r THE OMAHA DAILY BEE EI.BVIilNTlI YJEAR. OMAHA , WEDNESDAY MORNING , DECEMBER 7. 1881 , NO. 143 CHESTER'S ' CHARGE. i\ "fo thB Wisdom of the Country in The Relations the United States Sustains T iwards Foreign Qovernmonts. The Splendid Financial Exhibit Made by tha Treasury Department , Rooimmended of the Law Rygu atiup1 the Coin age of Silyer Money. Ho Also Reoornmeds the Abolition lition of Certain Internal Revenue Taxation. And AdTiaes I o crease of the Army to a Maximum of Thirty Thousand. Attention Paid to the Necessi ty for Increased and Effec tive Naval Pow.r. Exhaustive Review of the In dian Problem and a Reme dy Suggested. A Measure Proposed Whereby the Mormon Iniquity May ba Run to Birth. The Problem of Civil Service Reform the Subject of Lengthy The Electoral Vote and Presiden tial "incapacity. " INTRODUCTORY. CONCJKTUIAT1ON. . WASHINGTON , December 7. To the senate nnd huuao of representatives of the United States : AnappilliiiR calamity hna befallen the American people since their chosen representatives last mot in the halls where you are now assembled. Wo might also recall with un altered content the continued prosperity with which throuchnut the year the nation haa boon blessed. Its barvesta have been plenteous ; ita va rioua industries have thriven ; the health of ita people haa beea . preserved ; it has main tained with foreign governments the undisturbed relations of amity and peace. For these manifestations of Hia favor we owe to Him who holds our destiny in Hm hands the tribute of our grateful devotiotm. DEPARTMENT OF STATE. THE KOlirUNE BIY AWAUI ) , Save for thu correspondence to which I shall hereafter refer to in re lation to thu proposed canal across the Isthmus of P.uiam i , little has occuricd worth mention in the diplomatic , rela tions of the countries. Eutly in the year the Fortune Bay claims were eat lafactorily Bottled by the British yov - ernmunt paying in tlieaumof 15,000 , most of which has already be'on distri buted. Aa the terms of the settle ment , including compensation for in juries Buffered by our hsheimen at Aspen O.vy , there has boon letuinud from the uross award a mini which is deemed adequate for those claims. THK AUhTIlALI VJ ? EMIiniTIOXS. The pirticip.ition of Americans in the exhibitions at Melbourne andSyd- Jioy will bo approvingly mentioned in the reports of the two exhibitions soon to bo presented to Con rejs. They wdl disclose the readiness of our coun trymen to m ike a successful competi tion in thoao fields of enterprise. I.NTKKNATIO.SAL tOl'MlKHIT. Necotiationa for an international -copyright convention are in hopeful progress. progress.THE UOMIMON II011DKK. The surrender of Sitting Hull and iis forces upon the Canada frontier haa allayed all apprehension , although bodies of hostile Indiana atill cross the border in quest of sustenance. Upon this subject n correspondence haa been opened which promises an adequate - quato understanding. Our troops 'haveorders to avoid , meanwhile , all collisions with alien Indiana. THE YOUKTOWN VISITORS. The presence at the Yorktown cele bration of representatives of the French republic and descendants of Lafayette and of his gallant com patriots who were our allies in the revolution , has aorved to strength n the spirit of good will which has always existed bolweon the two na tions. You will bo furnished with the proceedings of THK BI-HKTALLIU CONPliUI'AC I ! held during thu aununur at the city of Paris. No accord wai reached , but a valuable intorohanu'o of views waa had , and the conference will next year be renovved. THB F.LECTVICAI. CO.VCIIlKSn. Atthuolectvical exhibition and con gress also hold at Paris , this country was creditably represented by emi nent specialism , who in the absence of an appropriation generally lout their efficient aid at the instance of the atat * department. While our exhibi tion in this almuBt distinctively Ameri can Cold of achievements huvn won eovoral awards , I rocoinmcnd that conpjrosa provide for the repayment of the personal expenses incurred in the public interest by the honorary com- miaaionera and dolomites. AMfUICAK OITIZENd ABUOAI > . No now questions respecting the .0tatua f our naturalized citizens to Gormnny have atuoii during the your , and the causes of complaint , especially in Aleace and Loraine , hr\vo practic ally ceased thrmu'h the liberal action of thn imperial government in accept ing our often expressed views on the subject. The application of the treaty of 1808 to the lutoly acquired Rliein- ish provinces haa received very earn est attention , and definite and lasting agreement on this point is confidently expected. The participation of the deecondnnta of II.iron Von Stoubcn in the Yorktown festi\itie3 and their subsequent , reception by their Ameri can kitiBinon strikingly evinced thu ties of the peed will which unite tlio Ournian people and our own. SPAIS AND AMBUICVN SHIITINO. Our intercourse vvith Spain has been friendly. An agreement , con cluded in February last , fixes it term for thu labors for the Spiniah and American claims coinmisson , The Spanish government lias been request ed to pay the late awards of the com mission , and will , it is believed , accede - cede to the request aa promptly nnd courteously as on forinur occasions. Hy recent legislation onerous fines have been imposed upon American shipping in S | amah and colonial perU for alight irregulnritioi in manifests. Ono case of hardship is flpccially worthy of attention. The bark Ma sonic , bound for Japan , entered Man illa in diet res 3 nnd in there sought to bo confiscated under tno Spanish revenue nuo laws for an alleged shortage in h < r trans-shipped cargo. Though of- forta for her relief hvio thus far proved unavailing , it is expected that the whole will bo adjusted u a friend ly spirit , HVKSIAN KBLATIONH. Thu senate resolution nt condolence on the aaaoasination of Czar Aleian dor II. was , , appropriately communi catpd to ' 'tho Russian government , which in tarn has oxprcaaod ita aym pnthy in our late national bereave ment. It t * desirable that our cordial relations' vpth Russia should bo strengthened by prtfpor engagements , assuring to peace-able Americans who visit the empire the consideration which is dtio to them us citi/ona of a friendly state , Thin ia especially needful with respect to American Israelites raolites whose classification Midi thu natiyo Hebrews has evoked unenrotic remonstrances from this government. ITU.I\N CONBULAK SKUVICK. Consular agreement with Italy has been Banctioned and proclaimed , which puts at rest conflicts of juris diction iii the case of crime on ship' board. Several important international conforoncoB have been held in Italy during the yo.vr. At thn geographical congress of Venice , the Boniface congress gross of Milanand , the Nice congress of Turin , this country was represented by delegates from branches of the public aorviro or by private citizens duly accredited in on honorary ca pacity. It is hoped that congress wil give such prominence to the retmlta of their patriotic action aa they may seem to deserve. THE DDTC1L COtOMKS. The Abolition of all discriminating duties agaiimt the Dutch colonial pro ductions of.the Dutch East Indies , as are imported hither from the Uol lands , have been already considered by congress. I truafc that at the prea- sunt soRsion the matter nuiy be fa vorably concluded. MISSIOXIKUri I > TCKKE\ . The destruction to life and proper ty in many part * > of Turkey has given rise to eoirespondence with the porte , looking particularly to the bettor pro tection of American missionaries in the empire. The condemned mur derer of the eminent missionary , Dr. Justin \V. Parsons , has not yet been executed , although thin government has rope.itedly demanded it. SVMVf elllMlXAL EMIGRATION. The Swiss government h.is Holicitetl the good olticus of our diplo matic and consular uuontn for the pro tection of its citizens in countries where it itself is not represented. This request h is , within proper lim- itfijboeii granted. Our agonta have been instructed to protest against the con duct of thu authorities of cettain commune : ) in permitting the emi gration to this country of criminals and other objectionable persons Several such poisons , through thu corporation of the c immtssioner of emigration at New York , have been sent hack on the steamers which brought them. A continu ition of this course may prove a more effectual rem edy than diplomatic renionstancf. KOKMANIA ANI HEKVIA. Treaties of commerce and naviga tion for the regulation of consular privileges , have been concluded with Llounmnia and Sorviu since their ad mission into the family of the Euro pean states , OUK KKIJITIOKH WITH MEXICO. As * in natural with contiguous atutos having like institutions and like aims ) f advancement and development , the Friendship of the United States and Mexico lias boon constantly main tained , The government has lout no occasion of encouraging the Mexican government to a beneficial realization of the mutual advantages which will result from more intimate commercial intercourse , nnd from the opening of Lhu rich interior of Mexico to railway enterprise. I deem it important that means bo provided to restrain the lawlessness unfortunately HO common on the frontier , and to suppress the forays of the reservation Indians on cither side of the JUo Grandu , CEfiTKAL AMERICAN HTATKS. The neighboring states of Central America have preserved internal peace ind their outward relations toward u > i liavo boon those of intimate friend ship. There are encouraging signs of their growing deposition to Hubordi- nato their local inteiestB to those which are common to them by reason of their geographical relations. Guate mala and Mexico has afforded this 'ON eminent an apportunity to exercise ita good oflices for preventing a rup turu between thesa states and for pro curing u peaceful eolution of the ques tion. I cheruih a strong hope that in view of our relations of amity with both countries our friendly counsel will prevail. The Costa Hic.tn government lately furnuul an engagement with Columbia for settling by arbitration the boun dary question bet ween those countries , providing that the post of arbitrant should be ollered successively to the king of the Belgians , king of Spain and the president of the Argentine Confederation. The king of the licl- giiins haa declined to net , but I am not us yet advised of the action of the king of Spain. Aa wo have certain interests in the disputed territory which are protected by our treaty on- gngemcnt with wno of the parties , it is important tln.t the arbitration should not without our consent affect our rights , and Una government hits ac cordingly thought proper to make its views known to the parties to the agreement as well aa to intimate them to the Itelgiati government. THK I'ANIMA e'A.VAI. The questions growing out of the proposed interoce.vnio water-way across the Isthmus of Panama are of grave national importance. This gov ernment has not ooen unmindful of the solemn obligations imposed upon it by its compact of ISiC with Colum bia as tlio independent and sovereign mistress i f the territory crossed by the proposed canal , and has sought to ren der them effective by fresh engigo- tnents with the Columbian republic looking to their practical execution. The negotiations to this end , after they had reached what ap peared to V ° a mutually aatisfuctory solution hers , were met in Columbia by a disavowa of the powern which ita ClttPy h l tsaumed and by a pro posal for renewed W gtia.tions on a torlified basin. Meanwhile this gov ernment learned that Columbia had proposed to the European powers to join in a guarantee of the neutrality of the proposed Panama canal , a guarantee which would bo in direct contravention of our obligation as the solo guarantor of the integrity of Columbia territory and of the neu trality of the canal itself. My la mented predecesor felt it his duty to place before the European powers the reasons w hicli made the prior guaran tee of the United Staler ) indiapensible and for which the interjection of any foreign guarantee might bo re garded aa a superfluous and un friendly act. Foreseeing the prob able reliance of the British government on thu provisions of the Clayton-Bulvver treaty of 1830 , as af fording room for a share in the guar antees which the United States cove nanted with Columbia four yearn be fore , 1 have not hesitated to supple ment the action of my predecessor by proposing 10 her majesty's govern ment the modification of that instru ment and the abrogation of such clauses thereof aa do not comport with the obligations of the United States toward Columbia , or with the vital needs of the two friendly parties to the compict. THK SOUTH AMI'IUCAN DIFKIUCLTV. Tno government aces with great concern the continuances of the hos tile relations between Chili , Bolivia and Peru. An early peace between these ropublicH in much to bo desired , not only that they may themselves be npared further misery and bloodshed , but because their continued untngon- ism threatens consequences which are , in my opinion , dangerous to the interests of republican government on tins continent , and calculated to de bt roy the best elements of our free and peaceful civiliition. . An in the present excited condition ol popular feeling in thcso countries , there have been serious nmapprehcn sionn of the postti m of the United States , and as separate duiplomaiic in tercourse n ith each thro yh independ ent ministers is pouutimes subject ( owing t the want of prompt iccipro- cal communication ) to temporary mis understanding , I have deemed it ju dicious at tlio present time to wend special envoy , accredited to all and oich of them , and furnished with g-jn- etnl instructioiiH , which will , I trust , enable him to bring these povveis into friendly rul itions. TUB VT.Nh/.UI'IA liBIIT. The government of Venezuela main tains its attitude of warm friendship , and continues with great regalitit > its payment of the monthly quota of ttio diplomitic debt. Without nug geating thu direction in which con- grosH should act , I ask attention to the pending questions affecting the distribution ot the sums thus far recon - con od. The relations between Vonu- /uola and France , growing out of the same debt , have been , for Homo time past , in an UHH itisfuctorj. state , nnd this government , as the neighbor and that of the largest of crodilois ol Venezuela , has interposed itself with the r'rench government with the view ot producing a friendly and honorable adjustment. ItltlZILU.S' INTBIimH. I regret Unit thu commercial interests between the United States and Brazil , from which great ad vantages were hoped u year ago , have Hufferod from the withdrawal of the American linen of communication be tween Jinuilian jxms and our own. NATIONAL INTKKVKNTJON. Though the efforts ot our minister resident at Buenos Ayrea and the United States minister at Santiago , u : reaty has been concluded between .he Argentine Republic nnd Chili , dialling of the longjfponding Patagonian - gonian boundary question , It in u matter of conuratnlatum that our government Ins been offered the op portunity of aiiccoifully exerting ita ; oed influences for the prevention of li > u'roomontH ; between the republics of thu American continent. THE AHIATIO TKKATIES. The clauses ot the treaties vhich forbid thu participation of citi/ena or vesselH of the United States in the opium trade will doubtless receive your approval , and they will attest the sincere mturoat which our people and l/cn eminent nnnifest in the commend able oilorta of the Chinese government to put a atop to this demoralizing una dmtructive trnffia In relation , both to China and Japan , nome chungOA M * dofltrftWe in onr prwit KV ' 'I"I "f consular jurisdiction. I hopent fomo future tinio to lay before you u scheme for ita improvement in the entire east , ClIINl'Jlt IMMIOKATIOS I am glad to inform you tint the treaties lately negotiated with China have been duly ratified on both nidea and the exchangn madu at Peking. Legislation ia necessary to carry its provision into effect. The prompt spirit with which the Chinese govern ment , at the request of the I nitod States , conceded the modification of oxinting treaties , should secure careful - ful regard for thu interest and iimcep- tibilitios of that government in thu enactment of an- laws relating to Chinese immigration , JAPAN. The intimacy between our country and Japan , the most advanced of the ou torn nations , him continued tube cordial. T am advised that the em peror contemplates the ostibluhiiii-nl of a constitutional government , and that ho haa already Munitioned a par liamentary congress for the put pine of etlecting thu change. S-.ieh a ro- nmrkiiblo step toward complete us- Mutilation with the wentern njnti'm cannot fail to bring Japan into closer and more bonolio'ml relationship with ouraelvea. 1 | COXHULAR JUIUHDICTIOS As the chief Pacific ewer , a ques tion has arisen in' relation to the ex ercise in that country of thu jiuhu il functions conferred upon our ministers - tors and consuls. The indictment , triXl and conviction in the consular court at Yokahama of John Uo s , a merchant seaman on board an Amen- can vess l , have made it necessiry for the government to institute a careful examination into the nature and meth ods of this Jurisdiction. It appeared that HoS8 wiu regularly shipped under the llag of ( & ' V United States but was by * birth a Brit ish subject. Sly predecessor felt it his duty to maintain the position , that during his service as a regularly aoixman on board. } an Amoric.ui mer chant vessel , Ross was subject to ' the law a of that 'qorvice , and to the jurisdiction of the United States con sul. t 111 IT OLD INDEMNITY Kl'Ml. I renew the recommendation which hivs heretofore bean urged by the ex ecutive , after the deduction of such amount [ as hnay bo found due to American citizens , the balance of the indemnity funds heretofore obtaim-d from China and Japan , and which are now in the hands of the state depart ment. bo returned to thu govern menta of those countries. THE fUNPWlCH TflLANIIS. The king of the Hawaii , in the courao of his homeward return , after a journey around the world , haa lately vi itod this country. While our re lations with that kingdom are friend ly , this government lias viewed with concern the efforts -to seek roplciimh- mont of the diminishing population of the island from outlawed sources to a degree which may impair the native sovereignty and inuependenco , in which the Uni tea 'Stnte frs among the first to tostifiy a lively interest. M1SCKLI.A.NEOUS } OKM(1N ( HKr.ATIONH. . Relations oi unimpeachod amity have been maintained throughout the year with the respective governments of Austria , Hung try , Mjlgium , Denmark - mark , Hayti , Paraguay and Urugu ly , Portugal , and Sweden and Norway , and this may also bo said of Greece and Ecuador , although our relations with these statoa have for some years been eevetod by the withdrawal of ap propriations for diplomitic reprceci - tativcH at Athena and Quito. It seems expedient to restore these misRuins , oven on a i educed Hilo , and I decidedly recommend such u com so with respect to Ecuador , which is hkuly , within the near fu ture , to play an important part among the nations of thu South Pacific , Till ! OENKVA CONVENTION. At the last extra aession attention wna called to thu text of the Geneva convention for the relief of the wound ed in war. 1 trust tins action foro- uhadowa such interest in the mibject us will result in the adhesion of the United States to that humane and commendable engagement. HULKS KOIl OCEAV TltAVKI. . I invite your attention to the propriety - priety of adopting the new code of in ternational rules for the prevention of ci lluions on the hi h He is and of c > n- forming donuatic legislation of ( he United Statei thereto , HO that no con fusion may arise from the applica'ion ' of conflicting vessels of diifeient nationalities meeting in tidal waters. Thuro international rules differ but slightly from our own. They hurt ) been adopted by the navy department for thu government of the war uhipi of thu United Statoa on the high sous and in foreign witters , and through the action of the state department in dis- Humiliating thu rules and in acquaint ing the shipmasters in thu option of conforming to them without the juris- diutionul waters of the United Statra. They are now very generally known and obeyed. hOItEION I.AIIOU AND rltAIlK NTATIHIIL'S. Thu state department still continues to publish to thu countiy the trade ind manufacturing reports received from its ofuccrs abroad. The success of this courHe warrants itn continu ance , and Kuch appropriation as muy jo required to meet the rapidly in : reasmg demand for those public i- lions. 'With special irfuronco to the Atlanta cotton exposition , the Oclo nor number of thu reportn wan devoted , a a valuable collection of piper * on : ho cotton goods tiado of the world. HIE IMKIINAHONAL HANITUtV TO.V > f.IU'M K , for which in 1870 congress made pro vision , assembled in this city early in lanuaiy last , and its sessions were prolonged until March. Although it eached no npocifiu conclusion ulK-cting 1m future action of the participant Kjwcrs , the interchange of views iroved to be moat valuable , Thu full irotocolit of the Bomion have already x > en presented to thn state , Aa jior- tineut to this general subject , I call pour attention to the operation ! of the board of hcnHh by net jif congress , approved Mirch ! ld , 187' ' Its sphere of duty was en larged by the act of Juno lid in thu dime year , lly the last nnmed act the hoaul was required to insh tuto such measures as might bo deem- L-d nuce'imry for preventing tlio intro duction of contagious or infectious ilisonsi-d from foreign countries into the United States or from ono state into another. The execution of thu rules and regulations prepared by tlio board ami approved by my prodoccta- or has done much to ai-ro.it the progress ross of epidemic d scaiies and has thtm rendered nuhstnntial service to the na tion. The international sanitary con ference to which 1 havureferred adopt ed a form of a bill of health tt bo uiu-d by all vu sul seeking to enter the ports of the countries participating in its deliberations. This form his since been prescribed by the nation U bonnl of health ami inc irporatod with its rules and re'jn'atioim ' which have boon ap proved by mo in pursuance of the luw. J'ho luiihli uf the people is of supreme inipnitiiiico. All measures looking to their pinicction aaaiimt thu spread of contagious diseases and thu increase of oursanitaiy knowledge' for such purpost-8 , doscivo the attention of ' ' . conj'ii'ss. TREASURY DEPARTMENT. HNA.NCIU. KMII1I1T. The report of thu secretary of the trovsury represents in detail a highly sitiufnctory exhibit of the state of thu tiimncos and thu condition of thu vari ous branches of the public s rvice ad ministered by that cJopirtnu-nt. The ordinary resource's fro.n all sources for the fiscal year ending , lunei)0 ) , J881 , vvoreaa fulluws : 1'rom I'lKtoiiiK . ? 1')8 ' ) ir > 9f > 70.02 IV m inlt'riml rnveuiif . lid , 21)1,383,51 Frmn public Ininin , 2,2JlJ3 ( 17 V oiu tav on ci dilution Mid clqioiltn of nntional , l > aiiU3 8,110,113.72 1 rom rcpav nifnt of Inter- Ml by thn IVcihc rail- w \y eotnpanlr . . . . 810,833.80 Fiom sinUtJK-funJ for the 1'ncitic rniiroftU conipn- Kioin customs fee * , fines , in-null ie-n , etc 225,5108(1 ( From frt-M , cnnnulnrln torn patent nillaiuU . ' . ' ,214,081 ! ) ! ) Kroni proceeds of Bales of gc > U'niiii"iit i ro | erty. 20217 Ifl K uni pmhtH ( in coiling" 3 , 108,485 ( il Fnim revvnuo of tno Dis trict of Uoli mbin 2,010,1002,1 Kroni mNct llancous sour- to 0,200880.13 Total ordinary receipts . $ 3li ) ,782,2)7 ) 00 The ordinary expenditures for the aamo peiiod w ro at follows : V. chil expanses . . $ 17 , J4l 177 . . . Tor foreign intcicoume. . , . ll,0Mril ! ! ) ! I2 For Iii'liuus ' 0,514,101 Oil For p-iii-ioiiB 60,050,279 02 K r th mil tiry cstihlixli- ment , includiiiK' river niul hnrborimpnnemenU mul nraennls 40,400,1005,1 Tor the iiavul fstabliKli- ment. incltidiiij.iHoli" , inivhii o y and imp ute- monts at imvy jnrdi. . . . 1.1,081,071 CO For minccjlaneoiH expend- ! turef , including public Imlldin.'s , light hniiBoa nndcolle tlngthercrouuu 41,837,280 r l Fur expenditures on ac count of the 1) strict of f'olumliia l\M'J,9 \ " ( K For intercut on the public dot 82ri08,7U ! > For premium on buidi ptirchaMtil 1,0622187s Total expenditures. . . . 9260,712,887 Ml TJiia loft a surplus of revenue of 8100.0G-10U)8 ! ) ) , which was applied as follows : To the rrdi'ption of bonds for tlio Hinkim ; fund .3 71,371,200 00 Fractional u irrm cj for the Kinking fmul 100,001 0" Loan of Kcbiiiniy , 1801. . . . 7,11 1,00 W ) IIDs I of IM'.I . . 2,01lir.l ! ) 00 520'rinf 1812 ! 1H.300 ! > 0 , r.-0'rtof 1H > It.lOOOi r.-0's of inr. : i7ioo : oo U..iih.ils . f Jbf.l . . . . 1,131 fiOO 00 ConaoN of 1M.7 . ! fl'lIW ) (0 Cou OH if IHCd . , 37 ! , IOU OH lyoui in'ldiinity Hioolc . . . 10 , < JUO(0 ( Old dcmiunl , coiup mul In- u.TCHt aii'l othe-r notes IB.ii.ll ) 00 Thu men auo ol eaih In the Tro huty . . . . . . . 11 037 , 2J 93 Totd : lOOfl'IOI ( ) ) OH The u-qniiomciitH of thu mnKing fund for the yoir amounted to § ! )0 ) , 780,001.02 , , nnd whieli aiim inchulo' ) a IM'UIICO ' of ? lt,817lliS ! , 78 not provid ed for dining the previnus fiscal year. Thu sum of § 7 180,201 05 was np plied to this fund which left n dulicit of Sl ( , : wr > 87:1JO. : . The increase of the le-venueH for 1881 over those of tin ) previous year was 82 ! ) ; { 5iiK)1.10. ! It id estimated that the rucuiptn dur ing thu piesunt fiscal yoir u ill ro.tcli S4KOfl,00 ( ) ( ( ) , and the expenditures 8270,000,000 , leaving a surplus of 9ii,000 : ( ) 000 applicable ) to the mnkin ; ; fund and thu ledomptlon of the pub lic debt , UKlIItKMK ! < T OF NJI.Vl'.U CKHTIi'KHTKS I approve the * recomiiiu.idutions of the Hccrotury of the treasury that jirovision bo made for the early retirement of silver cor- tiliculea and that the act requiring their iBSiio bo repealed. TJmy wcro isMied in purauuuco of iho policy of the government to maintain silver at or near the gold standard , and wore accordingly made receivable for all customs , tuxes and public duea. About $ ( il,000,000 ( of them are now outstand ing. They formed an unnocesaary iddition to the piper currency , a sutlicient amount of which may be readily auppliud by the national kinks , COINtHK OK HII.VEK. In aecunlancn with thu act of Fob- -8th 1878 tlio do- nmry8th , , treasury - partiiKint has monthly caused at leant S10,000,00 ( ) in value of Hi'lvei bullion to be cdinod into standard silver dol- ara. Ono bundled nnd two millions if thuHU dollars have been utuadily coinud , only about thirty-four millions ire in circulation , u'.oiHi-Anow ! < i.toMur.Nini . ] < \r ) the HuiHons which ho Hptcifiea , I concur in thu sucntary'H : roeommou- datioii that the provision leqiiimiK thu coinage of n fixed nmoiint each month bo rupoiled , nnd that hereaf ter only no much be coined as uliall bo iieci'Htmry to Hiijiplv the dumaud , The Bucretiiry ndvisw that the iesuo of gold certificates should not for the pronont bo reaumod , nnd aug enta that th < > national N > nt.s muy pn"Tlr \ * > forbidden by law to retire their cuireiicy , except upon nwomiblo no tice of their intention so to do. Such legislation would seem to bo justified l < y thu recent action of certain banks on the occasion referred in the secre tary's report. HUCTIO.VAI. CfllTlKSC'Y. Tlioro are fifteen millions of frac tional currency still outstanding. Only about $80,000 lias been redeem ed in the past year. 1 ho suggestion that thin amount msy properly bo dropped from future statements ot thu public debt seems worthy of approval ; so , also , dors the suirgi'stion of the1 secretary , ns to the advi-nhility of re- teving thu calendar of the United States courts in thu southern district of Now York by thu transfer to an- ithor tribunal of the numerous cuitn thuro pending against the collector The KKVhNUi : niOM CUSTOMS 'or the past fiscal year was Sl'IO.lfi'.t- MU'.CL' , an incrca.su of 8lli7 ( : ! till -t'2 ivnr that of the preceding jear ; 81 8,0 8r l ! 1)9 ) of this amount was collected at thu port of Now York , leaving' $ TiO,25l,113 OH as thu amount ccllecUd at all , ho other ports of the country. Of tins sum , S 17,077,1U7 03 was collected in sugar mid molasses , $27,285,024.78 : > n wool and ita manufactures , $21- 102,0 ; ! 1 on iron and nteol and mum fact HIM thereof , Slt,0WiG5.8l ! : ( on man.ifactuiea of silk , $10,825,115 , 21 on manufactures of cotton , and 9,4tG4i.04 ) ! ) : on WIIUH and spirits ; making thu total revenue from these sources of § 1 : ,058,720.81. The ex- poiison of collection for thu past year vvoro ? G,4iyt4r ; . ' .20 , an imroiso over the preceding year of $1187,110.04. Notwithstanding ( ho increase in the revenue from customs over the pre ceding year , the gross value of the imports , including free unods , decreased over 825,000- 000. The marked decrease waa in the value of unnmnufActurod wool $14- 02S8'2 : { nnd in that of scrap and pig iron 812,810,071. IMI'OHTS AND K The value of the imports of sugar on the other hand showed nn increiiBC of $7tr.7,474 , of Bteel rails 81,345- 5'21 , of barley 82,154,201 , and of steel in bars , ingots , etc. , $020,010. Contrasted with the imports the e\- porta were nn fell < ws : Domestic mer chandise , 890,8:17,250.47 : ; foieign nu-r- chandise$184,5K < ) < ) ; total$002,377- ! )4i ) ( ; imports of inoichandise , SOU- 001,028 ; excess of exports over iiu- ports of morchandiBo , 8i"y,712,718j ngifresato of exports and imports , 815,150,11974. , Compared with the prtivioua year there was an increase of 800,738,088 in the value of the ex- pertH of merchandise , and a decrease of 825,290,118 in the value of im ports. The annual average ot in crease of imports of merchandise over exports thereof for the ten years previous to Juno 30 , 1873 , waa 8104,890,922 , but for the las.t six years there haa boon an excess of exports over imports ol merchandise amounting to $1,180- 008,103 , an annual'avcrago of 8190- 778,017. ' The spooio value of the t-x- pertH of domestic merchandise was 8-170,01(5 ( 473 in 1870 , and 8883,025 , . 917 in 1871 , an increase of 8307,30- ! 474 , or 1 3-5 per cent. The value ol the imports wns 8135,958,408 in 1870 and 80t2,004i ( 28 in 1881 an in crease of 8200,700,220 , , or 17 per cent. Duriiu'each year from 1802 to 1879 inclusive , thooxporls of speciocxceedcd the imports. The largest excess of .such exports over impoiLs wna lunched during the year 1804 , when it amount ed to 892,201,92 ! ) , but during the year ending Juno 30th , 1880 , the im ports of coin nnd bullion exceeded the exports by 875,891 'Ml , and during the la t fiscal year the excess of im parts over exports was 891,108,050. TIU : iiKKUfcniNo OIM'.UAIIONS. Tu the last annual report of the secretary rotary of the treasury , the attention ol cnngi CHS v\n called to the fact that S109i.l,050 ( in 5 per centum bondw nnd V203,573 , 50 in 0 per coiitum bonds Mould bueoinu ruduonmblo dur ing the ytur , and congress was asked tuautliomo thu lefunding of theau bonds at a lower rate of interest. The bill for such refunding having fmlcd to become a law , the Hi'crutury of the treasury , inApiil last , notified the holders of the 8195,090,100 of 0 per centum bonds then outstanding that the bonds would bo paid nt par on the 1st day of July following , or thr.t they might bo "continued" ut the pleasure of the government to bear mtureet at the rate of M per centum pur annum. Under thin notice - tico 8178,055,150 of the 0 per contum bonds wen ) continued at the lower into , and 817,035,250 were redeemed. In thu month of May , a like notice was given respecting the redemption or continuance of the 8439,811,350 of * i per centum bonds then outstanding , ind of thcho 8101,501,900 , wore con tinued at : U per centum per annum ind $38,330,150 redeemed. IIONll UKDKMITIO.V. Thu ( i per centum bonds of the loan of February 8 , 1801 , and of the Oregon - gen war debt , amounting together to 814,125,800 , , having matured during , ho year , thu aocrotiry of the treasury guvo iiotico rf his intention to redeem .ho same and such aa have been pro- Hunted have been paid from the mir- > hm revenue. There have also been redeemed at par 810,179,100 of thu : U " iur centum "continued" bondn , mak" iiL' u total of bonds redeemed , or which have ceased to brnr interest luring the year of 8123,909,050. The eduction of thu annual intercut on the iiibliu debt through them ) t inductions n as follows : IJy reduction of interest to , ' ) j per cent. , 810,173.952.27 ; by redemption of bondH , lt.0,352,310.00 ; total , 8H,820I2J2. ! ( 7. The 'U per centum bonds , being payable ( it the ileiusuro of thu government , tire nviul- iblo for tlioinvestmunt of Hiirplus ruv enuu without thupajmoiit of prom uni. Unless theHii boudu can be 'muled at a much lower rate of inter- ist than they now bear , I agree with ho secretary of the treasury , that no emulation respecting them is dusir- able. It in ft matter of congratula- that the business of the country twst year aa to yield by taxation a. largo surplus of income to the govern ment If the revenue lawa remain unchanged , this surplus must year by year increase , on account of the reduction of the public debt and ita burden of interest , and bocaiiBO of the wpid increase of population. In 1800 , just prior to the institution of our internal revenue system , our pop- illation but slightly exceeded 30,000- 000 By the census of 1880 , it is found to exce-od 50,000,000. It is es timated that even if the annual ro- .jipts and expenditures should con- tinun as at preaent , the entite debt ivculd bo paid in ton years , In view , However , of the heavy lend of taxa- uin which our people have already Hirne , wo may well consider whether t is not the part of wisdom to rcduoo ; hu revenues , even if we delay a lit- Lle payment of thu debt. INTRKSAI. IIKVKNUK TAXATION. It seoma to me Unit the time hna ar rived when the people may justly don - n ind Home relief from their present enormous burden , nnd that by duo economy in the vaiious branches of the public service tins may readily bo afforded. 1 therefoie1 concur with the soeritary in n commending the aboli tion uf all intutnnl revenue taxes ex- iept thimu upon tihnccs ) in ita various forma and upon distilled and firnuinU'd liUius ( ] , and except ivlpo thu pccial tax upon the manufacturers of , and deulern in Mich art cles. The inten tion of the latter tax is desirable on ( Herding thu officers of tlio govern ment n proper supervision ot these articlea for the prevention of fraud. 1 agree with the soretary of the truan- ury that the law imposing n stamp tax on ma clios , propriutory articles , playing curds , checks and drafts , imy with propriety bo repealed , nnd the law also by which banks and banker * are assessed upon the capital and de posits. There noeins to be a general uontiment in laver of this course. In the present condition of our revenues , the tux upon dupoaita in especially un just. It was never imposed in this country until it was required by the necessities of war , and was ncvor- cxncU'd , I believe , even in ita greatest , exigencies. NATIONAL HANK ( 'IUCUI.ATIO.V. limkpra are required to secure their circulation by pledging with the treasurer of thu United States bondw of the general government. The in terest upon tlioso bonds , which at the time when the tax was imposed wan. 0 per cent , is now in most instaiicua M per cent , and besides the entire circulation waa originally limited by law and no increase was allowable. When the existing banks had prac tically a monopoly of the business , there was force in the suggestion that ; for the franchise to the favored : grantees the government might very properly exact a tax on circulation , but for years the system haa boon free and the amount of circulation regu lated by the public demand. The re tention of tliw tax has been suggested as a moana of reimbursing the govern ment for the dxpouau of printing and furnishing the circulating'"no&s. If the tax should bo repealed it would certainly BCOIII proper to require the national ban lea to pay the amount of ouch ctpctiHo to the comptroller of the currency. SO IlKDUITIKUf OV TOBACCO Oil LICjUOH. It is , perhaps , doubtful whether thu immudiato reduction of the rate of taxation upon liquors and tobacco in advisable , especially in view of the diain upon the tieasury which must attend thu payment of aricaia of pon- Hioim. A comparison , however , of the amount of taxes collected under the vniying rulcH of taxation which have at cUfUironl times prevailed , sug gest u the intimation that some reduc tion may IIOOH bo mite'u without inuterul diminution of the lovenue. Tin : i uitir LAWS also need revi lion , but that a due re gard mav bo paid to thu conflicting intoiesta of our citizens , important , clringca should be madu with caution. If a careful leMsion cannot bo made nt this Hussion , u commission , such aa wns lately nj proved by the Bunuto , nnd m now recommended by the ACC- rotuiy of the treasury , would donbt- htsH lighten the labor-i of cougresK whenever thin subject shall be hi ought to ita consideration. WAR ! DEPARTMENT. INCKKAHK THK AHSIV. The accompanying report cf the secretary of war will inuke known the operations of the department for the year. Ho suggests measure * for promoting meting the efficiency of the army , without adding to the number of it * oflicerH , and recommends the legiBln- tiou necessary to increase the num ber of enlisted men to inaku 30,000 the maximum allowed by law. Thm ho deems necessary to maintain quiet ness on our over-shifting frontier , to preserve ponce , and suppress disorder and marauding in nov settlements , to protect BottloiB and their property against Indians , and Indians against the encroachments of intruders , nnd to enable peaceful immigrants to es tablish homes in thu moat remotu pnrtfl of our country. The army i now nece-Hsnrily scattered over uuch a vast extent of territory , that v hen- over an outbreak occurs , reinforce ments must bo hurried from many 1 nar t DM over great distances , and vluajH ut heavy cost for trunspoiia- : ion of inun , horses , wagons ami sup plies. 1 concur in thu rocommunda- : ioii of the secretary for increasing : lie army to the strength of 30,000- enlisted men. KltONlIKlt VVOUK. It appears by the secretary's report : hut in thci absence of disturliances on : liu fiontier , thu troops have been IKV- ivoly employed in collecting Indian * iitherto hostile mid locating them on ihuir proper reset v aliens ; that Bitting Hull and his adherents are now pris oners ut Fort llandull ; that the Ute * liavo been moved to their now reser vation in Utah ; that during the m eont outbieuk of the Apaches it nan necessary to reinforce garrisonw in Arizona by troops withdrawn from- New Mexijo , and tjiat some Apache * nnw hold prisoners for trial while