PUBLIC DOCUMENTS. 



669 



I have become impressed with the belief that the 

 act approved March 2, 1867, entitled " An act to 

 establish a uniform system of bankruptcy throughout 

 the United States, " is productive ot more evil than 

 good at this time. Many considerations might be 

 urged for its total repeal, but, if this is not con- 

 sidered advisable, I think it will not bo seriously 

 Questioned that those portions of said act providing 

 >rwhat is called involuntary bankruptcy operate to 

 increase the financial embarrassments of the country. 

 Careful and prudent men very often become involved 

 in debt in the transaction of their business, and 

 though they may possess ample property, if it could 

 be made available for that purpose, to meet all their 

 liabilities, yet, on account of the extraordinary 

 scarcity of money, they may be unable to meet all 

 their pecuniary obligations as they become due, in 

 consequence of which they are liable to be prostrated 

 in their business by proceedings in bankruptcy at 

 the instance of unrelenting creditors. People are 

 now so easily alarmed as to monetary matters that 

 the mere filing of a petition in bankruptcy by an un- 

 friendly creditor will necessarily embarrass, and 

 oftentimes accomplish the financial ruin of a respon- 

 sible business man. Those who otherwise might 

 make lawful and just arrangements to relieve them- 

 selves from difficulties produced by the present strin- 

 gency in money, are prevented by their constant ex- 

 posure to attack and disappointment by proceedings 

 against them in bankruptcy ; and. besides, the law is 

 made use of in many cases by obdurate creditors to 

 frighten or force debtors into a compliance with their 

 wishes and to acts of injustice toother creditors and 

 to themselves. 1 recommend that so much of said 

 act as provides for involuntary bankruptcy on ac- 

 count of the suspension of payment be repealed. 



Your careful attention is invited to the subject of 

 claims against the Government, and to the facilities 

 afforded by existing laws for their prosecution. Each 

 of the Departments of State, Treasury, and War, have 

 demands for many millions of dollars upon their files, 

 and they are rapidly accumulating. To these may be 

 added those now pending before Congress, the Court 

 of Claims, and the Southern Claims Commission, 

 making in the aggregate an immense sum. Most of 

 these grow out of the rebellion, and are intended to 

 indemnify persons on both sides for their losses dur- 

 ing the war ; and not a few of them are fabricated and 

 supported by false testimony. Projects are on foot, 

 it is believed, to induce Congress to provide for new 

 classes of claims, and to revive old ones through the 

 repeal or modification of the statute of limitations, 

 by which they are now barred. I presume these 

 schemes, if proposed, will be received with little 

 favor by Congress, and I recommend that persons 

 having claims against the United States cognizable 

 by any tribunal or department thereof, be required 

 to present them at an early day, and that legislation 

 be directed as far as practicable to the defeat of un- 

 founded and unjust demands upon the Government ; 

 and I would suggest, as n means of preventing fraud, 

 that witnesses be called upon to appear in person to 

 testify before those tribunals having said claims be- 

 fore them for adjudication. Probably the largest 

 saving to the national Treasury can be secured by 

 timely legislation on these subjects, of any of the 

 economic measures that will be proposed. 



You will be advised of the operations of the De- 

 partment of Justice by the report of the Attorney- 

 General, and I invite your attention to the amend- 

 ments of existing laws suggested by him, with the 

 view of reducing the expenses of that Department. 



DEPARTMENT Or THE INTERIOR. 



The policy inaugurated toward the Indians at the 

 beginning of the last Administration has been stead- 

 ily pursued, and, I believe, with beneficial results. 

 It will be continued with only such modifications as 

 time and experience may demonstrate as necessary. 



With the encroachment of civilization upon the 

 Indian reservations and hunting-grounds, disturb- 



ances have taken place between the Indians and 

 whites during the past year, and probably will con- 

 tinue to do so until each race appreciates that the 

 other has rights which must be respected. 



The policy has been to collect the Indians, as rap- 

 idly as possible, on reservations and as far as prac- 

 ticable within what is known as the Indian Territory 

 and to teach them the arts of civilization and self- 

 support. Where found off their reservations, and 

 endangering the peace and safety of the whites, they 

 have been punished, and will continue to be for like 

 offenses. 



The Indian Territory south of Kansas and west 

 of Arkansas is sufficient in area and agricultural re- 

 sources to support all the Indians east of the Rocky 

 Mountains. In time, no doubt, all of them, except 

 a few who may select to make their homes among 

 white people, will be collected there. As a prepara- 

 tory step for this consummation, I am now satisfied 

 that a territorial form of government should be given 

 them, which will secure the treaty rights of the ori- 

 ginal settlers, and protect their homesteads from 

 alienation for a period of twenty years. 



The operations of the Patent-Office are growing to 

 such a magnitude, and the accumulation of material 

 is becoming so great, that the necessity for more 

 room is becoming more obvious day by day. 1 re- 

 spectfully invite your attention to the reports of the 

 Secretary of the Interior and Commissioner of Pat- 

 ents on this subject. 



The business of the General Land-Office exhibits 

 a material increase in all its branches during the last 

 fiscal year. During that time there were disposed 

 of, out of the public lands, 13,030,606 acres, being an 

 amount greater by 1,165,631 acres than was disposed 

 of during the preceding year. Of the amount dis- 

 posed of, 1,626,266 acres were sold for cash ; 214,- 

 940 acres were located with military land-warrants ; 

 3,793,612 acres were taken for homesteads ; 653,446 

 acres were located with agricultural college-scrip ; 

 6,083,536 acres were certified by railroads ; 76,576 

 acres were granted to wagon-roads: 238, 5i8 acres 

 were approved to States as swamp-lands ; 138,681 

 acres were certified for agricultural colleges, common 

 schools, universities, and seminaries; 190,775 acres 

 were approved to States for internal improvements ; 

 and 14,222 acres were located with Indian scrip. The 

 cash receipts during the same time were $3,408,515.50, 

 being $190,415.50 in excess of the receipts of the pre- 

 vious year. During the year 30,488,132 acres of pub- 

 lic land were surveyed, an increase over the amount 

 surveyed the previous year of 1,037,193 acres, and, 

 added to the area previously surveyed, aggregates 

 616,654,895 acres which have been surveyed, leaving 

 1,218,443,505 acres of the public land still unsur- 

 veyed. 



The increased and steadily increasing facilities 

 for reaching our unoccupied public domain, and for 

 the transportation of surplus products, enlarges the 

 available field for desirable homestead locations, 

 thus stimulating settlement, and extending, year by 

 year, in a gradually increasing ratio, the area of oc- 

 cupation and cultivation. 



The expressed desire of the representatives of a 

 large colony of citizens of Russia to emigrate to this 

 country, as is understood, with the consent of their 

 Government, if certain concessions can be made to 

 enable them to settle in a' compact colony, is of great 

 interest, as going to show the light in which our in- 

 stitutions are regarded by an industrious, intelligent, 

 and wealthy people, desirous of enjoying civil and 

 religious liberty ; and the acquisition of so large an 

 immigration ot citizens of a superior class would, 

 without doubt, be of substantial benefit to the coun- 

 try. I invite attention to the suggestion of the Sec- 

 retary of the Interior in this behalf. 



There was paid during the last fiscal year for 

 pensions, including the expense of disbursement 

 $29,185,289.62, being an amount less by $984,050.98 

 than was expended for the same purpose the preced- 

 ing year. Although this statement of expenditures 



