CONGRESS. (THE PRESIDENT'S MESSAGE.) 



173 



the Republic of Venezuela, and it is hoped that a sat- 

 sfactorv conclusion will be speedily reached. This 

 Government has not hesitated to express its earnest 

 lesire that the boundary dispute now pending be- 

 iween Great Britain and Venezuela may be adjusted 

 imicably and in strict accordance with the historic 

 ;itle of the parties. 



The advancement of the Empire of Japan has been 

 evidenced by the recent promulgation of a new Con- 

 ^titution, containing valuable guarantees of liberty and 



roviding for a responsible ministry to conduct the 

 government. 



It is earnestly recommended that our judicial rights 

 and processes in Corea be established on a firm basis, 

 jy providing the machinery necessary to carry out 

 reaty stipulations in that regard. 



The friendliness of the Persian Government con- 

 tinues to be shown by its generous treatment of 

 Americans engaged in missionary labors, and by the 

 cordial disposition of the Shah to encourage the en- 

 ;erprise of our citizens in the development of Persian 

 resources. 



A discussion is in progress touching the iurisdic- 

 ional treaty rights of the United States in Turkey. 

 An earnest effort will be made to define those rights 

 to the satisfaction of both governments. 



Questions continue to arise in our relations with sev- 

 jeral countries in respect to the rights of naturalized 

 citizens. Especially is this the case with France, 

 Italy, Russia, and Turkey, and to a less extent with 

 Switzerland. From time to time earnest efforts have 

 been made to regulate this subject by conventions 

 kyith those countries. An improper use of naturaliza- 

 jtion should not be permitted, but it is most impor- 

 Itant that those who have been duly naturalized should 

 (everywhere be accorded recognition of the rights per- 

 taining to the citizenship of the country of their adop- 

 ition. The appropriateness of special conventions for 

 jthat purpose is recognized in treaties which this Gov- 

 jernment has concluded with a number of European 

 states, and it is advisable that the difficulties which 

 ,now arise in our relations with other countries on the 

 'same subject should be similarly adjusted. 



The recent revolution in Brazil in favor of the es- 

 tablishment of a republican form of government is an 

 (event of great interest to the United States. Our 

 minister at Rio de Janeiro was at once instructed to 

 (maintain friendly diplomatic relations with the Pro- 

 jvisional Government, and the Brazilian representa- 

 tives at this capital were instructed by the Provisional 

 'Government to continue their functions. Our friendly 

 (intercourse with Brazil has, therefore, suffered no in- 

 erruption. 



Our minister has been further instructed to extend 

 on the_ part of this Government a formal and cordial 

 ecognition of the new republic so soon as the major- 

 ty of the people of Brazil shall have signified their as- 

 sent to its establishment and maintenance. 



Within our own borders a general condition of pros- 

 perity prevails. The harvests of the last summer were 

 exceptionally abundant, and the trade conditions now 

 prevailing seem to promise a successful season to the 

 nerchant and the manufacturer, and general employ- 

 nent to our working people. 



The report of the^Secretary of the Treasury for the 

 fiscal year ending June 30, 1889, has been prepared, 

 md will be presented to Congress. It presents with 

 Clearness the fiscal operations of the Government, 

 and I avail myself of it to obtain some facts for use 

 :i.-re. 



The aggi 

 vere 



<Yom customs $223,832,741 69 



<>om internal revenue '.'. 130,881,513 92 



< rom miscellaneous sources 82,835,803 23 



The ordinary expenditures for the same period were 



281,996 } 615.60, and the total expenditures, including 



he sinking fund, were $329,579,929.25. The excess 



jf receipts over expenditures was, after providing for 



lie sinking fund, $57,470,129.59. 



e aggregate receipts from all sources for the vear 

 $387,050,058.84, derived as follow : 



For the current fiscal year, the total revenues, act- 

 ual and estimated, are $385,000,000, and the ordi- 

 nary expenditures, actual and estimated, are $293,- 

 000,000, making, with the sinking fund, a total ex- 

 penditure of $341,321,116.99, leaving an estimated 

 surplus of $43,678,883.01. 



During the fiscal year there was applied to the pur- 

 chase of bonds, in addition to those for the sinkin*' 

 fund, $90,456,172.35, and during the first quarter of 

 the current year the sum of $37,838,937.77, all of 

 which were credited to the sinking fund. The reve- 

 nues for the fiscal year ending June 30, 1891, are esti- 

 mated by the Treasury Department at $385,000,000, 

 and the expenditures for the same period, including 

 the sinking fund, at $341,430,477.70. This shows an 

 estimated surplus for that year of $43,569,522.30, which 

 is more likely to be increased than reduced when the 

 actual transactions are written up. 



The existence of so large an actual and anticipated 

 surplus should have the immediate attention of Con- 

 gress, with a view to reducing the receipts of the 

 Treasury to the needs of the Government as closely as 

 may be. The collection of moneys not needed for 

 public uses imposes an unnecessary burden upon our 

 people, and the presence of so large a surplus in the 

 public vaults is a disturbing element in the conduct of 

 private business. It has called into use expedients 

 for putting it into circulation of very questionable pro- 

 priety. We should not collect revenue for the pur- 

 pose of anticipating our bonds beyond the require- 

 ments of the sinking fund, but any unappropriated 

 surplus in the Treasury should be so used, as there is 

 no other lawful way of returning the money to circu- 

 lation, and the profit realized by the Government of- 

 fers a substantial advantage. 



The loaning of public funds to the banks without 

 interest, upon the security of Government bonds, I re- 

 gard as an unauthorized and dangerous expedient. It 

 results in a temporary and unnatural increase of the 

 banking capital of favored localities and compels a 

 cautious and gradual recall of the deposits to avoid in- 

 jury to the commercial interests. It is not to be ex- 

 pected that the banks having these deposits will sell 

 their bonds to the Treasury so long as the present 

 highly beneficial arrangement is continued. They 

 now practically get interest both upon the bonds and 

 their proceeds. _ No further use should be made of this 

 method of getting the surplus into circulation, and the 

 deposits now outstanding should be gradually with- 

 drawn and applied to the purchase of bonds. It is for- 

 tunate that such a use can be made of the existing 

 surplus, and for some time to come of any casual sur- 

 plus that may exist after Congress has taken the ne- 

 cessary steps for a reduction of the revenue. Such 

 legislation should be promptly, but very considerately, 

 enacted. 



I recommend a revision of our tariff law, both in its 

 administrative features and in the schedules. The 

 need of the former is generally conceded, and an 

 agreement upon the evils and inconveniences to be 

 remedied and the best methods for their correction 

 will probably not be difficult. Uniformity of valua- 

 tion at all our ports is essential, and effective 

 measures should be taken to secure it. It is equally 

 desirable that questions affecting rates and classifica- 

 tions should be promptly decided. 



The preparation of a new schedule of customs 

 duties is a matter of great delicacy because of its di- 

 rect effect upon the business of the country, and of 

 great difficulty by reason of the wide divergence of 

 opinion as to the objects that may properly be pro- 

 moted by such legislation. Some disturbance of busi- 

 ness may perhaps result from the consideration of 

 this subject by Congress, but this temporary ill ef- 

 fect will be reduced to the minimum by prompt action 

 and by the assurance which the country already en- . 

 joys that any necessary changes will be so made as 

 not to impair the just and reasonable protection of 

 our home industries. The inequalities of the law 

 should be adjusted, but the protective principle 

 should be maintained and fairly applied to the prod- 



