Morning journal and courier., 1886-12-07


 profit which, by the action of the govern menu, is given to the more favored manufac- turer.
 I recommend that, keeping in view all these considerations, the increasing and un- necessary surplus of national income annual ly accommodating be released to the people by an amendment to our revenue laws which shall cheapen the price of the necessarles ot life and give freer entrance to such imported materials as by American labor may be man. ufactured into marketable commodities.
 Nothing can be accomplished, however, in the direction of this much needed reform un- less the subject is approached in 8 patriotic spirit of devotion to the interests of the en- tire country and with willingness to yield something for the public good.
 THL SILVER QUESTION.
 During the fiscal year ending June 30, 1886, there were cotned under the compulso- " silver coinage act of 1878 29, ,838, ,905 silver dollars, and the cost of the silver in such coinage was $23, ,44S, ,960.01.. There had been coined up to the close of the previous fiscal year under the provisions of the law 2O3, 8S2, 554 silver dollars, and on the 1st day of December, 1886, the total amount of such coinage was $247, 131 ,549.
 The director of the mint reports that at the time of the passage of the law of 1878 di- recting this coinage the intrinsic value of the dollars thus coined was ninetyfour and one-fourth cents each, and that on the 31st day of July, 1886, the price of silver reached the lowest stage ever known, so that the in- trinsic or bullion price of our standard silver dollar at that date was less than seventy two cents. The price of silver on the Both day of November last was such as to make these dollars intrinsically worth seventy eight cents each.
 These differences in value of the coins rep resent the fluctuations in the price of silver and they certainly do not indicate that com pulsory coinage by the government enhances the price of that commodity or secures uni formity in it's value.
 Every fair and legal effort has been made by the Treasury department to distribute this currency among the people. The withdraw al of United States treasury notes of small denominations and the issue of small silver certificates have been resorted to in the en- deavor to accomplish this result in obedience to the will and sentiments of the representa- tives of the people in the Congress. On the 27th day of November, 1886, the people held of these coins, or certificates representing them, the nominal sum of $166, ,S73, ,041, and we still had $79, ,464, ,345 in the treasury as against about $142, 1894, ,055 so in the hands of the people and STE, ,S65, ,376 remaining in the treasury one year ago. The director of the mint again urges the necessity of more vaul room for the purpose of storing these silver dollars which are not needed for circulation by the people.
 I have seen no reason to change the views expressed in my last annual message on the subject of this compulsory coinage, and l again urge it's suspension on. all the grounds contained in my former recommendation, re- inferced by the significant increase of our gold expectations during the last year as appears by the comparative statement here with presented, and for the further reasons that the more this currency is distributed among the people the greater becomes our duty to protect it from disaster; that we now have abundance for all our needs and there seems but little propriety in building vaults to store such currency when the only pre- tense for it's coinage is the necessity of its use by the people as circulating medium.
 COAST DEFENsEs.
 The subject of coast defenses and fortifca- tions has been fully and carefully treated by the board on Notifications, whose report was submitted at the last session of Congress, but no construction work of the kind recom- mendsd by the board has been possible dur ing the last year from lack of appropriations for such purpose.
 The defenseless condition of our sea coast and lake frontier is perfectly palpable; the certain of our cities named in the report of the board should be fortified, and that work on the most important of these Notifications should be commenced at once; the work has been thoroughly considered and laid out in the Secretary of War reports, but all is delayed in default of congressional action.
 Ths absolute necessity, judged by allstand- ards of prudence and foresight, of our prepara- tion fer an effectual resistance against the armored ships and steel guns and mortars of modern construction which may threaten the cities on our coast, is SO apparent that I hope effective steps will be taken in that di- rection immediately.
 T this question by the Secretary of War is earn estly commended to the consideration of Congress.
 All the vessels heretofore authorized are under contract or in course of construction except the armored ships, the torpedo and dynamite boats and one cruiser. As to the last of these the bids were in excess of the limit fixed by Congress. The production in the United States of armor and gun steel is a question which it seems necessary to settle at an early day if the armored vessels are to be completed with those materials of home manufacture. This has been the subject of investigation by two boards and by two spe- cial committees of Congress within the last three years The report of the gun foundry board in 1884, of the board on Notifications made in January last and the reports of the select committee of the two houses made at the last session of Congress have entirely ex- hausted the subject so far as preliminary investigation is involved, and in their recommendations they are substantially agreed.
 In the event that the present invitation of the department for bids to furnish such of this material as is now authorized shall fail to induce domestic manufacturers to under take the large expenditures required to pre- pare for this new manufacture, and no other steps are taken by Congress at its coming session, the Secretary contemplates with dis satisfaction the necessity of obtaining abroad the armor and the gun steel for the author ized ships. It would seem desirable that the wants of the army and navy in this regard should be reasonably met, and that by unit ing their contracts such iEducement might be offered as would result in securing the domestication of these important inter ests.
 POSTAL MATTERS.
 The differences which arose during the year with certain of the ocean steamship companies have terminated by the acquies- cence of all in the policy of the government approved by Congress in the postal ap- at it's last session; and the de- partment now enjoys the utmost service af- ford a1 hv all voaaaIa uhich sai1 fror,, o,,r