Speech Transcript:

 To the Senate and House of Representatives:

The reports of the several Executive Departments, which will be laid
before Congress in the usual course, will exhibit in detail the
operations of the Government for the last fiscal year. Only the more
important incidents and results, and chiefly such as may be the
foundation of the recommendations I shall submit, will be referred to
in this annual message.

The vast and increasing business of the Government has been
transacted by the several Departments during the year with
faithfulness, energy, and success.

The revenues, amounting to above $450,000,000, have been collected
and disbursed without revealing, so far as I can ascertain, a single
case of defalcation or embezzlement. An earnest effort has been made
to stimulate a sense of responsibility and public duty in all
officers and employees of every grade, and the work done by them has
almost wholly escaped unfavorable criticism. I speak of these matters
with freedom because the credit of this good work is not mine, but is
shared by the heads of the several Departments with the great body of
faithful officers and employees who serve under them. The closest
scrutiny of Congress is invited to all the methods of administration
and to every item of expenditure.

The friendly relations of our country with the nations of Europe and
of the East have been undisturbed, while the ties of good will and
common interest that bind us to the States of the Western Hemisphere
have been notably strengthened by the conference held in this capital
to consider measures for the general welfare. Pursuant to the
invitation authorized by Congress, the representatives of every
independent State of the American continent and of Hayti met in
conference in this capital in October, 1889, and continued in session
until the 19th of last April. This important convocation marks a most
interesting and influential epoch in the history of the Western
Hemisphere. It is noteworthy that Brazil, invited while under an
imperial form of government, shared as a republic in the
deliberations and results of the conference. The recommendations of
this conference were all transmitted to Congress at the last
session.

The International Marine Conference, which sat at Washington last
winter, reached a very gratifying result. The regulations suggested
have been brought to the attention of all the Governments
represented, and their general adoption is confidently expected. The
legislation of Congress at the last session is in conformity with the
propositions of the conference, and the proclamation therein provided
for will be issued when the other powers have given notice of their
adhesion.

The Conference of Brussels, to devise means for suppressing the slave
trade in Africa, afforded an opportunity for a new expression of the
interest the American people feel in that great work. It soon became
evident that the measure proposed would tax the resources of the
Kongo Basin beyond the revenues available under the general act of
Berlin of 1884. The United States, not being a party to that act,
could not share in its revision, but by a separate act the
Independent State of the Kongo was freed from the restrictions upon a
customs revenue. The demoralizing and destructive traffic in ardent
spirits among the tribes also claimed the earnest attention of the
conference, and the delegates of the United States were foremost in
advocating measures for its repression. An accord was reached the
influence of which will be very helpful and extend over a wide
region. As soon as these measures shall receive the sanction of the
Netherlands, for a time withheld, the general acts will be submitted
for ratification by the Senate. Meanwhile negotiations have been
opened for a new and completed treaty of friendship, commerce, and
navigation between the United States and the Independent State of the
Kongo.

Toward the end of the past year the only independent monarchical
government on the Western Continent, that of Brazil, ceased to exist,
and was succeeded by a republic. Diplomatic relations were at once
established with the new Government, but it was not completely
recognized until an opportunity had been afforded to ascertain that
it had popular approval and support. When the course of events had
yielded assurance of this fact, no time was lost in extending to the
new Government a full and cordial welcome into the family of American
Commonwealths. It is confidently believed that the good relations of
the two countries will be preserved and that the future will witness
an increased intimacy of intercourse and an expansion of their mutual
commerce.

The peace of Central America has again been disturbed through a
revolutionary change in Salvador, which was not recognized by other
States, and hostilities broke out between Salvador and Guatemala,
threatening to involve all Central America in conflict and to undo
the progress which had been made toward a union of their interests.
The efforts of this Government were promptly and zealously exerted to
compose their differences, and through the active efforts of the
representative of the United States a provisional treaty of peace was
signed August 26, whereby the right of the Republic of Salvador to
choose its own rulers was recognized. General Ezeta, the chief of the
Provisional Government, has since been confirmed in the Presidency by
the Assembly, and diplomatic recognition duly followed.

The killing of General Barrundia on board the Pacific mail steamer
Acapulco, while anchored in transit in the port of San Jose de
Guatemala, demanded careful inquiry. Having failed in a revolutionary
attempt to invade Guatemala from Mexican territory, General Barrundia
took passage at Acapulco for Panama. The consent of the
representatives of the United States was sought to effect his
seizure, first at Champerico, where the steamer touched, and
afterwards at San Jose. The captain of the steamer refused to give up
his passenger without a written order from the United States minister.
The latter furnished the desired letter, stipulating as the condition
of his action that General Barrundia's life should be spared and that
he should be tried only for offenses growing out of his
insurrectionary movements. This letter was produced to the captain of
the Acapulco by the military commander at San Jose as his warrant to
take the passenger from the steamer. General Barrundia resisted
capture and was killed. It being evident that the minister, Mr.
Mizner, had exceeded the bounds of his authority in intervening, in
compliance with the demands of the Guatemalan authorities, to
authorize and effect, in violation of precedent, the seizure on a
vessel of the United States of a passenger in transit charged with
political offenses, in order that he might be tried for such offenses
under what was described as martial law, I was constrained to disavow
Mr. Mizner's act and recall him from his post.

The Nicaragua Canal project, under the control of our citizens, is
making most encouraging progress, all the preliminary conditions and
initial operations having been accomplished within the prescribed
time.

During the past year negotiations have been renewed for the
settlement of the claims of American citizens against the Government
of Chile, principally growing out of the late war with Peru. The
reports from our minister at Santiago warrant the expectation of an
early and satisfactory adjustment.

Our relations with China, which have for several years occupied so
important a place in our diplomatic history, have called for careful
consideration and have been the subject of much correspondence.

The communications of the Chinese minister have brought into view the
whole subject of our conventional relations with his country, and at
the same time this Government, through its legation at Peking, has
sought to arrange various matters and complaints touching the
interests and protection of our citizens in China.

In pursuance of the concurrent resolution of October 1, 1890, I have
proposed to the Governments of Mexico and Great Britain to consider a
conventional regulation of the passage of Chinese laborers across our
southern and northern frontiers.

On the 22d day of August last Sir Edmund Monson, the arbitrator
selected under the treaty of December 6, 1888, rendered an award to
the effect that no compensation was due from the Danish Government to
the United States on account of what is commonly known as the Carlos
Butterfield claim.

Our relations with the French Republic continue to be cordial. Our
representative at that court has very diligently urged the removal of
the restrictions imposed upon our meat products, and it is believed
that substantial progress has been made toward a just settlement.

The Samoan treaty, signed last year at Berlin by the representatives
of the United States, Germany, and Great Britain, after due
ratification and exchange, has begun to produce salutary effects. The
formation of the government agreed upon will soon replace the disorder
of the past by a stable administration alike just to the natives and
equitable to the three powers most concerned in trade and intercourse
with the Samoan Islands. The chief justice has been chosen by the King
of Sweden and Norway on the invitation of the three powers, and will
soon be installed. The land commission and the municipal council are
in process of organization. A rational and evenly distributed scheme
of taxation, both municipal and upon imports, is in operation.
Malietoa is respected as King.

The new treaty of extradition with Great Britain, after due
ratification, was proclaimed on the 25th of last March. Its
beneficial working is already apparent.

The difference between the two Governments touching the fur-seal
question in the Bering Sea is not yet adjusted, as will be seen by
the correspondence which will soon be laid before the Congress. The
offer to submit the question to arbitration, as proposed by Her
Majesty's Government, has not been accepted, for the reason that the
form of submission proposed is not thought to be calculated to assure
a conclusion satisfactory to either party. It is sincerely hoped that
before the opening of another sealing season some arrangement may be
effected which will assure to the United States a property right
derived from Russia, which was not disregarded by any nation for more
than eighty years preceding the outbreak of the existing trouble.

In the tariff act a wrong was done to the Kingdom of Hawaii which I
am bound to presume was wholly unintentional. Duties were levied on
certain commodities which are included in the reciprocity treaty now
existing between the United States and the Kingdom of Hawaii, without
indicating the necessary exception in favor of that Kingdom. I hope
Congress will repair what might otherwise seem to be a breach of
faith on the part of this Government.

An award in favor of the United States in the matter of the claim of
Mr. Van Bokkelen against Hayti was rendered on the 4th of December,
1888, but owing to disorders then and afterwards prevailing in Hayti
the terms of payment were not observed. A new agreement as to the
time of payment has been approved and is now in force. Other just
claims of citizens of the United States for redress of wrongs
suffered during the late political conflict in Hayti will, it is
hoped, speedily yield to friendly treatment.

Propositions for the amendment of the treaty of extradition between
the United States and Italy are now under consideration.

You will be asked to provide the means of accepting the invitation of
the Italian Government to take part in an approaching conference to
consider the adoption of a universal prime meridian from which to
reckon longitude and time. As this proposal follows in the track of
the reform sought to be initiated by the Meridian Conference of
Washington, held on the invitation of this Government, the United
States should manifest a friendly interest in the Italian proposal.

In this connection I may refer with approval to the suggestion of my
predecessors that standing provision be made for accepting, whenever
deemed advisable, the frequent invitations of foreign governments to
share in conferences looking to the advancement of international
reforms in regard to science, sanitation, commercial laws and
procedure, and other matters affecting the intercourse and progress
of modern communities.

In the summer of 1889 an incident occurred which for some time
threatened to interrupt the cordiality of our relations with the
Government of Portugal. That Government seized the Delagoa Bay
Railway, which was constructed under a concession granted to an
American citizen, and at the same time annulled the charter. The
concessionary, who had embarked his fortune in the enterprise, having
exhausted other means of redress, was compelled to invoke the
protection of his Government. Our representations, made coincidently
with those of the British Government, whose subjects were also
largely interested, happily resulted in the recognition by Portugal
of the propriety of submitting the claim for indemnity growing out of
its action to arbitration. This plan of settlement having been agreed
upon, the interested powers readily concurred in the proposal to
submit the case to the judgment of three eminent jurists, to be
designated by the President of the Swiss Republic, who, upon the
joint invitation of the Governments of the United States, Great
Britain, and Portugal, has selected persons well qualified for the
task before them.

The revision of our treaty relations with the Empire of Japan has
continued to be the subject of consideration and of correspondence.
The questions involved are both grave and delicate; and while it will
be my duty to see that the interests of the United States are not by
any changes exposed to undue discrimination, I sincerely hope that
such revision as will satisfy the legitimate expectations of the
Japanese Government and maintain the present and long-existing
friendly relations between Japan and the United States will be
effected.

The friendship between our country and Mexico, born of close
neighborhood and strengthened by many considerations of intimate
intercourse and reciprocal interest, has never been more conspicuous
than now nor more hopeful of increased benefit to both nations. The
intercourse of the two countries by rail, already great, is making
constant growth. The established lines and those recently projected
add to the intimacy of traffic and open new channels of access to
fresh areas of demand and supply. The importance of the Mexican
railway system will be further enhanced to a degree almost impossible
to forecast if it should become a link in the projected
intercontinental railway. I recommend that our mission in the City of
Mexico be raised to the first class.

The cordial character of our relations with Spain warrants the hope
that by the continuance of methods of friendly negotiation much may
be accomplished in the direction of an adjustment of pending
questions and of the increase of our trade. The extent and
development of our trade with the island of Cuba invest the
commercial relations of the United States and Spain with a peculiar
importance. It is not doubted that a special arrangement in regard to
commerce, based upon the reciprocity provision of the recent tariff
act, would operate most beneficially for both Governments. This
subject is now receiving attention.

The restoration of the remains of John Ericsson to Sweden afforded a
gratifying occasion to honor the memory of the great inventor, to
whose genius our country owes so much, and to bear witness to the
unbroken friendship which has existed between the land which bore him
and our own, which claimed him as a citizen.

On the 2d of September last the commission appointed to revise the
proceedings of the commission under the claims convention between the
United States and Venezuela of 1866 brought its labors to a close
within the period fixed for that purpose. The proceedings of the late
commission were characterized by a spirit of impartiality and a high
sense of justice, and an incident which was for many years the
subject of discussion between the two Governments has been disposed
of in a manner alike honorable and satisfactory to both parties. For
the settlement of the claim of the Venezuela Steam Transportation
Company, which was the subject of a joint resolution adopted at the
last session of Congress, negotiations are still in progress, and
their early conclusion is anticipated.

The legislation of the past few years has evinced on the part of
Congress a growing realization of the importance of the consular
service in fostering our commercial relations abroad and in
protecting the domestic revenues. As the scope of operations expands
increased provision must be made to keep up the essential standard of
efficiency. The necessity of some adequate measure of supervision and
inspection has been so often presented that I need only commend the
subject to your attention.

The revenues of the Government from all sources for the fiscal year
ending June 30, 1890, were $463,963,080.55 and the total expenditures
for the same period were $358,618,584.52. The postal receipts have not
heretofore been included in the statement of these aggregates, and for
the purpose of comparison the sum of $60,882,097.92 should be deducted
from both sides of the account. The surplus for the year, including
the amount applied to the sinking fund, was $105,344,496.03. The
receipts for 1890 were $16,030,923.79 and the expenditures
$15,739,871 in excess of those of 1889. The customs receipts
increased $5,835,842.88 and the receipts from internal revenue
$11,725,191.89, while on the side of expenditures that for pensions
was $19,312,075.96 in excess of the preceding year.

The Treasury statement for the current fiscal year, partly actual and
partly estimated, is as follows: Receipts from all sources,
$406,000,000; total expenditures, $354,000,000, leaving a surplus of
$52,000,000, not taking the postal receipts into the account on
either side. The loss of revenue from customs for the last quarter is
estimated at $25,000,000, but from this is deducted a gain of about
$16,000,000 realized during the first four months of the year.

For the year 1892 the total estimated receipts are $373,000,000 and
the estimated expenditures $357,852,209.42, leaving an estimated
surplus of $15,247,790.58, which, with a cash balance of $52,000,000
at the beginning of the year, will give $67,247,790.58 as the sum
available for the redemption of outstanding bonds or other uses. The
estimates of receipts and expenditures for the Post-Office
Department, being equal, are not included in this statement on either
side.

The act "directing the purchase of silver bullion and the issue of
Treasury notes thereon," approved July 14, 1890, has been
administered by the Secretary of the Treasury with an earnest purpose
to get into circulation at the earliest possible dates the full
monthly amounts of Treasury notes contemplated by its provisions and
at the same time to give to the market for the silver bullion such
support as the law contemplates. The recent depreciation in the price
of silver has been observed with regret. The rapid rise in price which
anticipated and followed the passage of the act was influenced in some
degree by speculation, and the recent reaction is in part the result
of the same cause and in part of the recent monetary disturbances.
Some months of further trial will be necessary to determine the
permanent effect of the recent legislation upon silver values, but it
is gratifying to know that the increased circulation secured by the
act has exerted, and will continue to exert, a most beneficial
influence upon business and upon general values.

While it has not been thought best to renew formally the suggestion
of an international conference looking to an agreement touching the
full use of silver for coinage at a uniform ratio, care has been
taken to observe closely any change in the situation abroad, and no
favorable opportunity will be lost to promote a result which it is
confidently believed would confer very large benefits upon the
commerce of the world.

The recent monetary disturbances in England are not unlikely to
suggest a reexamination of opinions upon this subject. Our very large
supply of gold will, if not lost by impulsive legislation in the
supposed interest of silver, give us a position of advantage in
promoting a permanent and safe international agreement for the free
use of silver as a coin metal.

The efforts of the Secretary to increase the volume of money in
circulation by keeping down the Treasury surplus to the lowest
practicable limit have been unremitting and in a very high degree
successful. The tables presented by him showing the increase of money
in circulation during the last two decades, and especially the table
showing the increase during the nineteen months he has administered
the affairs of the Department, are interesting and instructive. The
increase of money in circulation during the nineteen months has been
in the aggregate $93,866,813, or about $1.50 per capita, and of this
increase only $7,100,000 was due to the recent silver legislation.
That this substantial and needed aid given to commerce resulted in an
enormous reduction of the public debt and of the annual interest
charge is matter of increased satisfaction. There have been purchased
and redeemed since March 4, 1889, 4 and 4 1\2 per cent bonds to the
amount of $211,832,450, at a cost of $246,620,741, resulting in the
reduction of the annual interest charge of $8,967,609 and a total
saving of interest of $51,576,706.

I notice with great pleasure the statement of the Secretary that the
receipts from internal revenue have increased during the last fiscal
year nearly $12,000,000, and that the cost of collecting this larger
revenue was less by $90,617 than for the same purpose in the
preceding year. The percentage of cost of collecting the customs
revenue was less for the last fiscal year than ever before.

The Customs Administration Board, provided for by the act of June 10,
1890, was selected with great care, and is composed in part of men
whose previous experience in the administration of the old customs
regulations had made them familiar with the evils to be remedied, and
in part of men whose legal and judicial acquirements and experience
seemed to fit them for the work of interpreting and applying the new
statute. The chief aim of the law is to secure honest valuations of
all dutiable merchandise and to make these valuations uniform at all
our ports of entry. It had been made manifest by a Congressional
investigation that a system of undervaluation had been long in use by
certain classes of importers, resulting not only in a great loss of
revenue, but in a most intolerable discrimination against honesty. It
is not seen how this legislation, when it is understood, can be
regarded by the citizens of any country having commercial dealings
with us as unfriendly. If any duty is supposed to be excessive, let
the complaint be lodged there. It will surely not be claimed by any
well-disposed people that a remedy may be sought and allowed in a
system of quasi smuggling.

The report of the Secretary of War exhibits several gratifying
results attained during the year by wise and unostentatious methods.
The percentage of desertions from the Army (an evil for which both
Congress and the Department have long been seeking a remedy) has been
reduced during the past year 24 per cent, and for the months of August
and September, during which time the favorable effects of the act of
June 16 were felt, 33 per cent, as compared with the same months of
1889.

The results attained by a reorganization and consolidation of the
divisions having charge of the hospital and service records of the
volunteer soldiers are very remarkable. This change was effected in
July, 1889, and at that time there were 40,654 cases awaiting
attention, more than half of these being calls from the Pension
Office for information necessary to the adjudication of pension
claims. On the 30th day of June last, though over 300,000 new calls
had come in, there was not a single case that had not been examined
and answered.

I concur in the recommendations of the Secretary that adequate and
regular appropriations be continued for coast-defense works and
ordnance. Plans have been practically agreed upon, and there can be
no good reason for delaying the execution of them, while the
defenseless state of our great seaports furnishes an urgent reason
for wise expedition.

The encouragement that has been extended to the militia of the
States, generally and most appropriately designated the "National
Guard," should be continued and enlarged. These military
organizations constitute in a large sense the Army of the United
States, while about five-sixths of the annual cost of their
maintenance is defrayed by the States.

The report of the Attorney-General is under the law submitted
directly to Congress, but as the Department of Justice is one of the
Executive Departments some reference to the work done is appropriate
here.

A vigorous and in the main an effective effort has been made to bring
to trial and punishment all violators of the law, but at the same time
care has been taken that frivolous and technical offenses should not
be used to swell the fees of officers or to harass well-disposed
citizens. Especial attention is called to the facts connected with
the prosecution of violations of the election laws and of offenses
against United States officers. The number of convictions secured,
very many of them upon pleas of guilty, will, it is hoped, have a
salutary restraining influence. There have been several cases where
postmasters appointed by me have been subjected to violent
interference in the discharge of their official duties and to
persecutions and personal violence of the most extreme character.
Some of these cases have been dealt with through the Department of
Justice, and in some cases the post-offices have been abolished or
suspended. I have directed the Postmaster-General to pursue this
course in all cases where other efforts failed to secure for any
postmaster not himself in fault an opportunity peacefully to exercise
the duties of his office. But such action will not supplant the
efforts of the Department of Justice to bring the particular
offenders to punishment.

The vacation by judicial decrees of fraudulent certificates of
naturalization, upon bills in equity filed by the Attorney-General in
the circuit court of the United States, is a new application of a
familiar equity jurisdiction. Nearly one hundred such decrees have
been taken during the year, the evidence disclosing that a very large
number of fraudulent certificates of naturalization have been issued.
And in this connection I beg to renew my recommendation that the laws
be so amended as to require a more full and searching inquiry into all
the facts necessary to naturalization before any certificates are
granted. It certainly is not too much to require that an application
for American citizenship shall be heard with as much care and
recorded with as much formality as are given to cases involving the
pettiest property right.

At the last session I returned without my approval a bill entitled
"An act to prohibit bookmaking and pool selling in the District of
Columbia," and stated my objection to be that it did not prohibit but
in fact licensed what it purported to prohibit. An effort will be made
under existing laws to suppress this evil, though it is not certain
that they will be found adequate.

The report of the Postmaster-General shows the most gratifying
progress in the important work committed to his direction. The
business methods have been greatly improved. A large economy in
expenditures and an increase of four and three-quarters millions in
receipts have been realized. The deficiency this year is $5,786,300,
as against $6,350,183 last year, notwithstanding the great
enlargement of the service. Mail routes have been extended and
quickened and greater accuracy and dispatch in distribution and
delivery have been attained. The report will be found to be full of
interest and suggestion, not only to Congress, but to those
thoughtful citizens who may be interested to know what business
methods can do for that department of public administration which
most nearly touches all our people.

The passage of the act to amend certain sections of the Revised
Statutes relating to lotteries, approved September 19, 1890, has been
received with great and deserved popular favor. The Post-Office
Department and the Department of Justice at once entered upon the
enforcement of the law with sympathetic vigor, and already the public
mails have been largely freed from the fraudulent and demoralizing
appeals and literature emanating from the lottery companies.

The construction and equipment of the new ships for the Navy have
made very satisfactory progress. Since March 4, 1889, nine new
vessels have been put in commission, and during this winter four
more, including one monitor, will be added. The construction of the
other vessels authorized is being pushed both in the Government and
private yards with energy and watched with the most scrupulous care.

The experiments conducted during the year to test the relative
resisting power of armor plates have been so valuable as to attract
great attention in Europe. The only part of the work upon the new
ships that is threatened by unusual delay is the armor plating, and
every effort is being made to reduce that to the minimum. It is a
source of congratulation that the anticipated influence of these
modern vessels upon the esprit de corps of the officers and seamen
has been fully realized. Confidence and pride in the ship among the
crew are equivalent to a secondary battery. Your favorable
consideration is invited to the recommendations of the Secretary.

The report of the Secretary of the Interior exhibits with great
fullness and clearness the vast work of that Department and the
satisfactory results attained. The suggestions made by him are
earnestly commended to the consideration of Congress, though they can
not all be given particular mention here.

The several acts of Congress looking to the reduction of the larger
Indian reservations, to the more rapid settlement of the Indians upon
individual allotments, and the restoration to the public domain of
lands in excess of their needs have been largely carried into effect
so far as the work was confided to the Executive. Agreements have
been concluded since March 4, 1889, involving the cession to the
United States of about 14,726,000 acres of land. These contracts
have, as required by law, been submitted to Congress for ratification
and for the appropriations necessary to carry them into effect. Those
with the Sisseton and Wahpeton, Sac and Fox, Iowa, Pottawatomies and
Absentee Shawnees, and Coeur d'Alene tribes have not yet received the
sanction of Congress. Attention is also called to the fact that the
appropriations made in the case of the Sioux Indians have not covered
all the stipulated payments. This should be promptly corrected. If an
agreement is confirmed, all of its terms should be complied with
without delay and full appropriations should be made.

The policy outlined in my last annual message in relation to the
patenting of lands to settlers upon the public domain has been
carried out in the administration of the Land Office. No general
suspicion or imputation of fraud has been allowed to delay the
hearing and adjudication of individual cases upon their merits. The
purpose has been to perfect the title of honest settlers with such
promptness that the value of the entry might not be swallowed up by
the expense and extortions to which delay subjected the claimant. The
average monthly issue of agricultural patents has been increased about
6,000.

The disability-pension act, which was approved on the 27th of June
last, has been put into operation as rapidly as was practicable. The
increased clerical force provided was selected and assigned to work,
and a considerable part of the force engaged in examinations in the
field was recalled and added to the working force of the office. The
examination and adjudication of claims have by reason of improved
methods been more rapid than ever before. There is no economy to the
Government in delay, while there is much hardship and injustice to
the soldier. The anticipated expenditure, while very large, will not,
it is believed, be in excess of the estimates made before the
enactment of the law. This liberal enlargement of the general law
should suggest a more careful scrutiny of bills for special relief,
both as to the cases where relief is granted and as to the amount
allowed.

The increasing numbers and influence of the non-Mormon population of
Utah are observed with satisfaction. The recent letter of Wilford
Woodruff, president of the Mormon Church, in which he advised his
people "to refrain from contracting any marriage forbidden by the
laws of the land," has attracted wide attention, and it is hoped that
its influence will be highly beneficial in restraining infractions of
the laws of the United States. But the fact should not be overlooked
that the doctrine or belief of the church that polygamous marriages
are rightful and supported by divine revelation remains unchanged.
President Woodruff does not renounce the doctrine, but refrains from
teaching it, and advises against the practice of it because the law
is against it. Now, it is quite true that the law should not attempt
to deal with the faith or belief of anyone; but it is quite another
thing, and the only safe thing, so to deal with the Territory of Utah
as that those who believe polygamy to be rightful shall not have the
power to make it lawful.

The admission of the States of Wyoming and Idaho to the Union are
events full of interest and congratulation, not only to the people of
those States now happily endowed with a full participation in our
privileges and responsibilities, but to all our people. Another belt
of States stretches from the Atlantic to the Pacific.

The work of the Patent Office has won from all sources very high
commendation. The amount accomplished has been very largely
increased, and all the results have been such as to secure confidence
and consideration for the suggestions of the Commissioner.

The enumeration of the people of the United States under the
provisions of the act of March 1, 1889, has been completed, and the
result will be at once officially communicated to Congress. The
completion of this decennial enumeration devolves upon Congress the
duty of making a new apportionment of Representatives "among the
several States according to their respective numbers."

At the last session I had occasion to return with my objections
several bills making provisions for the erection of public buildings
for the reason that the expenditures contemplated were, in my
opinion, greatly in excess of any public need. No class of
legislation is more liable to abuse or to degenerate into an unseemly
scramble about the public Treasury than this. There should be
exercised in this matter a wise economy, based upon some responsible
and impartial examination and report as to each case, under a general
law.

The report of the Secretary of Agriculture deserves especial
attention in view of the fact that the year has been marked in a very
unusual degree by agitation and organization among the farmers looking
to an increase in the profits of their business. It will be found that
the efforts of the Department have been intelligently and zealously
devoted to the promotion of the interests intrusted to its care.

A very substantial improvement in the market prices of the leading
farm products during the year is noticed. The price of wheat advanced
from 81 cents in October, 1889, to $1.00 3/4 in October, 1890; corn
from 31 cents to 50 1/4 cents; oats from 19 1/4 cents to 43 cents,
and barley from 63 cents to 78 cents. Meats showed a substantial but
not so large an increase. The export trade in live animals and fowls
shows a very large increase. The total value of such exports for the
year ending June 30, 1890, was $33,000,000, and the increase over the
preceding year was over $15,000,000. Nearly 200,000 more cattle and
over 45,000 more hogs were exported than in the preceding year. The
export trade in beef and pork products and in dairy products was very
largely increased, the increase in the article of butter alone being
from 15,504,978 pounds to 29,748,042 pounds, and the total increase
in the value of meat and dairy products exported being $34,000,000.
This trade, so directly helpful to the farmer, it is believed, will
be yet further and very largely increased when the system of
inspection and sanitary supervision now provided by law is brought
fully into operation.

The efforts of the Secretary to establish the healthfulness of our
meats against the disparaging imputations that have been put upon
them abroad have resulted in substantial progress. Veterinary
surgeons sent out by the Department are now allowed to participate in
the inspection of the live cattle from this country landed at the
English docks, and during the several months they have been on duty
no case of contagious pleuro-pneumonia has been reported. This
inspection abroad and the domestic inspection of live animals and
pork products provided for by the act of August 30, 1890, will afford
as perfect a guaranty for the wholesomeness of our meats offered for
foreign consumption as is anywhere given to any food product, and its
nonacceptance will quite clearly reveal the real motive of any
continued restriction of their use, and that having been made clear
the duty of the Executive will be very plain.

The information given by the Secretary of the progress and prospects
of the beet-sugar industry is full of interest. It has already passed
the experimental stage and is a commercial success. The area over
which the sugar beet can be successfully cultivated is very large,
and another field crop of great value is offered to the choice of the
farmer.

The Secretary of the Treasury concurs in the recommendation of the
Secretary of Agriculture that the official supervision provided by
the tariff law for sugar of domestic production shall be transferred
to the Department of Agriculture.

The law relating to the civil service has, so far as I can learn,
been executed by those having the power of appointment in the
classified service with fidelity and impartiality, and the service
has been increasingly satisfactory. The report of the Commission
shows a large amount of good work done during the year with very
limited appropriations.

I congratulate the Congress and the country upon the passage at the
first session of the Fifty-first Congress of an unusual number of
laws of very high importance. That the results of this legislation
will be the quickening and enlargement of our manufacturing
industries, larger and better markets for our breadstuffs and
provisions both at home and abroad, more constant employment and
better wages for our working people, and an increased supply of a
safe currency for the transaction of business, I do not doubt. Some
of these measures were enacted at so late a period that the
beneficial effects upon commerce which were in the contemplation of
Congress have as yet but partially manifested themselves.

The general trade and industrial conditions throughout the country
during the year have shown a marked improvement. For many years prior
to 1888 the merchandise balances of foreign trade had been largely in
our favor, but during that year and the year following they turned
against us. It is very gratifying to know that the last fiscal year
again shows a balance in our favor of over $68,000,000. The bank
clearings, which furnish a good test of the volume of business
transacted, for the first ten months of the year 1890 show as
compared with the same months of 1889 an increase for the whole
country of about 8.4 per cent, while the increase outside of the city
of New York was over 13 per cent. During the month of October the
clearings of the whole country showed an increase of 3.1 per cent
over October, 1889, while outside of New York the increase was 11.5
per cent. These figures show that the increase in the volume of
business was very general throughout the country. That this larger
business was being conducted upon a safe and profitable basis is
shown by the fact that there were 300 less failures reported in
October, 1890, than in the same month of the preceding year, with
liabilities diminished by about $5,000,000.

The value of our exports of domestic merchandise during the last year
was over $115,000,000 greater than the preceding year, and was only
exceeded once in our history. About $100,000,000 of this excess was
in agricultural products. The production of pig iron, always a good
gauge of general prosperity, is shown by a recent census bulletin to
have been 153 per cent greater in 1890 than in 1880, and the
production of steel 290 per cent greater. Mining in coal has had no
limitation except that resulting from deficient transportation. The
general testimony is that labor is everywhere fully employed, and the
reports for the last year show a smaller number of employees affected
by strikes and lockouts than in any year since 1884. The depression
in the prices of agricultural products had been greatly relieved and
a buoyant and hopeful tone was beginning to be felt by all our
people.

These promising influences have been in some degree checked by the
surprising and very unfavorable monetary events which have recently
taken place in England. It is gratifying to know that these did not
grow in any degree out of the financial relations of London with our
people or out of any discredit attached to our securities held in
that market. The return of our bonds and stocks was caused by a money
stringency in England, not by any loss of value or credit in the
securities themselves. We could not, however, wholly escape the ill
effects of a foreign monetary agitation accompanied by such
extraordinary incidents as characterized this. It is not believed,
however, that these evil incidents, which have for the time
unfavorably affected values in this country, can long withstand the
strong, safe, and wholesome influences which are operating to give to
our people profitable returns in all branches of legitimate trade and
industry. The apprehension that our tariff may again and at once be
subjected to important general changes would undoubtedly add a
depressing influence of the most serious character.

The general tariff act has only partially gone into operation, some
of its important provisions being limited to take effect at dates yet
in the future. The general provisions of the law have been in force
less than sixty days. Its permanent effects upon trade and prices
still largely stand in conjecture. It is curious to note that the
advance in the prices of articles wholly unaffected by the tariff act
was by many hastily ascribed to that act. Notice was not taken of the
fact that the general tendency of the markets was upward, from
influences wholly apart from the recent tariff legislation. The
enlargement of our currency by the silver bill undoubtedly gave an
upward tendency to trade and had a marked effect on prices; but this
natural and desired effect of the silver legislation was by many
erroneously attributed to the tariff act.

There is neither wisdom nor justice in the suggestion that the
subject of tariff revision shall be again opened before this law has
had a fair trial. It is quite true that every tariff schedule is
subject to objections. No bill was ever framed, I suppose, that in
all of its rates and classifications had the full approval even of a
party caucus. Such legislation is always and necessarily the product
of compromise as to details, and the present law is no exception. But
in its general scope and effect I think it will justify the support of
those who believe that American legislation should conserve and defend
American trade and the wages of American workmen.

The misinformation as to the terms of the act which has been so
widely disseminated at home and abroad will be corrected by
experience, and the evil auguries as to its results confounded by the
market reports, the savings banks, international trade balances, and
the general prosperity of our people. Already we begin to hear from
abroad and from our customhouses that the prohibitory effect upon
importations imputed to the act is not justified. The imports at the
port of New York for the first three weeks of November were nearly 8
per cent greater than for the same period in 1889 and 29 per cent
greater than in the same period of 1888. And so far from being an act
to limit exports, I confidently believe that under it we shall secure
a larger and more profitable participation in foreign trade than we
have ever enjoyed, and that we shall recover a proportionate
participation in the ocean carrying trade of the world.

The criticisms of the bill that have come to us from foreign sources
may well be rejected for repugnancy. If these critics really believe
that the adoption by us of a free-trade policy, or of tariff rates
having reference solely to revenue, would diminish the participation
of their own countries in the commerce of the world, their advocacy
and promotion, by speech and other forms of organized effort, of this
movement among our people is a rare exhibition of unselfishness in
trade. And, on the other hand, if they sincerely believe that the
adoption of a protective-tariff policy by this country inures to
their profit and our hurt, it is noticeably strange that they should
lead the outcry against the authors of a policy so helpful to their
countrymen and crown with their favor those who would snatch from
them a substantial share of a trade with other lands already
inadequate to their necessities.

There is no disposition among any of our people to promote
prohibitory or retaliatory legislation. Our policies are adopted not
to the hurt of others, but to secure for ourselves those advantages
that fairly grow out of our favored position as a nation. Our form of
government, with its incident of universal suffrage, makes it
imperative that we shall save our working people from the agitations
and distresses which scant work and wages that have no margin for
comfort always beget. But after all this is done it will be found
that our markets are open to friendly commercial exchanges of
enormous value to the other great powers.

From the time of my induction into office the duty of using every
power and influence given by law to the executive department for the
development of larger markets for our products, especially our farm
products, has been kept constantly in mind, and no effort has been or
will be spared to promote that end. We are under no disadvantage in
any foreign market, except that we pay our workmen and workwomen
better wages than are paid elsewhere--better abstractly, better
relatively to the cost of the necessaries of life. I do not doubt
that a very largely increased foreign trade is accessible to us
without bartering for it either our home market for such products of
the farm and shop as our own people can supply or the wages of our
working people.

In many of the products of wood and iron and in meats and breadstuffs
we have advantages that only need better facilities of intercourse and
transportation to secure for them large foreign markets. The
reciprocity clause of the tariff act wisely and effectively opens the
way to secure a large reciprocal trade in exchange for the free
admission to our ports of certain products. The right of independent
nations to make special reciprocal trade concessions is well
established, and does not impair either the comity due to other
powers or what is known as the "favored-nation clause," so generally
found in commercial treaties. What is given to one for an adequate
agreed consideration can not be claimed by another freely. The state
of the revenues was such that we could dispense with any import
duties upon coffee, tea, hides, and the lower grades of sugar and
molasses. That the large advantage resulting to the countries
producing and exporting these articles by placing them on the free
list entitled us to expect a fair return in the way of customs
concessions upon articles exported by us to them was so obvious that
to have gratuitously abandoned this opportunity to enlarge our trade
would have been an unpardonable error.

There were but two methods of maintaining control of this question
open to Congress--to place all of these articles upon the dutiable
list, subject to such treaty agreements as could be secured, or to
place them all presently upon the free list, but subject to the
reimposition of specified duties if the countries from which we
received them should refuse to give to us suitable reciprocal
benefits. This latter method, I think, possesses great advantages. It
expresses in advance the consent of Congress to reciprocity
arrangements affecting these products, which must otherwise have been
delayed and unascertained until each treaty was ratified by the Senate
and the necessary legislation enacted by Congress. Experience has
shown that some treaties looking to reciprocal trade have failed to
secure a two-thirds vote in the Senate for ratification, and others
having passed that stage have for years awaited the concurrence of
the House and Senate in such modifications of our revenue laws as
were necessary to give effect to their provisions. We now have the
concurrence of both Houses in advance in a distinct and definite
offer of free entry to our ports of specific articles. The Executive
is not required to deal in conjecture as to what Congress will
accept. Indeed, this reciprocity provision is more than an offer. Our
part of the bargain is complete; delivery has been made; and when the
countries from which we receive sugar, coffee, tea, and hides have
placed on their free lists such of our products as shall be agreed
upon as an equivalent for our concession, a proclamation of that fact
completes the transaction; and in the meantime our own people have
free sugar, tea, coffee, and hides.

The indications thus far given are very hopeful of early and
favorable action by the countries from which we receive our large
imports of coffee and sugar, and it is confidently believed that if
steam communication with these countries can be promptly improved and
enlarged the next year will show a most gratifying increase in our
exports of breadstuffs and provisions, as well as of some important
lines of manufactured goods.

In addition to the important bills that became laws before the
adjournment of the last session, some other bills of the highest
importance were well advanced toward a final vote and now stand upon
the calendars of the two Houses in favored positions. The present
session has a fixed limit, and if these measures are not now brought
to a final vote all the work that has been done upon them by this
Congress is lost. The proper consideration of these, of an
apportionment bill, and of the annual appropriation bills will
require not only that no working day of the session shall be lost,
but that measures of minor and local interest shall not be allowed to
interrupt or retard the progress of those that are of universal
interest. In view of these conditions, I refrain from bringing before
you at this time some suggestions that would otherwise be made, and
most earnestly invoke your attention to the duty of perfecting the
important legislation now well advanced. To some of these measures,
which seem to me most important, I now briefly call your attention.

I desire to repeat with added urgency the recommendations contained
in my last annual message in relation to the development of American
steamship lines. The reciprocity clause of the tariff bill will be
largely limited and its benefits retarded and diminished if provision
is not contemporaneously made to encourage the establishment of
first-class steam communication between our ports and the ports of
such nations as may meet our overtures for enlarged commercial
exchanges. The steamship, carrying the mails statedly and frequently
and offering to passengers a comfortable, safe, and speedy transit,
is the first condition of foreign trade. It carries the order or the
buyer, but not all that is ordered or bought. It gives to the sailing
vessels such cargoes as are not urgent or perishable, and, indirectly
at least, promotes that important adjunct of commerce. There is now
both in this country and in the nations of Central and South America
a state of expectation and confidence as to increased trade that will
give a double value to your prompt action upon this question.

The present situation of our mail communication with Australia
illustrates the importance of early action by Congress. The Oceanic
Steamship Company maintains a line of steamers between San Francisco,
Sydney, and Auckland consisting of three vessels, two of which are of
United States registry and one of foreign registry. For the service
done by this line in carrying the mails we pay annually the sum of
$46,000, being, as estimated, the full sea and United States inland
postage, which is the limit fixed by law. The colonies of New South
Wales and New Zealand have been paying annually to these lines lbs.
37,000 for carrying the mails from Sydney and Auckland to San
Francisco. The contract under which this payment has been made is now
about to expire, and those colonies have refused to renew the contract
unless the United States shall pay a more equitable proportion of the
whole sum necessary to maintain the service.

I am advised by the Postmaster-General that the United States
receives for carrying the Australian mails, brought to San Francisco
in these steamers, by rail to Vancouver, an estimated annual income
of $75,000, while, as I have stated, we are paying out for the
support of the steamship line that brings this mail to us only
$46,000, leaving an annual surplus resulting from this service of
$29,000. The trade of the United States with Australia, which is in a
considerable part carried by these steamers, and the whole of which is
practically dependent upon the mail communication which they maintain,
is largely in our favor. Our total exports of merchandise to
Australasian ports during the fiscal year ending June 30, 1890, were
$11,266,484, while the total imports of merchandise from these ports
were only $4,277,676. If we are not willing to see this important
steamship line withdrawn, or continued with Vancouver substituted for
San Francisco as the American terminal, Congress should put it in the
power of the Postmaster-General to make a liberal increase in the
amount now paid for the transportation of this important mail.

The South Atlantic and Gulf ports occupy a very favored position
toward the new and important commerce which the reciprocity clause of
the tariff act and the postal shipping bill are designed to promote.
Steamship lines from these ports to some northern port of South
America will almost certainly effect a connection between the
railroad systems of the continents long before any continuous line of
railroads can be put into operation. The very large appropriation made
at the last session for the harbor of Galveston was justified, as it
seemed to me, by these considerations. The great Northwest will feel
the advantage of trunk lines to the South as well as to the East and
of the new markets opened for their surplus food products and for
many of their manufactured products.

I had occasion in May last to transmit to Congress a report adopted
by the International American Conference upon the subject of the
incorporation of an international American bank, with a view to
facilitating money exchanges between the States represented in that
conference. Such an institution would greatly promote the trade we
are seeking to develop. I renew the recommendation that a careful and
well-guarded charter be granted. I do not think the powers granted
should include those ordinarily exercised by trust, guaranty, and
safe-deposit companies, or that more branches in the United States
should be authorized than are strictly necessary to accomplish the
object primarily in view, namely, convenient foreign exchanges. It is
quite important that prompt action should be taken in this matter, in
order that any appropriations for better communication with these
countries and any agreements that may be made for reciprocal trade
may not be hindered by the inconvenience of making exchanges through
European money centers or burdened by the tribute which is an
incident of that method of business.

The bill for the relief of the Supreme Court has after many years of
discussion reached a position where final action is easily
attainable, and it is hoped that any differences of opinion may be so
harmonized as to save the essential features of this very important
measure. In this connection I earnestly renew my recommendation that
the salaries of the judges of the United States district courts be so
readjusted that none of them shall receive less than $5,000 per
annum.

The subject of the unadjusted Spanish and Mexican land grants and the
urgent necessity for providing some commission or tribunal for the
trial of questions of title growing out of them were twice brought by
me to the attention of Congress at the last session. Bills have been
reported from the proper committees in both Houses upon the subject,
and I very earnestly hope that this Congress will put an end to the
delay which has attended the settlement of the disputes as to the
title between the settlers and the claimants under these grants.
These disputes retard the prosperity and disturb the peace of large
and important communities. The governor of New Mexico in his last
report to the Secretary of the Interior suggests some modifications
of the provisions of the pending bills relating to the small holdings
of farm lands. I commend to your attention the suggestions of the
Secretary of the Interior upon this subject.

The enactment of a national bankrupt law I still regard as very
desirable. The Constitution having given to Congress jurisdiction of
this subject, it should be exercised and uniform rules provided for
the administration of the affairs of insolvent debtors. The
inconveniences resulting from the occasional and temporary exercise
of this power by Congress and from the conflicting State codes of
insolvency which come into force intermediately should be removed by
the enactment of a simple, inexpensive, and permanent national
bankrupt law.

I also renew my recommendation in favor of legislation affording just
copyright protection to foreign authors on a footing of reciprocal
advantage for our authors abroad.

It may still be possible for this Congress to inaugurate by suitable
legislation a movement looking to uniformity and increased safety in
the use of couplers and brakes upon freight trains engaged in
interstate commerce. The chief difficulty in the way is to secure
agreement as to the best appliances, simplicity, effectiveness, and
cost being considered. This difficulty will only yield to
legislation, which should be based upon full inquiry and impartial
tests. The purpose should be to secure the cooperation of all
well-disposed managers and owners; but the fearful fact that every
year's delay involves the sacrifice of 2,000 lives and the maiming of
20,000 young men should plead both with Congress and the managers
against any needless delay.

The subject of the conservation and equal distribution of the water
supply of the arid regions has had much attention from Congress, but
has not as yet been put upon a permanent and satisfactory basis. The
urgency of the subject does not grow out of any large present demand
for the use of these lands for agriculture, but out of the danger
that the water supply and the sites for the necessary catch basins
may fall into the hands of individuals or private corporations and be
used to render subservient the large areas dependent upon such supply.
The owner of the water is the owner of the lands, however the titles
may run. All unappropriated natural water sources and all necessary
reservoir sites should be held by the Government for the equal use at
fair rates of the homestead settlers who will eventually take up these
lands. The United States should not, in my opinion, undertake the
construction of dams or canals, but should limit its work to such
surveys and observations as will determine the water supply, both
surface and subterranean, the areas capable of irrigation, and the
location and storage capacity of reservoirs. This done, the use of
the water and of the reservoir sites might be granted to the
respective States or Territories or to individuals or associations
upon the condition that the necessary works should be constructed and
the water furnished at fair rates without discrimination, the rates to
be subject to supervision by the legislatures or by boards of water
commissioners duly constituted. The essential thing to be secured is
the common and equal use at fair rates of the accumulated water
supply. It were almost better that these lands should remain arid
than that those who occupy them should become the slaves of
unrestrained monopolies controlling the one essential element of land
values and crop results.

The use of the telegraph by the Post-Office Department as a means for
the rapid transmission of written communications is, I believe, upon
proper terms, quite desirable. The Government does not own or operate
the railroads, and it should not, I think, own or operate the
telegraph lines. It does, however, seem to be quite practicable for
the Government to contract with the telegraph companies, as it does
with railroad companies, to carry at specified rates such
communications as the senders may designate for this method of
transmission. I recommend that such legislation be enacted as will
enable the Post-Office Department fairly to test by experiment the
advantages of such a use of the telegraph.

If any intelligent and loyal company of American citizens were
required to catalogue the essential human conditions of national
life, I do not doubt that with absolute unanimity they would begin
with "free and honest elections." And it is gratifying to know that
generally there is a growing and nonpartisan demand for better
election laws; but against this sign of hope and progress must be set
the depressing and undeniable fact that election laws and methods are
sometimes cunningly contrived to secure minority control, while
violence completes the shortcomings of fraud.

In my last annual message I suggested that the development of the
existing law providing a Federal supervision of Congressional
elections offered an effective method of reforming these abuses. The
need of such a law has manifested itself in many parts of the
country, and its wholesome restraints and penalties will be useful in
all. The constitutionality of such legislation has been affirmed by
the Supreme Court. Its probable effectiveness is evidenced by the
character of the opposition that is made to it. It has been denounced
as if it were a new exercise of Federal power and an invasion of the
rights of States. Nothing could be further from the truth. Congress
has already fixed the time for the election of members of Congress.
It has declared that votes for members of Congress must be by written
or printed ballot; it has provided for the appointment by the circuit
courts in certain cases, and upon the petition of a certain number of
citizens, of election supervisors, and made it their duty to supervise
the registration of voters conducted by the State officers; to
challenge persons offering to register; to personally inspect and
scrutinize the registry lists, and to affix their names to the lists
for the purpose of identification and the prevention of frauds; to
attend at elections and remain with the boxes till they are all cast
and counted; to attach to the registry lists and election returns any
statement touching the accuracy and fairness of the registry and
election, and to take and transmit to the Clerk of the House of
Representatives any evidence of fraudulent practices which may be
presented to them. The same law provides for the appointment of
deputy United States marshals to attend at the polls, support the
supervisors in the discharge of their duties, and to arrest persons
violating the election laws. The provisions of this familiar title of
the Revised Statutes have been put into exercise by both the great
political parties, and in the North as well as in the South, by the
filing with the court of the petitions required by the law.

It is not, therefore, a question whether we shall have a Federal
election law,