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of July, 1870, the Army has gradually been office of clerks and employés, who do not rereduced, so that on the 1st day of January, quire the advice and consent of the Senate” 1871, the number of commissioned officers to make their appointments complete. I and men will not exceed the number contem- would have it govern, not the tenure, but the plated by that law.

manner of making all appointments. There The expenses of the Navy for the whole of is no daty which so much embarrasses the the last year, i. e., from December 1, 1869, Executive and heads of Departments as that the date of the last report, are less than nine of appointments; nor is there any such teen million dollars, or about one million dol- arduous and thankless labor imposed on Senlars less than they were the previous year. ators and Representatives as that of finding The expenses since the commencement of this places for constituents. The present system fiscal year, i. e., since July 1, show for the does not secure the best men, and often not five months a decrease of over two million four even fit men, for public place. The elevation hundred thousand dollars from those of the and purification of the civil service of the corresponding months of last year. The esti- Government will be hailed with approval by mates for the current year were $28,205,671 37. the whole people of the United States. Those for the next year are $20,683,317, with Reform in the management of Indian affairs $955,100 additional for necessary permanent has received the special attention of the Adimprovements. These estimates are made ministration from its inauguration to the present closely for the mere maintenance of the naval 'day. The experiment of making it a missionestablishment as it now is, without much in ary work was tried with a few agencies given the nature of permanent improvement. The to the denomination of Friends, and has been appropriations made for the last and current found to work most advantageously. All years were evidently intended by Congress, agencies and superintendencies not so disand are sufficient only, to keep the Navy on posed of were given to officers of the Army. its present footing by the repairing and refit. The act of Congress reducing the Army renting of our old ships.

ders Army officers ineligible for civil positions. This policy must, of course, gradually but Indian agencies being civil offices, I determsurely destroy the Navy, and it is in itself far ined to give all the agencies to such religious from economical, as each year that it is pur denominations as had heretofore established sued the necessity for mere repairs in ships missionaries among the Indians, and perhaps and navy-yards becomes more imperative and to some other denominations who would unmore costly; and our current expenses are dertake the work on the same terms; that is, annually increased for the mere repair of ships, as a missionary work. The societies selecteá many of which must soon become unsafe and are allowed to name their own agents, subject useless. I hope during the present session of to the approval of the Executive, and are exCongress to be able to submit to it a plan by pected to watch over them and aid them as which naval vessels can be built and repairs missionaries, to Christianize and civilize the made with great saving upon the present Indian, and to train him in the arts of peace. cost.

The Government watches over the official acts It can hardly be wise statesmanship in a of these agents, and requires of them as strict Government which represents a country with an accountability as if they were appointed in over five thousand miles of coast line on both any other manner. I entertain the confident oceans, exclusive of Alaska, and containing hope that the policy now pursued will, in a forty millions of progressive people, with rela- few years, bring all the Indians upon reservations of every nature with almost every foreign tions, where they will live in houses, have country, to rest with such inadequate means school-houses and churches, and will be purof enforcing any foreign policy, either of pro- suing peaceful and self-sustaining avocations, tection or redress. Separated by the ocean and where they may be visited by the law.abidfrom the nations of the eastern continent, our ing white man with the same impunity that he Navy is our only means of direct protection to now visits the civilized white settlements. I our citizens abroad, or for the enforcement of call your special attention to the report of the any foreign policy.

Commissioner of Indian Affairs for full inThe accompanying report of the Postmaster formation on this subject. General shows a most satisfactory working of During the last fiscal year eight million that Department. With the adoption of the ninety-five thousand four hundred and thirteen recommendations contained therein, particu- acres of public land were disposed of. Of this larly those relating to a reform in the franking quantity three million six hundred and ninetyprivilege, and the adoption of the "corres- eight thousand nine hundred and ten and five pondence cards,” a self-sustaining postal sys- one hundredths acres were taken under the tem may speedily be looked for, and, at no homestead law, and two million one hundred distant day, a further reduction of the rate of and fifty-nine thousand five hundred and fifteen postage be attained.

and eighty-one one hundredths acres sold for Always favoring practical reforms, I re- cash. The remainder was located with military spectfully' call your attention to one abuse of warrants, college or Indian scrip, or applied long standing which I would like to see in satisfaction of grants to railroads, or for remedied by this Congress. It is a reform in other public uses. The entries under the homethe civil service of the country. I would have stead law during the last year covered nine it go beyond the mere fixing of the tenure of hundred and sixty-one thousand five hundred

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and forty-five acres more than those during the thousand five hundred and twenty-three acres preceding year. Surveys have been vigorously is still due under grants for like uses. prosecuted to the full extent of the means ap- The policy of thus aiding the States in buildplicable to the purpose. The quantity of land ing works of internal improvement was inauin market will amply supply the present de- gurated more than forty years since in the mand. The claim of the settler, under the grants to Indiana and Illinois, to aid those homestead or the preëmption laws, is not, how. States in opening canals to connect the waters ever, limited to lands subject to sale at private of the Wabash with those of Lake Erie, and the entry. Any unappropriated surveyed public waters of the Illinois with those of Lake Michland may, to a limited amount, be acquired igan. It was followed, with some modificaunder the former laws if the party entitled to tions, in the grant to Illinois of alternate secenter under them will comply with the require- tions of public lands within certain limits of ments they prescribe in regard to the residence the Illinois Central railway. Fourteen States and cultivation.

and sundry corporations have received similar The actual settler's preference right of pur- subsidies in connection with railways comchase is even broader, and extends to lands pleted or in process of construction. As the which were unsurveyed at the time of his reserved sections are rated at the double minisettlement. His right was formerly confined mum, the sale of them at the enhanced price within much narrower limits, and at one has thus in many instances indemnified the period of our history was conferred only by Treasury for the granted lands.

The con special statutes. They were enacted from time struction of some of these thoroughfares has to time to legalize what was then regarded as undoubtedly given a vigorous impulse to the an unauthorized intrusion upon the national development of our resources and the settledomain. The opinion that the public landsment of the more distant portions of the counshould be regarded chiefly as a source of try. It may, however, be well insisted that much revenue is no longer maintained. The rapid of our legislation in this regard has been characsettlement and successful cultivation of them terized by indiscriminate and profuse liberality. are now justly considered of more importance The United States should not loan their credit to our well-being than is the fund which the in aid of any enterprise undertaken by States or sale of them would produce. The remarkable corporations, por grant lands in any instance, growth and prosperity of our new States and unless the projected work is of acknowledged Territories attest the wisdom of the legislation national importance. I am strongly inclined which invites the tiller of the soil to secure a to the opinion that it is inexpedient and unnepermanent home on terms within the reach of cessary to bestow subsidies of either descripall. The pioneer who incurs the dangers and tion; but should Congress determine other. privations of a frontier life, and thus aids in wise, I earnestly recommend that the rights of laying the foundation of new commonwealths, settlers and of the public be more effectually renders a signal service to his country, and is secured and protected by appropriate legislaentitled to its special favor and protection. tion. These laws secure that object and largely During the last fiscal year the sum paid to promote the general welfare. They should, pensioners, including the cost of disbursetherefore, be cherished as a permanent feature ment, was $27,780,811 11, and one thousand of our land system.

seven hundred and fifty-eight bounty-land Good faith requires us to give full effect to warrants were issued. At its 'close one hunexisting grants. The time-honored and benefi- dred and ninety-eight thousand six hundred cent policy of setting apart certain sections of and eighty-six names were on the pension. public land for educational purposes in the rolls. new States should be continued. When ample In conclusion, I would sum up the policy of provision shall have been made for these the Administration to be a thorough enforceobjects I submit as a question worthy of seri- ment of every law; a faithful collection of ous consideration whether the residue of our every tax provided for; economy in the disnational domain should not be wholly disposed bursement of the same; a prompt payment of under the provisions of the homestead and of every debt of the nation; a reduction of preëmption laws.

taxes as rapidly as the requirements of the In addition to the swamp and overflowed country will admit; reductions of taxation lands granted to the States in which they are and tariff, to be so arranged as to afford the situated, the lands taken under the agricultural greatest relief to the greatest number; honest college acts, and for internal improvement and fair dealings with all other peoples, to the purposes, under the act of September, 1841, end that war, with all its blighting conse. and the acts supplemental thereto, there had quences, may be avoided, but without surbeen conveyed up to the close of the last fiscal rendering any right or obligation due to us; year, by patent or other equivalent title, to a reform in the treatment of Indians, and in States and corporations twenty-seven million the whole civil service of the country; and, eight hundred and thirty-six thousand two finally, in securing a pure, untrammeled bal. bundred and fifty-seven and sixty-three one lot, where every man entitled to cast a vote hundredths acres for railways, canals, and may do so, just once, at each election, without wagon-roads. It is estimated that an addi- fear of molestation or proscription on account tional quantity of one hundred and seventy of his political faith, nativity, or color. four million seven hundred and thirty-fivel,

U. S. GRANT.

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President Grant's Third Annual Message. been pleased to comply with the joint request

of the two Governments, and has consented to December 4, 1871.

act as the arbitrator of the disputed water To the Senate and House of Representatives : boundary between the United States and Great

Britain. In addressing my third annual message to

The contracting parties in the treaty have the law-making branch of the Government, it undertaken to regard as between themselves is gratifying to be able to state that during the certain principles of public law, for which the past year success has generally attended the United States have contended from the comeffort to execute all laws found upon the statute.

mencement of their history. They have also books. The policy has been, not to inquire agreed to bring those principles to the knowlinto the wisdom of laws already enacted, but to learn their spirit and intent, and to enforce edge of the other maritime Powers and to in

vite them to accede to them. Negotiations are them accordingly. The past year has, under a wise Providence, the invitation is to be extended to the other

going on as to the form of the note by which been one of general prosperity to the nation. Powers. It has, however, been attended with more I recommend the legislation necessary on than usual chastisements in the loss of life the part of the United States to bring into and property by storm and

fire. These dis operation the articles of the treaty relating to asters have served to call forth the best ele; the fisheries, and to the other matters touch, ments of human nature in our country, and ing the relations of the United States toward to develop a friendship for us on the part the British North American possessions, to of foreign nations which goes far toward become operative so soon as the proper legis. alleviating the distresses occasioned by these lation shall be had on the part of Great Britain calamities. The benevolent, who have so gen- and its possessions. It is much to be desired erously shared their means with the victims that this legislation may become operative of these misfortunes, will reap their reward before the fishermen of the United States in the consciousness of having performed a begin to make their arrangements for the noble act, and in receiving the grateful thanks coming season. of men, women, and children whose sufferings

I have addressed a communication, of they have relieved. The relations of the United States with for. Governors of New York, Pennsylvania, Ohio,

which a copy is transmitted herewith, to the eign Powers continue to be friendly. The

Indiana, Michigan, Illinois, and Wisconsin, year has been an eventful one in witnessing urging upon the governments of those States, two great nations, speaking one language and

respectively, the necessary action on their part having one lineage, settling, by peaceful arbi- to carry into effect the object of the article tration, disputes of long, standing, and liable of the treaty which contemplates the use of at any time to bring those nations into bloody the canals, on either side, connected with the and costly conflict. An example has thus navigation of the lakes and rivers forming the been set which, if successful in its final issue, boundary, on terms of equality by the inhabitmay be followed by other civilized nations, ants of both countries. It is hoped that the and finally be the means of returning to pro importance of the object and the benefits to ductive industry millions of men now main.. Aow therefrom will secure the speedy approval tained to settle the disputes of nations by the and legislative sanction of the States conbayonet and the broadside.

cerned. I transmit herewith a copy of the treaty I have been officially informed of the analluded to, which has been concluded, since nexation of the States of the Church to the the adjournment of Congress, with her Bri- kingdom of Italy, and the removal of the tannic Majesty, and a copy of the protocols capital of that kingdom to Rome. In conof the conferences of the commissioners by formity with the established policy of the whom it was negotiated. This treaty provides United States, I have recognized this change. methods for adjusting the questions pending between the two nations.

The intimate friendly relations which have Various questions are to be adjusted by ar- so long existed between the United States and bitration. I recommend Congress at an early Russia continue undisturbed. The visit of the day to make the necessary provision for the third son of the Emperor is a proof that there tribunal at Geneva, and for the several com is no desire on the part of his Government to missioners, on the part of the United States, diminish the cordiality of those relations. called for by the treaty.

The hospitable reception which has been given His Majesty the King of Italy, the President to the Grand Duke is a proof that on our side of the Swiss Confederation, and his Majesty we share the wishes of that Government. The the Emperor of Brazil' have each consented, inexcusable course of the Russian minister at on the joint request of the two Powers, to Washington rendered it necessary to ask bis name an arbitrator for the tribunal at Geneva. recall, and to decline to longer receive that I have caused my thanks to be suitably ex- functionary as a diplomatic representative. It pressed for the readiness with which the joint was impossible with self-respect, or with a request has been complied with, by the ap- just regard to the dignity of the country, to pointment of gentlemen of eminence and learn- permit Mr. Catacazy to continue to hold inter: ing to these important positions.

course with this Government after his personal His Majesty the Emperor of Germany has | abuse of Government officials, and during his

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persistentinterference, through various means, lives and property of bona fide American citiwith the relations between the United States zens, and to maintain the dignity of the flag. and other Powers. In accordance with my It is hoped that all pending questions with wishes, this Government has been relieved of Spain growing out of the affairs in Cuba may further intercourse with Mr. Catacazy, and the be adjusted in the spirit of peace and concilimanagement of the affairs of the imperial ation which has hitherto guided the two legation has passed into the hands of a gen. Powers in their treatment of such questions. tleman entirely unobjectionable.

To give importance and to add to the effiThe republic of Mexico has not yet repealed ciency of our diplomatic relations with Japan the very objectionable laws establishing what and China, and to further aid in retaining the is known as the “Free Zone," on the frontier good opinion of those peoples, and to secure of the United States. It is hoped that this may to the United States its share of the commerce yet be done, and also that more stringent meas- destined to flow between those nations and the ures may be taken by that republic for restrain-balance of the commercial world, I earnestly ing lawless persons on its frontiers. I hope that recommend that an appropriation be made to Mexico, by its own action, will soon relieve support at least four American youths in each this Government of the difficulties experienced of those countries, to serve as a part of the from these causes. Our relations with the official family of our ministers there. Our various republics of Central and South Amer representatives would not even then be placed ica continue, with one exception, to be cordial upon an eqnality, with representatives of and friendly

Great Britain and of some other Powers. As It is a subject for congratulation that the now situated, our representatives in Japan and great empire of Brazil has taken the initiatory China have to depend, for interpreters and step toward the abolition of slavery. Our rela- translators, upon 'natives of those countries tions with that empire, always cordial, will who know our language imperfectly, or pronaturally be made more so by this act. It is cure for the occasion the services of employés not too much to hope that the Government of in foreign business houses, or the interpreters Brazil may hereafter find it for its interest as to other foreign ministers. well as intrinsically right to advance toward I would also recommend liberal measures for entire emancipation more rapidly than the the purpose of supporting the American lines of present act contemplates.

steamers now plying between San Francisco The true prosperity and greatness of a nation and Japan and China, and the Australian is to be found in the elevation and education line-almost our only remaining lines of ocean of its laborers.

steamers—and of increasing their services. It is a subject for regret that the reforms in The national debt has been reduced to the this direction, which were voluntarily prom- extent of $86,057,126 80 during the year, and ised by the statesmen of Spain, have not been by the negotiation of national bonds at a lower carried out in its West India colonies. The rate of interest, the interest on the public debt laws and regulations for the apparent abolition has been so far diminished that now the sum of slavery in Cuba and Porto Rico leave most to be raised for the interest account is nearly of the laborers in bondage, with no hope of seventeen million dollars less than on the 1st release until their lives become a burden to of March, 1869. It was highly desirable that their employers.

this rapid diminution should take place, both I desire to direct your attention to the to strengthen the credit of the country and to fact that citizens of the United States, or per- convince its citizens of their entire ability to sons claiming to be citizens of the United meet every dollar of liability without bankruptStates, are large holders, in foreign lands, of ing them. But in view of the accomplishment this species of property, forbidden by the of these desirable ends; of the rapid developfundamental law of their alleged country. I ment of the resources of the country; its in. recommend to Congress to provide, by strin creasing ability to meet large demands, and gent legislation, a suitable remedy against the the amount already paid, it is not desirable holding, owniug, or dealing in slaves, or being that the present resources of the country interested in slave property in foreign lands. should continue to be taxed in order to coneither as owners, hirers, or mortgagers, by tinue this rapid payment. I therefore recomcitizens of the United States.

mend a modification of both the tariff and It is to be regretted that the disturbed con- internal tax laws. I recommend that all taxes dition of the Island of Cuba continues to be from internal sources be abolished, except a source of annoyance and of anxiety. The those collected from spiritous, vinous, and existence of a protracted struggle in such malt liquors, tobacco in its various forms, and close proximity to our own territory, without from stamps. apparent prospect of an early termination, can- In readjusting the tariff I suggest that a not be other than an object of concern to a careful estimate be made of the amount of people who, while abstaining from interfer- surplus revenue collected under the present ence in the affairs of other Powers, naturally laws, after providing for the current expenses desire to see every country in the undisturbed of the Government, the interest account, and enjoyment of peace, liberty, and the blessings a sinking fund, and that this surplus be of free institutions.

reduced in such a manner as to afford the Our naval commanders in Cuban waters greatest relief to the greatest number. There have been instructed, in case it should become are many articles not produced at home, but necessary, to spare no effort to protect the which enter largely into general consumption through articles which are manufactured atmunity of interest, are always benefited by a home, such as medicines compounded, &c., rapid intercommunication. Education, the from which very little revenue is derived, but groundwork of republican institutions, is enwhich enter into general use. All such arti- couraged by increasing the facilities to gather cles I recommend to be placed on the “ free speedy news from all parts of the country. list." Should a further reduction prove advis- The desire to reap the benefit of such improveable, I would then recommend that it be made ments will stimulate education. I refer you upon those articles which can best bear it to the report of the Postmaster General for without disturbing home production or re- full details of the operations of last year, and ducing the wages of American labor.

for comparative statements of results with I have not entered into figures, because to former years. do so would be to repeat wbat will be laid be- There has been imposed upon the executive fore you in the report of the Secretary of the branch of the Government the execution of Treasury. The present laws for collecting the act of Congress approved April 20, 1871, revenue pay collectors of customs small sala- and commonly known as the Ku Klux law, in ries, but provide for moieties (shares in all a portion of the State of South Carolina. l'he seizures) which, at principal ports of entry necessity of the course pursued will be demonparticularly, raise the compensation of those strated by the report of the Committee to officials to a large sum. It has always seemed Investigate Southern Outrages. Under the to me as if this system must, at times, work provisions of the above act I issued a proclaperniciously. It holds out an inducement to mation calling the attention of the people of dishonest men, should such get possession of the United States to the same, and declaring those offices, to be lax in their scrutiny of my reluctance to exercise any of the extraorgoods entered to enable them finally to make dinary powers thereby conferred upon me, large seizures. Your attention is respectfully except in case of imperative necessity, but invited to this subject.

making known my purpose to exercise such Continued fluctuations in the value of gold, powers whenever it should become necessary as compared with the national currency, has a to do so for the purpose of securing to all citimost damaging effect upon the increase and zens of the United States the peaceful enjoydevelopment of the country in keeping up ment of the rights guarantied to them by the prices of all articles necessary in every day Constitution and the laws. life. It fosters a spirit of gambling prejudicial After the passage of this law, information alike to national morals and the national was received from time to time that combinafinances. If the question can be met as to tions of the character referred to in this law how to give a fixed value to our currency, that existed, and were powerful in many parts of value constantly and uniformly approaching the southern States, particularly in certain par with specie, a very desirable object will be counties in the State of South Carolina,

Careful investigation was made, and it was The enlarged receipts of the Post Office ascertained that, in nine counties of that Department, as shown by the accompanying State, such combinatons were active and powreport of the Postmaster General, exhibits a erful, embracing a sufficient portion of the gratifying increase in that branch of the pub- citizens to control the local authority, and lic service. It is the index of the growth of having, among other things, the object of education and of the prosperity of the people, depriving the emancipated class of the subtwo elements highly conducive to the vigor stantial benefits of freedom, and of preventing and stability of republics. With a vast terri- the free political action of those citizens who tory like ours, much of it sparsely populated, did not sympathize with their own views. but all requiring the services of the mail, it is Among their operations were frequent scourgnot at present to be expected that this De.ings and occasional assassinations, generally partment can be made self-sustaining. But a perpetrated at night by disguised persons, the gradual approach to this end from year to victims in almost all cases being citizens of year is confidently relied on, and the day is not different political sentiments from their own, far distant when the Post Office Department of or freed persons who had shown a disposition the Government will prove a much greater to claim equal rights with other citizens. blessing to the whole people than it is now. Thousands of inoffensive and well-disposed

The suggestions of the Postmaster General citizens were the sufferers by this lawless viofor improvements in the Department presided lence. over by him are earnestly recommended Thereupon, on the 12th of October, 1871, a your special attention. Especially do I rec. proclamation was issued, in terms of the law, ommend favorable consideration of the plan calling upon the members of those combinafor uniting the telegraphic system of the United tions to disperse within five days, and to States with the postal system. It is believed deliver to the marshal or military officers of that by such a course the cost of telegraphing the United States all arms, ammunition, unicould be much reduced, and the service as forms, disguises, and other means and implewell, if not better, rendered. It would secure ments used by them for carrying out their the further advantage of extending the tele- unlawful purposes. gruph through portions of the country where This warning not having been heeded, on the private enterprise will not construct it. Com- 17th of October another proclamation was merce, trade, and, above all, the efforts to issued, suspending the privileges of the writ bring a people widely separated into a com- of habeas corpus in nine counties in that State.

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