Year: 1874




1t is with regret announce that no further
payment has been received from the govern
ment of Venezuela on account of awards in
favor of citizens of the United States. Hopes
have been entertained that the republic would
escape both foreign and civil war for a few
years. Its great natural resources would
enable it to honor its obligations, though it is
now understood to be at peace with other
countries, though a serious insurrection is re-
ported to be in progress in an important region
of that republic This may be taken advantage
of as another reason to delay the dues of cur
citizens.


The deplorable strife in Cuba continues
without any marked change in the relative
advantage OF the conteuding forces. The in
sun rection continues, but Spain has gained no
superiority. Six years of insurrectiOn gives it
a significance which cannot be denied. The
devotion and the tenacity of its adherents,
together with the absence of manifested power
of suppression on the part of Spain, cannot
be controlled and may make some positive
steps on the part of other Powers a matter of
self-necessity. had confidently hoped at this
time to be able to announce the arrangement
OF some of the important questions between
this government and that of Spain, but the
negotiations have been protracted The un
happy intestine dissensions of Spain command
our profound sympathy, and must be accepted
as, perhaps, cause of some delay. An early





between the governments is hoped in the
meantime.


Rights OF Citiz era ship.


Awaiting the results of Immediately pend
ing negotiations defer to further and fuller
commuEieation on the scbject of the relations
OF this country and Spain. l have again to call
the attention Of Congress to the unsatisfactory
condition of existing laws with reference to eX-
patriaton and the election of nationality. For
merry amid conflicting opinions and decisions
it was difficult to exactly determine how far
the doctrine of perpetual allegiance was applica-
BILE to citizens of the United States. Congress,
by the act of the 9th of July, 1868, asserted
the abstract right of expatriaton as funda-
mental principle of this government Not
withstanding such assertion and the necessity
OF frequent application of the principle legisla-
ton has been had defining acts or formaiities
that shall work expatriation or when a citizen
has been deemed to have renounced or to have
lost his citizenship. The Importance of such
definition is obvious. The representatives of
the United States in foreign countries are con-
tinually called upon to lend the aid and prOtec-
tion of the United States to persons, concerning
the good faith or the reality of whose cit
izenship, there is at least great question. In
some cases the provisions of treaties furnish
some guide; in others it is left to benefit per-
sons claiming citizenship while living in for
eign country, contributing in no manner to the
performance of the duties of a citizen of the
United States and without the intention at any
time to return to undertake these duties who
use the claims of citizenship of the United
States simply as shield from the performance
of the obligations of a citizen elsewhere. The
status of children born of American parents re-
siding in foreign country, of American woman
who have married aliens, of American citizens
residing abroad where such question is not reg
ulated by treaty are all the sources of frequent
difficulty and discussions. Legislation on these
and similar questions and particularly defining
han nd II uhof
tion can be accomplished or is to be presumed,
is especially needed.


In this connection l earnestly call the atten-
tion of Congress to the difficulties arising from
fraudulent naturalization. The United States
wisely, freely and literally offers its citizenship
within its limits, on their complying with GER
tain prescribed reasonable and simple formaii-
ties and conditions. Among the highest duties
of the government is that to afford firm, eff
cient and equal protection to all its citizens,
whether native born or naturalized Care
should be taken that right carrying with it
such. support from the government should not
be frauduently obtained, and should be be-
slowed only upon full proof of a compliance
with the law, and yet there are frequent in
stances Of illegal and fraudulent naturaliza-
tion, and of the unauthorized use of certificates
thus improperly obtained. In some cases the
fraudulent character of the naturalization has
appeared upon the face of the certificate itself.
In others, examination discoSes that the hold
er had not complied with the law, and in others
certificates have been obtained where the per-
sons holding them were not only not entitled
to be naturalized, but had not been within the
United States at the time of the pretended nat
urallzatlon Instances of each of these classes
OF fraud are discovered at our legations where
the certificates of naturalization are presented.
for the purpose OF obtaining naturalization or
in demanding the protection of the legation
When the fraud is apparent on the faces of
such certificates, they are taken up by the rep
resentatlveS OF the government and forwarded
to the Department of State, but even then the
record of the court in which the fraudulent
naturalization occurred remains, and duplicate
certificates are readily obtainable. Upon the
presentation of these for the issue of passports
or for demanding protection of the government
the fraud at the same time escapes notice, and
such certificates are not unfrequenty used in
the transaction of business to the deception and
injury of innocent parties. Without placing
any additional obstacles in the way of obtain
ment of citizenship by the worthy and well in
tended foreigner who comes in good faith to
cast his lot with ours, 1 earnestly recommend
further legislation to punish fraudulent natu-
rallzatlon, and to secure the ready cancellation
of the record of every naturalization made in
fraud.


Treaties.


Since my last annual message the exchange
has been made of the ratification of the trea-
ties of extradition with Belgium, Ecuador,
Peru and San Salvador; also of a treaty of
commerce and navigation with Peru, and one
of commerce and consular privileges with San
Salvador, all of which have been duly proclaim
ed, as has also declaration with Russia with
reference to trade marks.


The Finances.


The report of the Secretary of the Treasury
which by law is made directly to Congress and
forms no part of this message will show the
receipts aud expenditures of the government
for the last fiscal year, the amount received
from each source of revenue, and the amount
paid out for each of the departments Of the
government. 1t will be observed from this
penditures has been 81, 344 SS2 80 for the fiscal
year ending June 10th, 1874, and that for the
current fiscal year he estimates the receipts
over expenditures will not much exceed nine
millions of dollars. In view of the large
national debt existing, and the obligation to
add one per cent per aDnum to the sinking
fund, sum amounting now to over thirty-four
millions per annum, L submit whether the
revenues should not be increased or expendi-
lures diminished to reach this amount of sur
plus. Not to provide for the sinking fund is a
partial failure to comply with the contracts
and obligations OF the government. AT the
last session of Congress a very considerable
reduction was made in the rates of taxation
and in the numDer of articles submitted to
taxation, the question may well be asked
WneJner or not III some instances unWlSely.
In connection with this subject, too, venture
the opinion that the means of collecting i'm
ports have been so embarrassed by legislation
as to make it questionable whether or not large
amounts are not lost by failure TO collect, to
the direct loss of the Treasury, and to the
prejudice of the interest Iof honest importers
and Taxpayers


The Secretary of the Treasury, in his report,
favors legislation looking to an early return to
specie payments, thus supporting the views
previously expressed in this message. He also
recommends economy in appropriations, calls
attention to the loss of revenue from repealipg
the tax on tea and coffee without benefit to
consumers; recommends an increase of ten
cents q gallon on whiskey, and further, that
no modification be made on the currency and
banking bills passed at the last session of Con-
gress, unless modification should become
necessary by reason Of the adoption of mea-
sures for returning TO specie payments.


In these recommendations cordially join.


The Tariff.


| would suggest to Congress the propriety of
readjuSting the tariff so as to increase the rev.
enue and at the same time decrease the number
of articles upon which duties are levied. Thsoe
articles which enter into our manufactures and
are not produced at home, it seems TO me,
should be entered Free Those articles of man
ufacture which we produce constituent part
of, but do not produce the whole, that part
which we do not produce should enter flee Also
I will instance fine wool, dyes, etc. These arti-
cles must be Imported to form q part of the
manufacture of the higher grades of wooden