PUBLIC DOCUMENTS. 



633 



China and Japan IB about all tho carrying-trade now 

 i-.-n.hii'tutl in American vessels. I would recommend 

 u lilx-ral policy toward that line of American steam- 

 era, one taut will insure its success and oven increased 



The cost of building iron vessels, the only ones 

 that can compete with foreign ships m the carrying- 

 trade, is so much greater in the United States than 

 in foreign countries that, without some assistance 

 from tin- Government, they cannot be successfully 

 1'uilt hero. There wiH be several propositions laid 

 before Congress, in the course of the present session, 

 looking to a remedy for this evil. Even if it should 

 be at some cost to the national Treasury, I hope such 

 encouragement will bo given as will secure American 

 ship pin,' on the high-seas and American ship-building 

 at home. 



The condition of the archives at the Department of 

 State calls for the early action of Congress. The build- 

 ing now rented by that Department is a frail struct- 

 ure, at an inconvenient distance from the Executive 

 Mansion, and from the other Departments, is ill- 

 adapted to tho purpose for which it is used, has not 

 capacity to accommodate tho archives, and is not fire- 

 proof. Its remote situation, its slender construction, 

 und the absence of a supply of water in the neighbor- 

 hood, leave but little hope of safety for either the 

 building or its contents in case of the accident of a 

 fire. Its destruction would involve the loss of the 

 rolls containing tho original acts and resolutions of 

 Congress, of the historic records of the Revolution 

 and of the Confederation, of the whole series of diplo- 

 matic and consular archives since the adoption of 

 the Constitution, and of the many other valuable 

 records and papers left with that Department when 

 it was the principal depository of the governmental 

 archives. I recommend an appropriation for the con- 

 struction of a building for the Department of State. 



I recommend to your .consideration the propriety 

 of transferring to the Department of the Intenor, to 

 which they seem more appropriately to belong, all 

 powers and duties in relation to the Territories with 

 which tho Department of State is now charged by 

 law or usage, and from the Interior Department to 

 the War Department the Pension Bureau, so far as 

 it regulates tho payment of soldiers' pensions. I 

 would further recommend that the payment of naval 

 pensions be transferred to one of the bureaus of the 

 Navy Department. 



The estimates for the expenses of the Government 

 for the next fiscal year are $18.244,346.01 less than 

 for the current one, but exceed tne appropriations for 

 the present year, for^ the same items, $8,972,127.56. 

 In this estimate, however, is included $22,888,278.87 

 for public works heretofore begun under congres- 

 sional provision, and of which only so much is asked 

 as Congress may choose to give. The appropriations 

 for the same works for the present fiscal year was 

 $11,984,518.08. 



The average value of gold, as compared with na- 

 tional currency for the whole of the year 1869, was 

 about 134, and for eleven months of "1870 the same 

 relative value has been about 115. The approach 

 to a specie basis is very gratifying, but the fact 

 cannot be denied that the instability of the value of 

 our currency is prejudicial to our prosperity, and 

 tends to keep up prices, to the detriment of trade. 

 The evils of a depreciated and fluctuating currency 

 are so great, that now, when the premium on gold 

 has fallen so much, it would seem that the time has 

 arrived when, by wise and prudent legislation, Con- 

 gress should look to a policy which would place our 

 currency at par with gold at no distant day. 



The tax collected from the people has been re- 

 duced more than $80,000,000 per annum. By steadi- 

 ness in our present course, there is no reason why, 

 in a few short years, tho national tax-gatherer may 

 not disappear from the door of the citizen almost 

 entirely. With the revenue stamp dispensed by 

 postmasters in every community, a tax upon liquors 



of all sorts and tobacco in all its form*, and by a wise 

 adjustment of the tariff, which will put a duty only 

 upon those articles which we could dispense with, 

 known as luxuries, and on those which we use more 

 of than we produce, revenue enough may be raised, 

 after a few yean of peace and consequent reduction 

 of indebtedness, to fulfil all our obligations. 



A further reduction of expenses, in addition to a 

 reduction of interest account, may be relied on to 

 make this practicable. Revenue reform, if it means 

 this, has my hearty support. If it implies a collection 

 of all the revenue for the support of Government, for 

 the payment of principal and interest of the public 

 debt, pensions, etc., by directly taxing the people, 

 then I am against revenue reform, and confidently 

 believe the people are with me. 



If it means failure to provide tho necessary means 

 to defray all the expenses of Government, and there- 

 by repudiation of the public debt and pensions, then 

 I am still more opposed to such kind of revenue re- 

 form. Revenue reform has not been defined by any 

 of its advocates, to my knowledge, but seems to be 

 accepted as something which is to supply every man's 

 want without any cost or effort on his part. 



A true revenue reform cannot be made in a day, but 

 must be the work of national legislation and of time. 

 As soon as the revenue can be dispensed with, all 

 duty should be removed from coffee, tea, and other 

 articles of universal use not produced by ourselves. 

 The necessities of the country compel us to collect 

 revenue from our imports. An army of assessors and 

 collectors is not a pleasant sight to the citizen, but 

 that or a tarift' for revenue is necessary. Such a tariff, 

 so far as it acts as an encouragement to home pro- 

 duction, affords employment to labor at living wages, 

 in contrast to the pauper labor of the Old World, ana 

 also in the development of home resources. 



Under the act ol Congress of the 15th day of July, 

 1870, the army 1ms gradually been reduced, so that, 

 on the 1st day of January, 1871, the number of com- 

 missioned olhcers and men will not exceed the num- 

 ber contemplated by that law. 



The War Department building is an old structure, 

 not fireproof, and entirely inadequate in dimensions 

 to our present wants. Many thousands of dollars are 

 now paid annually for rent of private buildings to ac- 

 commodate the various bureaus of the Department. 

 I recommend an appropriation for a new War Depart- 

 ment building, suited to the present and growing 

 wants of the nation. 



The report of the Secretary of War shows a very 

 satisfactory reduction in the expenses of the army for 

 the last fiscal year. For details you are referred to 

 his accompanying report. 



The expenses of the navy for the whole of the last 

 year, i. e., from December 1, 1869, tho date of the 

 last report, are less than $19,000,000, or about $1,000,- 



000 less than they were the previous year. The ex- 

 penses since the commencement of this fiscal year, 

 i. e., since July 1st, show for five months a decrease 

 of over $2.400,000 from those of the corresponding 

 months of lost year. The estimates for the current 

 year were $28.205,671.37. Those for next year are 

 $20,683,317, with $955,100 additional for necessary 

 permanent improvements. These estimates are made 

 closely, for the mere maintenance of the naval es- 

 tablishment as it now is, without much in the nature 

 of permanent improvement. The appropriations 

 made for the lost and current years were evidently in- 

 tended by Congress, and are sufficient only, to keep 

 the navy on its present footing by the repairing and 

 refitting of our old ships. 



This policy must, or course, gradually but surely 

 destroy the navy, and it is in itself far from econom- 

 ical, as each year that it is pursued the necessity for 

 mere repairs in ships and navy-yards becomes more 

 imperative and more costly ; and our current expenses 

 are annually increased for the mere repair of 'ships, 

 many of which must soon become unsate and useless. 



1 hope, during the present session of Congress, to be 



