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A Compilation of the Messages and Papers of the Presidents by Grover Cleveland

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Within these limitations a certain reduction should be made in our
customs revenue. The amount of such reduction having been determined,
the inquiry follows, Where can it best be remitted and what articles can
best be released from duty in the interest of our citizens?

I think the reduction should be made in the revenue derived from a
tax upon the imported necessaries of life. We thus directly lessen the
cost of living in every family of the land and release to the people in
every humble home a larger measure of the rewards of frugal industry.

During the year ended November 1, 1885, 145 national banks were
organized, with an aggregate capital of $16,938,000, and circulating
notes have been issued to them amounting to $4,274,910. The whole number
of these banks in existence on the day above mentioned was 2,727.

The very limited amount of circulating notes issued by our national
banks, compared with the amount the law permits them to issue upon a
deposit of bonds for their redemption, indicates that the volume of our
circulating medium may be largely increased through this
instrumentality.

Nothing more important than the present condition of our currency and
coinage can claim your attention.

Since February, 1878, the Government has, under the compulsory
provisions of law, purchased silver bullion and coined the same at the
rate of more than $2,000,000 every month. By this process up to the
present date 215,759,431 silver dollars have been coined.

A reasonable appreciation of a delegation of power to the General
Government would limit its exercise, without express restrictive words,
to the people's needs and the requirements of the public welfare.

Upon this theory the authority to "coin money" given to Congress by the
Constitution, if it permits the purchase by the Government of bullion
for coinage in any event, does not justify such purchase and coinage to
an extent beyond the amount needed for a sufficient circulating medium.

The desire to utilize the silver product of the country should not lead
to a misuse or the perversion of this power.

The necessity for such an addition to the silver currency of the nation
as is compelled by the silver-coinage act is negatived by the fact that
up to the present time only about 50,000,000 of the silver dollars so
coined have actually found their way into circulation, leaving more than
165,000,000 in the possession of the Government, the custody of which
has entailed a considerable expense for the construction of vaults for
its deposit. Against this latter amount there are outstanding silver
certificates amounting to about $93,000,000.

Every month two millions of gold in the public Treasury are paid out for
two millions or more of silver dollars, to be added to the idle mass
already accumulated.

If continued long enough, this operation will result in the substitution
of silver for all the gold the Government owns applicable to its general
purposes. It will not do to rely upon the customs receipts of the
Government to make good this drain of gold, because the silver thus
coined having been made legal tender for all debts and dues, public and
private, at times during the last six months 58 per cent of the receipts
for duties has been in silver or silver certificates, while the average
within that period has been 20 per cent. The proportion of silver and
its certificates received by the Government will probably increase as
time goes on, for the reason that the nearer the period approaches when
it will be obliged to offer silver in payment of its obligations the
greater inducement there will be to hoard gold against depreciation in
the value of silver or for the purpose of speculating.

This hoarding of gold has already begun.

When the time comes that gold has been withdrawn from circulation, then
will be apparent the difference between the real value of the silver
dollar and a dollar in gold, and the two coins will part company.
Gold, still the standard of value and necessary in our dealings with
other countries, will be at a premium over silver; banks which have
substituted gold for the deposits of their customers may pay them with
silver bought with such gold, thus making a handsome profit; rich
speculators will sell their hoarded gold to their neighbors who need it
to liquidate their foreign debts, at a ruinous premium over silver, and
the laboring men and women of the land, most defenseless of all, will
find that the dollar received for the wage of their toil has sadly
shrunk in its purchasing power. It may be said that the latter result
will be but temporary, and that ultimately the price of labor will be
adjusted to the change; but even if this takes place the wage-worker
can not possibly gain, but must inevitably lose, since the price he is
compelled to pay for his living will not only be measured in a coin
heavily depreciated and fluctuating and uncertain in its value, but
this uncertainty in the value of the purchasing medium will be made
the pretext for an advance in prices beyond that justified by actual
depreciation.

The words uttered in 1834 by Daniel Webster in the Senate of the United
States are true to-day:

The very man of all others who has the deepest interest in a sound
currency, and who suffers most by mischievous legislation in money
matters, is the man who earns his daily bread by his daily toil.


The most distinguished advocate of bimetallism, discussing our silver
coinage, has lately written:

No American citizen's hand has yet felt the sensation of cheapness,
either in receiving or expending the silver-act dollars.


And those who live by labor or legitimate trade never will feel that
sensation of cheapness. However plenty silver dollars may become, they
will not be distributed as gifts among the people; and if the laboring
man should receive four depreciated dollars where he now receives but
two, he will pay in the depreciated coin more than double the price he
now pays for all the necessaries and comforts of life.

Those who do not fear any disastrous consequences arising from the
continued compulsory coinage of silver as now directed by law, and who
suppose that the addition to the currency of the country intended as its
result will be a public benefit, are reminded that history demonstrates
that the point is easily reached in the attempt to float at the same
time two sorts of money of different excellence when the better will
cease to be in general circulation. The hoarding of gold which has
already taken place indicates that we shall not escape the usual
experience in such cases. So if this silver coinage be continued we may
reasonably expect that gold and its equivalent will abandon the field of
circulation to silver alone. This of course must produce a severe
contraction of our circulating medium, instead of adding to it.

It will not be disputed that any attempt on the part of the Government
to cause the circulation of silver dollars worth 80 cents side by
side with gold dollars worth 100 cents, even within the limit that
legislation does not run counter to the laws of trade, to be successful
must be seconded by the confidence of the people that both coins will
retain the same purchasing power and be interchangeable at will.
A special effort has been made by the Secretary of the Treasury to
increase the amount of our silver coin in circulation; but the fact
that a large share of the limited amount thus put out has soon returned
to the public Treasury in payment of duties leads to the belief that the
people do not now desire to keep it in hand, and this, with the evident
disposition to hoard gold, gives rise to the suspicion that there
already exists a lack of confidence among the people touching our
financial processes. There is certainly not enough silver now in
circulation to cause uneasiness, and the whole amount coined and now on
hand might after a time be absorbed by the people without apprehension;
but it is the ceaseless stream that threatens to overflow the land which
causes fear and uncertainty.

What has been thus far submitted upon this subject relates almost
entirely to considerations of a home nature, unconnected with the
bearing which the policies of other nations have upon the question. But
it is perfectly apparent that a line of action in regard to our currency
can not wisely be settled upon or persisted in without considering the
attitude on the subject of other countries with whom we maintain
intercourse through commerce, trade, and travel. An acknowledgment of
this fact is found in the act by virtue of which our silver is
compulsorily coined. It provides that--

The President shall invite the governments of the countries composing
the Latin Union, so called, and of such other European nations as he may
deem advisable, to join the United States in a conference to adopt a
common ratio between gold and silver for the purpose of establishing
internationally the use of bimetallic money and securing fixity of
relative value between those metals.


This conference absolutely failed, and a similar fate has awaited all
subsequent efforts in the same direction. And still we continue our
coinage of silver at a ratio different from that of any other nation.
The most vital part of the silver-coinage act remains inoperative and
unexecuted, and without an ally or friend we battle upon the silver
field in an illogical and losing contest.

To give full effect to the design of Congress on this subject I have
made careful and earnest endeavor since the adjournment of the last
Congress.

To this end I delegated a gentleman well instructed in fiscal science
to proceed to the financial centers of Europe and, in conjunction
with our ministers to England, France, and Germany, to obtain a full
knowledge of the attitude and intent of those governments in respect of
the establishment of such an international ratio as would procure free
coinage of both metals at the mints of those countries and our own. By
my direction our consul-general at Paris has given close attention to
the proceedings of the congress of the Latin Union, in order to indicate
our interest in its objects and report its action.

It may be said in brief, as the result of these efforts, that the
attitude of the leading powers remains substantially unchanged since the
monetary conference of 1881, nor is it to be questioned that the views
of these governments are in each instance supported by the weight of
public opinion.

The steps thus taken have therefore only more fully demonstrated the
uselessness of further attempts at present to arrive at any agreement on
the subject with other nations.

In the meantime we are accumulating silver coin, based upon our own
peculiar ratio, to such an extent, and assuming so heavy a burden to be
provided for in any international negotiations, as will render us an
undesirable party to any future monetary conference of nations.

It is a significant fact that four of the five countries composing the
Latin Union mentioned in our coinage act, embarrassed with their silver
currency, have just completed an agreement among themselves that no more
silver shall be coined by their respective Governments and that such as
has been already coined and in circulation shall be redeemed in gold
by the country of its coinage. The resort to this expedient by these
countries may well arrest the attention of those who suppose that we
can succeed without shock or injury in the attempt to circulate upon
its merits all the silver we may coin under the provisions of our
silver-coinage act.

The condition in which our Treasury may be placed by a persistence in
our present course is a matter of concern to every patriotic citizen who
does not desire his Government to pay in silver such of its obligations
as should be paid in gold. Nor should our condition be such as to oblige
us, in a prudent management of our affairs, to discontinue the calling
in and payment of interest-bearing obligations which we have the right
now to discharge, and thus avoid the payment of further interest
thereon.

The so-called debtor class, for whose benefit the continued compulsory
coinage of silver is insisted upon, are not dishonest because they are
in debt, and they should not be suspected of a desire to jeopardize the
financial safety of the country in order that they may cancel their
present debts by paying the same in depreciated dollars. Nor should it
be forgotten that it is not the rich nor the money lender alone that
must submit to such a readjustment, enforced by the Government and their
debtors. The pittance of the widow and the orphan and the incomes of
helpless beneficiaries of all kinds would be disastrously reduced. The
depositors in savings banks and in other institutions which hold in
trust the savings of the poor, when their little accumulations are
scaled down to meet the new order of things, would in their distress
painfully realize the delusion of the promise made to them that
plentiful money would improve their condition.

We have now on hand all the silver dollars necessary to supply the
present needs of the people and to satisfy those who from sentiment wish
to see them in circulation, and if their coinage is suspended they can
be readily obtained by all who desire them. If the need of more is at
any time apparent, their coinage may be renewed.

That disaster has not already overtaken us furnishes no proof that
danger does not wait upon a continuation of the present silver coinage.
We have been saved by the most careful management and unusual
expedients, by a combination of fortunate conditions, and by a confident
expectation that the course of the Government in regard to silver
coinage would be speedily changed by the action of Congress.

Prosperity hesitates upon our threshold because of the dangers and
uncertainties surrounding this question. Capital timidly shrinks
from trade, and investors are unwilling to take the chance of the
questionable shape in which their money will be returned to them, while
enterprise halts at a risk against which care and sagacious management
do not protect.

As a necessary consequence, labor lacks employment and suffering and
distress are visited upon a portion of our fellow-citizens especially
entitled to the careful consideration of those charged with the duties
of legislation. No interest appeals to us so strongly for a safe and
stable currency as the vast army of the unemployed.

I recommend the suspension of the compulsory coinage of silver dollars,
directed by the law passed in February, 1878.

The Steamboat-Inspection Service on the 30th day of June, 1885, was
composed of 140 persons, including officers, clerks, and messengers. The
expenses of the service over the receipts were $138,822.22 during the
fiscal year. The special inspection of foreign steam vessels, organized
under a law passed in 1882, was maintained during the year at an expense
of $36,641.63. Since the close of the fiscal year reductions have been
made in the force employed which will result in a saving during the
current year of $17,000 without affecting the efficiency of the service.

The Supervising Surgeon-General reports that during the fiscal year
41,714 patients have received relief through the Marine-Hospital
Service, of whom 12,803 were treated in hospitals and 28,911 at the
dispensaries.

Active and effective efforts have been made through the medium of this
service to protect the country against an invasion of cholera, which has
prevailed in Spain and France, and the smallpox, which recently broke
out in Canada.

The most gratifying results have attended the operations of the
Life-Saving Service during the last fiscal year. The observance of the
provision of law requiring the appointment of the force employed in this
service to be made "solely with reference to their fitness, and without
reference to their political or party affiliation," has secured the
result which may confidently be expected in any branch of public
employment where such a rule is applied. As a consequence, this service
is composed of men well qualified for the performance of their dangerous
and exceptionally important duties.

The number of stations in commission at the close of the year was 203.
The number of disasters to vessels and craft of all kinds within their
field of action was 371. The number of persons endangered in such
disasters was 2,439, of whom 2,428 were saved and only 11 lost. Other
lives which were imperiled, though not by disasters to shipping, were
also rescued, and a large amount of property was saved through the aid
of this service. The cost of its maintenance during the year was
$828,474.43.

The work of the Coast and Geodetic Survey was during the last fiscal
year carried on within the boundaries and off the coasts of thirty-two
States, two Territories, and the District of Columbia. In July last
certain irregularities were found to exist in the management of this
Bureau, which led to a prompt investigation of its methods. The abuses
which were brought to light by this examination and the reckless
disregard of duty and the interests of the Government developed on
the part of some of those connected with the service made a change of
superintendency and a few of its other officers necessary. Since the
Bureau has been in new hands an introduction of economies and the
application of business methods have produced an important saving to
the Government and a promise of more useful results.

This service has never been regulated by anything but the most
indefinite legal enactments and the most unsatisfactory rules. It was
many years ago sanctioned apparently for a purpose regarded as temporary
and related to a survey of our coast. Having gained a place in the
appropriations made by Congress, it has gradually taken to itself powers
and objects not contemplated in its creation and extended its operations
until it sadly needs legislative attention.

So far as a further survey of our coast is concerned, there seems
to be a propriety in transferring that work to the Navy Department. The
other duties now in charge of this establishment, if they can not be
profitably attached to some existing Department or other bureau, should
be prosecuted under a law exactly defining their scope and purpose, and
with a careful discrimination between the scientific inquiries which may
properly be assumed by the Government and those which should be
undertaken by State authority or by individual enterprise.

It is hoped that the report of the Congressional committee heretofore
appointed to investigate this and other like matters will aid in the
accomplishment of proper legislation on this subject.

The report of the Secretary of War is herewith submitted. The attention
of Congress is invited to the detailed account which it contains of the
administration of his Department, and his recommendations and
suggestions for the improvement of the service.

The Army consisted, at the date of the last consolidated returns, of
2,154 officers and 24,705 enlisted men.

The expenses of the Departments for the fiscal year ended June 30, 1885,
including $13,164,394.60 for public works and river and harbor
improvements, were $45,850,999.54.

Besides the troops which were dispatched in pursuit of the small band of
Indians who left their reservation in Arizona and committed murders and
outrages, two regiments of cavalry and one of infantry were sent last
July to the Indian Territory to prevent an outbreak which seemed
imminent. They remained to aid, if necessary, in the expulsion of
intruders upon the reservation, who seemed to have caused the discontent
among the Indians, but the Executive proclamation[2] warning them to
remove was complied with without their interference.

Troops were also sent to Rock Springs, in Wyoming Territory, after the
massacre of Chinese there, to prevent further disturbance, and
afterwards to Seattle, in Washington Territory, to avert a threatened
attack upon Chinese laborers and domestic violence there. In both cases
the mere presence of the troops had the desired effect.

It appears that the number of desertions has diminished, but that during
the last fiscal year they numbered 2,927; and one instance is given by
the Lieutenant-General of six desertions by the same recruit. I am
convinced that this number of desertions can be much diminished by
better discipline and treatment; but the punishment should be increased
for repeated offenses.

These desertions might also be reduced by lessening the term of first
enlistments, thus allowing a discontented recruit to contemplate a
nearer discharge and the Army a profitable riddance. After one term of
service a reenlistment would be quite apt to secure a contented recruit
and a good soldier.

The Acting Judge-Advocate-General reports that the number of trials by
general courts-martial during the year was 2,328, and that 11,851 trials
took place before garrison and regimental courts-martial. The suggestion
that probably more than half the Army have been tried for offenses,
great and small, in one year may well arrest attention. Of course many
of these trials before garrison and regimental courts-martial were for
offenses almost frivolous, and there should, I think, be a way devised
to dispose of these in a more summary and less inconvenient manner than
by court-martial.

If some of the proceedings of courts-martial which I have had occasion
to examine present the ideas of justice which generally prevail in these
tribunals, I am satisfied that they should be much reformed if the honor
and the honesty of the Army and Navy are by their instrumentality to be
vindicated and protected.

The Board on Fortifications or other defenses, appointed in pursuance of
the provisions of the act of Congress approved March 3, 1885, will in a
short time present their report, and it is hoped that this may greatly
aid the legislation so necessary to remedy the present defenseless
condition of our seacoasts.

The work of the Signal Service has been prosecuted during the last
year with results of increasing benefit to the country. The field of
instruction has been enlarged with a view of adding to its usefulness.
The number of stations in operation June 30, 1885, was 489. Telegraphic
reports are received daily from 160 stations. Reports are also received
from 25 Canadian stations, 375 volunteer observers, 52 army surgeons at
military posts, and 333 foreign stations. The expense of the service
during the fiscal year, after deducting receipts from military telegraph
lines, was $792,592.97. In view of the fact referred to by the Secretary
of War, that the work of this service ordinarily is of a scientific
nature, and the further fact that it is assuming larger proportions
constantly and becoming more and more unsuited to the fixed rules which
must govern the Army, I am inclined to agree with him in the opinion
that it should be separately established. If this is done, the scope and
extent of its operations should, as nearly as possible, be definitely
prescribed by law and always capable of exact ascertainment.

The Military Academy at West Point is reported as being in a high state
of efficiency and well equipped for the satisfactory accomplishment of
the purposes of its maintenance.

The fact that the class which graduates next year is an unusually
large one has constrained me to decline to make appointments to second
lieutenancies in the Army from civil life, so that such vacancies as
exist in these places may be reserved for such graduates; and yet it is
not probable that there will be enough vacancies to provide positions
for them all when they leave the military school. Under the prevailing
law and usage those not thus assigned to duty never actively enter the
military service. It is suggested that the law on this subject be
changed so that such of these young men as are not at once assigned to
duty after graduation may be retained as second lieutenants in the Army
if they desire it, subject to assignment when opportunity occurs, and
under proper rules as to priority of selection.

The expenditures on account of the Military Academy for the last fiscal
year, exclusive of the sum taken for its purposes from appropriations
for the support of the Army, were $290,712.07.

The act approved March 3, 1885, designed to compensate officers and
enlisted men for loss of private property while in the service of the
United States, is so indefinite in its terms and apparently admits so
many claims the adjustment of which could not have been contemplated
that if it is to remain upon the statute book it needs amendment.

There should be a general law of Congress prohibiting the construction
of bridges over navigable waters in such manner as to obstruct
navigation, with provisions for preventing the same. It seems that under
existing statutes the Government can not intervene to prevent such a
construction when entered upon without its consent, though when such
consent is asked and granted upon condition the authority to insist upon
such condition is clear. Thus it is represented that while the officers
of the Government are with great care guarding against the obstruction
of navigation by a bridge across the Mississippi River at St. Paul a
large pier for a bridge has been built just below this place directly in
the navigable channel of the river. If such things are to be permitted,
a strong argument is presented against the appropriation of large sums
of money to improve the navigation of this and other important highways
of commerce.

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