Year: 1871

protect him in case of need. A small
| surveying party sent out, on reaching
the coast, was treacherously attacked at
a disadvantage. Ample opportunity
was given for explanation and apology
for the insult. Neither come. A force
was then landed. After an arduous
march over a rugged and difficult coun-
try, the forts from which the outrages
had been committed were gallantly as
saulted, and were destroyed. Having
thus punished the criminals, and having
vindicated the honor of the flag, the
expedition returned, finding it imprac-
ticable, under the circumstances, to
conclude the desired convention. [ re-
spectfully refer to the correspondence
relating thereto, herewith submitted,
and leave the subject for such action as
Congress may see fit to take.


The national debt has been reduced
to the extent of $S6,057, ,926.S0 during
the year, and by the negotiation of ma
tional bonds at a lower rate of interest,
the interest on the public debt has
been SO far diminished that the sum to
be raised for interest account is nearly
$17,000,000 less than on the 1st of
| March, 1860. 1t was highly desirable
that this rapid diminution should take
place, both to strengthen the credit of
the country and to convince its citizens
of their ability to entirely meet every
dollar of liability without bankrupting
them; but in view of the accomplish


ment of these desirable ends, of the
rapid development of the resources of
the country, its increasing ability to
meet the large demands, and the
amount already paid, it is not desirable


that the present resources of the coun-
| try should continue to be taxed in Or


der to continue this rapid payment.
| l, therefore, recommend modification
of both the internal tax laws. Irecom-
mend that all taxes from internal
sources be abolished, except those on
spirituous wines and malt liquors, to-
bacco in its various forms, and from
stamps. In readjusting the tariff, L
suggest that a careful estimate be made
of the amount of surplus revenue col
lected under the present law after pro-
viding for the current expenses of the
Government, the interest account, and
a sinking fund, and that this surplus be
reduced in such manner as to afford the
greatest relief to the greatest number.
| There are many articles not produced
at home, such as medicines and COM
pounded essences, from which very lit
tie revenue is derived, but which enter
into general use. All such articles l
recommend to be placed on the free
list. Should further reduction prove
advisable, l would then recommend
that it be made upon those articles
which can bear it without disturbing
home production or reducing the wages
| of American labor. have not entered
| into figures, because to do so would be
| to repeat all that is laid before you in
the report of the Secretary of the
| Treasury.


The present laws for collecting the
revenues pay the Collectors of Customs
small salaries, but provide for shares in
all seizures, which, at the principal
ports of entry particularly raise the
compensation of these officials to
large sum. 1t has always seemed to me
as if this system must at times work
perniciously. 1t holds out inducement
to dishonest men, should such get pos
session of those offices, to be lax in their
scrutiny of goods entered, to enable
them finally to make large seizures.
Your attention is respectfully invited
to this subject.


Continued fluctuations in the value of
gold, compared with the national cur
rency, has most damaging effect upon
the increase and development of the
country in keeping up prices of all arti-
cles necessary in everyday life. 1t fos-
ters a spirit of grumbling prejudicial
alike to national morals and the national
finances. If the question can be met
as to how to get fixed value to our
currency, that value constantly and
uniformly approaching her with specie,
| a very desirable object will be gained.
| For the operations of the army in the
past year, the expense of maintaining
it, the estimates for the ensuing year,
and for continuing sea-coast and other
improvements conducted under the SUI
pervision of the War Department,
refer you to the accompanying report of
the Secretary of War. L call your at
tention to the provisions of an act of
Congress approved March 8, 1869, which
| discontinues promotions in the staff
corps of the army until provided for by
law. 1 recommend that the number of
officers in each grade of the staff corps
| be fixed, and that whenever the num-


ber in any one grade falls below the
number SO fixed, that the vacancy may
be fixed by promotion from the grade
| below. l also recommend that when
| the Office of chief of a corps becomes
vacant, the place may be filled by selec-
ton from the corps in which the vacan-
! cy exists.


The report of the Secretary of the
| Navy shows an improvement in the
number and efficiency of the naval
IOrce, WITHOUT material increase IN the
expense of supporting it. This is due
to the policy which has been adopted,
and is being extended as fast as our ma
terial will admit, of using smaller ves-
sells as cruisers on the several stations
By these means we have been enabled
to occupy at once a larger extent of
| cruising ground, to visit more frequent
| ly the posts where the presence of our
flag is desirable, and generally to dis
charge more efficiently the appropriate
duties of the navy in time of peace.
1t has been the aim of the Admistra-
| ton to enforce honesty and efficiency
in all public affairs. Every public SER
want who has violated the trust placed
in him has been proceeded against with
all the rigor of the law. If bad men
have secured places it has been the
fault of the system established by law
and custom of making appointments,
or the fault of those who recommend
for Government positions persons not
sufficiently we'll known to them per-
sonally, or who give letters indorsing
the character of Office seekers, without
proper sense of the grave response
bilities which such course devolves
|