The Secretary of the Treasury in his report favors legislation looking to an early return to specie payments, thus supporting views previously expressed in this message.  He also recommends economy in appropriations; calls attention to the loss of revenue from repealing the tax on tea and coffee, without benefit to the consumer; recommends an increase of 10 cents a gallon on whisky, and, further, that no modification be made in the banking and currency bill passed at the last session of Congress, unless modification should become necessary by reason of the adoption of measures for returning to specie payments.  In these recommendations I cordially join.

I would suggest to Congress the propriety of readjusting the tariff so as to increase the revenue, and at the same time decrease the number of articles upon which duties are levied.  Those articles which enter into our manufactures and are not produced at home, it seems to me, should be entered free.  Those articles of manufacture which we produce a constituent part of, but do not produce the whole, that part which we do not produce should enter free also.  I will instance fine wool, dyes, etc.  These articles must be imported to form a part of the manufacture of the higher grades of woolen goods.  Chemicals used as dyes, compounded in medicines, and used in various ways in manufactures come under this class.  The introduction free of duty of such wools as we do not produce would stimulate the manufacture of goods requiring the use of those we do produce, and therefore would be a benefit to home production.  There are many articles entering into “home manufactures” which we do not produce ourselves the tariff upon which increases the cost of producing the manufactured article.  All corrections in this regard are in the direction of bringing labor and capital in harmony with each other and of supplying one of the elements of prosperity so much needed.

The report of the Secretary of War herewith attached, and forming a part of this message, gives all the information concerning the operations, wants, and necessities of the Army, and contains many suggestions and recommendations which I commend to your special attention.

There is no class of Government employees who are harder worked than the Army—­officers and men; none who perform their tasks more cheerfully and efficiently and under circumstances of greater privations and hardships.

Legislation is desirable to render more efficient this branch of the public service.  All the recommendations of the Secretary of War I regard as judicious, and I especially commend to your attention the following:  The consolidation of Government arsenals; the restoration of mileage to officers traveling under orders; the exemption of money received from the sale of subsistence stores from being covered into the Treasury; the use of appropriations for the purchase of subsistence stores without waiting for the beginning of the fiscal year