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be of great value at all times, and of inestimable | cisco and Honolulu, (Hawaiian Islands,) making value in case of a foreign war. Nature has pro- the total amount of mail steamship subsidies at vided the greater part of this route, and the ob- present $725,000 per annum. stacles to overcome are easily within the skill of the engineer.

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The accompanying report of the Postmaster General furnishes a full and satisfactory exhibit of the operations of the Post Office Department during the year. The ordinary revenues of the department for the fiscal year ending June 30, 1872, amounted to $21,915,426 37, and the expendtures to $26,658,192 31. Compared with the previous fiscal year, the increase of revenue was $1,878,330 05, or 9.37 per cent, and the increase of expenditures $2,268,088 23, or 9 29 per cent. Adding to the ordinary revenues the annual appropriation of $700,000 for free matter, and the amounts paid to the subsidized mail steamship lines from special appropriations, the deficiency paid out of the general Treasury was $3,317,765 94, an excess of $389,707 28 over the deficiency for the year 1871.

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The total length of railroad mail routes on the 30th of June, 1872, was 57,911 miles, 8,077 additional miles of such service having been put into operation during the year. * * * The number of letters exchanged in the mails with foreign countries was 24,362,500, an increase of 4,066,502, or 20 per cent. over the number in 1871; and the postage thereon amounted to $1,871,257 25. The total weight of the mails exchanged with European countries exceeded 820 tons. The cost of the United States transatlantic mail steamship service was $220,301 70. The total cost of the United States ocean steamship service, including the amounts paid to the subsidized lines of mail steamers, was $1,027,020 97.

The following are the only steamship lines now receiving subsidies for mail service under special acts of Congress: The Pacific Mail Steamship Company receive $500,000 per annum for conveying a monthly mail between San Francisco, Japan, and China, which will be increased to $1,000,000 per annum for a semi monthly mail on and after October 1, 1873; the United States and Brazil Mail Steamship Company receive $150,000 per annum for conveying a monthly mail between New York and Rio de Janeiro, Brazil; and the California, Oregon, and Mexico Steamship Company receive $75,000 per annum for conveying a monthly mail between San Fran

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Your favorable consideration is respectfully invited to the recommendations made by the Postmaster General for an increase of service from monthly to semi-monthly trips on the mail steamship route to Brazil; for a subsidy in aid of the establishment of an American line of mail steamers between San Francisco, New Zealand, and Australia; for the establishment of post office savings banks; and for the increase of the salaries of the heads of bureaus. I have heretofore recommended the abolition of the franking privilege, and see no reason now for changing my views on that subject. It not having been favorably regarded by Congress, however, I now suggest a modification of that privilege to correct its glaring and costly abuses. I would recommend also the appointment of a committee or commission to take into consideration the best method (equitable to private corporations who have invested their time and capital in the establishment of telegraph lines) of acquiring the title to all telegraph lines now in operation, and of connecting this service with the postal service of the nation. It is not probable that this subject could receive the proper consideration during the limits of a short session of Congress, but it may be initiated, so that future action may be fair to the Government and to private parties concerneed.

There are but three lines of ocean steamers, namely, the Pacific Mail Steamship Company, between San Francisco, China, and Japan, with provision made for semi-monthly service after October 1, 1873; the United States and Brazil line, monthly; and the California, New Zealand, and Australian line, monthly, plying between the United States and foreign ports, and owned and operated under our flag. I earnestly recommend that such liberal contracts for carrying the mails be authorized with these lines as will insure their continuance.

If the expediency of extending the aid of Government to lines of steamers which hitherto have not received it should be deemed worthy of the consideration of Congress, political and commercial objects make it advisable to bestow such aid on a line under our flag between Panama and the Western South American ports. By this means much trade now diverted to other countries might be brought to us, to the mutual advantage of this country and those lying in that quarter of the continent of America.

The report of the Secretary of the Treasury will show an alarming falling off in our carrying trade for the last ten or twelve years; and even for the past year. I do not believe that public treasure can be better expended in the interest of the whole people than in trying to recover this trade. An expenditure of $5,000,000 per annum for the next five years, if it would restore to us our proportion of the carrying trade of the world, would be profitably expended.

The price of labor in Europe has so much enhanced within the last few years that the cost of building and operating ocean steamers in the United States is not so much greater than in Europe, and I believe the time has arrived for

Congress to take this subject into serious consid- | Indian, and erecting therein a territorial form of eration. government, is one of great importance as a comDetailed statements of the disbursements plement of the existing Indian policy. The through the Department of Justice will be fur-question of removal to that territory has within nished by the report of the Attorney General, the past year been presented to many of the and though these have been somewhat increased tribes resident upon other and less desirable porby the recent acts of Congress "to enforce the tions of the public domain, and has generally rights of citizens of the United States to vote in been received by them with favor. As a prelimthe several States of the Union," and "to enforce inary step to the organization of such a territory, the provisions of the fourteenth amendment to it will be necessary to confine the Indians now the Constitution of the United States," and the resident therein to farms of proper size, which amendments thereto, I cannot question the ne- should be secured to them in fee; the residue to cessity and salutary effect of those enactments. be used for the settlement of other friendly InReckless and lawless men, I regret to say, have dians. Efforts will be made in the immediate associated themselves together, in some localities, future to induce the removal of as many peaceto deprive other citizens of those rights guaran- ably disposed Indians to the Indian Territory as teed to them by the Constitution of the United can be settled properly, without disturbing the States, and to that end have committed deeds of harmony of those already there. There is no blood and violence; but the prosecution and pun- other location now available, where a people ishment of many of these persons have tended who are endeavoring to acquire a knowledge of greatly to the repression of such disorders. I do pastoral and agricultural pursuits can be as well not doubt that a great majority of the people in accommodated as upon the unoccupied lands in all parts of the country favor the full enjoyment the Indian Territory. A territorial government by all classes of persons of those rights to which should, however, protect the Indians from the they are entitled under the Constitution and inroads of whites for a term of years, until they laws; and I invoke the aid and influence of all become sufficiently advanced in the arts and good citizens to prevent organizations whose ob- civilization to guard their own rights, and from jects are by unlawful means to interfere with the disposal of the lands held by them for the those rights. I look with confidence to the time, same period. not far distant, when the obvious advantages of good order and peace will induce an abandonment of all combinations prohibited by the acts referred to, and when it will be unnecessary to carry on prosecutions or inflict punishment to protect citizens from the lawless doings of such combinations.

Applications have been made to me to pardon persons convicted of a violation of said acts, upon the ground that clemency in such cases would tend to tranquilize the public mind, and to test the virtue of that policy I am disposed, as far as my sense of justice will permit, to give to these applications a favorable consideration; but any action thereon is not to be construed as indicating any change in my determination to enforce with rigor such acts so long as the conspiracies and combinations therein named disturb the peace of the country.

It is much to be regretted, and is regretted by no one more than myself, that a necessity has ever existed to execute the "enforcement act." No one can desire more than I that the necessity of applying it may never again be demanded.

The policy which was adopted at the beginning of this administration with regard to the management of the Indians has been as successful as its most ardent friends anticipated within so short a time. It has reduced the expenses of their management; decreased their forays upon the white settlements; tended to give the largest opportunity for the extension of the great railways through the public domain, and the pushing of settlements into more remote districts of the country; and at the same time improved the condition of the Indians. The policy will be maintained without any change excepting such as further experience may show to be necessary

to render it more efficient.

The subject of converting the so-called Indian Territory south of Kansas into a home for the

During the last fiscal year there were disposed of, out of the public lands 11,864,975 acres, a quantity greater by 1,099,270 acres than was disposed of the previous year. Of this amount 1,370,320 acres were sold for cash; 389,460 acres located with military warrants; 4,671,332 acres taken for homesteads; 693,613 acres located with college scrip; 3,554,887 acres granted to railroads; 465,347 acres granted to wagon-roads; 714,255 acres given to States as swamp land; 5,760 acres located by Indian scrip. The cash receipts from all sources in the Land Office amounted to $3,218,100. During the same period 22,016,608 acres of the public lands were surveyed, which, added to the quantity before surveyed, amounts to 583,364,780 acres, leaving 1,257,633,628 acres of the public lands still unsurveyed.

The reports from the subordinates of the Land Office contain interesting information in regard to their respective districts. They uniformly mention the fruitfulness of the soil during the past season, and the increased yields of all kinds of produce. Even in those States and Territories where mining is the principal business, agricultural products have exceeded the local demand, and liberal shipments have been made to distant points.

During the year ending September 30, 1872, there were issued from the Patent Office 13,626 patents; 233 extensions; and 556 certificates and registries of trade-marks. During the same time 19,587 applications for patents, including reissues and designs, have been received, and 3,100 caveats filed. The fees received during the same period amounted to $700,954 86, and the total expenditures to $623,553 90, making the net receipts over the expenditures $77,400 96.

Since 1836, 200,000 applications for patents have been filed, and about 133,000 patents issued.

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The amount paid for pensions in the last fiscal imously approved by the leading friends of edyear was $30,169,340, an amount larger by $3,-ucation, that I commend it to the favorable 708,434 than was paid during the preceding year. attention of Congress. Of this amount $2,313,409 were paid under the act of Congress of February 17, 1871, to survivors of the war of 1812. The annual increase of pensions by the legislation of Congress has more than kept pace with the natural yearly losses from the rolls. The act of Congress of June 8, 1872, has added an estimated amount of $750,000 per annum to the rolls, without increasing the number of pensioners. We cannot, therefore, look for any substantial decrease in the expenditures of this department for some time to come, or so long as Congress continues to so change the rates of pension.

The whole number of soldiers enlisted in the war of the rebellion was 2,688,523. The total number of claims for invalid pensions is 176,000, being but six per cent. of the whole number of enlisted men. The total number of claims on hand at the beginning of the year was 91,689; the number received during the year was 26,574; the number disposed of was 39,178; making a net gain of 12,604. The number of claims now on file is 79,085.

It has seemed to be the policy of the Legislature of Utah to evade all responsibility to the Government of the United States, and even to hold a position in hostility to it. I recommend a careful revision of the present laws of the Territory by Congress, and the enactment of such a law (the one proposed in Congress at its last session, for instance, or something similar to it) as will secure peace, the equality of all citizens before the law, and the ultimate extinguishment of polygamy.

Since the establishment of a Territorial government for the District of Columbia, the improvement of the condition of the city of Washington and surroundings, and the increased prosperity of the citizens, is observable to the most casual visitor. The nation, being a large owner of property in the city, should bear, with the citizens of the District, its just share of the expense of these improvements.

I recommend, therefore, an appropriation to reimburse the citizens for the work done by them along and in front of public grounds during the past year; and liberal appropriations in order that the improvement and embellishment of the public buildings and grounds may keep pace with the improvements made by the Territorial authorities. *

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On the 30th of June, 1872, there were on the rolls the names of 95,405 invalid military pensioners, 113,518 widows, orphans, and dependent relatives, making an aggregate of 298,923 army pensioners. At the same time there were on the rolls the names of 1,449 navy pensioners, and 1,730 widows, orphans, and dependent relatives, making the whole number of naval pensioners The Commissioner makes one recommendation 3,179. There have been received, since the pas--that measures be taken by Congress to protect sage of the act to provide pensions for the sur- and induce the planting of forests, and suggests vivors of the war of 1812, 36,551 applications, that no part of the public lands should be disprior to June 30, 1872. Of these there were al-posed of without the condition that one-tenth lowed, during the last fiscal year, 20,126 claims; of it should be reserved in timber where it exists, 4,845 were rejected during the year, leaving and, where it does not exist, inducements should 11,580 claims pending at that date. The num- be offered for planting it. ber of pensions of all classes granted during the last fiscal year was 33,838. During that period there were dropped from the rolls, for various causes, 9,104 names, leaving a grand total of 232,229 pensioners on the rolls on the 30th of June, 1872.

It is thought that the claims for pensions on account of the war of 1812 will all be disposed of by the 1st of May, 1873. It is estimated that $30,480,000 will be required for the pension service during the next fiscal year.

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In accordance with the terms of the act of Congress, approved March 3, 1871, providing for the celebration of the one hundredth anniversary of American independence, a commission has been organized, consisting of two members from each of the States and Territories. commission has held two sessions, and has made satisfactory progress in the organization and in the initiatory steps necessary for carrying out the provisions of the act, and for executing also the provisions of the act of June 1, 1872, creating a centennial board of finance. A prelimiThe rapidly increasing interest in education nary report of progress has been received from is a most encouraging feature in the current his- the president of the commission, and is herewith tory of the country, and it is, no doubt, true transmitted. It will be the duty of the commisthat this is due in a great measure to the efforts sion at your coming session to transmit a full of the Bureau of Education. That office is con- report of the progress made, and to lay before tinually receiving evidences, which abundantly you the details relating to the exhibition of prove its efficiency, from the various institutions American and foreign arts, products, and manof learning, and educators of all kinds through-ufactures, which, by the terms of the act, is to out the country. be held under the auspices of the Government of the United States, in the city of Philadelphia, in the year 1876.

The report of the Commissioner contains a vast amount of educational details of great interest. The bill now pending before Congress, providing This celebration will be looked forward to by for the appropriation of the net proceeds of the American citizens with great interest, as marksales of public lands for educational purposes, to ing a century of greater progress and prosperity aid the States in the general education of their than is recorded in the history of any other rising generation, is a measure of such great nation, and as serving a further good purpose in importance to our real progress, and is so unan-bringing together, on our soil, peoples of all the

commercial nations of the earth, in a manner | the public debt of the United States; and the calculated to insure international good feeling.

amount so redeemed was invested in a five per cent. registered bond of the United States for fifteen million five hundred thousand dollars, which is now held by the Secretary of State, subject to the future disposition of Congress.

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An earnest desire has been felt to correct abuses which have grown up in the civil service of the country, through the defective method of making appointments to office. Heretofore Federal offices have been regarded too much as the reward of political services. Under authority By an act approved on the 14th day of Febof Congress, rules have been established to regu-ruary last, Congress made provision for comlate the tenure of office and the mode of appoint-pleting, jointly with an officer or commissioner ments. It cannot be expected that any system to be named by Her Britannic Majesty, the of rules can be entirely effective, and prove a determination of so much of the boundary-line perfect remedy for the existing evils, until they between the territory of the United States and have been thoroughly tested by actual practice, the possessions of Great Britain as was left unand amended according to the requirements of completed by the commissioners appointed under the service. During my term of office, it shall the act of Congress of August 11, 1856. Under be my earnest endeavor to so apply the rules as the provisions of this act the northwest waterto secure the greatest possible reform in the boundary of the United States has been detercivil service of the Government; but it will re- mined and marked in accordance with the award quire the direct action of Congress to render the of the Emperor of Germany. enforcement of the system binding upon my successors, and I hope that the experience of the past year, together with appropriate legislation by Congress, may reach a satisfactory solution of this question, and secure to the public service, for all time, a practical method of obtaining faithful and efficient officers and employees. U. S. GRANT.

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I transmit herewith for the consideration and determination of Congress an application of the republic of Santo Domingo to this Government to exercise a protectorate over that republic.

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I invite the earnest attention of Congress to the existing laws of the United States respecting expatriation and the election of nationality by President Grant's Fifth Annual Mes- individuals. Many citizens of the United States

sage, December 1, 1873.

To the Senate and House of Representatives:

The year that has passed since the submission of my last message to Congress has-especially during the latter part of it-been an eventful one to the country. In the midst of great national prosperity a financial crisis has occurred that has brought low fortunes of gigantic proportions; political partisanship has almost ceased to exist, especially in the agricultural regions; and finally, the capture upon the high seas of a vessel bearing our flag has for a time threatened the most serious consequences, and has agitated the public mind from one end of the country to the other. But this, happily, now is in the course of satisfactory adjustment, honorable to both nations concerned.

The relations of the United States, however, with most of the other powers continue to be friendly and cordial. With France, Germany, Russia, Italy, and the minor European powers; with Brazil and most of the South American republics, and with Japan, nothing has occurred during the year to demand special notice.

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The accompanying papers show that some advance, although slight, has been made during the past year toward the suppression of the infamous Chinese cooly-trade. I recommend Congress to inquire whether additional legislation be not needed on this subject.

The money awarded to the United States by the tribunal of arbitration at Geneva was paid by Her Majesty's government a few days in advance of the time when it would have become payable according to the terms of the treaty. In compliance with the provisions of the act of March 3, 1873, it was at once paid into the Treasury, and used to redeem, so far as it might,

reside
permanently abroad with their families.
Under the provisions of the act approved Feb-
ruary 10, 1855, the children of such persons are
to be deemed and taken to be citizens of the
United States, but the rights of citizenship are
not to descend to persons whose fathers never
resided in the United States.

It thus happens that persons who have never resided within the United States have been enabled to put forward a pretension to the protec tion of the United States against the claim to military service of the Government under whose protection they were born and have been reared. In some cases even naturalized citizens of the United States have returned to the land of their birth, with intent to remain there, and their children, the issue of a marriage contracted there after their return, and who have never been in the United States, have laid claim to our protection, when the lapse of many years had imposed upon them the duty of military service to the only government which had ever known them personally.

Until the year 1868 it was left embarrassed by conflicting opinions of courts and of jurists to determine how far the doctrine of perpetual allegiance derived from our former colonial relations with Great Britain was applicable to American citizens. Congress then wisely swept these doubts away by enacting that "any declaration, instruction, opinion, order, or decision of any officer of this Government which denies, restricts, impairs, or questions the right of expatriation, is inconsistent with the fundamental principles of this Government." But Congress did not indicate in that statute, nor has it since done so, what acts are to be deemed to work expatriation. For my own guidance in determining such questions, I required (under the provisions of the Constitution) the opinion in writing

of the principal officer in each of the executive departments upon certain questions relating to this subject. The result satisfies me that further legislation has become necessary. I therefore commend the subject to the careful consideration of Congress, and I transmit herewith copies of the several opinions of the principal officers of the executive department, together with other correspondence and pertinent information on the same subject.

The United States, who led the way in the overthrow of the feudal doctrine of perpetual allegiance, are among the last to indicate how their own citizens may elect another nationality. The papers submitted herewith indicate what is necessary to place us on a par with other lead ing nations in liberality of legislation on this international question. We have already in our treaties assented to the principles which would need to be embodied in laws intended to accomplish such results. We have agreed that citizens of the United States may cease to be citizens, and may voluntarily render allegiance to other powers. We have agreed that residence in a foreign land, without intent to return, shall of itself work expatriation. We have agreed in some instances upon the length of time necessary for such continued residence to work a presumption of such intent. I invite Congress now to mark out and define when and how expatriation can be accomplished; to regulate by law the condition of American women marrying foreigners; to fix the status of children born in a foreign country of American parents residing more or less permanently abroad, and to make rules for determining such other kindred points as may seem best to Congress.

In compliance with the request of Congress, I transmitted to the American minister at Madrid, with instructions to present it to the Spanish Government, the joint resolution approved on the 3d of March last, tendering to the people of Spain, in the name and on the behalf of the American people, the congratulations of Congress upon the efforts to consolidate in Spain the principles of universal liberty in a republican form of government.

The existence of this new republic was inaugurated by striking the fetters from the slaves in Porto Rico. This beneficent measure was followed by the release of several thousand persons illegally held as slaves in Cuba. Next the captain-general of that colony was deprived of the power to set aside the orders of his superiors at Madrid, which had pertained to the office since 1825. The sequestered estates of American citizens, which had been the cause of long and fruitless correspondence, were ordered to be restored to their owners. All these liberal steps were taken in the face of a violent opposition directed by the reactionary slaveholders of Havana, who are vainly striving to stay the march of ideas which has terminated slavery in Christendom, Cuba only accepted. Unhappily, however, this baneful influence has thus far succeeded in defeating the efforts of all liberalminded men in Spain to abolish slavery in Cuba, and in preventing the promised reform in that island. The struggle for political supremacy continues there.

The pro-slavery and aristocratic party in Cuba is gradually arraigning itself in more and more open hostility and defiance of the home government, while it still maintains a political connection with the republic in the peninsula; and although usurping and defying the authority of the home government, whenever such usurpation or defiance tends in the direction of oppression or of the maintenance of abuses, it is still a power in Madrid, and is recognized by the government. Thus an element more dangerous to continued colonial relations between Cuba and Spain than that which inspired the insurrection at Yara-an element opposed to granting any relief from misrule and abuse, with no aspirations after freedom, commanding no sympathies in generous breasts, aiming to rivet still stronger the shackles of slavery and oppression-has seized many of the emblems of power in Cuba, and, under professions of loyalty to the mother country, is exhausting the resources of the island, and is doing acts which are at variance with those principles of justice, of liberality, and of right, which give nobility of character to a republic. In the interests of humanity, of civilization, and of progress, it is to be hoped that this evil influence may be soon averted.

The steamer Virginius was on the 26th day of September, 1870, duly registered at the port of New York as a part of the commercial marine of the United States. On the 4th of October, 1870, having received the certificate of her register in the usual legal form, she sailed from the port of New York, and has not since been within the territorial jurisdiction of the United States. On the 31st day of October last, while sailing under the flag of the United States, on the high seas, she was forcibly seized by the Spanish gunboat Tornado, and was carried into the port of Santiago de Cuba, where fifty-three of her passengers and crew were inhumanly, and, so far at least as relates to those who were citizens of the United States, without due process of law, put to death.

It is a well-established principle, asserted by the United States from the beginning of their national independence, recognized by Great Britain and other maritime powers, and stated by the Senate in a resolution passed unanimously on the 16th of June, 1858, that "American vessels on the high seas in time of peace, bearing the American flag, remain under the jurisdiction of the country to which they belong; and therefore any visitation, molestation, or detention of such vessel by force, or by the exhibition of force, on the part of a foreign power, is in derogation of the sovereignty of the United States."

In accordance with this principle, the restoration of the Virginius, and the surrender of the survivors of her passengers and crew, and a due reparation to the flag, and the punishment of the authorities who had been guilty of the illegal acts of violence, were demanded. The Spanish Government has recognized the justice of the demand, and has arranged for the immediate delivery of the vessel, and for the surrender of the survivors of the passengers and crew, and for a salute to the flag, and for proceedings looking to the punishment of those

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