Speech Transcript:

To the Congress of the United States: 

Since the close of your last session the American people, in the
exercise of their highest right of suffrage, have chosen their Chief
Magistrate for the four years ensuing. 

When it is remembered that at no period in the country's history has
the long political contest which customarily precedes the day of the
national election been waged with greater fervor and intensity, it is
a subject of general congratulation that after the controversy at the
polls was over, and while the slight preponderance by which the issue
had been determined was as yet unascertained, the public peace
suffered no disturbance, but the people everywhere patiently and
quietly awaited the result. 

Nothing could more strikingly illustrate the temper of the American
citizen, his love of order, and his loyalty to law. Nothing could
more signally demonstrate the strength and wisdom of our political
institutions. 

Eight years have passed since a controversy concerning the result of
a national election sharply called the attention of the Congress to
the necessity of providing more precise and definite regulations for
counting the electoral vote. 

It is of the gravest importance that this question be solved before
conflicting claims to the Presidency shall again distract the
country, and I am persuaded that by the people at large any of the
measures of relief thus far proposed would be preferred to continued
inaction. 

Our relations with all foreign powers continue to be amicable. 

With Belgium a convention has been signed whereby the scope of
present treaties has been so enlarged as to secure to citizens of
either country within the jurisdiction of the other equal rights and
privileges in the acquisition and alienation of property. A
trade-marks treaty has also been concluded. 

The war between Chile and Peru is at an end. For the arbitration of
the claims of American citizens who during its continuance suffered
through the acts of the Chilean authorities a convention will soon be
negotiated. 

The state of hostilities between France and China continues to be an
embarrassing feature of our Eastern relations. The Chinese Government
has promptly adjusted and paid the claims of American citizens whose
property was destroyed in the recent riots at Canton. I renew the
recommendation of my last annual message, that the Canton indemnity
fund be returned to China. 

The true interpretation of the recent treaty with that country
permitting the restriction of Chinese immigration is likely to be
again the subject of your deliberations. It may be seriously
questioned whether the statute passed at the last session does not
violate the treaty rights of certain Chinese who left this country
with return certificates valid under the old law, and who now seem to
be debarred from relanding for lack of the certificates required by
the new. 

The recent purchase by citizens of the United States of a large
trading fleet heretofore under the Chinese flag has considerably
enhanced our commercial importance in the East. In view of the large
number of vessels built or purchased by American citizens in other
countries and exclusively employed in legitimate traffic between
foreign ports under the recognized protection of our flag, it might
be well to provide a uniform rule for their registration and
documentation, so that the bona fide property rights of our citizens
therein shall be duly evidenced and properly guarded. 

Pursuant to the advice of the Senate at the last session, I
recognized the flag of the International Association of the Kongo as
that of a friendly government, avoiding in so doing any prejudgment
of conflicting territorial claims in that region. Subsequently, in
execution of the expressed wish of the Congress, I appointed a
commercial agent for the Kongo basin. 

The importance of the rich prospective trade of the Kongo Valley has
led to the general conviction that it should be open to all nations
upon equal terms. At an international conference for the
consideration of this subject called by the Emperor of Germany, and
now in session at Berlin, delegates are in attendance on behalf of
the United States. Of the results of the conference you will be duly
advised. 

The Government of Korea has generously aided the efforts of the
United States minister to secure suitable premises for the use of the
legation. As the conditions of diplomatic intercourse with Eastern
nations demand that the legation premises be owned by the represented
power, I advise that an appropriation be made for the acquisition of
this property by the Government. The United States already possess
valuable premises at Tangier as a gift from the Sultan of Morocco. As
is stated hereafter, they have lately received a similar gift from the
Siamese Government. The Government of Japan stands ready to present to
us extensive grounds at Tokyo whereon to erect a suitable building for
the legation, court-house, and jail, and similar privileges can
probably be secured in China and Persia. The owning of such premises
would not only effect a large saving of the present rentals, but
would permit of the due assertion of extraterritorial rights in those
countries, and would the better serve to maintain the dignity of the
United States. 

The failure of Congress to make appropriation for our representation
at the autonomous court of the Khedive has proved a serious
embarrassment in our intercourse with Egypt; and in view of the
necessary intimacy of diplomatic relationship due to the
participation of this Government as one of the treaty powers in all
matters of administration there affecting the rights of foreigners, I
advise the restoration of the agency and consulate-general at Cairo on
its former basis. I do not conceive it to be the wish of Congress that
the United States should withdraw altogether from the honorable
position they have hitherto held with respect to the Khedive, or that
citizens of this Republic residing or sojourning in Egypt should
hereafter be without the aid and protection of a competent
representative. 

With France the traditional cordial relationship continues. The
colossal statue of Liberty Enlightening the World, the generous gift
of the people of France, is expected to reach New York in May next. I
suggest that Congressional action be taken in recognition of the
spirit which has prompted this gift and in aid of the timely
completion of the pedestal upon which it is to be placed. 

Our relations with Germany, a country which contributes to our own
some of the best elements of citizenship, continue to be cordial. The
United States have extradition treaties with several of the German
States, but by reason of the confederation of those States under the
imperial rule the application of such treaties is not as uniform and
comprehensive as the interests of the two countries require. I
propose, therefore, to open negotiations for a single convention of
extradition to embrace all the territory of the Empire. 

It affords me pleasure to say that our intercourse with Great Britain
continues to be of a most friendly character. 

The Government of Hawaii has indicated its willingness to continue
for seven years the provisions of the existing reciprocity treaty.
Such continuance, in view of the relations of that country to the
American system of States, should, in my judgment, be favored. 

The revolution in Hayti against the established Government has
terminated. While it was in progress it became necessary to enforce
our neutrality laws by instituting proceedings against individuals
and vessels charged with their infringement. These prosecutions were
in all cases successful. 

Much anxiety has lately been displayed by various European
Governments, and especially by the Government of Italy, for the
abolition of our import duties upon works of art. It is well to
consider whether the present discrimination in favor of the
productions of American artists abroad is not likely to result, as
they themselves seem very generally to believe it may, in the
practical exclusion of our painters and sculptors from the rich
fields for observation, study, and labor which they have hitherto
enjoyed. 

There is prospect that the long-pending revision of the foreign
treaties of Japan may be concluded at a new conference to be held at
Tokyo. While this Government fully recognizes the equal and
independent station of Japan in the community of nations, it would
not oppose the general adoption of such terms of compromise as Japan
may be disposed to offer in furtherance of a uniform policy of
intercourse with Western nations. 

During the past year the increasing good will between our own
Government and that of Mexico has been variously manifested. The
treaty of commercial reciprocity concluded January 20, 1883, has been
ratified and awaits the necessary tariff legislation of Congress to
become effective. This legislation will, I doubt not, be among the
first measures to claim your attention. 

A full treaty of commerce, navigation, and consular rights is much to
be desired, and such a treaty I have reason to believe that the
Mexican Government stands ready to conclude. 

Some embarrassment has been occasioned by the failure of Congress at
its last session to provide means for the due execution of the treaty
of July 29, 1882, for the resurvey of the Mexican boundary and the
relocation of boundary monuments. 

With the Republic of Nicaragua a treaty has been concluded which
authorizes the construction by the United States of a canal, railway,
and telegraph line across the Nicaraguan territory. 

By the terms of this treaty 60 miles of the river San Juan, as well
as Lake Nicaragua, an inland sea 40 miles in width, are to constitute
a part of the projected enterprise. 

This leaves for actual canal construction 17 miles on the Pacific
side and 36 miles on the Atlantic. To the United States, whose rich
territory on the Pacific is for the ordinary purposes of commerce
practically cut off from communication by water with the Atlantic
ports, the political and commercial advantages of such a project can
scarcely be overestimated. 

It is believed that when the treaty is laid before you the justice
and liberality of its provisions will command universal approval at
home and abroad. 

The death of our representative at Russia while at his post at St.
Petersburg afforded to the Imperial Government a renewed opportunity
to testify its sympathy in a manner befitting the intimate
friendliness which has ever marked the intercourse of the two
countries. 

The course of this Government in raising its representation at
Bangkok to the diplomatic rank has evoked from Siam evidences of warm
friendship and augurs well for our enlarged intercourse. The Siamese
Government has presented to the United States a commodious mansion
and grounds for the occupancy of the legation, and I suggest that by
joint resolution Congress attest its appreciation of this generous
gift. 

This government has more than once been called upon of late to take
action in fulfillment of its international obligations toward Spain.
Agitation in the island of Cuba hostile to the Spanish Crown having
been fomented by persons abusing the sacred rights of hospitality
which our territory affords, the officers of this Government have
been instructed to exercise vigilance to prevent infractions of our
neutrality laws at Key West and at other points near the Cuban coast.
I am happy to say that in the only instance where these precautionary
measures were successfully eluded the offenders, when found in our
territory, were subsequently tried and convicted. 

The growing need of close relationship of intercourse and traffic
between the Spanish Antilles and their natural market in the United
States led to the adoption in January last of a commercial agreement
looking to that end. This agreement has since been superseded by a
more carefully framed and comprehensive convention, which I shall
submit to the Senate for approval. It has been the aim of this
negotiation to open such a favored reciprocal exchange of productions
carried under the flag of either country as to make the intercourse
between Cuba and Puerto Rico and ourselves scarcely less intimate
than the commercial movement between our domestic ports, and to
insure a removal of the burdens on shipping in the Spanish Indies, of
which in the past our shipowners and shipmasters have so often had
cause to complain. 

The negotiation of this convention has for a time postponed the
prosecution of certain claims of our citizens which were declared to
be without the jurisdiction of the late Spanish-American Claims
Commission, and which are therefore remitted to diplomatic channels
for adjustment. The speedy settlement of these claims will now be
urged by this Government. 

Negotiations for a treaty of commercial reciprocity with the
Dominican Republic have been successfully concluded, and the result
will shortly be laid before the Senate. 

Certain questions between the United States and the Ottoman Empire
still remain unsolved. Complaints on behalf of our citizens are not
satisfactorily adjusted. The Porte has sought to withhold from our
commerce the right of favored treatment to which we are entitled by
existing conventional stipulations, and the revision of the tariffs
is unaccomplished. 

The final disposition of pending questions with Venezuela has not as
yet been reached, but I have good reason to expect an early
settlement which will provide the means of reexamining the Caracas
awards in conformity with the expressed desire of Congress, and which
will recognize the justice of certain claims preferred against
Venezuela. 

The Central and South American Commission appointed by authority of
the act of July 7, 1884, will soon proceed to Mexico. It has been
furnished with instructions which will be laid before you. They
contain a statement of the general policy of the Government for
enlarging its commercial intercourse with American States. The
commissioners have been actively preparing for their responsible task
by holding conferences in the principal cities with merchants and
others interested in Central and South American trade. 

The International Meridian Conference lately convened in Washington
upon the invitation of the Government of the United States was
composed of representatives from twenty-five nations. The conference
concluded its labors on the 1st of November, having with substantial
unanimity agreed upon the meridian of Greenwich as the starting point
whence longitude is to be computed through 180 degrees eastward and
westward, and upon the adoption, for all purposes for which it may be
found convenient, of a universal day which shall begin at midnight on
the initial meridian and whose hours shall be counted from zero up to
twenty-four. 

The formal report of the transactions of this conference will be
hereafter transmitted to the Congress. 

This Government is in frequent receipt of invitations from foreign
states to participate in international exhibitions, often of great
interest and importance. Occupying, as we do, an advanced position in
the world's production, and aiming to secure a profitable share for
our industries in the general competitive markets, it is a matter of
serious concern that the want of means for participation in these
exhibitions should so often exclude our producers from advantages
enjoyed by those of other countries. During the past year the
attention of Congress was drawn to the formal invitations in this
regard tendered by the Governments of England, Holland, Belgium,
Germany, and Austria. The Executive has in some instances appointed
honorary commissioners. This is, however, a most unsatisfactory
expedient, for without some provision to meet the necessary working
expenses of a commission it can effect little or nothing in behalf of
exhibitors. An International Inventions Exhibition is to be held in
London next May. This will cover a field of special importance, in
which our country holds a foremost rank; but the Executive is at
present powerless to organize a proper representation of our vast
national interests in this direction. 

I have in several previous messages referred to this subject. It
seems to me that a statute giving to the Executive general
discretionary authority to accept such invitations and to appoint
honorary commissioners, without salary, and placing at the disposal
of the Secretary of State a small fund for defraying their reasonable
expenses, would be of great public utility. 

This Government has received official notice that the revised
international regulations for preventing collisions at sea have been
adopted by all the leading maritime powers except the United States,
and came into force on the 1st of September last. For the due
protection of our shipping interests the provisions of our statutes
should at once be brought into conformity with these regulations. 

The question of securing to authors, composers, and artists copyright
privileges in this country in return for reciprocal rights abroad is
one that may justly challenge your attention. It is true that
conventions will be necessary for fully accomplishing this result;
but until Congress shall by statute fix the extent to which foreign
holders of copyright shall be here privileged it has been deemed
inadvisable to negotiate such conventions. For this reason the United
States were not represented at the recent conference at Berne. 

I recommend that the scope of the neutrality laws of the United
States be so enlarged as to cover all patent acts of hostility
committed in our territory and aimed against the peace of a friendly
nation. Existing statutes prohibit the fitting out of armed
expeditions and restrict the shipment of explosives, though the
enactments in the latter respect were not framed with regard to
international obligations, but simply for the protection of passenger
travel. All these statutes were intended to meet special emergencies
that had already arisen. Other emergencies have arisen since, and
modern ingenuity supplies means for the organization of hostilities
without open resort to armed vessels or to filibustering parties. 

I see no reason why overt preparations in this country for the
commission of criminal acts such as are here under consideration
should not be alike punishable whether such acts are intended to be
committed in our own country or in a foreign country with which we
are at peace. 

The prompt and thorough treatment of this question is one which
intimately concerns the national honor. 

Our existing naturalization laws also need revision. Those sections
relating to persons residing within the limits of the United States
in 1795 and 1798 have now only a historical interest. Section 2172,
recognizing the citizenship of the children of naturalized parents,
is ambiguous in its terms and partly obsolete. There are special
provisions of law favoring the naturalization of those who serve in
the Army or in merchant vessels, while no similar privileges are
granted those who serve in the Navy or the Marine Corps. 

"An uniform rule of naturalization" such as the Constitution
contemplates should, among other things, clearly define the status of
persons born within the United States subject to a foreign power
(section 1992) and of minor children of fathers who have declared
their intention to become citizens but have failed to perfect their
naturalization. It might be wise to provide for a central bureau of
registry, wherein should be filed authenticated transcripts of every
record of naturalization in the several Federal and State courts, and
to make provision also for the vacation or cancellation of such record
in cases where fraud had been practiced upon the court by the
applicant himself or where he had renounced or forfeited his acquired
citizenship. A just and uniform law in this respect would strengthen
the hands of the Government in protecting its citizens abroad and
would pave the way for the conclusion of treaties of naturalization
with foreign countries. 

The legislation of the last session effected in the diplomatic and
consular service certain changes and reductions which have been
productive of embarrassment. The population and commercial activity
of our country are steadily on the increase, and are giving rise to
new, varying, and often delicate relationships with other countries.
Our foreign establishment now embraces nearly double the area of
operations that it occupied twenty years ago. The confinement of such
a service within the limits of expenditure then established is not, it
seems to me, in accordance with true economy. A community of
60,000,000 people should be adequately represented in its intercourse
with foreign nations. 

A project for the reorganization of the consular service and for
recasting the scheme of extraterritorial jurisdiction is now before
you. If the limits of a short session will not allow of its full
consideration, I trust that you will not fail to make suitable
provision for the present needs of the service. 

It has been customary to define in the appropriation acts the rank of
each diplomatic office to which a salary is attached. I suggest that
this course be abandoned and that it be left to the President, with
the advice and consent of the Senate, to fix from time to time the
diplomatic grade of the representatives of this Government abroad as
may seem advisable, provision being definitely made, however, as now,
for the amount of salary attached to the respective stations. 

The condition of our finances and the operations of the various
branches of the public service which are connected with the Treasury
Department are very fully discussed in the report of the Secretary. 

It appears that the ordinary revenues for the fiscal year ended June
30, 1884, were: 

From customs  $195,067,489.76  
From internal revenue  121,586,072.51  
From all other sources  31,866,307.65  
Total ordinary revenues  348,519,869.92  
The public expenditures during the same period were:  
For civil expenses  $22,312,907.71  
For foreign intercourse  1,260,766.37  
For Indians  6,475,999.29  
For pensions  55,429,228.06  
For the military establishment, including river and harbor
improvements and arsenals  39,429,603.36  
For the naval establishment, including vessels, machinery, and
improvements at navy-yards  17,292,601.44  
For miscellaneous expenditures, including public buildings,
light-houses, and collecting the revenue  43,939,710.00  
For expenditures on account of the District of Columbia  3,407,049.62
 
For interest on the public debt  54,578,378.48  
For the sinking fund  46,790,229.50  
Total ordinary expenditures  290,926,473.83  
Leaving a surplus of  57,603,396.09  

As compared with the preceding fiscal year, there was a net decrease
of over $21,000,000 in the amount of expenditures. The aggregate
receipts were less than those of the year previous by about
$54,000,000. The falling off in revenue from customs made up nearly
$20,000,000 of this deficiency, and about $23,000,000 of the
remainder was due to the diminished receipts from internal taxation.


The Secretary estimates the total receipts for the fiscal year which
will end June 30, 1885, at $330,000,000 and the total expenditures at
$290,620,201.16, in which sum are included the interest on the debt
and the amount payable to the sinking fund. This would leave a
surplus for the entire year of about $39,000,000. 

The value of exports from the United States to foreign countries
during the year ending June 30, 1884, was as follows: 

Domestic merchandise  $724,964,852  
Foreign merchandise  15,548,757  
Total merchandise  740,513,609  
Specie  67,133,383  
Total exports of merchandise and specie  807,646,992  

The cotton and cotton manufactures included in this statement were
valued at $208,900,415; the breadstuffs at $162,544,715; the
provisions at $114,416,547, and the mineral oils at $47,103,248. 

During the same period the imports were as follows: 

Merchandise  $667,697,693  
Gold and silver  37,426,262  
Total  705,123,955  

More than 63 per cent of the entire value of imported merchandise
consisted of the following articles: 

Sugar and molasses  $103,884,274  
Wool and woolen manufactures  53,842,292  
Silk and its manufactures  49,949,128  
Coffee  49,686,705  
Iron and steel and manufactures thereof  41,464,599  
Chemicals  38,464,965  
Flax, hemp, jute, and like substances, and manufactures thereof 
33,463,398  
Cotton and manufactures of cotton  30,454,476  
Hides and skins other than fur skins  22,350,906  

I concur with the Secretary of the Treasury in recommending the
immediate suspension of the coinage of silver dollars and of the
issuance of silver certificates. This is a matter to which in former
communications I have more than once invoked the attention of the
National Legislature. 

It appears that annually for the past six years there have been
coined, in Compliance with the requirements of the act of February
28, 1878, more than 27,000,000 silver dollars. 

The number now outstanding is reported by the Secretary to be nearly
185,000,000, whereof but little more than 40,000,000, or less than 22
per cent, are in actual circulation. The mere existence of this fact
seems to me to furnish of itself a cogent argument for the repeal of
the statute which has made such fact possible. 

But there are other and graver considerations that tend in the same
direction. 

The Secretary avows his conviction that unless this coinage and the
issuance of silver certificates be suspended silver is likely at no
distant day to become our sole metallic standard. The commercial
disturbance and the impairment of national credit that would be thus
occasioned can scarcely be overestimated. 

I hope that the Secretary's suggestions respecting the withdrawal
from circulation of the $1 and $2 notes will receive your approval.
It is likely that a considerable portion of the silver now
encumbering the vaults of the Treasury might thus find its way into
the currency. 

While trade dollars have ceased, for the present at least, to be an
element of active disturbance in our currency system, some provision
should be made for their surrender to the Government. In view of the
circumstances under which they were coined and of the fact that they
have never had a legal-tender quality, there should be offered for
them only a slight advance over their bullion value. 

The Secretary in the course of his report considers the propriety of
beautifying the designs of our subsidiary silver coins and of so
increasing their weight that they may bear their due ratio of value
to the standard dollar. His conclusions in this regard are cordially
approved. 

In my annual message of 1882 I recommended the abolition of all
excise taxes except those relating to distilled spirits. This
recommendation is now renewed. In case these taxes shall be abolished
the revenues that will still remain to the Government will, in my
opinion, not only suffice to meet its reasonable expenditures, but
will afford a surplus large enough to permit such tariff reduction as
may seem to be advisable when the results of recent revenue laws and
commercial treaties shall have shown in what quarters those
reductions can be most judiciously effected. 

One of the gravest of the problems which appeal to the wisdom of
Congress for solution is the ascertainment of the most effective
means for increasing our foreign trade and thus relieving the
depression under which our industries are now languishing. The
Secretary of the Treasury advises that the duty of investigating this
subject be intrusted in the first instance to a competent commission.
While fully recognizing the considerations that may be urged against
this course, I am nevertheless of the opinion that upon the whole no
other would be likely to effect speedier or better results. 

That portion of the Secretary's report which concerns the condition
of our shipping interests can not fail to command your attention. He
emphatically recommends that as an incentive to the investment of
American capital in American steamships the Government shall, by
liberal payments for mail transportation or otherwise, lend its
active assistance to individual enterprise, and declares his belief
that unless that course be pursued our foreign carrying trade must
remain, as it is to-day, almost exclusively in the hands of
foreigners. 

One phase of this subject is now especially prominent in view of the
repeal by the act of June 26, 1884, of all statutory provisions
arbitrarily compelling American vessels to carry the mails to and
from the United States. As it is necessary to make provision to
compensate the owners of such vessels for performing that service
after April, 1885, it is hoped that the whole subject will receive
early consideration that will lead to the enactment of such measures
for the revival of our merchant marine as the wisdom of Congress may
devise. 

The 3 per cent bonds of the Government to the amount of more than
$100,000,000 have since my last annual message been redeemed by the
Treasury. The bonds of that issue still outstanding amount to little
over $200,000,000, about one-fourth of which will be retired through
the operations of the sinking fund during the coming year. As these
bonds still constitute the chief basis for the circulation of the
national banks, the question how to avert the contraction of the
currency caused by their retirement is one of constantly increasing
importance. 

It seems to be generally conceded that the law governing this matter
exacts from the banks excessive security, and that upon their present
bond deposits a larger circulation than is now allowed may be granted
with safety. I hope that the bill which passed the Senate at the last
session, permitting the issue of notes equal to the face value of the
deposited bonds, will commend itself to the approval of the House of
Representatives. 

In the expenses of the War Department the Secretary reports a
decrease of more than $9,000,000. Of this reduction $5,600,000 was
effected in the expenditures for rivers and harbors and $2,700,000 in
expenditures for the Quartermaster's Department. 

Outside of that Department the annual expenses of all the Army
bureaus proper (except possibly the Ordnance Bureau) are
substantially fixed charges, which can not be materially diminished
without a change in the numerical strength of the Army. The
expenditures in the Quartermaster's Department can readily be
subjected to administrative discretion, and it is reported by the
Secretary of War that as a result of exercising such discretion in
reducing the number of draft and pack animals in the Army the annual
cost of supplying and caring for such animals is now $1,108,085.90
less than it was in 1881. 

The reports of military commanders show that the last year has been
notable for its entire freedom from Indian outbreaks. 

In defiance of the President's proclamation of July 1, 1884, certain
intruders sought to make settlements in the Indian Territory. They
were promptly removed by a detachment of troops. 

During the past session of Congress a bill to provide a suitable
fire-proof building for the Army Medical Museum and the library of
the Surgeon-General's Office received the approval of the Senate. A
similar bill, reported favorably to the House of Representatives by
one of its committees, is still pending before that body. It is hoped
that during the coming session the measure may become a law, and that
thereafter immediate steps may be taken to secure a place of safe
deposit for these valuable collections, now in a state of insecurity.


The funds with which the works for the improvement of rivers and
harbors were prosecuted during the past year were derived from the
appropriations of the act of August 2, 1882, together with such few
balances as were on hand from previous appropriations. The balance in
the Treasury subject to requisition July 1, 1883, was $10,021,649.55.
The amount appropriated during the fiscal year 1884 was $1,319,634.62
and the amount drawn from the Treasury during the fiscal year was
$8,228,703.54, leaving a balance of $3,112,580.63 in the Treasury
subject to requisition July 1, 1884. 

The Secretary of War submits the report of the Chief of Engineers as
to the practicability of protecting our important cities on the
seaboard by fortifications and other defenses able to repel modern
methods of attack. The time has now come when such defenses can be
prepared with confidence that they will not prove abortive, and when
the possible result of delay in making such preparation is seriously
considered delay seems inexcusable. For the most important
cities--those whose destruction or capture would be a national
humiliation--adequate defenses, inclusive of guns, may be made by the
gradual expenditure of $60,000,000--a sum much less than a victorious
enemy could levy as a contribution. An appropriation of about
one-tenth of that amount is asked to begin the work, and I concur
with the Secretary of War in urging that it be granted. 

The War Department is proceeding with the conversion of 10-inch
smoothbore guns into 8-inch rifles by lining the former with tubes of
forged steel or of coil wrought iron. Fifty guns will be thus
converted within the year. This, however, does not obviate the
necessity of providing means for the construction of guns of the
highest power both for the purposes of coast defense and for the
armament of war vessels. 

The report of the Gun Foundry Board, appointed April 2, 1883, in
pursuance of the act of March 3, 1883, was transmitted to Congress in
a special message of February 18, 1884. In my message of March 26,
1884, I called attention to the recommendation of the board that the
Government should encourage the production at private steel works of
the required material for heavy cannon, and that two Government
factories, one for the Army and one for the Navy, should be
established for the fabrication of guns from such material. No action
having been taken, the board was subsequently reconvened to determine
more fully the plans and estimates necessary for carrying out its
recommendation. It has received information which indicates that
there are responsible steel manufacturers in this country who,
although not provided at present with the necessary plant, are
willing to construct the same and to make bids for contracts with the
Government for the supply of the requisite material for the heaviest
guns adapted to modern warfare if a guaranteed order of sufficient
magnitude, accompanied by a positive appropriation extending over a
series of years, shall be made by Congress. All doubts as to the
feasibility of the plan being thus removed, I renew my recommendation
that such action be taken by Congress as will enable the Government to
construct its own ordnance upon its own territory, and so to provide
the armaments demanded by considerations of national safety and
honor. 

The report of the Secretary of the Navy exhibits the progress which
has been made on the new steel cruisers authorized by the acts of
August 5, 1882, and March 3, 1883. Of the four vessels under
contract, one, the Chicago, of 4,500 tons, is more than half
finished; the Atlanta, of 3,000 tons, has been successfully launched,
and her machinery is now fitting; the Boston, also of 3,000 tons, is
ready for launching, and the Dolphin, a dispatch steamer of 1,500
tons, is ready for delivery. 

Certain adverse criticisms upon the designs of these cruisers are
discussed by the Secretary, who insists that the correctness of the
conclusions reached by the Advisory Board and by the Department has
been demonstrated by recent developments in shipbuilding abroad. 

The machinery of the double-turreted monitors Puritan, Terror, and
Amphitrite, contracted for under the act of March 3, 1883, is in
process of construction. No work has been done during the past year
on their armor for lack of the necessary appropriations. A fourth
monitor, the Monadnock, still remains unfinished at the navy-yard in
California. It is recommended that early steps be taken to complete
these vessels and to provide also an armament for the monitor
Miantonomoh. 

The recommendations of the Naval Advisory Board, approved by the
Department, comprise the construction of one steel cruiser of 4,500
tons, one cruiser of 3,000 tons, two heavily armed gunboats, one
light cruising gunboat, one dispatch vessel armed with Hotchkiss
cannon, one armored ram, and three torpedo boats. The general
designs, all of which are calculated to meet the existing wants of
the service, are now well advanced, and the construction of the
vessels can be undertaken as soon as you shall grant the necessary
authority. 

The act of Congress approved August 7, 1882, authorized the removal
to the United States of the bodies of Lieutenant-Commander George W.
De Long and his companions of the Jeannette expedition. This removal
has been successfully accomplished by Lieutenants Harber and
Schuetze. The remains were taken from their grave in the Lena Delta
in March, 1883, and were retained at Yakutsk until the following
winter, the season being too far advanced to admit of their immediate
transportation. They arrived at New York February 20, 1884, where they
were received with suitable honors. 

In pursuance of the joint resolution of Congress approved February
13, 1884, a naval expedition was fitted out for the relief of
Lieutenant A. W. Greely, United States Army, and of the party who had
been engaged under his command in scientific observations at Lady
Franklin Bay. The fleet consisted of the steam sealer Thetis,
purchased in England; the Bear, purchased at St. Johns, Newfoundland,
and the Alert, which was generously provided by the British
Government. Preparations for the expedition were promptly made by the
Secretary of the Navy, with the active cooperation of the Secretary of
War. Commander George W. Coffin was placed in command of the Alert and
Lieutenant William H. Emory in command of the Bear. The Thetis was
intrusted to Commander Winfield S. Schley, to whom also was assigned
the superintendence of the entire expedition. 

Immediately upon its arrival at Upernavik the fleet began the
dangerous navigation of Melville Bay, and in spite of every obstacle
reached Littleton Island on June 22, a fortnight earlier than any
vessel had before attained that point. On the same day it crossed
over to Cape Sabine, where Lieutenant Greely and the other survivors
of his party were discovered. After taking on board the living and
the bodies of the dead, the relief ships sailed for St. Johns, where
they arrived on July 17. They were appropriately received at
Portsmouth, N. H., on August 1 and at New York on August 8. One of
the bodies was landed at the former place. The others were put on
shore at Governors Island, and, with the exception of one, which was
interred in the national cemetery, were forwarded thence to the
destinations indicated by friends. The organization and conduct of
this relief expedition reflects great credit upon all who contributed
to its success. 

In this the last of the stated messages that I shall have the honor
to transmit to the Congress of the United States I can not too
strongly urge upon its attention the duty of restoring our Navy as
rapidly as possible to the high state of efficiency which formerly
characterized it. As the long peace that has lulled us into a sense
of fancied security may at any time be disturbed, it is plain that
the policy of strengthening this arm of the service is dictated by
considerations of wise economy, of just regard for our future
tranquillity, and of true appreciation of the dignity and honor of
the Republic. 

The report of the Postmaster-General acquaints you with the present
condition and needs of the postal service. 

It discloses the gratifying fact that the loss of revenue from the
reduction in the rate of letter postage recommended in my message of
December 4, 1882, and effected by the act of March 3, 1883, has been
much less than was generally anticipated. My recommendation of this
reduction was based upon the belief that the actual falling off in
receipts from letter postages for the year immediately succeeding the
change of rate would be $3,000,000. It has proved to be only
$2,275,000. 

This is a trustworthy indication that the revenue will soon be
restored to its former volume by the natural increase of sealed
correspondence. 

I confidently repeat, therefore, the recommendation of my last annual
message that the single-rate postage upon drop letters be reduced to 1
cent wherever the payment of 2 cents is now required by law. The
double rate is only exacted at offices where the carrier system is in
operation, and it appears that at those offices the increase in the
tax upon local letters defrays the cost not only of its own
collection and delivery, but of the collection and delivery of all
other mail matter. This is an inequality that ought no longer to
exist. 

I approve the recommendation of the Postmaster-General that the unit
of weight in the rating of first-class matter should be 1 ounce
instead of one-half ounce, as it now is. In view of the statistics
furnished by the Department, it may well be doubted whether the
change would result in any loss of revenue. That it would greatly
promote the convenience of the public is beyond dispute. 

The free-delivery system has been lately applied to five cities, and
the total number of offices in which it is now in operation is 159.
Experience shows that its adoption, under proper conditions, is
equally an accommodation to the public and an advantage to the postal
service. It is more than self-sustaining, and for the reasons urged by
the Postmaster-General may properly be extended. 

In the opinion of that officer it is important to provide means
whereby exceptional dispatch in dealing with letters in free-delivery
offices may be secured by payment of extraordinary postage. This
scheme might be made effective by employment of a special stamp whose
cost should be commensurate with the expense of the extra service. 

In some of the large cities private express companies have undertaken
to outstrip the Government mail carriers by affording for the prompt
transmission of letters better facilities than have hitherto been at
the command of the Post-Office. 

It has always been the policy of the Government to discourage such
enterprises, and in no better mode can that policy be maintained than
in supplying the public with the most efficient mail service that,
with due regard to its own best interests, can be furnished for its
accommodation. 

The Attorney-General renews the recommendation contained in his
report of last year touching the fees of witnesses and jurors. 

He favors radical changes in the fee bill, the adoption of a system
by which attorneys and marshals of the United States shall be
compensated solely by salaries, and the erection by the Government of
a penitentiary for the confinement of offenders against its laws. 

Of the varied governmental concerns in charge of the Interior
Department the report of its Secretary presents an interesting
summary. Among the topics deserving particular attention I refer you
to his observations respecting our Indian affairs, the preemption and
timber-culture acts, the failure of railroad companies to take title
to lands granted by the Government, and the operations of the Pension
Office, the Patent Office, the Census Bureau, and the Bureau of
Education. 

Allusion has been made already to the circumstance that, both as
between the different Indian tribes and as between the Indians and
the whites, the past year has been one of unbroken peace. 

In this circumstance the President is glad to find justification for
the policy of the Government in its dealing with the Indian question
and confirmation of the views which were fully expressed in his first
communication to the Forty-seventh Congress. 

The Secretary urges anew the enactment of a statute for the
punishment of crimes committed on the Indian reservations, and
recommends the passage of the bill now pending in the House of
Representatives for the purchase of a tract of 18,000 square miles
from the Sioux Reservation. Both these measures are worthy of
approval. 

I concur with him also in advising the repeal of the preemption law,
the enactment of statutes resolving the present legal complications
touching lapsed grants to railroad companies, and the funding of the
debt of the several Pacific railroads under such guaranty as shall
effectually secure its ultimate payment. 

The report of the Utah Commission will be read with interest. 

It discloses the results of recent legislation looking to the
prevention and punishment of polygamy in that Territory. I still
believe that if that abominable practice can be suppressed by law it
can only be by the most radical legislation consistent with the
restraints of the Constitution. 

I again recommend, therefore, that Congress assume absolute political
control of the Territory of Utah and provide for the appointment of
commissioners with such governmental powers as in its judgment may
justly and wisely be put into their hands. 

In the course of this communication reference has more than once been
made to the policy of this Government as regards the extension of our
foreign trade. It seems proper to declare the general principles that
should, in my opinion, underlie our national efforts in this
direction. 

The main conditions of the problem may be thus stated: 

We are a people apt in mechanical pursuits and fertile in invention.
We cover a vast extent of territory rich in agricultural products and
in nearly all the raw materials necessary for successful manufacture.
We have a system of productive establishments more than sufficient to
supply our own demands. The wages of labor are nowhere else so great.
The scale of living of our artisan classes is such as tends to secure
their personal comfort and the development of those higher moral and
intellectual qualities that go to the making of good citizens. Our
system of tax and tariff legislation is yielding a revenue which is
in excess of the present needs of the Government. 

These are the elements from which it is sought to devise a scheme by
which, without unfavorably changing the condition of the workingman,
our merchant marine shall be raised from its enfeebled condition and
new markets provided for the sale beyond our borders of the manifold
fruits of our industrial enterprises. 

The problem is complex and can be solved by no single measure of
innovation or reform. 

The countries of the American continent and the adjacent islands are
for the United States the natural marts of supply and demand. It is
from them that we should obtain what we do not produce or do not
produce in sufficiency, and it is to them that the surplus
productions of our fields, our mills, and our workshops should flow,
under conditions that will equalize or favor them in comparison with
foreign competition. 

Four paths of policy seem to point to this end: 

First. A series of reciprocal commercial treaties with the countries
of America which shall foster between us and them an unhampered
movement of trade. The conditions of these treaties should be the
free admission of such merchandise as this country does not produce,
in return for the admission free or under a favored scheme of duties
of our own products, the benefits of such exchange to apply only to
goods carried under the flag of the parties to the contract; the
removal on both sides from the vessels so privileged of all tonnage
dues and national imposts, so that those vessels may ply unhindered
between our ports and those of the other contracting parties, though
without infringing on the reserved home coasting trade; the removal
or reduction of burdens on the exported products of those countries
coming within the benefits of the treaties, and the avoidance of the
technical restrictions and penalties by which our intercourse with
those countries is at present hampered. 

Secondly. The establishment of the consular service of the United
States on a salaried footing, thus permitting the relinquishment of
consular fees not only as respects vessels under the national flag,
but also as respects vessels of the treaty nations carrying goods
entitled to the benefits of the treaties. 

Thirdly. The enactment of measures to favor the construction and
maintenance of a steam carrying marine under the flag of the United
States. 

Fourthly. The establishment of an uniform currency basis for the
countries of America, so that the coined products of our mines may
circulate on equal terms throughout the whole system of
commonwealths. This would require a monetary union of America,
whereby the output of the bullion-producing countries and the
circulation of those which yield neither gold nor silver could be
adjusted in conformity with the population, wealth, and commercial
needs of each. As many of the countries furnish no bullion to the
common stock, the surplus production of our mines and mints might
thus be utilized and a step taken toward the general remonetization
of silver. 

To the accomplishment of these ends, so far as they can be attained
by separate treaties, the negotiations already concluded and now in
progress have been directed; and the favor which this enlarged policy
has thus far received warrants the belief that its operations will ere
long embrace all, or nearly all, the countries of this hemisphere. 

It is by no means desirable, however, that the policy under
consideration should be applied to these countries alone. The
healthful enlargement of our trade with Europe, Asia, and Africa
should be sought by reducing tariff burdens on such of their wares as
neither we nor the other American States are fitted to produce, and
thus enabling ourselves to obtain in return a better market for our
supplies of food, of raw materials, and of the manufactures in which
we excel. 

It seems to me that many of the embarrassing elements in the great
national conflict between protection and free trade may thus be
turned to good account; that the revenue may be reduced so as no
longer to overtax the people; that protective duties may be retained
without becoming burdensome; that our shipping interests may be
judiciously encouraged, the currency fixed on firm bases, and, above
all, such an unity of interests established among the States of the
American system as will be of great and ever-increasing advantage to
them all. 

All treaties in the line of this policy which have been negotiated or
are in process of negotiation contain a provision deemed to be
requisite under the clause of the Constitution limiting to the House
of Representatives the authority to originate bills for raising
revenue. 

On the 29th of February last I transmitted to the Congress the first
annual report of the Civil Service Commission, together with
communications from the heads of the several Executive Departments of
the Government respecting the practical workings of the law under
which the Commission had been acting. The good results therein
foreshadowed have been more than realized. 

The system has fully answered the expectations of its friends in
securing competent and faithful public servants and in protecting the
appointing officers of the Government from the pressure of personal
importunity and from the labor of examining the claims and
pretensions of rival candidates for public employment. 

The law has had the unqualified support of the President and of the
heads of the several Departments, and the members of the Commission
have performed their duties with zeal and fidelity. Their report will
shortly be submitted, and will be accompanied by such recommendations
for enlarging the scope of the existing statute as shall commend
themselves to the Executive and the Commissioners charged with its
administration. 

In view of the general and persistent demand throughout the
commercial community for a national bankrupt law, I hope that the
differences of sentiment which have hitherto prevented its enactment
may not outlast the present session. 

The pestilence which for the past two years has been raging in the
countries of the East recently made its appearance in European ports
with which we are in constant communication. 

The then Secretary of the Treasury, in pursuance of a proclamation of
the President, issued certain regulations restricting and for a time
prohibiting the importation of rags and the admission of baggage of
immigrants and of travelers arriving from infected quarters. Lest
this course may have been without strict warrant of law, I approve
the recommendation of the present Secretary that the Congress take
action in the premises, and I also recommend the immediate adoption
of such measures as will be likely to ward off the dreaded epidemic
and to mitigate its severity in case it shall unhappily extend to our
shores. 

The annual report of the Commissioners of the District of Columbia
reviews the operations of the several departments of its municipal
government. I ask your careful consideration of its suggestions in
respect to legislation, especially commending such as relate to a
revision of the civil and criminal code, the performance of labor by
persons sentenced to imprisonment in the jail, the construction and
occupation of wharves along the river front, and the erection of a
suitable building for District offices. 

I recommend that in recognition of the eminent services of Ulysses S.
Grant, late General of the armies of the United States and twice
President of this nation, the Congress confer upon him a suitable
pension. 

Certain of the measures that seem to me necessary and expedient I
have now, in obedience to the Constitution, recommended for your
adoption. 

As respects others of no less importance I shall content myself with
renewing the recommendations already made to the Congress, without
restating the grounds upon which such recommendations were based. 

The preservation of forests on the public domain, the granting of
Government aid for popular education, the amendment of the Federal
Constitution so as to make effective the disapproval by the President
of particular items in appropriation bills, the enactment of statutes
in regard to the filling of vacancies in the Presidential office, and
the determining of vexed questions respecting Presidential inability
are measures which may justly receive your serious consideration. 

As the time draws nigh when I am to retire from the public service, I
can not refrain from expressing to the members of the National
Legislature with whom I have been brought into personal and official
intercourse my sincere appreciation of their unfailing courtesy and
of their harmonious cooperation with the Executive in so many
measures calculated to promote the best interests of the nation. 

And to my fellow-citizens generally I acknowledge a deep sense of
obligation for the support which they have accorded me in my
administration of the executive department of this Government.