PUBLIC DOCUMENTS. 



707 



chasing-power of their salaries. It is the duty of 



1088 to devise the method of correcting tl.< 

 winch are acknowledged to exut, and not mim-. Cut 

 1 will viiiture to suggest two or throe things which 

 eem to me as absolutely necessary to a return to 

 specie I'livin. -iits, the lirnt great requisite in a return 

 'I'll.- legal-tender clauHO to the law 

 aiitlii.ri/in^ tlm issue of currency bv the national 



unit-ill should be repealed, to toko effect as to 

 ;.ll ..ntracto entered into alter a day fixed in the re- 

 pealing act; not to apply, however, to payments of 



- l>y Covi-rument, or for other expenditures 

 now provided by law to be paid in currency in tho 



.il pending between repeal and final resumption. 



:on should be mode by which the Secretary of 

 the Treasury can obtain gold as it may become neces- 

 sary from time to time from the date when specie 



;-ti"ti commences. To this might an>l -In.i.M 



ii-d a revenue sufficiently in excess of expenses 

 t<> insure an accumulation of gold in tho Treasury to 

 sustain permanent redemption. 



I commend this subject to your careful considera- 

 tion, believing that a favorable solution is attainable. 

 and, if reached by this Congress, that the present ana 

 future generations will ever gratefully remember it 

 as their deliverer from a thraldom of evil and dis- 



With resumption, free banking may be authorized 

 with safety, giving the some fufl protection to bill- 

 holders which they have under existing laws. In- 

 deed, I would regard free banking as essential. It 

 would give proper elasticity to the currency. As 

 more currency should be required for the transaction 

 of legitimate business, new banks would be started, 

 and, in turn, banks would wind up their business 

 when it was found that there was a superabundance 

 of currency. The experience and judgment of the 

 people can best decide just how much currency is 

 required for the transaction of the business of the 

 country. It is unsafe to leave the settlement of this 

 question to Congress, the Secretary of the Treasury, 

 or the Executive. Congress should make the regula- 

 tion under which banks may exist, but should not 

 make banking a monopoly bv limiting tho amount of 

 redeemable paper currency that shall be authorized. 

 Such importance do I attach to this subject, and so 

 earnestly do I commend it to your attention, that I 

 give it prominence by introducing it at the beginning 

 of this message. 



During the past year nothing has occurred to dis- 

 turb the general friendly and cordial relations of the 

 United States with other powers. 



The correspondence submitted herewith between 

 this Government and its diplomatic representatives, 

 as also with the representatives of other countries, 

 shows a satisfactory condition of all questions between 

 the United States and the most of those countries, 

 and with few exceptions, to which reference is here- 

 jitter made, the absence of any points of difference to 

 be adjusted. 



The notice directed by the resolution of Congress 

 of June 17, 1874, to be given to terminate the conven- 

 tion of July 17, 1853 t between the United States and 

 Belgium, has been given, and the treaty will accord- 

 ingly terminate on the 1st day of July, 1875. The 

 convention secured to certain Belgian vessels enter- 

 ing the ports of the United States exceptional privi- 

 leges which are not accorded to our own vessels. 

 Other features of the convention have proved satis- 

 factory, and have tended to the cultivation of mutually 

 beneficial commercial intercourse and friendly rela- 

 tions between tho two countries. I hope that nego- 

 tiations which have been invited will result in the 

 celebration of another treaty which may tend to the 

 interests of both countries. 



Our relations with China continue to be friendly. 

 During the past year tho fear of hostilities between 

 China and Japan, growing out of the landing of an 

 armed force upon the island of Formosa by the latter, 

 has occasioned uneasiness. It is earnestly hoped, 



however, that the difficulties arising from thU 

 will be adjusted, and that the advance of civilization 

 in tliLse empire* may not be retarded by a state of 

 war. In consequence of the part token by certain 

 citizen* of the United State* in this expedition, our 

 reproHcntativea in those countries have been in- 

 structed to impress upon the Government* of China 

 in.- 1 Japan the firm intention of this country to main- 

 tain strict neutrality in the event of hontilities, and to 

 carefully prevent any infraction of law on the part of 

 our citizens. 



In connection with this subject I call the attention 

 of Congress to a generally-conceded fact that tho 

 great proportion of the Chinese immigrants who come 

 to our shores do not come voluntarily to make their 

 homes with us and their labor productive of general 

 prosperity, but come under contracts with head- 

 men who own them almost absolutely. In a worse 

 form does this apply to Chinese women. Hardly a 

 perceptible percentage of them perform any honor- 

 able labor, but they are brought for shameful pur- 

 poses, to the disgrace of the communities where 

 settled and to the great demoralization of the youth 

 of those localities. If this evil practice can be legis- 

 lated against, it will be my pleasure as well as duty 

 to enforce an v regulation to secure so disirable an end. 



It is hoped that negotiations between the Govern- 

 ment of Japan and the treaty powers, looking to the 

 further opening of the empire, and to the removal of 

 various restrictions upon trade and travel, may soon 

 produce the results desired, which cannot fail to inure 

 to the benefit of all the parties. Having on previous 

 occasions submitted to the consideration of Congress 

 the propriety of the release of the Japanese Govern- 

 ment from the further payment of the indemnity 

 under the convention of October 22, 1864, and as no 

 action hod been taken thereon, it became my duty to 

 regard tho obligations of the convention as in force ; 

 and, as the other powers interested had received their 

 portion of the indemnity in full, the minister of the 

 United States in Japan has, in behalf of this Govern- 

 ment, received the remainder of the amount due to 

 the United States under the convention of Simono- 

 seki. I submit the propriety of applying the income 

 of a part if not of the whole of this fund to the educa- 

 tion in the Japanese language of a number of young 

 men to be under obligations to serve the Government 

 for a specified time as interpreters at the legation and 

 the consulates in Japan. A limited number of Japan- 

 ese youths might at the same time be educated in our 

 own vernacular, and mutual benefits would result to 

 both Governments. The importance of having our 

 own citizens competent, and familiar with the lan- 

 guage of Japan, to act as interpreters and in other 

 capacities connected with the legation and the con- 

 sulates in that country, cannot readily be over-esti- 

 mated. 



The amount awarded to the Government of Great 

 Britain by the mixed commission organized under 

 the provisions of the Treaty of Washington in settle- 

 ment of the claims of British subjects arising from 

 acts committed April 13, 1861, and April 9, 1865 ; be- 

 came payable, under the terms of the treaty, within 

 the post year, and was paid upon the 21st day of 

 September. 1874. In this connection, I renew my 

 recommendation, made at the opening of the lout ses- 

 sion of Congress, that a special court be created to 

 hear and determine all claims of aliens against the 

 United States arising from acts committed against 

 their persons or property during the insurrection. It 

 appears equitable that opportunity should be offered 

 to citizens of other states to present their claims, as 

 well as to those British subjects whose claims were 

 not admissible under the late commission, to the early 

 decision of some competent tribunal. To this end, I 

 recommend the necessary legislation to organize a 

 court to dispose of all claims of aliens of the nature 

 referred to, in an equitable and satisfactory manner, 

 and to relieve Congress and the Departments from 

 tho consideration of these questions. 



