attention to the subject of the possible increase of our foreign trade
and the methods for its development, not only with Europe, but with
other countries, and especially with the States and sovereignties of
the Western Hemisphere. Instructions from the Department of State
were issued to the various diplomatic and consular officers of the
Government, asking them to devote attention to the question of methods
by which trade between the respective countries of their official
residence and the United States could be most judiciously fostered.
In obedience to these instructions, examinations and reports upon this
subject have been made by many of these officers and transmitted to
the Department, and the same are submitted to the consideration of
Congress.

The annual report of the Secretary of the Treasury on the state of the
finances presents important questions for the action of Congress, upon
some of which I have already remarked.

The revenues of the Government during the fiscal year ending June 30,
1877, were $269,000,586.62; the total expenditures for the same period
were $238,660,008.93, leaving a surplus revenue of $30,340,577.69.
This has substantially supplied the requirements of the sinking fund
for that year. The estimated revenues of the current fiscal year are
$265,500,000, and the estimated expenditures for the same period are
$232,430,643.72. If these estimates prove to be correct, there will be
a surplus revenue of $33,069,356.28--an amount nearly sufficient for
the sinking fund for that year. The estimated revenues for the next
fiscal year are $269,250,000. It appears from the report that during
the last fiscal year the revenues of the Government, compared with the
previous year, have largely decreased. This decrease, amounting to the
sum of $18,481,452.54, was mainly in customs duties, caused partly