of extradition have been pending
since 1870. and I entertaiu strong hopes
that a satisfactory result may be soon at
tained. Tne frontier line between Alaska and
Britisli Columbia, as defined by the treaty
of ces-ion with linssia, follows the de
markatiou assigned in a prior treaty be
tween Great Britain and J'u-.-ia. Modem
exploration -discloses that this ancient
boundary is impracticable as a geograph
ical fact, in the unsettled condition of
that region, the question has lacked im
portance, but the discovery of mineral
wealth in tbe territory which the line is
suppo.-ed to traverse admonishes u- that
the time has come when an accurate
knowledge of the boundary is needful
to avert jurisdictional complications.
I recommend, therefore, that provision
be made for a preliminary reconnoisance
by ollicers of the United .Mates, to the
end of acquiring more precise informa
tion on the subject. I have invited Her
Majesty's government lo 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
Ilayti having been quelled, the govern
ment of that republic has made prompt
provi-ion for adjudicating the los-os suf
fered by foreigners because of hostilities
there, and the claims of certain citizens
of th" United States will be in this man
ner determined.
The long pending claims of the two
citizens of the United States. IVlIetier
and La .a re, have beeu di-posed of by
arbitration and an awaid. uifivorof
each claimant, has linen made, which by
the terms of the engagement is final. It
remains for emigres-, to provide for the
pavment of the stipulated moiety of the
i expenses
A question arose with Ilayti during the
past year by rea-on of tlie exceptional
treatment of an American citizen, Mr. Van
bokkefen. a resident of Port Au Priuc,
who. on suit by creditors residing in the
United States.'wa.- sentenced to impris
onment, and under tlie operation of llay
tian statute was denied relief secured to
a native Haytiau. This government as
serted lii- treaty right to equal treatment
with natives ot Ilayti iu all suits at law.
Our contention was denied by the Hay
tiau government which, however, whi'e
still professing to maintain the ground
taken against Mr. Vanbokkelen's light,
termiiired the cuitrover.-y
bv setting
him : t ubertv without explanation
An Miteruntiomdeoiilcrcuce to consider
the el. j.iis of arresting the spiead of
chol- j:. and other epidemic di-ea-es was
held at Home in May last, and adjourned
to meet ag tin on farther uotice. Au ex
pert delegate on behalf of the United
States has attended and will submit re
port. Our relations with Mexico continue to
be mo-t cordial as befits ttiose of neigh
bors between whom the strongest ties" of
' friendship and eonimerctal intimacy exist,
j as the natural and growing consequence
of our similarity of institutions and
j geographical propinquity. The reloca
' tion of the boundary line between the
United States and Mexico eastward of
, the Kio Grande under ttie convention of
July -JO, 1S2, has been unavoidably de
layed, but I apprehend no difficulty
in
i securing a prolongation of the period of
' us accompiisuuieui. .me ia.cn
con-
i...- .
cluded commercial treaty with Mexioo
still await? me stipulated legislation to
carry its provisions into effect, for which
one year's additional time has been se
cured by a supplementary article signed
iu February last and since ratified on
both sides. As ibis convention, so im
portant to the commercial welfare of the
two adjoiuiug countries, has oeeu con
stitutionally confirmed by the treaty
making branch. I express the hope that
legislation to make it effective may not
be long delayed. The large influx of
capital aud enterprise to Mexico from the
Uuited States continues to aid iu the de
velopment of the resources and iu aug
menting the material well-being of our
sister republic: lines of railway, pene
trating to the neart 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. and furnish re-
venues to other isolated
communities,
the suggested
I I have abeadv adverted to
I
const ruction of a ship railway acioss the i
I
.IfMWM r,
J. Baimtjm-w. I Yir eomiporrriMt rtUUtUf ia this 1
narrow formation of the territory ol
Mexico at Tehetiimepeo. With the
gradual recovery of Peru from the effects
of her late disastrous conflict with Chili,
end with the restoration of civil author
ity in that distracted country, it is hoped
that pending war claims of our citizens
will be adjusted,
t In conformity with notification given
by the government of Peru, the existing
treaties of commerce aud extradition be
tween us and that country will terminate
March 31, lSMi.
Our good relation-hip with Russia con
tinues. . An ofitear of the navy detailed
for the purpose is now on his way to
Siberia, bearing tbe testimonials voted
by congress to those who generously
succored the survivors of the uuforuiuate
Jcannette ' expedition.
It is gratifying to advert to the cor
diality of our intercourse with Spain.
The long pending claim of the owners of
the .-hip Masonic" for loss suffered
through the admitted dereliction of the
Spanish authorities in the Phlllippine
Islands, has been adjusted by arbitration
and an indemnity awarded. Tne princi
ples of arbitration in such cases to which
the United States has long and consist
ently adhered, thus receive a fresh and
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 coniinerci.il agree
ment with Spain of January 2d and Feb
ruary 13. lSl, lias been found inade
quate to the commercial need of the
United States and the Spanish
Antilles, and the terms of the agree
ment are subjected to conflict
ing interpretations in those Islands.
Negotiations have been instituted at
Madrid for a fuli treaty not open to the
objections, and in the line of the general
policy touching the neighborly inter
course of proximate communities, to
which 1 elsewhere advert, aud aiming,
moreover, at tne removal ot existing
burdens and annoying restrictions; and
although a satisfactory termination is
although a satisfactory termination is
promised I am compelled to delay its an
nouncement. An international conference was held
at Bern in September, on the invitation
of the Swiss gov eminent. The envoy of
the United 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 important subject of
international copyright has been before
yon for several years. Action is certainly
"desirable to effect the object iu view,
ami while there may be a question as to
the relative advantage of treating it by
legi-Iation or by specific treaty, tue ma
tured views of the Berne conference can
not fail to aid your consideration of the
subject.
Tlie termination of the commercial
treaty of 1M52 between the United States
and Turkey has been .-ought by that gov
ernment. While there is a question as to
the sullicieney of the notice of the ter
mination given, yet as the commercial
rights of our citizens in Turkey come un
der the favored national guarantees ol
the prior treaty of 1S30, and as equal
treatment is admitted by the porte, no
inconvenience can result from the assent
of this government lo the revisions of the
Ottoman tariffs, on which the treaty
poweis have been invited to join.
(Questions concerning our citizens in Tur
key may be affected by the porte's non
aeijuicscence in the right of expatriation,
aud by the iinpo-itiou of religious tests
as a condition of residence, in which
this government cannot concur. The
United States mu-t hold in their inter
course with every power that the status
of their citizens U io be re-peetcd, and
equal civil piiviicges accorded to them
without regird to creed, and affected by
no consideration- save tiio.-e growing out
of doinieilian return to the land of origi
nal allegiance, or of unfulfilled personal
obligations which may survive under mu
nicipal laws after such voluntary return.
The negotiation with Venezuela rela
tive to ttie rehearing of the awards of
the mixed commission constituted under
the treaty of ISOi". was resumed, in view
of tue recent aequie-ceuee of the Vene
zuelan envoy in the principal point ad
vanced by this govern nent, that the ef
fects of the old treaty c mid only be set
a-ide by the operation of a new conven
tion, "a re-ult siib-tantially in accord
with the advi-ory suggestions contained
in the joint resolution of March 3, 1&3,
has bi-en agreed upon, and will shortly
be t-ubmttled to tbe senate for ratifica
tion. Under section 3ti."9 of the revised statute-,
all funds held in trust by the
United State.-, and the annual interest
accruing thereon, when not otherwise
required bv- treaty, are to be invested in
stock- of the United States bearing a
rate of intere-t not le.-s than " percent
per aiiMitn. There being now no pro
curable stock-, fiayiug so high a rate of
intere-:. tin letter of the statute is at
pre-ent inapplicable, but its spirit is sub
served by continuing to make investment-
of tbi-. nature in current stocks
b-aring tbe highest interest now paid.
i The -latute, however, makes no provl-
sion for the di-po-al of such accretions
It I): ing contrary to the general rule of
tills government to allow interest on
claim-, I recommend the repeal of the
provi-ion m que-tion, and the disposi
tion, under a uniform rule, cf the present
accumulations, from investment of trust
funds.
The inadequacy of existing legislation
touching citizenship and naturalization
demanr your consideration. While
recoj ; Miig the right of expatriation, no
Ptatu .
meat
Am I
nor for
, provision exists providing
for renouncing citizenship by au
.n, native-born or naturalized,
terminating and vacating im
icquisition of citizenship. Even
proved
i fraudulent decree of naturalization can-
no. now be camlied. The privilege and
franchise of American citizenship should
be granted with care, and extended to
tho-e only who intend in good faith to
a-siime 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
them-elves tlio-e of their new status, or
who may require the rights of American
citizen-hip for no other than a hostile
purpose toward their original
government. These evils have
had many llagraut 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 uow in
vested with that power. The rights
which spring from domicile in the United
States, especially when coupled with a
declaration of intention to become a cit
izen, are worthy of definition by statute.
The stranger coming hither with intent
to remain, cstabli-hing bis residence
in our midst, contributing to the gen
eral welfare, and by bis voluntary act
declaring his purpo-e to assume the re
sponsibility of citizenship thereby gains
an inchoate status which legislation may
properly define. The laws of certain
states and territories admit a domiciled
alien to the local franchise, conferring
on him the rights of citizenship to a de
gree which places him in the anomalous
position of being a citizen of a st2te and
yet not of the United States within the
purvisions of federal and international
laws. It is important, within the scope
of national legislation, to define this
right of alien domicile as distinguished
from federal naturalization.
The commercial relations of the United
States with their immediate neighbors
and wiiu important areas ot rranie near
our shores suggest especially liberal in-
mm iiim tm
V- IMH.
I
tercourse between them and us. Fol
lowing the treaty of 1SS3 with Mexico,
which rested on the basis of reciprocal
exemption from customs duties, other
similar treaties were initiated by my pre
decessors. Kecoguiziug the need of less
obstructed trallic with Cuba and Porto
Rico, and met by the desire of Spain to
succor languishing interest in the an
tilles. steps wen- 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 Iudian and South American
independencies, out without result.
On taking oltiee I wi hdrcw for re
execution the treaties signed with Spain
and Santo Domingo then pending before
the Senate. The result has been to sat
isfy me of the inexpediency of entering
into engagements of this "character not
covering tbe entire trallic. These treaties
contemplated the surrender by tbe United
States of large revenues for inadequate
cousider.it ions. Upon sugar alone du
ties were surrendered to an amount far
exceeding all the advantages offered in
exchange. Even were it intended to re
lieve our consumers, it was evident that
so long as tbe exemption but partially
covered our importation, such relief
would be illusory. To relinquish a reve
nue so essential seemed highly improvi
dent at a time when new and large drains
upon the treasury were contemplated.
.Moreover, embarrassing questions would
have arisen under the favored nation
clauses of treaties with other nations.
As a further objection it is evident that
tariff regulation by treaty diminishes
that independent control over its own
revenues which is essential for the safety
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
exist to hamper the action of the govern
ment. By the fourteenth section of the ship
ping act approved June "(. lSi. certain
reductions and contingent exemptions
from tonnage-dues were made as to ves
sels entering ports of the United States
from any foreign port in North and Cen
tral America, ttie West India Islands,
the Bahamas and Bermudas, Mexico and
the isthmus, as far as Aspinwall and
Panama. The governments of Belgium,
Denmark, Germany, Portugal Sweden
and Norway have "asserted, under the
favored-nation clause in their treaties with
the United States, a claim to iike treat
ment in respeel to vessels coming to the
Uuited States from their home
pirts. This government, however, holds
iat the privileges grantjd by
the act are purely geographical,
applying to any vessel of any
foreign power that may choose to engage
in traffic between this country and any
port within the defined zoue. and that no
warrant exists under the favored-nation
clause, for the extension of the privileges
iu question lo vessels sailing to this couu
trvfioiu ports outside the limitation of
the act. Undoubtedly the relations of
commerce with our near neighbors,
whose territories form so long a irontier
line dillicnft to be guarded, aud who find
in our country, "and equally offer to
us natural markets, demand special and
considerate treatment. It rests with con
gress to consider what legislative action
may increase the facilities of intercourse
which contiguity makes natural and desirable.
More Monev for Diplomacy.
I earnestly urge that congress recast tho
appropriations for tlie maintenance of
the diplomatic and consular service on a
footing commensurate: wit 1 the Import
portance of our national interests. At
every post where a representative is ne
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 ollicers abroad are now per
mitted to treat a? personal perquisites
should be done away with.
Every act requiring the certification and
seal of the ollicer would be taxable at
schedule rates, and the fee therefor re
turned to the treasury. By restoring
these revenues to the public use, the
consular service would be self-supporting,
even with a liberal increase of the
present low salaries. The further pre
vention of abu.-es, a system of consular
inspection should be instituted. The ap
pointment of a limited number of secre
taries of legation at large, to be a.-signed
to duty wherever necessary, and iu 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 legations. Some for
eign governments do not recognize the
union of consular with diplomatic func
tions. Italy and 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 he 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 iu Orient:. coun
tries should replace the present system,
which labors under the disadvantage of
lumbering judicial and executive functions
in the same office. In several Oriental
countries generous offers have been made
of premises for housing the legations of
the United States. A grant of land for
that purpose was made some years since
by Japan . ami has been referred to in
the annual messages of my predecessors.
The Siamese government has made a
gift to the United States of commodious
quarters in Bangkok. In Corea the late
minister was permitted to purchase a
building from the government for lega
tion ust.. In China tbe premises rented
for the legation are favored as to local
charges. At Tangier the house occupied
by our representative has been for many
years the property of this government,
having been given for that purpose in
1S22 by the sultan of Morocco; I approve
the suggestion heretofore made that, in
view of the conditions of life and admin
istration in the Eastern countries, the
legation buildings in China, Japan,
Corea, Siam and perhaps Persia, should
be owned and furnished by the govern
ment, with a view to permanency and
security. To this end I recommend that
authority be given to accept the gift3 ad
verted to in Japan and Siam, and to pur
chase in the other countries named with
provisions for furniture and repaira. A
considerable 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
tracted a large number of foreign exhib
its, and proved of great value in spread
ing amoag the concourse of visitors from
Mexico and Central and South America a
wide knoweldge of the various manufact
ures and productions of the country, and
their availabiliiy in exchange for the
production of those regions.
Are Eat Longa.
Past congresses have had under con
sideration the advisability of abolishing
tbe discrimination made by tbe tariff
laws in favor of the work3 of American
artists. The odium of the policy which
subjects to a high rate of duty the paint
ings of foreign artists and exempts the
productions of American artists residing
abroad, and who receive gratuitously ad-
' u A. HKMftlCII,
Piatt Ctator, P. O.
R. H.
Mll J. Q.
va in ages and instruction, is visited upon
our citizens engaged in art culture in
Europe, aud has caused them, with
practical uuauimity, to favor the aboli
tion of .-uch an ungracious distinction,
and iu their interest and for other obvious
reasons I strongly recommend it.
The Public Treasury.
The report of the secretary of
the treasury fully exhibits the con
dition of the public finances ami
of the several tranches of government
connected with his department. The
suggest'ons of the secretary relating to
the practical operations of this importaut
department, and his reconiineiulatioifcs
regarding simplification aud economy,
particularly in the work of collecting cus
toms duties, are especially urged upou
the attcutio i of congress.
The ordinary receipts from all sources'
for the li-cal vear ended June 30, ISSTi,
were S3--,g.U0.70l,.3S. Of this sum
61S1.I71.13!) 31 was received from cus
toms amid SI12.4!N.7g"."l from internal
revenue. Tue total receipts as given
above weree S2.S2:).ll; .M 1 ss than
those for the year ending June 30. 1N1.
Tiiis diminution embraced a falling off of
S13..V.ir..i.ili.-l! in tlie receipts from cus
toms and S!.tJS7.3ll'.!7 iu the receipts
from internal revenue.
The total ordinary expenditures of tin
government for tlie li-cal year were
-2(0.2( i'3.."i0. leaving a surplus in the
irea-urv at the close of the vear of 803,-HJCt.771.-27.
This is $10,J)-Il).S54.3-2 less
than the surplus reported at the close of
the previous year. The expenditures are
cla-sified as follows:
rhllop?iw-
Foreign intercour-o ..
lnlLnw
IVns'ono
3Iilit:irr (liver ami
....25,sa;,mi.ii
.1. IW.MM.lt
.... G,.rwv..'.u.tr.
.... .v,u.,!:r.7.4D
ami .
4-.I5TO.STS.47
.... Jrt.Wl.UTU.R
.... 5t.:isi;.U; 17
a.i'.w.iso .c
M.TiS.lOl.l
harbor
:ir-cnnN)
tl !
Inti-rot on u'licitofit..
District of Columi.l.i. .
MbrcllancoiH
The
imouut paid on the public debt
during the fiscal vear ended June 30,
l.NiC., was $ir,!W3,23.-.13, and there has
been paid -'nice that date and up to Nov.
1. lSS.i, the sum of 30l).8'2S, leaving tlie
amount of the debt at the la.-t named
date -SI ,."! I.I7.".SG0.-17. There was,
however, at that time in the treasury ap
plicable to tbe general purposes of the
government the sum of .SU(.il?.21"2.3j.
The total receipts for the current fiscal
year ending June 30, 1SM. ascertained
to Oct. 1, 1SS.", and estimated for the re
mainder of tlie year, are $nl."i. 000, 000.
The expenditures ascertained and esti
mated for the same time arc $-2 1"), 000,
000, leaving a surplus at close of the vear
estimated at 70.000,000. The value of
exports from the Uuited States io foreign
countries during the last fiscal year was
as follows:
Point-tie nicrvlianillsc JTiB.Ksi.'-UtJ 00
Foreign iiicreliamlise l.VVu-.-Ki eo
i ...lil M.Tjs.rtfcJ in
SjllWr.... -.........-... a.t. ..f .Ihf.) (Hk
Total sm,7".,."s0 (W
Some of the principal exports with their
values and the percentage they respec
tively bear to the total exportation arc
given as follows:
7ltnci.Ks j Value. ; fri-'t
Cotton ami coUoii umnutac-'
lures .la.T'.r.l.ftl'.t
-ttaniifnriiire.-.' l.re:i.l.-tnt'...
i'roU-loii- !
UlN. mineral, vegetable, ami)
Tobacco anil lis manufactures!
Woo.! anil its igsiiittftlrture ..(
U' ."."O.p-.'O,
'--.iiT
II.T7
7.H
::.u
iiT,:rr.,,i..r.
i
ri .t-iijo.!
ji.7iu,:5o..
Our imports during the year were as
follows:
Merrlrimli-c 5"?.t,.V-0.fwkt sii
(olii ";,i ii ..-'.; i
sii er...... ........... jit.r o.ot.4 oo
loi.if.... ...................... iiAS . ..rt . li
The following are given as prominent
articles of imports during the year, with
their values and with the percentage they
bear to the importation:
Airrici.-.s. VnluuT, tlVrc't
J-wrar and ir.i.las.'-c.s 17S,7SS.7:;
" 'Mitt ((,(. l't "''
Wool an i It manufactures... . Il.t".i;,4s2
-ilk anil its m.inufactures I0,:m;,Wi2
Chemicals, ihcin-s iiiul mcili
eines ........ ... ..... rt..n70.stf-
Iron anl steel ami their m'C.. :tl..rit;t,i;-:i
F a Iieiiip jiileat.il thclrm'! :fc:,s-.,s"ii
('niton anil its manufacture. . 'Js.l.VJ.WlI
ltiitcsuniIsMnsothertli.in fur- I
;-Mns 20,.x;,li:;
l.J.'Jl
two
...
O.VJ
fi.07
5.US
r.ut
4..-.S
s.w:
Of the entire amount of duties col
lected, 70 per cent was collected from the
following articles of import: Sugar and
molasses 20, wool and its manufactures
.-, silk and its manufactures S, iron and
steel and their manufactures 7, cotton
manufactures C, llax, hemp aud jute and
their manufactures si.
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
li "S 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
ture, and di-tributed according to jus:
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 and ftiirne.-,
dictate that in any modification of our
pre.-ent laws relating to revenue, the i:i-du-tries
and interests which have been
encouraged by such laws, and in which
our citizens have large investments. should
not be ruthlessly injured or de-f roved.
"We should also deal with the subject in
such manner as to protect the intere-ts of
American labor, which is the capital of
our workingmen. Its 'lability and proper
remuneration furnish the most ju-tiliable
pretext for a protective policy. Within
these limitations, a certain reduction
should be made in our customs revenues.
The amount of such reduction having
beeu 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 citi.ens'r
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 living in even
family of the laud, and release to the
pu-Jic in every humble home a larger
measure of the rewards of frugal indus
try. National Banks and Silver Currency.
During the year ended Nov. 1, 1SS7,
one hundred and forty-five national banks
were organized, with au aggregate cap
ital of 810,938.000 and circulating notes
have been issued to them amounting to
81, '271. 010. 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 permi them to issue
upon a deposit of bonds for their re
demption, indicates that the volume of
our circulating medium may be largely
increased through this instrumentality.
Nothing more important than tb
present condition of our currency and
coinage can claim your attention. "Since
February, ls7ti, the government has,
Bkkrv, President,
Koctsox, Secretary.
10-tf
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