708 



PUBLIC DOCUMENTS. 



and the exhibition of the products of American in- 

 dustry was creditable and gratifying in scope ana 

 character. The reports of the United States com- 

 missioners, giving its results in detail, will _be duly 

 laid before you. Our participation in this interna- 

 tional competition for the favor and the trade of the 

 world may be expected to produce useful and impor- 

 tant results, in promoting intercourse, friendship, and 

 commerce with other nations. 



In accordance with the provisions of the act of 

 February 28, 1878, three commissioners were ap- 

 pointed to an international conference on the sub- 

 ject of adopting a common ratio between gold and 

 silver, for the purpose of establishing, internation- 

 ally, the use of bimetallic money, and securing fixity 

 of relative value between those metals. Invitations 

 were addressed to the various Governments which 

 had expressed a willingness to participate in its de- 

 liberations. The conference held its meetings in 

 Paris, in August last. The report of the commis- 

 sioners, herewith submitted, will show its results. 

 No common ratio between gold and silver could be 

 agreed upon by the conference. The general con- 

 clusion was reached that it is necessary to maintain 

 in the world the monetary functions of silver as well 

 as of gold, leaving the selection of the use of one 

 or the other of these two metals, or of both, to be 

 made by each State. 



Congress having appropriated at its last session 

 the sum of $5,500,000 to pay the award of the Joint 

 Commission at Halifax, if, after correspondence with 

 the British Government on the subject of the con- 

 formity of the award to the requirements of the 

 treaty and to the terms of the question thereby sub- 

 mitted to the Commission, the President shall deem 

 it his duty, to make the payment, communications 

 upon these points were addressed to the British Gov- 

 ernment through the legation of the United States 

 at London. Failing to obtain the concurrence of 

 the British Government in the views of this Govern- 

 ment respecting the award, I have deemed it my 

 duty to tender the sum named within the year fixed 

 by the treaty, accompanied by a notice of the grounds 

 of the payment, and a protest against any other con- 

 struction of the same. The correspondence upon 

 this subject will be laid before you. 



The Spanish Government has officially announced 

 the termination of the insurrection in Cuba, and the 

 restoration of peace throughout that island. Confi- 

 dent expectations are expressed of a revival of trade 

 and prosperity, which it is earnestly hoped may prove 

 well founded. Numerous claims of American citi- 

 zens for relief for injuries or restoration of property 

 have been among the incidents of the long-continued 

 hostilities. Some of these claims are in process of 

 adjustment by Spain, and the others are promised 

 early and careful consideration. 



The treaty made with Italy, in regard to recipro- 

 cal consular privileges, has been duly ratified and 

 proclaimed. 



No Questions of grave importance have arisen with 

 any other of the European powers. 



The Japanese Government has been desirous of a 

 revision of such parts of its treaties with foreign 

 powers as relate to commerce, and, it is understood, 

 has addressed to each of the treaty powers a re- 

 quest to open negotiations with that view. The 

 United States Government has been inclined to re- 

 gard the matter favorably. Whatever restrictions 

 upon trade with Japan are found injurious to that 

 people can not but affect injuriously nations holding 

 commercial intercourse with them. Japan, after a 

 long period of seclusion, has within the past few 

 years made rapid strides in the path of enlighten- 

 ment and progress, and, not unreasonably, is look- 

 ing forward to the time when her relations with the 

 nations of Europe and America shall be assimilated 

 to those which they hold with each other. A treaty 

 looking to this end has been made, which will be 

 submitted for the consideration of the Senate. 



After an interval of several years, the Chinese 

 Government has again sent envoys to the United 

 States. They have been received, and a permanent 

 legation is now established here by that Government. 

 It is not doubted that this step will be of advantage 

 to both nations in promoting friendly relations and 

 removing causes of difference. . 



The treaty with the Samoan Islands, having been 

 duly ratified and accepted on the part of both Gov- 

 ernments, is now in operation, and a survey and 

 soundings of the harbor of Pago-Pago have been 

 made by a naval vessel of the United States, with 

 a view of its occupation as a naval station, if found 

 desirable to the service. 



Since the resumption of diplomatic relations with 

 Mexico, correspondence has been opened and still 

 continues between the two Governments upon the 

 various questions which at one time seemed to en- 

 danger then-relations. While no formal agreement 

 has been reached as to the troubles on the border, 

 much has been done to repress and ditninish them. 

 The effective force of United States troops on the 

 Eio Grande, by a strict and faithful compliance with 

 infractions, has done much to remove the sources 

 of dispute, and it is now understood that a like force of 

 Mexican troops on the other side of the river is also 

 making an energetic movement against the maraud- 

 ing Indian tribes. This Government looks with the 

 greatest satisfaction upon every evidence of strength 

 in the national authority of Mexico, and upon every 

 effort put forth to prevent or to punish incursions 

 upon our territory. Eeluctant to assume any action 

 or attitude in the control of these incursions, by 

 military movements across the border, not impera- 

 tively demanded for the protection of the lives and 

 property of our own citizens, I shall take the earliest 

 opportunity, consistent with the proper discharge 

 of this plain duty, to recognize the ability of the 

 Mexican Government to restrain effectively viola- 

 tions of our territory. It is proposed to hold next 

 year an International Exhibition in Mexico, and it is 

 believed that the display of the agricultural and 

 manufacturing products of the two nations will tend 

 to better understanding and increased commercial 

 intercourse between their people. 



With Brazil, and the republics of Central and 

 South America, some steps have been taken toward 

 the development of" closer commercial intercourse. 

 Diplomatic relations have been resumed with Co- 

 lombia and with Bolivia. A boundary question be- 

 tween the Argentine Eepublic and Paraguay has 

 been submitted by those Governments for arbitra- 

 tion to the President of the United States, and I 

 have, after careful examination, given a decision 

 upon it. 



A naval expedition tip the Amazon and Madeira 

 Eivers has brought back information valuable both 

 for scientific and commercial purposes. A like ex- 

 pedition is about visiting the coast of Africa and 

 the Indian Ocean. The reports of diplomatic and 

 consular officers in relation to the development of 

 our foreign commerce have furnished many facts 

 that have proved of public interest, and have stim- 

 ulated to practical exertion the enterprise of our 

 people. 



The report of the Secretary of the Treasury fu.r- 

 nishes a detailed statement of the operations of that 

 Department of the Government, and of the condi- 

 tion of the public finances. 



The ordinary revenues from all sources for the fis- 

 cal year ended June 30, 1878, were $257,763,878.70; 

 the ordinary expenditures for the same period were 

 $236,964,326.80 leaving a surplus revenue for the 

 year of $20,799,551.90. 



The receipts for the present fiscal year, ending 

 June 30, 1879, actual and estimated, are as follows : 

 Actual receipts for the first quarter commencing 

 Julyl, 1878, $73,389,743.43; estimated receipts for 

 the remaining three quarters of the year, $191,110,- 

 256.57 ; total receipts for the current fiscal year, ac- 



