The legislation of the last session effected in the diplomatic and consular service certain changes and reductions which have been productive of embarrassment. The population and commercial activity of our country are steadily on the increase, and are giving rise to new, varying, and often delicate relationships with other countries. Our foreign establishment now embraces nearly double the area of operations that it occupied twenty years ago. The confinement of such a service within the limits of expenditure then established is not, it seems to me, in accordance with true economy. A community of 60,000,000 people should be adequately represented in its intercourse with foreign nations.
A project for the reorganization of the consular service and for recasting the scheme of extraterritorial jurisdiction is now before you. If the limits of a short session will not allow of its full consideration, I trust that you will not fail to make suitable provision for the present needs of the service.
It has been customary to define in the appropriation acts the rank of each diplomatic office to which a salary is attached. I suggest that this course be abandoned and that it be left to the President, with the advice and consent of the Senate, to fix from time to time the diplomatic grade of the representatives of this Government abroad as may seem advisable, provision being definitely made, however, as now, for the amount of salary attached to the respective stations.
The condition of our finances and the operations of the various branches of the public service which are connected with the Treasury Department are very fully discussed in the report of the Secretary.
It appears that the ordinary revenues for the fiscal year ended June 30, 1884, were:
From customs — $195,067,489.76
From internal revenue — 121,586,072.51
From all other sources — 31,866,307.65
Total ordinary revenues — 348,519,869.92
The public expenditures during the same period were:
For civil expenses — $22,312,907.71
For foreign intercourse — 1,260,766.37
For Indians — 6,475,999.29
For pensions — 55,429,228.06
For the military establishment, including river and
harbor
improvements and arsenals — 39,429,603.36
For the naval establishment, including vessels, machinery,
and improvements at navy-yards — 17,292,601.44