712 



PUBLIC DOCUMENTS. 



impossible for any Secretary of the Interior to keep 

 trace of all official transactions having his sanction 

 and done in his name, and for which he is held per- 

 sonally responsible. 



The policy adopted for the management of Indian 

 affairs, Known as the peace policy, has been adhered 

 to with most beneficial results. It is confidently 

 hoped that a few years more will relieve our frontiers 

 from danger of Indian depredations. 



I commend the recommendation of the Secretary 

 for the extension of the homestead laws to the In- 

 dians, and for some sort of territorial government for 

 the Indian Territory. A great majority of the In- 

 dians occupying this Territory are believed yet to be 

 incapable of maintaining their rights against the more 

 civilized and enlightened white man. Any territorial 

 form of government given them, therefore, should 

 protect them in their homes and property for a period 

 of at least twenty years, and before its final adoption 

 should be ratified by a majority of those affected. 



The report of the Secretary of the Interior, here- 

 with attached, gives much interesting statistical in- 

 formation, which I abstain from giving an abstract of, 

 but refer you to the report itself. 



The act of Congress providing the oath which pen- 

 sioners must subscribe to before drawing their pen- 

 sions cuts oif from this bounty a few survivors of the 

 War of 1812 residing in the (Southern States. I rec- 

 ommend the restoration of this bounty to all such. 

 The number of persons whose names would thus be 

 restored to the list of pensioners is not large. They 

 are all old persons who could have taken no part in 

 the rebellion, and the services for which they were 

 awarded pensions were in defense of the whole 

 country. 



The report of the Commissioner of Agriculture, 

 herewith, contains suggestions of much interest to 

 the general public, and refers to the approaching 

 Centennial and the part his department is ready to 

 take in it. I feel that the nation at large is interested 

 in having this Exposition a success, and commend to 

 Congress such action as will secure a greater general 

 interest in it. Already many foreign nations have 

 signified their intention to be represented at it, and 

 it may be expected that every civilized nation will be 

 represented. 



The rules adopted to improve the civil service of 

 the Government have been adhered to as closely as 

 has been practicable with the opposition with which 

 they meet. The effect, I believe, has been beneficial 

 on the whole, and has tended to the elevation of the 

 service. But it is impracticable to maintain them 

 without the direct and positive support of Congress. 

 Generally the support which this reform receives is 

 from those who give it their support only to find fault 

 when the rules are apparently departed from. Re- 

 movals from office without preferring charges against 

 parties removed are frequently cited as departures 

 from the rules adopted, and the retention of those 

 against whom charges are made, by irresponsible per- 

 sons and without good grounds, is also often con- 

 demned as a violation of them. Under these circum- 

 stances, therefore, I announce that, if Congress ad- 

 journs without positive legislation on the subject of 

 " civil-service reform," I will regard such action as a 

 disapproval of the system, and will abandon it, ex- 

 cept so far as to require examinations for certain ap- 

 pointees, to determine their fitness. Competitive ex- 

 aminations will be abandoned. 



The gentlemen who have given their services with- 

 out compensation, as members of the board to devise 

 rules and regulations for the government of the civil 

 service of the country, have shown much zeal and 

 earnestness in their work, and to them, as well as to 

 myself, it will be a source of mortification if it is to 

 be thrown away. But I repeat that it is impossible 

 to carry this system to a successful issue without 

 general approval and assistance, and positive law to 

 support it. 

 I have stated that three elements of prosperity to 



the nation, capital ; labor, skilled and unskilled, and 

 products of the soil, still remain with us. To direct 

 the employment of these is a problem deserving the 

 most serious attention of Congress. If employment 

 can bo given to all the labor offering itself, prosperity 

 necessarily follows. I have expressed the opinion, 

 and repeat it, that the first requisite to the accom- 

 plishment of this end is the substitution of a sound 

 currency in place of one of a fluctuating value. This 

 secured, there are many interests that might be fos- 

 tered, to the great profit of both labor and capital. 

 How to induce capital to employ labor is the question. 

 The subject of cheap transportation has occupied the 

 attention of Congress. Much new light on this ques- 

 tion will without doubt be given by the committee 

 appointed by the last Congress to investigate and re- 

 port upon this subject. 



A revival of ship-building, and particularly of iron- 

 steamship-building, is of vast importance to our na- 

 tional prosperity. The United States is now paying 

 over $100,000,000 per annum for freights and passage 

 on foreign ships to be carried abroad and expended 

 in the employment and support of other peoples be- 

 yond a fair percentage of what should go to foreign 

 vesselSj estimating on the tonage and travel of each 

 respectively. It is to be regretted that this disparity 

 in the carrying-trade exists, and to correct it I would 

 be willing to see a great departure from the usual 

 course ot Government in supporting what might 

 usually be termed private enterprise. I would not 

 suggest as a remedy direct subsidy to American steam- 

 ship-lines, but I would suggest the direct offer of am- 

 ple compensation for carrying the mails between At- 

 lantic seaboard cities and the Continent on American- 

 owned and American-built steamers, and would ex- 

 tend this liberality to vessels carrying the mails to 

 South American states and to Central America and 

 Mexico, and would pursue the same policy from our 

 Pacific seaports to foreign seaports on the Pacific. 

 It might be demanded that vessels built for this ser- 

 vice snould come up to a standard fixed by legislation, 

 in tonnage, speed, and all other qualities, looking to 

 the possibility of Government requiring them at some 

 time for war purposes. The right also of taking pos- 

 session of them in such emergency should be guarded. 



I offer these suggestions, believing them worthy of 

 consideration, in all seriousness, affecting all sections 

 and all interests alike. If any tiling better can be 

 done to direct the country into a course of general 

 prosperity, no one will be more ready than I to second 

 the plan. 



Forwarded here with will be found the report of the 

 commissioners appointed under an act of Congress 

 approved June 20, 1874, to wind up the affairs of the 

 District government. It will be seen from the report 

 that the net debt of the District of Columbia, less se- 

 curities on hand and available, is : 

 Bonded debt issued prior to July 1, 1874.. . $8,883,940 43 

 3.65 bonds, act of Congress June 20, 1874. . . 2,088,168 73 

 Certificates of the Board of Audit 4,770,558 45 



$15,742,667 61 



Less special-improvement as- 

 sessments (chargeable to pri- 

 vate property) in excess of 

 any demand against such as- 

 sessments $1,614,054 37 



Less Chesapeake & Ohio Canal 

 bonds 75,000 00 



And Washington & Alexandria 

 Railroad bonds 59,00000 



In the hands of the commis- 

 sioners of the sinkiug-fuud $1,748,054 37 



Leaving actual debt lees said assets $13,994,613 24 



In addition to this there are claims preferred against 

 the government of the District, amounting, in the 

 estimated aggregate reported by the Board of Audit, 

 to $3,147,787.48, of which the greater part will prob- 

 ably be rejected. This sum can with no more pro- 

 priety be included in the debt account of the District 



