under consideration the advisability of
abolishing the discrimination made by the tariff laws in favor of the
works of American artists. The odium of the policy which subjects to
a high rate of duty the paintings of foreign artists and exempts the
productions of American artists residing abroad, and who receive
gratuitously advantages and instruction, is visited upon our citizens
engaged in art culture in Europe, and has caused them with practical
unanimity to favor the abolition of such an ungracious distinction; and
in their interest, and for other obvious reasons, I strongly recommend
it.

The report of the Secretary of the Treasury fully exhibits the condition
of the public finances and of the several branches of the Government
connected with his Department. The suggestions of the Secretary relating
to the practical operations of this important Department, and his
recommendations in the direction of simplification and economy,
particularly in the work of collecting customs duties, are especially
urged upon the attention of Congress.

The ordinary receipts from all sources for the fiscal year ended June
30, 1885, were $322,690,706.38. Of this sum $181,471,939.34 was received
from customs and $112,498,725.54 from internal revenue. The total
receipts, as given above, were $24,829,163.54 less than those for the
year ended June 30, 1884. This diminution embraces a falling off of
$13,595,550.42 in the receipts from customs and $9,687,346.97 in the
receipts from internal revenue.

The total ordinary expenditures of the Government for the fiscal year
were $260,226,935.50, leaving a surplus in the Treasury at the close of
the year of $63,463,771.27. This is $40,929,854.32 less than the surplus
reported at the close of the previous year.

The expenditures are classified as follows:

For civil expenses $23,826,942.11
For foreign intercourse 5,439,609.11
For Indians 6,552,494.63
For pensions 56,102,267.49
For the military, including river and harbor 42,670,578.47
improvements and arsenals
For the Navy, including vessels, machinery, and 16,021,079.69
improvements of navy-yards
For interest on the public debt 51,386,256.47
For the District of Columbia 3,499,650.95