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Show i PIESIDEiniESUCL KXKOl'TIVK m.UNlKKS KXCTSKD. 7 thr St nit and lli'uae of irpre aentatires. 1 In eubrniliinj; my eiphth and Wit annual incf:K' to auvretw it Bccnm pamper that 1 shoukl lefor to and iu orno di'Kree recapitulate tlio evonln aud otlieial ui 'La of tho piiat right jenra. It was my fortune, or mint'or-tunt mint'or-tunt to bo called to tint ollico of chiot exeeutivo without any previous political politi-cal training. From tho ngo of 17 I had never even witnewed tho excitement excite-ment attending a presidential cam-paiRQ cam-paiRQ but twice antecedent to my own candidacy, and at but one of them waa I eligible as a voter. Under Un-der such circumstances it is but rtaionable to suppose that errors of judgment must have occurred, even had not rlitinrpticf of iinini.m rtrixon between the executive, bound by ac oath to the strict performance ol hie duties, and writers and debatera. ll is not necessarily evidence of blunders on the part of tho executive because there are these differences of views. Mistakes hare been made, as all know, and I admit; but it seems to mo ofteuer in selections made ol assistants as-sistants appointed to aid in carrying out the various duties ot administering administer-ing the government, iu nearly every case selected without a personal acquaintance ac-quaintance with the a p point e, but upon recommendations of the representatives repre-sentatives chosen directly by tho people. peo-ple. It is impossible, where so many trusts are to be allowed, that the right parties should be chosen in every instance. in-stance. Our history shows that no Administration from the lime of Washington to the present has been fre from thesa mistakes; but I leave comparisons to history, claiming only that I have acted in every instance from a conscientious desire to do what wag right, constitutional, within the law and for the best interests of the whole people. My failures have been erroriof judsmout, not ot intent. THE REBELS AND RECONSTRUCTION. ATy civil career commenced too, at a most critical and difficult time. Less than four years before the country coun-try had emerged from a conflict such as no other nation had ever survived. Nearly one half of the states had revolted against the government, and of those remaining iaithlul to the Union, a large percentage of the population sympathized with the rebellion, and made an enemy in the rear almost as dangerous as the more honorable enemy in the front. The latter committed errors of judgment, but they maintained them openly and courageously; the former received the protection of the government govern-ment they would see destroyed and reaped all the pecuniary advantage advan-tage to be gained out of the then existing state of aflairs, many of them by obtaining contracts and by swind ling the government in the delivery of their goods. Immediately on the cessation ot hostilities the then nohle president, who bad carried the country so Ur through its perils, fell a martyr to his patriotism at the hands of an assassin. The intervening interven-ing time to my fir?t inauguration was filled up with wrangluigs between congress and tho new executive as to the best mode of reconstruction, or, to speak plainly, as to whether t ie control of the government should bj thrown immediately into the iiAndsol those who had bo recently :d persistently tried to destroy it, or wnether the victors should continue to have an equal voice with them in this control. Reconstruction as finally agreed upon means this and only this, except that the late slave was en franchisee, giving an increase as was supposed to the Union-loving aud Union-supporting votes. If free in the full sense of the word they would not disappoint this expectation. expecta-tion. Hence ai the beginning of my first administration the work of re construction, much embarrassed by the long delay, virtually commencerl. It was the work of ihe legislative branch of the government. My province was wholly in approving their acts, which I did moat ho vrtily, urging the legislatures of the states that had not yet dono so to ratify the fifteenth amendment to the constitution. constitu-tion. The country was laboring under an enormous debt, contracted in the suppression of the rebellion, and taxation was so oppressive as to discourage production. Another danger also threatened us a foreign war. The last dificulty had to be adjusted and was adjusted without a war and in a maner highly honorable to all parties concerned. NATIONAL FINANCS3. Taxes have been reduced within the last seven years nearly $300,000,-000 $300,000,-000 and the national debt has been reduced in tho same time over $-435, -000,000. By refunding the 6 per cent, bonded debt for bonds bearing 5 and 4 per cent, interest respectively, the annual interest has been reduced """ from over $130,000,000 in 1869 to but little over $100,000,000 in 1S7G. The balance of trade baa been changed to from over $130,000,000 against the United States in I860 to more than $120,000,000 in our favor in 1S76. It is confidently believed that the balance of trade in favor of tho United States will increase, not diminish, and the pledge of congress to resume epecie payments in 1W9 will be easily accomplished, even in the absence of much desir! legislation legisla-tion on the subject. THE INDIAN TRIBES. A policy has been adopted toward the Indian tribes inhabiting a large portion of the territory of the United States, which has been humane and has substantially ended Indian ' hostilities in the whole land except in a portion of Nebraska and Dakota, Wyoming Rod Montana, in the Black Hills region and the ap proaches thareto. Hostilities mere have grown out of the avarice ot the white man; who has violated our 1 treaty stipulations in his search for gold. The question might be asked, why the government has not enforced obedience to the terms of the treaty prohibiting the occupation ol the Black Hills region by the whites. The answer is simple. Tho first migrant to the Hills were removed by the troops, but rumors and fresh discoveries of gold took into that region increased numbers. Gold has been found in paying quantity, and an etTort to remove the miners would only result in tho desertion of the bulk of the troops that might be Bent there to remove them. All ditli-cullies ditli-cullies in this matter have t een removed, re-moved, subject to tho approval of congress, by a trebly ceding tho Black Hills aud approaches to settlement by citizens. The subject ot Indian policy and treatmeut is so fully Bet forth by the secretary of toe interior .and tho commissioner of Indian nflairs wid my views are so fully expressed therein, that I refor to iht-fo reports and recommendations hb my , own. j FOIJE1US' AVKAIUfl. I Tho relations of the United Sl.it. h 1 with lormgn powers continue nn a' friendly looting. Questions have arisen from time to Limn in the fnrfjn ! relations of the government, hut llni i 11 United States have been happily free j duriup the past year from the cuinpli. cations of loruign powers. Thediplo matio correnpoudencesubuiiiu! here with contains information as to ' certain of tho matters which have occupied the government. The cor-: cor-: diality which attends our rt Unions with the powers of tho earth has been plainly showu by the general participation partici-pation of foreign nations in the ex-' ex-' hibitiou which has just closed, and by ' exertions made by distant powers to show their interest in a friendly feel-. feel-. ing toward tho United States in the ' commemoration of the Centennial of 1 the nation. The government and 1 people of the United States have not uuiy miiy npjjruiutt-u hub uauhhuui 1 of kindly feeling, but it may be ex ' pec ted that no small bone fin will 1 result, both to ourselves and othet 1 nations, from a better acquaintance and better appreciation of our mutual advantages aud mutual wants. Congress nt its last session saw fit to reduce the amount usua'ly appropriated appro-priated for foreign interconno by withholding appropriations for repre-leutativrt repre-leutativrt of tho Uuited States in certain cer-tain foreign countries, and tor certain consular offices, and by reducing the amounts usually appropriated lor certain cer-tain oilier diplomatic posts, thus necessitating a change in the grade of representatives. For these reasons, immediately upon the pabsage of the hill making appropriations for the diplomatic and consular service lor the present force, instructions wore issued to tho representatives of the United States at Bolivia, Ecuador aud Columbia, and to the consular officers for whom no appropriations had been made, to close their respective legations lega-tions and consulates and cease irom the performance of their duties, and in like manner steps were immediately immedi-ately taken to substitute charge d' aflaires for ministers resident in Portugal, Por-tugal, Denmark, Greece, Switzerland and Paraguay. While thoroughly impressed with the wisdom of sound economy in the foreign Bervice as iu other branches of the government, I cannot escape the conclusion that in some instances the withholding of appropriations will prove an expensive expen-sive economy, and that the small retrenchment secured by a ch-uige of grade in certain diplomatic posts is not an adequate consideration lor the loss of influence and importance which will attend our foreign representatives repre-sentatives under this reduction. I am of the opinion that a re-examination of the subject will cause a change in bo me instances in the conclusion reached on these subjects at the last session of congress. THE ALABAMA CLAIMS. The court of commissioners of Alabama Ala-bama claims, whose functions were continued by an act of the last session ot congress until the first day of January, Janu-ary, 1S77, has carried on its labors with diligence and general satisfaction. satisfac-tion. By a report from the clerk of the court transmitted herewith, bearing bear-ing date November 14, 1S76, it appears that during the time now allowed by law the court will have disposed of nil the claims Dresented for adjudication. This report also, contains a statement of the general j results of the labors of the court to the , date tbercol. It is a cause for satisfaction satis-faction that the method adopted for the satisfaction of the classes of clainiB submitted to the court, which are of long standing and justly entitled enti-tled to early consideration, shuuld have Droved successful and acceptable. BOUNDARY COMMISSIONS. It is with satisfaction that I am enabled to state that the work of the joint commission for determining the boundary line between the United States and the British possessions, from the northwest angle of the Lake of the Woods to the Rocky Mountains, commenced com-menced inlS72, has been completed. The final agreements of the commissioners, commis-sioners, with the maps, have been duly signed and the work of the com-mission com-mission iB complete. Tho fixing of the boundary upon the Pacific coast by the protocol of March 10, 1S72, pursuant to the award of the emperor of Germany by article XXXIV of the treaty of Washington Washing-ton has been fully completed. The termination of the work of the-iG commissions adjusLs and fixes the boundary betweea the United Slates and the British possessions, except as to the portion of the territory terri-tory ceded by Russia to the United States under the treaty of 1807. The worn entrusted to the commissioners commis-sioners and the officers of the army attached to tho commission has been well and satisfactorily porformed. The original of the final agreement of the commissioners, signed upon the 29th of May, 1S76, with the original i list of astronomical stations observed, tho original official list of monuments marking the international oounuary . lines, and the maps, records and gea-, gea-, oral reports relating to the commission have been deposited in the department depart-ment of state. The official report of the commissioner on the part of the United States, with the report ot the chief astronomer of the United Slates, will be submitted to congress within a short time. I reserve for a separate communication communi-cation to congress a statement of the condition of ihe questions which lately arose with Groat Britain respecting the surrender of fugitivo criminals under the treaty of 1842. TURKEY AND THE UNITED STATES. The Ottoman government gave notice on January 15, 1874, of its desire to tormiuale the tre-ityof 1S62, concerning commerce and navigation, naviga-tion, pursuant to the provisions of the twenty-second article thereof. Under this notice the treaty terminated Opon the Olh day of June, 1870. That government has invited negotiations towards the conclusion ef a new I treaty. By the act of congress ot ; March 23, 1S74, the president was I authorized, when he should receive . satisfactory information that the Otto-t Otto-t man government or that of Eypt 1 had orgauized new tribunals likely to i secure to citizens of the United Stale tithe samo impartial justice enjoyed s under the exeroise of judicial func-i func-i lions bv the diplomatic and corsular 1 officers of the UuiUd States, to sus-e sus-e pond the operation of the act ol June ,t -'-Jd 1S00, and to accept for the cili-- cili-- lens of the United States juris-liclion )- of the new tribunals. Satisfactory f information having been received ol k the oreaniiation of such new tnbun-it tnbun-it aU in Kgypt, I caused a proclama-n proclama-n tion to be "issued on the 27th of March 3l last, suspending the operation ol tht ir act of Juno i'2d, 1S60, in Kgypt .a according to the provisions of the act lylA copy of the proclamation accom panies this message. The United States has united with other powers in the organization ol these courts. It is hoped the jurisdictional queslions which have arisen may bo roadily adjusted, and that this evidence of judicial progress there may be hin-. dered by no obstacles. THE SANDWICH ISLANDS. The necessary legislation to carry into effect the commission respecting commercial reciprocity concluded with the Hawaiian islands in 1875 having been had, a proclamation to carry into effect tho convention as provided by the act approvod August 15, 1870, was duly issued in September Sep-tember last. A copy thereof accompanies accom-panies this meanage. MEXICO. The commotions which have been prevalent in Mexico for some lime past, and which, unhappily, seem to bo nut yot wholly quieted, havo led to complaint of citi- vnm nt' lUa. IK.i.l o. ....... juries by persons in authority. It ia hoped,- however, that these will ; ultimately be adjusted to the saliBfac-. saliBfac-. tion of both governments. The fron-, fron-, tier of the United Stales in that quarter has not boon exempt from acts of violence by citizens of our neighboring republic. The frequency of these I suppose to bo increased and their adjustment made more difficult diffi-cult by considerable changes iu the course of the lower part of Ihe Rio Grande river, which river is a part of tho boundary between the two countries. coun-tries. Tlieso changes have placed on either Bide of that rivar a portion ol land which by existing convention belong to the jurisdiction of the government gov-ernment on tho opposite side of the nvor. The subject of the adjustment of this cause ol difficulty is under consideration between the two re- publics. I COLOMBIA. The government of the United States of Colombia has paid the award in the case ot the Bleamer Montijo, seized by the authorities of that government gov-ernment some years since, aud the amount has been transferred to the claimants. THE MEXICAN COMMISSION. It is with satisfaction that I am able to announce that the joint commission com-mission for the adjustment of claims between the United States and Mexico under the convention of 1808, the duration of which has been several times extended, has brought its labors to a close. From the report ot the commission which accompanies the papers transmitted herewith it will be seen that within the lime limited by the commission 1,017 claims on the part of citizens of the United States against Mexico were referred to the commissioners. Of these claims Sol were dismissed or disallowed, and iu 186 cases awards were made in favor of the claimants against the Mexican republic, amounting in the aggregate to $4,125,022.20. Within the same period 90S claims on the part of citizens of the Mexican republic against tre United States were referred refer-red to the commissioners. Of thete claims S31 were dismissed and disallowed, dis-allowed, and in 157 cases awards were made in favor of the claimants against the United States, amounting in the aggregate to $150,498.41. By the terms of the convention the amount of these awards is to be deducted de-ducted from the amount awarded io favor of our citizens agniust Mexico, and the balance only to be paid by Mexico to the United States, leaving the United States to make provisions for their proportion of the awards in favor ol its own citizens. I invite your attention to the legislation which will be necessary to provide for tho payment of these claims. In this connection I am pleased to be able to express the acknowledgments acknowledg-ments due to Sir Edward Thornton, the umpire of the commis-iou, who has given to the consideration of a large number of claims submitted to him much time, unwearied patience and that fairness and intelligence which are well known to belong lo the accomplished representative ot Great Britain, and which are likewise recognized by the representative in this country ol the republic of Mexico. VENEZUELA. Monthly payments of a very small part of the amount due by the government gov-ernment ol Venezuela to citizens of the United States on account of the claims of the latter against that government gov-ernment continue to be made with reasonable punctuality.. That government gov-ernment has proposed to change the system which it has hitherto pursued in this respect by issuing bonds for part of the amount of the several claims. The proposition, however, could not, it is supposed, properly be accepted, at least without the consent of the holders of the certificates ol indebtedness of Venezuela. These are so much dispersed that it would be difficult, if not impossible, to ascertain ascer-tain their diBpoaitiou on the subject. NATURALIZATION, ETC."- In former messages I have called the attention of congress to the necessity of legislation with regard to Iraudulent naluraliza-Lion naluraliza-Lion and to the subject of expatriation and election of nationality. The numbers of persons of foreign birth seeking a home in the United States, and the ease and facility with which the honest immigrant may, after the lapse of a reasonable time, become possessed of all tlio privileges ot citizenship citi-zenship of the United StateB, and the frequent occasions which induce such adopted citizenB to return to the country coun-try of their birth, render the subject ot naturalization and the safeguards which experience has proved necessary neces-sary for the protection of the honest naturalized citizens of paramount importance. im-portance. The very simplicity in the requirements of the law on this question ques-tion aflerd opportunity (or fraud, and the want of uniformity in tho proceedings pro-ceedings and records of the various courts and in the forms of the cer titicates ol naturalization issued afford a constant source of difficulty. I sug-I sug-I gest no additional requirements to itie acquisition ot cuizonslnp peyona those now existing, but I invite the earnest attention of congress to the necessity and wisdom of some provision provi-sion regarding uniformity in the records and certificates, and providing provid-ing against the frauds which frequently fre-quently lake pla -e, and lor the vacating va-cating of a record of naturalization oblaiued in fraud. Ttieoe provisions are needed in aid and for the protection protec-tion ol the houest citizen of foreign birth, aud lor the want of this he is made to sufler not unfrequcntly. The United Suites has insisted upon the right of expatriation, and has obtained alter a long struggle an admission ad-mission of the principle contended I for by the acquiescence therein on Hie part of many loreigo powers, and . by the conclusion of treaties on that Bubjec'. It is, however, but justice to the governments to which such natu-'. natu-'. ralizld citizns have formerly owed d allegiance, as well as to the United rs States, that certain fixed and definite U rulw should be adontad governing is such canes, and providing how expa-ly expa-ly triation may be accomplished, if While immigrants in large numbers i- become citizens ol the UuitZd Slates, it is also true that persons, bolh native born and naturalized, once citizens of the Uuited States, either ' by formal acta or as the eflect of a A series of facta and circumstances, 5 abandon their citizenship and cease G to be entitled to the protection lb of the United States, but continue on t convenient occasions to assert a claim iw to protection in the absence of pro L visions on these quesliouB. MARRIAGES ABROAD. In this connection I again invite 3 your attention to the necessity of leg-B leg-B islation concerning the marriages of American citizens contracted abroad, ' and concerning tho status of Amer-' Amer-' ican women who may marry foreign-. foreign-. ers, and of children born of American parents in a foreign country. The delicate and complicated questions continually occurring with reference to naturalization, expatriation and the Btatus of Biich pcreous as I have above referred to, induce me to earnestly earn-estly direct your attention again to thou subjects. ALIEN CLAIMANTS. In like manner I repeat my recommendation recom-mendation that soma means be provided pro-vided for the hearing and determination determina-tion of the just and subsisting claims of aliens upon the government of the United States within a reasonable limitation of such as may hereafter aride. While by dialing proviaious of law tho court of claims may in certain cases bo resorted to by an alien claimant, the absence of any general provisions governing all such cases, and the want of tribunals skilled in the disposition of such cases upon recognized, fixod and settled principles, either provide no remedy in many deserving cases or compels a consideration of such claims by congress or the executive departments of the government. It is believed that other governments are in advance of the United States upon this question, and that the practice now adopted is entirely unsatisfactory. un-satisfactory. - . . COLORADO. Congress, by an act approved tho 3d of March, 1875, authorized the inhabitants in-habitants of the territory of Colorado to form a state government with the name of the state of Colorado, and therein provided for the admission of eaid Blate when formed into the Union upon an equal footing with the original origi-nal states. A constitution having been adopted and ratified by the people of that state, and the acting governor having certified to me the facts as provided by said act, together with a copy of such constitution and ordnances as provided for in the Baid act, and the provisions of of said act ot congress having been duly complied com-plied with, I issued a proclamation upon the 1st of August, 1876, a copy of which is hereto annexed. THE WAR DEPARTMENT. The report of the secretary of war Bhows that the army has been actively employed during the year in Bubdu-ing, Bubdu-ing, at the request of the Iadian bureau, certain wild bands of the Sioux Indian nation, and in preserving pre-serving peace at the south during the election. The commission constituted consti-tuted under the act of July 24th, 1S76, to consider aud report on the whole subject of reform and reorganization reorgan-ization of the whole army in August last, has collected a large mass of statistics and opinions bearing on the subject before it. These are now under consideration aud the report is progressing, I am advised though, by the president ol the commission, that it will be impracticable to comply com-ply with the clause of the act requiring requir-ing the report to be presented through me to congress on tne first day of this session, as there has not been timo for that mature deliberation delibera-tion which the importance of the subject demands. Therefore I ask that the time of making the report be extended to the 29ih day of January, 1877. In accordance with the resolution reso-lution of August 15th, 1S76, the army regulations prepared under the act of March 1st, 1S75, have not been promulgated, pro-mulgated, but are held until after the report of the above mentioned commission com-mission shall have been received and acted upon. By the act of August 15th, 1376, the cavalry force of the army was increased by 2,500 men, with aproviso that thr:y should b discharged dis-charged on the expiration of the Indian In-dian hostilities. On this authority the cavalry regiments have been strengthened, aud a portion of them are now in the field pursuing the remnants of the Indians with whom they have been engaged during the summer. The estimates of the war department depart-ment are made upon the basis of th'i 1 uumber of men authorized by law and'their requirements, as shown by years of experience, and also with . the purpose on the part of the bureau i officers to provide for all contingencies t that may arise during tho time for which the estimates are made, hx- ( elusive of ttie engineer's estimate j ! presented in accordance with the acLi , ol congress calling lor surveys and , estimates for improvements at various , localities, tne estimates now presented ( are about f0,000,00j in excess of the appropriations for the ye irs 1S74-75 and 1875 76. This men-use is aked . in order to provide for lug increased cavalry force, should ihcir services be necessary; to prosecuio economically the work upon imporl.vnt public buildings; to provido for the arma- , ment of the fortifications and the manufacture of email arum, and to replenish the working stock in the supply department. The appropriations appropria-tions for these last named have for the past ten years been to limited that the accumulations in store will be entirely exhausted during the present year, and it will be necessary to at once begin to replenish them. I invite your special attention to the following recommendations of the secretary of war: First, That the claims under the act ml 4th July, 1S04, for supplies taken by the army during the war be removed from the offices ol the quartermaster and commissary com-missary generals, and transferred to the southern claims commission. These claims are of a precisely similar nature to those now before the south-i south-i ern cliims commission, and the war . department bureaus have U 't the i clerical force for their examination, t nor the proper machinery for invest! gating the loyalty of the claimanie ! Secoud, That congress Banrtion Hit j Bcheme of an annuity fund for the . benefit of the familes of deceased 1 officers, and that it also provides for i the permanent organization of the 1 regular service, bolh of which werp i recommended in my last annual message. Third, That the manufac - luring operations of the ordnance a department be concentrated at three 1 arsenals and an armory, and that the b remaining arsenals be sold and the I proceeds applied to this object by the - ordnance department. HiVESid AND nABBOBS. The appropriations for river and I harbor improvements for the current , year wore $5, 015,000. With my ap- proval the secretary of war directed that of this amount $2,000,000 should be expended, and no new works ; should be begun and none prosecuted, which were not of national importance. import-ance. Subsequently this amount was increased to $'2,237, 600, and the rtorks are now progressing on this basis. EAD3' JETTIES. The improvement of the south pass of the Mississippi river, under James B. Kads and hii associates, is progressing pro-gressing favorably. At the present time there is a chaunel of 20 S lOths feet in depth between the jetties at the mouth of the passes, aud ISJ feet at the head ol tho pass. Neither channel, however, has the width required before payments can be made by the United States. A commission com-mission ot engineer officers is now examining tilpyp wnrL-n finH iln ronnrt will be presented as soon as received. THE NAVY. The secretary of the navy shows that this branch of the service is in a condition as effective aBit is possible to keep it, with tho meaoB the appropriations give the department. It ia ol course impossible to rival the costly and progressive establishments of the great .European powera wilh the old material of our navy, to which no mcrouao bus beon authorized since the war, except tho eight small cruisers cruis-ers built to supply the place of others which had gone to decay, yet the most has been done that was possible with the means at command, and by substantially rebuilding some of our old ships wilh durable material, and completing, repairing aud refitting our monitor fleet the navy has been gradually so brought up that though it does not maintain its relative position posi-tion among the progressive navies of the world, it ie now in a condition more powerful and eSective than it ever has been in time of peace. The complete repairs of our five heavy ironclads are only delayed on account of the inadequacy of the appropriations appropria-tions made last year for the working bureaus of the department, which were actually less in amount than those made before the war, notwithstanding notwith-standing the greailyonhanced price of labor and materials, aud the increase in1 tho .cost of the naval service, growing out of the universal use and great expense of steam machinery. The means necessary for these repairs shouid be provided at once, that they may be completed without further unnecessary delay and expense. When this U done all the strength that there is in the navy will be developed and uBeful to its full capacity, and all will be power-tul power-tul for the purpose of defence, and also for offensive action, should the necessity for that arise, within a reasonable distance from our shores, and the fact that our navy is not more modern and powerful than it is has been made a cause of complaint against the secretary of the navy by persons who, at the same time, criticise criti-cise and complain of his endeavorB to bring the navy that we have to its best and most efficient condition. But the good sense of the country will understand that it ia really to his practical action that we have at this time any eflective naval force at command. com-mand. THE rOSTOFFICS. The report of the postmaster general gen-eral shows the excess of the expenditures, expen-ditures, excluding expenditures on account of the previous year, over the receipts for tho fiscal year ended Juno 20, 1S76, to be $4,151,9SS.G0. The estimated expenditures for the fiscal year ending June 30, 1S73, ate $36,723,432.43. The estimated revenue reve-nue for the same period is $30,G45,-165, $30,G45,-165, leaving an estimated excess of expenditure, to bo appropriated as a deficiency, of $6,078,267.43. The postmaster general, lite his predecessor, prede-cessor, is convinced that a change in the basis of adjusting the salaries of postmasters of the fourth class, is necessary ior the good of the service, as well as lor the interests of the government, and urgently recommends recom-mends that the compensation of the class of postmasters above mentioned be based upon the business of their respective offices, as ascertained froiu the sworn returns to the audit-on, audit-on, of Ihe amount of Btamps cancelled. FRIGHTENED POST1I iS rERS. A few postmasters in the southern states have expressed groat apprehon-sion apprehon-sion of their personal satety on account of their connection wilh the postal service, and have specially requested that their reports of apprehended appre-hended danger should not he made public, lest it Bhould result in the loss of their lives, but no positivo testimony testi-mony of interference has been submitted, sub-mitted, except in the case ot a mail messenger at Spartanburg, in South Carolina, who reported that he had been violently driven away while m charge of the mails, on account of j his political affiliations. The assist- ant superintendent of the railway mail service investigated this case and reported that tho messenger has disappeared from his post, leaving his J work to be performed by a substitute. The postmaster central thinks lhat this case is sufficiently euggesiive to justify him in recommending that a , more severe punishment should be , provided for the offwuce of assaulting any perron in charge of the mails, or of retarding or otherwise obstructing obstruct-ing them by threats ol persoual injury. in-jury. A very gratifying result is presented in the fact that the deficiency of this department during the last fiscal year was reduced to $4,081,790.18 as against $6,169, 93S.S8 of the preceding preced-ing year. Tho difference can be traced to the large increase ot the ordinary receipls, which greatly exceeded ex-ceeded the estimates therelor, and a slight decrease in its expenditures. The ordinary receipts of the postoffice department for the seven past fiscal years have increased at an average rale of over 8 per cent, per annum, while the incrcato of the expenditure expendi-ture for the Bame period has been about 5 50 per cent, per annum, aLd the doorcase oi deficiency in ibe revenues has becD at the rate of nr.irly 2 per cent, per annum. aokiccl-cral. Thf r' port of the commissioner ot i-nniU'.irc, accompanying this mes-s)t-f, will be found one ol great intercut, inter-cut, marking, as it does, the great prozrpss in Ihe last century in the vtirit ty nt pnvlnrts ol the soil, the in-iTC. in-iTC. ".--! knowledge and kill in the l.ih'ir o'. producing, wiving ai d man-nfrtt'tiiriiic man-nfrtt'tiiriiic the name tn prepare them for the uc of nmn; in (he improve mvui of machinery to aid the agri-I agri-I cuiturist in his labors and a knowl- i edge of scientific subjects necessary tc i a thorough system in the economy oi i agricu';ural production: namely, chemistry, botany, etymology, etc. A study of this report by those inter-I inter-I ested in agriculture and deriving their support from it, will be found ot value in pointing out those articles which are raised in greater quantity than the needs of the world require, and which must sell, therefore, for less than the cost of production, and those which command a profit over the cost ol production, because there is not an over production. I call special attention to the need of the department for a new gallery for tho reception of the exhibits returned re-turned from the Centennial exhibition, exhibi-tion, including the exhibits donated by very many foreign nations, and to the recommendations of the commissioner commis-sioner of agriculture generally. DISTRICT OF COLUMBIA. The reports of the district commissioners commis-sioners and tho board ol health are just received, too late to read them and to make recommendations thereon, and are herewith submitted. THE CENTENNIAL. The International exhibition held in Philadelphia this year in commemoration commemo-ration of the one hundredth anniversary anniver-sary of American independence, has proven a great success and will no doubt be ot enduring advantage to the country. It has shown great progress pro-gress in the arts, sciences and mechanical skill made in a single century, and demonstrated that we are but Httlo behind the oMtr mitions in any one branch, while in some we scarcely have a rival. It has served to not only bring the people and products pro-ducts of their skiii and labor from all parts of tho world together, but in bringing together people from all sections sec-tions of our own country, which must prove a great benefit in the information informa-tion imparted and pride of country engendered. It has been suggested by scientists interested in aud connected con-nected wilh the Smithsonian institute, insti-tute, in a communication transmitted herewith, that the government exhibit ex-hibit be removed to the capital and a suitable building be erected or par-chased par-chased for its accommodation as a permanent exhibit. I earnestly recommend this, and believing lhat congress would second this view, I directed that all tho government exhibits ex-hibits at the Centennial exhibition should remain whore they are, except such as miglit be injured by remaining remain-ing in a building not intended as a protection lrom inclement weather, or such as may be wanted by the department de-partment furnishing them, until the question of a permanent exhibition is acted upon. Although the moneys appropriated by congress to enable the participation of the several executive execu-tive departments in the International exhibition of 1S76 were not sufficient to carry out the undertaking to the iuii extent at ursi contempiaieu, it gives me pleasure to refer to the very efficient and creditable manner in which the efforts of these several departments de-partments to provide an exhibition on the part of the government, have dis charged their duties with the binds placed at their command and without with-out a precedent to guide them in the preparation of such i display. The success of their labors was amply attested by the sustained attention which the contents of the coveroment building attracted dnring tho period of exhibition, from both foreign and native people. I am strongly impressed im-pressed with the value of the collection collec-tion made by the government for the purposes of the exliibitiou, ilustrating as it does the general resources of the countrythe statistical and practical evidences of our growth as n nation, aud the uses ot tho mercantile arts and tho applications of applied science sci-ence iu the administration of tho aflairs of the government. Many nations have voluntarily contributed their exhibits to the United States to increase the interest in any permanent perma-nent exhibition congress may provide ior. For this act of generosity they flhould receive the thanks of tho people peo-ple and I respectfully suggest that a resolution of congress to that effect be adopted. THE ELECTORAL SYSTEM. The attention of congress cannot bo too earnestly called to the necessity neces-sity of throwing Bomo greater safeguard safe-guard over the method of choosing and declaring the election of a president. presi-dent. Under the present system there seems to be no provided remedy for contesting the election of any one Btate. ThB remedy iB no doubt partly in the enlightenment of electors. The compulsory support of the free school, and the disfranchisement of all who cannot read and write the English language after a fixed probation, would meet my hearty approval. I would not make this apply, however, to those already voters; but I would to all becoming so, that after the expiration ex-piration of the probation fixed upjn, foreigners coming to the country coun-try to become citizens, who are educated in their own language would acquire the requisite knowledge oi ours during the necessary residence to obtain naturalization. If they did , . not take enough interest in our language to acquire sufficient knowledge of it to enable them to study the institutions and laws of the country intelligently, 1 would not confer upon thorn the right to make such laws, nor to select those who do. ; THANK YOU, SIR ! 1 I append to this message for 1 convenient reference, a synopsis ' of tho administrative events and ot I all recommendations to congress made by mo during tho last seven " years. Time may show some ol " these rccoiii mendati jus not to have been wisely conceived, but I believe ' the larger part will be no discredit lo 5 the administration. One of these ' recommendations met with the uuited opposition of one political party in " the BCuatc and with a tlrong oppoci- B tion from tho other, namely, the e treaty for the ANNEXATION OF SANTA DOMINGO , to the Ucited Slates, to which I shall q especially refer, maintaining, as I do. kj that if my views had been concurred e in the country would be in a more ! prosperous condition In -day, politically ;'. and financially. H-mia Dumingo is a tf fertile country, and upon its soil may he grown just thfe tropical products p il which tlio United Stales- use b r much, and which are produced or prepared for market now by plave labor ulmvl exelusi vi ly, n imely. sugar. c"ifl"e, dye woo. In, mahogany. 3j tropical mils, tnlucco, etc. U'ul i- 75 per cent, of the exports rf Cuba r- are consumed in the United Stake l A large per rentage ol ttie exp irU ol ip Brnzil fmd the Btmc mirk-ft n- These are p.iJ f r nlml x lu-ncly ,c in coin, li'.iliun, purli-tilarly ii. a- Cuba, being unfuvorali'.e to a nmttiai m exchange of 1 i.o p-iurU of ra'b e country. f lo:ir Mip; H from the ri-1 Mississippi river to Havana can :l-lpafB ly Ihe very entrance lo 1 lhat city on its way to a pert in Spain. ' It then pays a duty fixed upon articles arti-cles lo ba re-exported, tranef. rrrd to a Spanish vessel and brought luck almost to the point of starling, p iyi-,g a second duly, and still having a 1 profit over what would be received by direct shipment. All that is pro luctil in Cuba could be produced in Smta Domingo, being a part of the Uniud Stales, commerce between the inland and ihe main laud would bo free. There would bo no export duties o:i her shipments nor import duties of those coming here. There would be no import im-port duties upon supplies, machinery, etc., coiog from the eutes. The etfect that would have bosu produced upon Cuban commerce wil:i these advantages to a rival is observable ai a glance. 1 he Cuban question would have been settled long ago in uvor of FI1EE ClTtA. Hundreds of American vessels would ' now be advantageously used m trans porting the valuable woods ;md otiur . products ol the soil ot the island to a I market, and in carry inn supnles and emigrants to it. The island i but sparsely settled, wbilo it has an are 3 sufficient for the profitable employment employ-ment of eeveral million of people. The soil would soon havo fallen into 3 ihe bauds of United States capitalists. J The products are so valuable in com -5 merce that emigration there would havo been encouraged, the emanei-' emanei-' pated race of the south would have G found there a congenial borne, where e thoir civil rihu would not lu dis-8 dis-8 puted and where their labor wuald be much sought after, aud the poorest 1 among them could have found the " means lo go. Thus in cases of great oppression op-pression and cruelty, such as has been practised upon them iu many place " within the last eleven years, whulo 1 communities would have sought reluge in rianta Domingo. I do not suppose the whole race would have gone, nor is it desirable that thev ' should go. Their labor is desirable and indispensable almost, where they now are; but the possession of the territory would have left the negro k master of the situation, by enabling him lo demand his rights at home on pain of Bendinc him elsewhere. I do not present these views now aa a recommendation ot the renewal of the subject of annexalion; but I refer to it to vindicate my previous action iu regard to it. With the present congress my official lifo terminates. It is not probable that public affairs will ever again receivo attention from me further fur-ther than as a citizen of the republic, alwayB taking a deep interest in the honor and integrity and prosperity of the whole land. (Signed,) U. S. GRAXT. Executive Mansion, Dec. 5, 1S76. |