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plenipotentiary of His Majesty the king of and the islands adjacent thereto, in vessels Spain, that the Government of that country belonging to citizens of the United States shall has abolished discriminating duties heretofore be exempt from discriminating duties, any imposed on merchandise imported from all such duties on merchandise imported into the other countries, excepting the islands of Cuba United States in Spanish vessels, excepting and Porto Rico, into Spain and the adjacent from the islands of Cuba and Porto Rico, shall islands, in vessels of the United States, said be discontinued and abolished. abolition to take effect from and after the 1st In testimony whereof I have hereunto set day of January next:

my hand, and caused the seal of the United Now, therefore, I, ULYSSES S. Grant, Presi. State to be affixed. dent of the United States of America, by virtue Done at the city of Washington, this 19th of the authority vested in me by an act of Con

day of December, in the year of our gress of the 7th day of January, 1824, and by [SEAL.] Lord 1871, and of the Independence an act in addition thereto, of the 24th day of

of the United States of America the May, 1828, do hereby declare and proclaim

ninety-sixth. that on and after the said 1st day of January

U. S. GRANT. next, so long as merchandise imported from By the President: any other country, excepting the islands of

HAMILTON FISH, Cuba and Porto Rico, into the ports of Spain

Secretary of State.

IV.

PRESIDENT GRANT'S SECOND AND THIRD ANNUAL

MESSAGES.

[For his

First Annual Message, see McPher: It is not understood that the condition of son's History of Reconstruction, pages 533- the insurrection in Cuba has materially changed 540.]

since the close of the last session of Congress.

In an early stage of the contest the authorities President Grant's Second Annual Message. of Spain inaugurated a system of arbitrary December 5, 1870.

arrests, of close confinement, and of military

trial and execution of persons suspected of To the Senate and House of Representatives : complicity with the insurgents, and of sum

A year of peace and general prosperity to mary embargo of their properties, and sequesthis nation has passed since the last assem tration of their revenues by executive warrant. bling of Congress. We bave, through a kind Such proceedings, so far as they affected the Providence, been blessed with abundant crops. persons or property of citizens of the United and have been spared from complications and States, were in violation of the provisions of war with foreign nations. In our midst com the treaty of 1795 between the United States parative harmony has been restored. It is to and Spain. Representations of injuries re. be regretted, however, that a free exercise of sulting to several persons claiming to be citthe elective franchise has, by violence and izens of the United States, by reason of such intimidation, been denied to citizens in excep- violations, were made to the Spanish Govern. tional cases in several of the States lately in ment. From April 1869 to June last the rebellion, and the verdict of the people has Spanish minister at Washington had been thereby been reversed. The States of Vir- clothed with a limited power to aid in redressginia, Mississippi, and Texas have been re- ing such wrongs. That power was found to be stored to representation in our national coun. withdrawn, " in view,'' as was said, “ of cils. Georgia, the only State now without the favorable situation in which the island of representation, may confidently be expected Cuba" then“ was ;'' which, however, did not to take ber place there also at the beginning lead to a revocation or suspension of the exof the new year; and then, let us hope, will traordinary and arbitrary functions exercised be completed the work of reconstruction. by the executive power in Cuba, and we were With an acquiescence on the part of the whole obliged to make our complaints at Madrid. In people in the national obligation to pay the the negotiations thus opened, and still pendpublic debt, created as the price of our Union; ing there, the United States only claimed that, the pensions to our disabled soldiers and sail. for the future, the rights secured to their citors, and their widows and orphans; and in izens by treaty should be respected in Cuba, the changes to the Constitution which have and that, as to the past, a joint tribunal should been made necessary by a great rebellion, be established in the United States, with full there is no reason why we should not advance jurisdiction over all such claims. Before such in material prosperity and happiness, as no an impartial tribunal each claimant would be other nation ever did, after so protracted and required to prove his case. On tbe other devastating a war.

hand, Spain would be at liberty to traverse

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every material fact, and thus complete equity of the products of northern farms and manu. would be done.

factories. The cheap rate at which her citi. During the last session of Congress a treaty zens can be furnished with food, tools, and for the annexation of the republic of San machinery will make it necessary that contiguDomingo to the United States failed to re- ous islands should have the same advantages, ceive the requisite two-thirds vote of the Sen- in order to compete in the production of sugar, ate. I was thoroughly convinced then that the coffee, tobacco, tropical fruits, &c. This will best interests of this country, commercially open to us a still wider market for our proand materially, demanded its ratification. ducts. The production of our own supply of Time has only confirmed me in this view. I these articles will cut off more than one hunnow firmly believe that the moment it is known dred millions of our annual imports, besides that the United States have entirely abandoned largely increasing our exports. With such a the project of accepting, as a part of its terri- picture it is easy to see how our large debt tory, the island of San Domingo, a free port abroad is ultimately to be extinguished. With will be negotiated for by European nations in a balance of trade against us (including interthe Bay of Samana. A large commercial city est on bonds held by foreigners and money will spring up, to which we will be tributary spent by our citizens traveling in foreign lands) without receiving corresponding benefits, and equal to the entire yield of the precious metals then will be seen the folly of our rejecting so in this country it is not so easy to see how this great a prize. The Government of San Do- result is to be otherwise accomplished. mingo bas voluntarily sought this annexation. The acquisition of San Domingo is an adherIt is a weak Power, numbering probably less ence to the “Monroe doctrine;" it is a measthan one hundred and twenty thousand souls, ure of national protection; it is asserting our and yet possessing one of the richest territories just claim to a controlling influence over the under the sun, capable of supportivg a popu- great commercial traffic soon to flow from lation of ten millions of people in luxury. The west to east, by way of the Isthmus of Darien ; people of San Domingo are not capable of it is to build up our merchant marine; it is to maintaining themselves in their present condi. furnish new markets for the products of our tion, and must look for outside support. They farms, shops, and manufactories; it is to make yearn for the protection of our free institutions slavery insupportable in Cuba and Porto Rico and laws; our progress and civilization. Shall at once, and ultimately so in Brazil; it is to we refuse them?

settle the unhappy condition of Cuba and end The acquisition of San Domingo is desirable an exterminating conflict; it is to provide because of its geographical position. It com honest means of paying our honest debts withmands the entrance to the Caribbean sea and out overtaxing the people; it is to furnish our the Isthmus transit of commerce. It possesses citizens with the necessaries of every-day life the richest soil, best and most capacious har- at cheaper rates than ever before; and it is, bors, most salubrious climate, and the most in fine, a rapid stride toward that greatness valuable products of the forest, mine, and soil which the intelligence, industry, and enterof any of the West India islands. Its posses- prise of the citizens of the United States entitle sion by us will in a few years build up a coast- this country to assume among nations. wise commerce of immense magnitude, which In view of the importance of this question will go far toward restoring to us our lost I earnestly urge upon Congress early action, merchant marine. It will give to us those expressive of its views as to the best means of articles which we consume so largely and do acquiring. San Domingo. My suggestion is not produce, thus equalizing our exports and that, by joint resolution the two Houses imports. In case of foreign war it will give of Congress, the Executive be authorized to us command of all the islands referred to, and appoint a commission to negotiate a treaty thus prevent an enemy from ever again pos- with the authorities of San Domingo for the sessing himself of rendezvous upon our very acquisition of that island, and that an appro

At present our coast trade between priation be made to defray the expenses of the States bordering on the Atlantic and those such commission. The question may then bordering on the Gulf of Mexico is cut into by be determined, either by the action of the the Bahamas and the Antilles. Twice we Senate upon the treaty or the joint action of must, as it were, pass through foreign coun- the two Houses of Congress, upon a resolutries to get, by sea, from Georgia, to the west tion of annexation, as in the case of the accoast of Florida.

quisition of Texas. So convinced am I of San Domingo, with a stable government, the advantages to flow from the acquisition under which her immense resources can be of San Domingo, and of the great disadvandeveloped, will give remunerative wages to tages, I might almost say calamities, to flow tens of thousands of laborers not now upon from non-acquisition, that I believe the subthe island. This labor will take advantage of ject has only to be investigated to be approved. every available means of transportation to It is to be regretted that our representations abandon the adjacent islands and seek the in regard to the injurious effects, especially blessings of freedom and its sequence, each upon the revenue of the United States, of the inhabitant receiving the reward of his own policy of the Mexican Government, in exemptlabor. Porto Rico and Cuba will have to ing from impost duties a large tract of its terabolish slavery, as a measure of self-preserva- ritory on our borders, have not only been tion, to retain their laborers.

fruitless, but that it is even proposed in that San Domingo will become a large consumer country, to extend the limits within which the

coast.

privilege adverted to has hitherto been en-thorities toward the fishermen of the United joyed. The expediency of taking into your States during the past season has not been serious consideration proper measures for marked by a friendly feeling. By the first countervailing the policy referred to will, it is article of the convention of 1818, between presumed, engage your earnest attention. Great Britain and the United States, it was

The massacres of French and Russian res- agreed that the inhabitants of the United idents at Tien-Tsin, under circumstances of States should have forever, in common with great barbarity, were supposed by some to British subjects, the right of taking fish in have been premeditated, and to indicate a pur- certain waters therein defined. In the waters pose among the populace to exterminate for not included in the limits named in the coneigners in the Chinese empire. The evidence vention (within three miles of parts of the fails to establish such a supposition, but shows British coast) it has been the custom for many a complicity between the local authorities and years to give to intruding fishermen of the the mob. "The Government at Pekin, how- United States a reasonable warning of their ever, seems to have been disposed to fulfill its violation of the technical rights of Great treaty obligations so far as it was able to do so. Britain. The imperial Government is underUnfortunately, the news of the war between stood to have delegated the whole or a share the German States and France reached China of its jurisdiction or control of these in-shore soon after the massacre. It would appear fishing grounds to the colonial authority known that the popular mind became possessed with as the Dominion of Canada, and this semithe idea that this contest, extending to Chi- independent but irresponsible agent has exernese waters, would neutralize the Christian cised its delegated powers in an unfriendly influence and power, and that the time was way. Vessels have been seized without notice coming when the superstitious masses might or warning, in violation of the custom preexpel all foreigners and restore mandarin in viously prevailing, and have been taken into Auence. Anticipating trouble from this cause the colonial ports, their voyages broken up, I invited France and North Germany to make and the vessels condemned. an authorized suspension of hostilities in the There is reason to believe that this unfriendly East, (where they were temporarily suspended and vexatious treatment was designed to bear by act of the commanders,) and to act together barshly upon the hardy fishermen of the Unifor the future protection, in China, of the lives ted States, with a view to political effect upon and properties of Americans and Europeans. this Government. The statutes of the Domin

Since the adjournment of Congress the rati- ion of Canada assume a still broader and more fications of the treaty with Great Britain for untenable jurisdiction over the vessels of the abolishing the mixed courts for the suppres- United States. They authorize officers or persion of the slave trade, have been exchanged. sons to bring vessels hovering within three It is believed that the slave trade is now con- marine miles of any of the coasts, bays, creeks, fined to the eastern coast of Africa, whence or harbors of Canada into port, to search the the slaves are taken to Arabian markets. cargo, to examine the master on oath touch

ing the cargo and voyage, and to inflict upon I regret to say that no conclusion has been him a beavy pecuniary penalty if true answers reached for the adjustment of the claims are not given ; and if such a vessel is found against Great Britain growing out of the preparing to fish" within three marine miles course adopted by that Government during of any of such coasts, bays, creeks, or harbors the rebellion. The cabinet of London, so far without a license, or after the expiration of as its views have been expressed, does not he period named in the last license granted appear to be willing to concede that her Majes- to it, they provide that the vessel, with her ty's Government was guilty of any negli- tackle, &c., shall be forfeited. It is not known gence, or did or permitted any act during the that any condemnations have been made under war, by which the United States has just cause this statute. Should the authorities of Canada of complaint. Our firm and unalterable con- attempt to enforce it, it will become my duty victions are directly the reverse. I therefore to take such steps as may be necessary to prorecommend to Congress to authorize the ap- tect the rights of the citizens of the United pointment of a commission to take proof of States. the amounts, and the ownership of these sev- It has been claimed by her Majesty's officers eral claims, on notice to the representative of that the fishing-vessels of the United States her Majesty at Washington, and that authority have no right to enter the open ports of the be given for the settlement of these claims by British possessions in North America, except the United States, so that the Government for the purposes of shelter and repairing damshall have the ownership of the private claims, ages, of purchasing wood, and obtaining as well as the responsible control of all the water; that they have no right to enter at demands against Great Britain. It cannot be the British custom-houses or to trade there necessary to add that, whenever her Majesty's except in the purchase of wood and water; Government shall entertain a desire for a full and that they must depart within twenty-four and friendly adjustment of these claims, the hours after notice to leave. It is not known United States will enter upon their consider that any seizure of a fishing-vessel carrying the ation with an earnest desire for a conclusion Alag of the United States has been made under consistent with the honor and dignity of both this claim. So far as the claim is founded on an nations.

alleged construction of the convention of 1818 The course pursued by the Canadian au- lit cannot be acquiesced in by the United States.

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It is hoped that it will not be insisted on by During the administration of Mr. John her Majesty's Government.

Quincy Adams, Mr. Clay unanswerably demDuring the conferences which preceded the onstrated the natural right of the citizens of negotiation of the convention of 1818 the the United States to the navigation of this British commissioners proposed to expressly river, claiming that the act of the congress of exclude the fishermen of the United States Vienna, in opening the Rhine and other rivers from the privilege of carrying on trade with to all nations, showed the judgment of Euany of his Britannic Majesty's subjects re: ropean jurists and statesmen that the inhabsiding within the limits assigned for their use;"' itants of a country through which a navigable and also that it should not be “lawful for the river passes have a natural right to enjoy the vessels of the United States, engaged in said navigation of that river to and into the sea, fishery, to have on board any goods, wares, even though passing through the territories of or merchandise whatever, except such as may another Power. This right does not exclude be necessary for the prosecution of their voy- the coequal right of the sovereign possessing ages to and from the said fishing grounds. the territory through which the river deAnd any vessel of the United States which bouches into the sea to make such regulations shall contravene this regulation may be seized, relative to the police of the navigation as may condemned, and confiscated with her cargo. ."' be reasonably necessary; but those regula

This proposition, which is identical with tions should be framed in a liberal spirit of the construction now put upon the language of comity, and should not impose needless bur. the convention, was emphatically rejected by dens upon the commerce which ha

the right the American commissioners, and thereupon of transit. It has been found in practice more was abandoned by the British plenipotentia- advantageous to arrange these regulations by ries, and article one, as it stands in the con- mutual agreement. The United States are vention, was substituted.

ready to make any reasonable arrangement If, however, it be said that this claim is as to the police of the St. Lawrence which founded on provincial or colonial statutes, and may be suggested by Great Britain. not upon the convention, this Government If the claim made by Mr. Clay was just when cannot but regard them as unfriendly, and in the population of States bordering on the shores contravention of the spirit, if not of the let- of the lakes was only three million four hun. ter of the treaty, for the faithful execution of dred thousand, it now derives greater force which the imperial Government is alone and equity from the increased population, responsible.

wealth, production, and tonnage of the States Anticipating that an attempt may possibly on the Canadian frontier. Since Mr. Clay adbe made by the Canadian authorities in the vanced his argument in behalf of our right the coming season to repeat their unneighborly principle for which he contended has been freacts toward our fishermen, I recommend you quently, and by various nations, recognized by to confer upon the Executive the power to law or by treaty, and has been extended to suspend, by proclamation, the operation of several other great rivers. By the treaty conthe laws authorizing the transit of goods, cluded at Mayence, in 1831, the Rhine was wares, and merchandise in bond across the declared free from the point where it is first territory of the United States to Canada ; and navigable into the sea. By the convention further, should such an extreme measure be between Spain and Portugal, concluded in come necessary, to suspend the operation of 1835, the navigation of the Douro, throughout any laws whereby the vessels of the Dominion its whole extent, was made free for the sabof Canada are permitted to enter the waters jects of both crowns. In 1853 the Argentine of the United States.

Confederation by treaty threw open the free A like unfriendly disposition has been mani. navigation of the Parana and the Uruguay to fested on the part of Canada in the maintenance the merchant vessels of all nations. In 1856 of a claim of right to exclude the citizens of the Crimean war was closed by a treaty which the United States from the navigation of the provided for the free navigation of the Danube. St. Lawrence. This river constitutes a natural In 1858 Bolivia, by treaty, declared that it reoutlet to the ocean for eight States with an garded the rivers Amazon and La Plata, in aggregate population of about seventeen million accordance with fixed principles of national six hundred thousand inhabitants, and with an law, as highways or channels opened by naaggregate tonnage of six hundred and sixty- ture for the commerce of all nations. In one thousand three hundred and sixty-seven 1859 the Paraguay was made free by treaty, tons upon the waters which discharge into it. and in December 1866 the Emperor of Brazil, The foreign commerce of our ports on these by imperial decree, declared the Amazon tó waters is open to British competition, and the be open, to the frontier of Brazil, to the mermajor part of it is done in British bottoms. chant ships of all nations.

If the American seamen be excluded from The greatest living British authority on this this natural avenue to the ocean, the monop subject, while asserting the abstract right of oly of the direct commerce of the lake ports the British claim, says: “It seems difficult to with the Atlantic would be in foreign hands; deny that Great Britain may ground her refusal their vessels on transatlantic voyages having upon strict law, but it is equally difficult to an access to our lake ports which would be deny, first, that in so doing she exercises denied to American vessels on similar voyages. barshly an extreme and hard law; secondly, To state such a proposition is to refute its that her conduct with respect to the navigajustice.

tion of the St. Lawrence is in glaring and dis

creditable inconsistency with her conduct with The average value of gold as compared with respect to the navigation of the Mississippi. national currency, for the whole of the year On the ground that she possessed a small 1869, was about one hundred and thirty-four, domain, in which the Mississippi took its rise, and for eleven months of 1870, the same relashe insisted on the right to navigate the entire tive value has been about one hundred and volume of its waters. On the ground that she fifteen. The approach to a specie basis is very possesses both banks of the St. Lawrence, gratifying, but the fact cannot be denied that where it disembogues itself into the sea, she the instability of the value of our currency is denies to the United States the right of navi. prejudicial to our prosperity, and tends to gation, though about one half of the waters keep up prices to the detriment of trade. The of Lakes Ontario, Erie, Huron, and Superior, evils of a depreciated and fluctuating currency and the whole of Lake Michigan, through are so great that now, when the premium on which the river flows, are the property of the gold has fallen so much, it would seem that United States."

the time has arrived when, by wise and pruThe whole nation is interested in securing dent legislation, Congress should look to a cheap transportation from the agricultural policy which would place our currency at par States of the West to the Atlantic sea-board. with gold at no distant day. To the citizens of those States it secures a The tax collected from the people has been greater return for their labor; to the inhab- reduced more than eighty million of dollars per itants of the sea.board it affords cheaper food ; annum. By steadiness in our present course to the nation an increase in the annual surplus there is no reason why, in a few short years, of wealth. It is hoped that the Government the national tax-gatherer may not disappear of Great Britain will see the justice of aban. from the door of the citizen almost entirely. doning the narrow and inconsistent claim to With the revenue stamp dispensed by postwhich her Canadian provinces have urged her masters in every community, a tax upon adherence.

liquors of all sorts, and tobacco in all its forms, Our depressed commerce is a subject to and by a wise adjustment of the tariff, which which I called your special attention at the will put a duty only upon those articles which last session, and suggested that we will in the we could dispense with, known as luxuries, future have to look more to the countries and on those which we use more of than we south of us, and to China and Japan, for its produce, revenue enough may be raised, after revival. Our representatives to all these Gov- a few years of peace and consequent reducernments have exerted their influence to en- tion of indebtedness, to fulfill all our obliga. courage trade between the United States and tions. A further reduction of expenses, in the countries to which they are accredited. addition to a reduction of interest account, But the fact exists that the carrying is done may be relied on to make this practicable. almost entirely in foreign bottoms, and while Revenue reform, if it means this, has my this state of affairs exists we cannot control hearty support. If it implies a collection of our due share of the commerce of the world. all the revenue for the support of GovernThat between the Pacific States and China and ment, for the payment of principal and interJapan is about all the carrying trade now con- est of the public debt, pensions, &c., by ducted in American vessels. I would recom. directly taxing the people, then I am against mend a liberal policy toward that line of Amer- revenue reform, and confidently believe the ican steamers, one that will insure its success, people are with me. If it means failure to and even increased usefulness.

provide the necessary means to defray all the The cost of building iron vessels, the only expenses of Government, and thereby repuones that can compete with foreign ships in diation of the public debt and pensions, then the carrying trade, is so much greater in the I am still more opposed to such kind of rev: United States than in foreign countries that, enue reform. Revenue reform has not been without some assistance from the Government, defined by any of its advocates, to my know! they cannot be successfully built here. There edge, but seems to be accepted as something will be several propositions laid before Con- which is to supply every man's wants without gress in the course of the present session any cost or effort on his part. looking to a remedy for this evil. Even if it A true revenue reform cannot be made in a should be at some cost to the national Treas. day, but must be the work of national legisla. ury, I hope such encouragement will be given tion and of time. As soon as the revenue can as will secure American shipping on the high be dispensed with, all duty should be removed seas and American ship building at home. from coffee, tea, and other articles of univer

sal use not produced by ourselves. The ne. The estimates for the expenses of the Gov- cessities of the country compel us to collect ernment for the next fiscal year are $18,244,- revenue from our imports. An army of as346 01 less than for the current one, but ex- sessors and collectors is not a pleasant sight to ceed the appropriations for the present year, the citizen, but that or a tariff for revenue for the same items, $8,972, 127 56. In this is necessary. Such a tariff, so far as it acts estimate, however, is included $22,338,278 37 as an encouragement to home production, for public works heretofore begun under con- affords employment to labor at living wages, gressional provision, and of which only so in contrast to the pauper labor of the Old much is asked as Congress may choose to give. World, and also in the development of home The appropriation for the same works for the resources. present fiscal year was $11,984,518 08.

Under the act of Congress of the 15th day

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