Speech Transcript:

To the Senate and House of Representatives:

In transmitting to you this my fourth annual message it is with
thankfulness to the Giver of All Good that as a nation we have been
blessed for the past year with peace at home, peace abroad, and a
general prosperity vouchsafed to but few peoples.

With the exception of the recent devastating fire which swept from
the earth with a breath, as it were, millions of accumulated wealth
in the city of Boston, there has been no overshadowing calamity
within the year to record. It is gratifying to note how, like their
fellow-citizens of the city of Chicago under similar circumstances a
year earlier, the citizens of Boston are rallying under their
misfortunes, and the prospect that their energy and perseverance will
overcome all obstacles and show the same prosperity soon that they
would had no disaster befallen them. Otherwise we have been free from
pestilence, war, and calamities, which often overtake nations; and, as
far as human judgment can penetrate the future, no cause seems to
exist to threaten our present peace.

When Congress adjourned in June last, a question had been raised by
Great Britain, and was then pending, which for a time seriously
imperiled the settlement by friendly arbitration of the grave
differences between this Government and that of Her Britannic
Majesty, which by the treaty of Washington had been referred to the
tribunal of arbitration which had met at Geneva, in Switzerland.

The arbitrators, however, disposed of the question which had
jeoparded the whole of the treaty and threatened to involve the two
nations in most unhappy relations toward each other in a manner
entirely satisfactory to this Government and in accordance with the
views and the policy which it had maintained.

The tribunal, which had convened at Geneva in December, concluded its
laborious session on the 14th day of September last, on which day,
having availed itself of the discretionary power given to it by the
treaty to award a sum in gross, it made its decision, whereby it
awarded the sum of $15,500,000 in gold as the indemnity to be paid by
Great Britain to the United States for the satisfaction of all the
claims referred to its consideration.

This decision happily disposes of a long-standing difference between
the two Governments, and, in connection with another award, made by
the German Emperor under a reference to him by the same treaty,
leaves these two Governments without a shadow upon the friendly
relations which it is my sincere hope may forever remain equally
unclouded.

The report of the agent of the United States appointed to attend the
Geneva tribunal, accompanied by the protocols of the proceedings of
the arbitrators, the arguments of the counsel of both Governments,
the award of the tribunal, and the opinions given by the several
arbitrators, is transmitted herewith.

I have caused to be communicated to the heads of the three friendly
powers who complied with the joint request made to them under the
treaty the thanks of this Government for the appointment of
arbitrators made by them respectively, and also my thanks to the
eminent personages named by them, and my appreciation of the dignity,
patience, impartiality, and great ability with which they discharged
their arduous and high functions.

Her Majesty's Government has communicated to me the appreciation by
Her Majesty of the ability and indefatigable industry displayed by
Mr. Adams, the arbitrator named on the part of this Government during
the protracted inquiries and discussions of the tribunal. I cordially
unite with Her Majesty in this appreciation.

It is due to the agent of the United States before the tribunal to
record my high appreciation of the marked ability, unwearied
patience, and the prudence and discretion with which he has conducted
the very responsible and delicate duties committed to him, as it is
also due to the learned and eminent counsel who attended the tribunal
on the part of this Government to express my sense of the talents and
wisdom which they brought to bear in the attainment of the result so
happily reached.

It will be the province of Congress to provide for the distribution
among those who may be entitled to it of their respective shares of
the money to be paid. Although the sum awarded is not payable until a
year from the date of the award, it is deemed advisable that no time
be lost in making a proper examination of the several cases in which
indemnification may be due. I consequently recommend the creation of
a board of commissioners for the purpose.

By the thirty-fourth article of the treaty of Washington the
respective claims of the United States and of Great Britain in their
construction of the treaty of the 15th of June, 1846, defining the
boundary line between their respective territories, were submitted to
the arbitration and award of His Majesty the Emperor of Germany, to
decide which of those claims is most in accordance with the true
interpretation of the treaty of 1846.

His Majesty the Emperor of Germany, having been pleased to undertake
the arbitration, has the earnest thanks of this Government and of the
people of the United States for the labor, pains, and care which he
has devoted to the consideration of this long-pending difference. I
have caused an expression of my thanks to be communicated to His
Majesty. Mr. Bancroft, the representative of this Government at
Berlin, conducted the case and prepared the statement on the part of
the United States with the ability that his past services justified
the public in expecting at his hands. As a member of the Cabinet at
the date of the treaty which has given rise to the discussion between
the two Governments, as the minister to Great Britain when the
construction now pronounced unfounded was first advanced, and as the
agent and representative of the Government to present the case and to
receive the award, he has been associated with the question in all of
its phases, and in every stage has manifested a patriotic zeal and
earnestness in maintenance of the claim of the United States. He is
entitled to much credit for the success which has attended the
submission.

After a patient investigation of the case and of the statements of
each party, His Majesty the Emperor, on the 21st day of October last,
signed his award in writing, decreeing that the claim of the
Government of the United States, that the boundary line between the
territories of Her Britannic Majesty and the United States should be
drawn through the Haro Channel, is most in accordance with the true
interpretation of the treaty concluded on the 15th of June, 1846,
between the Governments of Her Britannic Majesty and of the United
States.

Copies of the "case" presented on behalf of each Government, and of
the "statement in reply" of each, and a translation of the award, are
transmitted herewith.

This award confirms the United States in their claim to the important
archipelago of islands lying between the continent and Vancouvers
Island, which for more than twenty-six years (ever since the
ratification of the treaty) Great Britain has contested, and leaves
us, for the first time in the history of the United States as a
nation, without a question of disputed boundary between our territory
and the possessions of Great Britain on this continent.

It is my grateful duty to acknowledge the prompt, spontaneous action
of Her Majesty's Government in giving effect to the award. In
anticipation of any request from this Government, and before the
reception in the United States of the award signed by the Emperor,
Her Majesty had given instructions for the removal of her troops
which had been stationed there and for the cessation of all exercise
or claim of jurisdiction, so as to leave the United States in the
exclusive possession of the lately disputed territory. I am gratified
to be able to announce that the orders for the removal of the troops
have been executed, and that the military joint occupation of San
Juan has ceased. The islands are now in the exclusive possession of
the United States.

It now becomes necessary to complete the survey and determination of
that portion of the boundary line (through the Haro Channel) upon
which the commission which determined the remaining part of the line
were unable to agree. I recommend the appointment of a commission to
act jointly with one which may be named by Her Majesty for that
purpose.

Experience of the difficulties attending the determination of our
admitted line of boundary, after the occupation of the territory and
its settlement by those owing allegiance to the respective
Governments, points to the importance of establishing, by natural
objects or other monuments, the actual line between the territory
acquired by purchase from Russia and the adjoining possessions of Her
Britannic Majesty. The region is now so sparsely occupied that no
conflicting interests of individuals or of jurisdiction are likely to
interfere to the delay or embarrassment of the actual location of the
line. If deferred until population shall enter and occupy the
territory, some trivial contest of neighbors may again array the two
Governments in antagonism. I therefore recommend the appointment of a
commission, to act jointly with one that may be appointed on the part
of Great Britain, to determine the line between our Territory of
Alaska and the conterminous possessions of Great Britain.

In my last annual message I recommended the legislation necessary on
the part of the United States to bring into operation the articles of
the treaty of Washington of May 8, 1871, relating to the fisheries and
to other matters touching the relations of the United States toward
the British North American possessions, to become operative so soon
as the proper legislation should be had on the part of Great Britain
and its possessions.

That legislation on the part of Great Britain and its possessions had
not then been had, and during the session of Congress a question was
raised which for the time raised a doubt whether any action by
Congress in the direction indicated would become important. This
question has since been disposed of, and I have received notice that
the Imperial Parliament and the legislatures of the provincial
governments have passed laws to carry the provisions of the treaty on
the matters referred to into operation. I therefore recommend your
early adoption of the legislation in the same direction necessary on
the part of this Government.

The joint commission for determining the boundary line between the
United States and the British possessions between the Lake of the
Woods and the Rocky Mountains has organized and entered upon its
work. It is desirable that the force be increased, in order that the
completion of the survey and determination of the line may be the
sooner attained. To this end I recommend that a sufficient
appropriation be made.

With France, our earliest ally; Russia, the constant and steady
friend of the United States; Germany, with whose Government and
people we have so many causes of friendship and so many common
sympathies, and the other powers of Europe, our relations are
maintained on the most friendly terms.

Since my last annual message the exchange has been made of the
ratifications of a treaty with the Austro-Hungarian Empire relating
to naturalization; also of a treaty with the German Empire respecting
consuls and trade-marks; also of a treaty with Sweden and Norway
relating to naturalization; all of which treaties have been duly
proclaimed.

Congress at its last session having made an appropriation to defray
the expense of commissioners on the part of the United States to the
International Statistical Congress at St. Petersburg, the persons
appointed in that character proceeded to their destination and
attended the sessions of the congress. Their report shall in due
season be laid before you. This congress meets at intervals of about
three years, and has held its sessions in several of the countries of
Europe. I submit to your consideration the propriety of extending an
invitation to the congress to hold its next meeting in the United
States. The Centennial Celebration to be held in 1876 would afford an
appropriate occasion for such meeting.

Preparations are making for the international exposition to be held
during the next year in Vienna, on a scale of very great magnitude.
The tendency of these expositions is in the direction of advanced
civilization, and of the elevation of industry and of labor, and of
the increase of human happiness, as well as of greater intercourse
and good will between nations. As this exposition is to be the first
which will have been held in eastern Europe, it is believed that
American inventors and manufacturers will be ready to avail
themselves of the opportunity for the presentation of their
productions if encouraged by proper aid and protection.

At the last session of Congress authority was given for the
appointment of one or more agents to represent this Government at the
exposition. The authority thus given has been exercised, but, in the
absence of any appropriation, there is danger that the important
benefits which the occasion offers will in a large degree be lost to
citizens of the United States. I commend the subject strongly to your
consideration, and recommend that an adequate appropriation be made
for the purpose.

To further aid American exhibitors at the Vienna Exposition, I would
recommend, in addition to an appropriation of money, that the
Secretary of the Navy be authorized to fit up two naval vessels to
transport between our Atlantic cities and Trieste, or the most
convenient port to Vienna, and back, their articles for exhibition.

Since your last session the President of the Mexican Republic,
distinguished by his high character and by his services to his
country, has died. His temporary successor has now been elected with
great unanimity by the people a proof of confidence on their part in
his patriotism and wisdom which it is believed will be confirmed by
the results of his administration. It is particularly desirable that
nothing should be left undone by the Government of either Republic to
strengthen their relations as neighbors and friends.

It is much to be regretted that many lawless acts continue to disturb
the quiet of the settlements on the border between our territory and
that of Mexico, and that complaints of wrongs to American citizens in
various parts of the country are made. The revolutionary condition in
which the neighboring Republic has so long been involved has in some
degree contributed to this disturbance. It is to be hoped that with a
more settled rule of order through the Republic, which may be expected
from the present Government, the acts of which just complaint is made
will cease.

The proceedings of the commission under the convention with Mexico of
the 4th of July, 1868, on the subject of claims, have, unfortunately,
been checked by an obstacle, for the removal of which measures have
been taken by the two Governments which it is believed will prove
successful.

The commissioners appointed, pursuant to the joint resolution of
Congress of the 7th of May last, to inquire into depredations on the
Texan frontier have diligently made investigations in that quarter.
Their report upon the subject will be communicated to you. Their
researches were necessarily incomplete, partly on account of the
limited appropriation made by Congress. Mexico, on the part of that
Government, has appointed a similar commission to investigate these
outrages. It is not announced officially, but the press of that
country states that the fullest investigation is desired, and that
the cooperation of all parties concerned is invited to secure that
end. I therefore recommend that a special appropriation be made at
the earliest day practicable, to enable the commissioners on the part
of the United States to return to their labors without delay.

It is with regret that I have again to announce a continuance of the
disturbed condition of the island of Cuba. No advance toward the
pacification of the discontented part of the population has been
made. While the insurrection has gained no advantages and exhibits no
more of the elements of power or of the prospects of ultimate success
than were exhibited a year ago, Spain, on the other hand, has not
succeeded in its repression, and the parties stand apparently in the
same relative attitude which they have occupied for a long time
past.

This contest has lasted now for more than four years. Were its scene
at a distance from our neighborhood, we might be indifferent to its
result, although humanity could not be unmoved by many of its
incidents wherever they might occur. It is, however, at our door.

I can not doubt that the continued maintenance of slavery in Cuba is
among the strongest inducements to the continuance of this strife. A
terrible wrong is the natural cause of a terrible evil. The abolition
of slavery and the introduction of other reforms in the administration
of government in Cuba could not fail to advance the restoration of
peace and order. It is greatly to be hoped that the present liberal
Government of Spain will voluntarily adopt this view.

The law of emancipation, which was passed more than two years since,
has remained unexecuted in the absence of regulations for its
enforcement. It was but a feeble step toward emancipation, but it was
the recognition of right, and was hailed as such, and exhibited Spain
in harmony with sentiments of humanity and of justice and in sympathy
with the other powers of the Christian and civilized world.

Within the past few weeks the regulations for carrying out the law of
emancipation have been announced, giving evidence of the sincerity of
intention of the present Government to carry into effect the law of
1870. I have not failed to urge the consideration of the wisdom, the
policy, and the justice of a more effective system for the abolition
of the great evil which oppresses a race and continues a bloody and
destructive contest close to our border, as well as the expediency
and the justice of conceding reforms of which the propriety is not
questioned.

Deeply impressed with the conviction that the continuance of slavery
is one of the most active causes of the continuance of the unhappy
condition in Cuba, I regret to believe that citizens of the United
States, or those claiming to be such, are large holders in Cuba of
what is there claimed as property, but which is forbidden and
denounced by the laws of the United States. They are thus, in
defiance of the spirit of our own laws, contributing to the
continuance of this distressing and sickening contest. In my last
annual message I referred to this subject, and I again recommend such
legislation as may be proper to denounce, and, if not prevent, at
least to discourage American citizens from holding or dealing in
slaves.

It is gratifying to announce that the ratifications of the convention
concluded under the auspices of this Government between Spain on the
one part and the allied Republics of the Pacific on the other,
providing for an armistice, have been exchanged. A copy of the
instrument is herewith submitted. It is hoped that this may be
followed by a permanent peace between the same parties.

The differences which at one time threatened the maintenance of peace
between Brazil and the Argentine Republic it is hoped are in the way
of satisfactory adjustment.

With these States, as with the Republics of Central and of South
America, we continue to maintain the most friendly relations.

It is with regret, however, I announce that the Government of
Venezuela has made no further payments on account of the awards under
the convention of the 25th of April, 1866. That Republic is understood
to be now almost, if not quite, tranquilized. It is hoped, therefore,
that it will lose no time in providing for the unpaid balance of its
debt to the United States, which, having originated in injuries to
our citizens by Venezuelan authorities, and having been acknowledged,
pursuant to a treaty, in the most solemn form known among nations,
would seem to deserve a preference over debts of a different origin
and contracted in a different manner. This subject is again
recommended to the attention of Congress for such action as may be
deemed proper.

Our treaty relations with Japan remain unchanged. An imposing embassy
from that interesting and progressive nation visited this country
during the year that is passing, but, being unprovided with powers
for the signing of a convention in this country, no conclusion in
that direction was reached. It is hoped, however, that the
interchange of opinions which took place during their stay in this
country has led to a mutual appreciation of the interests which may
be promoted when the revision of the existing treaty shall be
undertaken.

In this connection I renew my recommendation of one year ago, that--

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, 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 renew the recommendation made on a previous occasion, of the
transfer to the Department of the Interior, to which they seem more
appropriately to belong, of all the powers and duties in relation to
the Territories with which the Department of State is now charged by
law or by custom.

Congress from the beginning of the Government has wisely made
provision for the relief of distressed seamen in foreign countries.
No similar provision, however, has hitherto been made for the relief
of citizens in distress abroad other than seamen. It is understood to
be customary with other governments to authorize consuls to extend
such relief to their citizens or subjects in certain cases. A similar
authority and an appropriation to carry it into effect are recommended
in the case of citizens of the United States destitute or sick under
such circumstances. It is well known that such citizens resort to
foreign countries in great numbers. Though most of them are able to
bear the expenses incident to locomotion, there are some who, through
accident or otherwise, become penniless, and have no friends at home
able to succor them. Persons in this situation must either perish,
cast themselves upon the charity of foreigners, or be relieved at the
private charge of our own officers, who usually, even with the most
benevolent dispositions, have nothing to spare for such purposes.

Should the authority and appropriation asked for be granted, care
will be taken so to carry the beneficence of Congress into effect
that it shall not be unnecessarily or unworthily bestowed. TREASURY.

The moneys received and covered into the Treasury during the fiscal
year ended June 30, 1872, were:

From customs	                          $216,370,286.77
From sales of public lands	             2,575,714.19
From internal revenue	                   130,642,177.72
From tax on national-bank circulation, etc   6,523,396.39
From Pacific railway companies	               749,861.87
From customs fines, etc	                     1,136,442.34
From fees--consular, patent, lands, etc	     2,284,095.92
From miscellaneous	                       412,254.71