ld not make banking a monopoly by limiting the amount
of redeemable paper currency that shall be authorized. Such importance
do I attach to this subject, and so earnestly do I commend it to your
attention, that I give it prominence by introducing it at the beginning
of this message.

During the past year nothing has occurred to disturb the general
friendly and cordial relations of the United States with other powers.

The correspondence submitted herewith between this Government and its
diplomatic representatives, as also with the representatives of other
countries, shows a satisfactory condition of all questions between the
United States and the most of those countries, and with few exceptions,
to which reference is hereafter made, the absence of any points of
difference to be adjusted.

The notice directed by the resolution of Congress of June 17, 1874,
to be given to terminate the convention of July 17, 1858, between
the United States and Belgium has been given, and the treaty will
accordingly terminate on the 1st day of July, 1875. This convention
secured to certain Belgian vessels entering the ports of the United
States exceptional privileges which are not accorded to our own vessels.
Other features of the convention have proved satisfactory, and have
tended to the cultivation of mutually beneficial commercial intercourse
and friendly relations between the two countries. I hope that
negotiations which have been invited will result in the celebration
of another treaty which may tend to the interests of both countries.

Our relations with China continue to be friendly. During the past year
the fear of hostilities between China and Japan, growing out of the
landing of an armed force upon the island of Formosa by the latter,
has occasioned uneasiness. It is earnestly hoped, however, that the
difficulties arising from this cause will be adjusted, and that the
advance of civilization in these Empires may not be retarded by a state
of war. In consequence of the part taken by certain citizens of the
United States in this expedition, our representatives in those countries
have been instructed to impress upon the Governments of China and Japan
the firm intention of this country to maintain strict neutrality in the
event of hostilities, and to carefully prevent any infraction of law on
the part of our citizens.

In connection with this subject I call the attention of Congress to
a generally conceded fact--that the great