Speech Transcript:

To the Senate and House of Representatives of the United States: 

It is provided by the Constitution that the President shall from time
to time give to the Congress information of the state of the Union and
recommend to their consideration such measures as he shall judge
necessary and expedient. 

In reviewing the events of the year which has elapsed since the
commencement of your sessions, I first call your attention to the
gratifying condition of our foreign affairs. Our intercourse with
other powers has continued to be of the most friendly character. 

Such slight differences as have arisen during the year have been
already settled or are likely to reach an early adjustment. The
arrest of citizens of the United States in Ireland under recent laws
which owe their origin to the disturbed condition of that country has
led to a somewhat extended correspondence with the Government of Great
Britain. A disposition to respect our rights has been practically
manifested by the release of the arrested parties. 

The claim of this nation in regard to the supervision and control of
any interoceanic canal across the American Isthmus has continued to
be the subject of conference. 

It is likely that time will be more powerful than discussion in
removing the divergence between the two nations whose friendship is
so closely cemented by the intimacy of their relations and the
community of their interests. 

Our long-established friendliness with Russia has remained unshaken.
It has prompted me to proffer the earnest counsels of this Government
that measures be adopted for suppressing the proscription which the
Hebrew race in that country has lately suffered. It has not
transpired that any American citizen has been subjected to arrest or
injury, but our courteous remonstrance has nevertheless been
courteously received. There is reason to believe that the time is not
far distant when Russia will be able to secure toleration to all
faiths within her borders. 

At an international convention held at Paris in 1880, and attended by
representatives of the United States, an agreement was reached in
respect to the protection of trade-marks, patented articles, and the
rights of manufacturing firms and corporations. The formulating into
treaties of the recommendations thus adopted is receiving the
attention which it merits. 

The protection of submarine cables is a subject now under
consideration by an international conference at Paris. Believing that
it is clearly the true policy of this Government to favor the
neutralization of this means of intercourse, I requested our minister
to France to attend the convention as a delegate. I also designated
two of our eminent scientists to attend as our representatives at the
meeting of an international committee at Paris for considering the
adoption of a common unit to measure electric force. 

In view of the frequent occurrence of conferences for the
consideration of important matters of common interest to civilized
nations, I respectfully suggest that the Executive be invested by
Congress with discretionary powers to send delegates to such
conventions, and that provision be made to defray the expenses
incident thereto. 

The difference between the United States and Spain as to the effect
of a judgment and certificate of naturalization has not yet been
adjusted, but it is hoped and believed that negotiations now in
progress will result in the establishment of the position which seems
to this Government so reasonable and just. 

I have already called the attention of Congress to the fact that in
the ports of Spain and its colonies onerous fines have lately been
imposed upon vessels of the United States for trivial technical
offenses against local regulations. Efforts for the abatement of
these exactions have thus far proved unsuccessful. 

I regret to inform you also that the fees demanded by Spanish consuls
in American ports are in some cases so large, when compared with the
value of the cargo, as to amount in effect to a considerable export
duty, and that our remonstrances in this regard have not as yet
received the attention which they seem to deserve. 

The German Government has invited the United States to participate in
an international exhibition of domestic cattle to be held at Hamburg
in July, 1883. If this country is to be represented, it is important
that in the early days of this session Congress should make a
suitable appropriation for that purpose. 

The death of Mr. Marsh, our late minister to Italy, has evoked from
that Government expressions of profound respect for his exalted
character and for his honorable career in the diplomatic service of
his country. The Italian Government has raised a question as to the
propriety of recognizing in his dual capacity the representative of
this country recently accredited both as secretary of legation and as
consul-general at Rome. He has been received as secretary, but his
exequatur as consul-general has thus far been withheld. 

The extradition convention with Belgium, which has been in operation
since 1874, has been lately supplanted by another. The Senate has
signified its approval, and ratifications have been duly exchanged
between the contracting countries. To the list of extraditable crimes
has been added that of the assassination or attempted assassination of
the chief of the State. 

Negotiations have been opened with Switzerland looking to a
settlement by treaty of the question whether its citizens can
renounce their allegiance and become citizens of the United States
without obtaining the consent of the Swiss Government. 

I am glad to inform you that the immigration of paupers and criminals
from certain of the Cantons of Switzerland has substantially ceased
and is no longer sanctioned by the authorities. 

The consideration of this subject prompts the suggestion that the act
of August 3, 1882, which has for its object the return of foreign
convicts to their own country, should be so modified as not to be
open to the interpretation that it affects the extradition of
criminals on preferred charges of crime. 

The Ottoman Porte has not yet assented to the interpretation which
this Government has put upon the treaty of 1830 relative to its
jurisdictional rights in Turkey. It may well be, however, that this
difference will be adjusted by a general revision of the system of
jurisdiction of the United States in the countries of the East, a
subject to which your attention has been already called by the
Secretary of State. 

In the interest of justice toward China and Japan, I trust that the
question of the return of the indemnity fund to the Governments of
those countries will reach at the present session the satisfactory
solution which I have already recommended, and which has recently
been foreshadowed by Congressional discussion. 

The treaty lately concluded with Korea awaits the action of the
Senate. During the late disturbance in Egypt the timely presence of
American vessels served as a protection to the persons and property
of many of our own citizens and of citizens of other countries, whose
governments have expressed their thanks for this assistance. 

The recent legislation restricting immigration of laborers from China
has given rise to the question whether Chinese proceeding to or from
another country may lawfully pass through our own. 

Construing the act of May 6, 1882, in connection with the treaty of
November 7, 1880, the restriction would seem to be limited to Chinese
immigrants coming to the United States as laborers, and would not
forbid a mere transit across our territory. I ask the attention of
Congress to the subject, for such action, if any, as may be deemed
advisable. 

This Government has recently had occasion to manifest its interest in
the Republic of Liberia by seeking to aid the amicable settlement of
the boundary dispute now pending between that Republic and the
British possession of Sierra Leone. 

The reciprocity treaty with Hawaii will become terminable after
September 9, 1883, on twelve months' notice by either party. While
certain provisions of that compact may have proved onerous, its
existence has fostered commercial relations which it is important to
preserve. I suggest, therefore, that early consideration be given to
such modifications of the treaty as seem to be demanded by the
interests of our people. 

In view of our increasing trade with both Hayti and Santo Domingo, I
advise that provision be made for diplomatic intercourse with the
latter by enlarging the scope of the mission at Port au Prince. 

I regret that certain claims of American citizens against the
Government of Hayti have thus far been urged unavailingly. 

A recent agreement with Mexico provides for the crossing of the
frontier by the armed forces of either country in pursuit of hostile
Indians. In my message of last year I called attention to the
prevalent lawlessness upon the borders and to the necessity of
legislation for its suppression. I again invite the attention of
Congress to the subject. 

A partial relief from these mischiefs has been sought in a
convention, which now awaits the approval of the Senate, as does also
another touching the establishment of the international boundary
between the United States and Mexico. If the latter is ratified, the
action of Congress will be required for establishing suitable
commissions of survey. The boundary dispute between Mexico and
Guatemala, which led this Government to proffer its friendly counsels
to both parties, has been amicably settled. 

No change has occurred in our relations with Venezuela. I again
invoke your action in the matter of the pending awards against that
Republic, to which reference was made by a special message from the
Executive at your last session. 

An invitation has been received from the Government of Venezuela to
send representatives in July, 1883, to Caracas for participating in
the centennial celebration of the birth of Bolivar, the founder of
South American independence. In connection with this event it is
designed to commence the erection at Caracas of a statue of
Washington and to conduct an industrial exhibition which will be open
to American products. I recommend that the United States be
represented and that suitable provision be made therefor. 

The elevation of the grade of our mission in Central America to the
plenipotentiary rank, which was authorized by Congress at its late
session, has been since effected. 

The war between Peru and Bolivia on the one side and Chile on the
other began more than three years ago. On the occupation by Chile in
1880 of all the littoral territory of Bolivia, negotiations for peace
were conducted under the direction of the United States. The allies
refused to concede any territory, but Chile has since become master
of the whole coast of both countries and of the capital of Peru. A
year since, as you have already been advised by correspondence
transmitted to you in January last, this Government sent a special
mission to the belligerent powers to express the hope that Chile
would be disposed to accept a money indemnity for the expenses of the
war and to relinquish her demand for a portion of the territory of her
antagonist. 

This recommendation, which Chile declined to follow, this Government
did not assume to enforce; nor can it be enforced without resort to
measures which would be in keeping neither with the temper of our
people nor with the spirit of our institutions. 

The power of Peru no longer extends over its whole territory, and in
the event of our interference to dictate peace would need to be
supplemented by the armies and navies of the United States. Such
interference would almost inevitably lead to the establishment of a
protectorate--a result utterly at odds with our past policy,
injurious to our present interests, and full of embarrassments for
the future. 

For effecting the termination of hostilities upon terms at once just
to the victorious nation and generous to its adversaries, this
Government has spared no efforts save such as might involve the
complications which I have indicated. 

It is greatly to be deplored that Chile seems resolved to exact such
rigorous conditions of peace and indisposed to submit to arbitration
the terms of an amicable settlement. No peace is likely to be lasting
that is not sufficiently equitable and just to command the approval of
other nations. 

About a year since invitations were extended to the nations of this
continent to send representatives to a peace congress to assemble at
Washington in November, 1882. The time of meeting was fixed at a
period then remote, in the hope, as the invitation itself declared,
that in the meantime the disturbances between the South American
Republics would be adjusted. As that expectation seemed unlikely to
be realized, I asked in April last for an expression of opinion from
the two Houses of Congress as to the advisability of holding the
proposed convention at the time appointed. This action was prompted
in part by doubts which mature reflection had suggested whether the
diplomatic usage and traditions of the Government did not make it
fitting that the Executive should consult the representatives of the
people before pursuing a line of policy somewhat novel in its
character and far reaching in its possible consequences. In view of
the fact that no action was taken by Congress in the premises and
that no provision had been made for necessary expenses, I
subsequently decided to postpone the convocation, and so notified the
several Governments which had been invited to attend. 

I am unwilling to dismiss this subject without assuring you of my
support of any measures the wisdom of Congress may devise for the
promotion of peace on this continent and throughout the world, and I
trust that the time is nigh when, with the universal assent of
civilized peoples, all international differences shall be determined
without resort to arms by the benignant processes of arbitration. 

Changes have occurred in the diplomatic representation of several
foreign powers during the past year. New ministers from the Argentine
Republic, Austria-Hungary, Brazil, Chile, China, France, Japan,
Mexico, the Netherlands, and Russia have presented their credentials.
The missions of Denmark and Venezuela at this capital have been raised
in grade. Switzerland has created a plenipotentiary mission to this
Government, and an embassy from Madagascar and a minister from Siam
will shortly arrive. 

Our diplomatic intercourse has been enlarged by the establishment of
relations with the new Kingdom of Servia, by the creation of a
mission to Siam, and by the restoration of the mission to Greece. The
Shah of Persia has expressed his gratification that a charge
d'affaires will shortly be sent to that country, where the rights of
our citizens have been hitherto courteously guarded by the
representatives of Great Britain. 

I renew my recommendation of such legislation as will place the
United States in harmony with other maritime powers with respect to
the international rules for the prevention of collisions at sea. 

In conformity with your joint resolution of the 3d of August last, I
have directed the Secretary of State to address foreign governments
in respect to a proposed conference for considering the subject of
the universal adoption of a common prime meridian to be used in the
reckoning of longitude and in the regulation of time throughout the
civilized world. Their replies will in due time be laid before you. 

An agreement was reached at Paris in 1875 between the principal
powers for the interchange of official publications through the
medium of their respective foreign departments. 

The admirable system which has been built up by the enterprise of the
Smithsonian Institution affords a practical basis for our cooperation
in this scheme, and an arrangement has been effected by which that
institution will perform the necessary labor, under the direction of
the Department of State. A reasonable compensation therefor should be
provided by law. 

A clause in the act making appropriations for the diplomatic and
consular service contemplates the reorganization of both branches of
such service on a salaried basis, leaving fees to inure to the
benefit of the Treasury. I cordially favor such a project, as likely
to correct abuses in the present system. The Secretary of State will
present to you at an early day a plan for such reorganization. 

A full and interesting exhibit of the operations of the Treasury
Department is afforded by the report of the Secretary. 

It appears that the ordinary revenues from all sources for the fiscal
year ended June 30, 1882, were as follows: 

From customs                                             
$220,410,730.25  
From internal revenue                                     
146,497,595.45  
From sales of public lands                                  
4,753,140.37  
From tax on circulation and deposits of national banks      
8,956,794.45  
From repayment of interest by Pacific Railway companies       
840,554.37  
From sinking fund for Pacific Railway companies               
796,271.42  
From customs fees, fines, penalties, etc.                   
1,343,348.00  
From fees--consular, letters patent, and lands              
2,638,990.97  
From proceeds of sales of Government property                 
314,959.85  
From profits on coinage, bullion deposits, and assays       
4,116,693.73  
From Indian trust funds                                     
5,705,243.22  
From deposits by individuals for surveying public lands     
2,052,306.36  
From revenues of the District of Columbia                   
1,715,176.41  
From miscellaneous sources                                  
3,383,445.43  
Total ordinary receipts                                   
403,525,250.28  

The ordinary expenditures for the same period were-- 

For civil expenses                                        
$18,042,386.42  
For foreign intercourse                                     
1,307,583.19  
For Indians                                                 
9,736,747.40  
For pensions                                               
61,345,193.95  
For the military establishment, including river and harbor
improvements, and arsenals                                           
        43,570,494.19  
For the naval establishment, including vessels, machinery, and
improvements at navy-yards                                           
           15,032,046.26  
For miscellaneous expenditures, including public buildings,
light-houses, and collecting the revenue                             
                   34,539,237.50  
For expenditures on account of the District of Columbia     
3,330,543.87  
For interest on the public debt                            
71,077,206.79  
Total ordinary expenditures                               
257,981,439.57  

Leaving a surplus revenue of                             
$145,543,810.71, which, with an amount drawn from the cash balance in
the Treasury of      $20,737,694.84, making $166,281,505.55, was
applied to the redemption-- 

Of bonds for the sinking fund                             
$60,079,150.00  
Of fractional currency for the sinking fund                    
58,705.55  
Of loan of July and August,        1861                    
62,572,050.00  
Of loan of March,                  1863                     
4,472,900.00  
Of funded loan of                  1881                    
37,194,450.00  
Of loan of                         1858                       
303,000.00  
Of loan of February,               1861                         
1,000.00  
Of five-twenties of                1862                         
2,100.00  
Of five-twenties of                1864                         
7,400.00  
Of five-twenties of                1865                         
6,500.00  
Of ten-forties of                  1864                       
254,550.00  
Of consols of                      1865                        
86,450.00  
Of consols of                      1867                       
408,250.00  
Of consols of                      1868                       
141,400.00  
Of Oregon War debt                                            
675,250.00  
Of old demand, compound-interest, and other notes              
18,350.00