Year: 1872

hieSedSo II Is Win tnaEkIulneS9 TO the 6lVel
OF all good, that as a nation we have been
blessed for the last year with peace at home
and abroad, and a general prosperity vouch-
safed to but few people. With the exception
OF the recent devastating FIRE which swept
from the earth at q breath, as it were, mil
lions of accumulated wealth in the city OF
Boston, there has been no overshadowing
eaIamities within the year to record. It is
gratifying to nete how like their fellow-citi-
zens of Chicago, under similar circum-
stances year earlier, the citizens of Boston
are rallying under their misfortunes, and the
prospect is that their energy and persever-
ancs will overcome all obstacles and show
the same prosperity soon that they would
have had, had no disaster befallen them.
Otherwise we have been free from pestilence,
war and the calamities which often overtake
nations. And, as far as human Judgment
can penetrate the future, no cause seems to
exist to threaten our present peace.


When Congress adjourned in June last, a
question had been raised by Great Britain,
and was then pending, which for time Sc
riously imperilled the settlement, by friendly
arbitration OF the differences existing be-
tween this Government and that of her
Britannia Majesty, which, by the Treaty Of
Washington, had been referred to the tri-
bunal of arbitration which had met at Gen
eva, in Switzerland. The arbitrators, how
ever, disposed Of the question which had
jeopardized the whole of the treaty and
thre atened to involve the two nations in
most unhappy relations toward each other,
In a manner entirely satisfactory to this
Government, and in accordance with the
views and the policy which it had M in
tanned. The tribunal which had convened
in Geneva, in December, concluded its Ia
borious session on the 14th day of Septem-
Der last, on which day, having availed itself
of the discretionary power given to it by the
treaty to award a sum in gross, it made its
decision whereby it awarded the sum of
$15,500,O00 in gold, as the indemnity to be
paid by Great Britain to the United States
for the satisfaction of all the claims referred
to its consideration. This decision, happily,
disposes of long standing difference be-
tween the two Govern ms snts, and in connec-
ton with another award made by the German
Emperor under a reference to him by the
same treaty, leaves the two Governments
without a shadow upon the friendly relations,
which it is my sincere hope may forever re-
main equally unclouded.


The report of the agent of the United
States, appointed to attend the Geneva tri-
buna1, accompanied by the protocols of the
proceedings of the arbitrators, the argu-
ments of the counsel of both governments,
the award of the tribunal, and the opinions
given by the several arbitrators is transmit
ted herewith.


1 have caused to be communi Gated to the
heads of the three friendly powers who COM
piled to the joint request made to them under
the treaty the thanks of this Government for
appointment of arbitratcrs made by them
respectively, and also my thanks to the emf





appreciation of the dignity, patience, impair
tiality and great ability with which they
discharged their arduous and high functions.


Her Majesty's Government has communi-
Gated to me the appreciation by her Msjss-
ty of the ability and indefatigable industry
displayed by Mr.. Adams, the arbitrator
named on the part of this Government, dur
ing the protracted Inquiries and discussions
OF the tribunal. cordially unite with her
Majesty in this appreciation.


1t is due to the AGENT of the United States
before the tribunal, to record my appreci-
alton of the marked ability, unwearied pa
dence, and the prudence and discretion with
which he has conducted the very responsible
and delicate duties committed to him. And
it is also due to the learned and eminent
counsel who attended the tribunal on the
part of this Government, to express my
sense of the talent and wisdom which they
brought to bear ia the argument of the result
30 happily reached. 1t will be the province
of Congress to provi1e for the distribution,
among those who are entitled to it, of their
respective shares of the money to be paid.


Although the sum awarded is not payable
until the year from the date of the award,
it is deemed advisable that no time be lost
in making proper examination of the sew
eral cases in which indemnifcation may be
due. consequently recommend the crea-
tion of Board of Commissioners for the
purpose. By the Thirty fourth article of the
Treaty of Washington the respective claims
of the United States and of Great Britain in
their construction of tho treaty of the 18th
June, 1s46, defining the boundary line be-
tween their respective territories, were sub
mitted to the arbitration and award of his
Majesty the Emperor of Germany, to decide
which of these claims is most in accordance
with the true Interpretation of the treaty of
1s46. His Majesty the Emperor of Germany
having been pleased to undertake the arbi-
tration has the earnest thanks of this Gov
ernment and of the people of the United
States for the labor, pains and care which he
has devoted to the consideration of this
long pending difference. 1 have caused an
expression of my thanks to be communicated
to his Majesty.


Mr.. Bancroft, the representative of this
Government at Berlin, conducted the case
and prepared the statement on the part of
the United States with the ability that his
past service just fed the public in expecting
at his hands. As members of the Cabinet
at the date of the treaty which has given
rice to this discuss ion between the two Gov
ernments; as the Minister to Great Britain
when the construction now pronounced un-
founded was first advanced, and as the
agent and representative of the Cove nment
to present the case and to receive the award,
he has been associated with the question in
all of its phases, and in every stage
earnestn ess in maintenance of the claim of
the United States. He is entitled to much
credit for the success which has attended the
submission. After patient investigation of
Lne case, ana OF Cne statements OF each party,
his Majesty the Emperor of Germany, on
the 2lst day of October last, signed his award
in writing, decreeing that the claim of the
Government of the United States that the
boundary line between the territories of
her Britannia Majesty and the United States
should be erawn through the Haro channel,
is most in accordance with the true inter
probation of the treaty concluded on the 18th
of June, 1S48, between the agents of her
Britannia Majesty and of theUnited States.
Copies of the case presented on behalf of
each Government and of the statement in
reply to each, and translation of the award +,
are transmitted herewith. This award con-
fl ms the United States-in their claim to the
important Archipelago Islands lying be-
tween the continent aud Vancouver's Island,
which for fwenty-5ix years-even since the
ratification Of the treaty-Great Britain has
contested, and leaves US for the the first time
IN the history of the United States as nation
without a question of disputed boundary be-
tween our territory and the possessions of
Great Britain on this continent.


1t is my grateful duty to acknowledge the
prompt, spontaneous action of her Majesty q
Government in giving effect to the award.
In anticipation of any request from this
Government, and before the reception in the
United States of the award signed by the
Emperor, her Majesty had given instructions
for the removal of her troops, which had
been stationed there, and for the cessation of