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
For miscellaneous expenditures, including public
buildings, light-houses, and collecting the revenue 43,939,710.00
For expenditures on account of the District of Columbia 3,407,049.62
For interest on the public debt 54,578,378.48
For the sinking fund