development of our trade
with the island of Cuba invest the commercial relations of the United
States and Spain with a peculiar importance. It is not doubted that a
special arrangement in regard to commerce, based upon the reciprocity
provision of the recent tariff act, would operate most beneficially for
both Governments. This subject is now receiving attention.

The restoration of the remains of John Ericsson to Sweden afforded a
gratifying occasion to honor the memory of the great inventor, to whose
genius our country owes so much, and to bear witness to the unbroken
friendship which has existed between the land which bore him and our
own, which claimed him as a citizen.

On the 2d of September last the commission appointed to revise the
proceedings of the commission under the claims convention between the
United States and Venezuela of 1866 brought its labors to a close
within the period fixed for that purpose. The proceedings of the late
commission were characterized by a spirit of impartiality and a high
sense of justice, and an incident which was for many years the subject
of discussion between the two Governments has been disposed of in
a manner alike honorable and satisfactory to both parties. For the
settlement of the claim of the Venezuela Steam Transportation Company,
which was the subject of a joint resolution adopted at the last session
of Congress, negotiations are still in progress, and their early
conclusion is anticipated.

The legislation of the past few years has evinced on the part of
Congress a growing realization of the importance of the consular service
in fostering our commercial relations abroad and in protecting the
domestic revenues. As the scope of operations expands increased
provision must be made to keep up the essential standard of efficiency.
The necessity of some adequate measure of supervision and inspection
has been so often presented that I need only commend the subject to
your attention.

The revenues of the Government from all sources for the fiscal year
ending June 30, 1890, were $463,963,080.55 and the total expenditures
for the same period were $358,618,584.52. The postal receipts have not
heretofore been included in the statement of these aggregates, and for
the purpose of comparison the sum of $60,882,097.92 should be deducted
from both sides of the account. The surplus for the year, including the
amount applied to the sinking fund, was $105,344,496.03. The receipts
for