he rational and peaceable settlement of
international quarrels by honorable resort to arbitration.

Since the passage of the act of March 3, 1893, authorizing the President
to raise the grade of our envoys to correspond with the rank in which
foreign countries accredit their agents here, Great Britain, France,
Italy, and Germany have conferred upon their representatives at this
capital the title of ambassador, and I have responded by accrediting the
agents of the United States in those countries with the same title. A
like elevation of mission is announced by Russia, and when made will be
similarly met. This step fittingly comports with the position the United
States hold in the family of nations.

During my former Administration I took occasion to recommend a recast of
the laws relating to the consular service, in order that it might become
a more efficient agency in the promotion of the interests it was
intended to subserve. The duties and powers of consuls have been
expanded with the growing requirements of our foreign trade. Discharging
important duties affecting our commerce and American citizens abroad,
and in certain countries exercising judicial functions, these officers
should be men of character, intelligence, and ability.

Upon proof that the legislation of Denmark secures copyright to American
citizens on equal footing with its own, the privileges of our copyright
laws have been extended by proclamation to subjects of that country.[2]

The Secretary of the Treasury reports that the receipts of the
Government from all sources during the fiscal year ended June 30, 1893,
amounted to $461,716,561.94 and its expenditures to $459,374,674.29.
There was collected from customs $205,355,016.73 and from internal
revenue $161,027,623.93. Our dutiable imports amounted to $421,856,711,
an increase of $52,453,907 over the preceding year, and importations
free of duty amounted to $444,544,211, a decrease from the preceding
year of $13,455,447. Internal-revenue receipts exceeded those of the
preceding year by $7,147,445.32. The total tax collected on distilled
spirits was $94,720,260.55, on manufactured tobacco $31,889,711.74, and
on fermented liquors $32,548,983.07. We exported merchandise during the
year amounting to $847,665,194, a decrease of $182,612,954 from the
preceding year. The amount of gold exported was larger than any previous
year in the history of the Government, amounting to $108,680,844, and
exceeding the