Speech Transcript:

Fellow-Citizens of the Senate and House of Representatives:

I congratulate you on the continued and increasing prosperity of our
country. By the favor of Divine Providence we have been blessed
during the past year with health, with abundant harvests, with
profitable employment for all our people, and with contentment at
home, and with peace and friendship with other nations. The
occurrence of the twenty-fourth election of Chief Magistrate has
afforded another opportunity to the people of the United States to
exhibit to the world a significant example of the peaceful and safe
transmission of the power and authority of government from the public
servants whose terms of office are about to expire to their newly
chosen successors. This example can not fail to impress profoundly
thoughtful people of other countries with the advantages which
republican institutions afford. The immediate, general, and cheerful
acquiescence of all good citizens in the result of the election gives
gratifying assurance to our country and to its friends throughout the
world that a government based on the free consent of an intelligent
and patriotic people possesses elements of strength, stability, and
permanency not found in any other form of government.

Continued opposition to the full and free enjoyment of the rights of
citizenship conferred upon the colored people by the recent
amendments to the Constitution still prevails in several of the late
slaveholding States. It has, perhaps, not been manifested in the
recent election to any large extent in acts of violence or
intimidation. It has, however, by fraudulent practices in connection
with the ballots, with the regulations as to the places and manner of
voting, and with counting, returning, and canvassing the votes cast,
been successful in defeating the exercise of the right preservative
of all rights--the right of suffrage--which the Constitution
expressly confers upon our enfranchised citizens.

It is the desire of the good people of the whole country that
sectionalism as a factor in our politics should disappear. They
prefer that no section of the country should be united in solid
opposition to any other section. The disposition to refuse a prompt
and hearty obedience to the equal-rights amendments to the
Constitution is all that now stands in the way of a complete
obliteration of sectional lines in our political contests. As long as
either of these amendments is flagrantly violated or disregarded, it
is safe to assume that the people who placed them in the
Constitution, as embodying the legitimate results of the war for the
Union, and who believe them to be wise and necessary, will continue
to act together and to insist that they shall be obeyed. The
paramount question still is as to the enjoyment of the fight by every
American citizen who has the requisite qualifications to freely cast
his vote and to have it honestly counted. With this question rightly
settled, the country will be relieved of the contentions of the past;
bygones will indeed be bygones, and political and party issues, with
respect to economy and efficiency of administration, internal
improvements, the tariff, domestic taxation, education, finance, and
other important subjects, will then receive their full share of
attention; but resistance to and nullification of the results of the
war will unite together in resolute purpose for their support all who
maintain the authority of the Government and the perpetuity of the
Union, and who adequately appreciate the value of the victory
achieved. This determination proceeds from no hostile sentiment or
feeling to any part of the people of our country or to any of their
interests. The inviolability of the amendments rests upon the
fundamental principle of our Government. They are the solemn
expression of the will of the people of the United States.

The sentiment that the constitutional rights of all our citizens must
be maintained does not grow weaker. It will continue to control the
Government of the country. Happily, the history of the late election
shows that in many parts of the country where opposition to the
fifteenth amendment has heretofore prevailed it is diminishing, and
is likely to cease altogether if firm and well-considered action is
taken by Congress. I trust the House of Representatives and the
Senate, which have the right to judge of the elections, returns, and
qualifications of their own members, will see to it that every case
of violation of the letter or spirit of the fifteenth amendment is
thoroughly investigated, and that no benefit from such violation
shall accrue to any person or party. It will be the duty of the
Executive, with sufficient appropriations for the purpose, to
prosecute unsparingly all who have been engaged in depriving citizens
of the rights guaranteed to them by the Constitution.

It is not, however, to be forgotten that the best and surest guaranty
of the primary rights of citizenship is to be found in that capacity
for self-protection which can belong only to a people whose right to
universal suffrage is supported by universal education. The means at
the command of the local and State authorities are in many cases
wholly inadequate to furnish free instruction to all who need it.
This is especially true where before emancipation the education of
the people was neglected or prevented, in the interest of slavery.
Firmly convinced that the subject of popular education deserves the
earnest attention of the people of the whole country, with a view to
wise and comprehensive action by the Government of the United States,
I respectfully recommend that Congress, by suitable legislation and
with proper safeguards, supplement the local educational funds in the
several States where the grave duties and responsibilities of
citizenship have been devolved on uneducated people by devoting to
the purpose grants of the public lands and, if necessary, by
appropriations from the Treasury of the United States. Whatever
Government can fairly do to promote free popular education ought to
be done. Wherever general education is found, peace, virtue, and
social order prevail and civil and religious liberty are secure.

In my former annual messages I have asked the attention of Congress
to the urgent necessity of a reformation of the civil-service system
of the Government. My views concerning the dangers of patronage, or
appointments for personal or partisan considerations, have been
strengthened by my observation and experience in the Executive
office, and I believe these dangers threaten the stability of the
Government. Abuses so serious in their nature can not be permanently
tolerated. They tend to become more alarming with the enlargement of
administrative service, as the growth of the country in population
increases the number of officers and placemen employed.

The reasons are imperative for the adoption of fixed rules for the
regulation of appointments, promotions, and removals, establishing a
uniform method having exclusively in view in every instance the
attainment of the best qualifications for the position in question.
Such a method alone is consistent with the equal rights of all
citizens and the most economical and efficient administration of the
public business.

Competitive examinations in aid of impartial appointments and
promotions have been conducted for some years past in several of the
Executive Departments, and by my direction this system has been
adopted in the custom-houses and post-offices of the larger cities of
the country. In the city of New York over 2,000 positions in the civil
service have been subject in their appointments and tenure of place to
the operation of published rules for this purpose during the past two
years. The results of these practical trials have been very
satisfactory, and have confirmed my opinion in favor of this system
of selection. All are subjected to the same tests, and the result is
free from prejudice by personal favor or partisan influence. It
secures for the position applied for the best qualifications
attainable among the competing applicants. It is an effectual
protection from the pressure of importunity, which under any other
course pursued largely exacts the time and attention of appointing
officers, to their great detriment in the discharge of other official
duties preventing the abuse of the service for the mere furtherance of
private or party purposes, and leaving the employee of the Government,
freed from the obligations imposed by patronage, to depend solely upon
merit for retention and advancement, and with this constant incentive
to exertion and improvement.

These invaluable results have been attained in a high degree in the
offices where the rules for appointment by competitive examination
have been applied.

A method which has so approved itself by experimental tests at points
where such tests may be fairly considered conclusive should be
extended to all subordinate positions under the Government. I believe
that a strong and growing public sentiment demands immediate measures
for securing and enforcing the highest possible efficiency in the
civil service and its protection from recognized abuses, and that the
experience referred to has demonstrated the feasibility of such
measures.

The examinations in the custom-houses and post-offices have been held
under many embarrassments and without provision for compensation for
the extra labor performed by the officers who have conducted them,
and whose commendable interest in the improvement of the public
service has induced this devotion of time and labor without pecuniary
reward. A continuance of these labors gratuitously ought not to be
expected, and without an appropriation by Congress for compensation
it is not practicable to extend the system of examinations generally
throughout the civil service. It is also highly important that all
such examinations should be conducted upon a uniform system and under
general supervision. Section 1753 of the Revised Statutes authorizes
the President to prescribe the regulations for admission to the civil
service of the United States, and for this purpose to employ suitable
persons to conduct the requisite inquiries with reference to "the
fitness of each candidate, in respect to age, health, character,
knowledge, and ability for the branch of service into which he seeks
to enter;" but the law is practically inoperative for want of the
requisite appropriation.

I therefore recommend an appropriation of $25,000 per annum to meet
the expenses of a commission, to be appointed by the President in
accordance with the terms of this section, whose duty it shall be to
devise a just, uniform, and efficient system of competitive
examinations and to supervise the application of the same throughout
the entire civil service of the Government. I am persuaded that the
facilities which such a commission will afford for testing the
fitness of those who apply for office will not only be as welcome a
relief to members of Congress as it will be to the President and
heads of Departments, but that it will also greatly tend to remove
the causes of embarrassment which now inevitably and constantly
attend the conflicting claims of patronage between the legislative
and executive departments. The most effectual check upon the
pernicious competition of influence and official favoritism in the
bestowal of office will be the substitution of an open competition of
merit between the applicants, in which everyone can make his own
record with the assurance that his success will depend upon this
alone.

I also recommend such legislation as, while leaving every officer as
free as any other citizen to express his political opinions and to
use his means for their advancement, shall also enable him to feel as
safe as any private citizen in refusing all demands upon his salary
for political purposes. A law which should thus guarantee true
liberty and justice to all who are engaged in the public service, and
likewise contain stringent provisions against the use of official
authority to coerce the political action of private citizens or of
official subordinates, is greatly to be desired.

The most serious obstacle, however, to an improvement of the civil
service, and especially to a reform in the method of appointment and
removal, has been found to be the practice, under what is known as
the spoils system, by which the appointing power has been so largely
encroached upon by members of Congress. The first step in the reform
of the civil service must be a complete divorce between Congress and
the Executive in the matter of appointments. The corrupting doctrine
that "to the victors belong the spoils" is inseparable from
Congressional patronage as the established rule and practice of
parties in power. It comes to be understood by applicants for office
and by the people generally that Representatives and Senators are
entitled to disburse the patronage of their respective districts and
States. It is not necessary to recite at length the evils resulting
from this invasion of the Executive functions. The true principles of
Government on the subject of appointments to office, as stated in the
national conventions of the leading parties of the country, have
again and again been approved by the American people, and have not
been called in question in any quarter. These authentic expressions
of public opinion upon this all-important subject are the statement
of principles that belong to the constitutional structure of the
Government. Under the Constitution the President and heads of
Departments are to make nominations for office. The Senate is to
advise and consent to appointments, and the House of Representatives
is to accuse and prosecute faithless officers. The best interest of
the public service demands that these distinctions be respected; that
Senators and Representatives, who may be judges and accusers, should
not dictate appointments to office. To this end the cooperation of
the legislative department of the Government is required alike by the
necessities of the case and by public opinion. Members of Congress
will not be relieved from the demands made upon them with reference
to appointments to office until by legislative enactment the
pernicious practice is condemned and forbidden.

It is therefore recommended that an act be passed defining the
relations of members of Congress with respect to appointment to
office by the President; and I also recommend that the provisions of
section 1767 and of the sections following of the Revised Statutes,
comprising the tenure-of-office act of March 2, 1867, be repealed.

Believing that to reform the system and methods of the civil service
in our country is one of the highest and most imperative duties of
statesmanship, and that it can be permanently done only by the
cooperation of the legislative and executive departments of the
Government, I again commend the whole subject to your considerate
attention.

It is the recognized duty and purpose of the people of the United
States to suppress polygamy where it now exists in our Territories
and to prevent its extension. Faithful and zealous efforts have been
made by the United States authorities in Utah to enforce the laws
against it. Experience has shown that the legislation upon this
subject, to be effective, requires extensive modification and
amendment. The longer action is delayed the more difficult it will be
to accomplish what is desired. Prompt and decided measures are
necessary. The Mormon sectarian organization which upholds polygamy
has the whole power of making and executing the local legislation of
the Territory. By its control of the grand and petit juries it
possesses large influence over the administration of justice.
Exercising, as the heads of this sect do, the local political power
of the Territory, they are able to make effective their hostility to
the law of Congress on the subject of polygamy, and, in fact, do
prevent its enforcement. Polygamy will not be abolished if the
enforcement of the law depends on those who practice and uphold the
crime. It can only be suppressed by taking away the political power
of the sect which encourages and sustains it.

The power of Congress to enact suitable laws to protect the
Territories is ample. It is not a case for halfway measures. The
political power of the Mormon sect is increasing. It controls now one
of our wealthiest and most populous Territories. It is extending
steadily into other Territories. Wherever it goes it establishes
polygamy and sectarian political power. The sanctity of marriage and
the family relation are the corner stone of our American society and
civilization. Religious liberty and the separation of church and
state are among the elementary ideas of free institutions. To
reestablish the interests and principles which polygamy and Mormonism
have imperiled, and to fully reopen to intelligent and virtuous
immigrants of all creeds that part of our domain which has been in a
great degree closed to general immigration by intolerant and immoral
institutions, it is recommended that the government of the Territory
of Utah be reorganized.

I recommend that Congress provide for the government of Utah by a
governor and judges, or commissioners, appointed by the President and
confirmed by the Senate--a government analogous to the provisional
government established for the territory northwest of the Ohio by the
ordinance of 1787. If, however, it is deemed best to continue the
existing form of local government, I recommend that the right to
vote, hold office, and sit on juries in the Territory of Utah be
confined to those who neither practice nor uphold polygamy. If
thorough measures are adopted, it is believed that within a few years
the evils which now afflict Utah will be eradicated, and that this
Territory will in good time become one of the most prosperous and
attractive of the new States of the Union.

Our relations with all foreign countries have been those of
undisturbed peace, and have presented no occasion for concern as to
their continued maintenance.

My anticipation of an early reply from the British Government to the
demand of indemnity to our fishermen for the injuries suffered by
that industry at Fortune Bay in January, 1878, which I expressed in
my last annual message, was disappointed. This answer was received
only in the latter part of April in the present year, and when
received exhibited a failure of accord between the two Governments as
to the measure of the inshore fishing privilege secured to our
fishermen by the treaty of Washington of so serious a character that
I made it the subject of a communication to Congress, in which I
recommended the adoption of the measures which seemed to me proper to
be taken by this Government in maintenance of the rights accorded to
our fishermen under the treaty and toward securing an indemnity for
the injury these interests had suffered. A bill to carry out these
recommendations was under consideration by the House of
Representatives at the time of the adjournment of Congress in June
last.

Within a few weeks I have received a communication from Her Majesty's
Government renewing the consideration of the subject, both of the
indemnity for the injuries at Fortune Bay and of the interpretation
of the treaty in which the previous correspondence had shown the two
Governments to be at variance. Upon both these topics the disposition
toward a friendly agreement is manifested by a recognition of our
right to an indemnity for the transaction at Fortune Bay, leaving the
measure of such indemnity to further conference, and by an assent to
the view of this Government, presented in the previous
correspondence, that the regulation of conflicting interests of the
shore fishery of the provincial seacoasts and the vessel fishery of
our fishermen should be made the subject of conference and concurrent
arrangement between the two Governments.

I sincerely hope that the basis may be found for a speedy adjustment
of the very serious divergence of views in the interpretation of the
fishery clauses of the treaty of Washington, which, as the
correspondence between the two Governments stood at the close of the
last session of Congress, seemed to be irreconcilable.

In the important exhibition of arts and industries which was held
last year at Sydney, New South Wales, as well as in that now in
progress at Melbourne, the United States have been efficiently and
honorably represented. The exhibitors from this country at the former
place received a large number of awards in some of the most
considerable departments, and the participation of the United States
was recognized by a special mark of distinction. In the exhibition at
Melbourne the share taken by our country is no less notable, and an
equal degree of success is confidently expected.

The state of peace and tranquillity now enjoyed by all the nations of
the continent of Europe has its favorable influence upon our
diplomatic and commercial relations with them. We have concluded and
ratified a convention with the French Republic for the settlement of
claims of the citizens of either country against the other. Under
this convention a commission, presided over by a distinguished
publicist, appointed in pursuance of the request of both nations by
His Majesty the Emperor of Brazil, has been organized and has begun
its sessions in this city. A congress to consider means for the
protection of industrial property has recently been in session in
Paris, to which I have appointed the ministers of the United States
in France and in Belgium as delegates. The International Commission
upon Weights and Measures also continues its work in Paris. I invite
your attention to the necessity of an appropriation to be made in
time to enable this Government to comply with its obligations under
the metrical convention.

Our friendly relations with the German Empire continue without
interruption. At the recent International Exhibition of Fish and
Fisheries at Berlin the participation of the United States,
notwithstanding the haste with which the commission was forced to
make its preparations, was extremely successful and meritorious,
winning for private exhibitors numerous awards of a high class and
for the country at large the principal prize of honor offered by His
Majesty the Emperor. The results of this great success can not but be
advantageous to this important and growing industry. There have been
some questions raised between the two Governments as to the proper
effect and interpretation of our treaties of naturalization, but
recent dispatches from our minister at Berlin show that favorable
progress is making toward an understanding in accordance with the
views of this Government, which makes and admits no distinction
whatever between the rights of a native and a naturalized citizen of
the United States. In practice the complaints of molestation suffered
by naturalized citizens abroad have never been fewer than at present.

There is nothing of importance to note in our unbroken friendly
relations with the Governments of Austria-Hungary, Russia, Portugal,
Sweden and Norway, Switzerland, Turkey, and Greece.

During the last summer several vessels belonging to the merchant
marine of this country, sailing in neutral waters of the West Indies,
were fired at, boarded, and searched by an armed cruiser of the
Spanish Government. The circumstances as reported involve not only a
private injury to the persons concerned, but also seemed too little
observant of the friendly relations existing for a century between
this country and Spain. The wrong was brought to the attention of the
Spanish Government in a serious protest and remonstrance, and the
matter is undergoing investigation by the royal authorities with a
view to such explanation or reparation as may be called for by the
facts.

The commission sitting in this city for the adjudication of claims of
our citizens against the Government of Spain is, I hope, approaching
the termination of its labors.

The claims against the United States under the Florida treaty with
Spain were submitted to Congress for its action at the late session,
and I again invite your attention to this long-standing question,
with a view to a final disposition of the matter.

At the invitation of the Spanish Government, a conference has
recently been held at the city of Madrid to consider the subject of
protection by foreign powers of native Moors in the Empire of
Morocco. The minister of the United States in Spain was directed to
take part in the deliberations of this conference, the result of
which is a convention signed on behalf of all the powers represented.
The instrument will be laid before the Senate for its consideration.
The Government of the United States has also lost no opportunity to
urge upon that of the Emperor of Morocco the necessity, in accordance
with the humane and enlightened spirit of the age, of putting an end
to the persecutions, which have been so prevalent in that country, of
persons of a faith other than the Moslem, and especially of the Hebrew
residents of Morocco.

The consular treaty concluded with Belgium has not yet been
officially promulgated, owing to the alteration of a word in the text
by the Senate of the United States, which occasioned a delay, during
which the time allowed for ratification expired. The Senate will be
asked to extend the period for ratification.

The attempt to negotiate a treaty of extradition with Denmark failed
on account of the objection of the Danish Government to the usual
clause providing that each nation should pay the expense of the
arrest of the persons whose extradition it asks.

The provision made by Congress at its last session for the expense of
the commission which had been appointed to enter upon negotiations
with the Imperial Government of China on subjects of great interest
to the relations of the two countries enabled the commissioners to
proceed at once upon their mission. The Imperial Government was
prepared to give prompt and respectful attention to the matters
brought under negotiation, and the conferences proceeded with such
rapidity and success that on the 17th of November last two treaties
were signed at Peking, one relating to the introduction of Chinese
into this country and one relating to commerce. Mr. Trescot, one of
the commissioners, is now on his way home bringing the treaties, and
it is expected that they will be received in season to be laid before
the Senate early in January.

Our minister in Japan has negotiated a convention for the reciprocal
relief of shipwrecked seamen. I take occasion to urge once more upon
Congress the propriety of making provision for the erection of
suitable fireproof buildings at the Japanese capital for the use of
the American legation and the court-house and jail connected with it.
The Japanese Government, with great generosity and courtesy, has
offered for this purpose an eligible piece of land.

In my last annual message I invited the attention of Congress to the
subject of the indemnity funds received some years ago from China and
Japan. I renew the recommendation then made that whatever portions of
these funds are due to American citizens should be promptly paid and
the residue returned to the nations, respectively, to which they
justly and equitably belong.

The extradition treaty with the Kingdom of the Netherlands, Which has
been for some time in course of negotiation, has during the past year
been concluded and duly ratified.

Relations of friendship and amity have been established between the
Government of the United States and that of Roumania. We have sent a
diplomatic representative to Bucharest, and have received at this
capital the special envoy who has been charged by His Royal Highness
Prince Charles to announce the independent sovereignty of Roumania.
We hope for a speedy development of commercial relations between the
two countries.

In my last annual message I expressed the hope that the prevalence of
quiet on the border between this country and Mexico would soon become
so assured as to justify the modification of the orders then in force
to our military commanders in regard to crossing the frontier, without
encouraging such disturbances as would endanger the peace of the two
countries. Events moved in accordance with these expectations, and
the orders were accordingly withdrawn, to the entire satisfaction of
our own citizens and the Mexican Government. Subsequently the peace
of the border was again disturbed by a savage foray under the command
of the Chief Victoria, but by the combined and harmonious action of
the military forces of both countries his band has been broken up and
substantially destroyed.

There is reason to believe that the obstacles which have so long
prevented rapid and convenient communication between the United
States and Mexico by railways are on the point of disappearing, and
that several important enterprises of this character will soon be set
on foot, which can not fail to contribute largely to the prosperity of
both countries.

New envoys from Guatemala, Colombia, Bolivia, Venezuela, and
Nicaragua have recently arrived at this capital, whose distinction
and enlightenment afford the best guaranty of the continuance of
friendly relations between ourselves and these sister Republics.

The relations between this Government and that of the United States
of Colombia have engaged public attention during the past year,
mainly by reason of the project of an interoceanic canal across the
Isthmus of Panama, to be built by private capital under a concession
from the Colombian Government for that purpose. The treaty
obligations subsisting between the United States and Colombia, by
which we guarantee the neutrality of the transit and the sovereignty
and property of Colombia in the Isthmus, make it necessary that the
conditions under which so stupendous a change in the region embraced
in this guaranty should be effected--transforming, as it would, this
Isthmus from a barrier between the Atlantic and Pacific oceans into a
gateway and thoroughfare between them for the navies and the merchant
ships of the world--should receive the approval of this Government,
as being compatible with the discharge of these obligations on our
part and consistent with our interests as the principal commercial
power of the Western Hemisphere. The views which I expressed in a
special message to Congress in March last in relation to this project
I deem it my duty again to press upon your attention. Subsequent
consideration has but confirmed the opinion "that it is the right and
duty of the United States to assert and maintain such supervision and
authority over any interoceanic canal across the isthmus that
connects North and South America as will protect our national
interest."

The war between the Republic of Chile on the one hand and the allied
Republics of Peru and Bolivia on the other still continues. This
Government has not felt called upon to interfere in a contest that is
within the belligerent rights of the parties as independent states. We
have, however, always held ourselves in readiness to aid in
accommodating their difference, and have at different times reminded
both belligerents of our willingness to render such service.

Our good offices in this direction were recently accepted by all the
belligerents, and it was hoped they would prove efficacious; but I
regret to announce that the measures which the ministers of the
United States at Santiago and Lima were authorized to take with the
view to bring about a peace were not successful. In the course of the
war some questions have arisen affecting neutral rights. In all of
these the ministers of the United States have, under their
instructions, acted with promptness and energy in protection of
American interests.

The relations of the United States with the Empire of Brazil continue
to be most cordial, and their commercial intercourse steadily
increases, to their mutual advantage.

The internal disorders with which the Argentine Republic has for some
time past been afflicted, and which have more or less influenced its
external trade, are understood to have been brought to a close. This
happy result may be expected to redound to the benefit of the foreign
commerce of that Republic, as well as to the development of its vast
interior resources.

In Samoa the Government of King Malietoa, under the support and
recognition of the consular representatives of the United States,
Great Britain, and Germany, seems to have given peace and
tranquillity to the islands. While it does not appear desirable to
adopt as a whole the scheme of tripartite local government which has
been proposed, the common interests of the three great treaty powers
require harmony in their relations to the native frame of government,
and this may be best secured by a simple diplomatic agreement between
them. It would be well if the consular jurisdiction of our
representative at Apia were increased in extent and importance so as
to guard American interests in the surrounding and outlying islands
of Oceanica.

The obelisk generously presented by the Khedive of Egypt to the city
of New York has safely arrived in this country, and will soon be
erected in that metropolis. A commission for the liquidation of the
Egyptian debt has lately concluded its work, and this Government, at
the earnest solicitation of the Khedive, has acceded to the
provisions adopted by it, which will be laid before Congress for its
information. A commission for the revision of the judicial code of
the reform tribunal of Egypt is now in session in Cairo. Mr. Farman,
consul-general, and J. M. Batchelder, esq., have been appointed as
commissioners to participate in this work. The organization of the
reform tribunals will probably be continued for another period of
five years.

In pursuance of the act passed at the last session of Congress,
invitations have been extended to foreign maritime states to join in
a sanitary conference in Washington, beginning the 1st of January.
The acceptance of this invitation by many prominent powers gives
promise of success in this important measure, designed to establish a
system of international notification by which the spread of infectious
or epidemic diseases may be more effectively checked or prevented. The
attention of Congress is invited to the necessary appropriations for
carrying into effect the provisions of the act referred to.

The efforts of the Department of State to enlarge the trade and
commerce of the United States, through the active agency of consular
officers and through the dissemination of information obtained from
them, have been unrelaxed. The interest in these efforts, as
developed in our commercial communities, and the value of the
information secured by this means to the trade and manufactures of
the country were recognized by Congress at its last session, and
provision was made for the more frequent publication of consular and
other reports by the Department of State. The first issue of this
publication has now been prepared, and subsequent issues may
regularly be expected. The importance and interest attached to the
reports of consular officers are witnessed by the general demand for
them by all classes of merchants and manufacturers engaged in our
foreign trade. It is believed that the system of such publications is
deserving of the approval of Congress, and that the necessary
appropriations for its continuance and enlargement will commend
itself to your consideration.

The prosperous energies of our domestic industries and their immense
production of the subjects of foreign commerce invite, and even
require, an active development of the wishes and interests of our
people in that direction. Especially important is it that our
commercial relations with the Atlantic and Pacific coasts of South
America, with the West Indies and the Gulf of Mexico, should be
direct, and not through the circuit of European systems, and should
be carried on in our own bottoms. The full appreciation of the
opportunities which our front on the Pacific Ocean gives to commerce
with Japan, China, and the East Indies, with Australia and the island
groups which lie along these routes of navigation, should inspire
equal efforts to appropriate to our own shipping and to administer by
our own capital a due proportion of this trade. Whatever modifications
of our regulations of trade and navigation may be necessary or useful
to meet and direct these impulses to the enlargement of our exchanges
and of our carrying trade I am sure the wisdom of Congress will be
ready to supply. One initial measure, however, seems to me so dearly
useful and efficient that I venture to press it upon your earnest
attention. It seems to be very evident that the provision of regular
steam postal communication by aid from government has been the
forerunner of the commercial predominance of Great Britain on all
these coasts and seas, a greater share in whose trade is now the
desire and the intent of our people. It is also manifest that the
efforts of other European nations to contend with Great Britain for a
share of this commerce have been successful in proportion with their
adoption of regular steam postal communication with the markets whose
trade they sought. Mexico and the States of South America are anxious
to receive such postal communication with this country and to aid in
their development. Similar cooperation may be looked for in due time
from the Eastern nations and from Australia. It is difficult to see
how the lead in this movement can be expected from private interests.
In respect of foreign commerce quite as much as in internal trade
postal communication seems necessarily a matter of common and public
administration, and thus pertaining to Government. I respectfully
recommend to your prompt attention such just and efficient measures
as may conduce to the development of our foreign commercial exchanges
and the building up of our carrying trade.

In this connection I desire also to suggest the very great service
which might be expected in enlarging and facilitating our commerce on
the Pacific Ocean were a transmarine cable laid from San Francisco to
the Sandwich Islands, and thence to Japan at the north and Australia
at the south. The great influence of such means of communication on
these routes of navigation in developing and securing the due share
of our Pacific Coast in the commerce of the world needs no
illustration or enforcement. It may be that such an enterprise,
useful, and in the end profitable, as it would prove to private
investment, may need to be accelerated by prudent legislation by
Congress in its aid, and I submit the matter to your careful
consideration.

An additional and not unimportant, although secondary, reason for
fostering and enlarging the Navy may be found in the unquestionable
service to the expansion of our commerce which would be rendered by
the frequent circulation of naval ships in the seas and ports of all
quarters of the globe. Ships of the proper construction and equipment
to be of the greatest efficiency in case of maritime war might be made
constant and active agents in time of peace in the advancement and
protection of our foreign trade and in the nurture and discipline of
young seamen, who would naturally in some numbers mix with and
improve the crews of our merchant ships. Our merchants at home and
abroad recognize the value to foreign commerce of an active movement
of our naval vessels, and the intelligence and patriotic zeal of our
naval officers in promoting every interest of their countrymen is a
just subject of national pride.

The condition of the financial affairs of the Government, as shown by
the report of the Secretary of the Treasury, is very satisfactory. It
is believed that the present financial situation of the United
States, whether considered with respect to trade, currency, credit,
growing wealth, or the extent and variety of our resources, is more
favorable than that of any other country of our time, and has never
been surpassed by that of any country at any period of its history.
All our industries are thriving; the rate of interest is low; new
railroads are being constructed; a vast immigration is increasing our
population, capital, and labor; new enterprises in great number are in
progress, and our commercial relations with other countries are
improving.

The ordinary revenues from all sources for the fiscal year ended June
30, 1880, were--

From customs	                                      $186,522,064.60
From internal revenue	                               124,009,373.92
From sales of public lands	                         1,016,506.60
From tax on circulation and deposits of national banks	 7,014,971.44
From repayment of interest by Pacific Railway companies	
1,707,367.18
From sinking fund for Pacific Railway companies	          
786,621.22
From customs fees, fines, penalties, etc	         1,148,800.16
From fees-consular, letters patent, and lands	         2,337,029.00
From proceeds of sales of Government property	           282,616.50
From profits on coinage, etc	                         2,792,186.78
From revenues of the District of Columbia	         1,809,469.70
From miscellaneous sources	                         4,099,603.88