ent to return to their villages, and have already partly burned
down the latter, indicates that a real conciliation of the parties is
still far off.

And in a note of the 10th ultimo, inclosing a copy of that report for
the information of this Government, the German ambassador said:

The contents of the report awakened the Imperial Government's
apprehension that under existing circumstances the peace concluded
with the rebels will afford no assurance of the lasting restoration
of tranquillity in the islands.

The present Government has utterly failed to correct, if indeed it has
not aggravated, the very evils it was intended to prevent. It has not
stimulated our commerce with the islands. Our participation in its
establishment against the wishes of the natives was in plain defiance of
the conservative teachings and warnings of the wise and patriotic men
who laid the foundations of our free institutions, and I invite an
expression of the judgment of Congress on the propriety of steps being
taken by this Government looking to the withdrawal from its engagements
with the other powers on some reasonable terms not prejudicial to any of
our existing rights.

The Secretary of the Treasury reports that the receipts of the
Government from all sources of revenue during the fiscal year ending
June 30, 1894, amounted to $372,802,498.29 and its expenditures to
$442,605,758.87, leaving a deficit of $69,803,260.58. There was a
decrease of $15,952,674.66 in the ordinary expense of the Government as
compared with the fiscal year 1893.

There was collected from customs $131,818,530.62 and from internal
revenue $147,168,449.70. The balance of the income for the year,
amounting to $93,815,517.97, was derived from the sales of lands and
other sources.

The value of our total dutiable imports amounted to $275,199,086, being
$146,657,625 less than during the preceding year, and the importations
free of duty amounted to $379,795,536, being $64,748,675 less than
during the preceding year. The receipts from customs were $73,536,486.11
less and from internal revenue $13,836,539.97 less than in 1893.

The total tax collected from distilled spirits was $85,259,250.25, on
manufactured tobacco $28,617,898.62, and on fermented liquors
$31,414,788.04.

Our exports of merchandise, domestic and foreign, amounted during the
year to $892,140,572, being an increase over the preceding year of
$44,495,378.

The total amount of gold