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DAILY ENQUIRER SUN: COLUMBUS, GEORGIA, THURSDAY MQRNING, DECEMBER 6, 18 <£#tate€iu)«iwr-S'un. PRESIDENTS NESSlfiE. COLUMBUS, C» A. t THURSDAY DEC. 6, LARGEST ('ITT CI1UTLATION AMD MORK THAW TWICE THE LARGEST AGGREGATE CIHCn.A TIOA ! MR. W. H. VANPKKBTLT, whilst driving a fust team in New York on the 7th of November, knocked down an elderly mail, Mr. Matthew llleley, who Is now supposed to lie in a dying condition, (mving received a fracture of the skull, resulting in a concussion of tlie brain. JlinoK Sims was elected Lieutenant Governor of Mississippi last month by a majority of ion,non. The people thought they would, however, abol ish lifts office by a constitutional amendment. It is doubtful whether they have succeeded in doing it. An amendment must receive in Missis sippi n majority of the votes east for representatives. The amendment in question fails about a thousand votes short of the requisite vote, and Judge Hints gets a sinecure for four years. The Hoa ami Cohn Chop.—The Cincinnati Price Current publishes an elaborate Special report on hogs ami corn, hased upon information do- rived from a large number of places throughout the prominent corn and hog producing sections of the West. The general result indicates a proba ble increase of 5per cent, in the num ber of hogs for winter marketing, and a large basis of supply for next spring and summer, with a general healthier condition of lings as com pared with lust year, and a probable increase of itogs for winter packing. ■ ■ • ♦ ♦ - 1 “ ■ The President's Mkhhaoe.—We give it in full to-day for several reas ons. It is a State document which forms part of the history of the times. We do not, expect that the majority will read It, lint the thoughtful class will do so that they may understand the exact condition ofall'airs.audsuli- sequent legislation. There is nothing very striking in the long document, and nothing new, but it is a part of the strange record of a strange era when fraud and partisanship instead of tlie ballots of the people rule. To muke room for it,we omit all editorial matter. GEORGIA NEWS. Upettnl In thr Xrw Orleans Picanune.] j FELICITATIONS—THE SOUTHERN POL ICY. Fellow Citizens of the. Senate and House of Iicprcscnlatives: With devout gratitude to the boun tiful (liver of all good, I congratulate you that at tlie beginning of your iirst regular session you find our country blessed with health and peace, and abundant harvests, anti with encouraging prospects of an early return of general prosperity. To com) dctcand make permanent the pac ification of the country continues to lie, and until it is fully accomplished, must remain the most important of all our national interests. The earn est purpose of gootl citizens generally to unite their efforts in this endeavor is evident. It found decided expres sion In tlie resolutions announced in 1877 by the national conventions of tlie leuding political parties of the country. There was a widespread apprehension Hint tlie momentous results in our progress as a nation, marked by the recent amendments the Constitution, were in immi- —Joseph Brown is sentenced to lie hung in Cobh county on the 28lh. —The Baptist church in Home was damaged $.'i(HI to $600 by lire Sunday. —Gainesville voted 86 for against 66 opposed to voting $25,000 to Bn|i- tist Female College. —A dividend of $6 60 on the stock of tlie Augusta and Savannah Bail- road lias been declared. —At ThonniHton sweet potatoes are sold at 06 cents per bushel and not a ear load of corn has been sold there tills year. —Four si in its of S, W. It. It. stock sold at auction in Macon, Tuesday, for $78 60 per share. Ileal estate brought yery low figures. —A wagoner from FJll)ay, Georgia, who was on his way to tiuit city, was robbed a few nights ago of one hun dred and llfty dollars belonging to Mr. Bishop, ii merchant of Fllijay, which lie was sending to merchants of Rome. —Captain Hurry Jackson, of the Atlanta Cadets, the son oft ion. Henry R. Jackson, has been voted the most popular military officer of the city of Atlanta,'at the Young Men's Build ing Association fair, just closed, and is to he tlie recipient of a beautiful sword, which accompanies tlie com plimentary vote. ,to .... . pent jeopardy : that tlie good under standing which prompted their adop tion in the interest of a loyul devo tion to the general welfare, might prove a barren truce, and that the two sections of die country once en gaged in civil strife might be again almost as widely severed and disu nited as they were when arrayed in arms against each other. Tlie course to be pursued, which in my judgment seemed wisest in the presence of this inei'geney, was plainly indicated in my inaugural address. It pointed to tlie time which all our people desire to see, when a genuine love of our whole country and of all tliut con cerns its true'welfare shall supplant destructive forces of tlie mutual ani mosity of races and of sectional hos tility.’ Opinions have differed widely as to the measures best calculated to secure this great end. Tills wus to he expected. The measures adopted by the Administration have been sul>- jeeted to severe und varied criticism. Any course, whatever, which might have been entered upon would cer tainly have encountered distrust and opisisilion. These measures were, in my judgment, such as were most in harmony with tlie Constitution und with the genius of our people, and lies! adapted, under all the circum stances, to attain the end In view Beneficent results, already apparent, nrove that these endeavors are not to tie regarded as a mere experiment, and should sustain and encourage us ill our efforts. Already, in tlie brief period which lias elapsed, tlie imme diate effectiveness, no less than tlie justice of tlie course pursued, is demonstrated, and I have an abiding I'aitli that time will furnish its ample vindication in tlie minds of the great majority of my fellow-citizens. The discontinuance of tlie use of the army for the purpose of upholding local governments in two States of the Hnion was no less a constitutional duty and requirement under the cir cumstances existing at tlie time than it wus u much needed measure for the restoration of local self-government and tlie promotion of national har mony. The withdrawal of tlie troops from such employment was effected deliberately und with solicitous care for tlie peace and good order of socie ty, and the protection of the property liiul persons’ and every right of all . The results Unit ALABAMA NEWS. —The Alabama Conference of the Methodist Episcopal Church South, wlllcotivene in the city of Montgom ery on the lUtli of December, 1877. —An Oxford man is so close-listed that he will not advertise in the pu llers, but ties his card to a pig's tail and turns tlie grunter loose in the street. —On Sunday night, Timothy Byrnes, uged It) years, was killed by Frederick Kohler, a keeper of a sa loon in Mobile. Kohler lias surren dered. —Oil Monday in Tuskegee the large building' known as Masonic Hall occupied by the Mueon Mail and by Messrs. Asa Brooks and 1). Wat son as grocery stores was burned. —Judge J. McCulcb Wiley, aged 70 years, died in Troy Sunday even ing. He had been a lawyer fifty years, a circuit judge eight years, and muster of Uie Masonic (iraiid Lodge of Alabama. mm nos rs. ro.vx r.m;. TalUNiphof 11m* l'lr»t In FIIkwIiimimm*** NoiiiIiiiiIIum. Npeciof fo Washington, December 2.—The contest in the executive session of the Senate over Fitzsimmons ns Marshal of Georgia was ehietly atilt between Cockling and Senator Gordon. Conk- ling ffrmlv assailed the President's policy, ami scouted the |H>sltinn that no rcspectnhle Republican in Georgia could lie found to till the otliei Marshal. He referred specially to Akerman, Josh Hill, and General Longstreet, and said tlint out of 90,- 000 Republicans a suitable mail could be found. General < iordon’s letter in respect to Huff's appointment was read, for the purixwc of showing that Huff’was set aside merely because he was u Republican. Gen. Gordon plained that his op|Kisitiou t was because he was represented to Democratic Senators as a Democrat, und recommended to the President as one who would lie useful in building classes of citizens, have followed are Indeed significant and encouraging. All apprehension of danger from remitting those Stutes to local self-government is dispelled, and a most salutary change m tlie minds of tlie people lias begun and is in progress in every part of that sec tion of tlie country once the theatre of unhappy civil strife, substituting for suspicion, distrust and aversion, concord, friendship and patriotic at tachment to the Union. No unpreju diced mind will deny that the terrilde and often fatal collisions which for several years have lieeu of fre quent occurrence, and have agitated and alarmed tlie public mind, have almost entirely ceased, and that a spirit of mutual forbearance and lieartv national interest lias succeed ed. 'Vliere lias been a general re-es tablishment of order and of tile oi derly administration of justice, and instances of remaining lawlessne have become of rare occurrence. Po litical turmoil and turbulence have disappeared; useful industries have been resumed. Public credit in the Southern States lias been greatly strengthened, and the encouraging benefits of a revival of commerce be tween tlie sections of country lately embroiled in civil war are fully en joyed. Such are some of the results already attained upon which the country is to be congratulated. They are of such importance that we may with eontldenee patiently await the desired consummation tliut will sure ly come with the natural progress of events. It may not lie improper here to say that it should lie our ilxed and unalterable determination to protect, liy all available and proper means under the Constitution and the laws, the lately emancipated race in the en joyment of their rights and privile ges, and 1 urge upon those to whom heretofore the colored people have sustained tlie relation or bondmen (lie wisdom and justice of humane and liberal local legislation witli re spect to their education and general welfare. A linn adherence to the laws, both national and State, as to the civil and political rights of the colored people now advanced to full and equal citizenship, tlie immediate repression and sure punishment by tlie national and local authorities within their respective jurisdiction of every instance of lawlessness and violence toward them, is required for the sucurity alike of both races, and of j is justly demanded by tlie public opinion’of the country and the age. In this way tlie restoration of har mony and good will, and tlie com plete protection of every citizen in tlie full enjoyment ' of every constitutional rigid, will sure ly be attained. Whatever au thority rests witli me to this end I shall not hesitate to put forth; Huff' Whatever belongs to tlie power of Congross and the jurisdiction of tlie courts of tlie I'lilon, they may lie confidently relied U|x>n to provide and up tlie Republican party in (ieorgia. General Gordon id perform, and to tlie Lcgislatart's, the Courts and the Executive author- ’ordon detledConkllng to dies of tlie several States 1 earnestly say that such a man ought to lie ap- j appeal to secure by adequate, nppro- |sii nted to office. The jHiint was priate and reasonable means within made in the delude that no Democrat their borders these common nml uni- ought to be trusted with theexeoution form rights of a united people which of tlie laws growing out of tlie eolisti- I loves liberty, abhors opprqrsion tutional amendment,-. After this sort of apiM-al, only three Republicans were found ready to vote for Fitzsim mons, namely, Stanley Matthews und the two despised Republicans, Cono ver and Patterson. Mr. (.'oakling's motive in opposing Fitzsimmons was probably to conciliate tlie Southern Republicans, with a view to the next presidential Humiliation. and reveres Justice. These objects are very dear to my heart. I shall continue most earnestly to strive for their attainment. Tljg cordial co operation of all classes of ull sections of the country and of Isitli races is re quired for this purpose, and witli these blessings assured, and not oth erwise, we may safelv hope to hand down our free Institutions of govern ment unimpaired to tlie generations that will succeed us. THE CURRENCY QUESTION AND PUB LIC DEBT. Among the other subjects of great and public importance to tlie jieople of this country I cannot be mistaken, I think, in regarding as pre-eminent the policy and measures which ure designed to secure the restoration of the currency to that normal and healthful condition in which, by tlie resumption of specie payments, our intcrnul trade and foreign commerce may lie brought into harmony witli tlie system of exchanges which is based upon tlie precious metals as the intrinsic money of the world. In tlie public judgment that this end should bo sought and compassed as speedily and securely as the resources of the jieople and the wisdom of their Gov ernment can accomplish, there is a much greater degree of unanimity than is found to concur in the spccflc measures which will bring the coun try so this desired end or tlie rapidity o{ the steps by which it can be safely reached. Upon a most anxious and deliberate examination, which I have felt it my duty to give to the subject, I am the more confirmed in the opin ion which I expressed in accepting tlie nomination for the Presidency, and u]K>ii my Inauguration, that the IKilicy of resumption should be pur sued by every suitable means, and that no legislation would be wise that should disparage tlie importance or retard the attainment of that result. I have no disposition and certainly no right to question the sincerity of the intelligence of opposing opinions, und would neither conceal nor undcr- ■nlue the considerable difficulties and even occassional distresses which may attend the progress of tlie nation to ward this primary condition to its general and permanent prosper ity. I must, however, adhere to my most earnest convic tion that any wavering in pur pose, or unsteadiness in methods, so far from avoiding or reducing tlie in convenience inseparable from tlie transition from un irredeemable to a redeemable paper currency, would only tend to increased and prolonged disturbance in values, and unless re trieved must end in serious dis order, dishonor and disaster in the financial.affairs of the Govern ment and of tlie people. Tlie mis chiefs which I apprehend and urgent ly deprecate are confined to no class of the people Indeed, but seem to me most certainly to threaten to the in dustrious masses, whether tlielr oc cupations are of skilled or common labor. To them it seems to me it is of prime importance that their labor should be compensated in money which is itself fixed in exchangeable value by being irrevocably measured by the labor necessary to its produc tion. This permanent quality of the money of the people is sought for,and can only be gained by the resumption of specie payments. The rich, the speculative, the Operating, tlie money dealing classes, may not always feel the mischiefs of or may find casual profits in a variable currency, but the misfortunes of such a currency to those who are paid salaries or wages are inevitableund remediless. Closely connected with this general subject of the resumption of specie payments is one of subordinate but still of grave Importance. I mean tlie readjust ment of our coinage system by the renewal of tlie silver dollar as an element lu our specie currency, en dowed liy legislation with the quality of legal tender to a greater or less extent. As there is no doubt of the power of Congress, under tlie Con stitution, to coin money and rcgulute the value thereof, and as this power covers the whole range of author ity applicable to the metal, the rated value und the legal tender quali ty which shall be udopted fertile coin age, the considerations which should induce or discourage a particular measure connected with tlie coinage, belong clearly to the province of leg islative discretion and of public expo dlcncy. Without intruding upon this province of legislation in the least, I have yet thought tlie subject of such critical importance in tlie ac tual condition of our affiiirs ns to present an occasion for the exercise of the duty imposed by the Constitu tion on the President of recommend ing to the consideration of Congress such measures as lie shall judge necessary and expedient. Holding the opinion, ns T do, that neither the interests of the Government nor of the people of the United Stntos would be promoted by disparaging silver as one of the two precious metals which furnish the coinage of the world, and that legislation which looks to main taining the volume of intrinsic money tons full a measure of both metul's as their relative commercial values will permit, would be neither unjust nor inexpedient, I must ask your indulgence to a brief and defi nite statement of certain essential features in such legislative measure which l feel it my duty to recom mend. I do not propose to enter tlie debate represented on both sides by such able disputants in Congress and before the people and in the press, as to the extent to which tlie legislation of any ope nation cun control this question, even within its own bur ners, against, the written lawsof trade or tlie jsisitive laws of other governments. Tlie wisdom of Congress in shaping any par ticular law that may be presented for mv approval may wholly supersede tlie necessity of my entering into these considerations, and I willingly avoid either vague or intricate in quiries. It is only certain, plain and practical traits of such legislation that I desire to recommend to your atten tion. In uny legislation providing for a silver coinage, regulating its value, and imparting to it tlie quality of legal tender, it seems to me of great importance that Congress should not lose sight of its action as operating in a twofold capacity and in two dis- tiet directions. If the United States Government were free from a public debt its legislative dealing witli the question of silver coinage would lie purely sovereign and governmental, under no restraints but those of con stitutional power and tlie public good as affected by the protKised legislation. But tlie actual circumstances of the nation, witli a vast public debt dis tributed very widely among our own citizens und held i’ll great amounts also abroad, the nature of the silver coinage measure, as affecting tills re lation of tlie Government to the hold ers of tlie public debt, becomes an el ement in any projiosed legislation of the highest concern. Tlie obligation of tlie public faith transcends all questions of profit or public advan tage, otherwise its unquestionable maintenance is tlie dictate as well of tlie highest expediency as of tlie most necessary duty, and will ever lie eare- fullv guarded by Congress and people alike. Tlie public debt of tlie United States, to tlie amount of $729,(XX),(XX), bears Interest at the rate of 0 |>er cent., and $708,(XX),(XX) at tile rate of 6 percent., und tlie only wav in which the country can be relieved from the riflvnient of these high rates of inter- like manner, assigns to the Senate the ciddH tty*advantageously refunding tbe indebtedness. Whether the debt is whU|)t the | House of KepreewitSTves ultimately paid in gold or silver coin ■- *• - is of but little moment compared with the possible reduction of interest one- third by refunding it at such reduced rate. Ir the Uhited States had tlie unquestioned right to pny its bonds in silver coin, the little benefit from that process would be greatly overbalanced by tlie injurious effect of sucii payment. If made or proposed against tlie honest convictions of the public creditors, all the bonds that have been issued since February 12, 1878, when gold became the only unlimited legal tender me tallic currency of the country, are justly payable in gold coin or in coin of equal value. During the time of these issues the only dollar that could be or was received‘by the Government in exchange for bonds was the gold dol lar. To require the puldic creditors to take in repayment any dollar of less commercial value would lie re garded by them as a repudiation of the full obligation assumed. The bonds issued prior to 1873 were issued at a time when the gold dollar was the only coin in circulation or con templated by either the Government or tne holders of the bonds as the coin in which they were to be paid. It is far better to pay these bonds in that coin than to seem to take advantage of the unforeseen fall in silver bullion to pay in a new issue of silver coin thus made so much less valuable. The power of the United States to coin money and to regulate the value thereof, ought never to be exercised for the purpose of enabling the Gov ernment to pay its obligations in a coin of less value than that contem plated by tlie parties when tlie bonds were issued. Any attempt to pay the national indebtedness in a coinage of less commercial value than the mon ey of the world would involve a vio lation of the public faith and work irreparable injury to the public credit. It was the great merit of tlie act of March, 1869, in strengthening the public credit. It removed all doubt as to the purpose of the United States to pay their bonded debt in coin. That act was accepted as a pledge of S ublic faith. The Government lias erived great benefit from it in the progress thus far made in refunding tlie public debt at low rates of interest. An adherence to tlie wise and just policy of an exact observance of the public faith will enable the Govern ment rapidly to reduce tlie burden of interest on the* national debt to an amount exceeding #20,000,000 per an num, and effect an aggregate saving to the United {States of more than #300,- 000,000 before the bonds can lie fully paid. In adapting the silver coinage to tlie ordinary uses of currency in the every day transactions of life, and pre scribing the quality of legal tender to bo assignod to it, a consideration of the first importance should bo so to adjust the ratio between the silver and the gold coinage which now constitutes our specie currency as to accomplish the desired end of maintaining the circula tion of tho two metalic currencies and keeping up the volume of the two pre- cious metals as our intrinsic money. It is a mixed question for scientific rea soning and historical experience to de termine how far and by what methods a practical equilibrium can be main tained which will keep both metals in circulation in their appropriate spheres of common use. An ab solute equality of .commercial val ue froo from disturbing fluctua tions is hardly attainable, and without it an unlimited legal tender for private transactions assigned to both metals would irresistibly tend to drivo out of circulation tlie dearer coinage, and dis appoint tho principal object proposed liy tho legislation in view. I appre hend, therefore, that the two conditions of a near approach to equality of com mercial value between tne gold and sil ver coinage of tlie same denomination and of a limitation of the amounts for which the silver eoinago is to bo a logal tondor arc essential to maintaining both in circulation. If those conditions can bo successfully observed, tho issue from the mint of silver dol lars would afford material assist ance to tho community in tlie transition to redeemable paper money, and would facilitate the resumption of specie pay ment and its permanent establishment. Without those conditions, I fear that only mischief and misfortune would flow from a coinage of silver dollars with the quality of unlimited legal ten der even in private transactions. Any expectation of temporary ease from nil issue of silver coinage to pass as a legal tondor at a rate materially above its commercial valne is, I am persuaded, a delusion. Nor can I think that there is any substantial distinction between an original issue of silver dollars at a nominal value materially above their commercial value and tho restoration of the silver dollar at a rate which once was, but has ceased to be, its commer cial value. Certainly the issue of our gold coinage, reduced in weight mate rially above its logal tender value.would not lie any tho less a present debase ment of the coinage by reason of its equaling, or even exceeding in weight, a gold coinage which, at some past time, had boen commercially equal to the legal tender value assigned to tho new issue. In recoin mending that the regu lation of any silver eoinago which may be authorised by Congress should ob serve those conditions of commercial value and limited legal tondor, 1 am governed by the feeling that every pos sible increase should be given to the volume of metallic money which can be kept in circulation, and thereby every possible aid afforded to the people iii the process of resuming specie pay ments. It is because of my firm con viction that a desregard of these condi tions would frustrate the good results which are desired from tho proposed ooiuage, and embarrass with now ele ments of confusion and uncertainty the business of the country, that 1 urge upon your attention these considera tions.' I respectfully recommend to Congress that in any legislation pro viding for a silver coinage, and impart ing to it the quality of legal tender, there be impressed upon tne measure a firm provision exempting the public debt heretofore issued and now out standing, from payment either of prin cipal or interest, in any coinage of less commercial value than the present gold coinage of the country. TH K CIVIL SERVICE. The organization of tho civil service of the country has for a number of years attracted "more and more of the public attention. So general has become the opinion that the methods of admis sion to it and the conditions of remain ing in it are unsound, that both the great political -parties have agreed in the most explicit declarations of the necessity of reform and in the most emphatic demands for it. I have fnilv believed those declarations and demand: to lie the expression of a sincere con viction of the intelligent masses of the people upon the subject, and that they should be recognized and followed by earnest and prompt action on the part of the Legislative and Executive De partments of the Government in persu- ance of the purpose, indicated. lJefore my accession to oftlee I endeavored to have my own views distinctly under- stood, and upon my inauguration my accord with tlie public opinion was stated in terms believed to bo plain and unambiguous. My experience in the executive duties hasstTongly confirmed the belief in the great advantage the country would find in observingstrict ly the plan of the Constitution which imposes upon the Executive the sole duty and responsibility of the selection of these Federal officers who by law are appointed, not elected, and which, in stands as the public censor, of the per formance of official duties, with the prerogative of investigation and pros ecution in all cases of dereliction. The blemishes and imperfections in the civil service may, as I think, be traced in most cases to a practical confusion of the duties assigned tq the several departmeiiis* of the Government. My purpose in this re spect has been to-retum to the system established by the fundamental law', and to do tills with the heartiest co operation and most cordial understand ing with the Heniite and Honse of Rep resentatives. The practical difficulties in the selection of numerous officers for posts of widely varying tesposibili- ties and duties, are acknowledged to be very great. No system ewn be expect ed "to secure absolute freedom from mistakes, and the beginning of any at tempted chango of custom is quite like ly to bo more embarrassed in this re spect than any subsequent period. It is here that the Constitution seems to me to prove its claim to the great wis dom accorded it. "It gives to the Ex ecutive the assistance of the knowledge and experience of the Senate, which, when acting upon nominations as to w'liich they may be disinterested and impartial judges, seourea as strong a guaranty of freedom from errors of im portance as is perhaps possible in hu man affairs, in audition to this I recognize the public advantage of making all nominations as nearly as f iossiblo impersonal, in t,he sense of be- ng free from mere caprice or. favor in the selection, and in those offices in w'liich special training is of greatly in creased value I believe such a rule as to the tonure of office should obtain as may induce men of proper qualifica tions to apply themselves industriously to the taslt of becoming profficients. Bearing these things in mind, I have endeavored to reduce tlie number of changes in subordinate places usually made upon! ’ the change of tho General Administration, and shall most heartily co-oporato with Congress in the better systematizing of such methods and rules of admission to the public service, and of promotion within it, as may promise to be most successful in making thorough compe tency, efficiency and character the de cisive tests in these matters. I ask the renew'ed attention of Congress to what has already been done by the Civil Ser vice Commission, appointed in pursu ance of an act of Cougress by my pre decessor, to prepare and revise civil service rules. Iu ragard to much of Uie departmental service, especially at Washington, it may be difficult to or ganize a better system than that which lias thus been provided, and it is now' being used to a considerable extend un der my direction. The Commission lias still a logal existence, although for sev eral years no appropriation lias been made for defraying its expenses. Be lieving that this commission has ren dered valuable service, and wiil be a most useful agency in improving the administration of the civil service, I respectfully recommend a suitable ap propriation, to lie immediately availa ble, lie made to enable it to continue its labor. It is my purpose to transmit to Congress as early as practicable a re port liy the chairman of this commis sion, and to ask your attention to such measures on this subject as in my opin ion w'ili further promote tho improve ment of the civil service. has been deferred bv the occurrences on the Rio Grande border, the records of which have already been communi cated to each House of Congress in an swer to their respective resolutions of inquiry. Assurances have been received that the authorities at the scat of the Mexican Government have both the disposition and the power to prevent ami punish such unlawful invasions and depredations. It is earnestly to be hoped that events may prove these as surances to lie well founded. The best interests of both countries require the maintenance of peace upon tlie border and the development of commerce be tween the two Republics. It is grati fying to add that this* temporary inter ruption of official relations has not pre vented due attention by tlie represen tatives of the United States in Mexico to the protection of American citizens so far as practicable. Nor lias it inter- ferred with the prompt payment of the amounts due from Moxico to the United States under the treaty of July 4, 1888, and the awards of the Joint Commission. While I do not antici pate an interruption of friendly rela tions with Mexico, yet I cannot but look with some solicitude upon a con tinuance of border disorders as expos ing the two .countries to initiations of popular feeling and mischances of ac tion wiiicli are naturally unfavorable to complete amity. Firmly determined that nothing shall be w'anting on mj f part to promote a good understanding between the two nations, I yet must ask the attention of Congress to the actual occurrences on tho border that the lives and property of our citizens may be adequately protected and peace preserved. THE CUBAN INSURRECTION. Another year lias passed without bringing to a close the protracted con test iietween the Rpanish Government and tho insurrection in the Island of Cuba. While the United States have sedulously abstained from any inter vention in tills contest, it is impossible not to feel that it is attended with inci dents affecting tlie rights and interests of American citizens. Apart from the effect of tlie hostilities upon trade be tween tho United States and Cuba, their progress is inevitably accompanied by complaints having more or less found ation of searches, arrosts, embargoes and oppressive taxes upon the property of American residents, and of unpro voked interference of American vessels and commerce. It is due to the Government of Spain to say that during the past year it has promptly disavowed and offered repa ration for any unauthorized acts of un duly zealous subordinates whenever such acts have been brought to its at tention. Nevertheless such occurrences annot but tend to excite feelings of annoyance, suspicion and resentment w'liich arc greatly to be deprecated be tween tho respective subjects and citi zens of tw'o friendly pow r ers. Much delay (consequent upon accusations of fraud in Rome of tho awards) has oc curred in respect to the distribution of the limited amounts received from Venezuela under the treaty of April 25, 1808, applicable to tho awards of the joint commission created by that treaty. So long as these matters are pending in Congress, tho Executive cannot as sume either to pass upon the questions presented or to distribute the funds re ceived. It is eminently desirable that definito legislative action should be taken, either affirming the awards to be final or providing Home method for re examination of the claims. FOREIGN RELATIONS. During the past year tho United States have continued to maintain peaceful relations w ith foreign pow r ers. The outbreak of w ar between Russia and Turkey, though at one time attend ed by grave apprehension as to its ef fect upon other European nations, has had no tendency to disturb the amica ble relations existing between the United States and each of the tw’o con tending powers. An attitude of just and impartial neutrality baa been pre served, and I am gratified to state that in the midst of their hostilities, both the Russian and the Turkish Govern ments have shown an earnest disposi tion to adhere to the obligations of all treaties with the United States, and to givo duo regard to the rights of Ameri can citizens. By tho terms of the treaty defining tho rights, immunities and privileges of Consuls between Italy and tlie United States, ratified iu 1868; either Government may, after the lapse of ten years, terminate the existence of the treaty by giving twelve months' notice of* its intentions. The Govern ment of Italy, availing itself of this faculty, has now* given the required notice, and the treaty will accordingly end on the 17th of September, 1878. It is understood, however, -that the Ital ian Government wishes to renew' it in its general scope, desiring only certain modifications In some of its articles. In this disposition I concur, and shall hopo that no sorious obstacles may in tervene to prevent or delay the negotia tion of a satisfactory troaty. Nume rous questions in regard to passports, naturalization and exemption from military service have continued to arise in cases of emigrants from Germany w'ho have returned to their native country. The provisions of the treaty of February 22, 1868, however, have proved to be so ample and so judicious that tlie Legation of the United States at Berlin has boen able to adjust all claims arising under it, not only with out detriment to the amicable relations existing between the tw’o Govern ments, but, it is believed, without in jury or injustice to any duly natural ized Aiuericau citizen. It is desirable that tlie troaty originally made with tho North German Union in 1888 should now lie oxtonded so as to apply equally to all the States of the Empire of Ger many. Tlie invitation of the Government of Franco to participate in the Exposition of the products of agriculture, industry and the fine arts, to be held at Paris during the coming year, was submitted for your consideration at tlie extra ses sion. It is not doubted that its accept ance by tlie United States, and a well selected exhibition of tho products of American industry oil that occasion, will tend to stimulate international commerce and emigration, as well as to promote the traditional friendship be tween the two countries. A question arose some time since as to tho proper meaning of the extradi tion articles of the treaty of 1842, be tween tlie United States and Great Brit ain, Both Governments, however, are now in accord in the belief that the question is not one that should be al low cd to frustrate the ends of justice or to disturb tho friendship between tho tw o nations. No serious difficulty has arisen in accomplishing the extra dition of criminals w'lien necessary. It is probable that all points of disagree ment will in due time bo settled, and, if need be, more explicit declarations lie made in a new' treaty. The fishery commission, under articles 18 to 25 of the treaty of Washington, has conduct ed its session at Halifax. The result of the deliberations of the commission, as made public bvjthe Commissioners,will be communicated to Congress. A troaty for the protection of trade marks 1ms been negotiated with Great Britain, which has been submitted to the Senate for its consideration. RELATIONS W'lTH MEXICO. The revolution which recently oc curred iu Mexieo was followed by the accession of the successful party to power, and the installation of its chief, General Porfiro Diaz, in the Presiden tial office. It has been the custom of tho United States, when such changes of government have heretofore occurred in Mexico, to recognize and enter into official relations with the de facto Gov ernment as soon as it should appear to have the approval of the Mexican peo ple and should manifest a disposition to adhere to the obligations of treaties ami international friendship. In the preseut case such official recognition not only of our own country but nf other countries, to be easily collect*! without loss by undervaluation of frauds, and largely borne in the coin, try of production. A tax often cental sound on tea and two cents a pound on «?offee w'ould produce a revenue exceed 1 ing #12,000,000, and thus enable Con’, gress to repeal a multitude of annovinl taxes yielding a revenue not exceeding that sum. The internal revenue *vs. tem grew out of tho necessities of fill w’ar, and most of tlie legislation imp 0H . ing taxes upon domestic products un der this system has been repealed. By the substitution of a tax on tea and cof fee all forms of internal taxation may be repealed, except* that on whisky spirits, tobacco and beer. Attention ii also called to the necessity of exacting more vigorous law s for the protection of tho revenue and for tho punishment of frauds and smuggling. This can best be done by judicious provisions that will induce the disclosure of at tempted fraud by undervaluation and smuggling. All revenue laws should be simple in their provisions and easily understood. So far as practicable the rates of taxation should be in tho form of specific duties, anil not ad valorem— requiring tho judgment of experienced men to ascertain values, and exposing the revenue to the temptation of fraud. My attention has been called during the recess of Congress to abuses exist ing in the collection of the customs, anu strenuous efforts have been made for their correction by Executive or ders. The recommendations submitted to the Secretary of the Treasury by a commission appointed to examino into the collection of custom duties at the port of New York contain many sug gestions for the modification of tne cus • toms laws to which tlie attention of Congress is invited. THE PUBLIC FAITH. RELATIONS W'lTH CENTRAL AND SOUTH AMERICA AND SAMOA. Our relations with the Republics of Central ami South AmericA and with tlie Empire of Brazil continued without serious chango, further than the tempo rary interruption of diplomatic inter course with Venezuela and Guatemala. Amicable relations have already lieeu fully restored with Venezuela, and it is not doubted that all grounds of misun derstanding with Guatemala will speed ily bo romoved. From all these coun tries there are favorable indications of a disposition on the part of their Gov ernments and jieople to reciprocate our efforts in the direction of increased com mercial intercourse. Tlie Government of tho Samoan Islands has sent an en voy in the person of its Secretary of State to invito the Government or the United States to recognize and protect their independence, to establish com mercial relations with their people, and to assist them in their steps toward reg ulated and responsible government. The inhabitants of these islands having made considerable progress in Christian civilfttion and the development of trade are doubtful of their ability to maintain peace and independence without the aid of some stronger power. Tlie sub j ect is deemed worthy of respectful attention, and the claims upon our assistance by this distant community will be care fully considered. OUR FOREIGN TRADE. The long commercial depression in the United States has directed attention to the subject of tlie possible increase of our foreign trade and the methods for its development, not only with Eu rope but with other countries, and es pecially with tho States and sovereign ties of the Western hemisphere. Instruc tions from tho Department of State w’ero issued to various diplomatic and consular officers of tho Government asking them to devote attention to the question of methods by which trade between tho respective countries of their official residence and the United States could be most judiciously fos tered. In obedience to those instruc tions, examinations and reports upon this subject have been made by many of these officers and transmitted to tho department, and the same are submit ted to tlie consideration of Congress, REPORT OF THE SECRETARY OF THE TREASURY—REVENUE LAWS. The annual report of tho Secretary of the Treasury on tho state of the finan ces presents important questions for tho action of Congress, upon some of which I have alreadv remarked. The revenues of tho < iovornmeat during the fiscal year ending Juno 30,1877, were #280,000,586 62. The total expenditures for tho same period were #238,060,008 93, leaving a surplus revenue of #30,340,- 577 60. This has substantially supplied the requirements of the sinking fund for that year. Tho estimated revenues of the current fiscal year are #265,500,000, and tho estimated expenditures for the same period are #232,430,643 72. If these estimates prove to bo correct, thore will be a surplus revenue of #33,009,350 28, an amount nearly suffi cient for the sinking fund for thatvoar. The estimated revenues for the "next fiscal year are #269,250,000. It appears from the report that during the last fiscal year the revenues of the Govern ment, compared with tho previous year, have largely decreased. Tills de crease, amounting to the sum of #18,- 481,452 54, w'as mainly in custom du ties, caused partly bv a large falling off of the amount of Imported dutiable gooda, and partly by a large falling off of prices in tho markets of tlie produc tion of such articles as pay ad valorem taxes. While this is felt injuriously in the diminution of the revenues, it has boen accompanied with a very large increase of exportation. The total ex- f iorts during the last fiscal yettr, inclini ng coin, have been #658,637,457, and the imports have been #492,007,540, leaving a balance of trade in favor of the United States amounting to tlie sum of $166,539,917, the beneficial effects of which extends to all branches of busi ness. The estimated revenue for tho next fiscal year will impose upon Con gress the duty of strictly limiting ap propriations, including tlie requisite sum for the maintenance of the sinking fund—within the aggregate estimated receipts. While the aggregate of taxes should not be increased, amend ments might bo made to tho revenue lawra that w'ould, without diminishing the revenue, relieve the people from unnecessary burdens. A tax on tea and coffee is shown by the experience, tlie war, the public fatli with all creditors has been preserved, ,1 ‘"' this policy the j tlnuously advanced, anu um izuuul ncuun* ties are regarded with the highest fiivor in the markets of the world. I trust that no uct of the Government will cast a shadow upon its credit. The progress of refunding the public debt has been rapid and satisfac tory. Under the contract existing when I entered upon the discharge of tlie duties of my office, bonds bearing Interest at the rate of \]A per cent were being rapidly sold, and * within three months the aggregate sales of these bonds lmd reached tlie sum of #200.000,- such bonds was opened subscriptions were hail amounting to *75.496,550, which were paid for within ninety days after tlie date of subscription. By this process, within but little m,ore than one year the annual inter est on the public debt was reduced in the sum of *3,775,000. I recommend that suita ble provision be made to enable the people to easily convert their savings Into Govern ment securities ns the best mode In which small savings may be well secured and yield a moderate Interest. It Is an objeet of pub lic policy to retain among our own peoplo tho securities of the United States. In this by limits. COMMERCE OF THE UNITED STATES. The commerce of the United States with foreign nations, and especially the export of domestic productions, bus of late years lurgely increased, but tlie greater portion of this trade Is conducted In foreign vessels. Tho importance of enlarging our foreign trade, and especially by direct and speedy Interchange with countries on this conti nent, cannot be over estimated, and it is a matter of great moment that our own ship ping interest should receive to the utmost practical extent the bonotlt of our commerce with other lunds. These considerations ure forcibly urged by all the large commercial cities of the country, and public attention Is generally and wisely attracted to the so lution of the jiroblems they present, It is not doubted that. Congress will take them up in the broadest spirit of liberality and legislation upon this important subject. REPORT OF THE SECRETARY OF WAR. The report of the Secretary of War shows that the army has been actively employed during the year, and has rendered very im portant service in suppressing hostilities in tho Indian country and in preserving peace and protecting life and property In the interior, as well as along the Mexican border. A long and arduous campulgn has been proseeuted with final complete success against a portion of the Nez Perces tribe of Indians. A full account of this campaign will be found in the report of the General of the Army. It will be seen that in its course several severe buttles were fought, in which 3 Htates In July last rendered necessary mployment of a con * ’ 3 army to preserve tin tain order. IntheHtutes < __ r Maryland, Pennsylvania and Illinois These disturbances were so formidable us to defy the local and State authorities, and the Na tional Executive was called upon, In the mode provided by the Constitution and laws, to furnish military aid. I am grati fied to be able to state that the troops sent In response to these culls for aid in the sup- resslon of domestic violence w'oro able by lie influence of thoir presence in the dis turbed regions to preserve the peace and re store order without the use of force. In tho discharge of tills delicate and important both c “ duty 1 —ipoi officers und men acted with great iruuuiure and courage, and for their services eserve the thunks of the country. DISTURBANCES ON THE RIO GRANDE. Disturbances along tlie Rio Grande, in Texas, to which I have- already referred, have rendered necessary the constant em ployment of a military force In that vicinity. A full report of all recent military operations In that quarter lias been transmitted to tho House of Representatives in answer to a res olution of that body, and it will not therefore be necessary to enter into details. I regret to say that these lawless incursions Into our territory by armed bands from the Mexican side of the line for the purpose of robbery have been of frequent occurrence, and in spite of the most vigilant efforts of the com mundcrofour forces, the marauders have generally succeeded in escaping into Mexi eo with tlielr plunder. In May last, I gave orders for the exercise of the utmost vigi lance on the pnrt of our troops for tho sup pression of these raids and the punishment oi l lie guilty parties, as well as the recapture of property stolen by them. General Ord, commanding In Texas, was directed to invite the co-operation of the Mexican authorities in efforts to this end, and to assure them that I w’as anxious to avoid giving the least offense to Mexieo. At the same time he was directed to give notice of my determination to put an end tothe invasion of our territory by lawless hands, intent upon tho plunder of our peaceful citizens, even if the effect ual punishment of tlie outlaws should muke tin what these depredations, and that, with a considerable increase of our force upon that frontier, and the establishment of several additional military, posts along the Rio Grande, so ns more effectually to guard that extensive border, peace may be preserved and the lives and property of our citizens In Texas protected. Prior to the flint day of July last, the army was, in accordance with luw,reduced to the maximum of 25,000 en listed men, being a reduction of 2,500 below the force previously authorized. This re duction was made, as required by law, entirely from the Infantry and artillery branches of the service, without any reduc tion of the cavalry. Under the law, as it now stands, it is necessary that the cavalry regiments be recruited to one hundred men in each company for service on the Mexican and Indian frontiers. The necessary direct of this legislation Is to reduce the infantry and artillery arms of the service below tho number required for efficiency, and I concur with the Secretary of War in recommending that authority be given to recruit all com panies of infantry to at least fifty men, and all batteries of artillery to at least seventy- five men, with t he power in cose of emergen cy to increase the former to one hundred, and the latter to one hundred und twenty- two men. . SPECIAL RECOMMENDATIONS. I invite your special attention to the fol lowing recommendations of the Secretary of War: 1. That provision bo made for supplying to the army a more abundant and better supply of readlug matter. 2. That early act ion dc taken by Congress looking ton com plete revision and republication of the army regulations. 3. That section 1253 of the Revised statutes, limiting the number of officers of the retired list, be repealed. 4. That the claims arising under the uct of July 4,18<H, for supjilies taken by the army during the war, be taken from the offices of the Quartermaster and Commissary Gene rals and transferred to the Southern Claims Commission, or some other tribunal having more time and better facilities for their prompt investigation and decision than are possessed by these officers. 5. That Con- S ess provide for an annuity fund for the mines of deceased soldiers, as recom mended by the Paymaster General of tt>4 Army.