202 



CONGRESS. (THE PRESIDENT'S MESSAGE.) 



2,790 during the year, and during the past four years 

 and up to Oct. 29 last the total increase in the num- 

 ber of offices has been nearly 9,000. The number of 

 free-delivery offices has been nearly doubled in the 

 last four years, and the number of money-order of- 

 fices more than doubled within that time. 



For the three years ending June 30, 1892, the post- 

 al revenue amounted to $197,744,359, which was an 

 increase of $52.2*53,150 over the revenue for the three 

 years ending June 30, 1888, the increase during the 

 last three years being more than three and a half 

 times us great as the increase during the years end- 

 ing June 30, 1888. No such increase as that shown 

 tor these three years has ever previously appeared in 

 the revenues of the department. The Postmaster- 

 Gcneral has extended to the post-offices in the 

 larger cities the merit system ot promotion, intro- 

 duced by my direction into the departments here, 

 and it has resulted there, as in the departments, in a 

 larger volume of work, and that better done. 



Ever since our merchant marine was driven from 

 the sea by the rebel cruisers during the war of the 

 rebellion, the United States has been paying an enor- 

 mous annual tribute to foreign countries in the shape 

 of freight and passage moneys. Our grain and meats 

 have been taken at our docks and our large imports 

 there laid down by foreign shipmasters. An increas- 

 ing torrent of American travel to Europe has con- 

 tributed a vast sum annually to the dividends of for- 

 eign shipowners. The balance of trade shown by 

 the books of our customhouses has been very largely 

 reduced and in many years altogether extinguished 

 by this constant drain. In the year 1892 only 12-3 

 per cent, of our imports were brought in American 

 vessels. These great foreign steamships maintained 

 by our traffic are many of them under contracts with 

 their respective governments, by which in time of war 

 they will become a part of their armed naval estab- 

 lishments. Fronting by our commerce in peace, they 

 will become the most formidable destroyers of our 

 commerce in time of war. I have felt and have be- 

 fore expressed the feeling that this condition of 

 things was both intolerable and disgraceful. A 

 wholesome change of policy and one having in it 

 much promise, as it seems to me, was begun oy the 

 law of March 3, 1891. Under this law contracts have 

 been made by the Postmaster-General for 11 mail 

 routes. The expenditure involved by these contracts 

 for the next fiscal year approximates $954,123.33. As 

 one of the results already reached, 16 American steam- 

 ships of an aggregate tonnage of 57,400 tons, costing 

 $7,400,000, have been built or contracted to be built 

 in American shipyards. 



The estimated tonnage of all steamships required 

 under existing contracts is 165,802, and when the full 

 service required by these contracts is established 

 there will be 41 mail steamers under the American 

 flag, with the probability of further necessary addi- 

 tions in the Brazilian and Argentine service. The 

 contracts recently let for transatlantic service will re- 

 sult in the construction of 5 ships of 10,000 tons each, 

 costing 9 or 10 million dollars, and will add, with the 

 " City of New York " and " City of Paris," to which 

 the Treasury Department was authorized by legisla- 

 tion at the last session to give American registry, 7 

 of the swiftest vessels upon the sea to our naval re- 

 serve. The contracts made with the lines sailing to 

 Central and South American ports have increased 

 the frequency and shortened the time of the trips, 

 added new ports of call, and sustained some lines 

 that otherwise would almost certainly have been 

 withdrawn. The service to Buenos Ayres is the first 

 to the Agentine Republic under the American flag. 

 The service to Southampton, Boulogne, and Antwerp 

 is also new, and is to be begun with the steamships 

 "City of New York" and "City of Paris" in Feb- 

 ruary next. 



I earnestly urge a continuance of the policy in- 

 augurated by this legislation, and that the appropria- 

 tions required to meet the obligations of the Govern- 

 ment under the contracts may be made promptly, so 



that the lines that have entered into these engage- 

 ments may not be embarrassed. We have had, by 

 reason of connections with the transcontinental rail- 

 way lines constructed through our own territory, 

 some advantages in the ocean trade of the Pacific 

 that we did not possess on the Atlantic. The con- 

 struction of the Canadian Pacific Railway and the 

 establishment under large subventions from Canada 

 and England of fast steamship service from Van- 

 couver with Japan and China seriously threaten our 

 shipping interests in the Pacific. This line of Eng- 

 lish steamers receives, as is stated by the Com- 

 missioner of Navigation, a direct subsidy of $400,- 

 000 annually, or $30,767 per trip for 13 voyages, in 

 addition to some further aid from the admiralty in 

 connection with contracts under which the vessels 

 may be used for naval purposes. The competing 

 American Pacific mail line, under the act of March 3, 

 1891, receives only $6,389 per round trip. 



Efforts have been making within the last year, as I 

 am informed, to establish under conditions a line be- 

 tween Vancouver and some Australian port, with a 

 view of seizing there a trade in which we have had a 

 large interest. The Commissioner of Navigation 

 states that a very large per cent, of our imports from 

 Asia are now brought to us by English steamships 

 and their connecting railways in Canada. With a 

 view of promoting this trade, especially in tea, 

 Canada has imposed a discriminating duty of 10 per 

 cent, upon tea and coffee brought into the Dominion 

 from the United States. If this unequal contest be- 

 tween American lines without subsidy, or with di- 

 minished subsidies, and the English Canadian line to 

 which I have referred is to continue, I think we 

 should at least see that the facilities for customs entry 

 and transportation across our territory are not such 

 as to make the Canadian route a favored one, and 

 that the discrimination as to duties, to which I have 

 referred, is met by a like discrimination as to the im- 

 portation of these articles from Canada. 



No subject, I think, more nearly touches the pride, 

 the power, and the prosperity of our country than 

 this of the development of our merchant marine upon 

 the sea. If we could enter into conference with other 

 competitors and all would agree to withhold Gov- 

 ernment aid, we could perhaps take our chances with 

 the rest, but our great competitors have established 

 and maintained their lines by Government subsidies 

 until they now have practically excluded us from 

 participation. In my opinion no choice is left to us 

 but to pursue, moderately at least, the same lines. 



The report of the Secretary of the Navy exhibits 

 great progress in the construction of our new navy. 

 When the present Secretary entered upon his duties 

 only 3 modern steel vessels were in commission. 

 The vessels since put in commission and to be put in 

 commission during the winter will make a total of 19 

 during his administration of the department. Dur- 

 ing the current year 10 war vessels and 3 navy tugs 

 have been launched, and during the four years 25 

 vessels will have been launched. Two other large 

 ships and a torpedo boat are under contract and work 

 upon them well advanced, and the 4 monitors are 

 awaiting only the arrival of their armor, which has 

 been unexpectedly delayed, or they would have been 

 before this in commission. 



Contracts have been let during this administration, 

 under the appropriations for the increase of the navy, 

 including new vessels and their appurtenances, to the 

 amount of $35,000,000, and there nas been expended 

 during the same period for labor at navy yards upon 

 similar work $8,000,000, without the smallest scandal 

 or charge of fraud or partiality. The enthusiasm 

 and interest of our naval officers, both of the staff 

 and line, have been greatly kindled. They have re- 

 sponded magnificently to the confidence of Congress, 

 and have demonstrated to the world an unexcelled 

 capacity in construction, in ordnance, and in every- 

 thing involved in the building, equipping, and sailing 

 of great war ships. 



At the beginning of Secretary Tracy's administra- 



