the salaries of the heads of bureaus. I have heretofore recommended the
abolition of the franking privilege, and see no reason now for changing
my views on that subject. It not having been favorably regarded by
Congress, however, I now suggest a modification of that privilege to
correct its glaring and costly abuses. I would recommend also the
appointment of a committee or commission to take into consideration the
best method (equitable to private corporations who have invested their
time and capital in the establishment of telegraph lines) of acquiring
the title to all telegraph lines now in operation, and of connecting
this service with the postal service of the nation. It is not probable
that this subject could receive the proper consideration during the
limits of a short session of Congress, but it may be initiated, so that
future action may be fair to the Government and to private parties
concerned.

There are but three lines of ocean steamers--namely, the Pacific
Mail Steamship Company, between San Francisco, China, and Japan, with
provision made for semimonthly service after October 1, 1873; the United
States and Brazil line, monthly; and the California, New Zealand, and
Australian line, monthly--plying between the United States and foreign
ports, and owned and operated under our flag. I earnestly recommend that
such liberal contracts for carrying the mails be authorized with these
lines as will insure their continuance.

If the expediency of extending the aid of Government to lines of
steamers which hitherto have not received it should be deemed worthy of
the consideration of Congress, political and commercial objects make it
advisable to bestow such aid on a line under our flag between Panama and
the western South American ports. By this means much trade now diverted
to other countries might be brought to us, to the mutual advantage of
this country and those lying in that quarter of the continent of
America.

The report of the Secretary of the Treasury will show an alarming
falling off in our carrying trade for the last ten or twelve years, and
even for the past year. I do not believe that public treasure can be
better expended in the interest of the whole people than in trying to
recover this trade. An expenditure of $5,000,000 per annum for the next
five years, if it would restore to us our proportion of the carrying
trade of the world, would be profitably expended.

The price of labor in Europe has so m