C46 



PUBLIC DOCUMENTS. 



the interest on the public debt has been so far dimin- 

 ished that now the sum to be raised for the interest 

 account is nearly seventeen millions of dollars less 

 than on the 1st of March^ 1869. It was highly de- 

 sirable that this rapid diminution should take place, 

 both to strengthen the credit of the country, and to 

 convince its citizens of their entire ability to meet 

 every dollar of liability without bankrupting them. 

 But, in view of the accomplishment of these desira- 

 ble ends, of the rapid development of the resources 

 of the country, its increasing ability to meet large 

 demands, and the amount already paid, it is not 

 desirable that the present resources of the country 

 should continue to be taxed in order to continue this 

 rapid payment. I therefore recommend a modifica- 

 tion of both the tariff and internal tax laws. I rec- 

 ommend that all taxes from internal sources be abol- 

 ished, except those collected from spirituous, vinous, 

 and malt liquors, tobacco, in its various forms, and 

 from stamps. 



In readjusting the tariff I suggest that a careful es- 

 timate be made of the amount of surplus revenue 

 collected under the present laws, after providing for 

 the current expenses of the Government, the interest 

 account, and a sinking-fund, and that this surplus 

 be reduced in such a manner as to afford the greatest 

 relief to the greatest number. There are many arti- 

 cles not produced at home, but which enter largely 

 into general consumption, through articles which are 

 manufactured at home, such as medicines compound- 

 ed, etc., etc., from which very little revenue is de- 

 rived, but which enter into general use. All such 

 articles I recommend to be placed on the free list. 

 Should a further reduction prove advisable, I would 

 then recommend that it be made upon those articles 

 which can best bear it without disturbing home-pro- 

 duction or reducing the wages of American labor. I 

 have not entered into figures, because to do so would 

 be to repeat what will be laid before you in the re- 

 port of the Secretary of the Treasury. 



The present laws for collecting revenue pay collec- 

 tors of customs small salaries, but provide for moi- 

 eties (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. 



Continued fluctuation in the value of gold, as com- 

 pared with the national currency, has a most damag- 

 ing 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 con- 

 stantly and uniformly approaching par with specie, a 

 very desirable object will be gained. 



For the operations of the army in the past year, 

 the expense of maintaining it, the estimates for the 

 ensuing year, and for continuing sea-coast and other 

 improvements conducted under the supervision of 

 the War Department, I refer you to the accompany- 

 ing report of the Secretary of War. 



I call your attention to the provisions of the act of 

 Congress, approved March 3, 1869, which discontin- 

 ues promotions in the staff corps of the army until 

 provided for by law. I recommend that the number 

 of officers in each grade in the staff corps be fixed, 

 and that, whenever the number in any one grade 

 falls below the number so fixed, the vacancy may 

 be filled by promotion from the grade below. 'I 

 also recommend that, when the office of chief 

 of a corps becomes vacant, the place may be filled 

 by selection from the corps in which the vacancy 

 exists. 



The report of the Secretary of the Navy shows an 



improvement in the .number and efficiency of the 

 naval force without material increase in the expense 

 of supporting it. This is due to the policy which 

 has been adopted, and is being extended as fast as 

 our material will admit, of using smaller vessels as 

 cruisers on the several stations. By this means wo 

 have been enabled to occupy at once a larger extent 

 of cruising-ground, to visit more frequently the ports 

 where tfce presence of our flag is desirable, and gen- 

 erally to discharge more efficiently the appropriate 

 duties of the navy in time of peace, without exceed- 

 ing the number of men or the expenditure authorized 

 by law. During the past year the navy has, in addi- 

 tion to the regular service, supplied the men and 

 officers for the vessels of the coast-survey, and has 

 completed the surveys, authorized by Congress, of the 

 Isthmuses of Darien and Tehuantepcc, and, under 

 like authority, has sent out an expedition, completely 

 furnished and equipped, to explore the unknown 

 ocean of the north. The suggestions of the report, 

 as to the necessity for increasing and improving the 

 material of the navy, and the plan recommended for 

 reducing the personnel of the service to a peace stand- 

 ard, by the gradual abolition of certain grades of 

 officers, the reduction of others, and the employment 

 of some in the service of the commercial marine, arc 

 well considered, and deserve the thoughtful attention 

 of Congress. I also recommend that all promotions 

 in the navy, above the rank of captain, be by selec- 

 tion, instead of by seniority. This course will secure 

 in the higher grades greater efficiency, and hold out 

 an incentive to young officers to improve themselves 

 in the knowledge of their profession. The present 

 cost of maintaining the navy, its cost compared with 

 that of the preceding year, and the estimates for the 

 ensuing year, are contained in the accompanying re- 

 port of the Secretary of the Navy. 



The enlarged receipts of the Post-Office Depart- 

 ment, as shown by the accompanying report of the 

 Postmaster-General, exhibit a gratifying increase 

 in that branch of the public 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 terri- 

 tory 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 Depart- 

 ment of the Government will prove a much greater 

 blessing^ to the whole people than it is now. The 

 suggestions of the Postmaster-General for improve- 

 ments 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 tele- 

 graphing 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 

 community of interest^ are always benefited by a 

 rapid intercommunication. 



Education, the groundwork of republican institu- 

 tions, is encouraged by increasing the facilities to 

 father speedy news from all parts of the country, 

 he desire to reap the benefit of such improvements 

 will stimulate education. I refer you to the report 

 of the Postmaster-General for full details of the op- 

 erations of last year, and for comparative statements 

 of results with former years. 



There has been imposed upon the Executive branch 

 of the Government the execution of the act of Con- 

 gress 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 



