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and order. It is greatly to be hoped that the present liberal govern. ment of Spain will voluntarily adopt this view.

The law of emancipation, which was passed more than two years since, has remained unexecuted in the absence of regulations for its enforcement. It was but a feeble step toward emancipation, but it was the recognition of right, and was halled as such, and exhibited Spain in harmony with sentiments of humanity and of justice, and in sympathy with the other powers of the Christian and civilized world.

Within the past few weeks the regulations for carrying out the law of emancipation have been announced, giving evidence of the sincerity of intention of the present government to carry into effect the law of 1870. I have not failed to urge the consideration of the wisdom, the policy, and the justice of a more effective system for the abolition of the great evil which oppresses a race, and continues a bloody and destructire contest close to our border, as well as the expediency and the justice of conceding reforms of which the propriety is not questioned.

Deeply impressed with the conviction that the continuance of slavery is one of the most active causes of the continuance of the unhappy condition in Cuba, I regret to believe that citizens of the United States, or

I those claiming to be such, are large holders in Cuba of what is there claimed as property, but which is forbidden and denounced by the laws of the United States. They are thus, in defiance of the spirit of our own laws, contributing to the continuance of this distressing and sickening contest. In my last annual message I referred to this subject, and I again recommend such legislation as may be proper to denounce, and, if not prevent, at least to discourage American citizens from holding or dealing in sla es.

It is gratifying to announce that the ratificatious of the convention concluded under the auspices of this Government, between Spain on the one part, and the allied republics of the Pacific on the other, providing for an armistice, have been exchanged. A copy of the instrument is herewith submitted. It is hoped that this may be followed by a permanent peace between the same parties.

The differences wluich at one time threatened the inaintenance of peace between Brazil and the Argentine Republic, it is hoped are in the way of satisfactory adjustment.

With these states, as with the republics of Central and of South America, we continue to maintain the most friendly relations.

It is with regret, however, I announce that the government of Ven. eznela las made no further payments on account of the awards under the convention of the 25th of April, 1866. That republic is understood to be now almost, if not quite, tranquillized. It is hoped, therefore, that it will lose no time in providing for the unpaid balance of its debt to the United States, which, having originated in injuries to our citizens by Venezuelan authorities, and having been acknowledged, pursuant to a treaty, in the most solemn form known among nations, would seem to deserve a preference over debts of a different origin and contracted in a different manner. This subject is again rocommended to the attention of Congress for such action as may be deemed proper.

Our treaty relations with Japan remain unchanged. An imposing embassy from that interesting and progressive nation visited this country during the year that is passing; but being unprovided with powers for the signing of a convention in this country, no conclusion in that direction was reached. It is loped, however, that the interchange of opinions which took place during their stay in this country has led to a mutual appreciation of the interests which may be promoted when the revision of the existing treaty shall be undertaken.

In this connection I renew my recommendation of one year ago, that, " to give importance and to add to the efficiency of our diplomatic relations with Japan and China, and to further aid in retaining the good opinion of those peoples, and to secure to the United States its share of the commerce destined to flow between those nations and the balance of the commercial world, an appropriation be made to support at least four American youths in each of those countries, to serve as a part of the official family of our ministers there. Our representatives would not even then be placed upon an equality with the representatives of Great Britain and of some other powers. As now situated, our representatives in Japan and China have to depend, for interpreters and translators, upon natives of those countries, who know our language imperfectly, or procure for the occasion the services of employés in foreign business-houses, or the interpreters to other foreign ministers."

I renew the recommendation made on a previous occasion, of the transfer to the Department of the Interior, to which they seem more appropriately to belong, of all the powers and duties in relation to the Territories with which the Department of State is now charged by law or by custom.

Congress, from the beginning of the Government, has wisely made provision for the relief of distressed seamen in foreign countries. No similar provision, however, has hitherto been made for the relief of citi. zens in distress abroad, other than seamen. It is understood to be customary with other governments to anthorize consuls to extend such relief to their citizens or subjects in certain cases. A similar authority, and an appropriation to carry it into effect, are recommended in the case of citizens of the United States destitute or sick under such circumstances. It is well known that such citizens resort to foreign countries in great numbers. Though most of them are able to bear the expenses incident to locomotion, there are some who, through accident or otherwise, become penniless, and have no friends at home able to succor them. Persons in this situation must either perish, cast themselves, upon the charity of foreigners, or be relieved at the private charge of our own officers, who usually, even with the most benevolent (lispositions, have nothing to spare for such purposes.

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Should the authority and appropriation asked for be granted, care will be taken so to carry the beneficence of Congress into effect that it shall not be unnecessarily or unworthily bestowed.

TREASURY.

The moneys received and covered into the Treasury during the fiscal year ended June 30, 1872, were: From customs....

$216, 370, 286 77 From sales of public lands

2,575, 714 19 From internal revenue...

130,642, 177 72 From tax on national bank circulation, &c

6,523, 396 39 From Pacific Railway companies....

749, 861 87 From customs fines, &c...

1, 136, 442 34 From fees, consular, patent, land, &c...

2, 281, 095 92 From miscellaneous sources..

4,412, 234 71

Total ordinary receipts ... From premium on sales of coin...

364, 694, 229 91

9,412, 037 65

374, 106, 867 50

Total net receipts ...
Balance in Treasury June 30, 1871, (including $18,228.35 received from

“ unavailable") ....

109,935, 705 59

Total available cash...

484,042, 573 15

The net expenditures by warrants during the same period were: For civil expenses......

$16, 187, 059 20 For foreign intercourse

1,839, 369 14 For Indians...

7,061, 728 82 For pensions....

28, 533, 402 76 For military, establishment, including fortifications, river and harbor improvements, and arsenals....

35, 372, 157 20 For naval establishment, including vessels and machinery and improvements at navy-yards.....

21, 249, 909 99 For miscellaneous civil, including public buildings, light-houses, and collecting the revenue..

42,958, 329 08 For interest on the public debt..

117, 357, 839 72

Total, exclusive of principal and premium on the public debt... 270,559, 695 91 For premium on bonds purchased

$6,958, 266 76 For redemption of the public debt.

99, 960,253 54

106,918, 320 30

Total net disbursements... Balance in Treasury June 30, 1872.

377, 478, 216 21 106, 561, 356 94

Total.

484,042, 573 15

From the foregoing statement it appears that the net reduction of the principal of the debt during the fiscal year ending June 30, 1872, was $99.960,253.54.

The source of this reduction is as follows: Not ordinary receipts during the year...

$361,094, 299 91 Net ordinary expenditures, including interost on the public debt..... 270,559, 695 91

91, 131,531 00

Leaving surplus revenue......
Add amount received from preinium on sales of gold, in excess of the

premium paid on bonds purchased....
And the amount of the reduction of the cash balance at the close of

the year, accompanied with saino at commencement of the year....

2, 451, 370 89

3, 371, 348 05

Total......

99, 900, 253 54

This statement treats solely of the principal of the public debt.

By the monthly statement of the public debt, which adds together the principal, interest due and unpaid, and interest accrued to date, not due, and deducts the cash in the Treasury as ascertained on the day of publication, the reduction was $100,544,491.28.

The source of this reduction is as follows: Reduction in principal account......

$99,960,003 54 Reduction in unpaid interest account.

3,330,952 96

Reduction in cash on hand...

103,290,936 50

2,746,465 22

100,514,491 28

On the basis of the last table the statements show a reduction of the public debt, from the 1st of March, 1869, to the present time, as follows:

From March 1, 1869, to March 1, 1870.....
From March 1, 1870, to March 1, 1871.
From March 1, 1871, to March 1, 1872..
From March 1, 1872, to November 1, 1872, (eight months)..

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Total...

363, 696 999 87

With the great reduction of taxation by the acts of Congress at its last session, the expenditure of the Government in collecting the rer. enne will be much reduced for the next fiscal year. It is very doubtful, however, whether any further reduction of so vexations a burden upon any people will be practicable for the present. At all events, as a

. measure of justice to the holders of the nation's certificates of indebtedness, I would recommend that no more legislation be had on this subject, unless it be to correct errors of omission or commission in the present laws, until sufficient time has elapsed to prove that it can be done and still leave sufficient revenue to meet current expenses of Government, pay interest on the public debt, and provide for the sinking-lund established by law. The preservation of our national credit is of the highest importance; next in importance to this comes a solemn duty to provide a national currency, of fixed, unvarying value, as compared with gold, and as soon as practicable, having due regard for the interests of the debtor class, and the vicissitudes of trade and commerce, convertible into gold at par.

WAR DEPARTMENT.

The report of the Secretary of War shows the expenditures of the War Department for the fiscal year ending June 30, 1871, to be $35, 799,991.82, and for the fiscal year ending June 30, 1872, to be $35,372,157.20, showing a reduction in favor of the last fiscal year of $127,831.62.

The estimates for military appropriations for the next fiscal year, ending June 30, 1874, are $33,801,378.78.

The estimates of the Chief of Engineers are submitted separately for fortifications, river and harbor improvements, and for public buildings and grounds, and the Washington aquoduct.

The affairs of the Freedmen's Bureau have all been transferred to the War Department, and regulations have been put into execution for the speedy payment of bounty, pay, &c., due colored soldiers, properly coming under that burcan. All war accounts, for money and property, prior to 1871, have been examined and transmitted to the Treasury for final settlement.

During the fiscal year there has been paid for transportation on railroads $1,300,000, of which $800,857 was over the Pacific railroads; for transportation by water $626,373.52, and by stage $18,975.81; for the purchase of transportation animals, wagous, hire of teamsters, &c., $924,650.64.

About $370,000 have been collected from Southern railroads during the year, leaving about $1,000,000 still due.

The Quartermaster has examined and transmitted to the accounting officers for settlement, $367,172.72 of claims by loyal citizens for quartermasters' stores taken during the war.

Subsistence supplies to the amount of $89,018.12 have been issued to Indians.

The annual average mean strength of the Army was 24,101 white, and 2,194 colored soldiers. The total deaths for the year reported, were 367 white and 5t colored.

The distribution of the Medical and Surgical History of the War is yet to be ordered by Congress.

There exists an absolute necessity for a medical corps of the full number established by act of Congress of July 28, 1866 ; there being now fifty-nine vacancies, and the number of successful candidates rarely exceeds eight or ten in any one year.

The river and harbor improvements have been carried on with energy and economy. Though many are only partially completed, the results have saved to commerce many times the amount expended. The increase

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