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Eterally to lessen our receipts; indeed it is proba
Die that the dlminntion resulting from the las
cause alone, will not fall short of five millions
OF dollars In the year 1912 as the final reduction
OF all duties to twenty per cent then takes effect.
The whole revenue then accrUing from the Gus
toms, and from the sales of public lands if not
more Will undoubtedly be wanted to defray the
necessary expenses Of the Government under the
most prudent administration of its affairs
These are circumstances that impose the necessi-
ty of rigid economy, and require its prompt and
constant exercise. With the Legislature rest
the power and duty of so adjusting the public
expenditure as to promote this end. BY the
provisions OF the Constitution, it is only in con-
sequence OF appropriations made by the law, that
money can be drawn from the Treasury; no in-
stance has occurred since the establishment ofthe
Government in which the Executive, though
component part of the Legislative power, has
Interposed an objection to an appropriation bill
on the sole ground of its extravaganza His
duty in this respect has been considered fulfilled
by requesting such appropriations only as the
pubic service may be reasonably expected to
require. In the present earnest direction of the
public mind towards this subject both the Ex-
ecutive and the Legislature have evidence of the
strict responsibility 10 which they will be held
and while am conscious of my own anxious
efforts to perform with fidelity this portion of my





able to count on a cordial cooperation from
you


At the time l entered upon my present duties
our ordinary disbursements-without including
hose on account of the public debt, the Post
Office, and the trust funds in charge OF the Gov
ernment-had been largely increased by appro-
priations for the removal of the Indians, for re-
pellng Indian hoslililies, and for other less ur-
gent expenses which grew out of an overfnwing
Ind tOf III H.
public debt and trusts, the gross expenditures of
seventeen and eighteen million in 1884 and I835
had, by these causes, yelled to twenty-nlne
millions in 1886; and the appropriations for 1887
made previously to the fourth OF March, caused
the expenditure rise to the very largert amount
ofthrty-three millions We were enabled dur
ing the year 1888, notwithstanding the continu
ance OF our Indian embarrassments, somewhat
to reduce this amount; and that for the present
year. 1889, will not in all probability exceed
twenty-six milions-or six millions less :hln it
was last year. With determination so far as
depends me to continue this reduction, have
directed the estimates for lS40 10 be sub jected
to the severest scrutiny, and to be limited TO the
absolute requirements of the public service-l
They will be found less than the expenditures OF
1889 by over five millions of dollars.


The precautionary measures which will be
recommended by the Secretary oil the Treasury





fluctuations and contingencies to which re-
ceipts and expenditures exposed, and espec-
ally in commercial crisis like the present, are
commended to your early attention.


On a former occasion your attention was in
vited to various considerations in support of pre-
emption law in behalfo the settlers the public
lands and also of law graduating the prices for
such lands as had long been in the market unsold,
in consequence of their inferior quality The ex-
of the act which ma SSsd on the first
subject has been attended with the happiest conse
quences. in quieting titles, and securing improve
ments 10 the industrious J and it has also, TO
very gratifying extent, been exempt from the
frauds which were practised under previous pre-
emption law. 1t has, at the same time, was
contributed literally during the pre-
sent year to the receipts of the Treasury


The passage of a graduation law. with the
guards before recommended, would also, | am
persuaded, add considerably to the revenue for
several years, and prove in other respects just
and beneficial.


Your early consideration of the subject is,
therefore, once more earnestly requested.


The present condition of the defences of our
prnci pal seaports and navy yards, as represent
ed bv the accompanying report Of the Secretary
OF War; calls for the early and serious attention
of Congress; and, as connecting itself intimate
ly with this subject. cannot recommend too
strongly TO your consideration the plan submit
ted by that officer for the organization Of the
militia of the United States.


In conformity with the expressed wishes of
Congress. an attempt was made in the spring
to terminate the Florida war by negotiation
Il is to be regretted that these humane intentions
should have been frustrated. and that the effort
to bring these unhappy difficulties to a satisfac-
tory conclusion should have failed. But, after
enlering into solemn engagements with the
Commanding General the Indians. without any
provocation recommended their acts of treachery
and murder. The renewal Of hostilities in that.
Territory renders it necessary that ] should
recommend to your favorable consideration the
plan which will be submitted 10 you by the Sec
reary of War, in order to enable that depart
ment to conduct them to a successful issue


Having had an opportunity of personally IN
specting portion of the troops during the last
summer, i. gives me pleasure to bear testimony
to the success OF the effort to improve their dis
cipline, by keeping them together In as large
bodies rs the nature of our service Will permit
recommend, therefore. that commodlous and
permanent barracks be constructed at the sever
al posts designated by the Secretary OF War
Notwithstanding the high state OF their discl-


