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W. ™ V MA t” VIIA I K,} Editors aud Proprietor*. NEWS OF THE WEEK WEST. Omaha wants Nebraska to move her capital from Lincoln. Chicago having promised to take pro per precautions against conflagrations, all the Hartford companies, except the Phconix, are again taking risks. The calaboose at Pontiac, 111., was burned, last week, and Frank and Samuel Danning, who were confined in it for indecent conduct, were burned to death. They were the sons of old and respected citizens. EAST. The long impending strike in the pot teries of Trenton, N. J., began on the 3d inst. The establishments of Yates, Benedict & Allen, and J. Moses closed. The employers guaranteeing work for the winter at a reduc tion of 10 per cent, in wages, the employes refused with the above result. One hundred women employed in a factory of the Now Brunswick rubber com pany have struck Rgainst a reduction of wa ges. They have been employed in stamping rubber shoes by hand. The company recently introduced machines for this work, and re duced the rates on piece work. As the women could only earn two-tliirda of their former wages, they struck. SOUTH. The steamboat Sabine, from Shreve port for New Orleans, with a cargo of cotton and a lot of sugar, struck a snag at Creole Bond, last week, and sunk in twenty feet wa ter. The boat will probably prove a total loss. The cotton wilt be saved in a damaged condi tion. Toe boat was valued at $15,000, and insured in New Orleans companies. A special to the Courier Journal says that three negroes were taken from jail by a band of masked men at Morganfield, Ivy., Tuesday night, and hanged to trees, near town. Uniontown. in the same county, was visited by a destructive five some weeks since, and these negroes had been arrested and charged with starting the conflagration. They afterwards confessed the crime, giving as an excuse that the proprietor of the uistillery in which it was started had turned the mother of one of the negroes out of one of the houses in which she was living. The “regu lators" were mounted and are thought to have come from Uniontown. The Memphis cotton exchange crop report for November gives the following sum mary, derived from 107 responses from West Tennessee, North Mississippi, and Arkansas, north of Arkansas river: Sixty-four report damaged by frost; forty throe no damage. The average damage by frost is three aud one half per cent. The average decrease in acre age is one and ono-half per cent. Due exer tions have been and are being made to save the crop. The average closing picking season last year was January 14. This year it will close about December 7. The crop is being marketed unprecedentedly fast. The com crop of this district is about thirty-two per cent, short of the average of the past two seasons. The aggregate of responses docs not indicate any change in the morale of laborers. The prospect is that the entire crop will be saved in better condition than ever known. The committee are of opinion that the decrease of the cotton crop in this district from last year, will be about thirty-five per •ent. The executive committee of the Mis souri state Grange, which has been in session at Bt. Lolling, adjourned last week after the transaction of considerable business apper taining to the order. They also adopted a se ries of resolutions approving the efforts now being made by the citizens of St. Louis to open direct trade between the Mississippi valley states and Brazil by a steamship hue from New Orleans and Arkansas, the farmers of the valley states to aid in supporting the enterprise. They recommend the farmors of Missouri and the other valley states to make every effort to induce shipments down the Mississippi river, instead of by rail to the east, and assert it is the policy and imperative duty of the farmers to patronize western and southern railroads in preference to feeding eastern roads and capitalists. They also re commend to the granges of the valley states to adopt resolutions requesting their represen tatives and senators in congress to give such support as they can to Capt. Jas. B. Eads’ jetty plan for the immediate improvement of the mouth* of the Mississippi river. In the cheap transportation convention now in session at Richmond, Va., a bill pre pared by Gen. Duff Greene, of Georgia, pro viding for the inauguration of a scheme of internal improvements to be sustained by a Bystem of banking connected therewith, was presented and referred. M. B. Lloyd, of Illi nois. presented his views as to the construc tion of a double track trunk railway by the government, to secure competition in the transportation of freights. Gon. Forbel. of Georgia, presented a resolution looking to the establishment aud maintenance of commercial intercourse between the states of the union, to revive the commerce of the nation. The oommittee on resolutions presented a report based upon a resolution of Col. Johnson, of North Carolina, in which they declare in favor of asking the government to aid in the con struction of the Southern Pacific railroad, and of the great water lines, such aid to convey to the government the right to control the rates of transportation over such lines, with a proviso that the government guarantees asked shall be so guarded as to protect the national treasury from Joss. Pour members of the committee presented & protest against the adoption of the report, and against asking the government to aid in the construction of xailroads. foreign. A KiDgstoD, Jamaica, letter puts the damage to that islav.d by the typhoon of Nov Ist, at $350,000. Spain has appointed a board of com missioners, with Catelar as its president, to represent that country at our centennial expo sition. Capt. Geo. S. Naree, now in command of her majesty's ship Challenger, has been selected to command the expedition to be fit ted ont by Great Britain, for explorations in the Arctic regions. The Spanish coastiug steamer Thomas Brooks, from Santiago de Cuba for Fuantamo, struck on the morning of the 3d, on the Mo ril'.o near Gusntamo, and sunk immediately. About thirty lives were lost. It is known, in diplomatic circles, that Spain has paid to Great Britain \ly part of toe indemnity on account of the Virginms affair, leaving the remainder and other ques tions to be hereafter adjusted. The inspector general of the army, in Ids annual report, says a regulation is much needed, inflicting punishment on soldiers who marry without proper permission. Military posts are overran with the wives of the en listed men; and it is well known that it re quires abont as much transportation to move four laundresses as it does to move a whole company of men. A Barlin dispatch says that Knssia contemplates the reassembling next March, id St. Petersburg, of the international conference lately held iu Brussels. Exertions will proba bly be made to secure the consent of Great Britain and some minor states. The work of the conference will be confined to the enact ment of the more purely philanthropic clauses of the programme proposed by Russia. If these endeavors fail, the three northern pow ers may probably settle the matter alone. The message of President MacMahon delivered to thG assembly last week. He rava tu&t order has been maintained through out the country. Relations with foreign gov ernments are on an excellent footing ; no for- power doubts her desire to maintain THE STANDARD AND EXPRESS. pacific relations with all nations. The finan cial condition of the country has improved at home, thanks to a good harvest. The exfort trade has never been so considerable as dur ing the last four months. Everything now favors the expectation that these most satis factory results will be at least equaled in 1875. The president insists strongly on the necessity of definite legislation with regard to the con stitutional powers, and continues as follows: “ Incessantly agitated by a progaganda of the most pernicious doctrine, the country asks you to guarantee, by measures, the action of the public powers during the period of stability which you promised France.” The steamer La Plata, from Gravesend 1 for Rio Grande del Sud, chartered by Siemens | Bros, to repair the telegraph cable, foundered off Galiant, on the 29th of November. Sixty persons were drowned. Fourteen survivors were rescued by the Gareloch, cf Glasgow. The loss of the ship is attributed to the shift ing of the grappling apparatus. Of 250 mileß of telegraph cable on board, 150 had been paid out, which had to be abandoned. Unavailing attempts were made to save the vessel by lightening. The captain, surgeon, three other officers, the engineer, seven stewards and cooks, eleven stokers, fourteen seamen and the whole of the cable staff, numbering six teen, and including Mr. Ricketts, the chief electrician, were drowned. The chief steward, wlie was eaved, reports that the fires were all out by ten o’clock on the morning of the 29th. A heavy sea carried away two of the boats and the ship gradually settled by the stern. At 12:30 p. m. she foundered, stem first. The captain and doctor were on the bridge, having failed to clear the patent life-raft, and went down with the crew. The steamer Vancouver has arrived with late news from China and Japan. The Formosa quarrel has been settled, China con. ceding everything required by Japan. The latter government has already determined to return a part, if not the whole, indemnity money. They required it only as an unmis takable acknowledgement of the propriety of their action. That having been vindicated, they are disinclined to keep the money. There is general complaint against the United States’ consul at New Chang for having sentenced a pilot named Holaday, convicted of a murder ous assault on the Chineee women, to only fourteen days’ imprisonment. The subject of supplying prostitutes for San Francisco at tracts much attention in Hong Kong. Meat ures are under consideration to prevent future departures from that place. Several cases of girls seeking release were recently before the courts. By a heavy typhoon on October 12, many Japanese villages were greatly injured, and one entirely destroyed. Thirty-three junks were wrecked and two hundred lives lost. In view of the recent expectations of war, public' expenses are reduced in various ways. The Mikado and members of the im perial family have renounced part of their in comes. Numerous employes have requested a reduction of their salaries, and even the scholars in the national academies have peti tioned that the amount allowed for their edu cation be temporarily reduced. MISCELLANEOUS. The number of emigrants who landed at Castle Garden from Jan. 1 to Dec. 1 of the present year, was 145,362, showing a heavy decrease. The secretary of the treasury, this afternoon, tendered the position cf supervising architect of the treasury; to John McArthur, Jr., of Philadelphia. The postmaster-general has issued an order forbidding letter carriers to distribute New Year’s addresses calculated to induce the public to make them gifts. Proceedings have been instituted against ltev. Dr. Talmadge, of Brooklyn, by B. C. Mitchell, on the charge of slander. Mitchell was for a number of years a promi nent member of Talmadge’s church, and was expelled on the testimony of the pastor, who charged him with conduct unbecoming Chris tians. The damages are laid at $5,000. The flow of currency from New York to the west averages about $2,000,000 a day. Cincinnati and Chicago are paying out SBOO,- 000 a day for hogs, all of which passes imme diately into the regular channels of trade. Business of all kinds must soon begin to feel the effects of this healthy stimulus. Mean while the fact that money is easy and interest low in New York, notwithstanding the large efflux of currency from that city, is a signifi cant feature of the financial situation. It appears from the market review of the Courier-Journal that 190,558 hogs have been marketed at Louisville during the mouth just closed, and 175,748 packed, against 105,- 000 in November of last year. The matket value of the hogs packed during the month waß about $3,500,000. The latest returns from the principal packing centres of the west show that a larger business has been done in Louis ville than in any other city, except Chicago, although last season Louisville was ranked by five other points. The protest r. gainst the proposed reci procity treaty with Canada is about to be is sued by the national wool growers association. The document, which is Bigned by Hon. Honry S. Randall, president, dirocts attention to the counsel given by Gen. Washington to avoid political alliances in extending its commercial relations of the country, and states that the people of Canada now contribute about six million dollars in gold paid for duties. The treaty would surrender this sum and add it to our overweighed industries aud make Canada a thoroughfare for smuggling for all the world. The chief of the bureau of ordnance, in his annual report, recommends the rearma ment of the navy with breech-loading rifled cannon, which can be had at a very small cost, in view of the reduced number of guns re quired. The present types of foreign armed cruising ships carry to 6 inches of armor, and at present we have no guns, except the 15-inch, in the monitors, which would seriously injure the lightest of these armored vessels. Substitute a 7 or 8-inch rifle for the 11-inch smooth bore, which even our smallest ships carry, and few of them would come off with out great damage. The house appropriation committee have disposed of the army bill. This bill ap propriates the same amount as last year, and makes a considerable reduction from the esti mates. The secretary of war sent in estimates for a force of thirty thousand men. notwith standing the fact that congress last winter directed the reduction of the force to twenty five thousand. He evidently considered the reduction as temporary, while the committee consider it as permanent, and have fixed the appropriation for next year on that basis. The present number of the force is twenty-seven thousand, but a large number of enlisted men isoon to be discharged will bring the numb-r down to twenty-five thoueand, as directed last session. The supreme court of the United States has just rendered a decision in which for the first time the question of the power of the confederate government to make a valid contract has been adjudicated. The plaintiff had knowingly purchased cotton of an agent of the Confederate States. The cotton was subsequently seized bv the United States and their proceeds covered into the treasury. Plaintiff brought suit in the court of claims to recover. This court rejected the claim. The supreme court affirms this decision of the court of claims cn two grounds: 1. Because the purchase of the cotton and the payment of the consideration necessarily tended to give aid to the rebellion, and that all such contracts are void as contrary to public policy. This was concurred in by the whole court. 2. Be cause the so-called government of the Confed erate States had no existence except as a con spiracy to overthrow lawful authority. In support of this second position of the court, the chief justice and six associate justices concur. Two—Mr. Justice Clifford and Mr. Justice Davis—dissent on the ground that its announcement was not necessary to the decis on of this case. PRffillll'nMlSSAGE. To the Senate and House of Repre sentatives: Since the convening of congress one year ago, the nation has undergone a prostration in business and industries such as has not been witnessed with us for many years. Speculation as to the causes for this prostration might be in dulged in, without profit, because as many theories would be advanced as there would be independent writers, those who expressed their own views without a bearing upon the subject. Without indulging in theories as to the cause of this prostration, I will only call your attention to the fact, and to one question as to which it would seem there should be no disagreement. Dur ng this prostration TWO ESSENTIAL ELEMENTS of prosperity have been most abundant —labor and capital. Both have been largely unemployed. Where the se curity has been undoubted, capital has been attainable at very moderate rates. Where labor has been wanted, it has been found in abundance at cheap rates compared with what of the necessities and comforts of life should be pur chased with the wages demanded. Two great elements of prosperity, therefore, have not been denied us. A. third might be added. Our soil and climate are unequaled within the limits of any contiguous territory, under one nation ality, for its varieties of products to feed and clothe a people, and in the amount of surplus to spare to feed less favored people. Therefore, with these facts in view, it seems to me that wise statesmanship at this session of con gress would dictate ignoring the past, and directing in proper channels these great elements of prosperity to any people. Our debt abroad is the only element that can, with always a sound currency, enter into our affairs to cause any continued depression in the indus tries and prosperity of our people. ORIGIN OP GREENBACKS. A great conflict for national existence made necessary for temporary purposes is the raising of a large sum of money from whatever source attainable. It may have been necessary in the wisdom of congress, aiffl I do not doubt their wisdom in the premises regarding the necessity of the times, to devise a sys tem of currency, which it proved to be impossible to keep on a par with the recognized currency of the civilized world. This begat a spirit of specula tion, involving an extravagance and lux ury not required for the happiness or prosperity of a people, and involving both directly and indirectly foreign in debtedness. This currency being of a fluctuating value and, therefore, unsafe to hold for legitimate transactions re quiring money, became a subject of speculation in itself. These two causes, however, have in volved us in a foreign indebtedness, contracted in good faith by borrower and lender, which should be paid in coin, and according to the bond agreed upon when the debt was contracted, gold or its equivalent. The good faith of the government cannot be violated toward creditors without national dis grace. Our commerce should be en couraged, American shipbuilding and carrying increased, and foreign markets sought for the products of the soil and manufactures, to the end that we may be able to pay these debts. Where a market can be created for the sale of our products, either of the soil, the mine or the manufactory, anew means is discovered of utilizing our idle capi tal and labor, to the advantage of the whole people. GOLD SEEKS ITS LEVEL. In my judgment the first step to ward this object is to secure a carrency good wherever civilization reigns, one which, if it becomes superabundant with one people, will fiud a market with some other ; a currency which has as its basis the labor necessary to produce it, which will give it value. Gold and silver are now the recognized medium of exchange the world over, and to this we should return with the least prac ticable delay. In view of the pledges of the American congress when our present legal tender system was adopted and debt contracted, there should be no delay, oertainly no unnecessary de lay, in fixing by legislation a method by which we will return to specie. To the accomplishment of this end I invite your special attention. I believe firmly that there can be no prosperous and permanent revival of business and in dustries until a policy is adopted, with legislation to carry it out, looking to a return to the specie basis. THE DEBTOR CLASS. It is easy to conceive that the debtor and speculative classes may think it of value to them to make so called money abundant, until they can throw a por tion of their burdens on others. But even these, I believe, would be disap pointed in the result, if a oourse should be pursued which will keep in doubt the value of the legal tender medium of exchange, and delay the revival of pro ductive industries needed by all classes, by none more than by the holders of property, of whatever sort, with debts to liquidate for realization upon its sales. But admitting that these two classes of citizens are to be benefitted by expansion, would it be honest to give it ? Would not the general loss be too great to justify such relief ? Would it not be as honest and prudent to au thorize each debtor to issue his own legal tenders to the extent of his liabili ties? Than to do this would it not be safer, for fear of over-issues by unscru pulous debtors, to say that all debt ob ligations are obliterated in the United States, and now we commence anew, each possessing all he has at the time free from incumbrance? DEL VS DISHONEST, These propositions are too absurd to be entertained for a moment by a think ing people. Every delay in the pre paration lor final resumption partakes of this dishonesty, and is only less in degree as the hr pe is held out that a convenient season will at last arrive for the good work of redeeming our pledges to commerce. It will never come, in my opinion, except by positive action by congress, or by national disasters, which will destroy for a time at least, the credit of individuals and the state at large, when a sound currency would be reached by total bankruptcy of the credit and integrity of the nation and individuals. I believe it is in the pow er of congress at this session, to devise such legislation as will re store confidence, revive all the indus tries, start us on the career of prosperity, and to save the credit of the nation and the people. Steps toward the return to a specie basis, are steps to this end devoutly to be sought for, and there are others which I may touch on hereafter. A B ONUS TO FOREIGNERS. A nation dealing in a currency below that of specie in value, labors under two great advantages : First, having no use for the world’s acknowledged medium of exchange, gold and silver, these are driven out of the country because there is no demand for their use. Secondly, the medium of exchange being of a fluetating value, for it is only worth just what it will purchase of gold and silver metals, having an intrinsic valne just in proportion to the honest labor it takes to produce them, a large margin must be allowed for a profit by the manufacturer and produ cer. In the months from the date of production to the date of realization, interest upon capital must be oharged, and the risk of dnetation in the value of that which is to be reoeived in pay CARTERSVILLE, GEORGIA, WEDNESDAY DECEMBER 16. 1874. ment added. Hence high prices act as a protection to the foreign producer, who receives nothing in exchange for the product of his skill and labor, except a currency good at a stable value the world over. THE POOR MAN BEARS THE BRUNT. It seems to me that nothing is clearer than that the greater part of the burden of the existing prostration, for the want of a sound financial system, falls upon the workingman, who must, after all, produce the wealth, and the salaried man who superintends and conducts the business. The burden falls upon them in two ways : By the deprivation of employment, and by the decreased pur chasing power of their salaries. It is the duty of oongresa to devise the method of correcting the evils which are acknowledged to exist, and not mine. But I will venture to suggest two or three things which seem to me as absolutely necessary to a return to specie payments. REPEAL OF THE LEGAL TENDER CLAUSE URGED, The first great requisite in a return to prosperity is, that the legal tender clause to the law authorizing the issue of currency by the national government, should'be repealed, to take effect, as to all contracts entered into afte> a day fixed in the repealing act, not to apply, however, to the payments of salaries by the government, or other expenses now provided by law to be paid in currency. In the interval and pending between re peal and final resumption, provision should be made by which the secretary of the treasury can obtain gold as it may become necessary, from time to time, from the date when specie resump tion commenced. To this might and should be added a revenue sufficiently in excess of expenses to insure an accu mulation of gold in the treasury to sus tain redemption. I commend this sub ject to your careful consideration, be lieving that a favorable solution is at tainable, and that if reached by this oongresa, present and future generations will ever gratefully remember it as their deliverer from a thraldom of toil and disgrace. FREE BANKING ESSENTIAL. With resumption free banking may be authorized with safety, giving full pro tection to bill-holders which they have under existing laws. Indeed, I would regard free banking essential. It would give proper elasticity to the currency. As more currency should be required for the transaction of legitimate busi ness, new banks would be started and in turn banks would wind up their busi ness when it was found there was a su perabundance of currency. The expe rience and judgment of the people can best decide just how much currency is required for the transaction of the busi ness of the country. It is unsafe to leave the settlement of this question to congress, the secretary of the treasury or the executive. Congress should make the regulation under which banks may exist, but should not make banking a monopoly by limiting the amount of redeemable paper currency that shall be authorized. Such importance do I at tach to this subject and so earnestly do I commend it to your attention, that I give it prominence by introducing it at the beginning of this message. OUR FOREIGN RELATIONS. During the past year nothing has oc cuired to disturb the geueral, friendly and cordial relations of the United States with other powers. The corres pondence submitted herewith between this government and its diplomatic rep resentatives in other countries, show a satisfactory condition of all questions between the United States and the most of those countries, and, with a few ex ceptions, to which reference is hereafter made, the absence of any points of dif ference to be adjusted. BELGIUM. The notice directed by the resolution of congress of June 18, 1874, to be given to terminate the convention of July 17,1858, between the United States and Belgium, has been given, and the treaty will accordingly terminate on the first day of July, 1875. This conven tion secured to certain Belgium vessels entering the ports of the United States, exceptional privileges which are not ao corded to our own vessels. Other feat ures of the convention have proved sat isfactory, and have tended to the culti vation of the mutually beneficial com mercial intercourse aud friendly rela tions between the two countries. I hope that the negotiations which have been instituted will result in the celebrating of another treaty which may tend to the interests of both countries. CHINA. Our relations with China continue to be friendly. During the past year fear of hostilities between China and Japan, growing out of the landing of an armed force upon the island of Formosa by the latter, has occasioned uneasiness. It is earnestly hoped, however, the dif ficulties arising from this cause will be adjusted, and that the advance of civili zation in those empires may not be re tarded by a state of war. In consequence of the part taken by certain citizens of the United States in this expedition, our representatives in those countries have been instructed to impress upon the governments of China and Japan the firm intention of this country to maintain strict neutrality in the event of hostilities, and carefully prevent any infraction of law on the part of our citizens. ah-sin: In connection with this subject, I call the attention of congress to a generally known fact that the great proportion of Chinese emigrants who come to our shores do not come voluntarily to make their homes with us '•and their labor productive of the general prosperity, but come under contract with head men, who own them almost absolutely. In a worse form does this apply to the Chi nese women. Hardly a perceptible percentage of them perform any honor able labor, but they are brought here for shameful purposos, to the disgrace of the communities where they settle, and to the great demoralization of the youth of these local ties. If this bad practice can be legislated against, it will be my pleasure as well as my duty, to enforce any regulation to secure so desirable an end. japan. It is hoped that negotiations between the government of Japan and other powers, looking to the farther opening of the and the removal of va rious restrictions upon trade and travel, may soon produce the results desired, which cannot fail to enure to the bene fit of all parties. Having on previous occasions, sub mitted to the consideration of oongress, the propriety of the release of the Japanese government from farther pay ment of the indemnity and the conven tion of Oct. 22, 1864, under as no action had been taken therein, it became my duty to regard the obligation of the convention as in force, and as the other powers interested have received their portion of the indemnity in full, the minister of the United Stated has been notified and this government received the remainder due to the United States under the convention of Simonsky. I submit the propriety of applying the income of a part, if not the whole of the fund, to the education, in the Jap anese language, of a number of young men, to be under obligations to serve the government for a specified time aa interpreters at the legation and the consulates at Japan. A limited num ber of Japanese youths might, at the same time, be educated in our vernacu lar, and would result in benefit to both governments. The importance of hav ing our citizens competent and familiar with the language of Japan, to act as interpreters and in other capacities con nected with the legation and consulate in that country, cannot be readily over estimated. JgREAT BRITAIN. The amount awarded to the govern ment of Great Britain by iha mixed commission organized under the acts of the treatise of Washington, in settle ment of the claims of British subjects arising from acts committed between April 18, 1841, and April 9, 1865, be came practicable under the terms of the treaty within the past year, and was nnid upon the 21st day of September. 1874. OTHER CLAIMS AGAINST US. In this connection I renew my recom mendation made at the opening of the last session of congress, that a special court be created to hear and determine all claims of aliens against the Untied States arising from acts committed against their persons or property during the insurrection. It appv-*-g equitable that an opportunity should be offered for the persons of other states to pre sent their claims as well as to those British subjects whose claims were not admissably under the late commission, to the early decision of a competent tribunal, and I rroommend the necessa ry legislation to organize a court to dis pose of those claims of aliens who are referred to, in an equitable and satis factory manner, and to relieve congress and the departments from the consider ation of these questions. THE FISHERIES. The legislation necessary to extend to the fisheries of New Foundland certain articles of the treatv of Washington of Bth day of May, 1871, having been had, a protocol to that effect was suggested in behalf of the United States and Great Britian on the 28th day of May last, and was duly proclaimed on the following day. A copy of the procla mation is submitted herewith. OUR NORTHWESTERN BOUNDARY. A copy of the report of the commis sion appointed under the act of March 19, 1872, for surveying and making the boundary between the United States and the British possessions, from the Lake of the Woods to the summit of the Rocky Mountains, is herewith transmitted. lam happy to announce that the field work of commission has been completed, and the entire line from the northwest comer of the Lake of the Woods to the summit of the Rocky Mountains has been run and marked upon the surface of the earth. It is believed that the amount remain ing unexpended of the appropriation made at the last sessidn of congress will be sufficient to complete the work. I recommend that the authority of con gress be given for the use of the unex pended balance of the appropriation in the completion of tne work of the com mission and making a report and print ing the necessary map. AMERICAN CLAIMANTS OF DAMAGES BY THE ALABAMA. The court known as the court of com missioners of Alabama claims, created by an act of congress at the last session, has organized and commenced its work, and it is to be hoped that the claims ad missable under the provisions of the act may be speedily’administered. TURKEY. It has been deemed advisable to ex ercise the discretion conferred upon the executive, at last session, by accepting the conditions required by the govern ment of Turkey for the privilege of allowing the citizens of the United States to hold real estate in the former oountry, and by assenting to a certain change of the j urisdiotion of the courts in the latter. A copy of the proclama tion upon these subjects is herewith communicated. SPANISH AMERICA. There has been no material change in our relations with the independent states on this heihisphere, which were formerly under the dominance of Spain. Marauding on the frontiers, between Mexico and Texas, still frequently takes place, despite the vigilanoe of the civil and military authorities in that quarter. The difficulty of checking suoh trepasses along the course cf a river of such length as the Rio Grande, and so often fordable, is obvious. It is hoped that the effort of this government will be seconded by those of Mexico to the effectual suppression of aotß of wrong. MEXICAN CLAIMS. From a report upon the condition of the business before the American and Mexican joint claims commission, made by the agent of the United States, and dated Oot. 28, 1874, it appears that of the 1,107 claims filed on the part of the citizens of the United States, 483 had been finally decided, and 75 were in the hands of the umpire, leaving 460 to be disposed of; and of the 998 claims filed against the United States, 726 had been finally decided on, one was before the umpire, and 271 remain to be dis posed of. Since the date of each re port, other claims have been disposed of, reducing somewhat the number still pending, and others have been passed upon by the arbitrators. It has become apparent, in view of these figures and of the fact that the work devolving on the umpire is particularly laborious, the commission would be unable to dis pose of the entire number of claims pending prior to the first day of Febru aty, 1875, the date fixed for the expira tion, negotiations are pending looking to the securing of the results of the decisions which have been received and to a further extension of the commis sion for a limited time, which it is con fidently hoped will suffice to bring all the business now before it to a final close. ARGENTINE. The strife in the Argentine republic is to be deplored, both on account of the parties thereto and from the probable effects on the interests of those in the trade in that quarter, of whom the Uoi ted States are among the principal. As yet, so far as I am aware, there has been no violation of our neutrality rights, which, as well as our duties in that res pect, it shall be my endeavor to main tain and observe. VENEZUELA. It is with regret that I announce that no further payment has been received from the government of Venezuela on account of awards in favor of the citi zens of the United States. Hopes have been entertained that, if the republic could escape both foreign and civil war for a few years, its great natural re sources would enable it to honor its ob ligations. Though it is now understood to be at peace with other countries, a serious insurrection is reported to lie in progress in an important region of that republio. This may be taken advan tage of as another reason to delay the payment of the dues of our citizens. ÜBA. The deplorable strife in Cuba contin ues without any marked change in the relative advantages of the contending forces. The insurrection continues, but Spain has gained no superiority. Six years of strife give the insurrection a significance which cannot be denied. Its duration and the tenacity of its ad herents, together with the absence of a manifesto i power of suppression on the part of Spain, cannot be controverted, and may make some positive steps on the part of the other powers a matter of self-necessity. SPAIN. I had confidently hoped at this time to be able to announce the arrangement of some of the important questions be- tween this government and that of Spain, tint the negotiations have been protracted.. The unhappy internal dis sension! of Spain command our pro found sympathy and must be accepted as per hi ps a cause of some delay. An early se tlement, in part at least, of the questiors between the governments is hoped. In the meantime awaiting the results t f immediately pending negoti ations, 1 defer a further and full com municat on on the subject of the rela tions of this oountry and Spain. THE RIGHT OF EXPATRIATION. I have again to call the attention of oongresfi to the unsatisfactory condition of the existing laws in reference to expa triation and the eleotion of nationality. Formerly, amid conflicting opinions and decisions, it was difficlut to exactly de termine how far the doctrine of perpet ual allegiance was applicable to citizens of the United States. Congress by the act of the 29th of July, 1868, asserted the abstract right of expatriation as a fundamental principle of the govern ment. Notwithstanding such assertion and tb© necessity of frequent applica tion of the principle, ho legislation has been ha< . defining what acts or formali ties shal 1 work expatriation, or when a citizen snail be deemed to have renoun ced or to have lost his citizenship. The importance of such definition isobvious. The representatives of the United States in foreign countries are continually called upon to lend their aid and the protection of the United States to per- sons cod corning the good faith or the reality of whose citizenship there is at least great question. In some cases the provisions of the treaties furnish some guide. In others, it seems left to the persons claiming the benefit of citizen ship while living in a foreign country, contributing in no manner to the per formanco of the obligations and duties of a citizen of the United States, simply as a shield from the performance of the obligations of a citizen elsewhere. The status of ohildren born of Ameri can parents residing in a for eign country, of American women who have married aliens, and of American citizens reaid id g abroad, where such question is not regulated by treaty, aro all sources of frequent, difficult discussion. Legislation on these and smaller questions, and particularly de fining when and under what circum stances expatriation can be accomplish ed or is to be presumed, is especially needed. FRAUDULENT NATURALIZATION. In this connection I earnestly call the atten tion of congress to the difficulties arising from fraudulent naturalization. The United States wisely, freely and liberally offers its citizens help, to all who may come in good faith to re side within its limits, on the complying with certain prescribed, reasonable and simple formalities and conditions. Among the high est duties of the government is that to afford a firm, officer t ana equal protection to all its citizens, ivhe her native bom or naturalized. Care should be taken that a right, carrying with it such support from the government, should not be fraudulently obtained, and should be bestowed only upon full proof of a compliance with the law, and there are fre quent instances of illegal aud fraudulent nat uralization, and of the unauthorized use of certificates thus improperly obtained. In some cases the fraudulent character of naturaliza tion has appeared upon the face of the certifi cate itself. In others, examination discloses that the holder had not complied with the law, and in ot hers the certificates have been obtain ed where the persons holding them not only were not enti led to be naturalized, hut had not been within the United States at the time of the pretended naturalization. Instances of each of those classes of fraud are discovered at our leg islations where the certificates of nat uralization ars presented, either for the pur pose of obtaining passports, or in demanding the protection of the legation. When the fraud is entirely apparent cn the face of suclx certificates, they are taken up by the repre sentatives of the government, anil forwai-ded to the department of state. But even the record of the court in which the fraudulent naturalizatioi occured, remains, and duplicate certificates ate readily obtainable. Upon the presentation of these for the issue of pass ports or demanding the protection of the gov ernment, the fraud sometitfcs escapes notice, aud such ceitifieates are not unfrequently used in the transaction of business, to the in jury of innocent parties. Without placing avxy additional obstacle in the way of the obtain ment of citizenship, by the worthy and well intentioned foreigner, who comes in good faith, I nevertheless earnestly recommend further legislation to punish fraudulent nat uialization, aid to secure the ready cancella tion of the record of every naturalization made in fraud. EXTRADITION. Since my last annual message, the exchange has been made of the ratification of treaties of extradition! with Belgium, Ecquador, Peru and San Salv.tdor; also of a treaty of com merce and navigation with Pern, and one of commerce and consular privileges with San Salvador, all of which have been duly pro claimed, as has also a declaration with Russia with reference to ti-ade marks. TKE FEDERAL TREASURY. The report of the secretary of the treasury, which, by law, [is made directly to congress, and forms no part of this message, will shew the receipt* i.nd expenditures of the govern ment for the last fiscal year, the amount re ceive and from each source of revenue, and the amount paid out for each of the departments of the government. It will be observed from this report that the amount of receipts over expedituies has been but $2,344,882.30 for the fiscal yea:-ending June 30, 1874, and that for the current fiscal year the estimated receipts over expenditures will not exceed $9,0t)0,0u0. THE SINKING FUND BEHIND. In view of the large national debt existing and the obligation to add one per cent, per annum to the sinking fund, a sum amounting now to over $34,000,000 per annum, I submit whether the revenues should not be increased or the expenditures diminished to reach this amount of surplus. Not to provide for the sinking fund is a partial failure to comply with the contracts and obligations of the govern ment. At the last session of congress a very considerable '.'eduction was made in the rate of taxation and in the number of articles sub mitted to taxation; the question may well be asked whether or not in some instances un wisely. In connection with this subject too, the opinion is that the means of collecting the revenues, especially from imports, have been embarrass ad by legislation as to make it ques tionable whether er not large amounts are not lost by failure to collect, to the direct loss of the treasury and to the prejudice of the in terests of ho nest importers and tax-payers. Bristow’s recommendations. The secretary of the treasury, in his report, favors leg:elation looking to specie payments, thus sup|>orung the views previously ex pressed in this message. He also recommends economy in the appropriations, and calls at tention to the loss of revenue from repealing the tax or. ten and coffee without benefit to the consumer He recommends an increase of 80 centß a gallon on whisky; and further, that no modification should become necessary by rea son of the adoption of measures for returning to specie payments. In these recommend a-* tions I co dially concur. the tariff. I would suggest to congress the propriety of readjusting ho tariff so as to increase the revenue and at the same time decrease the number of articles upon which duties are levied. Those articles which enter into our manufactures and are not produced at home, it seems to me, should be entered free. On those articles of manufacture which we produce a constitue .it pars of, but do not produce the whole, that part which we do not produce should enter free also. I will instance fine wool dyes, etc. Th9se must be imported to form a part of the manufacture of the higher grades of wool goods, Chemicals used as dyes, compounded in medicines, and used is various ways in manufactures, come under this clast;. The introduction, free of dues, of such wools as we do produce should stimulate the manufacture of goods requiring the use of those we do uot produce, and. therefore, conld be a benefit to home production. There are many articles entering into home manufac tures wh: eh ive do uot produce ourselves, the tariff on vhi ih increases the cost of producing the manufactured article. All corrections in this regiird we in the direction of bringing labor un<: capital in harmony with each other, and of supplying one of the elements much needed. THE ARMT. The report of the secretary of war, herewith attached, and forming a part of this message, gives all the information concerning all the operations, wants and necessities, and con tains ma iy suggestions and recommendations which I :;ommend to your special attention. There is uoc aes of government employees who are harder worked than the army officers and meD, none who perform their tasks more cheerfully and more efficiently, and under cir cumstances of greater privation and hardships. Legislation is desired to render more efficient this branch of the public service. All the re commendations of the secretary of war I re gal'd as jad .cions, and I especially commend I to your ti Mention the following : BELKNAP’S RECOMMENDATIONS. The consolidation of government arsenals : mileage to officers traveling under orders; the exemption of money received from the sale of subsistence stores from being converted into the treasury; the use of appropriations for the purpose of subsistence stores, without waiting for the beginning of the fiscal veax* for which the appropriation is made; for addition al appropriations for the collection of torpedo material; for increased appropriations for the manufacture of arms; for relieving the vari ous states for indebtedness for arms charged to them during the rebellion; for dropping officers fi’om the rolls of the army without trial for the offense of drawing pay more than once for the same period ; for the discourage ment of the plan to pay soldiers by checks, and for the establishment of a professorship of rhetoric aud English literature at West Point. The reasons for the recommendations are obvious and are set forth in the report attach ed. I also recommend that the status of staff corps of the army be fixed, where this has not already been done, so that promotions may be made and vacancies filled, as they occur in each grade when reduced below the number to be fixed by law. The necessity for such legislation is specially felt now in the pay department, which is be low the number adequate to the performance of the duties required of them. THE NAVY. The efficiency of the navy has been largely increased during the last year. Under the impulse of the foreign complications, which threatened us at the commencement of the last congress, most of our efficient wooden ships were put in condition for immediate service, and the repairs of onr iron-clads were pushed with the utmost vigor. The result is, that mest of these are now in an effective state and need only to be manned and set in commission, to go at once into service. Some of the new steamers, authorized bv congress, are already in commission and most of the l’emainder ai*e launched and w'ait the comple tion of machinery to enable them to take their places as part of our effective force. Two iron tornedo ships have been completed dur ing the last year, and four of our large double turretted iron-clads are now undergoing re pairs. IV hen these are finished, everything that is needful for our navy, as now author ized, will be in a condition * for service, aud, with the advance in science of torpedo war fare, the American navy, comparatively small as it is, will be found powerful for the purposes of a peaceful uatiou. SCIENTIFIC AND HYDROGRAPHIC, Much has also been accomplished during the year in aid of science and to increase the sum of general knowledge and further the in terests of commerce and civilization. Exten sive and much needed soundings have been made for hydrographic purposes and to fix the proper routes of ocean telegraphs. The surveys of the great Isthmus havo been com pleted aud vessels of the navy are now em ployed in conjunction with those of England, France. Germany and Russia in observations connected with the transit of Venus, useful and interesting to the scientific world. The estimates for this branch of the public service do not differ much from those of lest year, the general appropriation of the service beipg so .newhat less, and those for improve ments at the various stations rather larger than the corresponding ones made a year ago. The regular maintenance and a steady increase in the efficiency of this most important arm, in proportion to the growth of our maritime intercourse and interests, is recommended to the attention of congress. The use of the navy during peace might be further utilized by a’ direct authorization of the employment of naval vessels in surveys of the supposed navigable waters of other na tionalities on this continent, especially the tributaries of the two great rivers of South America, the Orinoco and the Amazon. Noth ing prevents, under existing laws, such explo ration, except that expenditures must be made in such development of the commercial inter ests. advantageous to the people reached, and to those who may establish relations with them. POSTAL PROPOSITIONS. The education of the people entitled to ex ercise the right of franchise I regard as essen tiali*o prosperity everywhere, and especially so in republics, where both education and pre vious condition do not enter into account in giving the suffrage. Next to the public school is the post-office as the great agent of educa tion over our vast territory. The rapidity with which new sections are being settled up, thus increasing the carrying of the mails in a more rapid ratio than the increase of receipts, is not alarming. The report of the postmaster general, herewith attached, shows there was an increase of revenue in his department in 1873 over the previous year of §1,674,411, and an increase of tlie cost of carrying the mails or paying employes of §3,041,467.91. The report of the postmaster-general gives interesting statistics of his department, aud compares them with corresponding statistics of a year ago, showing a growth in every branch of the department. A postal convention has been concluded with New South Wales, an exchange of postal cards established with Switzerland, and the negotia tions pending for several years past with France have terminated in a convention with that country, which went into effect last August. An international postal congress was con vened in Berne in September last, at which the United States was represented by an officer of the postoffice department, of much expe rience and of quilification for the position. A convention for the establishment of an in ternational postal un'on was agreed on by tUs delegates of tSie countries represented, sub ject to the approval of the proper authorities of those conntries. I respectfully direct your attention to the report of the postmaster-general, aud his sug gestions in regard to an equitable adjustment of the question of the compensation to rail roads for carrying the mails. LOUISIANA —THE FOURTEENTH OF SEPTEMBER. Your attentioß will be drawn to the unset tled condition of affairs in some of the south ern states. On the 14th of September last, the governor of Louisiana called on me. as provided in the constitution of the United States, for aid in the suppression of domestic violence. That call Was made in view of a E reclamation issued by D. B. Penn, saying e was elected Lieut. Governor in i872, and calling upon {the militia of the state to arm, assemble and drive from power the usurp ers, as he designated the officers of the state government. On the next day I issued my proclamation, commanding the insurgents to disperse within five days from the date there of, and subsequently learned that on that day they had taken forcible possession of the state house. Hteps were taken by me to sup port the existing and recognized state govern ment, but before the expiration of the five days the insurrectionary movement was prac tically abandoned, and the officers of the state government, with some minor exceptions, re sumed their powers aud duties. Considering that the present state adminis tration of Louisiana has been the only gov ernment in the state for nearly two years; that it has been tactily acknowledged and ac quiesced in as 'such by oongress, and more than once expressly recognized by me, I re garded it as my clear duty, when legally called upon for that purpose, to prevent its over throw by an armed mob under pretense of fraud and irregularity in the election of 1872. I have heretofore called the attention of con gress to this subject, stating that on account of the frauds and forgeries committed at said election, and because it appears that the re turns thereof were never legally canvased, it was impossible to tell thereby who were chosen. But from the best sources of infor mation at my command, I have always believ - ed the present state officers received a majori ty of the legal votes actually cast at that elec tion. I repeat what I Eaid in my special mes sage of Feb. 13, 1874, that in the event of no action by congress, I must continue to recog nize the government heretofore recognized by me. KV-KLUX. I regret to say that with the preparations for the late election, decided indications ap jteared in some localities in the southern states of a determination by acts of violence and in timidation to deprive citizens of the ballot be cause of their political opinion. Bands of men masked and armed made their appear ance. White leagues and other societies were fo.med. Large quantities of arms and am munition were imported and distributed to these organizations. Military drills with men acing demonstrations were held, and. with all these, murders enough were committed, whioh spread terror among those whose political ac tion was to be suppressed if possible by these intolerant and criminal proceedings. In some places colored laborers were oompelled to vote according to the wishes of their employers under threats of discharge if they acted other wise. and there are too many instances in which, when these threats were disregarded, they were remorselessly executed by those by whom made. I understand that the fifteenth amendment to the constitution was made to prevent this like state of things, and the act of May 31, 1870, with its amendments, was passed to en force its provisions, the object of this being to guarantee to all citizens the right to vote and to protect them in the free enjoyment of that right. Enjoined by the constitution to take care that the laws be faithfully executed, and convinced by undoubted evidence that vio lations of said act had been committed, and that a widespread and flagrant disregard of it was contemplated, the proper officers were in structed to prosecute tlie offenders, and troope were stationed at convenient points to aid tneee officers, if necessary, in the perform ance of their official duties. Complaints are made of this interference by the federal authority, bnt if said amendment and act do not provide for such interference un der the circumstances as above stated, then they are without meaning, force or effect, and the whole scheme of colored enfranchise ment is worse than mockery and little better than a crime COXGRt SSIONAL INVESTIGATION ASKED. Possiblv congress may fiud it doe to truth and justice to ascertain by means of a commit tee, whether tfie alleged wrongs to colored citizens for political purposes are real, or the reports th'reof were manufactured for the occasion. The whole nnm.er of troops in the states of Louisiana, Alabama, Georgia. Flor ida, South Carolina, North Care Una, Kentucky. Tenues-ee. Arkansas, Mississippi. Maryland and Virginia, at the time of the election, was 4,082. This embraces the garrisons of all the forts from the Delaware to the Gulf of Mexico. THE ARKANSAS IMBROGLIO. Another trouble has arisen in Arkansas. Article 13 of the constitution of that state, which was adopted in 1868. and upon the ap proval of which by congress the state was re stored to representation as one of the states of the Union, provides, in effect, that before any amendments proposed to this constitution shall become a j art thereof, they shall be passe • by two successive assemblies and then submitted to, and ratified by, a majority of the electors of the state voting thereon. ’ On the 11th of May, 1874, the governor convened an extra session of the general assembly of the state, which, on the lsth of the same month, i assed an act providing for a con>en tion to frame anew constitute n. Purenant to this act. and at an election held on'the 30th of June, 1874, the convention was approved and delegates were chosen thereto, who assem bled on the 14th af last July and formed a new constitution, the schedule of which pro vided for the election of an entire new set of state officers in a manner contrary to the then existing election laws of the state, t'n the 13th of October, 1874. this constitution, as therein provided, was submitted to the people for their approval or rejection, and according to the election returns was approved by a large majority of those qualified to vote there on, aid at the same election persons were chosen to fill all the state, county and town ship offices. The govx rnor elected in 1872. for the term of fotir vears, turned over his office to the governor chosen under the new consti tution, whereupon the lieutenant governor, also elected in 1872, for the term of four years, claimed to act as governor, and alleging that said proceedings by which the new con stitution was made and anew set of affleers elected, were unconstitutional, illegal and void, and called upon me as provided in section 4, article 4, of the constitution, to protect the state against domestic violence. As congress is now investigating the politi cal affairs of Arkansas, I have declined to in terfere with the subject. Executive interfer ence with the affairs of a state i- repugnant to public opinion, and to the feelings of those who, from their official capacity, mart be used in such interposition, and to him or those who must direct. Unless most clearly on the side of law, such interference beoomes a crime. With the law to support it, this is condemned without a hearing. I desire, therefox e, that sll necessity for executive direction in lo cal affairs may become unnecessary and ob solete. AN APPEAL TO TBE NORTH. I invite the attention, not of congress, but of the people of the United States, to the causes and effects of these unhappy questions. Is there not a disposition on one side to magnify wrongs and outrages, and on the other side to belittle or justify them. If public opin ion could be directed to a correct survey of what is, aud to rebuking wrong and aiding the proper authorities in punishing it, I be lieve a better state of feeling would be iucul cated, and the sooner we would have that peace which would leave the states free indeed to regulate their own domestic affairs." ARRAIGNMENT OF THE SOUTH. I believe, on the part of onr citizens of the southern states, the better part of them, there is a disposition to be law-abiding, and to do no violence, either to individuals or the laws ex isting. But, do they do right in ignoring the existence of violence and bloodshed in resist ance to constituted authority ? I sympathize with their prostrate condition and would do all in mv power to relieve them, acknowledg ing that, in some instances, they have had most tryiug governments to live' under, and very oppressive ones in the way of taxation for nominal improvements, not giving benefits equal to the hardships imposed. Bat can they claim themselves entirely unanswerable for this condition ? They cannot. Violence has been rampant in some localities, and has, further, been justified or denied by those who could have prevented it. GRANT.’ POLICY. The theory is raised that there is to be no further interference on the part of the gen ei al government to protect citizens within a state where the state authorities fail to give protection. This is a great mistake. While I remain the executive all the laws of congress and the provisions of the constitution, includ ing the amendments added thereto, will be en forced with rigor ; but with regret that they should have added one jot or tittle to execu tive duties aud powers, let there be fairness in the discussion of southern questions, the ad vocates of both or all po.itieal parties giving honest, truthful reports of occurrences, con demning the wrong and upholding the right, and soon all will be well. THE COLOR LINE. Under existing conditions the negro votes the republican ticket because he knows his friends are of that party. Many a good citi zen votes the opporite, not because he agrees with the great principles of state, which sepa rate parties, but because generally, he is op posed to negro rule. This is a most delusive one. Treat the negro as a citizen and voter, as lie is, and must remain, and soon parties will he divided on not the color line bnt on principles. Then we shall have no complaint of sectional interferences. THE FEDERAL JUDICIARY. The repo; t of the attorney-general contains valuable recommendations relating to the ad ministratian of justice in the courts ef the United States, to which I Invite your attention. I respectfully snggest to congress the propri ety of increasing the number of judicial dis tricts in the United States to eleven, the pres ent number being nine, and the creation of two additional judgeships. The territory to be travessed by the circuit judges, is so great, and the business of the courts so steadily in creasing, that it is growing more and more im possible for them to keep up with the business requiring their attention. Whether this would involve the necessity of adding two more jus tices of the supremo court to the present num ber, I submit to the judgement of congress. DEPARTMENT OF THE INTERIOR. The attention of congress is invited to the report of the secretary of the interior, and to the legislation asked for by him. The domes tic interests of the people "are more intimately connected with this department than with either of the other departments of the gov ernment. Its duties have beer, added to from time to time until they have become so onerous that, without the most perfect system and or der. it will bo impossible for auv secretary of the interior to keep trace of all the official transactions having his sanction and done in his name, and for which he is held personally responsible. HOMESTEADS FOR INDIANS. The policy adopted for the management of Indian affairs, known as the peace policy, has been adhered to with beneficial results. " It is hoped that a few years more will relieve onr frontiers of Indian depredations. I commend the recommendation of the secretary for the extension of the homestead laws to the Indi ans, and for some sort of territorial govern ment for the Indian territory. A great ma jority of the Indians occupying this territory are believed to be incapable of maintaining their rights against the more civilized and en lightened men. Any territorial form of gov ernment given them, therefore, should pro tect them in their homes and property for a period of at least twenty years, and before its final adoption should be ratified by a majority of those affected. The report of the secretary of the interior, herewith attached, gives much interesting sta tistical information which I abstain from giv iog an abstract of, but refer you to the report itself. SOUTHERN PENSIONERS OF 1812. The acts of congress providing the oath to which pensioners must subscribe before drawing their pensions, cuts off from this bounty a few survivors of the war of 1812, residing in the southern states. I recom mend the restoi ation of this bounty to all such. The number of persons whose names would be restored to the list of pensioners is not large. They are old persons who conld have taken no part in the rebellion, and the ser vices for which they were awarded pensions were in defence of the whole country. Tlf* CENTENNIAL. The report of the commissioners of agricul ture, herewith, contains suggestions of mnch interest to the general public, and refers to the approaching centennial, and the part his department is ready to take in it. I fed that the nation at large is interested in having this exposition a success, and commend to congress such action as will secure a greater general interest in it. Already many foreign nations have signified their intention to be represent ed at it. It may be expected that even- civil ized nation will he represented. THE CIVIL SERVICE SHAM. The rules adopted to improve the civil ser vice of the government have been adhered to as closely as has been practicable with the opposition which they meet. The effect, I believe, lias been beneficial on the whole, and has teuded to the elevation of the service, hut it is impracticable to maintain them without the direct and positive support of congress. Generally the support which this reform re ceives is from those who give it their support only to find fanlt. That the miee are apparently departed from in removals from office without pieferring charges against the parties removed, are fre quently cited as departures from the roles adopted, and the retention of those against whom charges are made by irresponsible per* VOL. 15-NO. 51. sons and withput good grounds, is also often condemned as a violation of them. Under these circumstances, therefore. I announce that if congress adjourns without positive legislation on the snbject of civil service re form. I will regard such action as a disap proval of the system and will abandon it, ex cept so far as to require examinations for cer tain appointees to determine their fitness. Competitive examinations will be abandoned. The gentlemen who have given their service** without oomrensation as members of the board to devise rules aud regulations for the govern ment of the civil service of the country .-hive shown much zeal and earnestness n theft work, and to them, as well as myself, it will be a source of mortification if it is to be thrown awa v. But I repeat, that it is impossible to carry the system to a successful issue wit writ general approval and assistance, and positive law to support it. THE INDUSTRIAL PROBLEM. I have stated that the elements of P r o f, '* er " itv to the nations, capital and labor, skilled ana unskilled, aud the products of the soil still remain with ns. To direct the employ ment of these is a problem deserving the most serions attention of congress. If employment can be given to all lsbor offering itself, pros perity necessarily follows. I have expressed the opinion and repeat it. that the first re quisite to the accomplishment of this end. is the substitution of a sound enrreoev in P|qe of one of a fluctuating value. This secured, there are manv interests that might be fos tered to the great profit of both labor and capital. How to induce labor to .employ capi tal is the question. - . CHEAP TRANSPORTATION —SHTPBUTLPINO. The subject of cheap transportation bay oc cupied the attention of New light on this question will without doubt be given by the committee appointed by the last con gress to invest igate and report upon this sub ject. A revival of shipbuilding, and particu larly of iron steamship building, is Of vast im portance to onr national prosoentv. The Uni ted States is now paving over ?1,000,000,000 per anunm for .freights and passage on foreign ships to be carried abroad, and expended in the emplovmont and support of other people, beyond a fair per cen'age of what should go to foreign vessels, estimatingcn the tonnage and draft of each respectively. • It is to be regretted that this disparity in the carrving trade exists, and. to ootrect it, I would be willing to see a great departure fiom the usual course of the government in sup porting what might usnallv be termed private enterprise. I wonld not suggest, as a remedy, direct subsides to American steamship lines, bnt I would suggest the direct offer of ample compensation for CARBYINfI THE MAILS between the Atlantic and the seaboard cities and the continent 'on American owned and American lmilt steamers, and would extend this liberality to vessels carrying the mails to the Bouth American states ard to Central America and Mexico, and would pursue the same policy from onr Pacific seaports to for eign seaports oil the Pacific. It might be de manded that vessels hnilt for this service should come np to a standard fixed by legisla'- tion in tonnage, speed and all other qualities, looking to the possibility of the government requiring them at some time for war purposes. The right, also, of taking possession of them in such an emergency should be guarded. I offi r these suggestions, believing them worthy of consideration, in all seriousness, af fecting all sections and all interests alike. If anything better can be done to direct the country into a course of general prosperity, none will be more ready than I to adopt this plan. THE DISTRICT", Forwarded herewith is the plxn and report of the commissioners appointed under an act? of congress approved -Tnne 20. 1874. to wind up the affairs of the district government. It will be oeen from the repoit that the total debt of the District of Columbia, less assets on hand and available, is : Bonded debt issued prior to July 1, 1874. §8.883.940.43 : 3Rs.hond, act of congress jnne 20, 1874, §2.088.168,73; certificates of the board of andit, §4.770,558.45. Total. §15,742,667.61, less special improve ments. Assessments chargeable to private propertv in excess of any demand against such assessment, §1.614.054.37. less Chesapeake and Ohio canal lionds $75,000 and Washington and Alexandria bonds §59,000 : in the hands of the commissioners of pie sinking fund. sl,- 748,054.37. leaving the actual debt less said fund, $13,994,613.24. In addition to this, there are claims pre ferred against the board of the district amount ing in the aggregate, reported by the board of audit, $3,147 787.48. of which the greater part will probably be rejected. This sum can with no more propriety be included in the debt of the district government than the thou sands of claims agaiDßt the general govern ment be included as a portion of the national debt. But the aggregate sum thus stated in cludes something morn than the funded debt, chargeable exclusively to the District of Co lumbia. The act of congress at its last session eontenq lates an appointment between the United States’ government and the Dirtrict of Columbia, in respect to the payment of the principal and interest" of the 86-58 bonds. Therefore, in comprising with precision the bonded debt of the district, the aggregate sums above stated, as re-peseta the 365 bonds now issued, the outstanding certificates of the board of audit, and the unadjusted claims pending before that board, should be reduced to the extent of the amount to be apportioned to the United States in the manner indicated in act of congress of Jane 20, 1874. I especially iuvite your attention to the re commendations of the commissioners of the sinking fund relative to the ambiguity of the act of June 20. 1874, concerning the interest on the district bonds, and the consolidation of in debtedness to the district. I feel much in debted to the gentlemen who consented to leave their private affairs and come from a distance to attend to the business of this dis trict. and for the able and satisfactory manner in which it has been conducted. lam sure their services will be equally appreciated by the entire country. It will he seen from the accompanying report of the board of health that the sanitary condition of the district is very satisfactory. THE CITY OF MAGNIFICENT DISTANCES. In mv opinion the District of Columbia should be regarded as the ground of tbq na tional capital.-in which the entire people are interested. I do not allude to this to urge general appropriations to the district, but to draw the attention of congress in framing a law for the government of the district, to the magnificent scale on which the city was plan ned hy the founders of the government, the manner in which for ornamental purposes the reservations, streets and avenues were laid out, and the proportion of the property actu ally possessed by the general government. I think the proportion of the expenses of the government and improvements to be borne bv the general government, the cities of Washington and Georgetown aad the oouutry should be carefully and equitably defined. < THE MISSISSIPPI. In accordance with section 3 of the act ap proved Jnne 23, 1874, I appointed a board to make a survey of the mouth of the Mississippi river, with a view to determine the best method of obtaining and maintaining A depth of water sufficient for the purposes of commerce, etc., and in accordance with an act entitled an act to provide for the appointment of a commis sion of engineers to investigate And report a permanent plan for the excavation of the aln vial bes n of the Mississippi river snbject to inundation, I appointed a commission of en gineers. Neither board has yet completed its labors. When their reports are read they will he forwarded to congress withont delay. U. 8. GRANT. Executive Mansion. Dec. 7, 1874. How Perry Met the Hear. * He was watehmg tiie movements of a striped, frisky-tail chipmunk, that wash ed its little face in the laughing waters of a mountain brook, and thinking how hapoy was that little fellow away off there in the everlasting eilenoe. Ferry is not a large man, but is handsome; he looked at his faoe,‘ reflected in the waters, and wished he was as “ young as he used to be.” He moaned the fact that gray hairs had silvered his head, and thoughtfully ran over the days of happy youth. With a prayer for his descendants, and their descendants, he turned from the water brook to find himself in the presence of a bear! Few words were spoken; both meant busi ness. The bear reared op laughing, and Perry reared down, praying. The situ ation was peculiar—Perry says d-r-d peculiar. At it they went, the bear above, Perry l>elow ; each felt the other, a “foeman worthy of his steel.” In the midßt of the conflict the bear became affectionate, and embraced Perry. Perry said ’twas a “fond embrace,” and re minded him of the days of his court ship. But too much familiarity bred contempt, and Perry intimated with a big knife that his preference was that that hear should not hug him just then. Hie bear weighed eight hundred and sixty pounds, and Perry got eleven gal lons of oil from three-quarters of him. —Del Norte f'rotrpector. Coffer is plenty in Italy, bat gold is scarce, and the copper money of Italy and France are of tb l same value, sc a traffic was organized of carrying copper money into France on a pretty large scale,' and getting gold to return to Italy. One dealer was arrested with SBOO in oopper money in his posses*km.