n had been made, to close their respective legations and
consulates and cease from the performance of their duties; and in like
manner steps were immediately taken to substitute charges d'affaires
for ministers resident in Portugal, Denmark, Greece, Switzerland, and
Paraguay.

While thoroughly impressed with the wisdom of sound economy in the
foreign service, as in other branches of the Government, I can not
escape the conclusion that in some instances the withholding of
appropriations will prove an expensive economy, and that the small
retrenchment secured by a change of grade in certain diplomatic posts is
not an adequate consideration for the loss of influence and importance
which will attend our foreign representatives under this reduction. I am
of the opinion that a reexamination of the subject will cause a change
in some instances in the conclusions reached on these subjects at the
last session of Congress.

The Court of Commissioners of Alabama Claims, whose functions were
continued by an act of the last session of Congress until the 1st day
of January, 1877, has carried on its labors with diligence and general
satisfaction. By a report from the clerk of the court, transmitted
herewith, bearing date November 14, 1876, it appears that within the
time now allowed by law the court will have disposed of all the claims
presented for adjudication. This report also contains a statement of the
general results of the labors of the court to the date thereof. It is a
cause of satisfaction that the method adopted for the satisfaction of
the classes of claims submitted to the court, which are of long standing
and justly entitled to early consideration, should have proved
successful and acceptable.

It is with satisfaction that I am enabled to state that the work of the
joint commission for determining the boundary line between the United
States and British possessions from the northwest angle of the Lake of
the Woods to the Rocky Mountains, commenced in 1872, has been completed.
The final agreements of the commissioners, with the maps, have been duly
signed, and the work of the commission is complete.

The fixing of the boundary upon the Pacific coast by the protocol of
March 10, 1873, pursuant to the award of the Emperor of Germany by
Article XXXIV of the treaty of Washington, with the termination of the
work of this commission, adjusts and fixes the entire boundary between
the United States and the British possessions,