Class _ Book„ \fe^ 1 \ N^ A> .. ^ OUR COUNTRY: Its Present and its Future Prosperity. It has become a trite saying, that Peace hath her victories no less renowned than War. The United States being now at peace with all mankind, and being in the midst of great prosperity, the occasion has seemed to me appropi"iate for a discus- sion of some of those greater problemis of statesmanship, the correct solution of which may tend to give to our government the honored place it should occupy among the nations of the earth, and firmly secure to the generations who shall come' after us 'it the blessings we now enjoy. ■* ^ It is with such a feeling that I beg to suggest that among others, the following subjects should receive the careful consideratfon of the' present Congress, viz : Our Foreign Cotrifnerce, The Inter- Oceanic Canal, Our Navy, Oar Coast Defences. The Tm^trovetnent of the 3Hssissippi River, including an adequate System of Levees, Polygamy in the Territories, Ptiblic Schools, The Revision of the Tariff, And a 3Iodification of the Internal Revenue Latvs. I do not propose to discuss these subjects at length in this communication, but to make a few suggestions on. each. FOREIGN COMMERCE. Foreign Commerce is considered among the nations of the earth an element of strength and of profit. The amount of this traffic enjoyed by the United States is amazingly small, as will be seen by the following statement of the Secretary of the Treasury in his last report: "Of the merchandise brought in at seaboard, lake and river ports during the year, an amount of the value of $133,631,146, was imported in American vessels, and $491,840,269, in foreign. Of the exports of merchandise, an amount of the value of $116,955,324 was shipped in American, and $777,162,714 in foreign vessels. Of the combined imports and exports of merchandise, 16 per cent, only of the total value was conveyed in American vessels; and the amount of transportation to and from our ports in our own vessels, has fallen off one per cent, in the fiscal year i88i,.as com- pared with that of 1880." During the years of the late war, our foreign commerce was swept from the ocean. Since the close of the war but little progress has been made in recovering our former position. The question now is, v hat can be done in that direction 'i The question of subsidizing steamship lines has received the attention of Congress for many years past. The word subsidy has come to mean in this country a sort of a contribution, a payment of money by the Goverr>- ment without receiving an adequate return therefor. It is sometimes called a steal. The word has become obnoxious to the American people, and it is time it was dropped when the question of mail transportation in steamships to foreign ports is under consideration. The future growth and development of this country is (2) i^I:- largely involved in the question of our foreign commerce. Our inland commerce by rail and by water is in a high state of advancement; but, alas for our foreign commerce; what can be done for it? The time has come when the Government should adopt a new policy relative to the transportation of United States mail to foreign countries. In my judgment the wise sj'stem to adopt is as follows, viz: Congress should provide by the necessary legislation that the United States mails shall be carried in Ameri- can bottoms under the United States flag — the steamships to be commanded by citizens of the United States — to all the leadinor commercial centers of the civilized world: The contracts to be let for a term of ten, twelve or fifteen 3'ears to the lowest responsible bidders, the Government reserving the right to increase the service at discretion with said contracting parties by giving due notice; the Govern-' ment to determine as to the size and class of ships to be so employed; payment for such mail service to be made quarterly. I am aware that to carry out a broad and comprehen- sive system of mail service will require an outlay of large sums of money yearly. The question is, will it pay F I answer in the affirmative; I think it will pay, — possibly not in the first decade, but in the second and for all time thereafter. The time has come for this nation to lay aside the narrow policy that was adapted to its prosperity during the earlier years of its existence, including a high protective tariff, and prepare to enter the markets of the world, not only with its agricultural products, but with its manu- factures and the products of its mines. Regular and fre- quent mail service, including a comprehensive money order system to facilitate exchanges, are indispensable in estab- hshing and maintaining foreign traffic. The benefits to be derived from a broad and comprehensive system of mail service are incalculable. The shippers of goods to foreign ports will feel that they are doing business through and with their own people. The flag itself furnishes protection and gives confidence and security to shippers. With our present population of over 50,000,000, aug- mented annually by the natural increase and the enor- mous immigration that is pouring in upon us, which will be largely increased as the years roll on, by the close of the present decade the population will number at least 68,000,000, and by the close of the present century it will without doubt reach 100,000,000. If this vast population, together with all the enginery of production, is to be kept employed, foreign markets for a large per- centage of the productions of the countr}' must be sought out, and there is no time to be lost in laying and carrying into execution plans to meet a condition of things which is sure to come. I am not unmindful of the fact that in this age of tele- graphs, telephones and rapid transit, the markets of the world are gravitating more nearly to the same plane of values. Labor, too, is destined to undergo the same inevit- able changes — not that the labor of this country will speed- ily recede to the price of that of the more densely populated countries, but that as the modern forms of Christian civil- ization shall be extended to those countries, labor will enhance in value in like proportion. We maj' negotiate treaties to restrain the influx of foreign population — especiall}' the Chinese — yet they will come. The Christian missionary is abroad, and wherever he goes the principles of the brotherhood of mankind are taught. These embrace tlie right of man to emigrate to better his condition. We ourselves are the descendants of immi- grants. Therefore wherein exists the right of one nation to say to the overcrowded population of another, your people shall not immigrate to our shores ? The facts are, the right does not exist except as to criminals and paupers, and possiblj' as a measure of self-defense to protect the welfare of our own people and to avert impending danger to our institutions. There is but one practical course left open for this nation to pursue, and that is to meet this great influx of population as they land on our shores, with the spelling- book in one hand and the Bible in the other, and teach them to become God-fearing and law-abiding citizens. I have discussed this question more at length than I intended, but its breadth and magnitude are so vast I could hardly say less and say anything. I am clearly of the opinion that to invest $15,000,000 annually — and more if necessary — in carrying into oper- ation the plan herein set forth, would be a wise and pru- dent investment for the Government to make ; that our in- creased commerce with foreign countries would repay the expenditure and a large percentage of interest thereon be- fore the close of the present century. At the same time the expense would be scarcely felt, as the money would largely (3) be expended among our own people in the construction and equipment of ships for the same service. A mail service once established as herein contemplated, our foreign representatives could facilitate immensely the building up and establishing a profitable trade in the countries to which they are accredited by gathering mar- ket statistics in those countries for publication in this country. I am aware that this is done at the present time to some extent, but as yet it avails but little. We must bring the foreign markets to our ver}' doois by regular and frequent mail service, and by rapid and cheap transportation, and by a reliable and inexpensive money order system. The present is an auspicious time to inaugurate and carry into operation this great and far- reaching enterprise. To carry this plan into operation would be far more beneficial to American commerce and American industries than the famous Navigation Laws were to the commercial and manufacturing industries of England, which were enacted by the Long Parliament, so called, in 1651. There is paid annually about $100,000,000 for the trans- portation of American exports to foreign countries. Of this large sum American ships receive onl)' sixteen per cent., while the balance is paid to foreign ship-owners. Wise legislation will soon change this order of things, and American products will be carried to market in American ships, and this country will share in the profits of this great traffic. The importance of recovering our former position in the tbreign carrying trade cannot well be over- estimated. INTER-OCEANIC CANAL. A glance at the topography of the Western Hemisphere is all that is needed to convince the most skeptical of the great importance of a water-way to connect the two great oceans. This is no new question, but it is one in which the United States has a vital interest, and one in which every commercial nation of the globe has a greater or less interest. The United States being the most deeply interested in this important question should, in my judgment, assume the responsibility of constructing the canal, provided after a careful survey shall have been made it is deemed practi- cable, and provided further that the right of wa}- can be secured by purchase or treaty when the most advantageous locality shall have been determined upon. The cost of making the necessary surveys to determine as to the prac- ticability of constructing the canal would not be large. Negotiations for the purchase of the right of way could progress while the surveys were being made. Ample terri- tory should be secured not onU' for the construction ot the canal but also for its defense. In view of the fact that at no distant day Mexico and the Central American States are likely to become absorbed by the United States, not by conquest but by their own volition, the necessary territory for the construction and defense of the canal could be had at a moderate cost. If the canal is to be opnstructed, it should be of ample capacity to pass readily the largep'jjjclass of ships that are likely to navigate the ocean. Doubtless the right of way and the cost of constructing such a water-way would not exceed $150,000,000. Such a canal as is herein contemplated, once an accomplished fact, would be a good investment for the United States at two or even three times the amount herein stated, as the United States would then hold the key to the commerce of the world. The Commerce of Eastern Asia and Western Europe, as well as that of our own country and South America, would seek a passage through the proposed canal, the route being so much shorter, sater and cheaper. The advantage thus secured would endure for all time. This work once entered upon and prosecuted vigorously doubtless could be completed within the next five or six years. Foreign nations should be permitted to share in the benefits of the canal when completed, for such reasonable consideration as may be agreed upon under treaty stipu- lations. It is true that this is a vast undertaking, but I believe the United States are equal to the task and cannot afford to permit the proposed canal to pass under the control of one or more foreign powers. That it is sure to do so unless this Government assumes its construction and control there is but little reason to doubt. OUR NAVY. The Navy of this country, since the close of the late war, has been permitted to waste away until it is hardly worthy of the name it bears, when compared with that of England and other European States. It is true that thus far we (4) have escaped all harm irom foreign or domestic foes, but is it safe or wise to rely wholly upon our past good fortune for our security in the future ? War may be very remote, yet it may be very near. Prudence would seem to dic- tate, now that we have largely recovered from the desola- tions and burdens of taxation occasioned by the late war, and while the country is prosperous and our revenues are ample, that we should put ourselves in a condition to meet any emergency that may be likely to arise. In view of our extended coasts on the Atlantic, Pacific and the Gulf and our foreign interests and the foreign commerce we now have, and what we may hope to recover by wise and comprehensive legislation, it would seem to be only com- mon prudence and wise foresight to provide a Navy ade- quate to successfully resist the combined attack of any forces that are likely to be concentrated against us. To do less than this would seem to be an act of supineness too hazardous and too perilous to contemplate. OUR COAST DEFENSES. Under modern methods and systems of warfare coast defences may to some extent have tallen into disuse ; at the same time it cannot be regarded as wise and prudent to abandon them altogether. The old system of fortifica- tions doubtless have had their day as a means of adequate defence, but because the old systems have become super- annuated and of no practical utility, is it wise or pru- dent to flatter ourselves that diplomacy will forever here- after supply the place of coast defenses and of navies ? Such a policy would evince a weakness not unlike a far- mer who expects to reap an abundant harvest without plowing or sowing his fields. A great Commercial Nation cannot afford to act upon the theory that, whereas we are now at peace with all Nations and peoples of the earth, therefore, there will be no more war, and therefore, no fur- ther need of coast defenses or navies. The facts are, the ambition and passions of men remain substantially unchanged from age to age. Emergencies may arise in the near future which may bring down upon this Nation the anathemas of the combined Nations of Europe. In the present condition of our coast defenses and of our Nav}^ are we prepared to meet so formidable a foe? Can we adequately defend ourselves? If not, ought we not to put ourselves in such a condition of defense that we may successfully cope with, and banish from our shores any forces which may combine against us? I believe 1 do not over-state the case when I say that to-day we are the most exposed of any Nation of moment on the earth; that there are ships of war now afloat, capable of entering any harbor on our coasts and of destroying our seaports, and the United States would be at this time powerless to defend itself If this be true, is it wise or prudent to continue in this defenseless condition? Does it become us as a Nation to remain thus exposed? It would seem to be the part of wisdom in peace to prepare tor war; to construct adequate defenses along our coasts — the best that modern science and engin- eering skill can provide — at whatever cost it may be. To do less may be an act of supineness which may cost us too dearly. Grave responsibilities relative to these and kindred matters rest upon the law-making power of a great Commercial Nation which they cannot afford to ignore, and certainly which they cannot escape from or evade. Ample resources are at the command of the law- making power of this Nation to provide adequate coast defenses and an adequate Navy. Shall it be done? THE IMPROVEMENT OF THE MISSISSIPPI RIVER. There has been much discussion and some practical work done in the direction of suitably improving this great water-way for the benefit of the commerce that seeks an outlet to the sea. The most noticeable of these improvements is the successful construction of the jetties at the mouth of the Mississippi, where a uniform depth of 26 feet of water has been obtained, and there seems to be no doubt but that this depth will be increased rather than diminished by the action of the water. Many thanks and all honor to Captain Eads and to the Congress that had the wisdom to make the necessary appropriation to carry into operation and to successfully complete this great public improvement. The largest class of ocean steamers and of merchant ships can now pass to and from the port of New Orleans without obstruc- tion or hindrance. This great and important work, so auspiciously com- menced, should be carried forward, and the river so improved that there shall be established a water-way at a depth of 14 feet from New Orleans to St. Louis. There should be included in these improvements an adequate system of levees to protect the alluvial lands of the great (5) Mississippi Valley from being flooded and tliereby^ ren- dered practically useless so far as ao;ricuUure is concerned. The Mississippi River once improved to the depth herein named, cheap transportation would be secured for the vast agricultural products seeking an outlet via New Orleans, and the alluvial lands so reclaimed would add at no distant day immensel}' to the cotton and sugar product of the countr}^. The upper Mississippi should be adequately improved to Minneapolis, also a canal constructed from a point at or near Rock Island to Lake Michigan at or near Chicago, of ample capacity to accomodate the commerce that majf seek an outlet in that direction. The cost of these improvements might possibl}' reach $60,000,000. That the advantages to be derived from them would amply reward the country for the investment there is no manner of doubt. It is doubtless true that the great South-west would share more largely of the benetits of these improvements than tlie more Northerly or Easterl}' portions of the country. If the South-west is rendered more prosperous b}- these improvements, the other portions of the country will share of such prosperity. POLYGAMY. i This abomination has grown to dangerous proportions, and is now so firml}' established in the Great Salt Lake valley that it defies the Federal authorities and disregards the laws of the United States. It now holds the balance of power in the Territory of Utah, and if not checked will soon control Nevada, Montana, and W.\'omina". The Mor- mons now number about 200,000; the yearly accessions to their numbers from all portions of the world are astonish- ingly great. The conflict between polygamists and non-polygamists in this country is no less irrepressible than was the question of freedom and slavery. We must choose the one or the other; the two systems cannot peace- fuU}' exist on this continent. If polygamy is to be suppressed b}- the authorit}- of the United States (and there is no other power tliat can sup- press it), there is no time to be lost in securing the enact- ment of such broad, humane and comprehensive laws as shall prove effective in crushing it out. I venture a tew suggestions as to tb.e legislation required to prove effective and successful in this matter : In the first place, let us consider what is involved in this question that we may be better prepared to deal with it. First, there are about 200,000 polygamists; of this num- ber it is estimated that there are 70,000 children born in plural wedlock, so called. To these children and to the mothers who bore them the abolition of polygamy means a social revolution. These mothers and their children are to become absolved or freed from all allegiance to the hus- band and father in plural wedlock. What is to become of them when the Federal law comes in and severs the relation of husband and wife, or father and chil- dren, though the relation be of plural wedlock ? Who is to care for, and become responsible, for the support of these unfortunate m?!thers and children ? This is a question of great moment, and demands and must receive careful and humane consideration from the Government. In a word, they should become the wards of the Government. The care and maintenance of these mothers and children once solved and fairl}' settled on a wise and humane basis-, all other questions connected with the abolition of poly- gamv may be regarded of easy solution. Let us consider briefly where the responsibility rests for the unfortunate condition of these mothers and for the children born in plural wedlock. This system of polygamy originated in this country under the name of Mormonism, within the memory of many now living. It first concentrated its followers at Nauvoo, Illinois, under the leadership of Joseph Smith. The first temple to Mormonism was built there. They were driven from Nauvoo in the year 1842; thev took up their line of march for the Great Salt Lake valley. When they left Nauvoo they were much distracted and broken up. The Government at that time, with the slightest effort could have exterminated polygamy, but that opportunity was allowed to pass unimproved. The Government not only neg- lected to crush it out at that time, but it has since made poly- gamy honorable by appointing the chief polygamist Gov- ernor of the Territory of Utah and by admitting pol}'gamists to the halls of C'ongress. The Government is itself respon- sible for the condition ot things in Utah and the adjacent territories. Had it performed its duty forty years ago, this abomination would not to-day be a disturbing element in our social and political structure. This question should now be squarely met and solved by the presentgeneration. The method which to my mind (6) will prove the most humane and successful, and on the whole the cheapest, is for the mothers who have borne children in plural wedlock, and the children born in plural wedlock, to become the wards of the Government, to be provided for at the expense of the Government until the children so born shall have arrived at their majority and the mothers shall have settled again in single wedlock or shall have passed away by death. These unfortunate women and children may be provided for on farms to be furnished by the Government, or in communities which may engage in the various departments of manufactures, or the Government may furnish them homes in the farm- ing districts in severalty and grant a pension to each mother with children dependent upon her. Doubtless this last method would be the most practicable and the easiest and cheapest solution of the social problem. These children should have the benefit of a common school education at the expense ot the Government. In the case of orphan children born in plural wedlock, the Government should provide State public schools, embrac- ing a system of cottage homes conveniently located on a farm provided for the purpose, similar to the State Public School in Michigan, which has been in successful operation for some years past as a home for indigent orphan children of the State. The children born in plural wedlock should inherit the name of their fathers respectively as fully as though they had been born in single wedlock. The Government should make ample and liberal pro- vision for these mothers and children, in advance of the time when the law shall come in and sever the relations Avhich now exist, so that when they shall have become absolved or freed from the husbands and fathers in plural wedlock, they shall pass directly under the guardianship of the Government, and be provided for and protected by it, under the provisions herein .contemplated. Much suffering on the part of these unfortunate mothers and children will be obviated by so doing. It will not do for the Government to leave these mothers and children unprovided for and unprotected; such an act on the part of the Government would be bar- barous in the extreme and a disgrace to the Christian name, and to the civilization of the age in which we live. The legislation necessary to the suppression of polyg- amy is a matter about which men will widely differ. It seems to me the wisest plan to adopt is to abolish the present Territorial Government and place the manage- ment of the affairs of the Territory in the hands of a commission of twelve or fifteen good, true and competent men, under the direction of such laws as Congress shall provide. Stringent legislation which shall provide severe punish- ment lor the indulgence in polygamous practices should be enacted. Ample military lorce should be provided to sustain the commission in the enforcement of law. The President should be authorized to proclaim martial law in any district in the Territories where polygamy is prac- ticed, and where the civil authorities are powerless to enforce the laws. If it is contemplated that these people will submit without resistance to surrender their polygamous prac- tices it is a delusion. They will resist to the utmost unless the commission is sustained and supported b}- ample military power to stamp out any incipient rebellion. The details of this work must in the main be left to the wisdom and discretion of the commission appointed to execute the laws Congress may provide. That it will cost large sums of money to provide tor the wards of the Government and to enforce the laws neces- sary to suppress the abomination, there is no doubt, but it should be done at whatever cost of treasure. Should the cost not exceed $10,000,000 annually for the next ten or fifteen years we may esteem ourselves fortunate. The revenues of the Government are ample to provide whatever shall be needed. This is the question of the hour, and the American people demand at the hands of the law-making power such legislation as shall prove effectual in the suppression of the entire system of polygamy in all the Territories. PUBLIC SCHOOLS. Statistics ol the late census furnish unmistakable evidence of a condition of illiterac}' in some portions of our country, which is much to be deplored ; in fact it is alarming when we contemplate the logical sequence of this condition of things. Ignorance as a rule begets vice, crime and revolution. Good government is impossible where ignorance predominates, and more especiall}'^ in a representative and elective Nation like ours. A Govern- ment of the people, by the people, for the people, to be enduring, must rest upon the intelligence and moral (O worth of the people. These premises admitted — and no one will attempt to deny them— it becomes a question of great moment as to the duty and power of the Govern- ment to remedy the conditions of ignorance and illiter- acy herein referred to. A Nation in self-preservation raises armies and equips navies to repel an invading foe or to suppress a rebellion. Nothing more imperils and endangers the stability and perpetuity ol Government than ignorance, and the vice and crime which follow in its train. Therefore, if the national life is worth pre- serving, it is eminently fitting and proper for the Govern- ment to provide in advance against a condition of things which, if permitted to develop, and to extend uninterrupt- i edl}', would sap the very foundations of the Government, and ultimately destroy it. The ignorance which pervades a great mass of the popvilation of this country is a standing menace to the stability and perpetuity of the Government. This state- ment cannot be successfully controverted; the late census establishes this fact beyond all controversy. What, then, is the plain duty of the Government in the premises? It must provide a remedy against the evils which threaten it. This can be successfully accomplished only in one way, and that is by educating the masses at the expense of the public Treasury wherever it is necessary to do so; to expend public moneys in this direction is just as legiti- mate as it is to expend money to raise and equip armies and navies to repel an invading foe or to suppress a rebellion. Ignorance is a foe, more insiduous and more subtle than any and all other dangers combined that now threaten the stability of our institutions. Therefore, it is the plain duty of the law-making power of this Nation to enact such laws and make such appropriations from the public Treasury as shall furnish school accommodations to all persons of school age between .six and sixteen years inclusive, and to make the attendance upon the public schools so established compulsory for a period of not less than six months of each year, unless perhaps excused by competent authority where the labor of such children i is necessary for the support of the aged and indigent. It may be urged that a large portion so appropriated would be expended in the Southern States. If it is most needed there then it should certainly be expended there. There should be no sectional strife or preferences in this matter. Every true American is proud of the fact that we stand to-day an undivided Nation — one flag, one com- mon interest and one common destiny. The education ot the rising generation without distinction of sex, race or color, is a matter of great national importance, to the end that every citizen shall be prepared to perform well and intelligently his duty in a wise use of the franchise con- ferred upon him. The expenditure by the Federal Government ot $15,- 000,000 annuall}', or more it needed for the purposes herein stated, must be regarded by all prudent men as a wise and judicious use ol the public moneys. It ma}^ be claimed that for the Government to enter the field to secure to the rising generation a common school education in the several States and Territories, would be a step toward the centralization of more and greater power in the General Government. While this may or may not be true it certainly is the most direct, simple and inexpensive method that can possibly be adopted to establish on a firm and enduring basis the institutions we all cherish so dearly, a free government by the people; the grandest inheritance ever vouchsafed to man. We have now arrived at a period when the conditions of the country are most favorable for the Government to enter upon this great and all-important work. There is no political strife on sectional animosity. We are more closely allied to-day in feeling and in interests than at any time before in the history of our country. We should know no North, no South, no East and no West in this undertaking, but one country working together for one common good to all. Again, the revenues ot the Government are in a con- dition to warrant the e.xpenditure of whatever money may be necessary to expend from year to year in this direction, and the country is enjoying a high degree of prosperity. Another important factor that should not be overlooked in this connection is the very large and constant^ increasing foreign emigration that is coming to our shores each success- ive year. These foreigners soon become our peers at the ballot box. An educational qualification should determine as to their fitness to wisely exercise political power in a free government. Since there is no educational standard inter- posed for the adult population as to their fitness to use wisely the elective franchise, it is all the more important that the rising generation should receive a common school educa- tion in the common English branches. The machinery (8) for carrying out this great and important undertaking can wisel}' be left for Congress to provide. Doubtless the several State governments whose people should receive substantial aid from the Government in support of its public schools, would so modify their statutes as to work in harmon}- with any system that may be pro- vided by Congress; The constitutional power of Congress to establish an educational standard as a condition to the exercise of the elective franchise in the election of members of Congress and of presidential electors cannot be questioned, and the sooner such conditions are provided the better for the country. Intelligence and moral worth are the great bulwarks of free institutions and a free government. Whatever will strengthen and perpetuate these should not be omitted. THE TARIFF AND REVENUE LAWS. The revision ot the tariff has received much attention h'om Congress for several sessions; it has been widely discussed through the public press, but as yet no com- mon ground of agreement has been reached. While I do not propose to enter the broad lield of tariff discussion, I desire to make a few suggestions that may be of some practical benefit in settling the great questions of providing ample revenue for the support of the Govern- ment in all of its departments and for carrj'ing forward to successful completion the great enterprises which it now seems expedient for it to enter upon. There was collected during the fiscal year ending June 30th, 1881, from cus- toms $198,159,676.02; internal revenue, $135,264,385.51; public lands, $2,201,863.17; miscellaneous sources, $25,- 156,377.87. Total, $360,782,292.57. Total e.xpenditures for the same period, $260,712,887.59, leaving a balance to apply toward the payment of public debt or other purposes of $103,069,409.98. Under the blanket revenue laws enacted in 1864, which imposed a tax on every industry in the land except that of agriculture, there was raised in 1S66, $310,120,448.13, and from customs for the same period $179,046,651.58. During the war, when the Government was in the market to buy a large percentage of the products of the country and was disbursing about $2,000,000 daily', the country could bear this enormous taxation, but after the two great armies had been disbanded and the Government had ceased to disburse these large sums, this heavy taxation rested with crushing weight upon the industries of the country. Under Mr. Johnson's adminis- tration the manner of enforcing; the revenue laws became in many portions of the country exceedingly obnoxious and offensive as well as tyrannical. The tax upon the same materials was not infrequently repeated three, four and five times before it reached its completion in the finished article or fabric. Tiiis heavy taxation and the ofi'en- sive and well-nigh barbarous methods of enforcing the revenue laws, had created universal dissatisfaction in all parts of the country; in fact it threatened the coun- try with bankruptcy, repudiation and ruin. No people on earth, be they ever so loyal, could long endure such a drain upon their resources. In the fall of 1866 there was organized in the City of Detroit, a manufacturer's Associa- tion for self-protection against the offensive and unjust manner of enforcing the revenue laws. In December ot the same year the undersigned was made chairman of a committee on internal taxation as imposed by the Govern- ment. Early in January, 1867, I proceeded to Washing- ton for the purpose of making a careful examination of our own sxstem of revenue, and the systems that had been adopted by the leading governments of Europe. The departments obligingly placed at my disposal abundant information on the subject of revenue. Having made a thorouL^h and careful investigation of the systems ot revenue as applied in this country and by the leading nations of Europe, a report was prepared relieving all the industries of the country producing necessaries of life from all taxation for internal revenue purposes. Careful com- parison and investigation revealed the fact that the sources of revenue, including customs, could \>e reduced to ten which would be reliable, and from which ample revenue could be derived to meet the requirements of the Government, including the sinking fund. Accordingly a report was prepared on this basis which provided for the repeal of the taxes imposed upon all industries producing the necessaries of life, including the tax on sugar and cotton and the obnoxious income tax. The report provided for an increase of fifty per cent, on what was then known as specific taxes, from which there was collected in 1866, $18,000,000; from this source it was proposed to raise $27,000,000; this tax was payable annually. The Committee submitted its report to the Association of (9) Detroit, March 7, 1867. The sweeping reduction of taxes proposed in the report seemed to the Association incom- patible with safety to the revenues of the Government. After full discussion the report was referred back to the commit- tee where it slumbered until the i8th of October of the same year, when it was again considered by the Association and unanimously adopted without the change of a figure. A committee was then appointed with power to call a National convention of manufacturers at such time and place as should be deemed expedient, after consulting with the leading manufacturers of the country. Copies of the report having been distributed freely throughout the country, the proposition to call a National convention met with universal approval. A convention was called to meet in the city of Cleve- land, Ohio, on the iSth and 19th of December, 1867. Twenty-four States responded, the attendance was large and was estimated to represent over $400,000,000 ot capital invested in manufacturing industries. After the convention was organized a committee of two from each State represented was appointed to whom all motions, resolutions and reports relative to the reduction of taxes, should be referred. After full discussions by the committee of the various plans proposed for the reduction of taxes, the report of the Detroit Association was adopted by the committee with but three dissenting votes. The committee reported its action to the convention. After a full and detailed explanation of the report presented by the committee and full discussion of the same, the report was adopted without the change of a figure, with but six dissenting votes. A committee of leading manufacturers was then appointed to lay the report before Congress with a request that prompt action should be had in the reduction of taxes. On the 22d of January following a large convention of New England and Eastern manufacturers was held at Worcester, Mass., at which the report adopted at Cleveland was unanimously adopted without the change of a figure. A committee was also appointed to lay the report before Congress and to ask prompt action in the repeal of taxes. Within sixteen months from the time the report was submitted to the Detroit Association all the taxes upon all the industries of the country producing the necessaries of life (except one or two minor industries), including the tax on sugar and cotton, had been repealed. The relief afforded by this great reduction of taxes at that time, produced, as it were, a rebound from a condi- tion of deep depression and grave apprehension to one of great activity and unexampled prosperity throughout the country. Had a debt paying era ensued instead of a debt contracting era, the calamities which came upon the country in 1873 and continued for six years would have been avoided. But the American idea seems to be to go it strong and go it fast and go as long as you can and take the chances, and they did it. It is much to be desired that this Nation shall learn wisdom from past experience, and that our people will adopt the rule to pay as they go, and thereby avoid a repetition of the exper- ience of the past. Happily we have been favored with abundant crops for the past few 3'ears, and the country is now enjoying a period of unprecedented prosperity. I have always been in favor of a protective tarifi' and am now, but I am not clear that excessive protection is in the long run the best thing for the domestic manufact- urer. A wise and judicious modification of the tariff seems to be a pressing necessity for the general welfare and pros- perity of the manufacturing industries of the country. The advocates of a high tariff' from which may be col- lected all or nearly all the revenues necessary for the support of the Government, and a corresponding reduc- tion of internal revenue ta.xes, seem to have closed their eyes to the fact that excessive protection tends to enhance the cost of the domestic manufacturers, and tliat such increased cost will diminish or preclude the possibilit}' of exporting any surplus products the country may have. Forty years ago a high protective tarifT seemed to be a necessity, happily that period has passed. For the most part the manufacturing industries have reached a point where they can successfully compete with the same class of goods produced in foreign countries; there are exceptions to this rule but they are becoming less year by year. As I have heretofore stated, this Nation has now reached a point when it should prepare to take a position among the manufacturing nations and compete successfully with them in the markets of the world. This cannot be done under a high protective tariff; to fail to revise and reduce our tarifi" is to limit the market of American manufactures to our own country. If we would become permanently prosperous, the manu- facturing industries of the country must gravitate to a plane of cost of production that will enable our surplus (10) products to be put upon foreign markets at a margin of protit. Our population is now over 50,000,000. There was added bj' immigration in 1881, 719,000, besides the natural increase. The immigration to this country will largely increase year by 3'ear. These new comers, together with the natural increase of population, must find employment on the iarm or in the factory. Therefore in process of time, the value of labor in all civilized countries will gravitate to nearly the same plane, and the products of labor will in like manner gravitate to nearl}"^ the same market value. When this period shall arrive protective tarifl" legislation will disappear from our statute books. I think I hazard nothing in the prediction tliat a century hence protective tariff" legislation for revenue purposes will not be found among the statutes of any Nation. Therefore, in a revision of the tariff it would seem wise to diminish rather than increase the revenues to be derived therefrom, which will preclude any material reduction in internal revenue taxes. Possibly it would be an act of simple justice to repeal the bank tax, as the bonds now hypothecated to secure the circulation of the National banks now draw but 3)^ to 4 per cent, interest instead of five or six per cent, as heretofore. Taxation for internal revenue purposes is compara- tively light. It cannot be regarded burdensome, as it is now applied for the most part to luxuries and not to the necessaries of life. Tarifl" duties should always be specific whenever prac- tical to avoid the temptation of fraud by under valuation. EXPORTS AND IMPORTS. The exports for the year ending June 30th, 1S81, were $902,377,346. The imports for the same period were $642,664,628. Showing the balance of trade in favor of the United States to be for the period above named $259,712,718. The imports of gold over exports for the same period was about $62,000,000. The annual gold product of this country is about $36,500,000. The annual silver product about $42,- 100,000. Thus it will be seen that the increase of gold and silver for the period above named was about $140,- 600,000, less the amount used for manufacturing purposes. The amount of National Bank notes outstand- ing at this time is------- $361,014,786 Government notes or greenbacks 346,681,016 Total currency circulation - - - . $707,695,802 Estimated gold and silver coin and bullion in the country, $750,000,000, which, if reduced to coin, would give the countr}' a circulating medium, based on specie of over $1,450,000,000 or over $29 per capita, which is a larger circulation per capita based on specie than has ever been enjoyed by an}' Nation in the history of the world with one exception. Our National Banks afford the safest and the best system of banking ever enjoyed by any Nation in the history of the world. Twent\' 3'ears' experience has demonstrated the fact above stated, and it should not now be disturbed. The benefits the country has derived from it cannot be estimated. To abolish it, would bring upon the country financial ruin. The financial condition of the country is all a prosperous people could ask. The National debt has been reduced to a point where it does not embarass tiie business of the country or impair its credit, in fact no country in the world enjoys a higher or a better credit at home and abroad than the United States. The countr}' is now in a condition where it can wisely and prudently appropriate annually at least sixty per cent, of its surplus revenues to the enterprises herein dis- cussed. It should here be stated and distinctly understood that in entering upon these various enterprises there is no drain upon the resources of the country except the diver- sion of whatever labor may be required to carry them forward to successful completion. The money so appro- priated would for the most part be expended within our own borders, the labor thus employed would be fed and clothed from our own farms and factories, and all the implements and materials used would be furnished by this country. The small amount of tax paid by each inhabitant of the country and so expended would never be felt, yet in a period of twenty j'ears these undertakings may be pushed forward to successful completion. The expenditure of one dollar per annum for each in- habitant of the United States for a period of twenty years will successfully establish mail transportation in American ships with every leading commercial center in the civilized world, and thereby establish a foreign market for the sur- (11) plus products of the country, and also recover at least seventy-five per cent, of the carrying trade, to and from this country and a large percentage of the foreign com- merce now carried on outside of our own country. On the present valuation of the foreign commerce of this country, it would bring to the carr3'ing trade of this country full •'?75,000,ooo annually' which is now being paid to foreign ship owners for carrying American pro- ducts to foreign markets; and as the producing power of this country shall increase, the reward will be correspond- ingly greater year by year. The development of our foreign commerce in the man- ner herein provided, and the markets secured for our pro- ducts, would become in a few years the source of vast and untold wealth to the country. The average expenditure of $15,000,000 annually for a period of twelve or fifteen years will accomplish for the foreign commerce and for the industries of the country all that is contemplated herein. Relative to the inter-oceanic canal it may be urged that the advantages to be derived therefrom are too remote to warrant this generation in expending any money thereon ; the same objection would be equally forcible at any future period. It is not only the duty of a nation to provide for the present generation, but it should make all reasonable provision for the prosperity and welfare of the future. We are to-day reaping bountiful blessings from the wise foresight of those who have gone before us; we should be equally faithful to plan and to build wisely for the generations that are to come after us. The expend- iture of $15,000,000 annuall}' for the next twenty 3'^ears, if so much shall be needed to secure the right of way and to construct this great water-way between the two oceans, would hardly be felt by this nation and would be a lasting benefit to commerce of other nations that shall secure the right to use it by treaty stipulations. Doubtless the most practical and feasible route is via Lake Nicaragua and the San Juan River. The successful completion of this great water-way upon a plan commen- surate with the requirements of the commerce of the world seeking a passage through it, would be an achievement worthy the age in which wc live. To neglect the pre- sent favorable opportunity may prove a national calamity, the magnitude of which cannot now be fully estimated. The present is a most auspicious period in which to enter upon this great and important undertaking. It is a work for a nation to perform and not for individuals to under- take. The construction of adequate coast defenses and the equipment of a navy are the legitimate current expenses ot the Government, and should be treated as such; no estimate of the expenditures required for these purposes is necessary. Our coast defenses should be brougiit to the highest possible perfection. Our nav}- should be made adequate to protect the national interest and the nation's honor at home and abroad. It should not be second to that of any other power. If we would enjoy peace and tranquility, we must be fully equipped for prompt and aggressive warfare. The improvement of the Mississippi River has received much attention; the necessity therefor is brought closely home to every one by the oft repeated overflows which inflict such distressing losses upon the people as have been experienced almost from year to year. A system of levees should be constructed adequate to protect those rich and fertile districts from devastation b}' oft repeated floods. For the purpose of commerce it should be made adequate to meet the requirements thereof, and may properly include the Upper Mississippi and the construction of the Hen- nipin canal to connect the waters of said river near Rock Island with the waters of Lake Michigan at or near Chicago. The expenditure of $5,000,000 annually for ten or twelve years would accomplish this important work. Whatever expenditure may be necessary to suppress the social evil of bigamj' and polygamy in the most humane and effectual manner should be made; the cause of humanity and the nation's honor are involved in this question. Since free institutions and a free government have tor their foundation the ballot in the hands of a free people, it is a question of greatest moment that the ballot should be intelligently cast. This can be successfully accom- plished in no way except through a well organized public school sj'steni throughout all the States and Territories, and where aid is needed from the public treasury to estab- lish and support these schools it should be forthcoming. Tlie expenditure of $15,000,000 annually, or more if neces- sary, to the end that every vote shall be intelligently cast, is a legitimate outla}' to preserve the life of the nation. Attendance upon school for a period of six or eight i '(12) f months annually during the school acre from six to sixteen, should be made compulsory throughout the United States. In this way only can the dangers which ignorance and vice now threaten to our institutions be averted. The expenditure ot $60,000,000 annually, or more if necessary, to carry forward to successful completion these great enterprises would not embarrass the industries of the country, but, on the contrary, would greatly benefit them. When we consider the vast resources of agriculture, of gold and silver mines, of coal and iron, of copper and petroleum, and the vast productive power of the manufac- turing industries of the country, the expenditure proposed would scarcely be felt. The rapid reduction of the national debt has been extremely gratifying, and has established a national credit of which we may well be proud, but the necessity for further rapid reduction does not exist. The present revenues of the Government will provide tor the expenditure herein named and leave an annual balance of $40,000,000 to apply to the further reduction of the national debt. Let us take a retrospect of the past fifty years and see what has been accomplished. The national domain has been greatly extended; State after State has taken its place in our Union, others are now asking admission. The pop- ulation in 1830 was 12,866,020; in 1880 50,^:55,783, and by the close of the present century it will be over 100,000,000. Within the past fift}' years over 100,000 miles of railroad have been constructed and equipped at a cost of over $6,000,000,000. State after State has been populated and is now teeming with a varied industry and with untold wealth. The question of freedom and slavery has been settled at a fearful cost of blood and treasure, but it is settled lor all time. With these vast and rapidly increasing resources, and with almost unlimited powers of production, supplemented by the inventive genius of the people, the undertakings herein proposed seem to be wise and expedient. • If the country could rise to a clear comprehension of the magnitude of the benefits to be derived from a success- ful comptetion of tlie undertakings herein ^vocated, tliere would be no unnecessar}' delay in entering upon them, and no lack of means to push them forward to successful com- pletion. The benefits herein contemplated would not be limited to this generation or to the next, but would extend for ages to come. Labor, the great producing power of the Nation, is equal to the undertakings. Labor brings from the mines, the forests, and the fields, the hidden treasures thereof. It fashions and prepares them for the uses of men. I^abor moves the lever that puts in motion the hidden forces of nature that moves the machinery of the world. Labor purifies the fountains a' 1 channels of human life. Without labor there is neither accumulation nor progress; therefore, all honor to honest, faithful and intelligent labor. A government should plan wisely for the welfare of its labor, in so doing it plans wisely for itself. Wise, broad and comprehensive legislation that shall place this Nation in the front rank in the carrying trade of the world, and shall open foreign markets to receive the surplus products of the country; that shall construct the great water-way to connect the two great oceans, and shall thereby place in the hands of this Nation the key to the commerce of the world; that shall construct adequate coast defenses, and place at the command of this Nation a navy second to that of no other power; that shall set ade- quate bounds to the waters of the great Mississippi River beyond which its waters shall not pass, and shall so improve it as to accommodate well the commerce that seeks an out- let upon its bosom; that shall suppress the great crime and social evil of polygamy ; that shall estabhsh a system of common school education upon a basis so broad and so deep that the ballot in the hands of coming genera- tions shall be intelligently cast and honestl}' counted, •will erect a monument of true statemanship more endur- ing than granite rocks. In so doing it will establish the Nation on foundations that shall endure. A wise and prudent government -forecasts the futur# and provides accordingly. Very respectfully, DAVID M. RICHARDSON. Detroit, Mich., March 28, 1882. i^S^-^ SUPPLEMENT TO PAPER DATED MARCH 28th, 1882. In March last, believing the time was appropriate therefor, I prepared and distributed a paper wherein I endeavored to discuss some of the public questions of great concern to the nation's prosperity. Its kind and candid reception — attested by considerable newspape;: discussion and a large number of letters received by me, has convinced me that the public mind is thoughtful upon the subjects therein considered. Subsequent events have not only confirmed me in the correctness of the arguments therein urged, but a further discussion of the topics has seemed called for. It is with this view that I submit the following for consideration. OUR FOREIGN COMMERCE. According to the report of the Secretary of the Treas- ury for the fiscal year ending June 30th, 1882, the foreign commerce of the country has not improved on that of the preceding year ; but, on the contrary, has fallen behind. As yet Congress has taken no action looking to a change in this order of things, except to appoint a committee to inquire into the cause of the decline of the foreign commerce of the country. The cause, or causes, of such decline may be stated in a single sentence: Govern- ment has imposed unnecessary restrictions and burdens on the foreign shipping of the country, and a heavy pro- tective tariff on all imported materials used in the build- ing and equipment of ships constructed for the purpose of engaging in the foreign carrying ti'ade. Had these restrictions and burdens been removed sixteen years ago, and a drawback allowed equal to the amount of du- ties paid on all materials and equipments entering into the construction and equipment of ships built for the pur- pose of engaging in the foreign carrying trade, it is not unreasonable to suppose that the foreign commerce of the country carried in American ships would now be in a satisfactory condition. In 1866 I submitted a proposition covering the above provisions to the late Senator Fessendeu, chairman of the Committee of Finance. He regarded it with favor, and requested me to present the same to the late Senator Chandler, then chairman of the Committee on Commerce, which was done, and I had several interviews with him on the subject and strongly urged its importance. But the old war Senator was inexorable ; he would not favor anything of the kind, but replied, "Let those who want to engage in building ships to enter the foreign carrying trade do so and take their chances." He would grant no special favors to any one. It was urged before him that under such a ruling he would compel American shippers to build or buy ships in a dear market to compete with those constructed or bought in a cheap market; and that he would never live to see the day when the foreign commerce of the country will be restored to its former magnitude under existing rules and regulations. The result has proved the correct- ness of the argument. The foreign commerce of the country has year by year continued to decline since that time. In the mean time England has taken advan- tage of our letiiargy and has increased her shipping until she now holds 52 per cent, of the foreign carrying trade of the world, while the United States holds less than 16 per cent, of the foreign commerce of our own country. It is reasonable to suppose that England will contest, inch by inch, any and every effort this country may now make to recover its former position in the foreign carry- ing trade. Private enterprise cannot successfully compete with so ('.2^) great odds, notwithstanding Government may remove the burdens and restrictions complained of. The question then arises, shall this country surrender for all time the foreign carrying trade to England and other countries, or will it make an honest, successful effort to recover and to hold its former position? To answer this question in the aflBrmative means a great deal, yet it should be so ans- wered, whatever the cost may be. The first step in this direction should be to remove all unnecessary restrictions and burdens now imposed, and exempt from municipal and state taxation for a period of 20 years all ships engaged in the foreign carrying trade, and all that may hereafter be constructed to engage in the same trade; also, to provide a drawback on all im- ported materials used in the construction and equip- ment of such ships equal to the amount of duties paid thereon. Or to provide for the payment of a reasonable bounty upon the tonnage of the ships, and equipments constructed and furnished from domestic products. All ships so exempted should be manned by American seamen, except where a crew is recruited during a voyage out of the country. It has been urged that the Govern- ment should provide a bounty on all freight transported in American ships to and from American ports; but with the advantages conferred, above suggested, this does not seem necessary or expedient. Relative to mail transportation to foreign countries, I would emphasize the suggestions made last March on this subject. The United States should establish, as soon as practic- able, American steam-ship lines for the transportation of United States mails to the leading commercial centres of the world, said steamships to be commanded and manned by American citizens. Conti'acts for such mail service should be made for a term of ten, twelve or fifteen years, with the lowest responsible bidders, the Government to determine the size and class of ships to be so employed, and the frequency of said service. An outlay of |15,000,- 000 or more annually would soon repay the people for all moneys so expended in freight rates on all outgoing as well as incoming cargoes. As soon as lines shall become established for the transportation of mails, the competi- tion on freights would secure greatly reduced rates. All foreign ships would be compelled to meet the rates made by American lines. A small reduction on the outgoing and incoming cargoes would mor than make up for all moneys paid out for mail transportation and as bounties. The value of exports for the fiscal year ending June 30th, 1881, was $894,118,038; value of imports for the same same period, $625,471,442. Total value of imports and exports for the peiiod above named, $1,519,589,480. A small reduction in freight rates on this merchan- dise covered by this vast sum would more than save to the country the amount paid out for mail transporta- tion to foreign countries. Again, mail transportation once established to leading commercial centres in foreign coun- tries, would furnish regular and frequent facilities for the transportation of merchandise to many points not now accessible except through foreign channels. One thing may be relied on : England will not furnish cheap and regular transportation to American shippers on goods shipped to foreign countries to compete with English goods. On the contrary, we may expect to meet determined hostility to all eflfbrts on our part to put our surplus products into foreign markets. It may be justly stated that the odds is greatly against all manufactured American products seeking a foreign market. Of 555 steamships crossing the Atlantic in 1880, but four carried the American flag. Compare for a moment the foregoing with the follow- ing statement: At the close of 1881 there had been con- structed 249,590 miles of railroads on the globe. Of this 104,831 miles were in the United States. There has been about 16,000 miles of railroad constructed in the United States during the past two years, at a cost of not less than $500,000,000. Railroad building has advanced beyond the growth and needs of the country. Why should so large an amount of capital seek investment in railroads and so small an amount seek investment in foreign com- merce? Contrast the figures of- inland trade with the foreign commerce of the country. Why this great disparity? Foreign commerce, under wise regulations and favorable conditions, is as profitable as inland commerce. The facts are, the legislation of the country has precluded the possi- bility of satisfactory returns on capital invested in the for- eign carrying trade. American shippers have been com- pelled to buy or build their ships in a dear market, and to compete wUh ships built and equipped in a cheap market. This accounts for the meager number of Ameri- can ships engaged in foreign commerce, and the great excess of railroad building throughout the country. (3) Under proper and wise legislation, the great tide of capital that has been flowing for all these years into the construction of railroads, may be turned in the direction of restoring the foreign commerce of the country, and in so doing new and broader markets will be opened to receive the surplus manufactured as well as agricultural products of the country. It has been frequently stated that there is no pressing demand for foreign markets for our surplus manufactured products, and that such suri)lus is very small compared with the amount produced. While this may in a measure be true down to the present time, yet it cannot hold true long from the very nature of things. In 1873 the markets of this country were greatly overstocked with every class of manufactured products. With the great commercial col- lapse came enforced idleness in large proportions for a period of six years. During this time the surplus products of the country became exhausted. We have now had a period of continuous prosperity for three years. The power of production has not only met the current demand for consumption, but the markets have become ovei'stocked to nearly the same extent that they were in 1873. The productive power continues to increase more rapidly than does the consumption. Therefore it must be apparent to every reflective mind that there must soon be found for- eign markets for a large surplus product of the country, or there will soon follow another revulsion and enforced idleness of large and dangerous proportions. To avert this condition of things no time should be lost in restoring as rapidly as may be the foreign commerce of the coun- try, and opening mail transportation to the leading com- mercial centres of the world, paying attention first to the near by neutral markets of Mexico, Central and South America. The importations of these countries in 1880 were about $634,000,000. Of this sum the United States furnished less than $120,000,000. The waste that comes to idle factories, and the loss of time by enforced idleness, and the consequent consump- tion of previous earnings, the anxiety, privation and suffering that follow in the wake of a revulsion like that of 1873 are fresh in the minds of the people, and no eflbrt should be spared to avert the return of that condition of things. OUR NAVY AND COAST DEFENCES. Every lover and well-wisher of his country must de- plore not only the condition of the foreign commerce of the country, but also that of the Navy. It is proper here to ask, What is the real condition of the Navy? Here we have it, just from the lips of the living oracles: Senator Hale, of Maine, commenting upon the naval appropriation bill, June 27th, 1882, stated that the United States had at that time 39 steam vessels in active service, of all grades and kinds^ and over 1,400 commissioned offi- cers. That the British navy, with 341 steam vessels in active service, had between 2,600 and 2,700 line officers in commission. The whole number of vessels upon the regis- ter at the date above named was 146, of which 39 were in active service. But few of the remainder can be made fit for active service. Possibly 65, all told, could be repaired and made fit for duty. From the foregoing statement it will be seen, that while the number of commissioned naval officers is not excessive, the number of sea-worthy ships is far too small. Notwithstanding there has been expended on the navy nearly $300,000,000 since March 4th, 1869, it is not now worthy the name it bears. That there has been great waste and unwarranted profligacy in the expenditures of public moneys in connection with this branch of the public service no one doubts; 'but this should be no bar- rier to creating and maintaining an adequate navy. All the country can now do is to accept the deep humiliation the mal-administration of the past has brought upon it, and to go forward and provide, as best it may, against a repetition of the same. To create a navy equal in efficiency and power to that of England or France is no small undertaking ; yet can j^his country afford to be content with less ? Past experi- ence should teach the people that too much party and too much politics in the management of naval affairs is not conducive to efficiency or economy. The only safe way is to take the construction and equipment of a navy out of politics, and place it in the hands of a uon-partizan com- mission. The work of providing coast defences could wisely be placed under the care and supervision of the same. A commission composed of eight competent, respon- sible and reliable men — men above suspicion, in whom the Government and the people would place full confi- dence, should be created during the present session of Congress. This commission should be composed of six competent, experienced business men, one competent naval (4) engineer, and one competent army engineer. Adequate appropriations should also be made during the present session to enable the commission to commence operations at once. First, to put in order ready for active service whatever there is of the naval skeleton we now have that is worth putting in order; also, to commence the construc- tion of such other ships of war and coast defences as are most required. To provide adequate coast defences and an adequate navy will require ten or twelve years, and will cost from $300,000,000 to $400,000,000. At first thought this may seem an extravagant proposition ; but let us consider what this country has at stake. With the navy in its present con- dition the United States would not dare to exchange shots with the pettiest little warlike kingdom on the globe, and much less with a first-class power. To do so would be to jeopardize the safety of every commercial citj' on the coast, from Portland, to Galveston, and also on the Pacific coast. How long would it take a first-class steel clad man-of- war to destroy $300,000,000 or $500,000,000 <.f property in the city of Boston, New York or Philadelphia ? The prop- erty, once destroyed for lack of sufficient protection on the part of the Government, the Government must assume the responsibility and pay the damagos, whatever they may be. It then becomes a matter of deep Interest to every citizen of the United States us to the degree of pro- tection the Government furnishes to the sea-boara as well as to the shipping interestof the country, whether engaged in foreign commerce or the coastwise traffic. The cost of providing adequate coast defences and an adequate navy, and to maintain the same, is simply the cost of that class of insurance which the Government alone can furnish. It is true, war with this country may be very remote; yet it may be very near. One thing is cer- tain, Ibis nation cannot afford to remain in its present unprotected and helpless condition. There is no excuse whatever for remaining so. The country is in a most prosperous condition; the treasury is overflowing; the people are ready and anxious for the Government to fur- nish every needed protection to all commercial and other interests at home and abroad; but they want tlie money, taken from the people by taxation, wisely and judiciously expended. This the people demand. Again, much is said about the restoration of our for- eign commerce. Capital is timid, and cannot be induced to embark in any enterprise where the risk incurred is in excess of the margin of profit promised. If the Govern- ment would invite capital to engage in foreign commerce, it must put itself in a condition to furnish adequate pro- tection at home and abroad. If Government would pro- mote the exchange of commodities between this and other countries, it must furnish adequate protection to its citi- zens who go abroad to negotiate such exchanges. This cannot be done except through and by the navy. Tiiere- fore, common prudence and ordinary foresight demand that this nation should possess a navy and coast defences that shall not be second to that of any other power on the globe. THE INTER OCEANIC CANAL. The importance of a waterway to connect the two great oceans is receiving increased attention year by year. The bill now pending before Congress is an evidence of this fact. In this bill it is proposed to charter a company composed of well-known gentlemen, citizens of the TJnited States, with one exception. Section second of said bill provides, among other things, that the capital stock of said company shall consist of not less than five hurdred thou- sand, nor more tlian one million of shares, of one hundred dollars each — or, in round numbers, that the capital stock may be $100,000,000 — tlie canal to be constructed via San Juan River and Lake Nicaragua. Section six of said bill provides, among other things, that the Government shall guarantee to said company three per cent, per annum of net profits on the total cost of the canal for a period of twenty years. Section nine of said bill provides, among other things, that the company may charge an aggregate of two dollars and fifty cents per ton weiglit for tonange dues, ton- nage, etc. On a basis of 50c. per ton it would cost $1,000 to pass a ship carrying 2,000 tons tlirough the canal; and at the rate named in the bin U would cost $5,000, which seems extravagant. Allowing that ten sliips of 2,000 tons of freight each should pas? daily through the canal for a year of 300 working .<>.'■ In March, 1882, feeling deeply the importance of a certain course of National policy, the undersigned distributed a paper containing a discussion of some public questions; and again in January, 1883, being reassured of the correctness of the positions originally taken, a Supplement was prepared and distributed. Since then Congress acd the country have taken many stops forward — some in the direction originally advocated. Upon some of the other questions bills are now pending before Congress, and the subjects heretofore considered still occupy the attention of thoughtful men of the country. Sincerely feeling the importance to our future National prosperity of the policy heretofore pre- sented, I am prompted to venture a few additional suggestions which will be stated as briefly as may be. During the reign of King Edward VI., in 1553, the "Lord High Treasurer of England and other grave and wise citizens of London," having at heart the welfare of their country, and grieving at the decay of trade, formed a company of " Merchant Adventurers, for the discovery of lands, territories, isles, and seigneuries unknown and not by the seas and navigations commonly frequented." Six thousand pounds sterling were collected and three ships were bought, put in order, and placed under the command of Sir Hugh Willoughby. Violent gales over- took the squadron and the ships became separated. Rich- ard Chancellor, in charge of the "Bouaventure," lost sight of his comimnions and succeeded in doubling the Holy Cape. An unknown sea lay before him; as he ploughed its stormy waters the mouth of a river and a monastery came in sight; he landed, and learned from some fisher- men that the river was the Northern Dvina, and that he was in the domains of the Great Tsar of Moscow. The Chancellor left his ship near the monastery of St. Michael and made the journey to Moscow, where he deliv- ered to Ivan the Terrible, the letter written in Latin by Edward VI., addressed vaguely "to all the kings and princes and lords, to all the judges of the earth and cap- tains thereof, to any who possesses high authority in all the regions under the universal heaven," asking them to let his subjects have free pass and to entreat them with humanity and kindness. Ivan allowed the Englishmen to buy and sell without let or hindrance. While Richard was at Moscow some Laplanders brought word that they had found, on the west coast of the White Sea, two shijjs at anchor in a bay, and the crew of eighty-three men all dead. It was the missing squadron; Sir Hugh Willoughby was seated at his table with his journal before him. He had perished of cold. The events above chronicled were the beginning of England's aggressive policy in trade and commerce, which she has ]:»ersistently followed for more than three hundred and thirty years. To-day her flag floats upon all the free and navigable waters of the globe. Her manufactured products are found everywhere in the markets of the world. Wherever she has been denied free access to those markets her powerful navy has been brought into requisition, and thereby she has compelled submission. Had England, during all these centuries, depended upon the ships of foreign nations to carry her wares to market, and had she been substantially without a navy, her commerce would have been restricted to very small proportions, and her possessions limited in like manner. England's aggressive policy has been a great blessing, not only to lier own people, but to civilization throughout the world. The policy of England in trade and commerce should teach the people of this country a most valuable lesson. We have no complaint to make against this ag- gressive }3olicy, but would say to the people of this country let not the lessons of England's commercial prosperity be lost upon us. C^) FOREIGN COMMERCE. There are now two bills before Congress which contem- plate legislation looking to the repeal of onerous taxes on the shipping of the country, and for the admission of ship-building material free of duty, and for the purchase of foreign ships and their admission, free of dutj^, and the foreign ships so purchased to receive American register. A broad and comprehensive policy can alone recover the former position occupied by this country in the foreign carrying trade. The nation must apply itself to the task of building up a merchant marine of its own'at whatever necessary cost. The government must make it possible for American capital to put ships afloat built of American material and constructed by American labor, at a cost not to exceed that of the same class of ships built upon the Clyde. To illustrate : a steam ship of 2,000 tons, built upon the Clyde, fully equipped and ready for service, will cost about $300,000. The same class of ships built of American material and constructed by American labor will cost, fully equipped and ready for service, about $400,000. The American capitalist who de- sires to engage in the building of ships to engage in the foreign carrying trade is met at the outset with the odds against him of 33J per cent, in the cost of his ship. He must compete in the same markets at home and abroad for his cargoes, and must accept the same rates for freight that is received by the owner of the foreign ship, or his ship will rot at the docks. American capital will not em- bark in the building of ships to engage in the foreign car- rying trade with this odds against it. But if the governmeat will provide that American ship builders may receive a tonnage bounty that shall equal the excess of cost of the American ship over the ship built upon the Clyde, thereby placing American capital on an equal footing with foreign capital, and with the onerous taxes abolished, there would be an abundance of American capital ready to embark in the building of shijjs to engage in foreign commerce. On the basis above stated $5,000,000 expended in ton- nage bounty would jjut afloat fifty 2,000 ton ships. $5,- 000,000 more expended in like manner would put twenty- five 4,000 ton ships afloat or the equivalent in tonnage. Twenty million dollars expended in tonnage bounty on this basis would put afloat fifty 4,000 ton ships and one hundred 2,000 ton ships, or the equivalent in tonnage. With this amount of shipping owned by American cajiital competition would be sharp and the American shipping interests would establish the freight rates on all out-going and much of the in-coming freights. Should the compe- tition thus inaugurated reduce the freight rates ten per cent., as doubtless it would, the increased price thereafter on all commodities exported in consequence of reduced freight rates would save to this country annually more than ten millions of dollars. To illustrate: if corn is worth 55c. per bushel in Chicago and the freight is 15c. per bushel from Kansas or Ne- braska, corn would bring in those States 40c. per bushel, but if the rate of freight were reduced to 10c. per bushel, corn would then bring in those States 45c. per bushel. The same principle applies to all merchandise exported. There is paid annually over $100,000,000 for the trans- portation of American products to foreign markets. Thus it will be seen that were the Government to in- augurate the policj' of paying tonnage bounties as herein contemplated, the annual saving would be over $10,- 000,000. The Government could thereafter expend ten million dollars annually in tonnage bounties without adding to the burdens of the people, the reduced freight rates on exjjorts being equal to or more than the tonnage bounties so paid. By the expenditure of $100,000,000 in tonnage bounties, as herein contemplated, during the next twelve or fifteen years, it would put afloat two hundred and fifty 4,000 ton ships and five hundred 2,000 ton ships, or the equivalent in tonnage, the bounty being upon the basis of $50 per ton, which doubtless could be reduced from time to time' as the cost of material should decline in price, and methods in ship building should be improved. Ships built with the aid of the Government should be exempt from all Federal, State and municipal taxation for a period of twenty years, and should be subject to be called into the service of the United States at any time when the exigen- cies of the countrj' should demand, and reasonable com- pensation made therefor, less the proportion of tonnage bounty paid thereon. It is believed that this is the only policy by which the country can build up its merchant marine and recover its former position in the foreign carrying trade. By so doing there will soon be saved annually to the people of this country more than $50,000,000, in addition to tlie natural increase of commerce, that is now being paid to foreign shi]> owners for carrying American products to market. (n Tlie iiayineiit of a tonnage bounty, as herein contem- plated, will only afford to the capital invested in foreign commerce the same degree of protection that is now furn- ished to the manufacturing industries of the country through the protective tariif. In carrying this policy into operation there should be created a non-partisan Commission to consist of six com- petent, reliable men, wiiose duty should be to guard well the Government's interest in all shijis built by the aid of tonnage bounty, and to see that the ships so built conform to the conditions upon which Government aid is rendered. The ships so aided sliould be known as United States mail steam ships, and should be employed, so far as the service shall require, in the transportation of United States mails, contracts being let for such service to the lowest responsible bidder. Regular and frequent mail service, in American ships and under the American flag, should be established to the leading commercial centres of the world, as rapidly as tlie conditions of trade and commerce shall warrant, thereby furnishing regular and frequent transportation for the ex- port of .^.merican products to foreign markets. Should there be expended during the next twelve or fifteen years by the Government the sum of $100,000,000 in pa3'ment of tonnage bounties, as herein contemplated, there would be invested during the same period about $300,000,000 additional capital in the building of ships to engage in the foreign carrying trade. To these large sums tiiere would be added annually large amounts for suj)plies and outfits, repairs, etc., nearly all of which would be expended in the markets of our own country. The building up of a merchant marine means the es- tablishment of a large number of ship yards, provided with all the tools and appliances required in the construc- tion and equipment of ships. It means the employment of a vast amount of labor. This labor must be fed from the farms and clothed from the factories, thereby greatly 'benefiting all the industries of the country. The money thus expended would be distributed among our own people, thereby enriching the country and mak- ing it more and more prosperous. OUR NAVY AND COAST DEFENCES. AVhat more can be said than has already been stated on this subject ? The country for the most part is in an exposed and defenseless condition, liable at any time to deep humiliation at home and abroad, without power to resent an insult, or to compel the redress of wrong. This ought not so to be. The aggregate population clustered along the Atlantic seaboard from Maine to Florida is about 5,000,000, while the value of public and private property, within easy and destructive range of a hostile fleet, cannot be far short of $2,000,000,000. The losses that might be inflicted in a few hours, in their present unprotected condition, would ex- ceed more than ten-fold the entire cost of suitable perma- nent defences for the whole country. The Gulf and Pacific coasts are equally defenseless. This is a question in which the whole countrj^ is deeply interested. Whatever calamity or loss may fall upon any portion of the country from lack of suitable defenses must be borne by the whole people. It is a source of great gratification that our country is at peace with all nations. It is to be hoped that this happy state of things may continue, but sometimes the best of friends fall out. The nation should provide ample protection for any emergency that may arise. The present Congress has made a commencement in the right direction which should be vigorously pushed. This country should possess adequate coast defenses and a navy that shall not be excelled in efficiency and power. To provide suitable coast defenses and to construct an adequate navy involves a vast amount of labor and a verj^ large outlay in money. The labor involved in supervising so large an outlay cannot be economically and successfully performed by the ordinary agencies of the Government. Congress should create a Commission which should be non- partisan and composed of eight competent, reliable and res- p(msible men — one naval engineer, one army engineer, and six good, competent and reliable business men, to be nomi- nated by the President and confirmed by the Senate. The term of oiEce to be eight years, the term of one member of the Commission expiring each year. To this Commission should be referred the supervision of the construction of adequate coast defenses, and the construction of a navy, and repair of naval ships under the direction of Congress. Under the direction of such a Commission the construc- tion of coast defenses and the building and repairing of naval .ships would be reduced to a system and great econ- omy and dispatch thereby secured. (4) Considering the defenseless condition of the seaboard, the power and energies of the government should be em- ployed to remedy the existing state of things as speedily as possible. INTER-OCEANIC CANAL. The commercial necessity of a water-way to connect the two great oceans and thereby shorten the water route and diminish freight rates between the east and far west is felt more and more each year. Regardless of the success or failure of M. De Lesseps in his undertaking in tliis direction, the United States should own and control a canal connecting the two great oceans. If the Clayton and Bulwer treaty stands in the way of the Government securing the right of way from the Re- public of Nicaragua and constructing a canal for this pur- pose, it should be abrogated at the earliest practicable moment. According to the estimates of able engineers the canal, via the Nicaragua route can be constructed and equipped at a cost not to exceed $150,000,000, and would require about six jj-ears. The benefits to be derived from the construction of this canal can hardly be estimated. One immediate benefit would be the reduction of freight rates between the eastern and western coasts at least one-half from the present rates by rail, thereby saving many millions of dollars annually to shi2)pers and to the public, and by water the rates would be less than one-third the present rates by rail. The reader is respectfully referred to a more elaborate statement of this question in the Supplement of January, 1883, which is accompanied with a map of the proposed canal. PUBLIC SCHOOLS. The disclosures of the last census returns as to the amount of illiteracy in the country, and more especially in the late slave-holding States, should arouse the people of this country to the great peril that awaits it unless this great evil is remedied. While the illiterate adult population cannot be reached to any considerable extent the Government should see to it that amj^le provision is made for the education of the rising generation. The question of Government aid to public scliools lias been before Congress for several sessions. Two bills for this purpose are now pending, neither of which goes far enough. The sum of $15,000,000 should be annually ap- propriated for this purpose, and diminished according to tiie provisions of the bill after the lapse of ten j-ears. At- tendance upon school should be compulsory for at least ' six montlis of each year of all children of school age, unless there are mitigating circumstances to prevent such attend- ance. To educate two generations of children of school age in the public schools, which would require about twenty years, would establish the jjublic school system on a firm basis in all the States and Territories. Thereafter the several States and Territories could be relied upon to provide liberally for the education of com- ing generations. With an appropriation of $15,000,000 annually by the Government, and a like sum raised by State and local taxation, a rate of compensation could be paid that would command a class of competent and skilled teachers in all parts of the country, thereby raising the standard of edu- cation in all the States. A more legitimate expenditure of public money can hardly be contemplated as affectimg the future welfare and prosperity of the people, and the stability of our institutions. Intelligence, purity and honesty are the chief bulwarks of civil and religious liberty. Whatever will promote these should not be withheld. On page 8 of the Supplement of Januarj^, 1888, will be found a comparative statement in 1870 and 1880 of tlie illiteracy of the population of voting age in the late slave- holding States. INLAND WATERWAYS. The necessity of improving well our rivers and harbors and constructing additional waterway's to accommodate the increasing commerce of thecountrj', is well understood and needs no comment in this connection. POLYGAMY. This abomination is a standing menace to the future peace and welfare of the Republic, and its power is increas- ing each year. Congress has legislp.ted upon it, and a bill is now pending which contemplates a more rigid en- forcement of existing laws, and the elimination of woman suffrage in tlie Territory of Utah, and some other radical changes, but it does not go far enough. (5) The military power of the Government should be em- ployed, if necessary, to secure the enforcement of the laws of the United St;ites and the protection of citizens. Provision should be made for the support of mothers who have borne children in plural wedlock, and for the support, care and education of children born in plural wedlock ; by so doing the solution of this vexed and dangerous question would be greatly facilitated. The expenditure of $5,000,000 annually, or so much as shall be required to suitably care for these unfortunate women and children would be a wise and prudent use of public moneys. For a more complete synopsis of this question the reader is referred to the original paper of March, 1882. QUERY. Can the country afford to enter upon these undertak- ings and expend thereon the amount^of money necessary to carry them forward to completion and success? Are the objects to be attained sufficient to warrant so large an investment? Are the resources of the country sufficient to warrant so large an undertaking, and is its financial condition such as will enable the Government to carry out these un- dertakings without embarrassment to itself and to the business of the country. WHAT IS THE FINANCIAL CONDITION OF THE GOVERNMENT AND OF THE COUNTRY ? The ordinary revenues from all sources for the fiscal j'ear ending June 30, 1883, were ------ $398,287,581 95 The ordinary expenditures for the same period were ----- 265,408,137 54 Leaving a surplus of - - - FISCAL YEAR. 1884. $132,879,444 41 Total receipts, actual and estimated - - $343,000,000.00 Total expenditures for the same period, actual and estimated ----- 258,000,000.00 Balance - 85,000,000.00 This balance must be used in extinguishing the Na- tional debt, or for other wise and judicious^purposes, or taxation must be greatly reduced. It is against the public judgment to reduce the tariff at the present time. The internal revenues are now collect- ed from luxuries, which are proper sources of revenue. A further reduction of the interest bearing debt, which is $1,312,446,050.00, by this generation, seems unwise, and in a degree unjust, as the purposes for which it was created and the blessings thereby attained will be enjoyed by future generations. The balance of the National debt, as it matures, should be funded in long-time bonds, bearing a low rate of inter- est, and carried as a basis of the National Banking System, which is the best ever enjoyed by any country. The law creating the Sinking Fund should be repealed as soon as possible. The payment of the National debt would necessarily abolish the National Banking System, and bring upon the country untold financial complications and embarrassment, and possibly financial ruin. FINANCES. The finances of the country are in most excellent con- dition, as is shown by the following statement of the Sec- retary in his last report to Congress. Gold coin and gold bullion were as follows, viz : United States gold coin - - - - $544,512,699 United States gold bullion - - - 61,683,816 United States silver coin - - - - 235,291,323 United States silver bullion - - - 5,107,911 Total ------- $846,595,749 The National Bank circulation, October 2nd, 1883, was - Government notes or green backs Total currencv - - - - $314,931,557 346,681,016 $661,612,573 Thus it will be seen that the revenues and finances of the Government are in a most satisfactory condition. High water mark of the National debt was reached August 31st, 1865, when it reached, less cash in the treas- ury, $2,756,431,571. The annual interest at that time was about $160,000,000; it has been reduced to $51,500,000. The total non-interest and interest bearing debt, less cash in the treasury Jan. 31st, 1884, was $1,486,083,719. This great reduction of the debt and interest thereon has been made during the past eighteen years. During this time the country has passed through a financial revolution* (6) longer in duration and more destructive in its consequen- ces than has ever been known in its history. INDICATIONS OF PROSPERITY. In 1860 we had 2,044,077 farms, valued at $6,645,045,007. In 1880 the number was 4,008,907, their value, $10,197,- 096,776. The farm implements in 1860 were worth $246,- 118,141; in 1880, $406,820,055, and in the same score of years the jiroduction of cereals has increased more than 100 per cent; from 1,230,000,000 bushels to 2,710,000,000 bushels per annum. There were employed in the factories of the United States in 1860, 1,311,000 hands; and in 1880, 2,719,000. In 1872 the iron product was about 2,000,000 tons; in 1883 it was 5,146,972 tons. The vakie of manufactured products in 1860 was $1,885,000,000, in 1880 it was $5,369,000,000. The build- ing of railroads in this country during the last twenty years is without precedent in the history of the world. Statistics could be multiplied almost indefinitely to show the development of this country. One or two more comparisons must suffice. The aggregate wealth of the country in 1850 was $7,135,780,228, in 1860 it was $16,- 159,616,068, in 1870 it was about $28,000,000,000, in 1880 it was $49,770,000,000. Should the country continue reasonably prosperous, its aggregate wealth will reach $80,000,000,000 in 1890, and by the close of the next decade it is likely to reach the sum of $120,000,000,000, and our population at least 100,000,000. In the light of the jjast experience of this country, and considering the unbounded resources and the great vital energy and enterprise of its peoj^le, and in view of the rapidly increasing demand for wider and broader mar- kets, for its surplus manufactures as well as agricultural products, are the undertakings herein advocated unreason- able, unwise or dangerous? On the contrary, should the country fail to enter upon and carry out these undertak- ings, will it not suffer irreparable loss in the near-by and far-off future, and bring upon itself premature decay? EXPENDITURES REQUIRED. To carry out the undertakings substantially as herein advocated, would require annually, for a term of twelve or fifteen years, except for the construction of the Inter- Oceanic Canal, and that for a period of six years, the fol- lowing sums, viz : For tonnage bounties ----- $10,000,000 For mail service in American ships to leading commercial centres - - - - 5,000,000 F,or the construction of coast defences and an adequate navy ----- 25,000,000 For public schools ----- 15,000,000 For the construction of the Inter-Oceanic Canal 25,000,000 For the improvement of water courses and construction of others - - - - 5,000,000 For the suppression of polygamy in the ter- ritories, possibly ----- 5,000,000 Total - - - $90,000,000 Under favorable and judicious treaties with Mexico, and with the Central and South American States, these neutral markets would furnish almost immediately an out- let for a large amount of our surplus products. These are large countries, with large and increasing populations. Mexico has 741,860 square miles, and a population of 9,656,668. The Central American States have 188,199 square miles, and a population of 2,561,884. The South American States have 6,775,596 square miles, and 27,154,769 population, and 6,551 miles of railroad. Thus it will be seen that we have a population of 39,373,321 just at our very door that should be largely sup- plied from the United States, yet American goods are rarelj' found in these markets. The European States, including Russia, have 4,067,624 square miles, and a population of 353,882,651. With these countries we already have a large commerce, chiefly car- ried on in foreign ships. With American ships making regular and frequent trips in the United States mail serv- ice to these leading commercial centers, it is believed the traffic with these countries would be greatly increased. Africa, the dark continent, is now being explored and ojjened up to the commerce of the world. Its area (includ- ing islands) is 10,941,000 square miles, and a population of 205,000,000. England is looking sharply after this trade. In 1878 she sent 98,000,000 yards of cotton goods to that country, besides large quantities of other articles. The valley of (7) the Congo river, which is not unlike our Mississippi and Missouri rivers, is estimated to contain a population of 50,000,000. Our American Stanley is one of the foremost explorers of that country since the death of Dr. Livingstone. Am- erican enterprise should not fail to secure a fair proportion of the trade of that great country. It is suggestive that England, a few weeks ago, passed, in the House of Commons, a resolution that no nation shall be allowed to acquire permanent rights on the banks of the Congo without her consent. There are about 7,000,000 Christians in Africa, and civilization is advanc- ing rapidly. With the construction of the Inter-Oceanic Canal, via the Nicaragua route, the great markets of Oceanica and Asia would be brought within thirty days' sail by steam of New York. Oceanica is the sixth grand division and has 4,216,000 square miles and 39,200,000 population. The British colonies, a part of Oceanica, contain 3,104,- 958 square miles and 2,749,990 population. This is an English speaking people, and is destined at no dis- tant day to become an independent republic. Mel- Ijourne, the capital of Victoria, has a population of 280,836. Sidnej', tlie capital of New South Wales, has a population of 222,133. These colonies have 4,561 miles of railroads. They have a good public school system and are advancing rapidly. Commerce once opened with these colonies would be- come very large and profitable. ASIA. It has, including Asiatic Russia, 18,340,474 square miles, with 883,700,289 population. With direct communication through the Ijiter-Oceanic Canal, with this great population, the magnitude of the trade and commerce that may be built up and established can only be conjectured ; that if will become very large and profitable does not admit of a doubt. In all this vast country the arts and methods of modern civilization are but poorly understood. In some of the countries of Asia the population is very dense, and life a burden. Among the lower classes ex- treme poverty and abject squalor is the rule. For the most part there are no highways suitable for the passage of vehicles, and but few railroads. With the introduction of the appliances and methods of modern civilization, the condition of the people would rapidly improve, and there would soon be a demand for the manufactured as well as agricultural products of this country. England ships an- nually to India over 400,000,000 yards of cotton goods, and large quantities of other articles. When we consider that India has a population of 252,- 500,000. and China 434,500,000, and .Jaiian 34,338,000, and that for the most part the markets of these great countries are now open to the commerce of the world, it is only reasonable and common prudence for this country to make an effort to share in tlie benefits of tiiis great commerce, and in so doing we may not only enrich and benefit our- selves, but introduce a higher civilization among tiiese teeming millions, and thereby confer u|)on them permanent and far-reaching benefits. In this broad country of bountiful harvests and a super- abundance of everything that pertains to our civilization, we cannot conceive of the condition in which the larger portion of the people of tliese densely-populated countries live. By the introduction of the appliances and meth- ods of modern civilization, tiieir condition would improve rapidly; as civilization advanced their wants would in- crease, and their ability to supjily them would correspond- ingly increase. There are enough broad acres on the face of the earth, and enough sunlight and showers, if properly util- ized, to provide every human being with the neces- saries and comforts of life, even if the population of tiie earth were multiplied many times. EXPORTS AND IMPORTS. The value of exjtorts of domestic n^erchaudise for the year ending June 30, 1883, was $804,223,632. The value of imports of merchandise into the United States for the same period was $723,180,914. Total exports and imports $1,527,404,546. Of the merchandise imported into the United States during the fiscal year 1883, $136,002,290 were brought in American vessels, and $564,175,576 in foreign vessels, and $23,003,048 in railroad cars and other land vehicles. Of the exports of merchandise a balue of $104,418,210 were siiipped in American vessels, and a (8) $094,831,348 in foreign vessels, and $25,089,844 in railroad cars and other laud veliicles. It will be seen from the statistical returns that for many years past of the exports and imjwrts of merchandise, no greater part than an average amount of 16 per cent., has been carried in American vessels. The causes that have produced this great dearth of American ships to engage in the foreign carrying trade are jilain and unmistakable. There has been imposed by the United States, on American shipping, onerous taxes in one form or another which have proved very damaging to the shipping interests ; but the greatest obstacle is the cost of American ships over those built in foreign countries, and especially on the Clyde. As before stated, with a difference of 33J per cent, against American ships, as compared with the cost of ships built upon the Clyde, it is futile to look for any im- jirovement in this direction until some provision shall be made whereby American capital shall be able to put ships afloat at a cost not to exceed that of the same class of ships built abroad. There is no way by which this can be accomplished except by the payment of a tonnage bounty and the repeal of onerous taxes. By the payment of ten million dollars annually, more or less, in tonnage bounties, and by contracting with American ship owners to carry the United States mails in American ships carrying the United States flag, the evil complained of would soon be remedied. One thing maybe relied upon: England will never furnish satisfactory facilities for the transjjortation of Am- erican products to compete with her in the markets that she is now supplying. It may be urged that we could not i)Ut our surplus products upon the foreign markets, except at a loss, had we an abundance of ships afloat. We will cross that bridge when we come to it. Careful investigation has disclosed the fact that in nine out of ten of the manufacturing industries of the country the productive power will, if operated to its average ca- pacity, supply the home market by running eight or nine months in each j'ear. This being the case the factories must be closed from one-third to one-quarter of the time each year. When we consider that there are over 2,719,000 opera- tives employed in these factories, allowing that these factories are idle on an average but three months in each year, there is a loss to these operatives of 203,925,000 days' work. Placing their wages at the low average of one dollar per day it makes a loss to these operatives of $203,925,000 annually. This heavy loss falls upon a class that can ill aff'ord it, a people who depend upon their daily labor for the necessaries and comforts of life, and who, when deprived of labor for a long period, suffer great privation and hardship. The annual loss to the country by enforced idleness is more than one hundred per cent, greater than would be the cost to the Government to enter upon the undertakings herein advocated, and to carry them forward to successful completion, thereby opening up unlimited markets for the surplus products of the country and furnishing continu- ous employment for the people. Enforced idleness affects not only the operatives em- ployed in the factories but vast numbers employed in other industries. Again, these factories become a bill of expense for three months of the year to the owners thereof. Taxes and insurance are running up against them, besides the depreciation which idleness always inflicts upon machinery. The condition of manufacturing industries is not satis- factory. In the iron and steel industrj^ a strike by the operatives of four months' duration in 1882 did not cause any considerable advance in these articles ; the market was abund.antly supplied except in a few lines of goods. The fact is, the country is largely overstocked with manu- factured goods. Where is the remedy to be found for over production ? The power of production is constantly increasing by the introduction of new and inqiroved labor- saving machinery. There is but one answer to this question. We must have broader markets or enforced idleness will .be upon us in large and dangerous proportions. We will here illustrate a point, which will enable us to cross the bridge of high prices when we come to it. A mechanic employed at $3.00 per day, and receiving 200 days employment in a year, will earn $600 ; allowing that the wages of labor employed in all other lines of pro- duction are based on a corresponding plane of prices, when the mechanic that receives $3.00 per day goes into the mar- ket to purchase the necessaries, comforts and luxuries of (^) life, he pays a })rice which corresponds to the price paid to the labor that produces the goods he buys. Suppose the same mechanic receives but $2.00 per day, but is employed 300 daj's in a year, he receives for the year's services $600, and suppose all other classes of labor receive a. correspondingly reduced price, then all articles produced will be correspondingljr cheaper. When the mechanic that receives $2.00 per day, and works 300 daj'S in the year, goes into the market to buy the necessaries, comforts and luxuries of life, he buys in a market where the prices of the goods purchased are corres- pondingly cheaper. Four Inindred dollars earned at $2.00 per day will buy as many necessaries, comforts and lux- uries of life as the $G00 did tlial he earned at $3.00 per day. He has actually made $200 by working at $2.00 per day, and receiving 300 days work in a year. This is a lesson the people of this country have yet to learn, yet they will learn it in time. On a basis of lower prices, the surplus products of this country may go into foreign markets at a margin of profit. When that time comes the labor of the country will buy in a correspondingly lower priced market, and will not suffer thereb}', but will receive continuous employment from year to year, with rare excei)tions. If the farmer buj's his manufactured goods in a low priced market, he can sell his products at a correspondingly cheaper price, and will not suffer thereby. This country is not prepared for free trade at the pre- sent time, but a reduction of 20 or 25 per cent, in the tariff would not deprive us of the home market, and would be a step in the right direction. NATIONAL POLICY. The statements herein made being substantially correct in every particular, it would seem that the future policy to be adopted by the Government and the people is plain and unmistakable. The undertakings herein advocated are broad and far- reaching in tlieir cliaracter, requiring the same line of policy to be followed for a period of fifteen years or more. It cannot succeed as the jiolicy of one party to the exclu- sion of the other. It must become the policy of both political i>artiep, each vieing with the other in their efforts to carry forward these great undertakings to successful completion. BENEFITS TO BE DERIVED THEREFROM. In this connection we will attempt the enumeration of but a few of the chief benefits to be derived from this line of policy. To restore the United States to its former position in the foreign carrying trade, including the increase of the foreign commerce, will require an outlay of at least $600,000,000. Iron steam siiips are chiefly ^required in this service. The construction of so large an amount of tonnage will furnish em[)loyment to a large population. The ore must be taken from its bed, and the coal from the mine, and the iron and steel manufactured therefrom. The timber must be taken from the forests and prepared for its proper use. Every part must be brought to its pro- per place, in the finished and fully equipped ship, all of which must be accomplished at the expense of labor. The proportion of the outlay contemplated to be borne by the Government in tlie payment of tonnage bounties would not exceed $150,000,000, and the balance, $450,000,000, would represent American capital. The construction of adequate coast defences and a navy that shall not be excelled in efficiency and power, doubt- less would cost about $400,000,000. This outlay should be regarded as an ordinary and necessary expenditure of Government for tlie protection of American interests at home and abroad. It is clearly manifest that no consider- able amount of American capital will seek investment in shipping, unless the Government shall provide an ade- quate navy for its protection, nor will manufacturers and merchants risk their merchandise or their lives abroad to any great extent, unless the Government shall be fully pre- pared and able to protect them and their interests. Diplomacy with pen and paper is much to be com- mended ; but such diplomacy will be more likely to suc- ceed when backed by ample power to enforce reasonable and just demands. The construction of the Inter-Oceanic Canal is clearly a wise and prudent National Policy. It involves an out- lay on the part of the Government of about $150,000,000. The construction of this canal would shorten the water (10) route between New York and San Francisco over 10,000 miles, and bring New York within tliirt}' days by steam of the great markets of Australia, Japan, India and China, thereby opening uj) unlimited markets for the surplus jiro- ducts of this country. The ex2:)enditure by the Government of $15,000,000 an- nually in aid of public schools must be regarded as a wise and patriotic foresight. It will tend to make the people in all the States more homogeneous, and unite them in stronger bonds of frater- nal friendship, and establish our institutions on founda- tions that shall endure. The expenditure by the Government of $5,000,000 an- nually, or so mueh thereof as is necessary for the improve- ment of inland waterways and the construction of others, is clearly manifest. The suppression of polygamy is a duty this generation owes to itself and to coming generations, and should be faithfully and 2>rom2)tly performed, at whatever necessary cost. We have clearly shown that the finances and resources and revenues of the country abundantly warrant the Gov- ernment in entering upon these undertakings and carrying them forward to successful completion. In so doing, tliere is not a worker in the mines, or in the forests, or fields, or upon the water, or railroads, or in the shops a.nd factories of this country but will be largely benefited. The money so expended will be distributed broadcast among all the industries of the country. The agricultural, manu- facturing and shipping industries will reaji a bouidifxd reward. The capital of the country will be rendered more profitable and more secure. The money so expended will remain in the country for the most part, therefore there will be no disturbance of our finances. By the adoption of this policy, before the close of the next decade, American shipping will floatupon all the free and navigable waters of the globe, and our manufactured as well as our agricultural products will be found in all of the leading markets of the world, and our flag will com- mand the respect of all the nations of the earth. On the other hand, if a vacillating and half-way policy shall l)e pursued, the enforced idleness that is nowujjon the country which is costing the manufacturing population 203,925,000 days' work annually, which is equivalent to $203,025,000, based on the low average of one dollar per day, will continue to increase from year to year, and the great commonwealth will be dejDrived of this vast sum that should be added to the wealth of the nation. What pen can picture the sorrow, suffering, privation and iieart burnings this line of policy will bring upon the people. It means children dwarfed for the want of food to support their bodies" and pinched for the want of clothing, shelter and fuel to keep them warm. It means that the condition of the manufacturing population will not improve, that the savings accumulated during nine months' employment will be consumed in bridging over three months of idleness each year. No industry can escape the withering blight of enforced idleness in any other branch of industry. A kind Providence has greatly blessed and prospered this nation in the past, and it is believed that by the adoption of a wise, broad, comprehensive and aggressive policy its progress and prosperity in the future may be even greater than in the past, and the cause of Christian civilization greatly promoted throughout the world. In conclusion I would emjshasize the statements sub- stantially as made in mj' original paper of March, 1882, and the Supj^lement thereto of January, 1883. Very respectfully, DAVID M. RICHARDSON. DjiTKOiT, Micii., March 24tli, 1884. X