Speech Transcript:

To the Senate and House of Representatives:

In addressing my third annual message to the law-making branch of the
Government it is gratifying to be able to state that during the past
year success has generally attended the effort to execute all laws
found upon the statute books. The policy has been not to inquire into
the wisdom of laws already enacted, but to learn their spirit and
intent and to enforce them accordingly.

The past year has, under a wise Providence, been one of general
prosperity to the nation. It has, however, been attended with more
than usual chastisements in the loss of life and property by storm
and fire. These disasters have served to call forth the best elements
of human nature in our country and to develop a friendship for us on
the part of foreign nations which goes far toward alleviating the
distresses occasioned by these calamities. The benevolent, who have
so generously shared their means with the victims of these
misfortunes, will reap their reward in the consciousness of having
performed a noble act and in receiving the grateful thanks of men,
women, and children whose sufferings they have relieved.

The relations of the United States with foreign powers continue to be
friendly. The year has been an eventful one in witnessing two great
nations, speaking one language and having one lineage, settling by
peaceful arbitration disputes of long standing and liable at any time
to bring those nations into bloody and costly conflict. An example has
thus been set which, if successful in its final issue, may be followed
by other civilized nations, and finally be the means of returning to
productive industry millions of men now maintained to settle the
disputes of nations by the bayonet and the broadside.

I transmit herewith a copy of the treaty alluded to, which has been
concluded since the adjournment of Congress with Her Britannic
Majesty, and a copy of the protocols of the conferences of the
commissioners by whom it was negotiated. This treaty provides methods
for adjusting the questions pending between the two nations.

Various questions are to be adjusted by arbitration. I recommend
Congress at an early day to make the necessary provision for the
tribunal at Geneva and for the several commissioners on the part of
the United States called for by the treaty.

His Majesty the King of Italy, the President of the Swiss
Confederation, and His Majesty the Emperor of Brazil have each
consented, on the joint request of the two powers, to name an arbiter
for the tribunal at Geneva. I have caused my thanks to be suitably
expressed for the readiness with which the joint request has been
complied with, by the appointment of gentlemen of eminence and
learning to these important positions.

His Majesty the Emperor of Germany has been pleased to comply with
the joint request of the two Governments, and has consented to act as
the arbitrator of the disputed water boundary between the United
States and Great Britain.

The contracting parties in the treaty have undertaken to regard as
between themselves certain principles of public law, for which the
United States have contended from the commencement of their history.
They have also agreed to bring those principles to the knowledge of
the other maritime powers and to invite them to accede to them.
Negotiations are going on as to the form of the note by which the
invitation is to be extended to the other powers.

I recommend the legislation necessary on the part of the United
States to bring into operation the articles of the treaty relating to
the fisheries and to the other matters touching the relations of the
United States toward the British North American possessions, to
become operative so soon as the proper legislation shall be had on
the part of Great Britain and its possessions. It is much to be
desired that this legislation may become operative before the
fishermen of the United States begin to make their arrangements for
the coming season.

I have addressed a communication, of which a copy is transmitted
herewith, to the governors of New York, Pennsylvania, Ohio, Indiana,
Michigan, Illinois, and Wisconsin, urging upon the governments of
those States, respectively, the necessary action on their part to
carry into effect the object of the article of the treaty which
contemplates the use of the canals, on either side, connected with
the navigation of the lakes and rivers forming the boundary, on terms
of equality, by the inhabitants of both countries. It is hoped that
the importance of the object and the benefits to flow therefrom will
secure the speedy approval and legislative sanction of the States
concerned.

I renew the recommendation for an appropriation for determining the
true position of the forty-ninth parallel of latitude where it forms
the boundary between the United States and the British North American
possessions, between the Lake of the Woods and the summit of the Rocky
Mountains. The early action of Congress on this recommendation would
put it in the power of the War Department to place a force in the
field during the next summer.

The resumption of diplomatic relations between France and Germany has
enabled me to give directions for the withdrawal of the protection
extended to Germans in France by the diplomatic and consular
representatives of the United States in that country. It is just to
add that the delicate duty of this protection has been performed by
the minister and the consul-general at Paris, and the various consuls
in France under the supervision of the latter, with great kindness as
well as with prudence and tact. Their course has received the
commendation of the German Government, and has wounded no
susceptibility of the French.

The Government of the Emperor of Germany continues to manifest a
friendly feeling toward the United States, and a desire to harmonize
with the moderate and just policy which this Government maintains in
its relations with Asiatic powers, as well as with the South American
Republics. I have given assurances that the friendly feelings of that
Government are fully shared by the United States.

The ratifications of the consular and naturalization conventions with
the Austro-Hungarian Empire have been exchanged.

I have been officially informed of the annexation of the States of
the Church to the Kingdom of Italy, and the removal of the capital of
that Kingdom to Rome. In conformity with the established policy of the
United States, I have recognized this change. The ratifications of the
new treaty of commerce between the United States and Italy have been
exchanged. The two powers have agreed in this treaty that private
property at sea shall be exempt from capture in case of war between
the two powers. The United States have spared no opportunity of
incorporating this rule into the obligation of nations.

The Forty-first Congress, at its third session, made an appropriation
for the organization of a mixed commission for adjudicating upon the
claims of citizens of the United States against Spain growing out of
the insurrection in Cuba. That commission has since been organized. I
transmit herewith the correspondence relating to its formation and its
jurisdiction. It is to be hoped that this commission will afford the
claimants a complete remedy for their injuries.

It has been made the agreeable duty of the United States to preside
over a conference at Washington between the plenipotentiaries of
Spain and the allied South American Republics, which has resulted in
an armistice, with the reasonable assurance of a permanent peace.

The intimate friendly relations which have so long existed between
the United States and Russia continue undisturbed. The visit of the
third son of the Emperor is a proof that there is no desire on the
part of his Government to diminish the cordiality of those relations.
The hospitable reception which has been given to the Grand Duke is a
proof that on our side we share the wishes of that Government. The
inexcusable course of the Russian minister at Washington rendered it
necessary to ask his recall and to decline to longer receive that
functionary as a diplomatic representative. It was impossible, with
self-respect or with a just regard to the dignity of the country, to
permit Mr. Catacazy to continue to hold intercourse with this
Government after his personal abuse of Government officials, and
during his persistent interferences, through various means, with the
relations between the United States and other powers. In accordance
with my wishes, this Government has been relieved of further
intercourse with Mr. Catacazy, and the management of the affairs of
the imperial legation has passed into the hands of a gentleman
entirely unobjectionable.

With Japan we continue to maintain intimate relations. The cabinet of
the Mikado has since the close of the last session of Congress
selected citizens of the United States to serve in offices of
importance in several departments of Government. I have reason to
think that this selection is due to an appreciation of the
disinterestedness of the policy which the United States have pursued
toward Japan. It is our desire to continue to maintain this
disinterested and just policy with China as well as Japan. The
correspondence transmitted herewith shows that there is no
disposition on the part of this Government to swerve from its
established course.

Prompted by a desire to put an end to the barbarous treatment of our
shipwrecked sailors on the Korean coast, I instructed our minister at
Peking to endeavor to conclude a convention with Korea for securing
the safety and humane treatment of such mariners.

Admiral Rodgers was instructed to accompany him with a sufficient
force to protect him in case of need.

A small surveying party sent out, on reaching the coast was
treacherously attacked at a disadvantage. Ample opportunity was given
for explanation and apology for the insult. Neither came. A force was
then landed. After an arduous march over a rugged and difficult
country, the forts from which the outrages had been committed were
reduced by a gallant assault and were destroyed. Having thus punished
the criminals, and having vindicated the honor of the flag, the
expedition returned, finding it impracticable under the circumstances
to conclude the desired convention. I respectfully refer to the
correspondence relating thereto, herewith submitted, and leave the
subject for such action as Congress may see fit to take.

The Republic of Mexico has not yet repealed the very objectionable
laws establishing what is known as the "free zone" on the frontier of
the United States. It is hoped that this may yet be done, and also
that more stringent measures may be taken by that Republic for
restraining lawless persons on its frontiers. I hope that Mexico by
its own action will soon relieve this Government of the difficulties
experienced from these causes.

Our relations with the various Republics of Central and South America
continue, with one exception, to be cordial and friendly.

I recommend some action by Congress regarding the overdue
installments under the award of the Venezuelan Claims Commission of
1866. The internal dissensions of this Government present no
justification for the absence of effort to meet their solemn treaty
obligations.

The ratification of an extradition treaty with Nicaragua has been
exchanged.

It is a subject for congratulation that the great Empire of Brazil
has taken the initiatory step toward the abolition of slavery. Our
relations with that Empire, always cordial, will naturally be made
more so by this act. It is not too much to hope that the Government
of Brazil may hereafter find it for its interest, as well as
intrinsically right, to advance toward entire emancipation more
rapidly than the present act contemplates.

The true prosperity and greatness of a nation is to be found in the
elevation and education of its laborers.

It is a subject for regret that the reforms in this direction which
were voluntarily promised by the statesmen of Spain have not been
carried out in its West India colonies. The laws and regulations for
the apparent abolition of slavery in Cuba and Porto Rico leave most
of the laborers in bondage, with no hope of release until their lives
become a burden to their employers.

I desire to direct your attention to the fact that citizens of the
United States, or persons claiming to be citizens of the United
States, are large holders in foreign lands of this species of
property, forbidden by the fundamental law of their alleged country.
I recommend to Congress to provide by stringent legislation a
suitable remedy against the holding, owning or dealing in slaves, or
being interested in slave property, in foreign lands, either as
owners, hirers, or mortgagors, by citizens of the United States.

It is to be regretted that the disturbed condition of the island of
Cuba continues to be a source of annoyance and of anxiety. The
existence of a protracted struggle in such close proximity to our own
territory, without apparent prospect of an early termination, can not
be other than an object of concern to a people who, while abstaining
from interference in the affairs of other powers, naturally desire to
see every country in the undisturbed enjoyment of peace, liberty, and
the blessings of free institutions.

Our naval commanders in Cuban waters have been instructed, in case it
should become necessary, to spare no effort to protect the lives and
property of bona fide American citizens and to maintain the dignity
of the flag.

It is hoped that all pending questions with Spain growing out of the
affairs in Cuba may be adjusted in the spirit of peace and
conciliation which has hitherto guided the two powers in their
treatment of such questions.

To give importance to and to add to the efficiency of our diplomatic
relations with Japan and China, and to further aid in retaining the
good opinion of those peoples, and to secure to the United States its
share of the commerce destined to flow between those nations and the
balance of the commercial world, I earnestly recommend that an
appropriation be made to support at least four American youths in
each of those countries, to serve as a part of the official family of
our ministers there. Our representatives would not even then be placed
upon an equality with the representatives of Great Britain and of some
other powers. As now situated, our representatives in Japan and China
have to depend for interpreters and translators upon natives of those
countries who know our language imperfectly, or procure for the
occasion the services of employees in foreign business houses or the
interpreters to other foreign ministers.

I would also recommend liberal measures for the purpose of supporting
the American lines of steamers now plying between San Francisco and
Japan and China, and the Australian line--almost our only remaining
lines of ocean steamers--and of increasing their services.

The national debt has been reduced to the extent of $86,057, 126.80
during the year, and by the negotiation of national bonds at a lower
rate of interest the interest on the public debt has been so far
diminished that now the sum to be raised for the interest account is
nearly $17,000,000 less than on the 1st of March, 1869. It was highly
desirable that this rapid diminution should take place, both to
strengthen the credit of the country and to convince its citizens of
their entire ability to meet every dollar of liability without
bankrupting them. But in view of the accomplishment of these
desirable ends: of the rapid development of the resources of the
country; its increasing ability to meet large demands, and the amount
already paid, it is not desirable that the present resources of the
country should continue to be taxed in order to continue this rapid
payment. I therefore recommend a modification of both the tariff and
internal-tax law. I recommend that all taxes from internal sources be
abolished, except those collected from spirituous, vinous, and malt
liquors, tobacco in its various forms, and from stamps.

In readjusting the tariff I suggest that a careful estimate be made
of the amount of surplus revenue collected under the present laws,
after providing for the current expenses of the Government, the
interest count, and a sinking fund, and that this surplus be reduced
in such a manner as to afford the greatest relief to the greatest
number. There are many articles not produced at home, but which enter
largely into general consumption through articles which are
manufactured at home, such as medicines compounded, etc., etc., from
which very little revenue is derived, but which enter into general
use. All such articles I recommend to be placed on the "free list."
Should a further reduction prove advisable, I would then recommend
that it be made upon those articles which can best bear it without
disturbing home production or reducing the wages of American labor.

I have not entered into figures, because to do so would be to repeat
what will be laid before you in the report of the Secretary of the
Treasury. The present laws for collecting revenue pay collectors of
customs small salaries, but provide for moieties (shares in all
seizures), which, at principal ports of entry particularly, raise the
compensation of those officials to a large sum. It has always seemed
to me as if this system must at times work perniciously. It holds out
an inducement to dishonest men, should such get possession of those
offices, to be lax in their scrutiny of goods entered, to enable them
finally to make large seizures. Your attention is respectfully invited
to this subject.

Continued fluctuations in the value of gold, as compared with the
national currency, has a most damaging effect upon the increase and
development of the country, in keeping up prices of all articles
necessary in everyday life. It fosters a spirit of gambling,
prejudicial alike to national morals and the national finances. If
the question can be met as to how to get a fixed value to our
currency, that value constantly and uniformly approaching par with
specie, a very desirable object will be gained.

For the operations of the Army in the past year, the expense of
maintaining it, the estimate for the ensuing year, and for continuing
seacoast and other improvements conducted under the supervision of the
War Department, I refer you to the accompanying report of the
Secretary of War.

I call your attention to the provisions of the act of Congress
approved March 3, 1869, which discontinues promotions in the staff
corps of the Army until provided for by law. I recommend that the
number of officers in each grade in the staff corps be fixed, and
that whenever the number in any one grade falls below the number so
fixed, that the vacancy may be filled by promotion from the grade
below. I also recommend that when the office of chief of a corps
becomes vacant the place may be filled by selection from the corps in
which the vacancy exists.

The report of the Secretary of the Navy shows an improvement in the
number and efficiency of the naval force, without material increase
in the expense of supporting it. This is due to the policy which has
been adopted, and is being extended as fast as our material will
admit, of using smaller vessels as cruisers on the several stations.
By this means we have been enabled to occupy at once a larger extent
of cruising grounds, to visit more frequently the ports where the
presence of our flag is desirable, and generally to discharge more
efficiently the appropriate duties of the Navy in time of peace,
without exceeding the number of men or the expenditure authorized by
law.

During the past year the Navy has, in addition to its regular
service, supplied the men and officers for the vessels of the Coast
Survey, and has completed the surveys authorized by Congress of the
isthmuses of Darien and Tehuantepec, and, under like authority, has
sent out an expedition, completely furnished and equipped, to explore
the unknown ocean of the north.

The suggestions of the report as to the necessity for increasing and
improving the materiel of the Navy, and the plan recommended for
reducing the personnel of the service to a peace standard, by the
gradual abolition of certain grades of officers, the reduction of
others, and the employment of some in the service of the commercial
marine, are well considered and deserve the thoughtful attention of
Congress.

I also recommend that all promotions in the Navy above the rank of
captain be by selection instead of by seniority. This course will
secure in the higher grades greater efficiency and hold out an
incentive to young officers to improve themselves in the knowledge of
their profession.

The present cost of maintaining the Navy, its cost compared with that
of the preceding year, and the estimates for the ensuing year are
contained in the accompanying report of the Secretary of the Navy.

The enlarged receipts of the Post-Office Department, as shown by the
accompanying report of the Postmaster-General, exhibit a gratifying
increase in that branch of the public service. It is the index of the
growth of education and of the prosperity of the people, two elements
highly conducive to the vigor and stability of republics. With a vast
territory like ours, much of it sparsely populated, but all requiring
the services of the mail, it is not at present to be expected that
this Department can be made self-sustaining. But a gradual approach
to this end from year to year is confidently relied on, and the day
is not far distant when the Post-Office Department of the Government
will prove a much greater blessing to the whole people than it is
now.

The suggestions of the Postmaster-General for improvements in the
Department presided over by him are earnestly recommended to you,
special attention. Especially do I recommend favorable consideration
of the plan for uniting the telegraphic system of the United States
with the postal system. It is believed that by such a course the cost
of telegraphing could be much reduced, and the service as well, if not
better, rendered. It would secure the further advantage of extending
the telegraph through portions of the country where private
enterprise will not construct it. Commerce, trade, and, above all,
the efforts to bring a people widely separated into a community of
interest are always benefited by a rapid intercommunication.
Education, the groundwork of republican institutions, is encouraged
by increasing the facilities to gather speedy news from all parts of
the country. The desire to reap the benefit of such improvements will
stimulate education. I refer you to the report of the
Postmaster-General for full details of the operations of last year
and for comparative statements of results with former years.

There has been imposed upon the executive branch of the Government
the execution of the act of Congress approved April 20, 1871, and
commonly known as the Kuklux law, in a portion of the State of South
Carolina. The necessity of the course pursued will be demonstrated by
the report of the Committee to Investigate Southern Outrages. Under
the provisions of the above act I issued a proclamation calling the
attention of the people of the United States to the same, and
declaring my reluctance to exercise any of the extraordinary powers
thereby conferred upon me, except in case of imperative necessity,
but making known my purpose to exercise such powers whenever it
should become necessary to do so for the purpose of securing to all
citizens of the United States the peaceful enjoyment of the rights
guaranteed to them by the Constitution and the laws.

After the passage of this law information was received from time to
time that combinations of the character referred to in this law
existed and were powerful in many parts of the Southern States,
particularly in certain counties in the State of South Carolina.

Careful investigation was made, and it was ascertained that in nine
counties of that State such combinations were active and powerful,
embracing a sufficient portion of the citizens to control the local
authority, and having, among other things, the object of depriving
the emancipated class of the substantial benefits of freedom and of
preventing the free political action of those citizens who did not
sympathize with their own views. Among their operations were frequent
scourgings and occasional assassinations, generally perpetrated at
night by disguised persons, the victims in almost all cases being
citizens of different political sentiments from their own or freed
persons who had shown a disposition to claim equal rights with other
citizens. Thousands of inoffensive and well disposed citizens were
the sufferers by this lawless violence,

Thereupon, on the 12th of October, 1871, a proclamation was issued,
in terms of the law, calling upon the members of those combinations
to disperse within five days and to deliver to the marshal or
military officers of the United States all arms, ammunition,
uniforms, disguises, and other means and implements used by them for
carrying out their unlawful purposes.

This warning not having been heeded, on the 17th of October another
proclamation was issued, suspending the privileges of the writ of
habeas corpus in nine counties in that State.

Direction was given that within the counties so designated persons
supposed, upon creditable information, to be members of such unlawful
combinations should be arrested by the military forces of the United
States and delivered to the marshal, to be dealt with according to
law. In two of said counties, York and Spartanburg, many arrests have
been made. At the last account the number of persons thus arrested was
168. Several hundred, whose criminality was ascertained to be of an
inferior degree, were released for the present. These have generally
made confessions of their guilt.

Great caution has been exercised in making these arrests, and,
notwithstanding the large number, it is believed that no innocent
person is now in custody. The prisoners will be held for regular
trial in the judicial tribunals of the United States.

As soon as it appeared that the authorities of the United States were
about to take vigorous measures to enforce the law, many persons
absconded, and there is good ground for supposing that all of such
persons have violated the law. A full report of what has been done
under this law will be submitted to Congress by the
Attorney-General.

In Utah there still remains a remnant of barbarism, repugnant to
civilization, to decency, and to the laws of the United States.
Territorial officers, however, have been found who are willing to
perform their duty in a spirit of equity and with a due sense of the
necessity of sustaining the majesty of the law. Neither polygamy nor
any other violation of existing statutes will be permitted within the
territory of the United States. It is not with the religion of the
self-styled Saints that we are now dealing, but with their practices.
They will be protected in the worship of God according to the dictates
of their consciences, but they will not be permitted to violate the
laws under the cloak of religion.

It may be advisable for Congress to consider what, in the execution
of the laws against polygamy, is to be the status of plural wives and
their offspring. The propriety of Congress passing an enabling act
authorizing the Territorial legislature of Utah to legitimize all
children born prior to a time fixed in the act might be justified by
its humanity to these innocent children. This is a suggestion only,
and not a recommendation.

The policy pursued toward the Indians has resulted favorably, so far
as can be judged from the limited time during which it has been in
operation. Through the exertions of the various societies of
Christians to whom has been intrusted the execution of the policy,
and the board of commissioners authorized by the law of April 10,
1869, many tribes of Indians have been induced to settle upon
reservations, to cultivate the soil, to perform productive labor of
various kinds, and to partially accept civilization. They are being
cared for in such a way, it is hoped, as to induce those still
pursuing their old habits of life to embrace the only opportunity
which is left them to avoid extermination.

I recommend liberal appropriations to carry out the Indian peace
policy, not only because it is humane, Christian like, and
economical, but because it is right.

I recommend to your favorable consideration also the policy of
granting a Territorial government to the Indians in the Indian
Territory west of Arkansas and Missouri and south of Kansas. In doing
so every right guaranteed to the Indian by treaty should be secured.
Such a course might in time be the means of collecting most of the
Indians now between the Missouri and the Pacific and south of the
British possessions into one Territory or one State. The Secretary of
the Interior has treated upon this subject at length, and I commend to
you his suggestions.

I renew my recommendation that the public lands be regarded as a
heritage to our children, to be disposed of only as required for
occupation and to actual settlers. Those already granted have been in
great part disposed of in such a way as to secure access to the
balance by the hardy settler who may wish to avail himself of them,
but caution should be exercised even in attaining so desirable an
object.

Educational interest may well be served by the grant of the proceeds
of the sale of public lands to settlers. I do not wish to be
understood as recommending in the least degree a curtailment of what
is being done by the General Government for the encouragement of
education.

The report of the Secretary of the Interior submitted with this will
give you all the information collected and prepared for publication
in regard to the census taken during the year 1870; the operations of
the Bureau of Education for the year; the Patent Office; the Pension
Office; the Land Office, and the Indian Bureau.

The report of the Commissioner of Agriculture gives the operations of
his Department for the year. As agriculture is the groundwork of our
prosperity, too much importance can not be attached to the labors of
this Department. It is in the hands of an able head, with able
assistants, all zealously devoted to introducing into the
agricultural productions of the nation all useful products adapted to
any of the various climates and soils of our vast territory, and to
giving all useful information as to the method of cultivation, the
plants, cereals, and other products adapted to particular localities.
Quietly but surely the Agricultural Bureau is working a great national
good, and if liberally supported the more widely its influence will be
extended and the less dependent we shall be upon the products of
foreign countries.

The subject of compensation to the heads of bureaus and officials
holding positions of responsibility, and requiring ability and
character to fill properly, is one to which your attention is
invited. But few of the officials receive a compensation equal to the
respectable support of a family, while their duties are such as to
involve millions of interest. In private life services demand
compensation equal to the services rendered; a wise economy would
dictate the same rule in the Government service.

I have not given the estimates for the support of Government for the
ensuing year, nor the comparative statement between the expenditures
for the year just passed and the one just preceding, because all
these figures are contained in the accompanying reports or in those
presented directly to Congress. These estimates have my approval.

More than six years having elapsed since the last hostile gun was
fired between the armies then arrayed against each other--one for the
perpetuation, the other for the destruction, of the Union--it may well
be considered whether it is not now time that the disabilities imposed
by the fourteenth amendment should be removed. That amendment does not
exclude the ballot, but only imposes the disability to hold offices
upon certain classes. When the purity of the ballot is secure,
majorities are sure to elect officers reflecting the views of the
majority. I do not see the advantage or propriety of excluding men
from office merely because they were before the rebellion of standing
and character sufficient to be elected to positions requiring them to
take oaths to support the Constitution, and admitting to eligibility
those entertaining precisely the same views, but of less standing in
their communities. It may be said that the former violated an oath,
while the latter did not; the latter did not have it in their power
to do so. If they had taken this oath, it can not be doubted they
would have broken it as did the former class. If there are any great
criminals, distinguished above all others for the part they took in
opposition to the Government, they might, in the judgment of
Congress, be excluded from such an amnesty.

This subject is submitted for your careful consideration.

The condition of the Southern States is, unhappily, not such as all
true patriotic citizens would like to see. Social ostracism for
opinion's sake, personal violence or threats toward persons
entertaining political views opposed to those entertained by the
majority of the old citizens, prevents immigration and the flow of
much-needed capital into the States lately in rebellion. It will be a
happy condition of the country when the old citizens of these States
will take an interest in public affairs, promulgate ideas honestly
entertained, vote for men representing their views, and tolerate the
same freedom of expression and ballot in those entertaining different
political convictions.

Under the provisions of the act of Congress approved February 21,
1871, a Territorial government was organized in the District of
Columbia. Its results have thus far fully realized the expectations
of its advocates. Under the direction of the Territorial officers, a
system of improvements has been inaugurated by means of which
Washington is rapidly becoming a city worthy of the nation's capital.
The citizens of the District having voluntarily taxed themselves to a
large amount for the purpose of contributing to the adornment of the
seat of Government, I recommend liberal appropriations on the part of
Congress, in order that the Government may bear its just share of the
expense of carrying out a judicious system of improvements.

By the great fire in Chicago the most important of the Government
buildings in that city were consumed. Those burned had already become
inadequate to the wants of the Government in that growing city, and,
looking to the near future, were totally inadequate. I recommend,
therefore, that an appropriation be made immediately to purchase the
remainder of the square on which the burned buildings stood, provided
it can be purchased at a fair valuation, or provided that the
legislature of Illinois will pass a law authorizing its condemnation
for Government purposes; and also an appropriation of as much money
as can properly be expended toward the erection of new buildings
during this fiscal year.

The number of immigrants ignorant of our laws, habits, etc., coming
into our country annually has become so great and the impositions
practiced upon them so numerous and flagrant that I suggest
Congressional action for their protection. It seems to me a fair
subject of legislation by Congress. I can not now state as fully as I
desire the nature of the complaints made by immigrants of the
treatment they receive, but will endeavor to do so during the session
of Congress, particularly if the subject should receive your
attention.

It has been the aim of the Administration to enforce honesty and
efficiency in all public offices. Every public servant who has
violated the trust placed in him has been proceeded against with all
the rigor of the law. If bad men have secured places, it has been the
fault of the system established by law and custom for making
appointments, or the fault of those who recommend for Government
positions persons not sufficiently well known to them personally, or
who give letters indorsing the characters of office seekers without a
proper sense of the grave responsibility which such a course devolves
upon them. A civil-service reform which can correct this abuse is
much desired. In mercantile pursuits the business man who gives a
letter of recommendation to a friend to enable him to obtain credit
from a stranger is regarded as morally responsible for the integrity
of his friend and his ability to meet his obligations. A reformatory
law which would enforce this principle against all indorsers of
persons for public place would insure great caution in making
recommendations. A salutary lesson has been taught the careless and
the dishonest public servant in the great number of prosecutions and
convictions of the last two years.

It is gratifying to notice the favorable change which is taking place
throughout the country in bringing to punishment those who have proven
recreant to the trusts confided to them and in elevating to public
office none but those who possess the confidence of the honest and
the virtuous, who, it will always be found, comprise the majority of
the community in which they live.

In my message to Congress one year ago I urgently recommended a
reform in the civil service of the country. In conformity with that
recommendation Congress, in the ninth section of "An act making
appropriations for sundry civil expenses of the Government, and for
other purposes," approved March 3, 1871, gave the necessary authority
to the Executive to inaugurate a civil-service reform, and placed upon
him the responsibility of doing so. Under the authority of said act I
convened a board of gentlemen eminently qualified for the work to
devise rules and regulations to effect the needed reform. Their
labors are not yet complete, but it is believed that they will
succeed in devising a plan that can be adopted to the great relief of
the Executive, the heads of Departments, and members of Congress, and
which will redound to the true interest of the public service. At all
events, the experiment shall have a fair trial.

I have thus hastily summed up the operations of the Government during
the last year, and made such suggestions as occur to me to be proper
for your consideration. I submit them with a confidence that your
combined action will be wise, statesmanlike, and in the best
interests of the whole country.

Ulysses S. Grant