Year: 1873

| the propriety of exactng from hem the retention
| as part of their reserve, either the whole or
part of the gold interest accruing upon the bond:
RRssS'O have not S reflected s enough @ % on the bear
| ing this might have in producing
/ scarcity of coin with which to pay dutie:
| on imports, TO give it my positive recommendation
but your attention is invited to the subject Dur
ing the last four years the currency has been con


tracted directly by the withdrawal of per cent
| tifcates composed of compound interest notes and
7-30 bonds outstanding on the 4th of March, 1862 al


of which took the place of legal tenders in the banE
reserves to the extent of sixty-three millions of dol


lars. During the same period there has been much
larger comparative contraction of the currency
The population of the country has largely increas
| ed; more than $500 miles of railroad have been
built requiring the active use OF capital to operate
| them: millions of acres of land have been opened
| to cultivation, requiring capital to remove the
| products manufactures have multiplied beyond
all precedent in the same period of time, requiring
capital weekly for the payment of wages and for
the purchase of material, and, probably the 1arg
| est of all, the comparative contraction arising
from the organizing of free labor in
receives his wages, and for want of savings
| banks, the greater parJ u such wages is
carried in the pocket boarded till required for
use These suggestions are thrown ont for your
| consideration, without any recommendation that
they shall be adopted literally. but hoping that the
| best method may be arrived at to secure such an
claSuClty OF the Will Keep employed
the industries of the country, and prevent such
imitation as will put off indefinitely the resumption
of specie payment, an object devouly to be wished
| for by all, and by none more earnestly than the
class of people most directly interested-those who
! earn their bread by the sweat of the brow. The
decision of Congress on this subject will have the
| hearty support of the Executive.


AMERICAN sHIP-BUILDTNG.


In previous messages have called attention to
| the decline in American ship building, and l re-
| commended such legislation would secure to
irIfn rot rviTlrr
Stimulated by higher rates and the abundance of
freight, the progress for the last year in
| ing has been very satisfactory. There has been
| an increase of about 3 per cent in the amount
| transported in American vessels over the amount
| of last year. With the reduced cost Of material
| which has taken place, it may reasonably be
| even increased. However, as we pay about $780,
0O00 per annum to foreign vessels for the trans
portation of our surplus products to market, thus
increasing the balance of trade againstus to this
amount. the subject is worthy of your serious
| consideration Cheap transportation is a subject
that has attracted the attention of both producers
and consumers for the past few years and has con-
trlbuted to, If 1t has not been the direct cause of
the recent panic and stringency AS Congress- at its
last session appointed Especial committee to nves-


igate this whole subject during the vacation, and
report at this session, have nothing to recon-
mend until their report is ready.


INLAND WATER. NAVIGATION. re eF@
Ihero Is one word, however, of national char
acter In which the greater portion of the East and
| West, the North and the South, are equally in
terested, to which | will invite your attention.
The State of New York has a canal connecting
Lake Erie with tide-water on the Hudson River
The State of Illinois has similar one connecting
Lake Michigan with the navigable waters on
munication inland between the East and
the West and the South. These
great artificial water courses the prop
erty of the States through which they pass and
pay toll to those States. Would it not be wise
craftsmanship to pledge these States that if they
VIII open these canals for the passage of large
vessels, the Government will look after and keep
in naVigabe condition the great public highways
with which they connect to-wit; The overslough
on the Hudson, the st. Clair flats, and the Illinois
anfions aad Mississippi MoiPp River? @ This % would be
producers of the West and South, in Civ
ing them cheap transportation for their
produce to the seaboard and a market to the con-
sumers In the East, in giving them cheaper food,
particularly of those articles of food which do not
ind foreign market, and the prices of which,
therefore, are not regulated by foreign demand
The advantages of such work are too obvious for
argument submit the subjectso You, therefore,
without further comment.


EXPLORATIONS OF THE AMAZON.


In attempting to regain our lost commerce and
carrying trade. heretofore called attention to the
States south of offering field where much
might be accomplished to further this object. I
suggest that small appropriation be made, ac-
companied with authority for the Secretary of the
Navy to fit out naval vessel to ascend the Amazon
River to the mouth of the Madeira, thence to ex-
pore that river and its tributaries into Bolivia and





slon.. or as soon as practicable, the ac-
feasibility of the country by water, its re-
sources, and the population SO reached. Such an
exploration will cost but little. 1t can do no
harm, and may result in establishing trade of
value to both nations.


REVISION OF THE TARIFF LAWS.


In further connection with the Treasury Depart
ment, would recommend revision and codfca-
tlon of the tariff laws and the opening of more
mlnts for coming money. with authority to coin
for such nations as may apply


AI1


The attention of Congress is invited to the
recommendations of the Secretary of War here
supporting the academy is fully explained in the
report, and it will receive your attention. While
inviting your attention to all the recommendations
made by the Secretary of War, there are two which
would especially invite you to consider: First
the Importance of preparing for war in time of
peace by providing for proper armament for our
sea-coast defenses. Proper armament is of vastly
more importance than fortfcations. The latter
can be supplied very speedily for temporary pur-
poses when needed; the former can not. The sec
ond Is The necessity OF reopening promotion in the
staff corps of the army. Particularly is this
sity felt i'll the medical, pay, and ordnance depart
ments. AT this time it is necessary to employ, by
contract, surgeons to supply the necessary medical
attention required by the army. With the present
force OF the Pay Department, it is now
difficult to make the payments to troops
provided for by law Long delays in paym ents
and the law prohibits the payment of troops by
other than regular army pay masters. There are
now sixteen vacancies in the Ordnance Depart.
ment, thus leaving that branch of the service
without sufficient officers to conduct the business
of the different arsenals on large scale if ever
required.


NAVY DEPARTMENT..


During the past year our navy has been reduced
by the sale of some vessels no longer fit for naval
purposes, and by the condemnation of others not
yet disposed of. This however has been more
than compensated for by the repair of six of the
old wooden ships, and by the building of eight
new sloops-of-war authorized by the last Congress
The building of these latter has occurred at a
doubly fortunate time. They are about being
completed, when they will possibly be much need
ed, and the work upon them has not only given
employment-to thousands of men, but, no doubt
has been the means of keeping open establish
ments of other works at time of great financial
distress Since The commencement of last month,
however, the distressing occurrences which have
taken place in the waters of the Caribbean sea,
along our very seaboard, while they illustrate
most forciby the necessity always existing
that a%nation situated as ours should MAIN
tain in state of efficiency a navy ade-
quate to its responsibilities, has at the same time
demanded that all the effective force we really
have shall be put in immediate readiness for war
like service. i his has been and is being done
promptly and efficiently, and am assured that
all the available ships and every authorized man
of the American navy will be ready for whatever
action is required for the safety of our
cities or the maintenance of our honor
This, of course. will cause the expendi-
ture, in short time, of some of the appropriations
which were calculated to extend through the fiscal
year; but Congress will, doubt not, understand
and appreciate the emergency and will provide
adequately, not only for the present preparation,
but for the future maintenance of our naval force
The Secretary of the Navy has during the past
year been quietly putting some of our most extern
sive monitors in condition for service and thus the
exigency finds us in much better condition for
war than we could possibly have been without his
action.


= posT-oFF1cE DEPARTMENT.


complete exhibit is presented in the accom-
panying report of the Postmaster General of the
operations of the Post-Ofice Department during
the year.


The ordinary postal revenues for the fiscal year
endincr lime 20 1273 Amounted to aoo Qos ri "