Chapter 33

2. And for the purpose of establishing in the classified service the principle of compulsory competitive examination for promotion there shall be, so far as practicable and useful, such examinations of a suitable character to test the fitness of persons for promotion in the service, and the Commission may make regulations applying them to any classified Department, customs office, or post-office, under which regulations examinations for promotion shall be conducted and all promotions made; but until regulations made by the Commission in accordance herewith have been applied to a classified Department, customs office, or post-office, promotions therein may be made upon any test of fitness determined upon by the promoting officer. And in any classified Department, customs office, or post-office in which promotions are made under examinations as herein provided the Commission may, in special session, if the exigencies of the service require such action, provide noncompetitive examinations for promotion.

RULE XIX.

There are excepted from examination the following: (1) The confidential clerk or secretary of any head of a Department or office; (2) cashiers of collectors; (3) cashiers of postmasters; (4) superintendents of money-order divisions in post-offices; (5) the direct custodians of money for whose fidelity another officer is under official bond, and disbursing officers having the custody of money, who give bonds; but these exceptions shall not extend to any official below the grade of assistant cashier or teller; (6) persons employed exclusively in the secret service of the Government, or as translators or interpreters or stenographers; (7) persons whose employment is exclusively professional, but medical examiners are not included among such persons; (8) chief clerks, deputy collectors, deputy naval officers, deputy surveyors of customs, and superintendents or chiefs of divisions or bureaus. But no person so excepted shall be either transferred, appointed, or promoted, unless to some excepted place, without an examination under the Commission, which examination shall not take place within six months after entering the service.

RULE XXI.

1. No person, unless excepted under Rule XIX, shall be admitted into the classified civil service from any place not within said service without an examination and certification under the rules, with this exception, that any person who shall have been an officer for one year or more last preceding in any Department or office in a grade above the classified service thereof may be transferred or appointed to any place in the service of the same without examination.

2. No person who has passed only a limited examination under clause 4 of Rule VII for the lower classes or grades in the departmental or customs service shall be appointed or be promoted within two years after appointment to any position giving a salary of $1,000 or upward without first passing an examination under clause 1 of said rule; and such examination shall not be allowed within the first year after appointment.

3. But a person who has passed the examination under said clause 1 and has accepted a position giving a salary of $900 or less shall have the same right of promotion as if originally appointed to a position giving a salary of $1,000 or more.

4. The Commission may at any time certify for a $900 or any lower place in the classified service any person upon the register who has passed the examination under clause 1 of Rule VII, if such person does not object before such certification is made.

5. The provisions of this rule relating to promotions shall cease to be operative in any classified Department, customs office, or post-office when regulations for promotions have been applied thereto by the Commission under the authority conferred by clause 2 of Rule VI.

Approved, May 5, 1887.

GROVER CLEVELAND.

EXECUTIVE MANSION, _Washington, May 9, 1887_.

The executive offices and Departments at the seat of Government, including the public printing establishment, will be closed at noon on Thursday, the 12th instant, to enable persons employed therein to attend the exercises at the unveiling of the statue of the late President Garfield.

And employees in such offices and Departments who desire to accompany any organization to which they belong in the parade or other exercises preceding on that day the unveiling ceremonies may, by permission of the heads of their respective offices or Departments, also be granted such leave of absence as may be necessary for that purpose.

Members of the Society of the Army of the Cumberland desiring to attend any meeting of such society on Wednesday, the 11th instant, may, by special permission of the respective heads of Departments and offices, be excused from duty during the hours on that day as said meetings may be held.

GROVER CLEVELAND.

WAR DEPARTMENT, ADJUTANT-GENERAL'S OFFICE, _Washington, April 30, 1887_.

HON. WILLIAM C. ENDICOTT, _Secretary of War_.

SIR: I have the honor to state that there are now in this office, stored in one of the attic rooms of the building, a number of Union flags captured in action, but recovered on the fall of the Confederacy and forwarded to the War Department for safe-keeping, together with a number of Confederate flags which the fortunes of war placed in our hands during the late Civil War.

While in the past favorable action has been taken on applications properly supported for the return of Union flags to organizations representing survivors of the military regiments in the service of the Government, I beg to submit that it would be a graceful act to anticipate future requests of this nature, and venture to suggest the propriety of returning all the flags (Union and Confederate) to the authorities of the respective States in which the regiments which bore these colors were organized, for such final disposition as they may determine.

While in all the civilized nations of the world trophies taken in war against foreign enemies have been carefully preserved and exhibited as proud mementos of the nation's military glories, wise and obvious reasons have always excepted from the rule evidences of past internecine troubles which by appeals to the arbitrament of the sword have disturbed the peaceful march of a people to its destiny.

Over twenty years have elapsed since the termination of the late Civil War. Many of the prominent leaders, civil and military, of the late Confederate States are now honored representatives of the people in the national councils, or in other eminent positions lend the aid of their talents to the wise administration of affairs of the whole country; and the people of the several States composing the Union are now united, treading the broader road to a glorious future.

Impressed with these views, I have the honor to submit the suggestion made in this letter for the careful consideration it will receive at your hands.

Very truly, yours,

R.C. DRUM, _Adjutant-General_.

[Indorsement.]

WAR DEPARTMENT, _May 26, 1887_.

The within recommendation approved by the President, and the Adjutant-General will prepare letters to governors of those States whose troops carried the colors and flags now in this Department, with the offer to return them as herein proposed. The history of each flag and the circumstances of its capture or recapture should be given.

HON. WILLIAM C. ENDICOTT, _Secretary of War_.

WAR DEPARTMENT, ADJUTANT-GENERAL'S OFFICE, _Washington, June 7, 1887_.

Honorable GOVERNOR OF ----.

SIR: The President of the United States having approved the recommendation that all the flags in the custody of the War Department be returned to the authorities of the respective States in which the regiments which bore them were organized, for such final disposition as they may determine, I am instructed by the honorable Secretary of War to make you, in the name of the War Department, a tender of the flags now in this office belonging to the late volunteer organizations of the State of ----.

In discharging this pleasant duty I beg you will please advise me of your wishes in this matter. It is the intention in returning each flag to give its history as far as it is possible to do so, stating the circumstances of its capture and recovery.

I have the honor to be, very respectfully, your obedient servant,

R.C. DRUM, _Adjutant-General._

EXECUTIVE MANSION, _Washington, June 16, 1887_.

The SECRETARY OF WAR:

I have to-day considered with more care than when the subject was orally presented me the action of your Department directing letters to be addressed to the governors of all the States offering to return, if desired, to the loyal States the Union flags captured in the War of the Rebellion by the Confederate forces and afterwards recovered by Government troops, and to the Confederate States the flags captured by the Union forces, all of which for many years have been packed in boxes and stored in the cellar and attic of the War Department.

I am of the opinion that the return of these flags in the manner thus contemplated is not authorized by existing law nor justified as an executive act.

I request, therefore, that no further steps be taken in the matter except to examine and inventory these flags and adopt proper measures for their preservation. Any direction as to the final disposition of them should originate with Congress.

Yours, truly,

GROVER CLEVELAND.

WAR DEPARTMENT, ADJUTANT-GENERAL'S OFFICE, _Washington, June --, 1887_.

Hon. ---- ----, _Governor of ----_.

SIR: Referring to the letter from this office dated June --, 1887, on the subject of the return to the respective States of the flags now in the custody of the War Department, I am instructed by the Secretary of War to inform you of the withdrawal of the offer made therein, as on a more careful consideration of the legal points involved in the proposed action the President of the United States is of the opinion that the return of these flags is not authorized by existing law nor justified as an executive act, and that any direction as to their final disposition should originate with Congress.

I have the honor to be, very respectfully, your obedient servant,

---- ----, _Adjutant-General_.

EXECUTIVE MANSION, _Washington, August 25, 1887_.

It appearing to me that the promoters of the International Military Encampment to be held in Chicago in October proximo, in commemoration of the fiftieth anniversary of the settlement of that city, have extended to the militia organizations of foreign countries, in behalf of the citizen soldiers of the State of Illinois, an invitation to take part in said encampment as the guests of the city of Chicago, and that representatives of the soldiery of certain foreign countries have accepted such invitation and are about to arrive in the United States:

I hereby direct the Secretary of the Treasury to instruct the collectors of customs at the several ports of entry that upon being satisfied that such visitors come as guests, in pursuance of the aforesaid invitation, they shall permit the entrance of such foreign soldiers into the United States, with their personal baggage, uniforms, arms, and equipments, without payment of customs duties thereon, and without other formality than such as may be necessary to insure the reexportation of said uniforms, baggage, arms, and equipments.

GROVER CLEVELAND.

DEPARTMENT OF STATE, _Washington, October 24, 1887_.

By direction of the President the undersigned is charged with the sad duty of announcing the death, on the 22d instant, at 4 o'clock p.m., at his residence, Chicago, Ill., of Elihu B. Washburne, an illustrious citizen, formerly Secretary of State of the United States.

Mr. Washburne rendered great service to the people of the United States in many and important capacities. As a Representative from the State of Illinois in the National Legislature, and subsequently as envoy extraordinary and minister plenipotentiary of the United States to France, his career was marked by eminent usefulness, in which abilities of a high order were applied with unsparing devotion and fidelity in the performance of the trusts of public power.

His private life was unstained, his public service unquestionably great, and his memory will be cherished with affection and respect by his grateful countrymen.

On the day of his funeral this Department will be closed for all public business, and be draped in mourning for ten days thereafter.

The diplomatic and consular officers of the United States in foreign countries will be directed to make proper expression of the public sorrow experienced by the death of Mr. Washburne.

T.F. BAYARD, _Secretary of State_.

THIRD ANNUAL MESSAGE.

WASHINGTON, _December 6, 1887_.

_To the Congress of the United States_:

You are confronted at the threshold of your legislative duties with a condition of the national finances which imperatively demands immediate and careful consideration.

The amount of money annually exacted, through the operation of present laws, from the industries and necessities of the people largely exceeds the sum necessary to meet the expenses of the Government.

When we consider that the theory of our institutions guarantees to every citizen the full enjoyment of all the fruits of his industry and enterprise, with only such deduction as may be his share toward the careful and economical maintenance of the Government which protects him, it is plain that the exaction of more than this is indefensible extortion and a culpable betrayal of American fairness and justice. This wrong inflicted upon those who bear the burden of national taxation, like other wrongs, multiplies a brood of evil consequences. The public Treasury, which should only exist as a conduit conveying the people's tribute to its legitimate objects of expenditure, becomes a hoarding place for money needlessly withdrawn from trade and the people's use, thus crippling our national energies, suspending our country's development, preventing investment in productive enterprise, threatening financial disturbance, and inviting schemes of public plunder.

This condition of our Treasury is not altogether new, and it has more than once of late been submitted to the people's representatives in the Congress, who alone can apply a remedy. And yet the situation still continues, with aggravated incidents, more than ever presaging financial convulsion and widespread disaster.

It will not do to neglect this situation because its dangers are not now palpably imminent and apparent. They exist none the less certainly, and await the unforeseen and unexpected occasion when suddenly they will be precipitated upon us.

On the 30th day of June, 1885, the excess of revenues over public expenditures, after complying with the annual requirement of the sinking-fund act, was $17,859,735.84; during the year ended June 30, 1886, such excess amounted to $49,405,545.20, and during the year ended June 30, 1887, it reached the sum of $55,567,849.54.

The annual contributions to the sinking fund during the three years above specified, amounting in the aggregate to $138,058,320.94, and deducted from the surplus as stated, were made by calling in for that purpose outstanding 3 per cent bonds of the Government. During the six months prior to June 30, 1887, the surplus revenue had grown so large by repeated accumulations, and it was feared the withdrawal of this great sum of money needed by the people would so affect the business of the country, that the sum of $79,864,100 of such surplus was applied to the payment of the principal and interest of the 3 per cent bonds still outstanding, and which were then payable at the option of the Government. The precarious condition of financial affairs among the people still needing relief, immediately after the 30th day of June, 1887, the remainder of the 3 per cent bonds then outstanding, amounting with principal and interest to the sum of $18,877,500, were called in and applied to the sinking-fund contribution for the current fiscal year. Notwithstanding these operations of the Treasury Department, representations of distress in business circles not only continued, but increased, and absolute peril seemed at hand. In these circumstances the contribution to the sinking fund for the current fiscal year was at once completed by the expenditure of $27,684,283.55 in the purchase of Government bonds not yet due bearing 4 and 4-1/2 per cent interest, the premium paid thereon averaging about 24 per cent for the former and 8 per cent for the latter. In addition to this, the interest accruing during the current year upon the outstanding bonded indebtedness of the Government was to some extent anticipated, and banks selected as depositories of public money were permitted to somewhat increase their deposits.

While the expedients thus employed to release to the people the money lying idle in the Treasury served to avert immediate danger, our surplus revenues have continued to accumulate, the excess for the present year amounting on the 1st day of December to $55,258,701.19, and estimated to reach the sum of $113,000,000 on the 30th of June next, at which date it is expected that this sum, added to prior accumulations, will swell the surplus in the Treasury to $140,000,000.

There seems to be no assurance that, with such a withdrawal from use of the people's circulating medium, our business community may not in the near future be subjected to the same distress which was quite lately produced from the same cause. And while the functions of our National Treasury should be few and simple, and while its best condition would be reached, I believe, by its entire disconnection with private business interests, yet when, by a perversion of its purposes, it idly holds money uselessly subtracted from the channels of trade, there seems to be reason for the claim that some legitimate means should be devised by the Government to restore in an emergency, without waste or extravagance, such money to its place among the people.

If such an emergency arises, there now exists no clear and undoubted executive power of relief. Heretofore the redemption of 3 per cent bonds, which were payable at the option of the Government, has afforded a means for the disbursement of the excess of our revenues; but these bonds have all been retired, and there are no bonds outstanding the payment of which we have a right to insist upon. The contribution to the sinking fund which furnishes the occasion for expenditure in the purchase of bonds has been already made for the current year, so that there is no outlet in that direction.

In the present state of legislation the only pretense of any existing executive power to restore at this time any part of our surplus revenues to the people by its expenditure consists in the supposition that the Secretary of the Treasury may enter the market and purchase the bonds of the Government not yet due, at a rate of premium to be agreed upon. The only provision of law from which such a power could be derived is found in an appropriation bill passed a number of years ago, and it is subject to the suspicion that it was intended as temporary and limited in its application, instead of conferring a continuing discretion and authority. No condition ought to exist which would justify the grant of power to a single official, upon his judgment of its necessity, to withhold from or release to the business of the people, in an unusual manner, money held in the Treasury, and thus affect at his will the financial situation of the country; and if it is deemed wise to lodge in the Secretary of the Treasury the authority in the present juncture to purchase bonds, it should be plainly vested, and provided, as far as possible, with such checks and limitations as will define this official's right and discretion and at the same time relieve him from undue responsibility.

In considering the question of purchasing bonds as a means of restoring to circulation the surplus money accumulating in the Treasury, it should be borne in mind that premiums must of course be paid upon such purchase, that there may be a large part of these bonds held as investments which can not be purchased at any price, and that combinations among holders who are willing to sell may unreasonably enhance the cost of such bonds to the Government.

It has been suggested that the present bonded debt might be refunded at a less rate of interest and the difference between the old and new security paid in cash, thus finding use for the surplus in the Treasury. The success of this plan, it is apparent, must depend upon the volition of the holders of the present bonds; and it is not entirely certain that the inducement which must be offered them would result in more financial benefit to the Government than the purchase of bonds, while the latter proposition would reduce the principal of the debt by actual payment instead of extending it.

The proposition to deposit the money held by the Government in banks throughout the country for use by the people is, it seems to me, exceedingly objectionable in principle, as establishing too close a relationship between the operations of the Government Treasury and the business of the country and too extensive a commingling of their money, thus fostering an unnatural reliance in private business upon public funds. If this scheme should be adopted, it should only be done as a temporary expedient to meet an urgent necessity. Legislative and executive effort should generally be in the opposite direction, and should have a tendency to divorce, as much and as fast as can be safely done, the Treasury Department from private enterprise.

Of course it is not expected that unnecessary and extravagant appropriations will be made for the purpose of avoiding the accumulation of an excess of revenue. Such expenditure, besides the demoralization of all just conceptions of public duty which it entails, stimulates a habit of reckless improvidence not in the least consistent with the mission of our people or the high and beneficent purposes of our Government.

I have deemed it my duty to thus bring to the knowledge of my countrymen, as well as to the attention of their representatives charged with the responsibility of legislative relief, the gravity of our financial situation. The failure of the Congress heretofore to provide against the dangers which it was quite evident the very nature of the difficulty must necessarily produce caused a condition of financial distress and apprehension since your last adjournment which taxed to the utmost all the authority and expedients within executive control; and these appear now to be exhausted. If disaster results from the continued inaction of Congress, the responsibility must rest where it belongs.

Though the situation thus far considered is fraught with danger which should be fully realized, and though it presents features of wrong to the people as well as peril to the country, it is but a result growing out of a perfectly palpable and apparent cause, constantly reproducing the same alarming circumstances--a congested National Treasury and a depleted monetary condition in the business of the country. It need hardly be stated that while the present situation demands a remedy, we can only be saved from a like predicament in the future by the removal of its cause.