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the equal good desire of Spain been more hopefully manifested than now.

The government of Spain, by removing the consular tonnage fees on cargoes shipped to the Antilles, and by reducing passport fees, has shown its recognition of the needs of less trammeled intercourse.

An effort has been made during the past year to remove the hinderances to the proclamation of the treaty of naturalization with the Sublime Porte, signed in 1874, which has remained inoperative owing to a disagreement of interpretation of the clauses relative to the effects of the return to and sojourn of a naturalized citizen in the land of origin. I trust soon to be able to announce a favorable settlement of the differences as to this interpretation.

It has been highly satisfactory to note the improved treatment of American missionaries in Turkey, as has been attested by their acknowledgments to our late minister to that government of his successful exertions in their behalf.

The exchange of ratifications of the convention of December 5, 1885, with Venezuela, for the reopening of the awards of the Caracas Commission under the Claims Convention of 1866, has not yet been effected owing to the delay of the Executive of that republic in ratifying the measure. I trust that this postponement will be brief; but should it much longer continue, the delay may well be regarded as a rescission of the compact and a failure on the part of Venezuela to complete an arrangement so persistently sought by her during many years and assented to by this Government in a spirit of international fairness, although to the detriment of holders of bona fide awards of the impugned commission.

I renew the recommendation of my last annual message, that existing legislation concerning citizenship and naturalization be revised. We have treaties with many states providing for the renunciation of citizenship by naturalized aliens, but no statute is found to give effect to such engagements, nor any which provides a needed central bureau for the registration of naturalized citizens.

Experience suggests that our statutes regulating extradition might be advantageously amended by a provision for the transit across our territory, now a convenient thoroughfare of travel from one foreigr: country to another, of fugitives surrendered by a foreign government to a third state. Such provisions are not unusual in the legislation of other countries, and tend to prevent the miscarriage of justice. It is also desirable, in order to reinove present uncertainties, that authority should be conferred on the Secretary of State to issue a certificate in case of an arrest for the purpose of extradition, to the officer before whom the proceeding is pending, showing that a requisition for the surrender of the person charged has been duly made. Such a certificate, if required to be received before the prisoner's examination, would prevent a long and expensive judicial inquiry into a charge which the foreign government might not desire to press. I also recommend that express provision be made for the immediate discharge from custody of persons committed for extradition where the President is of opinion that surrender should not be made.

The drift of sentiment in civilized cominunities toward full recognition of the rights of property in the creations of the human intellect has brought about the adoption, by many important nations, of an International Copyright Convention, which was signed at Berne on the 18th of September, 1885.

Inasmuch as the Constitution gives to Congress the power “to promote the progress of science and useful arts by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries," this Government did not feel warranted in becoming a signatory pending the action of Congress upon measures of international copyright now before it, but the right of adhesion to the Berue Convention hereafter, has been reserved. I trust the subject will receive at your hands the attention it deserves, and that the just claims of authors, so urgently pressed, will be duly heeded.

Representations continue to be made to me of the injurious effect upon American artists studying abroad and having free access to the art collections of foreign countries, of maintaining a discriminating duty against the introduction of the works of their brother artists of other countries; and I am induced to repeat my recommendatiou for the abolition of that tax.

Pursuant to a provision of the diplomatic and consular appro priation act, approved July 1, 1886, the estimates submitted by Secretary of State for the maintenance of the consular service 1 been recast, on the basis of salaries for all officers to whom allowance is deemed advisable. Advantage has been taken to redistribute the salaries of the offices now appropriated for cordance with the work performed, the importance of the

tive duties of the incumbent, and the cost of living at each post. The last consideration has been too often lost sight of in the allowances heretofore made. The compensation which may suffice for the decent maintenance of a worthy and capable officer in a position of onerous and representative trust at a post readily accessible, and where the necessaries of life are abundant and cheap, may prove an inadequate pittance in distant lands, where the better part of a year's pay is consumed in reaching the post of duty, and where the comforts of ordinary civilized existence can only be obtained with difficulty and at exorbitant cost. I trust that, in considering the submitted schedules, no mistaken theory of economy will perpetuate a system which in the past has virtually closed to deserving talent many offices where capacity and attainments of a high order are indispensable, and in not a few instances has brought discredit on our national character and entailed embarrassment and even suffering on those deputed to uphold our dignity and interests abroad:

In connection with this subject I earnestly reiterate the practical necessity of supplying some mode of trustworthy inspection and report, of the manner in which the consulates are conducted. In the absence of such reliable information, efficiency can scarcely be rewarded, or its opposite corrected.

Increasing competition in trade has directed attention to the value of the consular reports printed by the Department of State, and the efforts of the Government to extend the practical usefulness of these reports have created a wider demand for them at home and a spirit of emulation abroad. Constituting a record of the changes occurring in trade and of the progress of the arts and invention in foreign countries, they are much sought for by all interested in the subjects which they embrace.

The report of the Secretary of the Treasury exhibits in detail the condition of the public finances and of the several branches of the Government related to his Department. I especially direct the attention of the Congress to the recommendations contained in this and the last preceding report of the Secretary, touching the simplification and amendment of the laws relating to the collection of our revenues; and in the interest of economy and justice to the Government, I hope they may be adopted by appropriate legislation.

The ordinary receipts of the Government for the fiscal year ended June 30, 1886, were $336,439,727.06. Of this amount $192,905,023.41 was received from customs and $116,805,936.48 from internal reveDue, The total receipts, as here stated, were $13,749,020.68 greater

than for the previous year, but the increase from customs was $11,434,084.10, and from internal revenue $4,407,210.94, making a gain in these items for the last year of $15,841, 295.04—a falling off in other resources reducing the total increase to the smaller amount mentioned.

The expense at the different custom-houses, of collecting this increased customs revenue was less than the expense attending the collection of such revenue for the preceding year by $490,608; and the increased receipts of internal revenue were collected at a cost to the Internal Revenue Bureau $155,944.99 less than the expense of such collection for the previous year.

The total ordinary expenses of the Government for the fiscal year ended June 30, 1886, were $242,483, 138.50, being less by $17,788,797 than such expenditures for the year preceding, and leaving a surplus in the Treasury at the close of the last fiscal year of $93,956,588.56 as against $63,463,771.27 at the close of the previous year, being an increase in such surplus of $30,492,817.29.

The expenditures are compared with those of the preceding fiscal year and classified as follows:

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For the current year to end June 30, 1887, the ascertained receipts up to October 1, 1886, with such receipts estimated for the remainder of the year, amount to $356,000,000.

The expenditures ascertained and estimated for the same period are $266,000,000, indicating an anticipated surplus at the close of the year of $90,000,000.

The total value of the exports from the United States to foreign countries during the fiscal year is stated and compared with the preceding year as follows:

For the year end. For the year end. ing June 30, 1886. ing June 30, 1885.

Domestic merchandise...
Foreign merchandise..
Gold
Silver.

$665,964, 529 00

13, 560, 301 00 42,952, 191 00 29, 511, 219 00

$726,682, 946 00 15,506, 809 00

8, 477, 892 00 33, 753,633 00

The value of some of our leading exports during the last fiscal year, as compared with the value of the same for the year immediately preceding, is here given, and furnishes information both interesting and suggestive:

For the year end. For the year end. ing June 30, 1886. ing June 30, 1885.

Cotton and cotton manufactures

Tobacco and its manufactures • Breadstuffs

Provisions

$219,045, 576 00

30, 424, 908 oo 125, 846, 558 00 90,625, 216 00

$213, 799, 049 00

24, 767, 305 00 160, 370, 821 00 107, 332, 456 00

Our imports during the last fiscal year, as compared with the previous year, were as follows:

1886.

1885.

Merchandise
Gold
Silver..

$635,436, 136 00 $579,580, 053 80

20, 743, 349 00 26,691, 696 oo 17,850, 307 00 16,550, 627 00

In my last annual message to the Congress attention was directed to the fact that the revenues of the Government exceeded its actual needs; and it was suggested that legislative action should be taken to relieve the people from the unnecessary burden of taxation thus made apparent.

In view of the pressing importance of the subject I deem it my duty to again urge its consideration.

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