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approved Srd March, 1898, providing for the punishment of frauds committed on the Gov ernuIent of the United States. Either from some defects in the law, or in its administra- tiOn, every effort to bring the accused to tri- al under its provisions proved intellectual, and the Government was driven to the necessity of resOrting to the vague and inadequate pro- visions of the common law. It IS therefore my duty tO call your attention to the laws which have heen passed for the protection Of the Treasury. If, indeed, there be no pro vision by which those who may be unwOrthi' ly entrusted with its guardianship, can be punished for the most fragrant violation of du- ty, extending even tO the most fraudulent appropriation of the public funds to their own use, it is time to remedy SO dangerous an O. mission. Or, if the law has been perverted from its original purposes, and criminals, de- serving 10 be punished under it's provisions. have been rescued by legal subtities, it ought tO Lc made so plain, by amendatOry prOvi- siOns, as to baffie the arts of perversiOn, and accomplish the end of its original enactment.

 In one of the most fragrant cases, the Court decided that the prosecution was barred by the statute which limits prosecution for fraud to two years. h this case, all the evidences of fraud. and indeed all knowledge that a fraud had been committed, were in the pos session of the party accused, and after the two years had elapsed. Surely, the statute ought not to run in favor Ofany man while he retains all the evidences of his crime in his

 own pOssessiOn and, least of all, in favor of

 a public officer who continues to defraud the

 Treasury and c0nceal the transaction, for the

 brief term of two years. would, therefore,

 recommend such an alteration of the law as

 will give the injured party and the Govern

 ment two years after the disclosure of the

 fraud, or after the accused is out of office, to

 commence their prosecution.

 In connexion with this subject, invite the

 attention of Congress to general and minute

 inquiry into the condition of the Govern

 ment, with view to ascertain what offices can be dispensed with, what expenses re- trenched, and what improvements may be made in the organization of its various parts, to secure the proper responsibility of public a. gents, and promote efficiency and justice in all its operations.

 The report of the Secretary of War will make you acquainted with the condition of our Army. Qualifications, Arsenals, and Indian Affairs. The proper discipline fthe Army. the training and equipment of the Mi litia, the education bestowed at West Point, and the accumulation of the means 0fdefence. applicable to the Naval force, will tend to prOlOng the peace we now enjoy, and which every good citizen--mOre especially those who have felt the miseries of even success ful warfare-must ardently desire to perpetu- ate.

 The returns from the subordinate branches of this service, exhibit regularity and order highly creditable to its character; both off cers and soldiers seem imbued with proper sense Of duty, and conform to the restraints

 xls becomes the profession of arms. There is need. however, of further legislation. to obvi ate the inconveniences specified in the report under. consideration to some of which it is proper that should call your particular at i1utTUT.

 The act of Congress, of the sd of March,

 1891, to reduce and fix the military estab- liShment. remaining unexccuted as it regards the command ofone Ofthe regiments of artille- ry, cannot now be deemed a guide to the Ex- ecutve in making the proper appointments An explanatory act, designating the class of officers out of which this grade is to be filled whether from the military list. as existing prI"r to the act of 1891, or from it, as it has been fixed by that act-wOuld remove this It is also important that the laws regulating the pay and emOluments of officers should be more specific than they l 1UW 1TCs 4uUScs tOS eAHUIHtcs U TelatbOD 10 he Paymaster and Surgeon General, assign 0 them an annual salary of two thousand five hundred dollars; but are silent as to allOwan- I :es which in certain exigencts of the service 1 nay be deemed indispensable to the discharge of their duties. This circumstance has been he authority for extending to them various allowances at different times under former ad- 1 but no uniform rule has been | observed on the subject. Similar inconven- encies exist in other cases; in which the con- put upon the laws by the public ac- cOuntants may operate unequally. produce confusion, and expose officers to the odium | of claiming what is not their due.

 IrecOmmend to your fostering care, as one Df the safest means of national defence. the ! Military Academy. This institution has al- | ready exercised the happiest influence upon The moral aud intellectual character of our army; and such of the graduates as. from va rlOus causes. may net pursue the profession | Df arms, will be scarcely less useful as citizens. Their knowledge of the military art will be | advantageonsly employed in the militia ser 'Ice; and,in measure. secure to that class of rOOpS the advantages which, in this respect, | belong tO standing armies.

 l would also suggest review Of the Pen 'IOn law. for the purpose of extending its | 'enetits tO every Revolutionary soldier who | 'ided in establishing our liberties. and who is unable to maintain himself in comfort. These | relics of the War of Independence have