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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. 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 duty 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 years were evidently intended by Congress, and are sufficient only, to keep the Navy on its present footing by the repairing and refitting of our old ships.

found to work most advantageously. All agencies and superintendencies not so disposed of were given to officers of the Army. The act of Congress reducing the Army renders 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 selected many of which must soon become unsafe and are allowed to name their own agents, subject useless. 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. 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 from the nations of the eastern continent, our Navy is our only means of direct protection to our citizens abroad, or for the enforcement of any foreign policy.

cost.

The accompanying report of the Postmaster General shows a most satisfactory working of that Department. With the adoption of the recommendations contained therein, particularly those relating to a reform in the franking privilege, and the adoption of the "correspondence cards," a self-sustaining postal system may speedily be looked for, and, at no distant day, a further reduction of the rate of postage be attained.

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Always favoring practical reforms, I respectfully call your attention to one abuse of long standing which I would like to see remedied by this Congress. It is a reform in the civil service of the country. I would have it go beyond the mere fixing of the tenure of

and where they may be visited by the law abiding white man with the same impunity that he now visits the civilized white settlements. I call your special attention to the report of the Commissioner of Indian Affairs for full information on this subject.

During the last fiscal year eight million ninety-five thousand four hundred and thirteen acres of public land were disposed of. Of this quantity three million six hundred and ninetyeight thousand nine hundred and ten and five one hundredths acres were taken under the homestead law, and two million one hundred and fifty-nine thousand five hundred and fifteen and eighty-one one hundredths acres sold for cash. The remainder was located with military warrants, college or Indian scrip, or applied in satisfaction of grants to railroads, or for other public uses. The entries under the homestead law during the last year covered nine hundred and sixty-one thousand five hundred

thousand five hundred and twenty-three acres is still due under grants for like uses.

and forty-five acres more than those during the preceding year. Surveys have been vigorously 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 preemption 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 enter under them will comply with the requirements they prescribe in regard to the residence and cultivation.

tions, in the grant to Illinois of alternate sections of public lands within certain limits of the Illinois Central railway. Fourteen States 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 conspecial 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 lands ment 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 sale of them would produce. The remarkable growth and prosperity of our new States and Territories attest the wisdom of the legislation which invites the tiller of the soil to secure a permanent home on terms within the reach of all. The pioneer who incurs the dangers and privations of a frontier life, and thus aids in laying the foundation of new commonwealths, renders a signal service to his country, and is entitled to its special favor and protection. These laws secure that object and largely promote the general welfare. They should, therefore, be cherished as a permanent feature of our land system.

Good faith requires us to give full effect to existing grants. The time-honored and beneficent policy of setting apart certain sections of public land for educational purposes in the new States should be continued. When ample provision shall have been made for these objects I submit as a question worthy of serious consideration whether the residue of our national domain should not be wholly disposed of under the provisions of the homestead and preemption laws.

In addition to the swamp and overflowed lands granted to the States in which they are situated, the lands taken under the agricultural college acts, and for internal improvement purposes, under the act of September, 1841, and the acts supplemental thereto, there had been conveyed up to the close of the last fiscal year, by patent or other equivalent title, to States and corporations twenty-seven million eight hundred and thirty-six thousand two hundred and fifty-seven and sixty-three one hundredths acres for railways, canals, and wagon-roads. It is estimated that an additional quantity of one hundred and seventy four million seven hundred and thirty-fivel

in aid of any enterprise undertaken by States or corporations, nor grant lands in any instance, unless the projected work is of acknowledged national importance. I am strongly inclined to the opinion that it is inexpedient and unnecessary to bestow subsidies of either description; but should Congress determine otherwise, I earnestly recommend that the rights of settlers and of the public be more effectually secured and protected by appropriate legislation.

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During the last fiscal year the sum paid to pensioners, including the cost of disbursement, was $27,780,811 11, and one thousand seven hundred and fifty-eight bounty-land warrants were issued. At its close one hundred and ninety-eight thousand six hundred and eighty-six names were on the pensionrolls. In conclusion, I would sum up the policy of the Administration to be a thorough enforcement of every law; a faithful collection of every tax provided for; economy in the disbursement of the same; a prompt payment of every debt of the nation; a reduction of taxes as rapidly as the requirements of the country will admit; reductions of taxation and tariff, to be so arranged as to afford the greatest relief to the greatest number; honest and fair dealings with all other peoples, to the end that war, with all its blighting consequences, may be avoided, but without surrendering any right or obligation due to us; a reform in the treatment of Indians, and in the whole civil service of the country; and, finally, in securing a pure, untrammeled ballot, where every man entitled to cast a vote may do so, just once, at each election, without fear of molestation or proscription on account of his political faith, nativity, or color.

U. S. GRANT.

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

December 4, 1871.

To the Senate and House of Representatives: In addressing my third annual message to the law-making branch of the Government, it is gratifying to be able to state that during the past year success has generally attended the effort to execute all laws found upon the statutebooks. The policy has been, not to inquire into the wisdom of laws already enacted, but to learn their spirit and intent, and to enforce them accordingly.

of the two Governments, and has consented to act as the arbitrator of the disputed water boundary between the United States and Great Britain.

The contracting parties in the treaty have undertaken to regard as between themselves certain principles of public law, for which the United States have contended from the commencement of their history. They have also agreed to bring those principles to the knowledge of the other maritime Powers and to invite them to accede to them. Negotiations are the invitation is to be extended to the other going on as to the form of the note by which Powers.

The past year has, under a wise Providence, been one of general prosperity to the nation. 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 touchments 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 legisalleviating 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 they have relieved.

The relations of the United States with for eign Powers continue to be friendly. The year has been an eventful one in witnessing two great nations, speaking one language and having one lineage, settling, by peaceful arbitration, disputes of long standing, and liable at any time to bring those nations into bloody and costly conflict. An example has thus been set which, if successful in its final issue, may be followed by other civilized nations, and finally be the means of returning to productive industry millions of men now maintained to settle the disputes of nations by the bayonet and the broadside.

I transmit herewith a copy of the treaty alluded to, which has been concluded, since the adjournment of Congress, with her Britannic Majesty, and a copy of the protocols of the conferences of the commissioners by whom it was negotiated. This treaty provides methods for adjusting the questions pending between the two nations.

Various questions are to be adjusted by arbitration. I recommend Congress at an early day to make the necessary provision for the tribunal at Geneva, and for the several com missioners, on the part of the United States, called for by the treaty.

I have addressed a communication, of Governors of New York, Pennsylvania, Ohio, which a copy is transmitted herewith, to the Indiana, Michigan, Illinois, and Wisconsin, urging upon the governments of those States, respectively, the necessary action on their part to carry into effect the object of the article of the treaty which contemplates the use of the canals, on either side, connected with the navigation of the lakes and rivers forming the boundary, on terms of equality by the inhabitants of both countries. It is hoped that the importance of the object and the benefits to flow therefrom will secure the speedy approval and legislative sanction of the States con

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The intimate friendly relations which have so long existed between the United States and Russia continue undisturbed. The visit of the third son of the Emperor is a proof that there is no desire on the part of his Government to diminish the cordiality of those relations. 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 his 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 request has been complied with, by the appointment of gentlemen of eminence and learning to these important positions.

His Majesty the Emperor of Germany has

was impossible with self-respect, or with a just regard to the dignity of the country, to permit Mr. Catacazy to continue to hold intercourse with this Government after his personal abuse of Government officials, and during his

It is to be regretted that the disturbed condition of the Island of Cuba continues to be a source of annoyance and of anxiety. The existence of a protracted struggle in such close proximity to our own territory, without 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 at munity 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 former years.

I have not entered into figures, because to do so would be to repeat what will be laid before you in the report of the Secretary of the Treasury. The present laws for collecting revenue pay collectors of customs small salaries, but provide for moieties (shares in all seizures) which, at principal ports of entry particularly, raise the compensation of those officials to a large sum. It has always seemed to me as if this system must, at times, work perniciously. It holds out an inducement to dishonest men, should such get possession of those offices, to be lax in their scrutiny of goods entered to enable them finally to make large seizures. Your attention is respectfully invited to this subject.

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There has been imposed upon the executive branch of the Government the execution of the act of Congress approved April 20, 1871, and commonly known as the Ku Klux law, in a portion of the State of South Carolina. The necessity of the course pursued will be demonstrated by the report of the Committee to Investigate Southern Outrages. Under the provisions of the above act I issued a procla mation calling the attention of the people of the United States to the same, and declaring my reluctance to exercise any of the extraordinary powers thereby conferred upon me, except in case of imperative necessity, but making known my purpose to exercise such powers whenever it should become necessary to do so for the purpose of securing to all citizens of the United States the peaceful enjoyment of the rights guarantied to them by the Constitution and the laws.

After the passage of this law, information was received from time to time that combinations of the character referred to in this law existed, and were powerful in many parts of the southern States, particularly in certain counties in the State of South Carolina.

Continued fluctuations in the value of gold, as compared with the national currency, has a most damaging effect upon the increase and development of the country in keeping up prices of all articles necessary in every-day life. It fosters a spirit of gambling prejudicial alike to national morals and the national finances. If the question can be met as to how to give a fixed value to our currency, that value constantly and uniformly approaching par with specie, a very desirable object will be gained. 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 education and of the prosperity of the people, two elements highly conducive to the vigor and stability of republics. With a vast territory like ours, much of it sparsely populated, but all requiring the services of the mail, it is not at present to be expected that this Department can be made self-sustaining. But a gradual approach to this end from year to year is confidently relied on, and the day is not far distant when the Post Office Department of the Government will prove a much greater blessing to the whole people than it is now.

The suggestions of the Postmaster General for improvements in the Department presided over by him are earnestly recommended to your special attention. Especially do I recommend favorable consideration of the plan for uniting the telegraphic system of the United States with the postal system. It is believed that by such a course the cost of telegraphing could be much reduced, and the service as well, if not better, rendered. It would secure the further advantage of extending the telegraph through portions of the country where private enterprise will not construct it. Commerce, trade, and, above all, the efforts to bring a people widely separated into a com

having, among other things, the object of depriving the emancipated class of the substantial benefits of freedom, and of preventing the free political action of those citizens who did not sympathize with their own views. Among their operations were frequent scourgings and occasional assassinations, generally perpetrated at night by disguised persons, the victims in almost all cases being citizens of different political sentiments from their own, or freed persons who had shown a disposition to claim equal rights with other citizens. Thousands of inoffensive and well-disposed citizens were the sufferers by this lawless violence.

Thereupon, on the 12th of October, 1871, a proclamation was issued, in terms of the law, calling upon the members of those combinations to disperse within five days, and to deliver to the marshal or military officers of the United States all arms, ammunition, uniforms, disguises, and other means and implements used by them for carrying out their unlawful purposes.

This warning not having been heeded, on the 17th of October another proclamation was issued, suspending the privileges of the writ of habeas corpus in nine counties in that State.