I have stated that three elements of prosperity to the nation—­capital, labor, skilled and unskilled, and products of the soil—­still remain with us.  To direct the employment of these is a problem deserving the most serious attention of Congress.  If employment can be given to all the labor offering itself, prosperity necessarily follows.  I have expressed the opinion, and repeat it, that the first requisite to the accomplishment of this end is the substitution of a sound currency in place of one of a fluctuating value.  This secured, there are many interests that might be fostered to the great profit of both labor and capital.  How to induce capital to employ labor is the question.  The subject of cheap transportation has occupied the attention of Congress.  Much new light on this question will without doubt be given by the committee appointed by the last Congress to investigate and report upon this subject.

A revival of shipbuilding, and particularly of iron steamship building, is of vast importance to our national prosperity.  The United States is now paying over $100,000,000 per annum for freights and passage on foreign ships—­to be carried abroad and expended in the employment and support of other peoples—­beyond a fair percentage of what should go to foreign vessels, estimating on the tonnage and travel of each respectively.  It is to be regretted that this disparity in the carrying trade exists, and to correct it I would be willing to see a great departure from the usual course of Government in supporting what might usually be termed private enterprise.  I would not suggest as a remedy direct subsidy to American steamship lines, but I would suggest the direct offer of ample compensation for carrying the mails between Atlantic Seaboard cities and the Continent on American-owned and American-built steamers, and would extend this liberality to vessels carrying the mails to South American States and to Central America and Mexico, and would pursue the same policy from our Pacific seaports to foreign seaports on the Pacific.  It might be demanded that vessels built for this service should come up to a standard fixed by legislation in tonnage, speed, and all other qualities, looking to the possibility of Government requiring them at some time for war purposes.  The right also of taking possession of them in such emergency should be guarded.

I offer these suggestions, believing them worthy of consideration, in all seriousness, affecting all sections and all interests alike.  If anything better can be done to direct the country into a course of general prosperity, no one will be more ready than I to second the plan.

Forwarded herewith will be found the report of the commissioners appointed under an act of Congress approved June 20, 1874, to wind up the affairs of the District government.  It will be seen from the report that the net debt of the District of Columbia, less securities on hand and available, is: