Fellow-Citizens of the Senate and House of Representatives:

The members of the Forty-sixth Congress have assembled in their first
regular session under circumstances calling for mutual congratulation and
grateful acknowledgment to the Giver of All Good for the large and unusual
measure of national prosperity which we now enjoy.

The most interesting events which have occurred in our public affairs since
my last annual message to Congress are connected with the financial
operations of the Government, directly affecting the business interests of
the country. I congratulate Congress on the successful execution of the
resumption act. At the time fixed, and in the manner contemplated by law,
United States notes began to be redeemed in coin. Since the 1st of January
last they have been promptly redeemed on presentation, and in all business
transactions, public and private, in all parts of the country, they are
received and paid out as the equivalent of coin. The demand upon the
Treasury for gold and silver in exchange for United States notes has been
comparatively small, and the voluntary deposit of coin and bullion in
exchange for notes has been very large. The excess of the precious metals
deposited or exchanged for United States notes over the amount of United
States notes redeemed is about $40,000,000.

The resumption of specie payments has been followed by a very great revival
of business. With a currency equivalent in value to the money of the
commercial world, we are enabled to enter upon an equal competition with
other nations in trade and production. The increasing foreign demand for
our manufactures and agricultural products has caused a large balance of
trade in our favor, which has been paid in gold, from the 1st of July last
to November 15, to the amount of about $59,000,000. Since the resumption of
specie payments there has also been a marked and gratifying improvement of
the public credit. The bonds of the Government bearing only 4 per cent
interest have been sold at or above par, sufficient in amount to pay off
all of the national debt which was redeemable under present laws. The
amount of interest saved annually by the process of refunding the debt
since March 1, 1877, is $14,297,177. The bonds sold were largely in small
sums, and the number of our citizens now holding the public securities is
much greater than ever before. The amount of the national debt which
matures within less than two years is $792,121,700, of which $500,000,000
bear interest at the rate of 5 per cent, and the balance is in bonds
bearing 6 per cent interest. It is believed that this part of the public
debt can be refunded by the issue of 4 per cent bonds, and, by the
reduction of interest which will thus be effected, about $11,000,000 can be
annually saved to the Treasury. To secure this important reduction of
interest to be paid by the United States further legislation is required,
which it is hoped will be provided by Congress during its present session.

The coinage of gold by the mints of the United States during the last
fiscal year was $40,986,912. The coinage of silver dollars since the
passage of the act for that purpose up to November 1, 1879, was
$45,000,850, of which $12,700,344 have been issued from the Treasury and
are now in circulation, and $32,300,506 are still in the possession of the
Government.

The pendency of the proposition for unity of action between the United
States and the principal commercial nations of Europe to effect a permanent
system for the equality of gold and silver in the recognized money of the
world leads me to recommend that Congress refrain from new legislation on
the general subject. The great revival of trade, internal and foreign, will
supply during the coming year its own instructions, which may well be
awaited before attempting further experimental measures with the coinage. I
would, however, strongly urge upon Congress the importance of authorizing
the Secretary of the Treasury to suspend the coinage of silver dollars upon
the present legal ratio. The market value of the silver dollar being
uniformly and largely less than the market value of the gold dollar, it is
obviously impracticable to maintain them at par with each other if both are
coined without limit. If the cheaper coin is forced into circulation, it
will, if coined without limit, soon become the sole standard of value, and
thus defeat the desired object, which is a currency of both gold and silver
which shall be of equivalent value, dollar for dollar, with the universally
recognized money of the world.

The retirement from circulation of United States notes with the capacity of
legal tender in private contracts is a step to be taken in our progress
toward a safe and stable currency which should be accepted as the policy
and duty of the Government and the interest and security of the people. It
is my firm conviction that the issue of legal-tender paper money based
wholly upon the authority and credit of the Government, except in extreme
emergency, is without warrant in the Constitution and a violation of sound
financial principles. The issue of United States notes during the late
civil war with the capacity of legal tender between private individuals was
not authorized except as a means of rescuing the country from imminent
peril. The circulation of these notes as paper money for any protracted
period of time after the accomplishment of this purpose was not
contemplated by the framers of the law under which they were issued. They
anticipated the redemption and withdrawal of these notes at the earliest
practicable period consistent with the attainment of the object for which
they were provided.

The policy of the United States, steadily adhered to from the adoption of
the Constitution, has been to avoid the creation of a national debt; and
when, from necessity in time of war, debts have been created, they have
been paid off, on the return of peace, as rapidly as possible. With this
view, and for this purpose, it is recommended that the existing laws for
the accumulation of a sinking fund sufficient to extinguish the public debt
within a limited period be maintained. If any change of the objects or
rates of taxation is deemed necessary by Congress, it is suggested that
experience has shown that a duty can be placed on tea and coffee which will
not enhance the price of those articles to the consumer, and which will add
several millions of dollars annually to the Treasury.

The continued deliberate violation by a large number of the prominent and
influential citizens of the Territory of Utah of the laws of the United
States for the prosecution and punishment of polygamy demands the attention
of every department of the Government. This Territory has a population
sufficient to entitle it to admission as a State, and the general interests
of the nation, as well as the welfare of the citizens of the Territory,
require its advance from the Territorial form of government to the
responsibilities and privileges of a State. This important change will not,
however, be approved by the country while the citizens of Utah in very
considerable number uphold a practice which is condemned as a crime by the
laws of all civilized communities throughout the world.

The law for the suppression of this offense was enacted with great
unanimity by Congress more than seventeen years ago, but has remained until
recently a dead letter in the Territory of Utah, because of the peculiar
difficulties attending its enforcement. The opinion widely prevailed among
the citizens of Utah that the law was in contravention of the
constitutional guaranty of religious freedom. This objection is now
removed. The Supreme Court of the United States has decided the law to be
within the legislative power of Congress and binding as a rule of action
for all who reside within the Territories. There is no longer any reason
for delay or hesitation in its enforcement. It should be firmly and
effectively executed. If not sufficiently stringent in its provisions, it
should be amended; and in aid of the purpose in view I recommend that more
comprehensive and more searching methods for preventing as well as
punishing this crime be provided. If necessary to secure obedience to the
law, the enjoyment and exercise of the rights and privileges of citizenship
in the Territories of the United States may be withheld or withdrawn from
those who violate or oppose the enforcement of the law on this subject.

The elections of the past year, though occupied only with State officers,
have not failed to elicit in the political discussions which attended them
all over the country new and decisive evidence of the deep interest which
the great body of citizens take in the progress of the country toward a
more general and complete establishment, at whatever cost, of universal
security and freedom in the exercise of the elective franchise. While many
topics of political concern demand great attention from our people, both in
the sphere of national and State authority, I find no reason to qualify the
opinion I expressed in my last annual message, that no temporary or
administrative interests of government, however urgent or weighty, will
ever displace the zeal of our people in defense of the primary rights of
citizenship, and that the power of public opinion will override all
political prejudices, and all sectional and State attachments in demanding
that all over our wide territory the name and character of citizen of the
United States shall mean one and the same thing and carry with them
unchallenged security and respect. I earnestly appeal to the intelligence
and patriotism of all good citizens of every part of the country, however
much they maybe divided in opinions on other political subjects, to unite
in compelling obedience to existing laws aimed at the protection of the
right of suffrage. I respectfully urge upon Congress to supply any defects
in these laws which experience has shown and which it is within its power
to remedy. I again invoke the cooperation of the executive and legislative
authorities of the States in this great purpose. I am fully convinced that
if the public mind can be set at rest on this paramount question of popular
rights no serious obstacle will thwart or delay the complete pacification
of the country or retard the general diffusion of prosperity.

In a former message I invited the attention of Congress to the subject of
the reformation of the civil service of the Government, and expressed the
intention of transmitting to Congress as early as practicable a report upon
this subject by the chairman of the Civil Service Commission.

In view of the facts that during a considerable period the Government of
Great Britain has been dealing with administrative problems and abuses in
various particulars analogous to those presented in this country, and that
in recent years the measures adopted were understood to have been effective
and in every respect highly satisfactory, I thought it desirable to have
fuller information upon the subject, and accordingly requested the chairman
of the Civil Service Commission to make a thorough investigation for this
purpose. The result has been an elaborate and comprehensive report.

The report sets forth the history of the partisan spoils system in Great
Britain, and of the rise and fall of the parliamentary patronage, and of
official interference with the freedom of elections. It shows that after
long trials of various kinds of examinations those which are competitive
and open on equal terms to all, and which are carried on under the
superintendence of a single commission, have, with great advantage, been
established as conditions of admission to almost every official place in
the subordinate administration of that country and of British India. The
completion of the report, owing to the extent of the labor involved in its
preparation and the omission of Congress to make any provision either for
the compensation or the expenses of the Commission, has been postponed
until the present time. It is herewith transmitted to Congress.

While the reform measures of another government are of no authority for us,
they are entitled to influence to the extent to which their intrinsic
wisdom and their adaptation to our institutions and social life may commend
them to our consideration. The views I have heretofore expressed concerning
the defects and abuses in our civil administration remain unchanged, except
in so far as an enlarged experience has deepened my sense of the duty both
of officers and of the people themselves to cooperate for their removal.
The grave evils and perils of a partisan spoils system of appointment to
office and of office tenure are now generally recognized. In the
resolutions of the great parties, in the reports of Departments, in the
debates and proceedings of Congress, in the messages of Executives, the
gravity of these evils has been pointed out and the need of their reform
has been admitted.

To command the necessary support, every measure of reform must be based on
common right and justice, and must be compatible with the healthy existence
of great parties, which are inevitable and essential in a free state.

When the people have approved a policy at a national election, confidence
on the part of the officers they have selected and of the advisers who, in
accordance with our political institutions, should be consulted in the
policy which it is their duty to carry into effect is indispensable. It is
eminently proper that they should explain it before the people, as well as
illustrate its spirit in the performance of their official duties.

Very different considerations apply to the greater number of those who fill
the subordinate places in the civil service. Their responsibility is to
their superiors in official position. It is their duty to obey the legal
instructions of those upon whom that authority is devolved, and their best
public service consists in the discharge of their functions irrespective of
partisan politics. Their duties are the same whatever party is in power and
whatever policy prevails. As a consequence it follows that their tenure of
office should not depend on the prevalence of any policy or the supremacy
of any party, but should be determined by their capacity to serve the
people most usefully quite irrespective of partisan interests. The same
considerations that should govern the tenure should also prevail in the
appointment, discipline, and removal of these subordinates. The authority
of appointment and removal is not a perquisite, which may be used to aid a
friend or reward a partisan, but is a trust, to be exercised in the public
interest under all the sanctions which attend the obligation to apply the
public funds only for public purposes.

Every citizen has an equal right to the honor and profit of entering the
public service of his country. The only just ground of discrimination is
the measure of character and capacity he has to make that service most
useful to the people. Except in cases where, upon just and recognized
principles--as upon the theory of pensions--offices and promotions are
bestowed as rewards for past services, their bestowal upon any theory which
disregards personal merit is an act of injustice to the citizen, as well as
a breach of that trust subject to which the appointing power is held.

In the light of these principles it becomes of great importance to provide
just and adequate means, especially for every Department and large
administrative office, where personal discrimination on the part of its
head is not practicable, for ascertaining those qualifications to which
appointments and removals should have reference. To fail to provide such
means is not only to deny the opportunity of ascertaining the facts upon
which the most righteous claim to office depends, but of necessity to
discourage all worthy aspirants by handing over appointments and removals
to mere influence and favoritism. If it is the right of the worthiest
claimant to gain the appointment and the interest of the people to bestow
it upon him, it would seem clear that a wise and just method of
ascertaining personal fitness for office must be an important and permanent
function of every just and wise government. It has long since become
impossible in the great offices for those having the duty of nomination and
appointment to personally examine into the individual qualifications of
more than a small proportion of those seeking office, and with the
enlargement of the civil service that proportion must continue to become
less.

In the earlier years of the Government the subordinate offices were so few
in number that it was quite easy for those making appointments and
promotions to personally ascertain the merits of candidates. Party managers
and methods had not then become powerful agencies of coercion, hostile to
the free and just exercise of the appointing power.

A large and responsible part of the duty of restoring the civil service to
the desired purity and efficiency rests upon the President, and it is my
purpose to do what is within my power to advance such prudent and gradual
measures of reform as will most surely and rapidly bring about that radical
change of system essential to make our administrative methods satisfactory
to a free and intelligent people. By a proper exercise of authority it is
in the power of the Executive to do much to promote such a reform. But it
can not be too clearly understood that nothing adequate can be accomplished
without cooperation on the part of Congress and considerate and intelligent
support among the people. Reforms which challenge the generally accepted
theories of parties and demand changes in the methods of Departments are
not the work of a day. Their permanent foundations must be laid in sound
principles and in an experience which demonstrates their wisdom and exposes
the errors of their adversaries. Every worthy officer desires to make his
official action a gain and an honor to his country; but the people
themselves, far more than their officers in public station, are interested
in a pure, economical, and vigorous administration.

By laws enacted in 1853 and 1855, and now in substance incorporated in the
Revised Statutes, the practice of arbitrary appointments to the several
subordinate grades in the great Departments was condemned, and examinations
as to capacity, to be conducted by departmental boards of examiners, were
provided for and made conditions of admission to the public service. These
statutes are a decision by Congress that examinations of some sort as to
attainments and capacity are essential to the well-being of the public
service. The important questions since the enactment of these laws have
been as to the character of these examinations, and whether official favor
and partisan influence or common right and merit were to control the access
to the examinations. In practice these examinations have not always been
open to worthy persons generally who might wish to be examined. Official
favoritism and partisan influence, as a rule, appear to have designated
those who alone were permitted to go before the examining boards,
subjecting even the examiners to a pressure from the friends of the
candidates very difficult to resist. As a consequence the standard of
admission fell below that which the public interest demanded. It was also
almost inevitable that a system which provided for various separate boards
of examiners, with no common supervision or uniform method of procedure,
should result in confusion, inconsistency, and inadequate tests of
capacity, highly detrimental to the public interest. A further and more
radical change was obviously required.

In the annual message of December, 1870, my predecessor declared that--
There is no duty which so much embarrasses the Executive and heads of
Departments as that of appointments, nor is there any such arduous and
thankless labor imposed on Senators and Representatives as that of finding
places for constituents. The present system does not secure the best men,
and often not even fit men, for public place. The elevation and
purification of the civil service of the Government will be hailed with
approval by the whole people of the United States. Congress accordingly
passed the act approved March 3, 1871, "to regulate the civil service of
the United States and promote the efficiency thereof," giving the necessary
authority to the Executive to inaugurate a civil-service reform.

Acting under this statute, which was interpreted as intended to secure a
system of just and effectual examinations under uniform supervision, a
number of eminently competent persons were selected for the purpose, who
entered with zeal upon the discharge of their duties, prepared with an
intelligent appreciation of the requirements of the service the regulations
contemplated, and took charge of the examinations, and who in their
capacity as a board have been known as the "Civil Service Commission."
Congress for two years appropriated the money needed for the compensation
and for the expense of carrying on the work of the Commission.

It appears from the report of the Commission submitted to the President in
April, 1874, that examinations had been held in various sections of the
country, and that an appropriation of about $25,000 would be required to
meet the annual expenses, including salaries, involved in discharging the
duties of the Commission. The report was transmitted to Congress by special
message of April 18, 1874, with the following favorable comment upon the
labors of the Commission: If sustained by Congress, I have no doubt the
rules can, after the experience gained, be so improved and enforced as to
still more materially benefit the public service and relieve the Executive,
members of Congress, and the heads of Departments from influences
prejudicial to good administration. The rules, as they have hitherto been
enforced, have resulted beneficially, as is shown by the opinions of the
members of the Cabinet and their subordinates in the Departments, and in
that opinion I concur. And in the annual message of December of the same
year similar views are expressed and an appropriation for continuing the
work of the Commission again advised.

The appropriation was not made, and as a consequence the active work of the
Commission was suspended, leaving the Commission itself still in existence.
Without the means, therefore, of causing qualifications to be tested in any
systematic manner or of securing for the public service the advantages of
competition upon any extensive plan, I recommended in my annual message of
December, 1877, the making of an appropriation for the resumption of the
work of the Commission.

In the meantime, however, competitive examinations, under many
embarrassments, have been conducted within limited spheres in the Executive
Departments in Washington and in a number of the custom-houses and
post-offices of the principal cities of the country, with a view to further
test their effects, and in every instance they have been found to be as
salutary as they are stated to have been under the Administration of my
predecessor. I think the economy, purity, and efficiency of the public
service would be greatly promoted by their systematic introduction,
wherever practicable, throughout the entire civil service of the
Government, together with ample provision for their general supervision in
order to secure consistency and uniform justice.

Reports from the Secretary of the Interior, from the Postmaster-General,
from the postmaster in the city of New York, where such examinations have
been some time on trial, and also from the collector of the port, the naval
officer, and the surveyor in that city, and from the postmasters and
collectors in several of the other large cities, show that the competitive
system, where applied, has in various ways contributed to improve the
public service.

The reports show that the results have been salutary in a marked degree,
and that the general application of similar rules can not fail to be of
decided benefit to the service.

The reports of the Government officers, in the city of New York especially,
bear decided testimony to the utility of open competitive examinations in
their respective offices, showing that--These examinations and the
excellent qualifications of those admitted to the service through them have
had a marked incidental effect upon the persons previously in the service,
and particularly upon those aspiring to promotion. There has been on the
part of these latter an increased interest in the work and a desire to
extend acquaintance with it beyond the particular desk occupied, and thus
the morale of the entire force has been raised. The examinations have been
attended by many citizens, who have had an opportunity to thoroughly
investigate the scope and character of the tests and the method of
determining the results, and those visitors have without exception approved
the methods employed, and several of them have publicly attested their
favorable opinion. Upon such considerations I deem it my duty to renew the
recommendation contained in my annual message of December, 1877, requesting
Congress to make the necessary appropriation for the resumption of the work
of the Civil Service Commission. Economy will be promoted by authorizing a
moderate compensation to persons in the public service who may perform
extra labor upon or under the Commission, as the Executive may direct.

I am convinced that if a just and adequate test of merit is enforced for
admission to the public service and in making promotions such abuses as
removals without good cause and partisan and official interference with the
proper exercise of the appointing power will in large measure disappear.

There are other administrative abuses to which the attention of Congress
should be asked in this connection. Mere partisan appointments and the
constant peril of removal without cause very naturally lead to an absorbing
and mischievous political activity on the part of those thus appointed,
which not only interferes with the due discharge of official duty, but is
incompatible with the freedom of elections. Not without warrant in the
views of several of my predecessors in the Presidential office, and
directly within the law of 1871, already cited, I endeavored, by regulation
made on the 22d day of June, 1877, to put some reasonable limits to such
abuses. It may not be easy, and it may never perhaps be necessary, to
define with precision the proper limit of political action on the part of
Federal officers. But while their right to hold and freely express their
opinions can not be questioned, it is very plain that they should neither
be allowed to devote to other subjects the time needed for the proper
discharge of their official duties nor to use the authority of their office
to enforce their own opinions or to coerce the political action of those
who hold different opinions.

Reasons of justice and public policy quite analogous to those which forbid
the use of official power for the oppression of the private citizen impose
upon the Government the duty of protecting its officers and agents from
arbitrary exactions. In whatever aspect considered, the practice of making
levies for party purposes upon the salaries of officers is highly
demoralizing to the public service and discreditable to the country. Though
an officer should be as free as any other citizen to give his own money in
aid of his opinions or his party, he should also be as free as any other
citizen to refuse to make such gifts. If salaries are but a fair
compensation for the time and labor of the officer, it is gross injustice
to levy a tax upon them. If they are made excessive in order that they may
bear the tax, the excess is an indirect robbery of the public funds.

I recommend, therefore, such a revision and extension of present statutes
as shall secure to those in every grade of official life or public
employment the protection with which a great and enlightened nation should
guard those who are faithful in its service.

Our relations with foreign countries have continued peaceful.

With Great Britain there are still unsettled questions, growing out of the
local laws of the maritime provinces and the action of provincial
authorities deemed to be in derogation of rights secured by treaty to
American fishermen. The United States minister in London has been
instructed to present a demand for $105,305.02 in view of the damages
received by American citizens at Fortune Bay on the 6th day of January,
1878. The subject has been taken into consideration by the British
Government, and an early reply is anticipated.

Upon the completion of the necessary preliminary examinations the subject
of our participation in the provincial fisheries, as regulated by treaty,
will at once be brought to the attention of the British Government, with a
view to an early and permanent settlement of the whole question, which was
only temporarily adjusted by the treaty of Washington.

Efforts have been made to obtain the removal of restrictions found
injurious to the exportation of cattle to the United Kingdom.

Some correspondence has also occurred with regard to the rescue and saving
of life and property upon the Lakes, which has resulted in important
modifications of the previous regulations of the Dominion government on the
subject in the interest of humanity and commerce.

In accordance with the joint resolution of the last session of Congress,
commissioners were appointed to represent the United States at the two
international exhibitions in Australia, one of which is now in progress at
Sydney, and the other to be held next year at Melbourne. A desire has been
expressed by our merchants and manufacturers interested in the important
and growing trade with Australia that an increased provision should be made
by Congress for the representation of our industries at the Melbourne
exhibition of next year, and the subject is respectfully submitted to your
favorable consideration.

The assent of the Government has been given to the landing on the coast of
Massachusetts of a new and independent transatlantic cable between France,
by way of the French island of St. Pierre, and this country, subject to any
future legislation of Congress on the subject. The conditions imposed
before allowing this connection with our shores to be established are such
as to secure its competition with any existing or future lines of marine
cable and preclude amalgamation therewith, to provide for entire equality
of rights to our Government and people with those of France in the use of
the cable, and prevent any exclusive possession of the privilege as
accorded by France to the disadvantage of any future cable communication
between France and the United States which may be projected and
accomplished by our citizens. An important reduction of the present rates
of cable communication with Europe, felt to be too burdensome to the
interests of our commerce, must necessarily flow from the establishment of
this competing line.

The attention of Congress was drawn to the propriety of some general
regulation by Congress of the whole subject of transmarine cables by my
predecessor in his message of December 7, 1875, and I respectfully submit
to your consideration the importance of Congressional action in the
matter.

The questions of grave importance with Spain growing out of the incidents
of the Cuban insurrection have been for the most part happily and honorably
settled. It may reasonably be anticipated that the commission now sitting
in Washington for the decision of private cases in this connection will
soon be able to bring its labors to a conclusion.

The long-standing question of East Florida claims has lately been renewed
as a subject of correspondence, and may possibly require Congressional
action for its final disposition.

A treaty with the Netherlands with respect to consular rights and
privileges similar to those with other powers has been signed and ratified,
and the ratifications were exchanged on the 31st of July last. Negotiations
for extradition treaties with the Netherlands and with Denmark are now in
progress.

Some questions with Switzerland in regard to pauper and convict emigrants
have arisen, but it is not doubted that they will be arranged upon a just
and satisfactory basis. A question has also occurred with respect to an
asserted claim by Swiss municipal authorities to exercise tutelage over
persons and property of Swiss citizens naturalized in this country. It is
possible this may require adjustment by treaty.

With the German Empire frequent questions arise in connection with the
Subjects of naturalization and expatriation, but the Imperial Government
has constantly manifested a desire to strictly maintain and comply with all
treaty stipulations in regard to them.

In consequence of the omission of Congress to provide for a diplomatic
representative at Athens, the legation to Greece has been withdrawn. There
is now no channel of diplomatic communication between the two countries,
and the expediency of providing for one in some form is submitted to
Congress.

Relations with Austria, Russia, Italy, Portugal, Turkey, and Belgium
continue amicable, and marked by no incident of especial importance.

A change of the personal head of the Government of Egypt has taken place.
No change, however, has occurred in the relations between Egypt and the
United States. The action of the Egyptian Government in presenting to the
city of New York one of the ancient obelisks, which possess such historic
interest, is highly appreciated as a generous mark of international regard.
If prosperity should attend the enterprise of its transportation across the
Atlantic, its erection in a conspicuous position in the chief commercial
city of the nation will soon be accomplished.

The treaty recently made between Japan and the United States in regard to
the revision of former commercial treaties it is now believed will be
followed by similar action on the part of other treaty powers. The
attention of Congress is again invited to the subject of the indemnity
funds received some years since from Japan and China, which, with their
accumulated interest, now amount to considerable sums. If any part of these
funds is justly due to American citizens, they should receive it promptly;
and whatever may have been received by this Government in excess of
strictly just demands should in some form be returned to the nations to
whom it equitably belongs.

The Government of China has signified its willingness to consider the
question of the emigration of its subjects to the United States with a
dispassionate fairness and to cooperate in such measures as may tend to
prevent injurious consequences to the United States. The negotiations are
still proceeding, and will be pressed with diligence.

A question having arisen between China and Japan about the Lew Chew
Islands, the United States Government has taken measures to inform those
powers of its readiness to extend its good offices for the maintenance of
peace if they shall mutually deem it desirable and find it practicable to
avail themselves of the proffer.

It is a gratification to be able to announce that, through the judicious
and energetic action of the military commanders of the two nations on each
side of the Rio Grande, under the instructions of their respective
Governments, raids and depredations have greatly decreased, and in the
localities where formerly most destructive have now almost wholly ceased.
In view of this result, I entertain a confident expectation that the
prevalence of quiet on the border will soon become so assured as to justify
a modification of the present orders to our military commanders as to
crossing the border, without encouraging such disturbances as would
endanger the peace of the two countries.

The third installment of the award against Mexico under the claims
commission of July 4, 1868, was duly paid, and has been put in course of
distribution in pursuance of the act of Congress providing for the same.
This satisfactory situation between the two countries leads me to
anticipate an expansion of our trade with Mexico and an increased
contribution of capital and industry by our people to the development of
the great resources of that country. I earnestly commend to the wisdom of
Congress the provision of suitable legislation looking to this result.

Diplomatic intercourse with Colombia is again fully restored by the arrival
of a minister from that country to the United States. This is especially
fortunate in view of the fact that the question of an inter-oceanic canal
has recently assumed a new and important aspect and is now under discussion
with the Central American countries through whose territory the canal, by
the Nicaragua route, would have to pass. It is trusted that enlightened
statesmanship on their part will see that the early prosecution of such a
work will largely inure to the benefit, not only of their own citizens and
those of the United States, but of the commerce of the civilized world. It
is not doubted that should the work be undertaken under the protective
auspices of the United States, and upon satisfactory concessions for the
right of way and its security by the Central American Governments, the
capital for its completion would be readily furnished from this country and
Europe, which might, failing such guaranties, prove inaccessible.

Diplomatic relations with Chile have also been strengthened by the
reception of a minister from that country.

The war between Peru, Bolivia, and Chile still continues. The United States
have not deemed it proper to interpose in the matter further than to convey
to all the Governments concerned the assurance that the friendly offices of
the Government of the United States for the restoration of peace upon an
honorable basis will be extended in case the belligerents shall exhibit a
readiness to accept them.

Cordial relations continue with Brazil and the Argentine Republic, and
trade with those countries is improving. A provision for regular and more
frequent mail communication, in our own ships, between the ports of this
country and the nations of South America seems to me to deserve the
attention of Congress as an essential precursor of an enlargement of our
commerce with them and an extension of our carrying trade.

A recent revolution in Venezuela has been followed by the establishment of
a provisional government. This government has not yet been formally
recognized, and it is deemed desirable to await the proposed action of the
people which is expected to give it the sanction of constitutional forms.

A naval vessel has been sent to the Samoan Islands to make surveys and take
possession of the privileges ceded to the United States by Samoa in the
harbor of Pago-Pago. A coaling station is to be established there, which
will be convenient and useful to United States vessels.

The subject of opening diplomatic relations with Roumania and Servia, now
become independent sovereignties, is at present under consideration, and is
the subject of diplomatic correspondence.

There is a gratifying increase of trade with nearly all European and
American countries, and it is believed that with judicious action in regard
to its development it can and will be still more enhanced and that American
products and manufactures will find new and expanding markets. The reports
of diplomatic and consular officers upon this subject, under the system now
adopted, have resulted in obtaining much valuable information, which has
been and will continue to be laid before Congress and the public from time
to time.

The third article of the treaty with Russia of March 30, 1867, by which
Alaska was ceded to the United States, provides that the inhabitants of the
ceded territory, with the exception of the uncivilized native tribes, shall
be admitted to the enjoyment of all the rights of citizens of the United
States and shall be maintained and protected in the free enjoyment of their
liberty, property, and religion. The uncivilized tribes are subject to such
laws and regulations as the United States may from time to time adopt in
regard to the aboriginal tribes of that country.

Both the obligations of this treaty and the necessities of the people
require that some organized form of government over the Territory of Alaska
be adopted.

There appears to be no law for the arrest of persons charged with
common-law offenses, such as assault, robbery, and murder, and no
magistrate authorized to issue or execute process in such cases. Serious
difficulties have already arisen from offenses of this character, not only
among the original inhabitants, but among citizens of the United States and
other countries who have engaged in mining, fishing, and other business
operations within the territory. A bill authorizing the appointment of
justices of the peace and constables and the arrest and detention of
persons charged with criminal offenses, and providing for an appeal to
United States courts for the district of Oregon in suitable cases, will at
a proper time be submitted to Congress.

The attention of Congress is called to the annual report of the Secretary
of the Treasury on the condition of the public finances.

The ordinary revenues from all sources for the fiscal year ended June 30,
1879, were $273,827,184.46; the ordinary expenditures for the same period
were $266,947,883.53, leaving a surplus revenue for the year of
$6,879,300.93.

The receipts for the present fiscal year, ending June 30, 1880, actual and
estimated, are as follows: Actual receipts for the first quarter,
commencing July 1, 1879, $79,843,663.61; estimated receipts for the
remaining three quarters of the year, $208,156,336.39; total receipts for
the current fiscal year, actual and estimated, $288,000,000.

The expenditures for the same period will be, actual and estimated, as
follows: For the quarter commencing July 1, 1879, actual expenditures,
$91,683,385.10; and for the remaining three quarters of the year the
expenditures are estimated at $172,316,614.90, making the total
expenditures $264,000,000, and leaving an estimated surplus revenue for the
year ending June 30, 1880, of $24,000,000. The total receipts during the
next fiscal year, ending June 30, 1881, estimated according to existing
laws, will be $288,000,000, and the estimated ordinary expenditures for the
same period will be $278,097,364.39, leaving a surplus of $9,902,635.61 for
that year.

The large amount expended for arrears of pensions during the last and the
present fiscal year, amounting to $21,747,249.60, has prevented the
application of the full amount required by law to the sinking fund for the
current year; but these arrears having been substantially paid, it is
believed that the sinking fund can hereafter be maintained without any
change of existing law.

The Secretary of War reports that the War Department estimates for the
fiscal year ending June 30, 1881, are $40,380,428.93, the same being for a
less sum of money than any annual estimate rendered to Congress from that
Department during a period of at least twelve years.

He concurs with the General of the Army in recommending such legislation as
will authorize the enlistment of the full number of 25,000 men for the line
of the Army, exclusive of the 3,463 men required for detached duty, and
therefore not available for service in the field.

He also recommends that Congress be asked to provide by law for the
disposition of a large number of abandoned military posts and reservations,
which, though very valuable in themselves, have been rendered useless for
military purposes by the advance of civilization and settlement.

He unites with the Quartermaster-General in recommending that an
appropriation be made for the construction of a cheap and perfectly
fireproof building for the safe storage of a vast amount of money accounts,
vouchers, claims, and other valuable records now in the
Quartermaster-General's Office, and exposed to great risk of total
destruction by fire.

He also recommends, in conformity with the views of the
Judge-Advocate-General, some declaratory legislation in reference to the
military statute of limitations as applied to the crime of desertion. In
these several recommendations I concur.

The Secretary of War further reports that the work for the improvement of
the South Pass of the Mississippi River, under contract with Mr. James B.
Eads, made in pursuance of an act of Congress, has been prosecuted during
the past year with a greater measure of success in the attainment of
results than during any previous year. The channel through the South Pass,
which at the beginning of operations in June, 1875, had a depth of only 7
1/2 feet of water, had on the 8th of July, 1879, a minimum depth of 26
feet, having a width of not less than 200 feet and a central depth of 30
feet. Payments have been made in accordance with the statute, as the work
progressed, amounting in the aggregate to $4,250,000; and further payments
will become due, as provided by the statute, in the event of success in
maintaining the channel now secured.

The reports of the General of the Army and of his subordinates present a
full and detailed account of the military operations for the suppression of
hostilities among the Indians of the Ute and Apache tribes, and praise is
justly awarded to the officers and troops engaged for promptness, skill,
and courage displayed.

The past year has been one of almost unbroken peace and quiet on the
Mexican frontier, and there is reason to believe that the efforts of this
Government and of Mexico to maintain order in that region will prove
permanently successful.

This Department was enabled during the past year to find temporary, though
crowded, accommodations and a safe depository for a portion of its records
in the completed east wing of the building designed for the State, War, and
Navy Departments. The construction of the north wing of the building, a
part of the structure intended for the use of the War Department, is being
carried forward with all possible dispatch, and the work should receive
from Congress such liberal appropriations as will secure its speedy
completion.

The report of the Secretary of the Navy shows continued improvement in that
branch of the service during the last fiscal year. Extensive repairs have
been made upon vessels, and two new ships have been completed and made
ready for sea.

The total expenditures of the year ended June 30, 1879, including specific
appropriations not estimated for by the Department, were $13,555,710.09.
The expenses chargeable to the year, after deducting the amount of these
specific appropriations, were $13,343,317.79; but this is subject to a
reduction of $283,725.99, that amount having been drawn upon warrants, but
not paid out during the year. The amount of appropriations applicable to
the last fiscal year was $14,538,646.17. There was, therefore, a balance of
$1,479,054.37 remaining unexpended and to the credit of the Department on
June 30, 1879. The estimates for the fiscal year ending June 30, 1881, are
$14,864,147.95, which exceeds the appropriations for the present fiscal
year $361,897.28. The reason for this increase is explained in the
Secretary's report. The appropriations available for the present fiscal
year are $14,502,250.67, which will, in the opinion of the Secretary,
answer all the ordinary demands of the service. The amount drawn from the
Treasury from July 1 to November 1, 1879 was $5,770,404.12, of which
$1,095,440.33 has been refunded, leaving as the expenditure for that period
$4,674,963.79. If the expenditures of the remaining two-thirds of the year
do not exceed the proportion for these four months, there will remain
unexpended at the end of the year $477,359.30 of the current
appropriations. The report of the Secretary shows the gratifying fact that
among all the disbursing officers of the Pay Corps of the Navy there is not
one who is a defaulter to the extent of a single dollar. I unite with him
in recommending the removal of the observatory to a more healthful
location. That institution reflects credit upon the nation, and has
obtained the approbation of scientific men in all parts of the world. Its
removal from its present location would not only be conducive to the health
of its officers and professors, but would greatly increase its usefulness.

The appropriation for judicial expenses, which has heretofore been made for
the Department of Justice in gross, was subdivided at the last session of
Congress, and no appropriation whatever was made for the payment of the
fees of marshals and their deputies, either in the service of process or
for the discharge of other duties; and since June 30 these officers have
continued the performance of their duties without compensation from the
Government, taking upon themselves the necessary incidental outlays, as
well as rendering their own services. In only a few unavoidable instances
has the proper execution of the process of the United States failed by
reason of the absence of the requisite appropriation. This course of
official conduct on the part of these officers, highly creditable to their
fidelity, was advised by the Attorney-General, who informed them, however,
that they would necessarily have to rely for their compensation upon the
prospect of future legislation by Congress. I therefore especially
recommend that immediate appropriation be made by Congress for this
purpose.

The act making the principal appropriation for the Department of Justice at
previous sessions has uniformly contained the following clause: And for
defraying the expenses which my be incurred in the enforcement of the act
approved February 28, 1871, entitled "An act to amend an act approved May
31, 1870, entitled 'An act to enforce the rights of citizens of the United
States to vote in the several States of this Union, and for other
purposes,'" or any acts amendatory thereof or supplementary thereto. No
appropriation was made for this purpose for the current year. As no general
election for Members of Congress occurred, the omission was a matter of
little practical importance. Such election will, however, take place during
the ensuing year, and the appropriation made for the pay of marshals and
deputies should be sufficient to embrace compensation for the services they
may be required to perform at such elections.

The business of the Supreme Court is at present largely in arrears. It can
not be expected that more causes can be decided than are now disposed of in
its annual session, or that by any assiduity the distinguished magistrates
who compose the court can accomplish more than is now done. In the courts
of many of the circuits also the business has increased to such an extent
that the delay of justice will call the attention of Congress to an
appropriate remedy. It is believed that all is done in each circuit which
can fairly be expected from its judicial force. The evils arising from
delay are less heavily felt by the United States than by private suitors,
as its causes are advanced by the courts when it is seen that they involve
the discussion of questions of a public character.

The remedy suggested by the Attorney-General is the appointment of
additional circuit judges and the creation of an intermediate court of
errors and appeals, which shall relieve the Supreme Court of a part of its
jurisdiction, while a larger force is also obtained for the performance of
circuit duties.

I commend this suggestion to the consideration of Congress. It would seem
to afford a complete remedy, and would involve, if ten additional circuit
judges are appointed, an expenditure, at the present rate of salaries, of
not more than $60,000 a year, which would certainly be small in comparison
with the objects to be attained.

The report of the Postmaster-General bears testimony to the general revival
of business throughout the country. The receipts of the Post-Office
Department for the fiscal year ended June 30, 1879, were $30,041,982.86,
being $764,465.91 more than the revenues of the preceding year. The amount
realized from the sale of postage stamps, stamped envelopes, and postal
cards was $764,465.91 more than in the preceding year, and $2,387,559.23
more than in 1877. The expenditures of the Department were $33,449,899.45,
of which the sum of $376,461.63 was paid on liabilities incurred in
preceding years.

The expenditures during the year were $801,209.77 less than in the
preceding year. This reduction is to be attributed mainly to the operation
of the law passed June 17, 1878, changing the compensation of postmasters
from a commission on the value of stamps sold to a commission on stamps
canceled.

The amount drawn from the Treasury on appropriations, in addition to the
revenues of the Department, was $3,031,454.96, being $2,276,197.86 less
than in the preceding year.

The expenditures for the fiscal year ending June 30, 1881, are estimated at
$39,920,900 and the receipts from all sources at $32,210,000, leaving a
deficiency to be appropriated for out of the Treasury of $7,710,900.

The relations of the Department with railroad companies have been
harmonized, notwithstanding the general reduction by Congress of their
compensation by the appropriation for special facilities, and the railway
post-office lines have been greatly extended, especially in the Southern
States. The interests of the Railway Mail Service and of the public would
be greatly promoted and the expenditures could be more readily controlled
by the classification of the employees of the Railway Mail Service as
recommended by the Postmaster-General, the appropriation for salaries, with
respect to which the maximum limit is already fixed by law, to be made in
gross.

The Postmaster-General recommends an amendment of the law regulating the
increase of compensation for increased service and increased speed on star
routes, so as to enable him to advertise for proposals for such increased
service and speed. He also suggests the advantages to accrue to the
commerce of the country from the enactment of a general law authorizing
contracts with American-built steamers, carrying the American flag, for
transporting the mail between ports of the United States and ports of the
West Indies and South America, at a fixed maximum price per mile, the
amount to be expended being regulated by annual appropriations, in like
manner with the amount paid for the domestic star service.

The arrangement made by the Postmaster-General and the Secretary of the
Treasury for the collection of duty upon books received in the mail from
foreign countries has proved so satisfactory in its practical operation
that the recommendation is now made that Congress shall extend the
provisions of the act of March 3, 1879, under which this arrangement was
made, so as to apply to all other dutiable articles received in the mails
from foreign countries.

The reports of the Secretary of the Interior and of the Commissioner of
Indian Affairs, setting forth the present state of our relations with the
Indian tribes on our territory, the measures taken to advance their
civilization and prosperity, and the progress already achieved by them,
will be found of more than ordinary interest. The general conduct of our
Indian population has been so satisfactory that the occurrence of two
disturbances, which resulted in bloodshed and destruction of property, is
all the more to be lamented.

The history of the outbreak on the White River Ute Reservation, in western
Colorado, has become so familiar by elaborate reports in the public press
that its remarkable incidents need not be stated here in detail. It is
expected that the settlement of this difficulty will lead to such
arrangements as will prevent further hostile contact between the Indians
and the border settlements in western Colorado.

The other disturbance occurred at the Mescalero Agency, in New Mexico,
where Victoria, at the head of a small band of marauders, after committing
many atrocities, being vigorously chased by a military force, made his way
across the Mexican border and is now on foreign soil.

While these occurrences, in which a comparatively small number of Indians
were engaged, are most deplorable, a vast majority of our Indian population
have fully justified the expectations of those who believe that by humane
and peaceful influences the Indian can be led to abandon the habits of
savage life and to develop a capacity for useful and civilized occupations.
What they have already accomplished in the pursuit of agricultural and
mechanical work, the remarkable success which has attended the experiment
of employing as freighters a class of Indians hitherto counted among the
wildest and most intractable, and the general and urgent desire expressed
by them for the education of their children may be taken as sufficient
proof that they will be found capable of accomplishing much more if they
continue to be wisely and fairly guided. The "Indian policy" sketched in
the report of the Secretary of the Interior, the object of which is to make
liberal provision for the education of Indian youth, to settle the Indians
upon farm lots in severalty, to give them title in fee to their farms,
inalienable for a certain number of years, and when their wants are thus
provided for to dispose by sale of the lands on their reservations not
occupied and used by them, a fund to be formed out of the proceeds for the
benefit of the Indians, which will gradually relieve the Government of the
expenses now provided for by annual appropriations, must commend itself as
just and beneficial to the Indians, and as also calculated to remove those
obstructions which the existence of large reservations presents to the
settlement and development of the country. I therefore earnestly recommend
the enactment of a law enabling the Government to give Indians a title in
fee, inalienable for twenty-five years, to the farm lands assigned to them
by allotment. I also repeat the recommendation made in my first annual
message, that a law be passed admitting Indians who can give satisfactory
proof of having by their own labor supported their families for a number of
years, and who are willing to detach themselves from their tribal
relations, to the benefit of the homestead act, and to grant them patents
containing the same provision of inalienability for a certain period.

The experiment of sending a number of Indian children of both sexes to the
Hampton Normal and Agricultural Institute, in Virginia, to receive an
elementary English education and practical instruction in farming and other
useful industries, has led to results so promising that it was thought
expedient to turn over the cavalry barracks at Carlisle, in Pennsylvania,
to the Interior Department for the establishment of an Indian school on a
larger scale. This school has now 158 pupils, selected from various tribes,
and is in full operation. Arrangements are also made for the education of a
number of Indian boys and girls belonging to tribes on the Pacific Slope in
a similar manner, at Forest Grove, in Oregon. These institutions will
commend themselves to the liberality of Congress and to the philanthropic
munificence of the American people.

Last spring information was received of the organization of an extensive
movement in the Western States, the object of which was the occupation by
unauthorized persons of certain lands in the Indian Territory ceded by the
Cherokees to the Government for the purpose of settlement by other Indian
tribes.

On the 26th of April I issued a proclamation warning all persons against
participation in such an attempt, and by the cooperation of a military
force the invasion was promptly checked. It is my purpose to protect the
rights of the Indian inhabitants of that Territory to the full extent of
the executive power; but it would be unwise to ignore the fact that a
territory so large and so fertile, with a population so sparse and with so
great a wealth of unused resources, will be found more exposed to the
repetition of such attempts as happened this year when the surrounding
States are more densely settled and the westward movement of our population
looks still more eagerly for fresh lands to occupy. Under such
circumstances the difficulty of maintaining the Indian Territory in its
present state will greatly increase, and the Indian tribes inhabiting it
would do well to prepare for such a contingency. I therefore fully approve
of the advice given to them by the Secretary of the Interior on a recent
occasion, to divide among themselves in severalty as large a quantity of
their lands as they can cultivate; to acquire individual title in fee
instead of their present tribal ownership in common, and to consider in
what manner the balance of their lands may be disposed of by the Government
for their benefit. By adopting such a policy they would more certainly
secure for themselves the value of their possessions, and at the same time
promote their progress in civilization and prosperity, than by endeavoring
to perpetuate the present state of things in the Territory.

The question whether a change in the control of the Indian service should
be made was in the Forty-fifth Congress referred to a joint committee of
both Houses for inquiry and report. In my last annual message I expressed
the hope that the decision of that question, then in prospect, would
"arrest further agitation of this subject, such agitation being apt to
produce a disturbing effect upon the service as well as on the Indians
themselves." Since then, the committee having reported, the question has
been decided in the negative by a vote in the House of Representatives.

For the reasons here stated, and in view of the fact that further
uncertainty on this point will be calculated to obstruct other much-needed
legislation, to weaken the discipline of the service, and to unsettle
salutary measures now in progress for the government and improvement of the
Indians, I respectfully recommend that the decision arrived at by Congress
at its last session be permitted to stand.

The efforts made by the Department of the Interior to arrest the
depredations on the timber lands of the United States have been continued,
and have met with considerable success. A large number of cases of trespass
have been prosecuted in the courts of the United States; others have been
settled, the trespassers offering to make payment to the Government for the
value of the timber taken by them. The proceeds of these prosecutions and
settlements turned into the Treasury far exceed in amount the sums
appropriated by Congress for this purpose. A more important result,
however, consists in the fact that the destruction of our public forests by
depredation, although such cases still occur, has been greatly reduced in
extent, and it is probable that if the present policy is vigorously pursued
and sufficient provision to that end is made by Congress such trespasses,
at least those on a large scale, can be entirely suppressed, except in the
Territories, where timber for the daily requirements of the population can
not, under the present state of the law, be otherwise obtained. I therefore
earnestly invite the attention of Congress to the recommendation made by
the Secretary of the Interior, that a law be enacted enabling the
Government to sell timber from the public lands without conveying the fee,
where such lands are principally valuable for the timber thereon, such
sales to be so regulated as to conform to domestic wants and business
requirements, while at the same time guarding against a sweeping
destruction of the forests. The enactment of such a law appears to become a
more pressing necessity every day.

My recommendations in former messages are renewed in favor of enlarging the
facilities of the Department of Agriculture. Agriculture is the leading
interest and the permanent industry of our people. It is to the abundance
of agricultural production, as compared with our home consumption, and the
largely increased and highly profitable market abroad which we have enjoyed
in recent years, that we are mainly indebted for our present prosperity as
a people. We must look for its continued maintenance to the same
substantial resource. There is no branch of industry in which labor,
directed by scientific knowledge, yields such increased production in
comparison with unskilled labor, and no branch of the public service to
which the encouragement of liberal appropriations can be more appropriately
extended. The omission to render such aid is not a wise economy, but, on
the contrary, undoubtedly results in losses of immense sums annually that
might be saved through well-directed efforts by the Government to promote
this vital interest.

The results already accomplished with the very limited means heretofore
placed at the command of the Department of Agriculture is an earnest of
what may be expected with increased appropriations for the several purposes
indicated in the report of the Commissioner, with a view to placing the
Department upon a footing which will enable it to prosecute more
effectively the objects for which it is established.

Appropriations are needed for a more complete laboratory, for the
establishment of a veterinary division and a division of forestry, and for
an increase of force.

The requirements for these and other purposes, indicated in the report of
the Commissioner under the head of the immediate necessities of the
Department, will not involve any expenditure of money that the country can
not with propriety now undertake in the interests of agriculture.

It is gratifying to learn from the Bureau of Education the extent to which
educational privileges throughout the United States have been advanced
during the year. No more fundamental responsibility rests upon Congress
than that of devising appropriate measures of financial aid to education,
supplemental to local action in the States and Territories and in the
District of Columbia. The wise forethought of the founders of our
Government has not only furnished the basis for the support of the
common-school systems of the newer States, but laid the foundations for the
maintenance of their universities and colleges of agriculture and the
mechanic arts. Measures in accordance with this traditional policy, for the
further benefit of all these interests and the extension of the same
advantages to every portion of the country, it is hoped will receive your
favorable consideration.

To preserve and perpetuate the national literature should be among the
foremost cares of the National Legislature. The library gathered at the
Capitol still remains unprovided with any suitable accommodations for its
rapidly increasing stores. The magnitude and importance of the collection,
increased as it is by the deposits made under the law of copyright, by
domestic and foreign exchanges, and by the scientific library of the
Smithsonian Institution, call for building accommodations which shall be at
once adequate and fireproof. The location of such a public building, which
should provide for the pressing necessities of the present and for the vast
increase of the nation's books in the future, is a matter which addresses
itself to the discretion of Congress. It is earnestly recommended as a
measure which should unite all suffrages and which should no longer be
delayed.

The joint commission created by the act of Congress of August 2, 1876, for
the purpose of supervising and directing the completion of the Washington
National Monument, of which commission the President is a member, has given
careful attention to this subject, and already the strengthening of the
foundation has so far progressed as to insure the entire success of this
part of the work. A massive layer of masonry has been introduced below the
original foundation, widening the base, increasing the stability of the
structure, and rendering it possible to carry the shaft to completion. It
is earnestly recommended that such further appropriations be made for the
continued prosecution of the work as may be necessary for the completion of
this national monument at an early day.

In former messages, impressed with the importance of the subject, I have
taken occasion to commend to Congress the adoption of a generous policy
toward the District of Columbia. The report of the Commissioners of the
District, herewith transmitted, contains suggestions and recommendations,
to all of which I earnestly invite your careful attention. I ask your early
and favorable consideration of the views which they express as to the
urgent need of legislation for the reclamation of the marshes of the
Potomac and its Eastern Branch within the limits of the city, and for the
repair of the streets of the capital, heretofore laid with wooden blocks
and now by decay rendered almost impassable and a source of imminent danger
to the health of its citizens. The means at the disposal of the
Commissioners are wholly inadequate for the accomplishment of these
important works, and should be supplemented by timely appropriations from
the Federal Treasury.

The filling of the flats in front of the city will add to the adjacent
lands and parks now owned by the United States a large and valuable domain,
sufficient, it is thought, to reimburse its entire cost, and will also, as
an incidental result, secure the permanent improvement of the river for the
purposes of navigation.

The Constitution having invested Congress with supreme and exclusive
jurisdiction over the District of Columbia, its citizens must of necessity
look to Congress alone for all needful legislation affecting their
interests; and as the territory of this District is the common property of
the people of the United States, who equally with its resident citizens are
interested in the prosperity of their capital, I can not doubt that you
will be amply sustained by the general voice of the country in any measures
you may adopt for this purpose.

I also invite the favorable consideration of Congress to the wants of the
public schools of this District, as exhibited in the report of the
Commissioners. While the number of pupils is rapidly increasing, no
adequate provision exists for a corresponding increase of school
accommodation, and the Commissioners are without the means to meet this
urgent need. A number of the buildings now used for school purposes are
rented, and are in important particulars unsuited for the purpose. The
cause of popular education in the District of Columbia is surely entitled
to the same consideration at the hands of the National Government as in the
several States and Territories, to which munificent grants of the public
lands have been made for the endowment of schools and universities.