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720 of fraud and illegal practices at the polls. In the president's annual message to congress, December, 1869, he recommended the passage of an act authorizing the funding of the public debt at a lower rate of interest. This was followed by the passing of an act, approved 14 July, 1870, which authorized the secretary of the treasury to issue bonds to the amount of $200,000,000, bearing interest at the rate of 5 per cent., $300,000,000 at the rate of 4½ per cent., and $1,000,000,000 at the rate of 4 per cent. Under this act, and subsequent amendments thereto, the national debt has been refunded from time to time, until the average rate of actual interest does not exceed 3½ per cent.

In 1870 President Grant sent special messages to congress urging upon that body the necessity of building up our merchant marine, and the adopting of methods for increasing our foreign commerce, and regarding our relations with Spain, which had become strained in consequence of the action of Spanish officials in Cuba. In August of this year, soon after the beginning of the war between France and Germany, he issued a proclamation of neutrality as to both of those nations, and defined the duties of Americans toward the belligerents. He directed the U. S. minister to France, Elihu B. Washburne, to remain at his post in Paris, and extend the protection of the American flag to peoples of all nationalities who were without the protection of their own flag &mdash; an act that saved much suffering and loss to individuals.

In his annual message in 1870, the president took strong ground in favor of civil service reform, saying: &ldquo;I would have it govern, not the tenure, but the manner of making all appointments,&rdquo; and &ldquo;The present system does not secure the best men, and not even fit men, for public place.&rdquo; This subject gave rise to a spirited controversy in congress, many declaring the principle to be wholly un-American, and calculated to build up a favored class, who would be in great measure independent of their executive chiefs, etc. But on 3 March, 1871, an act was passed authorizing the president to appoint a civil service commission, and to prescribe rules and regulations governing the appointments of civil officers. He appointed seven gentlemen on this commission, selecting those who had been most prominent in advocating the measure, and transmitted their report to congress, with a special message urging favorable action. The plan recommended, which provided for competitive examinations, was approved, and was put into operation 1 Jan., 1872. An appropriation was procured for the expenses of the commission and the carrying out of the plan, but congress gave little countenance to the measure. Up to 1874 the president continued to urge that body to give legislative sanction to the rules and methods proposed, and declared that it was impossible to maintain the system without the &ldquo;positive support of congress.&rdquo; He finally notified congress that if it

without action he would regard it as a disapproval of the system, and would abandon it; but he continued it until its expenses were no longer provided for. The agitation of the question had been productive of much good. The seeds thus sown had taken deep root in the minds of the people, and bore good fruit in after years. In March, 1871, the disorders in the southern states, growing out of conflicts between the whites and the blacks, had assumed such proportions that the president sent a special message to congress requesting &ldquo;such legislation as shall effectually secure life, liberty, and property, and the enforcement of law in all parts of the United States.&rdquo; On 20 April congress passed an act that authorized the president to suspend, under certain defined circumstances, the writ of habeas corpus in any district, and to use the army and navy in suppressing insurrections. He issued a proclamation, 4 May, ordering all unlawful armed bands to disperse, and, after expressing his reluctance to use the extraordinary power conferred upon him, said he would &ldquo;not hesitate to exhaust the power thus vested in the executive, whenever and wherever it shall become necessary to do so for the purpose of securing to all citizens of the United States the peaceful enjoyment of the rights guaranteed to them by the constitution and the laws.&rdquo; As this did not produce the desired effect, he issued a proclamation of warning, 12 Oct., and on the 17th suspended the writ of habeas corpus in parts of North and South Carolina. He followed this by vigorous prosecutions, which resulted in sending a number of prominent offenders to prison, and the outrages soon ceased. The most important measure of foreign policy during President Grant's administration was the treaty with Great Britain of 8 May, 1871, known as the treaty of Washington. Early in his administration the president had begun negotiations looking to the settlement of the claims made by the United States against Great Britain, arising from the depredations upon American vessels and commerce by Confederate cruisers that had been fitted out or obtained supplies in British ports, and the questions growing out of the Canadian fishery disputes and the location of our northern boundary-line at its junction with the Pacific ocean, which left the jurisdiction of the island of San Juan in controversy. Neither of the two last-mentioned questions had been settled by the treaty of peace of 1783, or any subsequent treaties. The fishery question was referred to arbitration by three commissioners, one to be chosen by the United States, one by Great Britain, and the third by the other two, provided they should make a choice within a stated time, otherwise the selection to be made by the Emperor of Austria. The two commissioners having failed to agree, the third was named by the Austrian emperor. The award was unsatisfactory to the United States, the decision of the commission was severely criticised, and the dispute has from time to time been reopened to the detriment of both countries. The San Juan question was referred to the emperor of Germany as arbitrator, with sole power. His award fully sustained the claim of the United States. A high joint commission had assembled at Washington, composed of American and English statesmen, which formulated the treaty of Washington, and by its terms the claims against Great Britain growing out of the operations of the Confederate cruisers, commonly known as the &ldquo;Alabama claims,&rdquo; were referred to a court of arbitration, which held its session at Geneva, Switzerland. In September, 1872, it awarded the United States the sum of